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Brokers ‘a species unto themselves’

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Insurance Business | 12 Oct 2012, 12:05 AM Agree 0
A management and business analyst has suggested insurance brokers “are a species unto themselves” when it comes to how they opt to charge their clients for services...
  • John Devaney | 12 Oct 2012, 12:20 PM Agree 0
    Max Franchitto's model is based in an ideal world. Lawyers do not have to compete with Coles. Accountants do not have to compete with the ANZ for doing Tax work. Dentists don't have to compete with car yards selling insurance as an add-on. Engineers don't have to compete with Steel suppliers offering free design services whereas as brokers have to compete with all but one insurer (Zurich God bless 'em.) Make the playing field level and the broking profession could change its income structure overnight.
  • FlinBroker | 12 Oct 2012, 01:30 PM Agree 0
    Clients want us to be lawyers, Insurers want us to be stock brokers, Brokers want to earn a living .
    This is totally hypocritical, coming from someone who did not reveal their conflict of interest nor commission .
    If your going to be on the high horse make sure your not really a small donkey yourself
  • Robert Cooper | 12 Oct 2012, 01:41 PM Agree 0
    Insurance Brokers are meant to be independent of Insurance Companies, but they are there to represent the client and act in the client's best interests. They will always be advising the client, not just flogging them a product.
    While that is a point of difference between us and call centres who offer no advice, the FSRA has effectively allowed insurance companies not to have to give any advice at all directly to their clients and accordingly all the commission brokers earn is the additional cost insurers would have to pay if they were forced to provide personal advice themselves. Insurance Brokers do it for them. Therefore providing there is the same price for the Insurance product, that you would pay either direct or through a Broker, then the client can see the benefit in using a Broker. Our worry as Brokers is that some insurers are now charging lower premiums for clients to deal direct with them and they are all avoiding giving personal advice to assist the consumer to save on costs because they can get away with it. We as Brokers are fully accountable. That should be the real issue.
  • Anne Clements | 12 Oct 2012, 05:55 PM Agree 0
    I totally agree with all the comments from brokers already submitted. The vast majority of brokers are extremely dedicated, hard working, honest and definately not making a fortune. I wonder if Max Franchitto would like to disclose his hourly rate versus the average broker to see how it compares! The comment 'independant' is a little harsh, seeing that we are unable to use this title ourselves, or we will receive a harsh slap over the wrist. Get your facts right Max before making your insulting comments to our industry.
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