The decision last week by Insurance Brokers Network Australia (IBNA) to accept iSelect as a member has raised concerns in the industry, with insurers and brokers fearing the move could assist online comparators to increase their influence.

But IBNA Chairman Gary Gribbin says the industry “needs to understand that a ‘one size fits all’ approach is no longer appropriate”.

Comparator sites have struggled to gain traction in the market against unco-operative insurers and wary brokers who say the online companies encourage customers to focus on the price of policies rather than their fitness for purpose.

As reported in a Breaking News bulletin last week, iSelect joined the country’s largest independent broker cluster group in the same week it announced a partnership with Zurich, which has made its commercial motor policies available on the platform.

One broker contacted insuranceNEWS.com.au to say IBNA’s acceptance of iSelect is “a disgrace and embarrassment to the insurance broking industry”.

But Mr Gribbin says iSelect has a reputation for providing excellent customer service, and the industry must “explore other ways of delivering our valued services to our customers”.

“Although its business model is seen to be different to our other members, iSelect is equally as committed to the key principle of broking, which is to provide the very best solution for the customer,” he said.

iSelect says it offers much more than a comparison website, pointing out that trained advisers talk to the majority of consumers who use its site.

It holds an Australian financial services licence and all its general insurance advisers meet the qualification standards.

National Insurance Brokers Association (NIBA) CEO Dallas Booth told insuranceNEWS.com.au he has no objection to iSelect in principle, if customers’ needs are properly served.

“The world is changing very fast, and one of the things NIBA has stood for is innovation and competition,” he said.

“I am not fully familiar with iSelect, but it must make sure it is genuinely providing solutions that are truly in its customers’ best interests. I know many underwriters are not included [on their site].

“It has the appearance of an aggregator site. They tend to operate on price, but if it is giving advice, and its people are being properly trained, then we can’t object to that.”

IBNA works closely with Austbrokers under the AIMS joint venture, but members retain their independence.

iSelect MD and CEO Scott Wilson says the collaboration may help overcome “industry misconceptions” about the listed company’s business model.

“We understand that online-only aggregators, which focus purely on price, do not take varying customer needs into consideration,” he said. “Car and home insurance policies are complex financial products that need explanation and advice when being purchased.”