At the recent NIBA Convention, CEO Richard Klipin unveiled “a sneak peek” of the association's landmark broker-focused research, “The State of the Sector.” One headline: the intermediated insurance sector is currently growing at a rate of 6.1%. This growth rate points to brokers’ ability to expand their portfolios even amid challenging economic conditions. However, while this is a positive sign, some brokers at the Convention told Insurance Business that they would like to see the industry and NIBA do more to accelerate this momentum.
“It's obviously positive, however, we would like to see it a lot higher,” said Prudence Chang (main picture, left), joint managing director of National Credit Insurance Brokers (NCI).
Chang highlighted that the increasing complexity of insurance and risk management needs across different businesses, combined with tough economic circumstances, presents significant opportunities for further growth in the intermediated sector. She believes these opportunities could be realised if more brokers - and NIBA itself - actively engage with business organisations.
“I certainly think that talking to different business bodies about the importance of having an intermediary represent their organisations and their associations will certainly help bolster that figure going up,” said Chang.
For Chang, this engagement needs to go beyond conversations. More brokers, she argued, should “infiltrate” - meaning become directly involved members of business organisations.
“It's also about us infiltrating those associations and having them understand the value of brokers moving forward,” she said.
Other brokers see the sector’s growth as an opportunity to rethink - again - how brokers are compensated. For Lisa Carter (main picture, right), CEO of Clear Insurance, the positive growth figure is a sign that brokers are delivering value - and that it may be time to charge fees, in line with other professions.
“So the opportunity for the general insurance broking fraternity is to start charging fees for advice and acting as more of a risk consultant and looking at the best product for their client,” said Carter.
She noted that charging fees could help brokers address the threat posed by directly sold insurance, which impacts those who rely on commissions. By charging for advice, brokers could recommend directly sold cover and still earn an income.
Are you an insurance broker? What’s your reaction to the intermediated sector’s growth of 6.1%? Please share your thoughts below
