National Insurance Brokers Association CEO Noel Pettersen has been swift to agree with Axa global CEO Henri de Castries, who says the industry needs to stop being a bunch of pessimists and start being realists. The French group’s chief says the industry has restored profitability and should now focus on outstanding service to policyholders.

Last week we reported Mr de Castries’ comment that the industry needn’t fear bancassurance and allfinanz companies that offer insurance-like products alongside banking and funds management.

“The important thing is the relationship with the client, and every distribution channel has its chance to prosper in this regard.”

He said many businesses still want personalised service through intermediaries, but the industry must focus on developing “customer intimacy and quality advice”.

Mr Pettersen told Sunrise Exchange News there are many new insurance products in various distribution channels, but insurers and brokers are integral to financial services.

“Insurance is a complex product,” he said. “Despite the evolution of technology and increasing competition, insurance brokers have added value through risk management, better training, product innovation and finding new ways of streamlining transactions.”

Australian brokers are the main distributors of commercial insurance products, and Mr Pettersen says the challenge now “will be to maintain their hard-won status by delivering quality, trust and value”.