Amid increasing competition in Australia’s general insurance sector, the National Insurance Brokers Association (NIBA) has reiterated the critical function brokers serve in helping clients manage complex and evolving risks.
Figures from FY2023-24 indicated that insurance brokers placed more than $70 billion in general insurance premiums – representing over half of the total general insurance gross written premiums (GWP).
NIBA said this milestone underscores brokers’ longstanding presence in the market and their integral role in facilitating insurance coverage tailored to diverse consumer and business needs. It added that this trend has steadily expanded over the past decade, aligning with broader shifts in market dynamics and client expectations.
NIBA CEO Richard Klipin (pictured) said brokers are becoming increasingly vital as the insurance landscape becomes more fragmented and the nature of risk continues to shift.
“As the world becomes more complex and consumer expectations shift, the need for trusted, expert guidance has never been more important,” he said.
He pointed to recent events such as severe flooding, bushfires, and tropical cyclones as examples of where brokers have worked closely with affected communities to ensure access to claims support and coverage continuity.
NIBA president Nick Cook also noted that the prevalence of underinsurance and the rising cost of climate-related exposures highlight the broker’s role in ensuring that coverage is both adequate and relevant.
“As trusted advisers, brokers help clients to identify, manage and mitigate their exposures, ensuring the right and important levels of cover are in place, as well as offering support and guidance throughout the claims journey, ensuring peace of mind for their clients,” he said.
Intense flooding recently hit several areas in New South Wales, including the Mid North Coast and Hunter regions.
The natural disaster led to mass evacuations, fatalities, and widespread insurance claims, renewing calls for broker engagement during emergencies.
Wayne Egelton, NIBA’s national partnerships manager, recounted the situation in South West Rocks, where floodwaters severed access and disrupted everyday life.
“The coastal township [South West Rocks] we were staying at became totally isolated very quickly. All roads were flooded. By Wednesday last week, there was no fresh food available in the town; no bread, milk, fresh fruit, and vegetables, no garbage collections, and most shops and cafes in town closed as they had no basic supplies that make everyday life work,” he said.
Stranded due to the event, Egelton said the situation illustrated the value of preparedness and responsive insurance practices.
“The reality hit home for me when I saw firsthand cows up to their neck in flood water. We are in a comfortable holiday house, but my heart goes out to those who are feeling the full brunt of this weather event and have lost so much,” he said.
The flooding, described by officials as a rare event, resulted in more than 50,000 people being isolated and required hundreds of rescue operations.
NSW Premier Chris Minns confirmed over 765 rescues had taken place as of late May.
Jeremy Thornton, director at Complete Risk Solutions in Taree, said his firm has been managing incoming claims but is also prioritising outreach to clients and the broader community.
“You look back at the 150-year history of this town [Taree], and you can see that there have been floods here in the past. People know that. But this was different and completely unexpected,” he said.
