Amid global headwinds, insurance brokers are needed more than ever

Climate change is exacerbating the frequency and severity of natural hazards and disasters, says Richard Klipin, CEO of Australia’s National Insurance Brokers Association (NIBA).

Klipin, who will help debate the topic “The Great Insurance Smackdown. Who’s really running the show?” at this year’s ANZIIF General Insurance Breakfast, says the world has become a troubled place in the last couple of years.

“Fires, conflicts, global warming and climate change are impacting all of us – as humans, as families, as businesses, and as associations,” Klipin says.

“These significantly increase the cost of reinsurance, with the flow on effect of pushing up the price of insurance premiums.”

Klipin says the challenge of rising premiums can make it tempting for customers to underinsure. He urges brokers to recognise their role as “trusted advisors” who guide and assist their insurance customers to understand and manage their risks.  

“The role of the broking profession is so important in helping Australian families, businesses and communities to manage risk and prosper in good and tough times,” he says. “Brokers unpack the complexity and provide some clarity to help people make a good call."

There is no doubt that the demands on brokers are increasing and becoming more multifaceted.

“Consumers are getting much clearer about what they need and what they want,” Klipin observes. “Technology is also rapidly changing. For brokers, navigating a pathway through that level of risk and change, while remaining optimistic and adding value to our customers is really important.”

A natural optimist

As an “optimist who sees challenges as opportunities”, Klipin is well-placed to inspire and support the brokers he represents.

He feels lucky to have learned from many great coaches and mentors throughout his career.

“However, it starts at home, and it was my parents who set the example for living life to the full, with a core moral compass that respects people and diversity,” he shares. “It has been a great piece of foundation learning.”

Klipin works to bring those core values to his approach and achievements. He believes that passion, purpose, dedication, authenticity and hard work are the cornerstones of success.

He is also an ardent believer in the need for working collaboratively.

“Our industry is evolving and the only way for us to tackle these challenges and ensure that Australian consumers get the best outcomes is to work together,” he says.

Nurturing relationships and collaboration

Klipin began his career in 1989 as an adviser in the financial services industry before joining Mercantile Mutual as a Funds Management BDM and after progressing to sales management nationally, he became a founding partner of The Encore Group.

In 2006, he was appointed CEO of the Association of Financial Advisers (AFA), a role he held for over seven years. He held many senior executive positions, including with the Financial Services Council in New Zealand, before taking up the role of CEO at NIBA.

“Throughout my career, it’s always been important to nurture strong relationships with governments, policy makers, regulators and stakeholders within the industry,” he says.

“Continuous work with these powerbrokers will enable us to tackle pressing issues, including insurance affordability and regulatory compliance.”

Making insurance accessible

Being both passionate and strategic about the need for insurance to be accessible and affordable, Klipin argues that the insurance industry must anticipate challenges and proactively seek innovative solutions.

“I am committed to putting in the hard work to do so,” he says. “NIBA is dedicated to supporting brokers to confront and overcome the challenges of the rapidly changing insurance market.”  

He says NIBA plans to advocate both within and beyond the sector to highlight the value of insurance brokers.

“Consultations have already been undertaken as part of NIBA’s independent review of the Insurance Brokers Code of Practice, which aims to ensure that the Code meets the changing needs of consumers and brokers, and that it reflects their professionalism,” he says.

“Transparency and ethical behaviour are crucial keystones in building the community’s sense of trust in insurance brokers.” 

Amplifying the broker's voice

As CEO of NIBA, he plans to take advantage of “key opportunities to expand and amplify the voices of brokers and of the sector, to become an even stronger voice for the profession.

“Strength through unity is particularly important in times of crisis,” Klipin says, adding that “communities that hang together make it through in resilient and constructive ways.”

He describes the 2024 NIBA Convention as one of his proudest moments since commencing his role at NIBA.

“Community is an important and hugely valuable part of why NIBA exists,” he says. “Our flagship event, the NIBA Convention, brings together the breadth and diversity of the profession and the industry under one roof.”

For Klipin, seeing the community come together in Adelaide last year for the convention was powerful and fantastic. “It was a hub of learning, development, belonging and connection,” he says.

He predicts that the role of brokers as trusted advisors and partners of the people they serve will remain as important and relevant as ever.

“When the world gets faster and more complex, the need to have a trusted advisor becomes even more important to help navigate through that complexity,” he says.

“Trusted advice provided by an educated and capable professional will always be in high demand. I see that continuing to grow into the future.”

Klipin urges brokers to attend the 2025 ANZIIF General Insurance Breakfast, which will be held in July rather than December this year, and features a debate.

“Attendees will gain insights and key perspectives from industry leaders about the main challenges and drivers impacting our industry at present,” he says.

Register for the General Insurance Breakfast