Reported breaches affected 14,824 clients

The Insurance Brokers Code Compliance Committee imposed six sanctions on brokers in 2025-26, its highest number to date.

The committee also made 17 formal findings that brokers had breached the Code. It said the year’s work targeted serious failures, weaknesses in broker-agent arrangements and ongoing problems with insurance renewals.

Reported Code breaches affected 14,824 clients and had a reported financial impact of $5.848 million. Brokers reported 5,417 Code breaches in total.

A review of seven brokers found weaknesses in how they managed agents and representatives. The problems included conflicts of interest, disclosure and oversight.

That review led to nine breach determinations and one sanction.

Oscar Shub, chair of the IBCCC, said formal action mattered because it required brokers to fix problems rather than simply acknowledge a breach. “The numbers are not the achievement in themselves,” Mr Shub said.

He said accountability gave weight to brokers’ commitments to clients under the Code and pushed firms to remedy failures and strengthen their practices.

Renewal practices remained the largest source of reported Code breaches and accounted for almost half of all breaches in 2025.

Review of seven brokers found agent gaps

After reviewing the practices of 29 brokers, the IBCCC published guidance on earlier planning, closer oversight and clearer communication.

According to the committee, those steps can reduce last-minute pressure, give clients more time to consider their options and lower the risk of gaps in cover.

“Renewals are a persistent problem, but they are also an area where brokers can take practical steps to reduce the risk to clients,” Mr Shub said.

The IBCCC also used industry data to sharpen its monitoring and help brokers assess their own performance. Its analysis reinforced renewals and communication as recurring areas of concern and helped shape where it focused its work.

The committee also used what it learned from monitoring the current Code to push for stronger client protections in the revised Insurance Brokers Code. Those areas included conflicts of interest, vulnerability, renewals and remuneration disclosure.

In 2026-27, the committee will focus on helping brokers implement the revised Code while continuing its work on conflicts of interest and better client communication practices.