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Insurance Business | 26 Sep 2016, 06:00 AM Agree 0
Authorised representative networks have hit headlines recently but are they the future of the broking industry?
  • | 26 Sep 2016, 11:22 AM Agree 0
    Just remember essentially the AR's are "the brokers" and generally very experienced its just that they prefer not to own an accounts department to receive premiums and reconcile insurer's statements.
    The question should be what is the compliance status of the larger brokers that offer the AR modules?!

    Craig Saunders - SPHERE GROUP
  • glenda | 26 Sep 2016, 11:44 AM Agree 0
    agree whole heartedly crag!!! Ar's can only work within the framework set by the licence holder - it all starts at the top! i would like to see more scrutiny of the licence holder rather than the AR as far as compliances go. it should continue to remain both the licence holder and the AR's individual responsibility to ensure that what they are doing is good work and compliant with the rules. if the licence holders have good strong compliance systems in place and continually monitor their internal breach registers, complaints registers and audit their AR's client files then the AR models will work as well as or better than the employee system, in my opinion
  • A satisfied AR | 26 Sep 2016, 02:49 PM Agree 0
    Agree Glenda ,MGA Insurance Brokers has been running this successful model for many years ,and as an AR the comfort is in all those support facilities they provide from Accounting.IT and compliance etc Plus the strength of National Broker .
    AR's are here to stay with a good model platform to develop your own business .
  • Robert Cooper | 26 Sep 2016, 03:58 PM Agree 0
    Most Brokerages are wanting to find better ways to motivate staff, and what better way than to give them ownership of their own self-made area. The Licence Holder has to make sure they remain compliant with regulations, and are adequately trained and skilled. The Licence Holder also controls the Trust Fund and the Broking systems are completely transparent and accessible to the licence holder.
    Most employers want to motivate their staff to produce and be accountable for themselves, the AR model does this and rewards success accordingly. However if a person is considering becoming an AR (because have you done the cost of getting your own Broking licence?), they should check the particular model being offered, the type of systems available and accessibility to markets, along with the cut that the licence holder takes and your own Corporate identity.
    The AR model may not be for everyone, but it certainly has suited my business and career.
  • glenda | 26 Sep 2016, 07:44 PM Agree 0
    the article raised the issue of ownership of the clients - well if your contract says you own your own clients then you own them!!! unfortunately what appears to be offered in terms of compliance monitoring is not always the case - but this same issue happens in any model employee or AR. the compliance officer is the single most important person in any broking organisation - setting in place the systems checks and balances and should have the knowledge and balls to run as per the regulations. in any model it is so easy to let bad broking practices go because the employee or the AR is bringing in good dollars - forgetting of course that the licence itself is being jeopardised. i would very much like ASIC to take a far more pro active approach to monitoring the systems rather than waiting for the obvious to become apparent!!!!!
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