The Insurance Brokers Code Compliance Committee issued 17 formal breach determinations last financial year and imposed six sanctions – its highest number to date.

Chair Oscar Shub, says formal action is important because it requires brokers to address problems, rather than simply acknowledging a code of practice breach has occurred.

“What matters is that brokers confront failures, remedy problems and strengthen their practices,” he said. “Holding brokers accountable gives substance to the commitments they make to their clients under the code.”

The committee’s annual report, released today, shows it finalised 17 investigations involving 17 brokers, resulting in 50 breach findings, including two systemic breaches. There were six sanctions and five regulatory referrals.

A previously released strata review of seven brokers found weaknesses in how they managed agents and representatives, including conflicts of interest, disclosure and oversight, with the committee making nine breach determinations and imposing one sanction.

IBCCC’s focus this financial year includes supporting implementation of the updated code of practice, which the National Insurance Brokers Association will release next week.

“We will focus particularly on areas where inconsistent interpretation or implementation could weaken the protections intended by the new code,” the annual report says.

“Our aim is a transition in which brokers are prepared, expectations are understood and our monitoring remains effective from commencement.”

The committee will also work on conflicts of interest and client communication practices.

It will review the conflict management practices of a selection of brokers, examining their governance, oversight and application of guidance, and will test whether brokers are identifying conflicts early, documenting them properly and taking appropriate steps to manage or avoid them.

The committee will review the practices of brokers with higher communication-related breaches or complaints, and examine websites for how easily clients can find information on complaints and dispute resolution, claims services, vulnerability support and the code.

IBCCC data analysis has confirmed that renewals and communication are recurring areas of concern, but Mr Shub says brokers can take practical steps to reduce risks to clients.

“Starting early, tracking progress and communicating clearly gives clients more time to understand their options and make informed decisions instead of dealing with important insurance decisions at the last minute,” he said.

The annual report includes details previously released in a data report, showing brokers in calendar 2025 reported 5417 code breaches affecting 14,824 clients, with a reported financial impact of $5.848 million.