Discussions through a heads of agreement are continuing between cluster groups IBNA and Austbrokers, but the final model is expected to be different from the original version.

The heads of agreement was entered into in May for six months. It was originally expected to give the companies the potential to create a marketing force of 111 brokers than can tailor products and policy wordings according to client needs.

But CEO Paul Sedgwick told Sunrise Exchange News today the negotiations with Austbrokers have gone a “full turn”, and current thinking is around a model entirely different from the original one.

“The model is different from what we originally discussed but I can’t reveal details until the end of this month,” he said.

IBNA Chairman Graham Watman says in a newsletter to members that the board is exploring ways to increase member returns and create wealth through the inherent volume, position and influence of the group.

He says the board explored various models and engaged in discussions with several parties, culminating in the heads of agreement with Austbrokers.

IBNA members won’t be voting on any proposal at the IBNA AGM next month, but Mr Watman says there will be more opportunities for the proposal to be discussed. “If member support is sufficiently strong, I expect a members’ extraordinary general meeting could be called for late October or early November to vote on the proposal.”

Meanwhile, Former OAMPS Insurance Brokers director Grant Bastin has been appointed to the position of Executive Broker – IBNA Broking. He will also assist Mr Sedgwick with product development.