The major providers of professional education to insurance brokers have been challenged to ensure brokers are properly equipped to prosper in an increasingly competitive environment.

AIMS GM Martin McAvenna told the joint venture’s conference in Barcelona last week that insurance brokers face emerging competition from global companies, and asked: “Why are there two professional organisations… competing in this space
in the Australian market?”

The two organisations are the National Insurance Brokers Association and the Australian and New Zealand Institute of Insurance and Finance, which both produce broker education programs. 

He says brokers will face new forms of competition from “disruptors” – global companies with the technology and financial ability to simplify insurance products and their distribution.

“In their present form
the divergent formats for industry education will not be enough
for the age of disruption,” Mr McAvenna said.

“Indeed, are they adequate now
for those who are starting out on their insurance careers? [The present arrangement] is not efficient; it is certainly duplicative; it is not consistent.”

Calling on the industry to devise new programs while “taking the best of both groups”, he says outside expertise could be brought in to “take a different perspective” and devise new solutions.

“Our two shareholders, Austbrokers and IBNA,
are deeply engaged in systems and process projects designed to lift the bar for client service,
and of course, reduce frictional costs,” Mr McAvenna said.

“The cumulative effect of all this change will, I suggest, reshape the broking business model.

“If our industry makes the educational choice to be broader and more rigorous and more than vocational training, we can shape the outcome.

“If we react rather than choose,
the outcome will be shaped for us by our customers and the markets.”

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