How to find the right insurance broker

18 Sep 2024

A good broker actively manages your insurance needs, regularly reviewing and updating your coverage to adapt to changes in your business
It’s important to choose a broker with in-depth knowledge of your industry to ensure they understand the unique risks your business faces
Checking online reviews or asking for recommendations can help you find a trustworthy broker with knowledge of the industry your business operates in

Insurance brokers can help you understand the risks your business faces, design a customised insurance package, and help you understand the details of a policy.

They may also save your business money. Brokers can negotiate with insurers to get the best prices, reduce your premiums by working with you to implement a risk management program, and can save you time. So, how do you find the right broker for you and your business?

What to look for in an insurance broker

Specialist knowledge – Some businesses face risks that are unique to their industry, and you should consider working with a broker who has the insight and experience to meet your needs.
Responsiveness – How quickly does the broker respond to your enquiries? Most importantly, do they provide you with helpful information?
Persistence – If they don’t have an immediate answer, do they demonstrate a willingness to find it?
Adviser, not an order taker – Are they a ‘yes’ person? If so, continue the search. A good broker will identify risks and advise you on what you need. They’ll tell you the truth rather than what you’d necessarily like to hear.
Proactivity – Being proactive is a hugely important skill for brokers to have, so ask them about how they approach the job. Do they suggest catching up and reassessing your needs on a regular basis, or will they wait for you to call?
Support at claims time – As well as finding you the right policy, a broker will really come into their own if or when you need to make a claim – including being able to advocate for you during any disputes. Quiz them about their claims handling process to understand just how they will help you. For example, will they guide you through it, or handle it all themselves?

“It’s important that you find a broker you can comfortably work with – someone who understands you and your business,” says Lorelle Hillman, General Manager, Partnerships, QBE Australia.

“Being able to have an honest and frank relationship with your broker is hugely valuable.”

Where to find an insurance broker

The National Insurance Brokers Association (NIBA) represents more than 450 member firms and 4,500 individual brokers across the country.

NIBA is essentially a gateway to accredited, reliable brokers who are compelled to provide the best service. To find a broker visit NIBA’s Need a Broker website or call 1300 531 073.*

Since 1982, the association has established numerous operational and educational standards for brokers. It’s most well-known for developing, administering and monitoring the Code of Practice.

A new Code of Practice came into force in November 2022, which outlines minimum service guidelines for NIBA members. That means the brokerages and brokers they represent must abide by strict standards, including:

Disclosing what they earn
How they handle claims and renewals
Clearly explaining their role and terms of engagement
Adhering to the Code’s Complaints and Dispute process

“Being a member of the national association is a good sign your broker takes the profession seriously. It shows they’re committed to upholding the standards set by NIBA and are dedicated to continuous education,” says John Schroder, General Manager SME, QBE Australia.

“The Code of Practice evolves from a rigorous process, and demands all brokers adhere to the very highest standards.”

Ask for a recommendation

Do you have contacts in your industry who can give you a recommendation for a broker? First-hand experience is always a good source of reference, so ask peers you trust to share their experiences.

If not, check out any online reviews – if they’ve got some good Google My Business and Facebook reviews, you can get some insight into how they work – and you may recognise some of the reviewers.

“Insight from clients about how the broker works – particularly during claims time – can be invaluable,” says Hillman.

“Also, understanding how they’ve helped businesses in other ways, such as advising on future risks that a client may have been unaware of previously, will give you a good idea about the level of service you can expect.”

What sort of questions should I ask a broker?

As well as asking for references and understanding how they work, it’s a good idea to ask your potential broker the following questions:

What are their qualifications and professional memberships?
What range of services do they offer?
Who would be your point of contact with your account?
What experience do they have with businesses of your size and in your industry?
How do they invoice for their work?
What makes them different to other brokers?

“It’s about asking as many questions as you need to get a full picture in your mind of what the working relationship will look like,” says Schroder.

“By doing your due diligence at this stage, you’ll find the right broker for you.”

Consider an authorised representative

An authorised representative is different to a licensed broker.

Authorised representatives operate under the Financial Services Licence of another provider either an insurance company, licensed broker or other Australian Financial Services Licence holder, and provide financial services on behalf of that provider.

An authorised representative who provides personal financial product advice is still subject to the same general conduct obligations that apply to a licensed broker. Often an authorised representative may be authorised by several insurance companies so they can still offer you a range of product choices. You can also access support from an Elders Insurance Agency located in your local community. Find your local Elders Insurance agent.

* The brokers on this site are not employees or agents of QBE, but are independent entities. QBE is not responsible for any advice provided to you by any broker on this site. Any such advice is the responsibility of the broker concerned.

This advice is general in nature and has been prepared without taking into account your objectives, financial situation or needs and may not be right for you. You must decide whether or not it is appropriate, in light of your own circumstances, to act on this advice. To decide if QBE’s products are right for you, please ensure you obtain and consider the Policy Wording or Product Disclosure Statements and Target Market Determinations, available online at QBE.com/au. Insurance issued and underwritten by QBE Insurance (Australia) Limited (ABN 78 003 191 035, AFSL 239545).