Brokers take their code compliance duties seriously, the profession’s peak body says after the number of reported breaches increased 19% last year.

National Insurance Brokers Association CEO Richard Klipin says the code monitor’s 2024 report “provides a clear picture of how the code is operating in practice, and where improvements can be made.

“Importantly, it highlights the seriousness with which brokers take their compliance responsibilities, and their commitment to putting their clients’ interests ahead of their own.”

NIBA says the Insurance Brokers Code Compliance Committee annual data report “will directly inform” the code revamp led by independent reviewer Phil Khoury.

“These findings will help ensure the code continues to meet the evolving needs of clients, remains practical and relevant for brokers, and upholds the high standards expected of the profession.”

IBCCC chair Oscar Shub says the jump in breaches “reflects improved breach detection and a more proactive reporting culture. These results suggest many brokers are taking their compliance responsibilities more seriously, and that’s a step in the right direction.”

However, a rise in remuneration disclosure breaches to 334 from 42 in 2023 is an area of concern for the code monitor. The 2024 report covers the first 12-month period in which brokers had to report income arrangements, including commissions, to retail clients.

The remuneration disclosure obligation took effect in November 2023 but there are exemptions in part 6.4 of the code, which states “arrangements for the provision of excluded services are commercial in nature, and the obligations relating to disclosing what [brokers] earn do not apply to those arrangements”.

Mr Shub told insuranceNEWS.com.au: “We have been vocal about the importance of remuneration disclosure for some time and will continue to focus on it. We already have work under way in this area. We also encourage the current code review to consider the issue carefully and would like to see disclosure extend to cover all retail clients, whatever their insurance needs.” 

NIBA says it will continue working with members to support understanding and implementation of the code’s remuneration disclosure obligations.