Brokers abroad
Australia
Danny Gumm is an insurance broker in Queensland, Australia, with over 35 years' experience. In 2013, he won the prestigious Broker of the Year award from the National Insurance Broker Association (NIBA). Founder and director of Parmia Insurance since 2002, he specialises in providing insurance solutions to professional associations and their members. Sarah Bassett
What does it take to be Broker of the Year in Australia? Why do you think you were selected? The criteria for Broker of the Year in Australia are quite extensive. These include a nomination from a third party who believes you are deserving of the award (my staff nominated me); a submission addressing key aspects of professionalism as a broker and as a leader both within the industry, as well as the community in general; and then an interview with key insurance industry personnel (three NIBA representatives and two Zurich representatives as sponsors of this award). I believe I was chosen due to my 35 years in the industry; endorsements from key clients, insurers, and my peers; also for the role Parmia has played in using real risk management to offer insurance solutions for whole industry groups which were previously unable to obtain cover, or where the cost of cover was prohibitive. Examples include the high-end beauty industry, such as laser treatments and cosmetic tattooing. Parmia introduced risk management in conjunction with a key beauty therapist solution
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to offer coverage to operators previously unable to get cover. The same approach has been applied to industries including tattoo artists, mercantile agents and work experience for colleges and training students. What qualifications are required to be a broker in Australia; and are there requirements for ongoing training and development? The insurance industry is monitored through the Australian Investment Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) with all advisers required to meet strict educational and financial requirements in order to offer insurance advice and service. A minimum number of continuous professional development (CPD) points are required each year from all staff (24 hours) and ongoing training of staff is seen as more essential than optional these days. Most insurance brokers are members of NIBA or the Insurance Institute, which all have their own code of ethics and requirements which brokers must maintain. Is there a negative perception of financial
services in Australia, with people tending to view insurance as a grudge purchase? I think that insurance itself is certainly still a grudge purchase, but I do not see this passing on through to the insurance broking industry. More than 80 per cent of all commercial business is currently placed through insurance brokers, and yet a recent speech by the Australian Financial Services Ombudsman revealed that the minority of complaints were made against insurance brokers. The majority pertained to the direct insurance market, where there was misunderstanding relating to the coverage purchased, or the terms and conditions that applied in assessing a claim. Is fee-based remuneration for brokers used in Australia? Is this something which gets debated? Fee-based remuneration is certainly used, but the most common means of remuneration remains commission through insurers. Due to the increased regulation and standards required, most brokers now not only receive commission from the insurers, but also charge