New Rules for Insurance Brokers

NEW RULES FOR INSURANCE BROKERS COME INTO EFFECT

Australian insurance brokers are now operating under a radically updated code of practice which is regarded as one of the best in the world.

The Updated Insurance Brokers Code of Practice, came into effect on January 1. It sets out clear principles and guidelines for brokers and affects dealings with both clients and underwriters. It also clearly sets out the responsibilities of brokers.

The new code was designed by NIBA in consultation with members and regulators. It covers all insurance intermediary services including commercial and life policy placement, associated services such as risk management, valuations and premium funding arrangements and issues like remuneration and service expectations.

What has not changed or been updated is the ongoing requirement for brokers to always act in the best interests of their clients.

The code is enforceable through the independent Insurance Brokers Disputes Limited and
Asic has also offered a ringing endorsement and has promised to support the code through its regulatory activities.

Please contact should you require a copy of the code.