The Insurance Brokers Code Compliance Committee has recommended improvements around transparency, clarity and breach reporting in its submission to the ongoing code review.

The deadline for feedback on a consultation document has now passed, and a draft report is expected to be published late next month.

As insuranceNEWS.com.au reported last week, the compliance committee has called for the next version of the National Insurance Brokers Association code to give more protection to small businesses.

It wants remuneration disclosure requirements to extend to small business clients in addition to retail clients.

The committee also calls for clearer time frames around claim handling obligations, and a longer run-up to renewals.

For example, clause 7.1 says brokers will “keep clients informed in a timely manner regarding the progress of their claim”. But the committee wants updates every 20 business days.

It says a commitment to contact clients about renewals at least 14 days before cover expiry should be changed to “at least 30 business days” prior. 

“These time frames align expectations with obligations in the general insurance code, support informed decisions and promote good client outcomes,” the committee says.

“Strengthening these provisions will provide clients with greater certainty, improve trust in brokers and reduce the risk of lapses in coverage.”

The committee also wants the code to strengthen breach and complaint identification and reporting.

Brokers should report all breaches, it says, including those by their representatives, and code training should be enhanced.

The committee wants “named reporting” on breaches to bring greater transparency and align with the banking code and recommendations on the general insurance code.

“Named reporting, when framed appropriately, can highlight outliers, help firms benchmark their reporting against peers, and encourage better compliance practices.”

It calls for enough funding to enable the committee to carry out its own investigations and reviews, arguing that “self-reported data alone is insufficient for effective compliance monitoring”.

The committee says it would support extending the code review period from three years to five only if the code was approved by the corporate regulator.

The full submission is available here.