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Shaun Standfield of Insurance Advisernet talks to IB about the bright future he sees for the AR model, the limits of technology, and the one thing he believes intermediaries could do better
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ASK SHAUN STANDFIELD, managing director at Insurance Advisernet, what brokers could be doing better, and the answer is far more compliment than critique. They could, he says, be putting a bit more energy into trumpeting the great work they do.
Brokers made up only 309 of the 16,912 complaints lodged to AFCA against general insurers in 2020/21 (consistent with the previous year), a statistic Standfield says the industry should be very proud of.
“It doesn’t come as a surprise though; brokers act for their clients, not the insurer, and our role is to offer personal advice to clients as to the best insurance program to mitigate their risk exposures. I believe the broking fraternity could do more to actively promote these findings.”
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Insurance Advisernet is a major independent broking group in Australia, founded in 1996 by Ian Carr. It offers a wide range of general insurance broking services through its network of insurance advisers.
According to the company, its advisers can retain their local presence and client relationships while also having access to a national buying group for insurance products and services. The group now transacts over $1bn in gross written premiums in its main markets of Australia and New Zealand.
Insurance Advisernet also works with major insurers, both in Australia and overseas. It has a wide network of relationships with leading firms worldwide, which boosts its buying power and gives clients more options in choosing the best cover for their needs. Some of the top insurance names the group works with include Allianz, QBE, CGU, Zurich, Vero, AIG, Chubb and Altius Group. It also works with several premium funding organisations to help make insurance more accessible, especially for small and medium-sized businesses.
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Why broker-client interaction pays
of SMEs who have a collaborative relationship with their broker are highly satisfied, compared to 24% who have minimal interaction with their broker
51%
“Our practices have gone out on their own with our support and taken the risk to develop their own asset and business. This reflects many of our clients who are also SMEs who’ve backed themselves to build a business”
Shaun Standfield,
Insurance Advisernet
Brokers don’t only offer risk advice, says Standfield; they stand alongside their clients as their advocates when claims occurs.
“Claims advocacy is also not talked up enough by brokers,” he says.
Recent tough times have only served to highlight an area in which brokers excel: staying in regular contact with clients. And strengthening this communication is something IA’s network has been extremely proactive about. In addition, says Standfield, COVID underlined the benefits of having a broker in the local community, someone they could pick up the phone to talk to without going through a call centre.
This ongoing client-adviser dialogue has been vital for several reasons.
“The continuing ‘hard’ insurance cycle has necessitated more communication about why insurance pricing has increased, but also importantly what risk management actions clients can take to improve their risk profiles,” says Standfield. “Ironically, keeping insurance programs in place was even more crucial over the past 18 months or so, as the last thing we wanted to see was additional financial stress on businesses brought on by an insurable loss occurring with no insurance programs in place.”
Like most businesses, IA immediately executed that signature move of COVID – the pivot – to adapt to the new
circumstances. This included a shift to virtual meetings, moving professional development days online, regular updates for the teams on happenings at the company, and video conferences with clients instead of face-to-face meetings.
Throughout the disruption to business as usual, being part of a network meant authorised representatives had the support to better assist their clients.
“Insurance Advisernet, like many broking groups, has provided timely communication updates that can be tailored by advisers to keep their clients updated on myriad insurance-related issues. For instance, with the uncertainty around business interruption claims, we encouraged clients to lodge claims for assessment by our various insurance company partners.
“Our model allows our ARs to concentrate on their clients with the support structures we provide in terms of systems, compliance, professional development, finance, business management tools, insurance placement and claims advocacy services.”
Work-related accidents or mishaps
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Directors & officers
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Legal fees
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Auto liability
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Property damages and bodily injury
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The AR practices are ideally placed to assist their SME clients because they understand first-hand the challenges these businesses face, says Standfield.
“Our practices have gone out on their own with our support and taken the risk to develop their own asset and business. This reflects many of our clients who are also SMEs who’ve backed themselves to build a business.”
“Technology cannot replace the advice a person can give. Good advice only comes from understanding your client’s wants, needs and risk tolerances, using data to ensure they are aware of the natural-hazard risks they face, coupled with the risks associated with the industry they are in”
Shaun Standfield,
Insurance Advisernet
This uptick in enquiries is just a glimpse of the bright future Standfield expects for the AR model.
“I think it will continue to grow as more insurance professionals are looking at ways to develop their own practices. AR models allow professional insurance brokers to run their own businesses with the backing of sound back-office systems. I also believe the continued investment in data, systems, marketing and compliance infrastructure is crucial for the continued growth of both the AR’s business and for longevity of the AR licensee holder.”
While the world has been turned upside down by the pandemic, irrevocably changing the way many of us do business, Standfield says the core role of a broker hasn’t changed.
Yes, the advent of technology increasingly allows advisers
A sunny outlook
to spend more time with their clients, plus broking software and better data help brokers evolve their advice processes. However, he adds, “I see technology as an enabler and not the panacea some would believe it to be. Technology cannot replace the advice a person can give; good advice only comes from understanding your client’s wants, needs and risk tolerances, using data to ensure your clients are aware of the natural-hazard risks they face, coupled with the risks associated with the industry they are in.”
Standfield is also a big believer in explaining to clients – clearly and in detail – why they are spending more on premiums.
“Ultimately we need financially sustainable insurance companies to enable our economies to keep functioning. So, explaining in terms clients can understand about diving investment markets, increased repair costs and increased severity and frequency of weather-related events assists them to plan for increased insurance costs.”
Advice trumps price every time, says Standfield.
“Simply, when a claim occurs, the price you pay isn’t a consideration. What’s key is that you have the right policies in place to ensure your livelihood and assets are protected. Our role is more and more to provide risk management advice to our clients, and part of this is to craft a bespoke insurance program. Often this program will be crafted using a myriad of insurance partners. At IA we have access to over 100 insurance partners.”
Of course that very human facet of being an adviser – the sitting down and explaining, the listening, understanding and empathising – needs to be backed up by sound knowledge and expertise, and increasingly so as the industry becomes ever more complex.
“The industry has evolved to a point where being qualified in insurance is a must-have and not optional,” says Standfield. "You don’t visit a doctor who hasn’t got a medical qualification. Why should we be able to give advice and receive remuneration if we haven’t also got an industry-recognised qualification?”
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With overall client satisfaction scores sitting at 97%, there have been strong referrals from Insurance Advisernet’s existing customers, along with enquiries generated through local search engines.
However, while growth has been steady, it’s not what it might have been.
“There is no doubt it has slowed a little due to the impact of COVID on potential advisers making the decision to start their own practice,” says Standfield. “Also, we haven’t been able to meet with potential new advisers face-to-face during that time. Contemplating starting your own advice practice is a big decision, and many face-to-face meetings are required to ensure it’s going to be mutually beneficial to all parties.
"Interestingly, since restrictions have lifted in some states across Australia, enquiries are starting to ramp up again.”
Source: insuranceadviser.net
185
insurance advice practices
Insurance Advisernet by numbers
97%
overall satisfaction with IA advisers
of SMEs did not even think about the risk of underinsurance when they reduced their cover during the pandemic
30%
Why broker-client interaction pays
of SMEs who have a collaborative relationship with their broker are highly satisfied, compared to 24% who have minimal interaction with their broker
51%
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