Multiple insurance brokers in Australia claimed they received no complaints and reported no breaches of the industry Code of Practice in 2021, according to the Insurance Brokers Code Compliance Committee's (IBCCC) latest annual report.
The committee found that compliance with the Insurance Brokers Code of Practice is satisfactory. However, it raised concerns about the possible lack of self-reporting.
“We remain concerned that subscribers are not recognising or reporting all their complaints and potential breaches,” said IBCCC chair Oscar Shub. “Reporting potential breaches and complaints is crucial for improvement. It allows a broker to see what went wrong and where they need to improve. However, it appears we still have too many who fail to recognise its importance.
“It may be a matter of training or better procedures that can help. Better reporting begins with having staff be able to confidently recognise complaints and breaches and having the right procedures in place to facilitate it.”
The IBCCC said the new version of the code, to take effect on November 01, aims to improve reporting across the board. The amendments resulted from the committee's focus on cultural change, encouraging brokers to develop a culture embracing reporting in pursuit of better outcomes.
“The new code has more specific provisions that will ensure brokers have a very clear understanding of their obligations,” Shub said. “We have already seen some great improvements from brokers preparing for the new code, and we encourage all brokers to make sure they have the right processes in place by the time the new code comes into effect.
“When a company culture values transparency and embraces the benefits that come from self-reporting complaints and breaches, we start to see real, meaningful improvements. Ultimately, this leads to better services and products for clients.”