A review of brokers’ policy renewal processes, with a focus on the obligation to give clients at least 14 days’ notice, has begun after a sharp rise in code breaches.

The Insurance Brokers Code Compliance Committee says it is contacting a select group of brokers to complete a short questionnaire.

“The brokers will include those with high breach volumes and those reporting zero breaches,” it said.

“This review aims to better understand current industry practices for renewal time frames, including how and when brokers engage clients prior to expiry, and how and when they present renewal options.

“Following the review, the IBCCC will consider industry needs in this area, and may develop guidance to support brokers, as well as further action for specific breaches.”

The review, announced yesterday, focuses on compliance with section 7.2 of the code, which requires brokers to contact clients “well before and at least” 14 days before their policy expires, and to take “appropriate” action.

The IBCCC’s annual data report, released in August, showed poor client communication continues to be a problem. More than one in three code breaches related to the 14-day rule. Section 7.2 failings led to 2442 breaches, affecting more than 4500 clients. The financial impact exceeded $3.7 million.

“Timely renewals are critical,” the code committee said. “With rising premiums and affordability challenges, many consumers are underinsured or cancelling policies. Brokers play a vital role in helping clients navigate these issues and avoid coverage lapses.”