Research confirms the incredible value of Insurance brokers
A recent research report, entitled ‘The economic value of Advisers’ and compiled by Deloitte Access Economics for the National Insurance Advisers Association (NIBA) is the first of its kind to confirm the many benefits of having an Insurance Broker.
Drue Castanelli, Resilium Insurance Broking’s Director of Operations and Compliance, says he is heartened to see the report confirms what he has known for many years – that having a reputable Insurance Adviser is just as important as having a Financial Adviser or Lawyer or other key business partner.
“Just as we go to an Accountant when we need our Tax returns done, a Dentist when we need a tooth pulled, or lawyers when we need legal matters attended to, so too should we see an Insurance Adviser when insurance needs to be placed.”
“Reputable Insurance Advisers don’t just ‘sell’ insurance,” he explains. “They look deeply at their clients’ needs and identify whether the right level of insurance and cover is in place and any areas in which there are potential gaps in coverage.”
Mr Castanelli says the value of an Insurance Adviser or Broker is something that has for too long been underestimated.
“Unfortunately, it’s not until it’s time to make a claim that some clients truly see the tremendous value an Insurance Adviser provides, working tirelessly to see their client gets their full entitlement without delay.”
Some of the key findings of the report included:
- It would take clients on average, 11 hours to complete a risk assessment of their business, compare insurer offerings and apply for cover. This equates to approximately $300 per annum in lost time or a combined $230 million across all business clients.
- Insurance Brokers are able to access a greater range of policies and insurers than a general consumer will find.
- From a financial point of view, in 2018-19, insurance broking collectively contributed nearly $2.6 billion in gross value added (GVA) to the Australian economy while also employing around 15,000 full-time staff.
- The insurance industry also indirectly supports economic activity in other businesses, worth almost $900 million in 2018-19, supporting over 5,000 extra jobs.
- Having an Insurance Broker reduces underinsurance, with 45 per cent of new clients being underinsured prior to engaging an Adviser.
- 54 per cent of clients pay the same or less on their insurance after engaging an Insurance Broker than if they were to have secured the insurance themselves.
Mr Castanelli says that the NIBA report is definitive confirmation of the incredible value the Insurance Adviser brings to their clients.
“Having a reputable Insurance Adviser on your side can sometimes mean the difference between staying in business or going under,” he says.
“Underinsurance is one of the biggest risks we see in the industry and having a trusted Insurance Adviser who will examine your business like it’s their very own can help minimise this risk.”
How Resilium can help: Resilium Advisers take care of all the details from helping you choose the right cover to the claims process itself. You can rely on Resilium Advisers for trusted insurance advice and to do the heavy lifting on behalf of their clients. Talk to one of our Advisers to see how we can help with your particular circumstances.
The information provided in this article is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances, please contact Resilium directly.