Delegates attending last week’s National Insurance Brokers Association Convention in Sydney believe the current challenging global economic environment will present opportunities for business growth.

The majority of attendees (86%) at a panel session featuring industry leaders felt the current world economic situation will impact on the way they do business, but 57% concluded that this impact will be positive, with the economic situation presenting opportunities for growth.

Brokers accounted for 66% of the audience, with 21% representing insurance companies and 13% other service providers to the industry.

CGU CEO Peter Harmer agreed with the audience view, telling delegates that the prevailing economic conditions have created a “changed sense of risk” in society making people “increasingly risk-averse”.

He says that as a risk mitigation industry, the current climate should benefit the insurance industry “if we can just stop poking ourselves in the eye”.

But Steadfast Executive Chairman Robert Kelly argued that in the main, brokers are paying “no cognisance” to what is happening in economies around the world and are still focused on their own patch and on selling insurance on price.

Addressing industry tensions between brokers and insurers over rates, Mr Kelly said it is the broker’s role to convey information about the reasons behind rate increases, rather than to ask clients what price they can afford to pay.

“There will be some changes in pricing, and we in distribution have to start telling our clients it’s coming,” Mr Kelly said.

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