The National Insurance Brokers Association of Australia (NIBA) has published an updated 2022 Insurance Brokers Code of Practice, with the amended Code taking effect on 1 November 2023. It applies to all Code Subscriber activities and dealings that take place from that date.
The Code applies to all services and activities a Code subscriber engages in when advising on or arranging general insurance and other related products on behalf of a client including services and products provided on a stand-alone basis (“Covered Services”).
In particular the Code requires disclosure of information about any remuneration (including commissions) or other benefits a subscriber will or expect to receive as a result of providing Covered Services.
This information must include:
(i) the dollar amount of commission they will or expect to receive in providing Covered Services;
(ii) any non-monetary remunerations they receive from insurers as a result of providing Covered Services;
(iii) any fees payable by the client in relation to the subscriber’s services to them; and
(iv) whether they intend to keep any portion of the commission or service fee if the policy is cancelled before it is due to expire.
When a broker is acting for a client, they may receive non-monetary benefits, including:
(i) access to technology platforms and IT support;
(ii) education and training;
(iii) membership services provided by insurance broker networks;
(iv) event sponsorship; and
(v) marketing assistance.
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Author: David Jacobson
Principal, Bright Corporate Law
About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.