Representation

WE ARE YOUR VOICE!

There is a lot happening at the present time. The following are a few key developments that insurance brokers need to be aware of.

Small Business Insurance

Last month NIBA met with members of the Insurance Council of Australia (ICA) and the Council of Small Business Organisations Australia (COSBOA) to discuss SME Insurance issues. It is hoped that this roundtable will signal greater cooperation between the organisations on what has become an extremely important issue for NIBA and its members.

Add-on insurance

Following our submission seeking exemptions for brokers under the new add-on insurance legislation, Treasury has sought more information from NIBA as to insurance products that would be impacted by the legislation and the potential for harm to Australian consumers.

NIBA will continue to work with Treasury over the coming months to ensure that brokers and their clients are not negatively impacted by the changes which are scheduled to commence in October this year.

ASBFEO Small Business Insurance Inquiry

NIBA recently responded to the Australian Small Business and Family Enterprise Ombudsman’s report into small business insurance issues.

The report identified “widespread market failure in regards to the availability and affordability of essential small business insurance products.”

While NIBA welcomes the final report and the renewed focus on small business insurance issues, it rebuked a number of recommendations, most importantly the recommendation that the ban on commissions be extended to general insurance brokers.

NIBA’s response highlighted that this recommendation was made without any evidence of client detriment and under the incorrect assumption that removing commissions would reduce costs to small business owners.

The response highlighted that in a hardening market, insurance brokers play an even more critical role in helping small businesses navigate the insurance landscape and ensuring their cover remains appropriate to their level of risk.

Emergency Services Funding in NSW & TAS

NIBA continues to encourage all brokers with clients in New South Wales and Tasmania to visit the Emergency Services Funding Hub on the NIBA website. NIBA has prepared materials for both NSW and Tasmanian members to provide to clients, including a template letter that brokers and clients can send to their local MP, calling for the abolition of insurance-based taxes and a more equitable system for the funding of state fire and emergency services.

The Role and Value of Insurance Brokers

NIBA continues to meet with State and Federal Members of Parliament, Ministers as well as business and consumer groups to promote the Deloitte report on the Economic Value of Insurance Broking and the Value of Brokers more broadly ahead of the 2022 review into the intermediated insurance industry.

CONTACT NIBA

As always, brokers who have questions about these or any other government or regulatory matters should feel free to contact NIBA CEO Dallas Booth at: dbooth@niba.com.au