Sooner or later, every client wonders how their broker actually gets paid. A few will ask outright. How you answer that question is about to matter more than it used to, because the rules around what you have to tell them are being redrawn right now.
NIBA’s draft 2027 Insurance Brokers Code of Practice has put remuneration disclosure back at the centre of the conversation, and the industry is split on how far it should go. The draft itself already lifts the bar. It would require a dollar-value disclosure at invoice stage for retail clients, confirm that any client can request remuneration information at any time, and expand the requirements across residential and commercial strata, where the owners corporation rather than the strata manager is now identified as the client. A transition period is expected so broker systems can catch up.
AFCA wants it to go further. Its August submission argues proactive disclosure should reach every individual and small-business customer, whatever the product, and it has framed this as the industry’s final chance to act before government looks at legislation. NIBA’s own consultation feedback points the other way, with broad member resistance to extending proactive disclosure to every small business. The final Code is expected later in 2026, so nothing is settled. Trying to predict the wording is a waste of energy, but the direction of travel is not in much doubt, and it points towards more clarity, not less.
That is easier to accept once you stop treating disclosure as a debate about commissions and start treating it as a debate about trust. Clients already expect to know how their broker is paid, particularly while their premiums keep climbing. Good disclosure is not an apology for being paid. It is a clear account of the value, service and advocacy they get for it, and a broker who can explain that in a sentence is in a far stronger position than one who treats the whole subject as awkward.
The practical work does not depend on the final Code at all. Start with your renewal and invoice communications, and ask whether a client could read them and understand what they are paying, what your role is and how you earn it. Build a standard explanation into the renewal meeting rather than burying it in paperwork, covering what the client is paying for, how you are remunerated, and what they receive from you across placement, renewal and claims. Keep that explanation consistent across emails, invoices and the conversation itself, tailor the depth to the client, and record what was said. Then make sure everyone in the office can answer a remuneration question the same confident way.
There is a business case underneath all of this. Brokers who can articulate their value are far less exposed to price-only comparison, which is exactly what matters for client retention and the long-term worth of the business. The 2026 Vero SME Index makes the same point about how clients really judge their brokers, and it connects to asking sharper client questions, building authority without becoming a 24/7 helpdesk and why compliance underpins long-term success. This is the same direction as the rewrite of the General Insurance Code, and with AFCA on track for record complaint numbers, clean documentation is worth more than ever.
Better Broker’s Compliance & Regulatory Support and business mentoring combine practical process guidance with experienced perspective on turning regulatory change into better client service. If you would rather get ahead of the Code than react to it, have a chat with the team.