Broker Best Practice — More than a tick box

Compliance requirements for Australian insurance brokers are numerous, with a complex regulatory framework setting baseline standards for  fiduciary duties, and most importantly, the need to act in the best interests of the client.

However, if these regulations comprise the minimum expectations for insurance brokers, what does broking best practice look like?

That’s a question posed by Richard Crawford, Chief Executive Officer of Community Broker Network (CBN).

Crawford believes that insurance broking best practice goes well beyond legal obligations. He says that while compliance regulations for Australian insurance brokers dictate what must be happening, best practice refers to what should be happening.

What is insurance broking best practice?

From a CBN perspective, Crawford shares that “insurance broking best practice is about learning, progress, and continual improvement”.

“Best practice should reflect learnings across the insurance broking profession that lead to delivering the best outcomes for clients in any circumstances,” Crawford says.

What can impact Best Practice?

According to Wendy Foweraker, CBN Executive Manager Broking Operations, it’s no secret that the context in which we do business is dynamic, challenging and continually changing.”

“This leads to many factors that can impact the quality of advice and service that clients receive,” Foweraker says.

These include:

• The personal economic mindset and professional circumstances of the client — this can ultimately dictate their willingness and ability to engage in an effective dialogue with the broker.
• Workforce pressures — the  availability of skilled employees, a positive workplace culture, and absenteeism can affect brokers’ capabilities to deliver best practice.
• Insurance market conditions —the  insurance market relative to a clients’ risk profile can impact the availability of suitable solutions to achieve the best possible outcome for the client.
• Broker business systems — the state of a broker’s systems, such as its evolution and suitability for the job, can impact business process capability and efficiencies the client might benefit from.
• Broker tools and resources —broker  business tools can enhance client experience, however the tools available can vary widely between brokerages.
• Professional knowledge and skills — the more up-to-date a  broker skills and knowledge, the better.
• Broker personal circumstances  — your  own health and wellbeing can fluctuate daily, and naturally this can affect client experience.

How can you balance these factors to deliver best practice?

After eight years at CBN, Foweraker reflects that at its heart, best practice is about delivering an outstanding customer experience.

“Best Practice is about ensuring that clients’ best interests remain paramount,” she says.

“While in some respects we need to play the hand of cards we are dealt, there is so much insurance brokers can do to optimise the outcome for clients, even in the face of such factors.”

Some suggestions include:

• Maximising your business systems to full effect.

“Establish consistency in how systems are used across your team,” Foweraker suggests. “Who does it best? Is there an opportunity to create more streamlined processes for everyone?

“For ARs, how are you leveraging your broker network? Connect with other organisations to see what you can learn, checking comparative productivity and practice. There is so much latent capability in business systems, and you could achieve much more without spending a single extra dollar.