The general insurance industry will see more mergers and joint ventures between brokers and financial planning practices over the next few years, Insurance Advisernet Australia (IAA) MD Adrian Kitchin says. 

He says the two intermediary branches are “two sides of the same coin”, and there are many advantages in offering a wide range of services from the same office.

In May IAA’s largest corporate authorised representative, Perth-based Gibbscorp, created a joint venture with NSW financial planning group Total Capital Management (TCM).

Former Willis WA GM Bryan Leibbrandt has joined as Group MD. He is the brother of TCM founder Craig Leibbrandt.

He will be based in Perth and will lead the WA and NSW insurance broking team.

Bryan Leibbrandt replaces Peter Gibbs, who has become Group Executive Chairman.

TCM is based in Newcastle, and former OAMPS senior manager Adam Hines will return to work in his home town as GM NSW. 

Craig Leibbrandt says TCM has always believed “that as an industry and as a firm, we need to move away from the traditional product and distribution approach and concentrate more on our clients’ total financial needs, whether they be financial planning, accounting, mortgages or general insurance.”

Mr Kitchin says IAA already has a successful financial services arm, and the industry may see the trend for mergers between the two intermediary groups accelerate over the next few years as new challenges arise in financial services and general insurance distribution.

“It’s not all that widespread at present, but I think we’ll see more brokers looking at it,” he told insuranceNEWS.com.au. “If it isn’t a direct joint venture, then brokers should be working out referral arrangements with financial planners, and vice-versa.

“As long as everyone has the right structures and controls in place, it’s a logical way to develop new business.”