What does the RIBO Act aim to promote in the insurance brokerage industry?

The RIBO Act, which governs the practice of insurance brokerage, aims to protect consumer rights and promote ethical conduct within the industry. This is crucial because it helps establish a framework that ensures brokers act in the best interest of their clients. By focusing on consumer protection, the Act seeks to enhance transparency and accountability in the insurance brokerage process, fostering trust between consumers and brokers.

The Act's emphasis on ethical conduct also encourages brokers to adhere to high professional standards and practices, which protects consumers from potential malpractice or unethical behavior. Consequently, this leads to a more reliable and reputable insurance market, benefiting both consumers and brokers.

Although competition among brokers and access to insurance information are important, the primary objective of the RIBO Act is to ensure that consumers are treated fairly and that brokers operate with integrity. High commissions, on the other hand, are not a goal of the Act, as they do not inherently promote consumer rights or ethical practices.