As in most areas of life, the only constant in the insurance industry is change. Trends come and go, businesses expand or expire, and new products emerge while others fade away. Yet the need for insurance remains – and there will always be brokerages that thrive in the shifting circumstances.
That’s part of the reason Insurance Business works to identify the Top 10 Brokerages every year. Which brokerages are leading the industry? Where are new innovations being made and trends being established? Which brokerages should be looked to for best practice?
Accordingly, IB aims to ensure brokerages across the spectrum are showcased. Revenue alone doesn’t permit entry to the list, nor does sheer number of brokers. Rather, IB looks at a more qualitative set of data to truly find the top brokerages in the country.
Given the ongoing fluctuations in the insurance market, we also felt it was time to look back at past instalments of the Top 10 Brokerages to see how the market has changed over the years. Some trends continue from last year; the number of policies written has dropped dramatically since 2013. Growth has fluctuated considerably since the feature was inaugurated, though 2019 marked a slight upward creep. It’s good to see that brokerages are still expanding, and it’s a statistic that will be viewed with continuing interest over the coming years.
Most areas IB looked at remain an indication of the strength and talent of the Australian insurance industry. Client retention remains high from year to year. Revenue has also risen overall – while new revenue took a dip, revenue per broker soared. Clients might not be lodging as many new policies, but they appear to be willing to pay a premium with their increased selectiveness.
Looking to 2020 and beyond, it’s readily apparent that Australian brokerages will face a number of significant challenges. Brokers across the country have noticed a general hardening of the Australian insurance market, which has been driven by numerous factors. The royal commission’s shadow still looms over the industry, and the full effects are yet to be seen. The hard market is also connected to wider economic circumstances, legislation, shifting markets and increased exposures in areas that weren’t necessarily anticipated.
But this doesn’t mean it’s a time of doom and gloom – rather, brokers should be looking for new ways to innovate across the market and seeking new opportunities among their clients. The time is right for diversification, and many brokerages around the country are pursuing new opportunities. All of the brokerages featured on the following pages have weathered change and emerged stronger for it – they can provide both examples and inspiration.
Congratulations again to all of the brokerages that made this year’s Top 10 – your achievements should be a source of considerable pride, both now and into the future.