IBCCC releases guidance on breach reporting

The Insurance Brokers Code Compliance Committee (IBCCC) has published guidance on reporting breaches and complaints under the Insurance Brokers Code of Practice (the Code).

The Insurance Brokers Code Compliance Committee (IBCCC) has published guidance on reporting breaches and complaints under the Insurance Brokers Code of Practice (the Code). 

In the 2022 Annual Compliance Statement, 45% of Subscribers reported zero breaches and 39% reported zero complaints. The IBCCC is concerned that this may reflect gaps in systems and processes designed to identify breaches. 

The guidance published by the IBCCC aims to assist Code Subscribers to identify and report breaches and complaints and addresses some common misconceptions identified through engagement with members. 

Building on from their Culture is Key report and comments in the 2022 Annual Data Statement, the guidance focuses on the importance of creating  a workplace culture that “embraces reporting and values compliance”. 

“Alongside effective systems and processes, a culture that values and promotes breach reporting will lead to improvements in performance, better practices, and better outcomes for clients,” the report says. 

To achieve this, the IBCCC says that all complaints must be reported even where the complaint relates to the insurance provider or is resolved immediately.  

The guidance highlights the value to Subscribers in understanding their role in complaints about insurance providers, with the Annual Compliance Statement asking Subscribers to reflect on their own conduct and any impact this may have had on the complaint.  

When reflecting on their conduct, the guidance encourages Subscribers to consider the following; 

• Did I select the best insurer for my client? 
• Do claims denials occur more frequently with this insurer than others? 
• What does this mean for future placements? 
• Did I keep my client informed about the progress of their claim? 

The Guidance from the IBCCC encourages all Subscribers to use complaints and breach data to improve regardless of whether the complaint relates to an issue beyond the broker’s control. 

“It is important that brokers take the opportunity to reflect on complaints that they resolve quickly. These complaints can help a broker identify ongoing or underlying systemic breaches of the Code and work to address them," says the report.

Subscribers are reminded that Annual Compliance Statements are due by 31st March. The IBCCC recently held a webinar to assist Subscribers with completing the ACS, a recording of the webinar can be viewed here. For inquiries or assistance completing the ACS brokers are encouraged the contact Daniela Kirchlinde, Senior Manager - Code Compliance at dkirchlinde@codecompliance.org.au.