The National Insurance Brokers Association says it is “disappointing” that a small number of brokers failed to meet code of practice breach and complaint reporting obligations, amid a focus on supporting high standards across the profession.

The code compliance committee has sanctioned three brokers by referring them to NIBA for action under its membership rules after they failed to meet the reporting requirement for a third straight year.

The brokers missed the latest March 31 self-reporting deadline, despite direct reminders from the committee and notices published by NIBA.

The referral of the matters, identified as a systemic breach of section 11.4 (b) of the code, will be considered by the NIBA board.

The brokers eventually submitted their statements and have moved to improve internal processes, including fixing administrative issues and reviewing compliance systems. 

NIBA says it will work with code subscribers and relevant stakeholders to support high standards of conduct and effective implementation of the code.

“These standards are central to building trust with clients, regulators and the broader community,” it said.

NIBA says the compliance committee action shows code independent monitoring and enforcement arrangements are working.

“Our members understand the importance of meeting their obligations, and we are encouraged by the improvements in compliance across the sector,” CEO Richard Klipin said.

“Where issues arise, they are being identified and dealt with, and that is exactly what a functioning code framework should deliver.”

Code committee chair Oscar Shub says the annual compliance statements are a “basic and essential” obligation for subscribers.

“When brokers repeatedly fail to meet this commitment, it raises real questions about their systems, their governance and, ultimately, their commitment to professionalism,” he said.

“Every business faces competing priorities, but three consecutive years of missing a deadline signals a deeper problem. This was not just a one-off oversight.”

The compliance committee has noted a general improvement in reporting timeliness over the past three years, with the number of brokers missing the deadline falling from 86 in 2023 to 11 in 2024. Repeated warnings and widespread engagement resulted in most brokers that previously missed a deadline reporting on time this year, it says.