Insurance intermediaries from around the world have joined forces to defend commissions and promote broker value.
At the recent annual meeting of the World Federation of Insurance Intermediaries in Rome, NIBA CEO Dallas Booth briefed his global counterparts on the impact of the Australian Hayne royal commission .
Commissioner Kenneth Hayne’s final report recommends general insurance commissions form part of a further review in 2022. Brokers have warned that outlawing commissions would “decimate” the industry.
Mr Booth told insuranceNEWS.com.au other jurisdictions are facing similar regulatory pressures, and broker organisations across the globe have pledged to work together to put their case.
“The whole group is acutely aware that the concept of conflicted remuneration is a common theme among regulators,” he said.
“It is increasingly important that we collectively develop a strong explanation of the value and benefits of insurance brokers.
“The way broker remuneration is working is not leading to poor or distorted outcomes in the way many regulators assume.”
Mr Booth says brokers in the UK, Europe and South Africa are facing similar threats on commissions.
“We agreed that this is something we need to keep on our agenda,” he told insuranceNEWS.com.au. “We have committed to develop strong statements on the value and benefit of brokers.”
While he was in Rome Mr Booth met with senior officials from the Organisation for Economic Cooperation and Development, and the International Association of Insurance Supervisors, as well as the insurance regulator for Italy.
He says World Federation of Insurance Intermediaries meetings give regulators a chance to meet and discuss issues.
“It is critically important that the [broking] industry has input into their discussions,” he said.
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