DLA Piper consultant Michael Gill has been elected to chair the Code Compliance Committee, which has been set up to oversee compliance within the insurance brokering industry in Australia.
The Financial Ombudsman Service (FOS) and the National Insurance Brokers Association (NIBA) have established the committee to oversee compliance of the Insurance Brokers Code of Practice from 5 September 2014.
The recently updated code (which took effect on 1 July) sets out requirements on remuneration and brokers’ obligation to act honestly and with integrity. It also covers conflicts of interest, dispute resolution and appropriate handling of money and premiums.
Under the new dispute regime, consumer complaints will initially be considered by general manager of code compliance at FOS, Dr June Smith, who acts as code administrator. Smith’s team will open a conciliation process between client and broker; if this fails to resolve the dispute, the matter goes to the Code Compliance Committee. The committee can make and impose orders and sanctions for code breaches.
Gill is a former long-serving chairman of the General Insurance Code Compliance Committee and president of the International Insurance Law Association and was recently honoured with an Australian and New Zealand Institute of Insurance and Finance Lifetime Achievement Award.