Claims by the GM of a Royal & SunAlliance subsidiary that “brokers by and large had failed to deliver for small business” have provoked a sharp reaction from NIBA.

Australian Better Business Insurance (ABBi) GM Mike Hooton released a statement last week criticising brokers for allegedly not delivering service to small business – which is the very market his relatively new operation is aiming at. ABBI is part of Australian Alliance, R&SA’s direct operation.

NIBA CEO Noel Pettersen said such comments are disappointing, especially at a time when the industry should be trying to pull together. “There is no question that brokers have been bending over backward to place business for their clients from both small and big businesses backgrounds,” he said. 

“Our staff at NIBA have been flooded with thousands of calls from people wanting broker assistance. We’ve had to put on extra staff and a new hotline to accommodate the demand. Our members manage 90% of the business insurance written in Australia, totalling about $6 billion, and there’s a very good reason for that.”

Mr Hooton’s comments have raised a storm of protest from brokers, many of whom have questioned how R&SA can support them through its Enterprise operation while directly attacking them through another.

One of the less fiery examples is from WA broker Con Manetas: “I would suggest right now as much as two-thirds of business is being rebroked or renegotiated. The best deal does not just mean price; it means understanding your client and providing tailored solutions with a claims service [that is] on the client’s side.

R&SA CEO General Insurance Duncan West, who handles the broker side of the business, could not be contacted this morning for comment.