What is a consequence of the current regulatory environment for insurance brokers?

The regulatory environment for insurance brokers is designed to protect consumers and ensure that brokers operate within a framework that encourages ethical practices and professionalism. One significant aspect of this environment is that operating without the necessary authorisation is a criminal offence. This means that brokers must be properly licensed and regulated to conduct business, which helps to maintain standards within the industry and provides a level of consumer trust.

Regulatory bodies set these requirements to ensure that brokers have the necessary competencies, qualifications, and ethical standards to provide insurance services responsibly. By enforcing the need for authorisation, regulators aim to mitigate potential fraud and ensure that consumers are adequately protected in their insurance transactions. This framework contributes to the overall integrity of the insurance market.