Cluster group Austbrokers has opened an office in Melbourne in a bid to expand its operations in time for the new FSRA regime. It’s the first of the three major broker cluster groups to set up a permanent office outside Sydney.

It’s also an indication of the increasingly heated scramble taking place among major intermediary players to secure rapid growth through acquisitions of smaller brokers. As Austbrokers CEO Lach McKeough puts it, his organisation “may be in a position to give smaller insurers a break”.

He said the company, which is aligned to ING, has received a number of inquiries from general insurance brokers who are considering the tough FSRA licensing system and their willingness to keep going it alone.

“The amount of resources, effort and support required by brokers to prepare for licensing is huge, and we’re certainly seeing some brokers who are currently re-evaluating their future,” Mr McKeough said. “It made sense to establish the office to be in a position to talk to those brokers considering their future.”