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ASIC slam insurance brokers

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Insurance Business | 03 May 2012, 12:06 AM Agree 0
Government body hammers brokers for their business practices after a recent surveillance project. It also threatens to publically name and shame in the future, so is your brokerage compliant?
  • Paul Donnelly | 03 May 2012, 04:17 PM Agree 0
    Can ASIC be viewed as independent if they are funded by insurance brokers license fees?
  • Paul Murphy | 03 May 2012, 04:53 PM Agree 0
    ASIC are correct that Insurance Brokers cannot describe themselves as independent if they receive commission from insurers.The juxtaposition of an article by Zurich which says brokers get better results for claimants of course tells the broader picture. The scandal is of course insurers are issuing commercial insurance policies to clients and not giving advice.Sadly there is no expertise at ASIC to understand the true role insurance brokers play as client advocates.
  • Rick Post | 03 May 2012, 07:29 PM Agree 0
    I suspect poor compliance procedures are behind this coupled with ignorance of one of the basic requirements of ASIC. The brokers have nobody to blame but themselves. It would be interesting to know how many brokers were reviewed, & of these how many were AR's were included.
  • David Mansley | 04 May 2012, 08:10 AM Agree 0
    I agree with the principals that ASIC are enforcing. I just wish they would turn away from the Insurance industry for a while and turn towards the banking sector.
  • A.R. | 04 May 2012, 12:10 PM Agree 0
    Leave the AR's alone Rick. We're not all tarnished with the same brush. We display a lot more independance than these bigger broking firms with their "over-riders", "profit shares", "training and development advance payments" (from insurers), "advance premium funding commissions" etc. I think our industry seems unfairly singled out all the time. Why doesn't these regulatory authorities try enforcing the same strict compliance on "tradesman", "telco's", "unions", even the banks. Insurance Brokers are one of the very few professions or industries where we actually act for our clients!
  • Kay Jackson | 04 May 2012, 01:21 PM Agree 0
    I think ASIC should be focusing more on the Advice given - For example if a Broker offers a Full Flood Accidental Damage Home Policy to a client and their Bank offers an inferiror Defined Events Policy without Flood - should they not be telling the client this important information - I would like ASIC to go through FOS records and see how many FOS Complaints are from Brokers and what % are direct or from non-professional insurance intermediaries such as Supermarkets!
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