NIBA advocates for brokers at Senate Committee over advice reforms

Last week, NIBA represented the insurance broking profession at the Senate Economics Legislation Committee.

Last week, NIBA represented the insurance broking profession at the Senate Economics Legislation Committee to discuss the proposed first tranche of the government’s Delivering Better Financial Outcomes package. This first tranche of reforms addresses some of the outcomes from the Quality of Advice Review.  

In his opening statement to the Senate Committee, NIBA CEO Richard Klipin affirmed NIBA’s support for the government’s proposed reforms. 

“NIBA supports the objective of the reforms to ensure that financial advice, including general insurance advice, remains accessible and affordable for all Australians."

“NIBA advocates for a regulatory framework that facilitates the delivery of high-quality advice and services. By doing so, we can enhance financial outcomes for all Australians and ensure that Australian communities, families and businesses remain robust and resilient,” said Klipin as part of his opening remarks.  

Klipin also used this opportunity to highlight the key role that insurance brokers play as trusted partners in making a real difference in the lives of many Australians on a day-to-day basis.  

“The role of an insurance broker in serving their clients and their broader community has never been more important as Australians face increased risks due to an increase in the frequency and severity of natural disasters,” said Klipin.  

“Insurance brokers are the essential intermediaries between customers and insurers, providing expert advice, risk assessment, and tailored solutions to meet the needs of their clients. Brokers also play a key role during claims, acting as the client’s advocate and helping them navigate the claims process.” 

The Senate Committee was set up to inquire and report on the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Bill 2024. After concerns raised by NIBA and other stakeholders, the government recently issued an amendment that removed a drafting error that inadvertently removed the conflicted remuneration exemption for brokers who provide general advice. If left unresolved, this would have made general risk advice harder for Australian consumers to access.   

The Senate Committee is expected to report back with its findings later this week.  

You can read NIBA's full Opening Statement to the Senate Committee here.