Business - Insurance broking experts

Introduction

Insurance broking is the act of selling, soliciting or negotiating insurance, in return for compensation. An insurance broker generally works on behalf of their clients (i.e. the party seeking insurance, and not for insurance companies) and should be relied on to provide professional advice in the best interest of the client.

In Australia, insurance brokers are responsible for facilitating about half of all business insurance each year.

At the bottom of this profile are brief details of a number of the experts that Expert Experts represents. Call our office to discuss your requirements and to obtain a recommendation that suits your needs and budget.

Expertise in Action

A broker will help identify individual and business risks in order to decide which risks should be insured. They can organise premium funding i.e. discounts on the premium, delayed payments (cover notes), or payments in instalments otherwise generally unavailable to the public or open market. They can also act on behalf of their client in the event of a claim or dispute.

Brokers can specialise in one specific type of insurance or industry (e.g. marine, aviation, mining, transport etc) or they can deal with many different types.

Experts in insurance broking are aware of the terms and conditions, benefits and exclusions, and costs of a wide range of competing insurance policies.

In legal cases, an expert insurance broker can give an opinion on the appropriate level of cover, the market value of the policy, whether the premium was excessive, and whether the wording of insurance policies was in line with standard industry practice.

In Australia, all insurance brokers are required under the Financial Services Reform Act 2001 to be licensed by ASIC (Australian Securities and Investments Commission). Reputable and experienced insurance brokers in Australia will generally also hold additional qualifications such as a certificate or diploma in financial services which requires the completion of in-depth studies in a specific area, the most common being general insurance or insurance broking.

Within Australia there are also a number of industry bodies that issue professional accreditations to members who comply with best standards of professional practice and integrity and maintain up to date skills and knowledge. The two main accreditations are the ANZIIF CIP (Australian and New Zealand Institute of Insurance and Finance) (Certified Insurance Professional)) Program and NIBA QPIB (National Insurance Brokers Association (Qualified Practicing Insurance Broker)) qualification.

Sample Reports

For some fields of expertise we have some sample sections of de-identified reports. Please contact our office if you are interested in a sample.

Cost

The overall cost of expert opinion depends on the services required. Some of the key factors that affect the cost of advice include:

• The need for a view or inspection of a location
• The quantity of documentary material to be reviewed
• Whether there are reports of other experts to be reviewed and commented on in detail
• Whether there is a need for conferences with the expert either in person or by telephone/Skype

Relevant Articles Insurance broker remuneration arrangements (June 2005)

In November 2004 ASIC commenced a review of the remuneration practices of general insurance brokers to assess brokers’ compliance with their legal obligations, particularly in relation to managing conflicts of interest and disclosing remuneration. As a result of the review, ASIC identified certain brokers where further regulatory work was required.

Insurance brokers (April 2010)

Due to various technological and competitive pressures since the global financial crisis, the role of the insurance broker has evolved from a mere proponent of insurance to that of a value-added business partner for insurers and the insured.

Relevant Cases Naomi Marble & Granite P/L v FAI & All Risks Management P/L [1997] QSC 76

A broker was involved in a disputed compensation payment, that hinged on whether all matters of fact pertaining to the property being insured were disclosed.

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