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NIBA commissions study on broker value

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The National Insurance Brokers Association has commissioned Deloitte Access Economics to assess the value of general insurance brokers to clients, insurers and the community.

The Hayne royal commission’s final report recommended a review of general insurance commissions, and both the Coalition and Labor have agreed to carry this out.

Association CEO Dallas Booth says brokers have “a sound basis” for arguing for the continuation of commissions, but more “hard evidence” of broker value is needed.

“We believe there is strong value there and brokers are entitled to be remunerated,” he told insuranceNEWS.com.au.

The association says Deloitte produced a report on mortgage brokers last year that “has been extremely valuable” for that sector.

Deloitte has already held a workshop with key broking representatives.

The report on insurance brokers could take a year to complete, and a broker survey may be used to gather data.