The National Insurance Brokers Association will carry out further code review consultation with members, including on the critical issue of remuneration disclosure.

As insuranceNEWS.com.au has reported, the independent code reviewer’s report is expected to be published within weeks, and NIBA will then approach members for further feedback.

Remuneration disclosure was a long-running flashpoint during the last code review. Some brokers agreed that commissions should be disclosed to small businesses as well as retail clients, but others resisted that change and it was eventually removed from the 2022 code.

Today, the Australian Consumers Insurance Lobby calls on the industry to adopt “full remuneration transparency” for all clients, and make it “a fundamental part of the revised code”.

“Remuneration should be disclosed to all clients – full stop,” chair Tyrone Shandiman said.

“The industry often argues that commissions are the right way to be paid, or that commissions are necessary in insurance broking. If that’s the case, then why hide them? Transparency is essential to maintaining trust.”

Mr Shandiman says all consumers – retail and wholesale – “deserve clarity” over how brokers are compensated, regardless of whether remuneration is structured as a fee, commission or combination of both.

“Clients cannot make informed decisions unless they understand how and why their broker is paid. Selective or partial disclosure only undermines confidence – and it is completely at odds with modern standards of transparency.”

Chairman of the Insurance Brokers Code Compliance Committee, Oscar Shub, says the watchdog has been “absolutely clear” in calling for increased transparency. It wants the disclosure obligations to be expanded to include small business clients.

“Our own submission – published along with many others – sets out why clear and transparent disclosure of remuneration and commissions is critical to good practice and leads to better client outcomes,” he told insuranceNEWS.com.au today.

“We know many brokers already meet this standard of transparency. Increased transparency in this area also aligns with the broader shift and expectations across financial services, where openness on fees, incentives and potential conflicts is seen as fundamental to building trust and accountability.”