CEO / Welcome
A TIME OF CHANGE
S
ome rather big things are happening at the present time and will continue to develop over the coming months and years.
Royal Commission Reforms
Most insurance brokers are now working to understand the impact that the Royal Commission reforms will have on their business operations and processes. Design and Distribution Obligations, Anti-Hawking Reforms, Deferred Sales Model, Disclosure of Non-Independence, and many other reforms will need to be implemented within all broking firms, in addition to regulatory changes relating to internal dispute resolution and breach reporting. For a sector which was not mentioned in the Royal Commission into Misconduct in Banking and Financial Services, it is quite extraordinary that insurance brokers are having to cope with such an extensive change program.
Code of Practice
NIBA continues to work on the review of the Insurance Brokers Code of Practice. This is taking time, because it is important that we get it right. A Code of Practice is an industry’s commitment to its current and potential clients, and in the current post-Royal Commission climate, expectations of external parties are now very high. There are too many examples of poor client outcomes in other areas of the financial services industry, and it is crucial the new Insurance Brokers Code of Practice sets appropriately high standards of professionalism, ethics and integrity. More importantly, high standards must not just be set out in the new Code of Practice – they must be actively embraced, adopted and applied in the ordinary and everyday operations of insurance broking firms. Most do this already, but we must make sure all brokers are working to the highest standards of professional conduct and behaviour.
The Insurance Market
I continue to receive comments about the state of the insurance market – from members, and from government agencies who are concerned about issues with availability and affordability at the present time. In mid-July 2021, I am not seeing any signs of movement in the so-called insurance cycle, and I fear the very hard market might be something that will be with us for some time. This is the time for insurance brokers to shine – to show real value to their clients as to how best to assess, manage and finance their risks.
Northern Australia
The big change in northern Australia will be the Cyclone Reinsurance Pool, currently under development by a Treasury Taskforce. The challenges with this project are great, but the need for genuine relief is real. NIBA will do its best to make sure the Cyclone Reinsurance Pool provides genuine benefit to policyholders and property owners across northern Australia, and in Far North Queensland in particular.
6 / INSURANCE ADVISER AUGUST 2021
NIBA Convention
While we had a largely (but not completely) successful virtual NIBA Convention in 2020, we do have to acknowledge that there is an overwhelming demand for a Convention experience to be provided on a face-to-face basis. But we also need be realistic about the current state of the COVID-19 pandemic in Australia, and the impact it is having on border crossings and community lockdowns. We have decided to change the format to get the best of both worlds, with a Convention experience being offered in five capital cities over five weeks. Brokers will not have to cross borders – they can attend the Convention in their own state and will be able to access the other four conference sessions virtually. We will again provide over 10 hours of highly relevant content as part of the Convention program, with real opportunities to gain significant CPD points along the way. And we will also provide opportunities for brokers to meet face-to-face with sponsors and exhibitors, and with their industry colleagues to discuss the challenges and opportunities we all face.
NIBA
A significant change is about to take place within NIBA. As the President has previously announced, I will retire as Chief Executive on 31 October 2021, and Philip Kewin will take on the role from 1 November 2021. Philip has tremendous experience as the former Chief Executive Officer of the Association of Financial Advisers. He is very well-trained in the challenging tasks of industry representation, government relations and lobby. He will be an excellent spokesperson for insurance brokers and will make a great contribution to the future of insurance broking in Australia. He will commence at NIBA in a transitional capacity on 16 August 2021, and I look forward to sharing my knowledge and experience with Philip in the coming months.
Insurance Broking 2025
On 2 August 2021 the President, VicePresident and I will present the outcome of the NIBA Board’s project to consider what insurance broking will look like in 2025. This is very exciting. I am looking forward to it. In the meantime, please stay safe, stay healthy, and get vaccinated as fast as you can.
DALLAS BOOTH Chief Executive Officer, NIBA
