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So much done, So much more to do!
Insurance & Risk Professional, December 2006 NIBA members can look back on a year of achievements and forward to new challenges and opportunities NIBA was established almost a quarter of a century ago to assist insurance brokers with practical help and advice while at the same time uniting the industry as one clear voice on testing issues. These days it’s no different. As we head into the association’s 25th year under the NIBA banner our recent efforts to bring about a fairer, more workable regulatory and licensing regime for insurance brokers have largely gained agreement with the Government and regulator. We will, wherever possible, continue to work co-operatively with the key decision-makers to make sure that we can react to the newest challenges and check that the framework for regulation does not exceed its intentions. Of ongoing concern to NIBA is that there is still no resolution to the recommendations in the Potts Review. To date Treasury has not commented on the submissions it received in response to the paper on implementation of the Potts Review recommendations about direct offshore foreign insurers (DOFIs) and discretionary mutual funds (DMFs) that was released for public comment in December 2005. It’s unlikely that there will be any legislative change until well into next year. Changes to the Victorian fire services levy (FSL) have also raised broker concerns over the past year. Legislative changes that came into effect from July 1 require insurance companies to charge FSL on any discount or reduction in gross premium as a result of using “net rating”. (This is defined as any means or device adopted by an insurance company involving the waiving of commission or brokerage by an insurance intermediary which has the effect of reducing the premium payable to the insurance company.) NIBA lobbied heavily as to how the change would be implemented. As a result, the Victorian fires services authorities have agreed that the “net rating” arrangements should not be applied where the broker is only remunerated on a fee-for-service basis. The Victorian Government has since appointed actuaries to develop a formula for applying FSL equitably to insurance policies where the deductible is more than $10,000. The task is expected to be completed in time for the recommended formula to be incorporated in regulations to come into effect from July 1 next year. NIBA has been asked to provide input into the recommended formula but will continue to argue that the FSL be replaced with a broad-based tax on property. Our wider campaign to raise insurance buyers’ awareness of the large amount of taxes being added to premiums has gained significant momentum. A new section of the NIBA website has been created that explains the size of the premium taxes problem and encourages readers to write to their federal and state members of Parliament to express their ire. NIBA’s role is to develop and foster the insurance broking industry. Members are well aware that their association provides a wide range of services including education and training, professional certification, industry advocacy and representation for professionals within the industry. This year the NIBA College of Insurance & Risk Professionals has undertaken a full review of all its qualifications programs in both the coursework and assessment pathways. The revised material has integrated the most current national Financial Services Training Plan guidelines. The new coursework content reflects the college’s flexible approach to training by allowing users more scope to develop specialisations by mixing and matching modules across life and general broking, insurance underwriting and claims knowledge areas. A major initiative has begun to re-evaluate what it means to be a professional insurance broker and to position the Qualified Practising Insurance Broker (QPIB) qualification at the pinnacle of financial service providers. This project will ensure that QPIB reflects members’ needs into the future. A launch of the new standards is planned for next year. NIBA College’s traineeship program continues to perform well ahead of industry benchmarks, particularly in Western Australia. Enrolments have not only increased but have been keenly supported by the industry’s commitment to the new generation of insurance brokers. What could be more essential than helping to bring bright, young talent into the industry. A major redesign of the NIBA website to make it more contemporary and interactive is almost complete. In line with the modern age, the upgrade has made the website easier to navigate and provides a new range of helpful services and information. Visit www.niba.com.au and see for yourself. As part of our broker promotional campaign a complementary website – needabroker.com.au – also includes a directory of brokers for easy access by Australian businesses and consumers. Complete details of the broader promotional campaign were launched at the 2006 NIBA Convention. It features a multi-faceted advertising push around the theme of “Every business needs an insurance broker”. The aim of the campaign is to support the new Code of Practice as a standard of excellence, as well as provide greater recognition of the role brokers play as the essential third party in the insurance transaction, particularly in the SME market. NIBA has a number of active committees tackling specific topics. This year a new Workers’ Compensation Committee was formed to ensure brokers play an active role in workers’ compensation in both privately and publicly underwritten schemes. Under the direction of experienced consultant John Hanks, the committee will have a national focus but will first concentrate on NSW and Victoria to promote a greater understanding by authorities of what insurance brokers have to offer. The pace of change keeps accelerating and the underlying trends driving our industry often blur the competitive landscape. The insurance market has certainly experienced a complete turnaround from two years ago when costs were high and there was a lack of cover for many liability classes of insurance. Competition and legal reforms have had a big impact. NIBA recognises the need to plan for the future as members increasingly look to the association to provide practical advice, guidance and support. That we achieve our goals is testimony the hard work of our Board, committees, advisers and staff. Our President, Steve Ball, completes his term this year and I wish to convey my personal thanks for his altruistic approach in representing the association so capably over the past two years. Members can take great pride in Steve’s robust resolve to push the broker message and enhance the position of NIBA at every level. He has given it his all, so take time to thank Steve personally if you get the chance. NIBA has enjoyed a productive, encouraging year. As we strive toward even greater achievements the message to members is to stay tuned, get involved and stay involved! We wish you all a very Happy Christmas and a safe, rewarding 2007. |
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