Brokers offered commercial insurance portal

Brokers offered commercial insurance portal

Brokers offered commercial insurance portal

Brokers placing commercial business insurance will soon have access to an online platform where they can ‘bid’ on business from new clients.

The website – premiumfox.com.au – will allow businesses and individuals seeking insurance to place their specific details online and submit these to a centralised pool of brokers who then respond in 48 hours with insurance quotes. Potential clients are offered the three lowest quotes from brokers to choose from or remain with their current insurer.

PremiumFox.com.au chief executive Boon How says brokers and insurers will continue to be paid by the insured with brokers paying a referral fee to the bidding platform in the event the broker secures the new business.

How says the website will offer business, tradesperson, commercial vehicle, property, strata and not-for-profit insurance while policies which pass set limits will trigger a physical assessment by the broker or the insurer.

 “This is not a website to cut out brokers and is not like many of those in the retail space. It can only work when brokers participate and provide quotes for those seeking insurance,” How says.

“We actually built the site with brokers in mind and see it as a way for them to acquire new clients and to educate and communicate to them that insurance is not a commodity. We hope to also create forums to provide information and tips about insurance and how those insured can mitigate risk.”

The website will not deal in financial products nor give financial advice but brokers who quote through the site will be either authorised representatives of an Australian Financial Services License or hold their own license.

While the service is not live yet with How stating it will become active in mid-March some brokers have already signed up for the service with PremiumFox looking at other brokers “who are fanatical about client service and are generally competitive, Australia-wide.”

How says the platform was developed after he and his business partners struggled to find an easier way to investigate commercial property and business insurance.

“We found not enough attention was being paid to commercial insurance with all the focus on the retail insurance space and being business owners seeking insurance we decided to build this site after not finding anything like it in the market,” How says.

19 Comments
  • Andrew 18/02/2013 12:10:09 PM
    Great.... another non-insurance industry person thinking they're doing us a favour.

    Firstly, you want the consumer to not see insurance as a 'commodity' - but you are working on the platform of providing the three 'cheapest quotes'.

    Secondly, you want to educate the consumer about risk and insurance solutions - but you create a purely price-driven mechanism for business owners to make their decision from.

    When will ASIC stop these cowboys from ruining the good work that the likes of Steadfast and NIBA are doing in raising the profile of brokers as 'risk advisors' rather than pricing houses?

    I know of no other business sector where an unqualified person can create such a product/environment without significant experience and consultation with industry bodies.... but somehow ASIC seem to let it all slide bye........
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  • Boon 18/02/2013 12:21:03 PM
    Hi Andrew,

    Thanks for your great comments.

    We have been commercial insurance clients/buyers for the past 15 years (commercial property and business) for our own group.

    I am also an ex-ASIC employee and hold RG146 Tier 1 (insurance broking).

    What you see at premiumfox.com.au is version 1 of our website.

    With feedback from passionate insiders like you and our aims of a forum to enhance educating and communicating between clients and brokers - you will notice our future website to be a better version for these purposes.

    Thank you again for your feedback Andrew and it is these views we are looking to note.
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  • Paul Murphy 18/02/2013 12:25:53 PM
    Andrew is spot on. The issue has always been about the client receiving advice from a suitably qualified Adviser. The FSR regime commenced with ASIC demanding " know your client" before giving advice. Fair enough every broker must do this. However at the same time the FSR regime opened the door for insurers to provide products without giving advice, provided a GAW was given to the client. This is the elephant in the room that ASIC and the Federal Government ignores.Brokers play on an unequal field. We are required to hold PI undergo professional training etc and always have good reason for advice given. Insurers and commodity platforms don't have to do any of the above. Clearly given the Ombudsman report Insurers are failing given the numbers of complaints. Brokers continue to have minuscule numbers of complaints from clients. Insurers have been very successful in getting away with commercial murder for years flogging commercial policies with no needs analysis and placing all responsibility on the gullible public. It all quite appalling .
    Paul Murphy Australian Risk Advisers.
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