Brokerages building authorised representative (AR) businesses are finding “more than enough” potential recruits from inside the industry, according to Reliance Partners Managing Partner David Wyner.

Speaking at a session on ARs during the National Insurance Brokers Association Convention in Melbourne last week, he said there is no need to look outside the industry.

He says a “new wave of younger people” who have been taught the long-term value of having equity in a business are also showing interest in becoming ARs.

“But the barriers to entry of becoming an AR are difficult from a financial perspective,” he said. “If you don’t have access to funds, you’re going to be doing it tough for the first couple of years while you build your business.

“So you have to be sure that the licensee you hook up with is going to be very supportive and help you, because you need some sort of security in the first couple of years.”

PSC Connect Insurance Brokers MD Tony Walker says his company is sourcing ARs from both insurers and brokerages.

“We are trying to raise the qualifications bar by investing in training for the team,” he said. “We prefer people with five years’ industry experience or a senior underwriter.”

Mr Walker says one emerging trend in insurance is for ARs to work with other financial services specialists.

“It’s a bit of a one-stop shop, with an insurance broker, a finance broker, a lawyer and an accountant working in partnership,” he said.

“It helps each of those members of the group grow their business, while still being independent. And it helps ARs who are starting off from scratch.”

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