Members of Insight Insurance Brokers Association have voted to change from a not-for-profit group to a limited liability company, with all the members becoming shareholders.

A special meeting of members in Melbourne on Friday saw 100% vote in favour of the change, Executive Officer Bill Friend told insuranceNEWS.com.au.

All shareholders of the new company, to be called Insight Australia Group Limited, will retain their own corporate identities and control of their businesses following its official launch on July 1.

The not-for-profit association structure will operate in run-off mode alongside the new company for about a year.

“The discussion leading up to the decision centred very much on the members’ desire to retain their own independence,” Mr Friend said. “Insight will continue to concentrate on such services as education and facilities to members but now we can consider developing new options as well.”

“Each shareholder will have one vote, irrespective of the size of their company or how long they have been part of the group.”

The shareholders will be able to share in the profits the company makes from services and agreements, and dividends will be set at a minimum 30% of the annual profit when a dividend is declared.

Mr Friend says the present directors will remain in charge for the first 12 months, although the size and composition of the board will change over time.

“We have enshrined in the new constitution that the majority of board members must be working brokers,” he said.

The association’s president, Queensland broker Danny Gumm, will chair the board during the transition period. Asked if an independent chairman could be appointed to the new company, Mr Friend said: “That decision will be made later in the year.”

A plan for the future growth of Insight and a share distribution plan for the new company were also agreed at the Friday members’ meeting.

Insight was originally the Regional Insurance Brokers Association, and represented the interests of Victorian country brokers only.

Its rapid expansion began after Mr Friend was appointed Executive Officer in September 2006. It changed its name in December 2007, growing from 15 members in 26 locations to 43 brokerages and five independent authorised representative companies in 195 locations across Australia today.

“We’ve outgrown the not-for-profit structure,” Mr Friend told insuranceNEWS.com.au. “This move gives Insight members the opportunity to own the company and benefit from any profits.

“Our present services and the relationships we have with insurers, underwriting agencies and premium funders won’t change. They will just continue to grow.”