FoFA reforms good for broker image

FoFA reforms good for broker image | Insurance Business

FoFA reforms good for broker image

A broker has suggested that government plans to prohibit intermediaries from moving clients to a new insurer or policy could be an opportunity to demonstrate that the sector already works in the best interests of the client.

News that, from 1 July, government will implement a statutory Best Interest Duty has rattled brokers, with many branding the move “rubbish” and stating they already prioritise clients’ needs.

But some brokers believe the reforms are platform for intermediaries to show the authorities they already deliver a gold standard service.

 “We are already operating within a certain set of ethical guidelines that sees clients moved across to new insurers because there is a benefit for the client to do so,” said Helena Blum, principal at Queensland-based Big Tree Insurance Group. “The regulatory framework within which we work has some stringent compliance requirements, and we should already be working at the standard proposed by the best interest duty.”

She added that those brokers who need to enhance their service level offering, should see the reforms as an opportunity to do so.

“Like any reform, it’s a chance for organisations within the industry to reassess how business gets done, and advice providers will need to consider whether refinements need to be made to their existing advice model, processes and current compliance arrangements.”

Ultimately, she added, the outcome of the process will mean “professionals within our industry will continue to deliver services from an industry best practice benchmark, and this has got be a good thing for consumers”.