9 minute read
Representation Why be a NIBA member? ........................... 10
WE ARE YOUR VOICE!
The following is an overview of some of the things NIBA has been examining on behalf of members.
Treasury Quality of Advice Review
NIBA has provided a submission to the Treasury’s Quality of Advice Review draft Terms of Reference. The draft Terms of Reference, which were released late last year, highlighted the Quality of Advice Reviews’ focus on issues a ecting the a ordability and accessibility of advice. In particular, how changes to the regulatory framework could better enable the provision of high quality, accessible and a ordable financial advice.
Most notably for brokers, the Terms of Reference confirmed that the review would consider issues such as the concepts of general and personal advice, safe harbour provisions, disclosure requirements and the exemption to the ban on conflicted remuneration for general insurance brokers.
After consulting with members, NIBA identified no major issues with the Reviews’ draft Terms of Reference, however, took the opportunity to encourage a holistic review of the advice sector.
NIBA’s submission noted that previous reviews into various aspects of the provision of advice had neglected to consider issues relating to the provision of insurance and risk management advice. The submission argued that given the increase in the rate of under-insurance in many parts of Australia, and the di culties consumers face when trying to obtain appropriate insurance, it is vital that risk advice is considered under the general umbrella of financial advice, not just in relation to recommendation 2.6 of the Royal Commission.
In addition to providing a submission, NIBA continues to engage with Treasury and key stakeholders within government, enlisting the help of our members to brief Federal MPs on the role insurance brokers play in ensuring all Australians have access to quality risk advice.
ALRC Review of Financial Services Legislation
Last month, NIBA provided a submission to the Australian Law Reform Commission’s interim report on the Review of the Legislative Framework for Corporations and Financial Services Regulation.
The report, which was tabled in Parliament late last year, seeks feedback on 16 proposals, and eight questions for reform. The report also made several recommendations relating to relatively technical matters, which the Government could begin implementing immediately. NIBA’s submission generally supported the recommendations made by the ALRC, however, noted that a number of policy issues raised in the report, were also the subject of Treasury’s Quality of Advice Review. NIBA’s submission also cautioned against a one size fits all approach to financial services arguing that while simplification of the law is required, it should not be to the detriment of an entire industry and that carveouts and exemptions contained within the Corporations Act are a reflection of how varied the financial services market is. To view either submission visit the submissions page on the NIBA website, www.niba.com.au/government-policy/ submissions/
Member feedback required
To support NIBA’s upcoming submission to the Quality of Advice Review, NIBA is working hard to gather success stories from members.
This may be a claim that was originally denied by the insurer but through your advocacy and knowing the policy was eventually accepted. Or it could be a time you went above and beyond to assist a client.
If you would like to provide an example, please do so in writing to NIBA’s Policy and Research Manager at ahextell@niba.com.au
CONTACT NIBA
As always, brokers who have questions about these or any other government or regulatory matters should feel free to contact NIBA CEO Philip Kewin at: pkewin@niba.com.au
2020
INSURANCE BUSINESS AWARDS 2021
INSURANCE BUSINESS AWARDS
WHY NIBA MATTERS TO ME
Members share why NIBA is important to them and the broking industry.
DANIELA ZACCONE
Principal I Power & Renewable Energy, Marsh Specialty
ABOUT NIBA
OUR MISSION
NIBA is the one voice for insurance brokers in Australia, representing their interests and promoting high standards of professionalism and competence.
OUR OBJECTIVES
Representation
We represent the interests of members and their clients to governments, regulators, industry stakeholders, the media and the community in a manner that is respected and relevant. We have forged strong relationships at a state and national level to ensure that your interests are represented.
Professionalism
We set and promote high standards of professional practice for insurance brokers for the benefit of their clients and the community through the development of professional standards, QPIB, CPD accreditation and the Insurance Brokers Code of Practice.
Community
We provide members with opportunities to meet, share, grow and prosper, and build professional networks with the wider intermediated insurance community that will last throughout whole careers. GET IN TOUCH! Whatever your age, or level of experience, NIBA has brokers’ best interests at the core of everything we do. Find out what we can do to help benefit your business and your team at niba.com.au/membership
The 2022 Insurance Brokers Code of Practice aims to enhance and promote the professionalism and standing of NIBA members, and further increase community confidence in insurance brokers.
On 1 March 2022, NIBA o cially launched the 2022 Insurance Brokers Code of Practice.
The development of the 2022 Insurance Brokers Code of Practice has been a significant project for NIBA requiring extensive stakeholder consultation. Therefore, it is fair to say it has taken longer than expected, but it is now complete.
The NIBA Board is incredibly proud of the final version and the level of engagement with industry, regulators and consumer groups that has gone into producing an industry-leading Code of Practice.
The 2022 Insurance Broker Code of Practice reflects changes in the industry, as well as changes to community and client expectations that have occurred since the Code was last updated.
There are a number of significant changes in areas such as disclosure, remuneration and vulnerable clients that all Code Subscribers will need to know.
NIBA understands that for many Principal Members these changes will simply enforce what they already do on a day-to-day basis, while for others significant changes will need to be made in the way they do business.
To allow members time to implement these changes, the 2022 Insurance Brokers Code of Practice will not take e ect until 1 November 2022. The 2014 Insurance Brokers Code of Practice will be in e ect until 31 October 2022.
CODE PRINCIPLES
The Code is underpinned by a set of guiding principles. For NIBA members, these principles will already be familiar, as these are principles that members adhere to on a daily basis.
PROFESSIONAL COMMITMENT
Professionalism is one the core pillars of NIBA, so it is only appropriate that the Code Subscribers’ commitment to professionalism is also reflected in the 2022 Code of Practice.
This includes a commitment to increasing professionalism across the industry through ongoing education and professional development, ensuring that services are only delivered by those with the skills and expertise to do so, and embedding the Code Principles within the policies and procedures of Code Subscribers’ organisations.
ETHICAL BEHAVIOUR
The 2022 Code of Practice also includes obligations for Code Subscribers to act in an ethical manner. This includes complying with all relevant laws and obligations, including those set out in the 2022 Code of Practice and not engaging in any conduct with the intent to limit or avoid obligations under the Code.
TRANSPARENCY AND ACCOUNTABILITY
Finally, the 2022 Code of Practice increases existing obligations around transparency and accountability including communicating with clients and prospective clients in a clear and timely manner, assisting regulators, enforcement agencies and AFCA, and holding other Code Subscribers accountable for their implementation and observance of Code obligations.
WHAT HAS CHANGED?
While the 2022 Code of Practice di ers significantly from previous iterations, there are a number of key changes that members should be aware of especially around reporting of breaches, remuneration, disclosure and vulnerable clients.
Unlike the previous Code, anyone can report a Code Subscriber who has breached the Code to the IBCCC. Under the 2022 Code of Practice, Code Subscribers will be obligated to report brokers who have breached the 2022 Code of Practice once they become aware of the breach.
The 2022 Code of Practice includes stronger obligations for disclosure across a number of areas including disclosing who the broker acts for, conflicts of interest, remuneration and requiring the broker to provide their clients with information setting out the terms of engagement.
Under the 2022 Code of Practice brokers will be prohibited from receiving certain types of remuneration including contingent and preferential remuneration except when acting under a Binder arrangement.
The 2022 Code of Practice also mirrors the General Insurance Code of Practice in the introduction of provisions that require brokers to identify and support clients experiencing vulnerability. This will ensure that vulnerable clients are a orded the same protections no matter how they choose to engage with the general insurance market.
IMPLEMENTATION GUIDE AND WEBINARS
The 2022 Code of Practice is a further demonstration of the ‘one voice’ of insurance brokers in continuing to commit to a journey of improved outcomes for broker clients.
Members are encouraged to familiarise themselves with the 2022 Code of Practice and examine their current practices, in light of these new obligations.
Given the significant changes contained in the 2022 Code of Practice, provisions have been made for an eight-month transition period with the 2022 Insurance Brokers Code of Practice coming into e ect on 1 November 2022.
This period is to provide Code Subscribers with su cient time to review their internal policies and procedures, as well as their agreements with insurers and reinsurers.
NIBA will be releasing a Member Implementation Guide on 1 April 2022 to assist members with implementing the 2022 Insurance Brokers Code of Practice, as well as setting out what best practice looks like.
As the 2022 Insurance Brokers Code of Practice is a living document it is expected that both the Code and the accompanying guide will grow and develop to reflect changes in industry and community expectations.
A webinar for Code Subscribers will be held on 27 April and 5 May 2022, which will answer any questions you may have. Details on how to register for either of these webinars will be posted on the NIBA website, www.niba.com.au/code
NIBA has also been in discussions with the relevant training organisations who will deliver their own training modules.
