A Strong Reputation is Everyone’s Responsibility, Highlights AFCA Chief

The vital role of insurance brokers and the importance of building and maintaining trust and a strong industry reputation were some of the key points David Locke covered in his address at the 2024 NIBA Convention 

The vital role of insurance brokers and the importance of building and maintaining trust and a strong industry reputation were some of the key points David Locke, Chief Ombudsman and CEO of the Australian Financial Complaints Authority (AFCA) covered in his address at the 2024 NIBA Convention. 

In a nod to the integrity of insurance broking, he pointed out that despite the industry being responsible for placing around half of the total insurance business each year, complaints are relatively low. 

“Last financial year, insurance brokers made up six per cent of AFCA members,” Mr Locke said. “Out of the more than 104,000 complaints referred to us, only 584 were about insurance brokers. Compared to the more than 29,000 complaints about general insurance we saw in the same year, your volumes are very small.” 

However, Mr Locke went on to say that it would be a mistake to be complacent, and as a result of themes coming through complaints, he summarised some key points for brokers to keep top-of-mind: 

• Keep documentation and records up to date 

• Ensure policies are fit-for-purpose and not just rolled over for renewal 

• Avoid delays in claims handling, and if it is unavoidable, keep the client well-informed 

• Advocate for policy entitlements and don’t merely be a mouthpiece for the insurer 

• Be responsive and approach client communication with a customer-centric mindset 

He emphasised that the actions of a few can adversely impact the whole industry, particularly in the court of public opinion, and as an example mentioned the ABC’s recent Four Corners episode, ‘The Strata Trap’. 

“All brokers must take this seriously and act to regain trust from consumers and rebuild the reputation of the industry,” Mr Locked added. “A public commitment from you and the industry about what you stand for in terms of fair, ethical and professional conduct and being accountable to that commitment, can and will go a long way to maintaining and building trust.