Brokers are doing much better in the market than had been expected a few years ago, says National Insurance Brokers Association (NIBA) CEO Noel Pettersen. Speaking at breakfast briefing meetings with members and potential members around the country, he is making the point that brokers’ share of the commercial insurance market distribution has actually risen 10% in a couple of years to 86%.

“The underwriters are changing their approach to the market to take into account the obvious preference for business to have their insurance delivered through brokers,” Mr Pettersen said last week. “It’s an excellent result, and one I’m delighted to bring to our members.”

He said the major issues affecting insurance brokers include the lack of competition in the Australian market, the Financial Services Reform Act (FSRA), the industry’s image, liability insurance problems and the situation regarding unauthorised foreign insurers.

Mr Pettersen encouraged brokers to have their FSR licence applications ready well before the end of the year to avoid processing problems. Reminding members of NIBA’s ongoing FSRA workshops designed to help them understand the licensing issues, he said the change to the FSRA will result in better risk management techniques, strict compliance processes and a higher standard of financial services delivery”.