Brokers show true value in challenging times according to IBCCC report

The IBCCC has released a report yesterday outlining its findings from an Own Motion Inquiry into how Subscribers to the Insurance Brokers Code of Practice responded to the COVID-19 pandemic and extreme weather events during 2020.

The inquiry by the Insurance Brokers Code Compliance Committee found that many Code subscribers had embraced their position as an intermediary between client and insurer, often going ‘above and beyond’ to get good outcomes for clients in 2020.

The inquiry was based on information from 427 responses to a questionnaire in the 2020 Annual Compliance Statement (ACS) and from follow-up video conferences with 46 Code subscribers. Subscribers were asked about the impact of COVID-19 and of extreme weather events that occurred from 2019 to 2020, including bushfires, storms, hail and flooding. The report noted that much of the impact and lessons from the pandemic also applied to extreme weather events, such as changes in work environments, issues with getting cover and delays in claims processing due to the volume of claims.

The inquiry found that brokers had demonstrated an understanding of the importance of having a resilient business, underpinned by a resilient workforce, when overcoming tough times. Almost two-thirds reported they had or were developing a resilience policy during 2020; others said they rely on other policies and procedures for managing unexpected challenges and disruptions. A number implemented support mechanisms for employees to improve wellbeing during this period.

NIBA CEO, Philip Kewin said, “The report reinforces the value brokers bring to their clients. Faced with their own challenges of running their own businesses through the pandemic, the findings demonstrate that brokers were able to adapt and stay in close communication with their clients, and as the report identified, “going above and beyond” helping clients identify where they were covered, what support was available and finding ways to ensure they were able to retain their insurance.”

“The role brokers can play in resilience and mitigation is also highlighted and will continue to be an evolving dynamic”, Kewin added.

A copy of the report is available on the IBCCC website.