IBCCC releases its 2022 Annual Data Report
The Insurance Brokers Code Compliance Committee (IBCCC) welcomed an increase in the number of brokers that reported breaches and complaints but had concerns that too many continue to report zero breaches or complaints, as noted in its 2022 Annual Data Report.
The 2022 Annual Data Report provides analysis of the breaches and complaints reported by subscribers for the 2022 calendar year. It includes our observations on compliance with the Code, along with guidance and recommendations for subscribers that will help them improve their practices.
As part of the 2022 Annual Compliance Statement (ACS), 429 subscribers provided data on their breaches and complaints.
As per the report, 55% of subscribers reported breaches, a 5% decrease in reported breaches from the previous year. Most breaches were around areas of arranging insurance cover (41%) and claims management (29%).
61% of subscribers reported complaints, indicating an overall 29% increase in reported complaints. 79% of reported complaints were resolved within 30 days. Most common complaints were around domestic products (51%) and service-related issues (41%).
While the culture of reporting improved slightly in 2022, the report expressed concerns about the number of subscribers who report no breaches or report no complaints.
There were 175 subscribers (45% of the total) that did not report a single breach, including some with more than 50 FTE staff. Meanwhile, 152 subscribers reported no complaints, mostly from the smallest size category.
While more subscribers reported breaches in the 2022 ACS, the IBCCC believes there is still room for improvement around the diversity and effectiveness of the compliance frameworks in place across the industry.
“We urge our subscribers to shift their focus from simply identifying the ‘who’ and ‘what’ of breaches to understanding ‘why’ they occur. This shift in perspective can lead to more effective preventive measures and ultimately better consumer outcomes,” said Oscar Shub, Chair of the IBCCC.
With the 2022 Code now in effect, the IBCCC expects breaches for the 2023 reporting period to rise.
“Regulatory changes often require a period of adjustment as industry adapts and integrates new compliance measures. An increase in reported breaches will demonstrate that insurance brokers are aligning their businesses with the updated standards,” Mr. Shub said.
Phil Kewin, NIBA CEO noted that the data from the report highlights the commitment of the subscribers to the Code and its principles.
“We are encouraged to see that while the number of subscribers reporting breaches increased by 17%, the overall number of recorded breaches reduced by 5%. This highlights the subscribers’ commitment to the Code and the Code principles,” Kewin said.
“Of course, the number of subscribers reporting breaches can improve further, and we believe that with the first full year of the 2022 Insurance Brokers Code of Practice included in the next review, this will improve due to the significantly clearer principles and guidance in the new Code.
“In addition, we are continuing to work with the IBCCC and our members to improve both the communication of the necessity to record breaches, as well as addressing some of the reporting mechanisms that are proving to be obstacles for expedient and efficient reporting.”
You can read the full 2022 Annual Data Report from the IBCCC on their website.