Brokers have been urged to meet with their federal members of parliament and state senators to lift awareness about the profession and build relationships as a government review of financial advice and remuneration begins.

The National Insurance Brokers Association (NIBA) has prepared an advocacy pack with information and is encouraging members to introduce themselves to local politicians, no matter which party they represent.

“We need to collectively make sure people understand the value of brokers,” CEO Phil Kewin told the NIBA convention in Adelaide.

“You just want them to know what you do, how many people you employ in their electorate, how many clients you serve in their electorate. It is really important for them to know that.”

Mr Kewin says people outside the industry are often unaware of the breadth of clients that brokers serve and their role, and getting in touch with politicians provides an important point of connection before they get involved in decision making.

The Federal Government has released draft terms of reference for the Quality of Advice review, which will encompass “the remaining exemptions to the ban on conflicted remuneration in life and general insurance”. A report is set to be delivered by December 16.

NIBA President Dianne Phelan told the conference that the advice review’s broad terms of reference would encompass the wider general insurance remuneration system.

“I know the insurers have already been contacted by Treasury to provide information and no doubt at some stage information will be sought from brokers,” she said. “The more we can co-operate and collaborate the better.”

NIBA continues to be in constant contact with insurers, the Insurance Council, government and regulators in relation to the review, she says.

In a submission to Treasury, NIBA says it has identified no significant issues with the draft terms of reference, which provide for a holistic review of the financial advice industry.

“Previous inquiries into various aspects of the provision of financial advice have neglected to consider issues relating to the provision of insurance and risk management advice,” the submission says.

“Given the increase in the rate of underinsurance in many parts of Australia and the difficulties consumers face when trying to obtain appropriate insurance, it is vital that risk advice is considered under the general umbrella of Financial Advice.”

NIBA also calls for coordination between the Quality of Advice review and an Australian Law Reform Commission inquiry into corporations and financial services regulation.

The submission suggests the Treasury review should lead policy discussions on advice-related issues raised by the ALRC.