Insurance brokers need to stave off the competition
Australian insurance brokers are aware of the values of advertising, but they also maintain a stranglehold on commercial lines, according to NIBA CEO Noel Pettersen.
He was responding to a report from Canada calling on brokers to spend more on advertising if they are going to beat the competition from direct insurers.
Randy Carroll, President and CEO of the Insurance Brokers Association of Ontario, told delegates at a recent insurance forum that brokers are losing business as more clients choose to buy their insurance online.
He says Ontario brokers are spending 2.1% of revenue dollars on advertising when they should be spending a minimum of 4%.
Mr Pettersen told insuranceNEWS.com.au that Australian brokers traditionally don’t spend a lot of money on advertising.
“Their marketing budget is limited and they are very centred on their potential client base,” he said. “As an industry, however, we see the value in promoting insurance broking. Over the years we have had campaigns, and we’re always looking at new ways of getting that message out.”
But Mr Pettersen says insurance brokers command up to 90% of the commercial market and that figure hasn’t changed over the past 10 to 20 years, suggesting brokers are in fact doing very well.
“Those who use a broker continue to use a broker,” he said.
He was responding to a report from Canada calling on brokers to spend more on advertising if they are going to beat the competition from direct insurers.
Randy Carroll, President and CEO of the Insurance Brokers Association of Ontario, told delegates at a recent insurance forum that brokers are losing business as more clients choose to buy their insurance online.
He says Ontario brokers are spending 2.1% of revenue dollars on advertising when they should be spending a minimum of 4%.
Mr Pettersen told insuranceNEWS.com.au that Australian brokers traditionally don’t spend a lot of money on advertising.
“Their marketing budget is limited and they are very centred on their potential client base,” he said. “As an industry, however, we see the value in promoting insurance broking. Over the years we have had campaigns, and we’re always looking at new ways of getting that message out.”
But Mr Pettersen says insurance brokers command up to 90% of the commercial market and that figure hasn’t changed over the past 10 to 20 years, suggesting brokers are in fact doing very well.
“Those who use a broker continue to use a broker,” he said.