The broking code of practice update must respond to rising scepticism, independent reviewer Phil Khoury has told a webinar.

Mr Khoury delivered his final report to the National Insurance Brokers Association last year, and the group supported six of 14 recommendations; it raised concerns about, or redirected, others. Consultations are continuing.

“I think the regulators and advocates are much more sceptical now than, say, three or four years ago,” Mr Khoury told the Australian and New Zealand Institute of Insurance and Finance webinar on Thursday.

“Putting it simply, you’ve got to prove the narrative ‘we are on your side’ is true.”

Mr Khoury says the tone of submissions to the broker review from regulators and consumer advocates suggests they may pursue action elsewhere if they do not see meaningful responses. “Those advocates and regulators will be going to government and saying, ‘We need to do a bit more here.’ ”

Key issues during the review included conflicts of interest and transparency, and there was a push from the consumer side for earlier and clearer remuneration disclosure.

Mr Khoury says the review heard there is more interest in using brokers among retail customers and small businesses – a cohort of clients that need greater assurance. 

The diversity of broking businesses and their practices, and a lack of data and information about the sector, presented challenges for the review, with a relatively small number of recommendations provided.

Mr Koury says it is important that small brokerages receive guidance and support from NIBA on code changes, after concerns over rising compliance costs were flagged as an issue.