The value that insurance brokers bring to their clients has been identified in a new report.
While our much-valued, long-term JMD Ross clients are well versed with the added value delivered by our firm, the insurance broking industry more broadly has long been challenged in demonstrating that the value delivered by brokers extends well beyond sourcing cover at competitive pricing.
In advance of an upcoming review of general insurance broker remuneration, as recommended by the Hayne royal commission, a new report was commissioned for the National Insurance Brokers Association (NIBA).
Unprecedented in its scope and level of detail, the 66-page report, prepared by Deloitte Access Economics partner John O’Mahony, was praised by NIBA CEO Dallas Booth for demonstrating that insurance brokers “offer real support and, most importantly, genuinely valuable advice in the areas of risk, risk management, and risk financing. Something not done by other professionals”.
The report’s key findings include:
• In 2018/19, insurance broking contributed nearly $2.6 billion in gross value to the Australian economy and directly employed 15,000 full-time equivalent workers.
• Brokers encourage greater competition in insurance, with the average NIBA broker offering products across 10 different insurers.
• Broking reduces underinsurance, with 45% of new clients being underinsured before engaging a broker.
• Brokers save each client an average of 11 hours annually, which equates to more than $230 million in time savings for business customers.
• Brokers save each insurer an average of 3.3 hours, which equates to 1,380 full time staff each year.
• Brokers enhance distribution and client reach with 38% of broker premiums written for clients outside Australia’s capital cities.
• Brokers support product innovation: 13% of a broker’s policies sold represent new market opportunities (on average).
Former Willis Group CEO Joseph Plumeri once famously said: “Insurance is the DNA of capitalism.” As broking practitioners for more than 40 years, JMD Ross proudly supports the Deloitte report that categorically recognises the added value we strive to deliver to all our clients. You can read the full report here.
To discuss your risk management and insurance requirements, please contact:
• John Davaine T 02 9478 0835 E email@example.com
• John G Duncan T 02 9478 0814 E firstname.lastname@example.org
• Tim Ross T 02 9478 0808 E email@example.com