NIBA / Special Feature
brokers isn’t getting productivity gains, it’s establishing the why for the coming decade and beyond. “At present, some brokers are striving to become more efficient, manage more clients per employee, and run a bigger margin,” says Borden. “That game won't last very long. “If brokers aren't keeping up with that baseline expectation of being a risk adviser or a strategic partner in their clients’ business, then they'll become irrelevant quite quickly. They'll either get replaced by something that's just automated and
transactional, or they'll get replaced by someone who's doing a much better job of providing that full service.” Goodall agrees, suggesting some are at risk of becoming obsolete. “The uncomfortable truth for the industry is that some current brokerage roles are vulnerable if their value is primarily process administration or information transfer.” Making a change from a transactional focus to a strategic risk adviser can seem a daunting prospect, however it’s a huge opportunity to redefine and then establish
a whole new value proposition – one that’s insulated from the threat of price comparison sites and AI, and one that is set up for success for a long time to come. It’s an opportunity that NIBA is focused on – and is ready to walk hand in hand with brokers to realise. “A key step in preparing for the future is redefining your own role in your mind,” says Klipin. “Are you a transactional broker, or a strategic risk adviser? One has continued, long-term value – the other is likely to be replaced sooner rather than later.”
WHAT DOES AI SAY?
We asked AI to describe what an SME business should expect from their insurance broker. Here’s what it told us. Whatever you think of AI, this is extremely relevant, as this is exactly what more and more of your clients and potential clients will be asking – and this will define their expectation and satisfaction.
We asked:
I am an SME business in Australia. What should I expect from my insurance broker?
AI said:
For an Australian SME, an insurance broker should do far more than simply obtain quotes and process renewals. A good broker acts as a risk adviser, insurance specialist, advocate and claims representative.
At a minimum, you should expect the following:
Understanding your business A broker should take the time to understand: ☑ Your industry and operations ☑ Revenue and growth plans ☑ Major contracts and obligations ☑ Key assets and liabilities ☑ Workforce structure ☑ Cyber and technology risks ☑ Supply chain dependencies If a broker only asks for turnover, staff numbers and asset values before providing quotes, they are probably acting as a transactional intermediary rather than an adviser. 1
Identifying your risks
Explaining what insurance you need (and don't need) You should receive clear advice about: ☑ Recommended covers ☑ Optional covers ☑ Coverage limits ☑ Excesses ☑ Significant exclusions ☑ Areas where you may be uninsured or underinsured The broker should explain insurance in plain language and help you make informed decisions. 3
2
A broker should help identify risks that could affect your business, including: ☑ Property damage ☑ Business interruption ☑ Public and product liability ☑ Professional indemnity exposures ☑ Cyber attacks ☑ Management liability ☑ Employment practices claims ☑ Crime and fraud ☑ Contractual liabilities ☑ Supply chain disruption The discussion should focus on what could threaten your business continuity, not simply which policies to buy.
60 / INSURANCE ADVISER JUNE/JULY 2026
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