IBCCC Launches Targeted Review into Policy Renewal Practices

The Insurance Brokers Code Compliance Committee (IBCCC) is commencing a targeted review into management of policy renewals.

It will focus on compliance with Section 7.2 of the Insurance Brokers Code of Practice (the Code):

• Section 7.2(a): Brokers must contact clients well before and at least 14 days prior to the expiry of their insurance cover to discuss next steps.
• Section 7.2(b): Brokers must take appropriate, professional, and timely steps to seek cover and advise clients of available options.

This review aims to better understand current industry practices for renewal timeframes, including how and when brokers engage clients prior to expiry, and how and when they present renewal options. It will also assess alignment with the Code and proposed improvements from the IBCCC’s submission to the Code review.

Timely renewals are critical. With rising premiums and affordability challenges, many consumers are underinsured or cancelling policies. Brokers play a vital role in helping clients navigate these issues and avoid coverage lapses.

Why this matters:

Policy renewal breaches have consistently represented around half of all reported breaches since 2017. In 2024 alone, brokers reported 2,442 renewal-related breaches, impacting over 4,500 clients and resulting in more than $3.7 million in financial impact.

What’s next:

The IBCCC has begun the process of contacting a select number of brokers to complete a short questionnaire. The brokers will include those with high breach volumes and those reporting zero breaches.

Following the review, the IBCCC will consider industry needs in this area, and may develop guidance to support brokers as well as further action for specific breaches.

For more information, please contact: info@codecompliance.org.au.