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NIBA has today opened the final draft of its rewritten Insurance Brokers Code of Practice for public consultation. Consultation closes on Friday, 7 August 2026.

Key takeaways

The Draft 2027 Insurance Brokers Code of Practice (2027 Code) is a sound industry Code with the following improvements over the current Code:

The 2027 Code:

  • AFSL – has strengthened the connection with brokers AFSL obligations;
  • conflicts of interest – codified ASIC’s RG 181 Conflicts of Interests and provided a structured mechanism to manage conflicts;
  • strata insurance – requires documented management of conflicts of interest, remuneration disclosure for all strata insurance, and identifies the owners corporation as the client not the strata manager
  • remuneration – required for Retail Clients at quotation $ or % or both) and invoicing ($) and disclosure to all clients (retail and wholesale) when requested
  • vulnerability – requires a structured documented approach including staff training and working with insurers
  • reporting – codifies requirement to keep, produce and retain records
  • IBCCC – strengthened enforcement and sanction powers
  • review – every 5 years

My observations of each Section

Section 1 – About this Code

  • the 2027 Code connects the Code to AFS Licences. This will provide stronger enforcement powers to IBCCC however requires some caution as the 2027 Code is directed at operational transactions and conduct while the s912A(1) AFSL general obligations are positioned at a more elevated level focusing on systems and procedures rather than isolated conduct.

Section 2 – how the Code works

  • the 2027 Code recognises the time to implement material system changes and provides for a 2 to 18 month system-change runway (in particular Section 7.1(a)(ii), which extends commission disclosure to strata insurance).
  • the 2027 Code expressly applies to interactions and dealings with prospective clients.
  • the 2027 Code has 2 tiers – Code Principles (section 3) and Obligations (sections 4-14). Where an obligation in the Code does not expressly cover a situation, the Code Principles guide how a Code Subscriber should act.

Section 3 – Code Principles and our commitments

  • the Code Principles apply to a wide range of interactions other than client interactions including prospective clients, other brokers (whether NIBA members or not), insurers, assessors, loss adjusters, and experts, IBCCC, NIBA, AFCA and regulators.
  • the Principles include professional commitment (training & competency), ethical behaviour, transparency and accountability
  • the Code extends to employees and authorised representatives of the NIBA member

Section 4 – Engagement and terms

  • greater disclosure obligations apply before acting for a prospective client and an overarching requirement to do everything we reasonably can to give our clients clear information so they understand the services we are providing.

Section 5 – Communications, behaviour, and who we act for

  • the 2027 Code effectively negates general advice other than when provided in generic advertising materials.

When providing advice, we must give our clients the information they need to understand the advice, including the costs, key risks and benefits of any products we recommend, and any other matters required by law.

  • It’s difficult to see how the above Code acquirement (s 5.1(b)) could be met by providing general financial product advice to retail Clients
  • If a client has a Cooling-off Right regarding a policy the broker must promptly inform the client that this right exists, what it permits them to do, and how to exercise it.

Section 6 – Managing conflicts of interest (new section)

  • this new Section largely codifies RG 181;
  • adopts a structured approach of avoiding unmanageable conflicts, disclosing conflicts to the client and managing conflicts with the clients consent;

Section 7 – Remuneration

  • requires remuneration disclosure for all strata insurance (Residential Strata Insurance and Commercial Strata Insurance) for Retail and Wholesale clients;
  • uses the Corporation Act definition of small business, therefore this section will have limited impact to commercial/SME policies other than commercial motor and strata insurance;
  • for strata insurance clearly identifies the client as the owners corporation (Body Corporate) not the strata manager
  • remuneration must be disclosed to any client, on request, this includes Retail and Wholesale clients
  • disclosure must be made at quotation stage ($ or % or both) and at invoicing ($ only)
  • mirrors the Informed consent requirements under Corps Act when providing personal advice to Retail clients. However clarifies that a blanket informed consent does not comply with the Code, consent must be obtained at an individual policy level.

Section 8 – Claims and policy renewal

  • imposes a proactive obligation to be an advocate for clients to try to get the claim paid, if the insurer unreasonably denies or reduces a client’s claim. A broker can contract out of this obligation through the Terms of engagement
  • imposes obligations to obtain client instructions for any claim offer or settlement
  • a requirement to notify the client at least 28 calendar days before their policy expires that it is due for renewal.

Section 9 – Supporting clients experiencing vulnerability

  • Adopts the draft 2026 GI Code circumstances that may give rise to vulnerability
  • must record (with consent) client’s vulnerability when recognised
  • must take extra care. This is a stronger requirement than the current Code which required supporting
  • must have documented policies, procedures and training with training at induction and annually
  • must help clients access support from insurers
  • specific requirements for clients affected by family violence, catastrophes and major events

Section 10 – records

  • codifies the requirement to ‘keep, produce and retain’ records for 7 years

Section 11 – compliance with the Code

  • the NIBA member is responsible for ensuring staff, other persons acting on their behalf, and authorised representatives to comply with the Code
  • requires brokers to conduct an annual review to ensure Code compliance

Section 12 – Complaints

  • codifies obligations under RG 271

Section 13 – The IBCCC, breach reporting and sanctions

  • provides for IBCCC to report matters to NIBA and ASIC

Section 14 – Promoting and reviewing the Code

  • requires for an independent review of the Code every 5 years

Disclaimer: Reproduction of statements made in this article by media outlets, whether in full or in part, is strictly prohibited without the written express consent of the author. The views, opinions, and positions expressed within this article are those solely of the author and Compliance Advocacy Solutions Pty Ltd and not the views of other individuals, companies or organisations they may be affiliated with. The author and Compliance Advocacy Solutions Pty Ltd make no representations as to accuracy, completeness, currency, suitability, or validity of any information in this article and will not be liable for any errors or omissions or any loss or damage arising from its use or reliance. This article is intended for educational and informational purposes only and should not be relied upon as professional legal advice.

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