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FAQs about the NIBA 2022 Insurance Broker Code of Practice
Advisr is excited to see the release of the 2022 NIBA Insurance Broker Code of Practice (the Code) which sets a new bar for Insurance Brokers in standards of service.
Insurance Brokers are critical to the smooth functioning and economic productivity of our businesses and communities. In line with the pivotal role of insurance brokers, our insurance broking community needs to hold to a high standard of professional service, for the well-being of our societies.
The new Code of Practice aims to "enhance and promote the professionalism and standing of NIBA members, and further increase community confidence in insurance brokers."
It is based on 3 Guiding Principles:
- Professional Commitment
- Ethical Behaviour
- Transparency and Accountability
Building trust and community confidence is a timely endeavour following the Royal Commission into Financial Services. The issues and lack of trust that the Royal Commission revealed in the financial services sector, including insurance, needs to be taken seriously. We congratulate NIBA on how the new Code reflects their aim to increase the community confidence that has previously eroded.
What is the NIBA Insurance Broker Code of Practice?
The Code is a set of obligations and standards of conduct, applicable to members of NIBA and also to non-members who elect to subscribe to the Code.
It is written for clients/potential clients, insurance brokers and all parties involved in performing insurance broking services, to provide a clear standard of conduct that is understood by all parties.
The Code encapsulates a committment to customer service throughout the customer journey, including how decisions are made, the behaviour of brokers and how they interact with their clients.
What is in the 2022 Insurance Broker Code of Practice?
The 2022 Code covers areas such as:
- Engaging a Broker
- Guidelines for Performing Services
- Disclosing Remuneration
- Guidelines for Claims and Renewals
- Responsibility for the behaviour of employees, agents and representatives
- What to do when things go wrong
- Supporting Vulnerable Clients
A copy of the Code may be provided to clients as a helpful guide, with all topics being relevant to both brokers and their clients.
Cyber Liability Insurance is designed to help protect you from claims and support your profitability in the event of a cyber breach or attack.
Public Liability insurance is there to provide protection if someone makes a claim against the insured, the business or its employees.
A business insurance pack can provide cover for your business premises and contents, against loss, damage, theft or financial loss from an insured interruption to the business.
A copy of the Code may be provided to clients as a helpful guide, with all topics being relevant to both brokers and their clients.
Timeline for the NIBA 2022 Insurance Broker Code of Practice
- 1st March 2022 - Code Released
- 1st April 2022 - Implementation Guides made available
- 27th April & 5th May 2022 - Subscriber Webinars
- 1st November 2022 - Code takes effect
All activities and dealings prior to 1st November 2022 are managed under the 2014 Code.
Is the Code of Practice a Legal Obligation?
NIBA has advised that the Code is designed to act as a safeguard for clients beyond or outside the requirements set out in law and in no part does the Code limit or seek to limit a client's legal rights. In fact, parts of the Code set standards that exceed the legal obligations of the Insurance Broker, driving the Broker to higher standards of service, rather than minimum standards of service.
Insurance Brokers are not required by law to subscribe to the Code of Practice, but can choose to subscribe. If they are a member of NIBA then their membership obligates them to subscribe to the Code of Practice.
I am a 2014 Code Subscriber, will I automatically be subscribed to the 2022 Code?
The previous Code was released in 2014. NIBA Members will be bound by the new Code as a part of their ongoing membership. However, Subscribers to the 2014 Code who are not members of NIBA will NOT automatically be subscribed to the new 2022 Code. Existing non-member Code Subscribers must formally adopt the new Code.
Who enforces the Insurance Broker Code of Practice?
The Insurance Brokers Code Compliance Committee (IBCCC) is tasked with independently monitoring and enforcing the Code. Consumers are able to report possible breaches of the Code to the Committee for investigation and review. The Committee is also responsible for reporting on Code compliance and collaborating with other stakeholders to improve Code standards and promote adherence to the Code.
The Committee can recommend corrective action, however, if a particular outcome such as an apology or compensation is being sought, this should be pursued via the Australian Financial Complaints Authority.
Advisr's Commitment
Advisr aims to help brokers subscribe to the 3 Guiding Principles of the Code.
- Professional Commitment
- Ethical Behaviour
- Transparency and Accountability
Through your Advisr profile, you can contribute to the professionalism, accountability and transparency of the insurance broking industry. How?
- include your validated regulatory information on your profile
- share educational content to help upskill customers in their knowledge
- provide reviews to help customers understand how you deal with your customers
Full Copy of the 2022 NIBA Code of Practice
For a full copy of the Code of Practice head to the NIBA website.
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.
All information above has been provided by the author.
All information above has been provided by the author.
Annemarie Jamieson | ADVISR
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