Elders Insurance has launched an Urban Agents model in metropolitan New South Wales, moving a franchise-based distribution structure into a segment of the Australian insurance market historically dominated by direct-to-consumer insurers – and opening a structured ownership pathway for experienced insurance professionals backed by QBE’s underwriting capacity. The announcement marks the first time Elders has formally targeted metropolitan areas as a growth market, extending a model that has operated across more than 200 rural and regional locations for over a century.
In the year to June 30, 2025, $35.6 billion in gross written premiums passed through the intermediated channel out of a total general insurance market valued at $77.9 billion, with the broker-placed segment growing at a compound annual rate of 6.1% over the prior decade – outpacing the wider market’s 5.7% CAGR across the same period, according to the National Insurance Brokers Association’s (NIBA) Data to Direction: Insights from the General Insurance Broking Profession.
That channel growth, however, is concentrated in commercial lines and non-metropolitan markets. Axco’s analysis of Australian insurance distribution finds that while commercial lines are predominantly broker-led, personal lines remain dominated by direct-to-consumer brands owned by major banking conglomerates. IAG – whose brands include NRMA Insurance, CGU, and SGIO – and Suncorp, whose brands include AAMI and GIO, are the two largest general insurers in Australia by gross written premium, with IAG completing its $855 million acquisition of 90% of RACQ Insurance in 2025, further consolidating its position in direct personal lines distribution.
NIBA’s own data shows that 38% of broker-written premiums are for clients located outside Australia’s capital cities. That figure means the large majority of intermediated business originates in metropolitan areas – but through commercial and business lines, not the personal lines segment where direct insurers hold their strongest position. Elders is targeting that gap with a relationship-led, locally operated franchise model.
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The Urban Agents model is open to brokers, underwriters, and claims specialists – positioning it as a business ownership pathway for experienced professionals rather than a graduate entry point Agents become authorised representatives of Elders Insurance (Underwriting Agency) Pty Ltd, which holds its own Australian Financial Services Licence (AFSL) and distributes Elders Insurance products on behalf of QBE Insurance (Australia) Ltd, the product issuer.
The detailed financial terms for the Urban Agents model – including fees, revenue splits, and minimum capital requirements – are not publicly disclosed and sit behind Elders’ registration process. However, prospective franchisees have a legal right to receive that information before signing anything. Under Australia’s new Franchising Code of Conduct, which took effect on April 1, 2025, franchisors must provide a disclosure document covering key financial information – and that document must not mislead. A franchisor must give a prospective franchisee a copy of the disclosure document at least 14 days before the franchise agreement is signed or any non-refundable payment is made. Franchisors must also give franchisees a reasonable opportunity to make a return on their investment.
In practice, this means that any professional who registers interest with Elders is entitled to receive substantive financial detail – including capital expenditure expectations and cost structures – well before any commitment is required. Dale Gleeson (pictured), general manager of Elders Insurance, described the model’s proposition: “For insurance professionals ready to take the next step into business ownership, this is a compelling opportunity. We provide our agents with national marketing to help drive leads, comprehensive training, and operational support when it matters most. With access to tools and solutions that harness our scale – and supported by two trusted Australian brands – it’s a great business to be part of.”
Supporting the model operationally is The NEST – the National Elders Service Team – based in Parramatta, Sydney. The centralised team handles quoting, policy changes, renewals, debtor management, and complex risk referrals and provides training, business continuity, and overflow capacity during catastrophic events. Elders also cites integrated systems and automation, national marketing campaigns, and local marketing support as components of the model, reducing administrative burden on agents.
The Urban Agents model explicitly targets former insurance professionals seeking re-entry – a detail that takes on additional weight given current workforce data. NIBA’s Data to Direction report found brokers aged 18 to 29 represent the same share of the profession as those aged 60 and over – both at 11% – with the two largest cohorts being brokers aged 40 to 49 at 31% and 30 to 39 at 28%, and a workforce median age of 44. With 85% of brokerages surveyed reporting growth or opportunistic growth strategies, demand for entry-level and re-entry talent is structural as much as cyclical. A franchise ownership model with centralised operational support addresses the re-entry barrier more directly than employment-based pathways, which typically require professionals to rebuild a client book within an existing firm rather than their own.
The authorised representative structure carries obligations professionals should factor into any evaluation. Authorised representatives can provide only the financial services the appointing licensee is authorised to provide, and both the licensee and the representative must maintain ongoing compliance with all regulatory obligations. Licensees bear legal liability for representatives’ actions – failure to monitor compliance can result in civil penalties or suspension of the AFSL. Those obligations sit with Elders Insurance as licensee. The NEST’s training and business continuity functions appear designed, in part, to manage that compliance exposure across the network. The NSW rollout is the first phase of Elders’ metropolitan expansion. No timeline for extending the model beyond New South Wales was included in the announcement.
