This week National Insurance Brokers Association (NIBA) met with a representative of the NSW Minister for Finance and Small Business, Damien Tudehope as well as the NSW Shadow Minister for Finance and Small Business, Daniel Mookhey to discuss the Deloitte Access Economics report, The Economic Value of Insurance Broking and the upcoming review into broker remuneration.
NIBA CEO Dallas Booth said, “These meetings are just some of many that NIBA is conducting with members of government, regulators and business and consumer groups around Australia in the lead up to the 2022 ASIC review.”
Booth also revealed that the Association made a submission on behalf of brokers in response to ASIC’s Consultation Paper 332 Promoting access to affordable advice for consumers (CP 332).
The submission states, “NIBA is firmly of the view that the Australian community deserves access to and needs good-quality advice in relation to their general insurance risks and needs. The fact that increasing numbers of retail clients are seeking the advice and support of an insurance broker is evidence of this position.”
This submission is in response to the inquiry that forms part of ASIC’s unmet needs of advice project.
“Only general insurance brokers are trained, experienced and licensed to provide personal advice to retail clients in relation to general insurance needs, products and services. Virtually all insurance companies operate under a general advice model, and do not provide advice to prospective policyholders on the insurance products likely to meet their individual needs and circumstances.”
Booth added , “A number of NIBA members have indicated that they have examined the potential for operating under a personal advice model, but having regard to regulatory and compliance obligations it is not cost effective to do so.”
He said, “NIBA would like to suggest that instead of starting with the legislation, we start with the needs of clients.”