IBCCC releases its Annual Data Report, with data breach reporting under the scanner

The Insurance Brokers Code Compliance Committee (IBCCC) launched its Annual Data Report yesterday, highlighting important findings around data breach reporting that the industry should take note of.  

 The report, which analyses findings from data provided by insurance brokers who subscribe to the Insurance Brokers Code of Practice, found that more than half of subscribers self-reported no code breaches in 2021. According to Oscar Shub, Chair of IBCCC, this should be taken with a grain of salt.  

 “While reporting zero breaches of the Code may sound impressive, it does not necessarily mean a subscriber is doing well,” he said. 

 “It generally means that there are deficiencies in the processes and systems used to monitor compliance. We know that breaches will occur from time to time, even with the best compliance frameworks in place. So, reporting no breaches does not reflect perfection as much as it reflects poor monitoring and a failure to embrace a culture of reporting.” 

 While more can be done when it comes to reporting data breaches, the report also includes some key insights that show that the industry is undergoing a cultural shift and is currently in a transition period. Self-reported breaches were higher in 2021 when compared to the previous year, with 48% of subscribers self-reporting breaches as opposed to 44% in the year prior. 

 Philip Kewin, NIBA CEO considers these to be welcome signs in moving the needle towards adopting a culture of reporting for the industry. 

 “We still have a way to go in terms of breach reporting,” he said. “While we are heading in the right direction, I believe the new Insurance Brokers Code of Practice which came into effect last year, will enable subscribers to more readily identify breaches given the clearer wording.” 

 Mr Kewin also emphasised the positive outcomes for those who have already gone through this cultural shift and transition.  

 “Importantly, those who are embracing the process are learning from doing so and are improving their processes and systems to enhance their client outcomes,” he said.  

 The report recognised some common themes when looking at the most important reasons for the breaches taking place. There were three common themes, including: 

• lateness in issuing policy renewal notices to clients 
• lack of clear communication and poor record keeping 
• brokers being unaware that their actions were an actual or perceived conflict of interest. 

 The report offers an invaluable 12-month snapshot of the industry, with key findings shedding a light on where the industry has performed well and where it could do better, especially from a compliance perspective.  

 You can read the full Annual Data Report from the Insurance Brokers Compliance Committee’s website.