Is your broker qualified?
It's always good to know that someone who provides a vital service to you is qualified. Below is some important information which will allow you to question a broker about their qualifications to look after your insurance needs. Not all brokers are from NIBA member firms, and therefore aren’t subject to NIBA’s strict codes of conduct. It pays to ask.
All brokers are required to be licensed by the Australian Securities and Investments Commission (ASIC). Their conduct is regulated by ASIC and they must comply with the requirements of their Australian Financial Services licence. All brokers are required to meet minimum ASIC standards of education. However, NIBA Qualified Practising Insurance Brokers and Fellows meet even higher educational standards than those required by legislation.
All brokers are required to participate in a Government-approved consumer complaints-handling scheme. Insurance Brokers Disputes Limited resolves disputes and complaints related to brokers. NIBA brokers must also comply with the Insurance Brokers Code of Practice, which sets standards of customer care that must be complied with. A new revised Code comes into effect on January 1 2007.
The Code requires clear and prompt communication with the client, proper representation when arranging policies and providing support in the event of a claim.