The Financial Services Royal Commission recommended a review of a number of matters within three years, including a review of the regulatory exemption that allows commissions to continue to be paid for general insurance products. Both the Government and the Opposition have accepted this recommendation.
NIBA CEO, Dallas Booth is confident that general insurance brokers have a sound basis for arguing the continuation of commissions, “I do believe we need to have a stronger case supported by hard evidence of the value insurance brokers provide to clients, insurers and the community.”
With this in mind, the NIBA Board recently approved a project which has seen the association engage with Deloitte Access Economics to prepare a report on the role and value of insurance intermediaries in Australia. Deloitte produced a report on mortgage brokers last year, which has been extremely valuable in showing the value they bring to their particular sector, particularly in promoting the availability of funds and competition in that field.
Deloitte hosted a workshop with a number of insurance brokers from across the industry to identify the wide range of ways in which insurance brokers support their clients and also contribute to the efficient and competitive intermediated insurance sector. Attending the workshop along with Booth were:
- Lynette Walsh, Aon
- Gary Okely, Marsh
- Tim Wedlock, Austbrokers AEI
- Ryan Cameron, EBM
- Vanessa Morton, Gary Morton Insurance Brokers
- Andrew Broughton, Network Steadfast.
Booth said, “In addition to gathering the ideas and arguments, we will also need solid data on the work brokers do, and the value they offer. We will be working with Deloitte to determine the indicators that will best support our arguments, and to ascertain whether the data is readily available. We may need to survey brokers in due course to gain better data for this purpose.”
Booth has confirmed that NIBA will keep its members informed of the progress of this work over the next six months. In the meantime, he can be contacted via email@example.com by members with queries around this project.