IBCCC is an independent body that monitors compliance with the Insurance Brokers Code of Practice and their recent 2022 Annual Data Report reveals critical insights into the compliance dynamics of the Australian insurance broking sector.
A notable increase in reported breaches and complaints suggests a shift towards greater transparency and a developing compliance culture yet underscores the necessity for more robust reporting practices. The key findings include:
1. Reporting Culture: The uptick in reported breaches to ASIC and complaints in 2022 highlights a positive trend. Nevertheless, the lack of reporting by several larger firms signals potential areas of non-compliance, an issue that advanced automated systems can mitigate.
2. Breach Data: Despite a 5% decrease in reported breaches, the financial impact was significant, totaling $3.2 million and affecting over 400,000 clients. This points to a need for stringent controls in insurance cover arrangements and claims management.
3. Complaints Data: With a 29% rise in complaints, most of which pertained to domestic products and service issues, the industry's response rate is commendable. However, this also highlights the need for efficient service remediation processes.
4. Severity of Breaches: A marked increase in the severity of breaches calls for a deeper analysis of systemic issues, particularly in claims management and policy renewals.
Implement and maintain accurate breach and complaint recording systems.
Define clear roles within the compliance framework.
Ensure consistent oversight of breach registers.
Provide targeted training for staff.
Cultivate a culture that encourages proactive compliance.
InsuredHQ is fully aligned with the vision of the IBCCC. As we analyze the report's findings, it becomes clear that adopting dependable and intelligent systems of record is not just a necessity, but an industry imperative. Doing so will enable underwriters, agencies, and brokers to exceed these standards.