The Insurance Brokers Code of Practice sets standards of good industry practice for insurance brokers that have agreed to follow its standards when dealing with current and prospective individual and small business clients.
By subscribing to the Code, insurance brokers have committed to:
- continuously improve standards of practice and service
- promote informed decision-making about their services, and
- act fairly and reasonably in delivering those services.
The Code is owned and published by the National Insurance Brokers Association (NIBA) and forms an important part of the broader financial services consumer protection framework.
The Code sets out commitments in several areas, including:
- compliance with the law
- managing conflicts of interest
- advising who the member acts for
- advising the scope of the member’s services
- acting diligently and fairly with integrity
- disclosure of remuneration
- appropriate money handling
- acting with competence
- responding to catastrophes
- effective handling of disputes
- promoting the Code
- bringing the insurance broking profession into disrepute
More than 350 insurance brokers subscribe to the Code. For a full list of code subscribers as at 30 June 2014, see Appendix A in the Insurance Brokers 2013–14 Annual Report.
The Insurance Brokers Code Compliance Committee independently monitors the Code to ensure insurance brokers are meeting their obligations, and achieving service standards Australians can trust.
The Code Compliance and Monitoring team (Code Team) at the Financial Ombudsman Service (FOS) provides code monitoring, secretariat and administrative services to the Committee. The Code Team is a separately operated and funded business unit of the Financial Ombudsman Service.
The role of the Insurance Brokers Code Compliance Committee is to ensure insurance brokers comply with the Insurance Brokers Code of Practice. It does not provide compensation. If you are seeking compensation, talk to your financial services provider or lodge a dispute with the Financial Ombudsman Service.
If you believe an insurance broker may have breached the Insurance Brokers Code of Practice, you can report your concern by emailing the Code Team or calling 1800 367 287 and asking to speak with the Code Team Investigations Manager.
Read the Code Compliance Committee’s publications for in-depth analysis of code compliance within the Australian insurance broking industry.
National Insurance Brokers Association (NIBA)