The National Insurance Brokers Association (NIBA) has finally launched the new Insurance Brokers Code of Practice, which will take effect on November 01, 2022.
Under the new code of practice, insurance brokers must report other brokers who breach the code, and identify and support vulnerable clients. The code also includes a ban on preferential remuneration and increased disclosure requirements.
“On behalf of the NIBA board, I am proud to deliver this new code to our members today,” said NIBA president Dianne Phelan.
Over the coming months, NIBA will provide support material to help brokers implement the new obligations into their business processes by November.
“Today is the first phase of our implementation program. We will be providing brokers with guidance and templates on how to implement the new code requirements into their business processes,” said NIBA CEO Philip Kewin.
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Phelan said NIBA had finalised the new Insurance Brokers Code of Practice following an extensive review and consultation process, undertaken by an independent reviewer.
“The NIBA board and I decided a new Insurance Brokers Code of Practice should be built from the ground up, one which exceeds the law and holds members to a higher standard. I am very pleased to say that we have achieved this. But ultimately, this is not our code; it is the brokers’ code,” she said.
In a previous statement, Kewin explained that the code’s first draft was completely revised following 10 submissions from stakeholders, including six from NIBA members, in 2020. Since then, it has undergone several revisions.
“It’s about setting a higher standard and ensuring that when you enter into an agreement, the client understands what they’re paying for the service and that that’s normal business operations,” he said.
The Insurance Brokers Code of Practice is independently administered by the Australian Financial Complaints Authority (AFCA).
