Insurance Brokers in Australia have remained the key distribution channel for commercial insurance over the past 25 years, KPMG reports in its latest General Insurance Survey for 2011.
During the past 5 years brokers have averaged more than 70% share of the commercial insurance market, said KPMG quoting official statistics.
Most commercial insurance policyholders, particularly at the large corporate end of the market, rely on brokers to provide advice on the best insurance both in terms of value and product.
This was in contrast to lower cost policies, especially personal insurance products, where it was easier for customers to research the market themselves, according to KPMG.
Brokers also had developed individual online platforms for insurance providers to list their products.
From the brokers’ perspective, KPMG said that customers benefited due to price transparency and comparability between different providers and products.
In an overall view of the past 25 years, the KPMG says the nation’s general insurance industry had evolved into a robust, competitive industry that was focused on achieving appropriate returns for shareholders balanced with security and customer service for policyholders.
KPMG added there was little doubt that formalised risk consciousness and sound underwriting practice were embedded much more firmly than they were 25 years ago.