BUILDING STRONG RELATIONSHIPS

We are now in the middle of the busy June renewal period. The many brokers I talk to are looking forward to the challenge, but they are also preparing for some di cult conversations. Like every expense, the cost of insurance is not going down, and the pressures of increasing interest rates, power bills and day-to-day essentials are starting to bite on the average consumer and business owners. The value proposition of the broker is paramount.

In this month’s Insurance Adviser, Patrick Tiernan, Chief of Markets at Lloyd’s of London, shares his views on the challenges and opportunities presented by cyber, acknowledging that our industry is yet to be tested by a truly major event. Patrick also acknowledges the important role of technology, but at the same time, reinforces the value of relationships and the fact that at the end of the day, this is still a relationship business.

The value of building strong relationships is highlighted in our feature on professional indemnity insurance, in which we explore the complexities of an ever-evolving market where clients no longer fit into one occupation code, and the evolving risk of cyber-attack highlights the need for brokers to recommend stand-alone cyber policies on top of existing cyber endorsements.

Meanwhile, in our energy insurance feature, we explore the change in risk profile between traditional energy production and renewable assets whereby renewable assets have significantly more exposure than their traditional counterparts due to extreme weather exposure, remote locations, and challenging topography. Australia, while behind many other developed nations, is starting to embrace the move to alternative energy sources and the role of the broker is highlighted here in the need to be proactive in identifying the emerging risks in the energy sector.

Communication, networking, engagement and education are key factors to assist brokers to understand the myriad of challenges and the solutions available. This was no more evident than our recent NIBA/UAC Expo in Melbourne, where there were 116 exhibitors and over 500 registered brokers, making the most of the opportunity to have meaningful conversations with underwriters and key decision makers who will play an important role in the successful placement of business. This is extremely important and well exemplified in the fact that many underwriters send their key people to ensure there is a valuable knowledge exchange. The next opportunity will be

Brisbane on 19th July, where like in Melbourne, the NIBA/ UAC Expo will be held in conjunction with the YP Breakfast and NIBA Gala Lunch.

By the time this issue hits your desk, we should have seen the Government’s response to the Quality of Advice review, and hopefully, there will be no surprises. The latest AFCA data, while recording a significant increase in complaints about general insurance, still shows a minimal number of complaints in relation to brokers. And those complaints that do progress, are primarily settled in favour of the broker. While this is no reason to be complacent, it still indicates that brokers are doing the right thing, and our research shows clients are better o as a result of the expertise of a broker.

So, as we enter the busy renewal season, those clients with a broker in their corner will be able to navigate the many challenges being faced.

PHILIP KEWIN Chief Executive Officer, NIBA