NIBA Welcomes IBCCC Report on Strata-Broker Arrangements
Media Release
NIBA welcomes the release of the Insurance Brokers Code Compliance Committee's (IBCCC) report, ‘Strengthening transparency and trust in broker-agent arrangements’, and the independent scrutiny it brings to broker-agent arrangements in the strata sector.
With the number of Australians living in strata properties predicted to increase to 50% by 2040, it is vital that Australian consumers have access to affordable advice and that those who provide services to the strata sector act ethically and in the best interests of strata communities.
NIBA’s Complexity to Clarity research report shows that brokers add value for clients in a variety of ways, including understanding emerging risks and throughout the claims journey. By navigating increasingly complex insurance markets and advocating on behalf of their clients, brokers help enhance transparency and safeguard strata communities.
NIBA acknowledges that governance of representative arrangements must be tighter and conflicts need to be actively managed, not just disclosed.
"Owners corporations are making some of the largest financial decisions a community makes. They're entitled to confidence that the broker acting on their behalf is transparent and is managing any conflicts in the client's interests. Where the report shows that hasn't happened, we take it seriously," said NIBA CEO Richard Klipin.
NIBA welcomes that brokers moved quickly once the gaps were identified, updating agreements and strengthening oversight — a demonstration of continuous improvement in practice.
This is the Code framework doing what it's designed to do: an independent committee reviews how brokers are operating, identifies where the standard isn't being met, and brokers respond by strengthening oversight once the issues are raised
NIBA will continue to engage with members and the IBCCC to ensure brokers operating in the sector meet the standards set out in the Code, building consumer trust and confidence in strata living.