Perth brokers Oracle Group and Centro Chambers and Gold Coast-based Agile Insurance Advice have agreed a three-way merger to create a national broking business.

From January 31 the company will operate as the Oracle Group nationally but will continue to use Agile’s brand in Queensland, NSW and Victoria. Oracle also has an office in Darwin.

The three companies are members of the IBNA cluster group.

Oracle Group director Nathan McKeon says the merger will enhance profitability by sharing operations, create more opportunities to work with mainstream and specialist insurers, and better utilise staff.

“We see it as a coming-together of three similar entities, and by merging the businesses we will be able to make major cost savings,” he told insuranceNEWS.com.au.

He says it “will also give us a bit more pull with insurers. Insurers will take a bit more notice of us with three businesses coming together as one.”

The new company, which will move to larger premises in the Perth suburb of Balcatta, expects to generate $30 million in premiums in the first year.

The merger also allows Oracle Group to increase its authorised representative (AR) network.

“The Oracle model offers brokers the option to move from ARs… to full partners in the company should they wish to become involved in the management and direction of the brokerage,” Mr McKeon said.

Agile Executive Director – and IBNA board member – Matthew Denehy anticipates renewed interest in ARs.

“ARs were shunned early in their existence, but the life insurance industry has been working this model successfully for more than a decade,” Mr Denehy said.

“It was only a matter of time before the general industry followed suit. The next generation cannot afford to buy into [Australian financial services] licensees, so the obvious answer is to start your own mini-business as an AR, and the Oracle Group can assist with that option.”

Centro Chambers MD Graeme Dorrell – a 40-year industry veteran – will be MD of the new entity.