The Insurance Brokers Code Compliance Committee (IBCCC) Annual Data Report for 2024 recorded a 19% increase in reported breaches of the Insurance Brokers Code of Practice, reflecting an evolving compliance environment within Australia’s broking sector.
The committee interpreted this rise as a sign of enhanced internal review processes and greater transparency in reporting compliance concerns.
Oscar Shub, chair of the IBCCC, commented that the increase suggests brokers are becoming more vigilant about their compliance duties.
Nonetheless, he expressed caution regarding the 42% of brokers who reported no breaches or complaints during the period.
“That figure raises red flags,” he 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.”
Shub further explained the dual objective of promoting breach reporting while simultaneously striving for fewer 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,” he said.
The report identified client communication failures as a leading cause of breaches, with more than one-third relating to brokers not informing clients at least 14 days before policy renewal, a key code requirement designed to ensure clients have adequate time to consider their options.
Shub described these as missed opportunities to provide essential support.
“These are breaches that all brokers should be concerned about. They’re missed moments of service,” he said. “Failing to give clients timely notice can leave them exposed and unsupported at the exact moment they need advice and clarity.”
There was also a notable jump in breaches involving remuneration disclosure, rising from 42 in 2023 to 334 in 2024. This increase coincides with new informed consent regulations effective from July 10, 2025.
The IBCCC underscored that clear remuneration disclosure is critical for maintaining client trust and meeting ethical standards.
“Clients have a right to know what they’re paying for, and who’s benefiting,” 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 Australian Financial Complaints Authority (AFCA) reported over 100,000 financial complaints for the 2024-25 year, maintaining high volumes for the second year in a row.
Although total complaints fell 4% from the previous year to 100,745, the data showed rises in complaints related to general insurance and investment advice.
General insurance complaints increased by 17% to 34,231, while investment and advice issues grew 18% to 4,193.
Meanwhile, banking and finance complaints dropped 9%, superannuation complaints declined 16%, and life insurance complaints rose modestly by 5%.
Common complaint themes included misleading information about products, delays in insurance claim processing, and dissatisfaction with service quality.
Complaints about add-on insurance products contributed significantly to the rise, and comprehensive vehicle insurance remained the most frequently complained-about category, with claim delays linked to shortages in parts and skilled workers.
Separately, the Insurance Council of Australia (ICA) is advancing a substantial update to the General Insurance Code of Practice.
The overhaul aims to make the Code legally enforceable and more accessible to policyholders, incorporating recommendations from a recent independent review and the 2022 Parliamentary Flood Inquiry.
