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We should be so lucky...

Insurance & Risk Professional, June 2010

In the words of a certain diminutive Australian diva, insurance brokers in this country have much to be thankful about. I've recently returned from the annual meeting of the global body representing insurance broker associations - the World Federation of Insurance Intermediaries (WFII). I represent Australia and the South-East Asian Pacific associations on the executive committee, along with CEOs from the USA, Canada, UK, South Africa and European countries.

Much of the talk on the last agenda was predictably based on regulation. After all, that was the prime reason behind the formation of WFII back in 1999 when NIBA played a key role in bringing the countries in our region to the global table.

Based in Brussels, WFII is now recognised by all world leading and influential international bodies (OECD, IAIS, WTO, UN, World Bank and IMF) as the single voice of intermediaries in international public affairs. WFII's positions on key issues are defined at the annual meetings.
The big issue right now is that the IAIS (International Association of Insurance Supervisors) is revising its insurance core principles. For many national jurisdictions, the principles become the benchmark for future regulatory requirements.

On the long list of issues under discussion, I noticed many familiar topics including: conflict of interest management, remuneration systems, commission, fees, contingency payments, fiduciary duties, complaints handling, fraud and anti-money laundering.

To Australian insurance brokers, these issues have been dealt with intensely over the past decade. Whilst we might not have liked them at the time - after all, a lot of it was costly overkill - we can safely say the financial services sector is stronger as a result. In fact, if regulation was an Olympic event the Aussies would be gold medallists!

Much of what has taken place on the Australian regulatory landscape is now being replicated to varying degrees in most other parts of the world, particularly since the GFC.

Whilst our industry has proven very resilient in the face of global adversity, we cannot rest on our laurels. We need to continually re-enforce the role of the insurance broker as the essential third party in the insurance transaction. Brokers bring competition to the market place, and this can only benefit the consumer - regardless of regulatory controls.