8 minute read
Industry Bulletin
REWARD AUSTRALIA’S EMERGING BROKING TALENT
Nominations for the 2022 Verosponsored Young Professional Broker of the Year Award are now open, and anyone in the industry can nominate a top emerging talent in the insurance broking space. The winner of each state/territory Vero-sponsored Young Professional Broker of the Year Award then becomes a finalist for the national Warren Tickle Memorial Award.
The 2021 Warren Tickle Memorial Award winner Mitchell Wight explains why he found the entire experience so unique as well as exciting, and how it has propelled his career. He said, “The development program sponsored by Vero is fantastic at providing insights into your own personal development, while helping to equip you with tools that you will use to further your career within the industry. Being named the Young Professional Broker of the Year award has opened doors not just individually, but also for my organisation to a range of experienced professionals within the industry. These senior industry members have been more than willing to assist and provide mentorship throughout the exciting changes that come with being named the Warren Tickle Memorial Award Winner.”
Each year, NIBA celebrates the achievement and contribution of an outstanding member, under the age of 35, through the Young Professional Broker of the Year Award at the state/territory level and the Warren Tickle Memorial Award at national level. Sponsored by Vero, the award represents the pinnacle of achievement for the nation’s young broker community.
Inviting everyone connected to the insurance industry to nominate professionals for the award, Wight added, “Nominating a young professional for the Warren Tickle Memorial Award provides an incredible opportunity for your organisation’s future leaders to represent the best of your company’s brand.”
Awarded to a young professional who has exhibited an outstanding level of professionalism and integrity, the national award began in 1990 in honour of Warren Tickle, a former Insurance Commissioner, and insurance lecturer. He was the Commissioner responsible for the implementation of the Insurance (Agents & Brokers) Act 1984. Warren’s early insurance career was at Sun Alliance, today known as Vero, the sponsor of this award.
The winner of the Warren Tickle Memorial Award is selected from five finalists who are chosen as the Young Professional Broker of the Year in their state/territory: NSW/ACT; Vic/Tas; SA/ NT; WA and Qld. The state winners receive access to a four-week professional development program and the Vero Young Brokers Alumni. The winner of the Warren Tickle Memorial Award also receives a tailored learning experience to the approximate value of $10,000, courtesy of Vero. Previous winners have received a prize including a trip to London to experience the international broking market, and a study program at the Yale School of Management in New Haven, Connecticut (USA).
Entries are assessed by the state/territory judging panel throughout March and April 2022, and finalists are announced at regional events in May and July 2022. All state/territory finalists are eligible for the Warren Tickle Memorial Award. If you are a part of the insurance industry in any capacity and know a young broker who is doing a wonderful job looking after the needs of their clients, you are invited to nominate them for the NIBA awards at niba.com.au/niba-awards, it takes just five minutes.
For breaking news and updates curated specially for insurance brokers please visit: niba.com.au/articles
NIBA MEETS WITH ASSISTANT TREASURER ON BEHALF OF BROKERS
Key representatives from the National Insurance Brokers Association (NIBA) met with the Assistant Treasurer, The Hon Michael Sukkar MP, as part of ongoing advocacy activities.
NIBA was represented by CEO Philip Kewin, former CEO Dallas Booth, and Board Director Eric Harris. This was NIBA’s first meeting with the Assistant Treasurer and it was an important engagement in raising further awareness of the value of brokers to their clients and the community.
Kewin said, “Minister Sukkar was very open and supportive, recognising the important role brokers play particularly in the last 18 months. He was particularly concerned about the hard market that currently exists and the challenges particularly around leisure and tourism. These are key drivers of economic growth, and the challenges around affordability and accessibility would be an unnecessary handbrake.”
He added that another important part of the discussion was the upcoming Remuneration Review in 2022, “recognising that there were no systemic issues or examples of poor consumer outcomes involving brokers in the Royal Commission, we acknowledged that Treasury will be undertaking a review as recommended in the final report. NIBA has already engaged with key members of ASIC and Treasury, so engagement with the Assistant Treasurer was a natural step. Minister Sukkar indicated that the terms of reference for the review may be delivered sometime before the end of this year.”
Kewin concluded, “The lines of communication are well and truly open and all parties agreed to maintain dialogue so that there can be an informed and objective review.”
DOES YOUR LOCAL MP OR SENATOR KNOW WHAT A BROKER DOES?
Earlier this year, the Minister for Superannuation and Financial Services, The Hon Jane Hume MP, announced that the Life Insurance Framework (LIF) Review and the Quality of Advice Review would be combined and brought under the purview of Treasury, enabling the review to consider the full breadth of issues impacting both the quality and affordability of all forms of financial advice.
As part of the review, Treasury will consider whether the current conflicted remuneration and non-monetary remunerations exemptions for general insurance brokers remain relevant. Achieving a positive outcome for members is NIBA’s number one priority, and we are well underway in our preparations for the review, engaging with federal ministers and Treasury.
Last year, following the release of the Deloitte Report on the economic value of insurance brokers, NIBA engaged with state and federal ministers, consumer, and business groups to increase awareness and understanding of what our members do, and the benefits brokers provide to their clients. This year we want to go further, and we need your help to do it.
Our aim is to have every federal MP and Senator visited by a local broker who offers insight on what they do and how their work benefits their clients. To support members in these conversations, NIBA has developed a number of resources including a Member Advocacy Guide, speaking points, and a leave-behind document for representatives to refer to in future conversations.
Members who would like to assist NIBA in developing stronger relationships with federal MP’s and Senators should send an email to NIBA’s Policy Manager, Allyssa Hextell on ahextell@niba.com.au, indicating your interest, federal electorate (if known) or location, and if you already have an existing relationship with your local representative.
For breaking news and updates curated specially for insurance brokers please visit: niba.com.au/articles
New research findings released by Vero today reveals nearly two-thirds of Australian Small Medium Enterprises (SMEs) have altered their business models as a result of COVID-19, yet, only around one-third of those have made changes to their business insurance.
Vero surveyed 1,500 Australian SME business owners/ decision makers to gain insight into how the pandemic has affected their business operations, insurance purchasing behaviours, and perceptions of the insurance industry.
Vero Head of Commercial Intermediaries, Anthony Pagano said brokers should work with SMEs to revise their insurance to ensure it suits the changing circumstances.
“The research suggests that most businesses are different now to early 2020, and while they may have been proactive in changing their models to suit the pandemic conditions, many are lagging behind when it comes to adjusting their insurance. There is a risk that many SMEs are under or inappropriately insured as a result of the changes they’ve made and have not considered the material implications to their insurance program or business,” he said.
“SMEs impacted by COVID-19 are not the only customer segments brokers should touch base with. Regardless of industry or size, brokers should continue to check their clients’ situation to ensure any changes are appropriately reflected in their insurance.”
Increasingly, the changes that SMEs have made to their business look to be permanent with over 80 percent saying that they will keep either all or some of the changes they’ve made to their business, up 19 percent from this time last year. A majority (87 percent) of those who are planning to retain all the changes have talked to their broker, but only 57 percent who are planning to keep just some of the changes have been in contact.
“As we learn to live with the virus and begin a new ‘normal’, brokers should also look to the future and understand which changes their clients plan to keep and areas where they will revert,” Pagano said.
“Broker clients are more likely to have increased or tweaked their insurance, while direct is more likely to have cancelled, showing the value a broker can bring in navigating businesses through difficult times.”
Broker conversations can impact the changes that SMEs make to their insurance, with those who have been in contact with their broker far less likely to have made negative changes to their insurance, such as increasing their excess or cancelling some or all of their insurance.
“This suggests that brokers play a clear role in ensuring that SMEs make appropriate decisions about how to best reduce their insurance.”
When asked what SMEs are worried about, COVID-19-related concerns dominate the list, with the long-term impact of the pandemic on the economy ranked the highest concern at 39 percent. Other significant COVID-related concerns include mental health of employees, maintaining COVID safe practices, and managing vaccination status. “This suggests that COVID-19 will clearly continue to impact the decisions SMEs will need to make over the coming year,” Pagano added.
Many SMEs are now placing importance on insurance covers that are relevant to pandemic conditions such as restarting after suspended operations, ongoing maintenance of equipment, and covering employees who work from home.
Pagano concluded, “Brokers could expand their conversations beyond just physical risks such as exposure to fire and look into insurance ramifications for issues such as remote working.”
“Regardless of industry or size, brokers should continue to check their clients’ situation to ensure any changes are appropriately reflected in their insurance,” Anthony Pagano, Vero Head of Commercial Intermediaries.
For breaking news and updates curated specially for insurance brokers please visit: niba.com.au/articles
