The new Insurance Brokers Code of Practice could result in an “influx” of alleged breaches as brokers are called on to report each other for the first time.

National Insurance Brokers Association (NIBA) CEO Phil Kewin says there has previously been frustration among brokers that they have nowhere to go if they see something they believe requires action, with ASIC having limited capacity to act.

Under the new requirements, implemented from November 1, brokers have an obligation to report other brokers who breach the code.

“Brokers can feel they have an avenue to go down, and an obligation, if they see something wrong,” Mr Kewin told insuranceNEWS.com.au.

Some brokers have expressed concern that reports may be made maliciously. They say there can be a tendency from some within the industry to “bad-mouth” a new client’s former broker to make themselves look good.

“If we get a lot of irrelevant or commercially driven reports we’ll address that,” Mr Kewin said.

“The intent is not to catch people out but to make us collectively accountable.”