Policy Purpose

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The purpose of this Conflict of Interest Policy is to ensure that the decisions and actions of the Australian Consumers Insurance Lobby Inc. ("ACIL") are conducted in an ethical, transparent, and unbiased manner. This policy is designed to prevent and manage conflicts of interest, ensuring all activities and decisions are made in the best interest of ACIL and its stakeholders.

ACIL is committed to attracting highly skilled professionals to serve on its board, recognising that individuals with a wealth of experience and expertise often have interests that could pose a conflict of interest. To navigate this complexity, ACIL has developed a conflict of interest policy that adopts a balanced approach. This policy is crafted to ensure that while the organisation benefits from the invaluable insights and skills of these distinguished board members, the interests of the consumers ACIL represents remain paramount. By carefully managing potential conflicts of interest, ACIL aims to harness the strengths of its board members, thereby enhancing its advocacy and service to consumers, without compromising on its principles and commitment to those it serves.

 

Definition of Conflict of Interest

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A conflict of interest arises when an individual's personal, professional, or financial interests or obligations outside of their duties to ACIL have the potential to influence or appear to influence their decisions, actions, or responsibilities within ACIL.  Such conflicts can arise, for example, from holding directorships or owning shares in other businesses, where the individual may face obligations to act in the best interests of both ACIL and the other organisation, potentially compromising their impartiality and effectiveness.. Conflicts of interest can be actual, potential, or perceived and may involve any situation where an individual might gain personal benefit from their position in ACIL, or where their external affiliations or interests could compromise their judgment, objectivity, or loyalty to ACIL's mission and objectives.

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Scope

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This policy applies to all board members, committee members, employees, and volunteers ("members") of ACIL.

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Disclosure of Conflicts of Interest

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1. All members are required to disclose to the board any actual, potential, or perceived conflicts of interest upon commencement of their role and on an annual basis thereafter.

2. Additional disclosures must be made as soon as a new conflict of interest arises.

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Initial Review of Disclosures

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The board of ACIL will review all disclosed conflicts of interest and evaluate the significance of each conflict and decide on appropriate actions, which may include:
 

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1. Setting in place appropriate practices and guidelines for managing conflicts.

2. Implementing a temporary period of increased monitoring and reporting for the conflicted member’s activities.

3. Seeking advice from external financial, legal or ethical advisors to understand the implications of the conflict and potential actions.

4. Communication with key stakeholders about the conflict and the steps being taken to manage the conflict.

5. Recusal of the member from related decisions or activities.

6. Divestment of the conflicting interest.

7. In certain cases, resignation from their position within ACIL.

The board of ACIL must evaluate the potential risks and benefits associated with any conflict of interest, taking into account whether risks can be properly managed and assessing whether the conflict is advantageous to both ACIL and the consumers it represents.

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Risks of Conflicts of Interest

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Potential risks associated with conflict of interest include:
 

• Loss of Trust: Conflicts of interest, if not managed transparently and ethically, can lead to a loss of trust among consumers, members, and partners. This loss of trust can undermine the organisation’s credibility and effectiveness in advocacy efforts.

• Bias in Decision-Making: Conflicts can lead to decisions that are not in the best interest of the organisation or the consumers it represents. Decisions influenced by personal gain can skew the organisation’s priorities and actions away from its mission.

• Legal and Financial Repercussions: Failure to manage conflicts appropriately can result in legal challenges and financial penalties, especially if decisions influenced by conflicts lead to breaches of laws or regulations.

• Reputational Damage: The public revelation of poorly managed conflicts can cause significant reputational damage, making it difficult for the organisation to engage with stakeholders, attract funding, or influence policy.

• Internal Conflicts: Unaddressed conflicts of interest can lead to internal strife, reducing cohesion among board members and staff, potentially leading to a toxic work environment and decreased productivity.

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Benefits of Conflicts of Interest

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Potential benefits associated with conflict of interest include:

 

• Diverse Perspectives: Properly managed conflicts of interest can bring diverse perspectives to the board, offering insights into various facets of the insurance ad associated industries. This diversity can enrich decision-making processes, providing a broader understanding of issues and innovative solutions.

• Expertise and Experience: Members with conflicts might possess specialised knowledge or experience that can be invaluable to the organisation. Their insights into industry practices, challenges, trends and specific case studies can help the organisation in crafting more effective advocacy strategies.

• Networking and Relationships: Individuals involved in multiple aspects of the insurance industry can facilitate connections and relationships that might benefit the organisation. These networks can be leveraged for collaborations, partnerships, and access to information.

• Informed Advocacy: The firsthand experiences and knowledge of board members with industry ties can inform the organisation’s advocacy work, making it more nuanced and effective. Understanding the practical implications of policy changes from an industry perspective can help in crafting more realistic and achievable advocacy goals.

• Resource Optimisation: Leveraging the professional networks and resources of members with conflicts, under strict ethical guidelines, can lead to more efficient use of the organisation's resources. This might include access to research, data, or expertise that would otherwise be costly or difficult to obtain.

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Member Responsibilities in Conflict of Interest Situations

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In managing conflicts of interest, members who identify such conflicts are expected to adhere to the following actions to maintain the integrity and trust in the organisation's decision-making processes:
 

• Prompt Declaration of Conflicts: Members must immediately disclose to the board any conflicts of interest as soon as they arise, ensuring transparency and allowing for timely management of the conflict.

• Prioritise Organisational and Consumer Interests: Members are required to consistently prioritise the interests of ACIL and the consumers it represents over their personal interests, ensuring decisions are made for ACIL’s benefit rather than individual gain.

• Self-Recusal from Conflicted Decisions: Members should voluntarily step back from discussions, decision-making processes, and actions where their involvement could be deemed an unmanageable conflict, thus safeguarding the organisation’s integrity and decision-making objectivity.

• Avoid Influence: Members must avoid any attempt to influence the decision-making process related to the conflict, ensuring that discussions and resolutions are unbiased and in the organisation's best interest.

• Update Declarations: Members are expected to regularly update their conflict of interest declarations to reflect any changes in their personal, financial, or professional circumstances that might give rise to new conflicts.

• Seek Guidance When Uncertain: In situations where the appropriateness of participation in decision-making is unclear, members should seek guidance from the board, to ensure their actions align with organisational standards and policies.

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Ongoing Management of Conflicts by the Board

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In situations where a board member is allowed to continue participation in activities where a conflict exists, the board must actively manage and monitor the situation to ensure the integrity and trust in the organisation's processes. Specifically, the board should:

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• Disclosure on ACIL Website: Display this Conflict of Interest Policy and disclosed conflicts of interest on the ACIL website, unless deemed inappropriate due to privacy, legal, or sensitivity considerations.

• Regular Disclosure and Review: Incorporating a dedicated agenda item for conflict of interest declarations in board meetings, enabling members to openly disclose and deliberate on any conflicts, as well as to reevaluate ongoing conflicts and the effectiveness of their management strategies.

• Consequences for Non-Compliance: Clearly outline the consequences for failing to adhere to the organisation's conflict of interest policy, including disciplinary actions or removal from board activities.

• Assess Impact on Decision-Making: Regularly review and assess if the conflicted member's actions or decisions are adversely affecting the organisation's commitment to its consumers. This includes evaluating if the member:
  o    Prioritises personal interests over the interests of the consumers ACIL represents.
  o    Inappropriately prioritises activities aligned with their interests over other organisational priorities more important to consumer welfare and ACIL.

• Establish Clear Guidelines for Recusal: Clearly define circumstances under which the conflicted member must recuse themselves from discussions, decision-making processes, and access to relevant information.

• Initiate Appropriate Action for Unmanageable Risks or Misconduct: In instances where a member's handling of conflicts is deemed inappropriate, or the conflict poses an untenable risk to ACIL that cannot be effectively managed, the board must take appropriate actions. This could range from implementing corrective measures and additional oversight to considering suspension or removal of the member from their position to protect the integrity and interests of the organisation.

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Reporting a Conflict of Interest Concern

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ACIL encourages transparency and accountability within its operations. To uphold these values, we welcome reports from anyone who identifies a potential conflict of interest in breach of this policy involving one of our members. If you have observed or are aware of a situation that may constitute a conflict of interest, we strongly urge you to come forward. Here’s how you can report your concern:
 

• Email Reporting: Send a detailed account of your concern to info@acilobby.org.au. Please include as much specific information as possible to assist in our assessment and subsequent investigation.  The email will be received by Chairperson Tyrone Shandiman.

• Online Form Submission: Complete the form provided below with details of your concern. The form submission will go to consumer representative Committee Member Pam Farrell.

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Upon receipt of your report, the following steps will be taken:

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• Initial Review: The concern will be preliminarily reviewed to ascertain the nature and seriousness of the reported conflict of interest.

• Board Discussion: The issue will be brought to the attention of the board for a comprehensive discussion. This ensures that all aspects of the concern are considered from a governance perspective.

• Action and Investigation: If deemed necessary, appropriate actions will be initiated. This may include a formal investigation to gather more information and assess the impact of the conflict.

• Response: We commit to responding to your concern, providing feedback on the outcomes of our review and any actions taken. Upon receiving your concern, we will provide a response timeframe within 7 days, taking into account factors such as the severity of the issue, scheduled board meetings, and the current workload of the board. Due to confidentiality and privacy considerations, some details of the actions may not be fully disclosed.  

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Policy Purpose

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The purpose of this Conflict of Interest Policy is to ensure that the decisions and actions of the Australian Consumers Insurance Lobby Inc. ("ACIL") are conducted in an ethical, transparent, and unbiased manner. This policy is designed to prevent and manage conflicts of interest, ensuring all activities and decisions are made in the best interest of ACIL and its stakeholders.

ACIL is committed to attracting highly skilled professionals to serve on its board, recognising that individuals with a wealth of experience and expertise often have interests that could pose a conflict of interest. To navigate this complexity, ACIL has developed a conflict of interest policy that adopts a balanced approach. This policy is crafted to ensure that while the organisation benefits from the invaluable insights and skills of these distinguished board members, the interests of the consumers ACIL represents remain paramount. By carefully managing potential conflicts of interest, ACIL aims to harness the strengths of its board members, thereby enhancing its advocacy and service to consumers, without compromising on its principles and commitment to those it serves.