IBCCC Annual Report notes uptick in better reporting practices, but there is still room for improvement
In its 2022-23 Annual Report, the Insurance Brokers Code Compliance Committee (IBCCC) welcomed an increase in the number of brokers who reported breaches and complaints.
The report noted the increase in the number of Code subscribers reporting breaches follows extensive work from the IBCCC to encourage better reporting practices.
Chair of the IBCCC, Oscar Shub, said that the Committee’s work was having an impact.
“Seeing our work deliver better reporting practices among Code subscribers is rewarding. It shows that our efforts to improve this area have been worthwhile,” Mr Shub said.
“Improvements are commonly gradual and often require a shift in organisational culture, so this small step forward is a measure of success for us.”
55% of subscribers reported breaches in 2022 as compared to 48% in 2021. 61% of subscribers reported complaints in 2022 as compared to 55% in 2021.
However, despite the increase in self-reporting practices, the report also emphasised that there many subscribers that underreported their breaches and complaints or reported none at all. 175 brokers reported no breaches, while 152 reported no complaints in the 2022 reporting period.
Mr Shub emphasised that reporting zero breaches and complaints is indicative of an organisation lacking the right systems and processes in place to monitor compliance with the Code of Practice.
“Simply not reporting breaches and complaints is no shortcut to perfect compliance and a good reputation,” Mr Shub said.
The lack of reporting continues a worrying trend within the industry and one that remains a major focus for the IBCCC.
NIBA welcomes the improvement in the number of self-reported breaches, and will work with the IBCCC to help ensure that a culture of reporting is embedded within more subscribers.
NIBA CEO Philip Kewin said: “With the 2022 Insurance Brokers Code of Practice now in full swing, it’s been a great opportunity to refresh and reinforce the requirements of subscribers.”
“This has included increased joint activity in communicating to and engaging with Code subscribers, which has seen an increase in those reporting breaches and the number of breaches. We feel there is still more opportunity to increase these numbers and will work with the IBCCC to ensure subscribers are not only educated, but the reporting mechanisms are as efficient as possible.”
This Annual Report is the IBCCC’s first since the new Code came into effect on 1 November 2022. During the 2022 reporting period, breaches had a financial impact of $3.2 million, affecting 412,800 clients.
Read the full IBCCC 2022-23 Annual Report on the IBCCC website.