Brokers responding to a Vero survey have nominated natural disasters and negative perceptions of the industry as their biggest concerns.

Sweeney Research conducted the survey between January and March and asked 120 brokers what they saw as the biggest challenges currently impacting the commercial insurance industry.

EGM Intermediated Distribution Andrew Mair says given the disasters encountered at the beginning of the year it is hardly surprising that 23% of brokers named natural disasters as their prime concern.

Another 18% chose negative perceptions of the industry.

“Insurers are pumping billions of dollars into the community and are a major provider of economic stimulus,” Mr Mair said. “$12 million is being spent in Queensland every day by insurers.

“The challenge, though, is to ensure this contribution is understood by the community.”

Another 16% of brokers named underinsurance as the biggest challenge facing the commercial insurance industry; 15% nominated insurance taxes and fees; 7% pricing competition among brokers; 6% the economy; 5% insurers’ risk appetite; 5% industry skills and knowledge; 3% an ageing workforce; and 2% technology to distribute products and services.

Mr Mair says this is the first time Vero had run the survey. “It will be interesting to see how the responses vary over time.”

The major message drawn from the survey by Mr Mair is that the industry needs “to ensure our product and service standards are of excellent quality for our customers. That’s our number one responsibility as insurers and brokers and how we can make a real difference.”