CEO / Welcome
A NEW CODE, RETURN TO FACE-TO-FACE AND MORE NATURAL DISASTERS... A BUSY START TO THE YEAR
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’m proud of two significant achievements since the last issue of Insurance Adviser, but also acknowledge the significant and widespread devastation created by the record rain and resultant flooding across Queensland and Northern NSW. The financial, personal and emotional toll has been widespread as once again homes, businesses and livelihoods have been washed away. And unfortunately, there has also been the loss of life. The broker community is more attuned to these events than the average Australian, because in many cases, they are at the frontline when it comes to responding and helping clients rebuild. For every disaster, there will be heartbreaking examples of traumatic loss, but likewise tales of heroism and communities rallying to support each other. Its at times like this, people gain the full appreciation of having an insurance broker at a time of heightened stress and anxiety. For some residents, like those in North Western NSW, they have only just picked themselves up from the last floods only 12 months ago, only to see rebuilt and renovated properties once again under water. So too those in Queensland from the 2011 floods. The response from the Government and of course the insurance industry will come under immense scrutiny, and as the cleanup commences there will no doubt be a lot of questions and judgement of the ease, timeliness and appropriateness of the response. We know for some time the issues of risk mitigation and resilience have been discussed, along with urban planning, and I get a sense that when certain areas are subject to a one in one hundred year flood twice in two years, there has to be a more substantial response than just rebuild and move on. This will be an ongoing discussion that NIBA and its members will participate in, but for now, our hearts go out to all those impacted. For the first time since 2019, NIBA held a face-to-face annual Convention in February 2022. Aptly renamed NIBA Convention 2021.2 Professionalism + Resilience = Opportunity, the event was originally scheduled for October 2021 but had to be deferred due to the Omicron outbreak. This hybrid event was one of the industry’s first major face to face events in over a year and was spread across all mainland states to avoid the challenges of border restrictions. NIBA 2021.2 was a celebration of returning to some type of normal, the program highlighting our current challenges while focusing on the future. The program was originally designed by Dallas Booth, with significant input from each host state. I would like to acknowledge Dallas and the state Divisional Committees for their input and support in the development of the program. Members can still gain access to the entire program by subscribing to the recorded sessions at www.niba.com.au/ convention. Meanwhile, we are assessing the merit in
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returning to a traditional Convention at the Gold Coast Convention Centre on 4 to 6 October 2022, and I encourage you to provide us with your feedback when you receive the survey, if not already done so. This is important in delivering relevant and valuable education, information and networking. The most significant achievement recently was the release on 1 March 2022, of the revised Insurance Brokers Code of Practice. This is such an important step in our ongoing professionalism and setting standards above the law. While my involvement has been relatively late in the piece, I have been impressed at the meticulous and hands on approach taken by the NIBA Board to deliver a Code we can all be proud of, that is practical to implement. Our focus to date has been finalising the drafting of the Code, through an independent reviewer, in consultation with key stakeholders. That now moves onto assisting brokers to interpret and implement the Code in time for the effective date of 1 November 2022. While in many cases brokers will be adhering to all or significant components of the Code, I am sure members will have many queries about the practical implications. An Implementation Guide should be available around 1 April and we will be running information webinars in late April and May. One thing certain about the year ahead is uncertainty. For this reason, I am confident the role of the broker will be more important than ever. The Vero SME index showed that the number of people looking to use a broker was increasing, as people realise more and more the importance of having the right insurance for their needs. You only have to look at the exponential growth in queries relating to travel insurance, as most people don’t know what is and isn’t covered. The only way to ensure your risks are adequately protected is through a trusted professional insurance broker. The implementation of the Code is pivotal in our approach to the Quality of Advice Review, which incorporates the review of general insurance remuneration, and is due no later than 16 December 2022. This also overlaps the Australian Law Reform Commission (ALRC) review of the legislative framework around advice more generally. We have made submissions to the Review’s “Terms of Reference” and the ALRC, interim Report A, which are both on the NIBA website, www.niba.com.au/ government-policy/submissions/
PHILIP KEWIN Chief Executive Officer, NIBA
