The 2023 Insurance News Wellness Survey received rare insight from brokers who told us in raw terms of current conditions in the insurance broking sector. 

Here we share those opinions specific to broking, and full survey findings are in the October Insurance News Magazine. 

Here is one broker’s reply that typifies many responses when we asked what you would change about insurance broking: 

“Hard market, insurers not underwriting like they used to resulting in much more declines of risk, premium increases, lack of skilled or experienced staff to reduce going back and forth.” 

Another representative comment said “less skill – more reliance on 'the computer says'. The change in how conversations occur – more email, less pick up the phone and talk it through. Resistance by underwriters to accommodate brokers and look outside the box.” 

One was struggling with “insurers changing their guidelines annually, which requires remarketing of accounts annually”. A different reply simply commented “expected to do more with less people”.  

This response also stood out: “Red tape, insurers changing goal posts, code of conduct being tailored to larger brokerages – the poor little guys have to comply with crap that doesn’t apply to them. Clients not fully understanding our role, insurers using claims staff and assessors across different brands that do not fully understand the broking relationship with clients.” 

There were also plenty of positive comments: 

“I commenced working as a cadet insurance broker in 1981 and I love consulting major clients and negotiating appropriate insurance terms and conditions for clients with insurers in Australia and other countries,” said one broker. 

“Insurance is a complex industry and as brokers our service and representation of consumers is second to none,” said another. 

Here is a small selection of the swag of comments we received encapsulating what you told us about the broking profession in 2023. Sincerest thanks to those who participated: 

‘CONTINUAL SELL OF BAD NEWS’ 

• Premiums are increasing so dramatically making our job so much harder, having to remarket so many renewals each month  
• Premiums have increased, especially for homeowners. Really hard to explain  
• Hard market conditions mean having to continually "sell" bad news stories to longevity clients who are still doing it tough post covid 
• With the premium increases and insurers pulling out of the market there is a constant need for remarketing 
• Insurers take a long time to make decisions and have increased the cost of premiums. It’s harder for brokers to be competitive with pricing    
• Inability to place cover in hard market – therefore letting my clients down 
• Ongoing price hikes are difficult to explain when clients haven't made any claims 

‘A DISTINCT LACK OF UNDERWRITING FLEXIBILITY’ 

• Insurers remain ultra conservative 
• Computerisation of systems has taken away the personal relationships with underwriters and the ability to discuss a risk that does not fit in a box   
• I do get frustrated with underwriting. There’s a lack of willingness to do a deal. 
• After 21 years in the industry, I have seen insurer's attitude to risk and their willingness to assist decline considerably in the last 24 months. There are pockets of good underwriters out there, but overall it's been pretty poor  
• There is a distinct lack of flexibility when it comes to underwriting  
• Lack of responsibility given to underwriters and willingness to write business and discuss options. Underwriting Agencies are picking up the "slack" in this regard 
• There’s an inability to assist clients whose activities don't fit inside an electronic platform's criteria. Insurers invariably find it easier to decline than investigate.  
• No one seems to be able to make a decision. There is lack of experience with the majority of underwriters I deal with. 
• Underwriters have no sense of urgency or fast turnaround times anymore 
• It’s all data and computer driven systems – so if you risk doesn't fit the “hole” you find it hard to find someone willing to underwrite 
• One insurer will not cover an occupation, but will under a binder with another agency you do not have access to. Same purse different rules.  
• Being based in WA, all referred – very frustrating 
• Brokers constantly have to react to underwriters moving the goal posts with no consideration for any of the other stakeholders in the industry 
• The imbalance of the industry now is so heavily in favour of the underwriters. They control rates, terms and conditions and now pick and choose what they will and won't insure without any questions, accountability or justification. They are answerable to no one 
•  Underwriting on a bulk basis not individual risks. Slow turnaround time of underwriters and a lack of experience and common sense 
•  Unacceptable turnaround times on underwriting and claims responses increases pressure, having to do more work for the one client 
• Where five years ago it was ‘How do we pay this claim?, now it appears to be ‘Deny if it’s in that grey area.’ 

‘OUR CUSTOMERS ARE SUFFERING’ 

• Customer service levels have definitely declined  
• I have been in insurance for 29 years and have never seen service levels so poor. The lack of care is astounding 
• There are many claims that are being looked after by too many people, no decisions being made and our customers are suffering 
• Lack of service by insurers to brokerages which comes down to no staff. The industry appears to believe technology is the answer 
• Technology makes work harder  
• All insurers now have their own IT platforms leaving brokers to navigate up to 30 different quoting systems  
• Lack of service from some insurers. A couple of majors have really improved while some are still really bad  
• In a regional area there are sliding market options, constant reduction in service by insurers and access to decision makers  
• You use all your effort and energy to train younger staff only to see them go to another broker for more money 
• I don't like brokers who try and poach accounts that brokers have held for many, many years. 
• I do not appreciate where insurance broking is heading: Too big a reliance on IT, leaving younger brokers with very little human interaction and limited risk knowledge. They are not getting the mentorship and knowledge passed down from their seniors.