With January already upon us, this is an important moment to pause and reflect on the year that just came to an end. Itʼs been seven months since I stepped into the shoes of the NIBA CEO and the ongoing challenges in the Australian insurance landscape mean that the work NIBA has been doing throughout the year to ensure the voice of brokers is heard loud and clear is more important than ever.
Rising premiums, driven by increased natural disaster claims and escalating reinsurance costs, have left Australian families, businesses, and communities struggling to secure adequate cover. The growing risk of underinsurance is creating a divide between those protected and those exposed. As climate risks intensify and cost of living pressures mount, the industry must navigate these complexities by fostering innovation and finding sustainable ways to ensure insurance remains accessible and affordable for all Australians.
As the peak representative body for the insurance broking profession, NIBA is committed to ensuring insurance accessibility and affordability and that insurance brokers are well-positioned for the future as consumer expectations evolve.
Guided by our core pillars of Representation, Professionalism, and Community, NIBA aims to champion the interests of brokers, elevate industry standards, and foster a connected network of professionals across Australia.
NIBA President Gary Okely and I were in Canberra engaging with politicians across the house. These included the Assistant Treasurer and the Minister for Financial Services, the Hon Stephen Jones MP and chair of the Standing Committee on Economics, Dr Daniel Mulino MP.
NIBA thanks Minister Jones for his insights and welcomes his deep understanding of the sector, including his comments at the NIBA Convention underscoring the value that insurance brokers provide to the Australian economic landscape.
NIBA also welcomes the final report into insurersʼ responses to the 2022 floods, called ‘Flood failure to future fairnessʼ, which has 86 recommendations aimed at improving outcomes for Australians who may be impacted by extreme weather events in the future.
In addition to our federal focus, NIBA has also been visiting a number of senior NSW politicians to focus on the key issues around the strata inquiry as well as icare. We will continue to engage politically across the country at a federal and state level to take the voice of NIBA to key political stakeholders.
NIBA and its divisional committees have continued to work closely regarding workers compensation with our key stakeholders such as the Insurance Council of Australia (ICA), icare and WorkCover WA to help simplify the system and ensure long term sustainability of the scheme.
Itʼs important that Australians have a high level of trust in the value that we deliver as a sector. NIBA is well-positioned to help shape and guide insurance brokers, so they remain committed to professionalism, transparency, and ethical behaviour and keep delivering better outcomes for consumers as per their obligations under the Insurance Brokers Code of Practice (the Code).
Recent data from the Insurance Brokers Code Compliance Committee (IBCCC) highlights that there has been a 26% increase in self-reported breaches since 2020. NIBA is encouraged to see that the number of brokers reporting breaches continues to increase. This reflects a growing commitment around transparency and accountability and recognition of the importance of self-identification and reporting.
Australian Financial Complaints Authority (AFCA) CEO and Chief Ombudsman David Locke noted in his recent address at the NIBA Convention that out of more than 104,000 complaints referred to AFCA, only 584 were about insurance brokers. As a profession, we should be proud of that low number, but now is not the time to sit back on our laurels.
As we look to the coming months, the consultation process for our Code review has already begun. NIBA is pleased to announce the appointment of Phil Khoury from Cameron Ralph Khoury as the independent reviewer for the review of the Code. This reaffirms NIBA's commitment to ensuring a best practice Code review process that reflects the evolving needs of consumers and the insurance broking profession.
NIBA has been working tirelessly to advocate for insurance broking as a profession of choice. To help achieve this, we launched ‘Insure Your Futureʼ, a gateway for prospective talent to explore the endless possibilities in the world of insurance broking.
NIBA represents a vibrant and engaged community of insurance brokers that showcase the highest standards of professionalism day in and day out to get the best outcomes for their clients. Most recently, the broking profession and the wider insurance industry came together in Adelaide for the 2024 NIBA Convention, with key headline addresses by Minister Jones and Shane Fitzsimmons AO AFSM.
As 2025 begins, Iʼd like to wish everyone a very happy festive season on behalf of the NIBA team, the board, and the various committees. Insurance brokers play a vital role as trusted partners in our economic landscape. NIBA looks forward to ensuring they remain well-positioned to serve Australian families, communities, and businesses to thrive in the coming year and beyond.