In September, the FOS Code Compliance Team welcomed the inaugural members of the Insurance Brokers Code Compliance Committee (IBCCC) – the new independent body that will monitor compliance with the revised Insurance Brokers Code of Practice.
The revised Insurance Brokers Code of Practice came into effect on 1 July 2014, replacing the previous 2007 version. The revised Code restates the obligations insurance brokers have to their clients – including the obligation to act in a client’s best interests – and includes new guidance on the meanings of important terms. The Code also provides a mechanism for brokers’ clients to report an alleged breach under the Code. There are currently 391 insurance brokers that subscribe to the Code.
The service standards outlined in the Code play a vital role in the regulatory and consumer protection framework. These standards include:
- transparent management of conflicts of interest
- fairness in service delivery
- disclosure of relationships and scope of services
- handling of money
- competency and training
- responding to catastrophes
- dispute resolution
- promotion of the Code more generally.
The IBCCC was established under the new Insurance Brokers Code Compliance Committee Charter, and officially began operation on 5 September 2014. The Committee’s role is to monitor compliance with the Code, determine if there has been a Code breach and oversee administration of the Code. FOS will provide Secretariat, Code monitoring and investigation services to the Committee.
The new Committee members are Michael Gill as Independent Chair, Julia Davis as Consumer Representative and Stephen Lardner as Industry Representative.
Michael Gill has more than 40 years’ experience as a specialist insurance lawyer.
He is the President of the International Insurance Law Association, a member of the National Board of AILA, and former Independent Chair of the General Insurance Code Compliance Committee.
Julia Davis is an admitted solicitor in NSW and works as the Policy and Communications Officer for the Consumer Credit Legal Centre in NSW, which specialises in helping consumers understand and enforce their legal rights.
Stephen Lardner is a professional business manager and leader with a strong background insurance and accounting. He has more than 30 years’ experience in executive and non-executive directorships, primarily in the insurance industry.
For further information on the Insurance Brokers Code of Practice, visit: www.niba.com.au/html/code-of-practice.cfm
Further information about the role of the FOS Code Compliance Team is available here.