A 19% increase in reported breaches of the Insurance Brokers Code of Practice is a sign of growing maturity in the industry's compliance culture, according to the Insurance Brokers Code Compliance Committee (IBCCC).
In its latest Annual Data Report, the IBCCC welcomed the rise in reported breaches and complaints, interpreting the increase as evidence of stronger internal monitoring and a more open, transparent approach to identifying issues.
Chair of the IBCCC, Oscar Shub, noted the increase as indication of improvements in the industry.
“Early detection and transparent reporting are the hallmarks of a healthy compliance culture,” said Mr Shub. “These results suggest that many brokers are taking their compliance responsibilities more seriously, and that’s a step in the right direction.”
However, the IBCCC remains concerned that 42% of insurance brokers reported no breaches or complaints at all in 2024.
“That figure raises red flags,” Mr Shub said. “No organisation is immune to mistakes. Reporting zero breaches or complaints may indicate a lack of internal scrutiny, rather than flawless services. We urge all brokers to reflect critically on their compliance systems.”
Mr Shub acknowledged there is a balance between encouraging more breach reporting and expecting brokers to reduce breaches.
“Let me be clear: reporting breaches is a sign that brokers are paying attention and acting on issues. But that doesn’t mean high breach volumes should be considered a positive. We expect brokers to identify and report problems, but we also expect those problems to reduce over time. It is important to hold both ideas at once: transparency and improvement.”
Communication failures persist
The Annual Data report also reveals that poor client communication continues to be a key area of concern. More than one in three breaches related to brokers failing to contact clients at least 14 days before their policy renewal – a Code obligation designed to ensure clients are given enough time to make informed decisions.
“These are breaches that all brokers should be concerned about. They’re missed moments of service,” Mr Shub said. “Failing to give clients timely notice can leave them exposed and unsupported at the exact moment they need advice and clarity.”
The IBCCC also highlighted the need for brokers to support clients experiencing vulnerability with greater empathy and responsiveness.
“Clear, timely communication is particularly vital when dealing with clients in difficult or uncertain situations,” Mr Shub said. “And it is not solely a matter of regulatory compliance. It is also about doing right by clients.”
Remuneration disclosure in the spotlight
The report found a sharp rise in breaches of the Code’s remuneration disclosure requirements, up from 42 in 2023 to 334 in 2024. The IBCCC posits that this is likely in response to incoming informed consent obligations that took effect on 10 July 2025.
The IBCCC said the increase points to greater industry awareness and underscores the reputation and ethical risks of inadequate disclosure.
“Clients have a right to know what they’re paying for, and who’s benefiting,” Mr Shub said. “This is an issue of trust and transparency. Brokers need to treat remuneration disclosure both as a professional obligation and a client expectation.”
The IBCCC said the Annual Data Report is a timely reminder that good compliance is about delivering quality services, protecting clients, and upholding the integrity of the insurance broker profession.
Read the full data report.
About us:
The Insurance Brokers Code Compliance Committee is an independent body that monitors compliance with the Insurance Brokers Code of Practice. Its purpose is to ensure brokers maintain consistent and high-quality service standards for the benefit of clients, and to promote trust and confidence in the insurance broking industry.
Contact details:
