Our voice in the world
5 June 2008
Aiming at tomorrow today
1 April 2008
Change in Canberra indicates opportunity
1 February 2008
Celebrating 25 years of NIBA
1 October 2007
Fighting the good fight for brokers and clients
1 August 2007
Noel Pettersen, Chief Executive of NIBA,
Insurance & Risk Professional, February 2008
I trust that all readers have had a great break over the festive season and have managed to squeeze in as much quality time with families and friends as possible. Importantly, we should all be recharged and refreshed, ready to tackle the challenges of a new year in today’s fast-moving world.
Perhaps the biggest thing to happen in 2007 for business and community life generally in was the change in government, following a big swing to the Kevin Rudd-led Australian Labor Party at the federal election in November.
A new government means a whole range of things to industry associations like NIBA.
After all, the foremost activity of any industry body is to best represent the interests of members to key stakeholders. However, as the licensing and supervision of financial services intermediaries have undergone fundamental change under the previous government, it’s anticipated that the insurance broking scene is not going to alter radically under the new ALP regime.
When it was in Opposition the Labor Party said the existing regulation applying specifically to insurance brokers should not be changed in a significant way. There will, however, be change. But the nature and speed of what the Government may have in mind at this early stage are unknown.
But with change comes opportunity. This simply means creating a fresh, new interface with Government and keeping an ear to the ground politically to ensure that NIBA’s voice is heard on the things that matter in
At the time of writing, the subordinate ministerial roles under the new Treasurer, Wayne Swan, were still being sorted out. The Hon Chris Bowen, a relative newcomer to the general insurance industry, looks like taking on the insurance brief in his Assistant Treasurer’s portfolio. He will also be responsible for regulating competition policy and consumer affairs.
Mr Bowen has extensive experience in the political and economic fields as former Mayor of Fairfield in the outer western suburbs of
Addressing Parliament last September, Mr Bowen pledged to “take an axe” to the current disclosure regime, as promised by Labor in opposition. What this means to the general insurance sector remains to be seen, given that his statements appear to have been more focused on the complexities surrounding the life and investment industries.
Mr Bowen seems to be a man on a mission and hopefully will bring about change only where it is proven productive or necessary to do so.
Meanwhile, until the Treasury portfolios are officially finalised it’s still possible that Senator Nick Sherry could retain responsibility for the licensing of insurance brokers, with Mr Bowen taking on a wider insurance brief. Senator Sherry is the new Minister for Superannuation and Corporate Governance, a portfolio that will tackle ongoing superannuation reform and examine dodgy property investment schemes as priorities.
While he was in Opposition, Senator Sherry was banking and financial services spokesman and displayed an understanding of thorny issues. When coming into Government, he was quoted as saying the ALP would “consult with the industry about a range of issues. The form of that consultation hasn’t been finally determined but it will look at who and how those issues would be regulated and any gaps that needed to be filled.”
NIBA consultant John Hanks and I met with Senator Sherry late last year and he assured us that problems with insurance brokers were certainly not high on his agenda.
Over the years NIBA has been extremely effective in its government relations and lobbying roles. We have a track record that is arguably second to none. NIBA is widely respected at all levels of government and every effort is made to ensure that our arguments are well researched, balanced and presented in the best possible way.
As we enter a new era of government, be assured that NIBA will be at the forefront, meeting all the relevant ministers and the key bureaucrats who advise and influence them.
Much has been achieved in recent years to minimise regulatory overkill while making the general insurance buyer in the best protected anywhere. Our job now will be to ensure that we maintain this important balance, walking a fine line between the past and the future while constantly keeping a vigilant lookout for unfair or unworkable changes to the legislative and regulatory landscapes.