Industry Codes of Practice
There are three Codes of Practice that you need to be aware of:
- The General Insurance Code of Practice regulates the conduct of insurers who adopt the Code. As our Underwriters have adopted the code we need to understand the rules with which they are required to comply;
- The Insurance Brokers Code of Practice and the NIBA Code of Conduct regulate the conduct of general insurance brokers.
General Insurance Code of Practice
The General Insurance Code of Practice covers all general insurance products with the exception of:
- Workers compensation;
- Marine insurance;
- Medical indemnity insurance;
- Compulsory third party insurance; and
- Life and health insurance products issued by life or registered health insurers.
Where there is a co-insurance arrangement, all of the insurers must have adopted the Code for the policy to be covered by the Code.
Lloyd’s subscribe to the General Insurance Code of Practice consequently HQ must follow the guidelines.
An updated General Insurance Code of Practice was approved in October 2019. Code subscribers (and their distributors and agents) must transition to the updated Code by 1st July 2021. As an Underwriting Agency that acts on behalf of Lloyd’s which subscribe to the Code, we have policies to support insureds who are experiencing family violence or financial hardship, or who are otherwise ‘vulnerable’, from 1st July 2020.
This is the website link to the General Insurance Code of Practice: www.codeofpractice.com.au
Insurance Brokers Code of Practice
The Code applies to HQ as we are NIBA Brokers and covers all general and life insurance services and includes where we act under binder. It excludes reinsurance and related services such as risk management, inspection, valuation and arrangement of premium funding.
The Insurance Brokers Code Compliance Committee (IBCCC) monitors the Code standards and can impose binding orders or sanctions if the Code is breached, such as reporting us to ASIC or requiring us to undertake corrective action or a compliance audit. It cannot impose a monetary penalty.
This is the website link to the Insurance Brokers Code of Practice:
NIBA Code of Conduct
HQ and our employees are bound by NIBA’s Code of Conduct. NIBA also has a Code which imposes an overriding requirement that we work towards maintaining and enhancing the reputation of NIBA and its members. We do this by acting in the spirit of the Code and encouraging others to do likewise.
Breaches of the NIBA Code can result in fines of up to $10,000 or expulsion from membership of NIBA.