Specialisation is likely to become more important as brokers work with clients to manage and minimise risks, particularly in challenging areas, National Insurance Brokers Association (NIBA) President Dianne Phelan says.

Ms Phelan says insights emerging from the Business Advisory Council, set up by the Insurance Council of Australia to look at affordability and availability issues in commercial cover, include the importance of continuing to increase expertise to assist clients with solutions.

“In particular, a greater focus on risk management will be required so we can effectively work with our clients on ways to manage and minimise their risk when insurance is not available or is not viable when considering cost versus cover,” she said.

The days of an insurance broker being able to be “everything to everybody” are probably over, Ms Phelan told the NIBA summit in Sydney last week.

“With the need for greater expertise and greater risk management skills, we need to realise that specialisation areas within a brokerage may often make sense, allowing each of us to stay in our lane and not delve into areas where we have little knowledge,” she said.

“Specialisation is also likely to assist with keeping in touch with evolving trends within that business sector, ensuring we are at the forefront of change and can continue to educate our clients.”

Ms Phelan also encouraged brokers to use new technologies including artificial intelligence (AI), to improve back-office efficiencies, provision of information to clients and in understanding a client’s business.

“If we don’t evolve as the world and AI evolve, we will cease to be relevant in our clients’ eyes,” she said.

Ms Phelan told the summit that complaints against brokers remain low, the sector is continuing to increase its footprint within the insurance landscape, and the new code of practice is an important document in promoting the professionalism of brokers.

The code, which comes into effect from the start of next month, is a “living document” and changes can be made when it makes sense to do so, or if future regulatory shifts require adjustments, she said.

“With the world changing at an ever-increasing rate, we need to realise that our code will also have to change,” she said.

NIBA CEO Phil Kewin also told the summit that brokers and insurers are planning to push for the repeal of the NSW Emergency Services Levy (ESL) ahead of the state election in March.

“It is inequitable funding. It doesn’t work and it is driving up the cost of insurance premiums unnecessarily,” he said.

NSW is the only mainland state funding emergency services through an insurance levy after it in 2017 abandoned a move to replace the ESL with a broad-based property tax.