Australia’s brokers are valuable to you
The Australian broking industry is growing stronger as more consumers appreciate more their value as advisors, negotiators and time savers.
The popularity of insurance brokers as a medium for distributing and purchasing insurance will increase as they continue to become better qualified and demonstrate their value to businesses.
There are 3,000 registered insurance brokers with 25,000 people employed in the sector according to industry research firm Ibisworld.
Industry revenue for 2011/12 is approximately $10.8 billion.
One of the key challenges for the industry will be how to deal with climate change and the increasing number of natural disasters. This is expected to bring price rises from insurers which will require new strategies and negotiations with insurers combining loss control in return for discounts. The ability to present a client’s risk in a more cost effective way will achieve greater outcomes for all.
Another aim for brokers is that going forward, there are fewer underinsured individuals. This depends on their ability to advise and influence their clients and start looking to form relationships with external experts such as Risk Managers, Building Inspectors, Workplace Health & Safety Consultants, Human Resource Consultants and IT Consultants, to name a few who can value add to the risks facing a modern business. A referral network of specific experts to assist business coordinated by an Insurance Broker will demonstrate their value.
It is thought that with the ageing of the general population, older persons are more inclined to insure both themselves and their assets and also have the funds to do so. However, there is no doubt that the Insurance Industry’s ability to educate the general public about Risk and Insurance in a more effective manner will also have a greater effect. How we use the media, the internet and our Professional Associations to do this is another new challenge.