New Zealand insurance brokers meeting in Fiji last week for the Insurance Brokers Association of New Zealand conference (see items above) received some hefty words of advice from Aon Risk Services non-executive Chairman Robert Harrison: look after your client’s needs or you’ll risk losing them when the market softens.

Mr Harrison, a former National Insurance Brokers Association and Australian Insurance Institute President and Aon CEO, says the industry will consolidate further and some clients in a soft market “will be questioning why they need a broker at all”.

“Why do they need a broker when there are only five underwriters?” Harrison said. “It’s a question they’re entitled to ask.”

He says NZ brokers are finding it increasingly hard to keep their clients satisfied because it’s costing more to get the same level of cover. Brokers need to differentiate themselves by specialising in one particular area of business.

“Brokers will have to work harder and smarter for the profits,” he said. “They will always remain important, but they must add value for their clients and not just see themselves as part of the food chain.”