Addressing the theme of the National Insurance Brokers Association (NIBA) Convention “Reimagine – Think Differently”, NIBA President Gary Okely highlighted potential limitations around perceptions of the term “broker”, arguing that the modern intermediary offers a much broader range of risk advisory services to clients. 

“To many, the term broker can reflect more of the placement or insurance transaction, whereas risk adviser has a different meaning,” he told the Convention on the Gold Coast earlier this month. “As insurance advisers, we are providing more and more risk advisory type services.” 

Mr Okely told insuranceNEWS.com.au that there’s a wide spectrum of companies within the sector, from massive multi-nationals to small regional brokers, and he does not believe the industry will abandon the broker term. 

“I don’t think NIBA will ever be called the National Risk Management Advisory Service,” he said. 

“But we need our clients to recognise that we provide more than just an insurance transaction and sell our value as a provider of more than just the insurance protection. Because I believe that we do provide much more than that. 

“Yes, we are a broker, acting on behalf of the client, in that we transact insurance – but our much broader role is more of a business advisory role.” 

Mr Okely says the 2022 Insurance Brokers Code of Practice assists by requiring brokers to set out terms of engagement before acting on a client’s behalf, outlining the scope of services required. 

“In the terms of engagement, today’s broker is required to talk about all other risk related services they will provide. It takes the advisory role and the transactional role and puts it all into those terms of reference. 

“I think that the code is a great code for that purpose, and it’s got some things in it to help us as a professional industry, and really drives more than just the transaction.”