Insurance chief expects corporate cops to nab broker cheats

Insurance Australia Group chief executive Mike Hawker said an Australian Securities and Investment Commission investigation into the insurance broking industry would uncover wrongdoing. Hawker said he was sure ASIC would find brokers who had not declared commissions. There are an estimated 800 to 900 insurance brokers in Australia but the investigation is expected to centre on a handful of the largest players. It follows probes by ASIC into financial planners and mortgage brokers which uncovered practices such as soft-dollar commissions and volume-based incentives such as bonuses, trips and other perks that could influence recommendations but were not disclosed to customers.