In recent years, the role of the generalist insurance broker has become markedly more demanding. The risks impacting the core lines of business for many brokers - commercial property, motor and SME business covers - have grown in complexity and unpredictability. As a result, brokers are finding that the sheer volume and sophistication of knowledge required to serve their clients effectively is now the single greatest challenge they face. The ability to keep up with evolving insurance products, regulatory changes and the nuanced risk profiles of diverse clients is now essential for success in the industry.
Bryan Leibbrandt (main picture, left) has managed both large international broking houses and now his own independent brokerage. The managing director of LML Insurance Group highlights the stark difference in resources available to generalist brokers compared to their counterparts in larger firms.
“I used to manage an international broking house where they have segmented disciplines for each particular class of insurance,” said Perth-based Leibbrandt. “Now that I’m running my own business, we don’t have that privilege to have different people running those disciplines.”
He said this obliges each member of his broking team to be “a jack of all trades” with expertise across a range of disciplines. Leibbrandt said this difficult task entails considerable self-education. “We’ve got to make sure that we continually educate ourselves so we can educate our clients,” said Leibbrandt.
Cultivating a close relationship with specialist underwriters can help with this task. One side of that underwriter connection is about ensuring clients receive accurate, tailored advice but the other side is ensuring brokers can educate themselves about the risks they need to manage.
“The broker aligning themselves with the right underwriter with that particular risk profile for the client - very important,” Leibbrandt emphasized. Underwriters are not just product providers; they are vital partners in the broker’s quest for up-to-date, specialist knowledge.
Lisa Carter (main picture, right), CEO of Clear Insurance, echoes these concerns. One focus of her generalist brokerage is hospitality and even in this relatively predictable sector Carter places great weight on the need to deeply understand each client’s unique risk landscape.
“The biggest challenge for generalist brokers is to really deeply understand their clients and be able to advise their clients on the risks that their individual businesses are facing,” she said.
The diversity of industries and the specificity of risks - even in sectors like hospitality, where no two businesses are exactly alike - mean that brokers must be adept at both product knowledge and client discovery.
“The challenge for a generalist broker is to be across so many different products and so many different risk exposures to be able to advise our clients properly and getting to know the intricacies of different types of insurance products and how they apply to our clients,” said Carter.
However, Carter points out that there is no “golden answer” or single textbook that brokers can consult. Instead, effective risk assessment hinges on a broker’s ability to engage deeply with clients, understand their operations, and identify both obvious and hidden exposures.
Read next: D&O's soft market broker challenges
“It’s really around that risk assessment piece when you initially engage with a client,” she said.
That includes deeply understanding the insurance market, knowing what existing products are available and what new products are coming out. Like Leibbrandt, she said underwriters are an essential source of expertise and market knowledge.
As the insurance landscape continues to evolve, brokers who can master this learning curve through carefully selected knowledge sources, client insights and underwriting expertise will be best positioned to thrive.
