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, April 2008
I’m often asked if the internet has impacted on insurance-buying. I may be wrong, but in commercial cover I don’t think it has. However, there’s little doubt that the power of e-commerce is unstoppable and competition from the likes of direct insurers, banks and other finance providers – and possibly other professions – will always be hovering somewhere in the future competitive mix.
This is all part of our rapidly changing world. The new consumer is already better educated and more confident, demanding anytime/anywhere attention. Clients of the future will expect more service and benefits.
There’s a whole new generation emerging that will depend almost entirely on electronic and telephonic mediums to transact in the future. They’re in the schools and universities now, and they’re the smart buyers of tomorrow.
While the economic and social importance of insurance is understood in most modern economies, engaging the attention of every generation is vital. To reach them we need to work harder to create the desire and need for our products.
I found this quote by US business journalist Sam Friedman interesting: “Insurance is just not high on the radar screen, or in the esteem, of the average Joe or Jane.” But maybe that’s changed a tad given the impact of Hurricane Katrina on many Americans.
My view is that as an industry we tend to undersell ourselves. We need to continually reinforce the role of insurance and brokers in what we say to governments, in what we say to the media, and in what we say to everyday clients.
Put simply, the one-stop-online insurance shop can only succeed if it replaces the specialist interaction that a broker provides.
But better business relationships are also about developing the right people to service clients in the “new age”. Attracting and retaining good staff is a hot issue.
How many times have you heard the expression that “people are our greatest asset”? Without the right people in place – people who are motivated and dedicated – we can’t hope to be totally successful in our objectives.
That’s why NIBA is keen to attract young people into our industry and help them succeed. That’s why there’s now a greater need for broker-specific training, education and recognised competency standards for their skills and knowledge. And that’s why more regulators internationally are insisting on it as part of the licensing process. This is a huge leap toward greater professionalism and should be embraced in every way.
Given the competition, convergence and change taking place across the whole financial services sector, some doomsayers may be questioning whether brokers will even have a future role. “Insurance brokers, who needs them?”
The answer is as simple as this: We live in a busy, uncertain world where there’ll be an even greater need for specialist help. So if brokers are just salesmen selling insurance, yes, it’s an industry on shaky ground. But if brokers, particularly small brokers, see what they do as providing a client-driven service and not just a product for a price, then their future is very positive.
I do a lot of travelling around Australia and one of the most satisfying parts of my job is to speak to people who are really making things happen. They’re the ones who are seeing increased business and better profitability. They’re the brokers who have asked, “what do my clients want?” They’re brokers in the true sense of the word. They’re the brokers that clients can’t do without.
Why? Because these clients are people and businesses who are conscious of their future security. They’re not insurance experts and they’re too busy to make their own insurance arrangements.
They also respect the need for professional advice – and if there’s a claim, they want help from someone on their side.
And, importantly, through experience they can testify personally about the real value a broker can add.
Let me put it another way: forward-thinking brokers provide a service that should be a fundamental part of every client’s business plan.
Again, the message is clear. The brokers who’ll continue to prosper are those who have not waited for the business world to be like it used to be. They must now walk the fine line between past and future, striking a balance between tradition and change.
We work in a great industry. Brokers do a great job. Feel proud.
Insurance holds a special position in the economy. Let the industry, by its actions day in and day out, reinforce that position of trust.