So far, this year has been one of dramatic change. From the Black Summer bushfires, floods, hail and drought to the unprecedented COVID-19 global pandemic, 2020 has forced brokers to step up to help their clients survive.
In this year’s edition of the Top Brokerages, IB set out to identify the brokerages that are leading their clients and the industry through the pandemic while pioneering new innovations, establishing new trends and setting the standards for best practice for the insurance broking sector. To ensure that all brokerages in the country have a fair shot at being showcased, IB evaluates a qualitative set of data to establish the brokerages that are truly performing at their best. Revenue alone isn’t a golden ticket to the list, nor is sheer number of brokers.
Given the ongoing fluctuations, challenges and unique circumstances currently facing the insurance market, IB once again took a look back at previous instalments of the Top Brokerages to highlight the remarkable changes the industry has experienced over the years. While some areas experienced positive momentum, the hostile environment brought on by COVID-19 has had a significant impact on others. Most notably, revenue has taken a nosedive in 2020 – however, the number of policies written per brokerage has increased year-on-year, emphasising how vital the services brokers provide truly are to the community.
In the coming year, Australian brokerages will undoubtedly face several significant challenges. The hardening market that has been apparent over the past few years is only accelerating due to the catastrophic natural disaster season and the COVID-19 pandemic, both of which have made insurers and underwriters more conservative. The uptick in class actions is also weighing heavily on the industry; many brokers claim they have seen D&O insurance policy prices increase by up to 200%.
While this environment seems to be working against the industry, it’s not all bad news. Many brokers and insurers alike have used the COVID-19 pandemic as an opportunity to reboot tech systems, reconnect with clients, and develop more innovative and valuable policies. The time is ripe for new products and platforms, and many brokerages around the country are pursuing new opportunities to meet demand. Each of the brokerages featured on the following pages has triumphed over year’s tumultuous events and emerged even stronger.