The Underwriting Agencies Council (UAC) has announced a sponsorship arrangement with Vero, which sees the insurer appointed as a strategic partner.

UAC Chairman Damien Coates declined to reveal the value of the deal, which will give Vero sponsorship rights and speaker slots at UAC events.

He told insuranceNEWS.com.au the funds will be used to help UAC enhance member services such as training and professional development, without the need to impose a levy on members.

As a result of the sponsorship the council has been hold to add an additional professional development day in Melbourne this year, scheduled to be held on August 3. Last year the event was only held in Sydney.

“This year we announced our strategic plan to improve benefits for UAC members, like training and professional development, trade shows and regulatory representation,” Mr Coates said.

“This, of course, requires funding, so we’re very pleased to have the support of Vero and our principal strategic partner, Lloyd’s Australia. Their investment will benefit the entire UAC membership, not just agencies that have relationships with our strategic partners.

“In the case of both Lloyd’s and Vero, they proactively approached UAC,” Mr Coates said. 

He dismissed concerns about conflicts of interest surrounding a sponsorship deal with an insurer that could compete with its members for business.

“All UAC members are potentially competitors of each other,” he said.

The sponsorship arrangement gives Vero an opportunity to raise its profile with UAC members, “but in no way guarantees Vero business from any UAC member”.

Vero EGM Intermediated Distribution Andrew Mair says Vero was keen to become involved with UAC because it has identified underwriting agencies as an avenue for its own business growth.

“We’re looking forward to discovering greater opportunities in this $2.5 billion market,” he said.

Mr Coates says the sponsorship arrangement is “ongoing and subject to annual review”, and UAC would be open to approaches from other insurers about a similar arrangement.

Details of the strategic partnership will be unveiled to members at the UAC Expo in Sydney on Wednesday.