Insurance Business forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Notify me of new replies via email
Insurance Business | 10 Jul 2013, 12:00 AM Agree 0
Half of all business people would rather seek insurance advice from colleagues than brokers, potentially leaving their companies underinsured.
  • Graham Hughes | 10 Jul 2013, 01:40 PM Agree 0
    I get what Aon is saying BUT clients also tend to see the broker's advice in pointing out gaps in cover as a sales tactic and not purely advice for their own good.
  • Andrew Gordon | 11 Jul 2013, 03:15 PM Agree 0

    That's a really valid comment. Why is this and what do you think brokers need to do differently?
  • Nick Oldridge | 11 Jul 2013, 03:45 PM Agree 0
    There is a simple way to avoid the 'sales tactic' by agreeing a broker fee only as opposed to a commission based premium. This way it is clear what fee is being earned and there is no 'incentive' for the broker to increase the premium.
  • Greg Cottrell - Insurance Professional Dinosaur | 16 Jul 2013, 05:03 PM Agree 0
    I have said it before and will say it again!
    Whilst we have an industry based on sales commission and no formalised definition of a "Broker", particularly a professional risk manager style broker, we will always be categorised as “self-interest salesmen”. You can’t have your cake and eat it to.
    For example - the large internationals call themselves "brokers” but "act as agents of the insurer" / “secondary product sellers such as banks (and now retailers) are “agents of the Insurer” / an online product provider or aggregator are “Insurers" or "agents of Insurers” / large proportion of brokers operate as “product purveyors based on price” - all receiving remuneration the same way and categorised by law under the same title.
    How does (or we expect) the consumer tell the difference??
    The only time you get paid is when you “SELL” something!!!!! What about the other work that real professional risk manager style brokers perform – real risk advice, contractual advice, the collection of data, the processing of the data, collection & payment of premiums & statutory charges, passing on insurers information, these are just some, but most of all and the most important to our clients (others call them customers) is claim preparation and the management of the process of the claim, we don’t get a cent (unless you are bold enough to ask for it directly from your client). So if you get paid the same for just selling products, most would say, why do the work and no wonder the industry is going in that direction – but don’t ask the public to think of you as anything but “self-interest conniving salesmen”.
    Prior to FSRA 2004 there was a distinction under the Insurance Agents & Brokers Act of 1984 where the public at least knew there was some difference between a “broker “ and an “agent” , not that all brokers acted differently to an agent.
    Just when the progressive brokers of the industry were heading closer towards being professionals, thanks to a car salesman taking over NIBA and turning it into the lobby group of the big internationals even that difference has been wiped out to serve their own self-interest in their efforts to monopolise the market – THANK GOD for the AR loophole……and as a result the emergence of the cluster groups…..there still can be some hope, depending on who ends up the majority owners of the groups and the amalgamations we can expect in the near future.
    As much as insurers, NIBA and the big 4 international brokers deny it, they want to turn us all into lowly paid “Telco style” salesmen and women, with very little or no differentiation in product, giving the consumer little choice (or none at all), WHY, BECAUSE IT IS VERY PROFITABLE THAT WAY – just the way the banks do it, Fuel Companies, Telstra and now Utility companies do it. “Corporate Socialism” is very rife and profitable in this country.
    And just like “uninsured” in this country (25%-45% as quoted) – you will all say “it will never happen to me”…….just like most insurance industry jobs won’t go offshore either….and that’s another story.
    I am now but a dinosaur…..almost.
  • Tony thomas | 19 Jul 2013, 05:58 PM Agree 0
    General thing as I seen during my job. Beside a person well know to product but still they look for advice. Becoz they think may be something differ or can have unique. So brocker should tend to learn and sale enhance in his time.
Post a reply