ASIC has released the results of a review of the remuneration practices of general insurance brokers.

The review did not find any evidence of the kind of systemic abuses uncovered in the United States recently. However, ASIC did identify some deficiencies in relation to Australian brokers’ management of conflicts of interest and disclosure of remuneration. The review also highlighted the inherent conflict in the practice of paying volume bonuses or other types of contingent remuneration to brokers.