NIBA College

Insurance Broking - A Rewarding Career

Insurance broking is a growing profession offering exciting opportunities and a rewarding career in business consulting. It is a career backed by recognised qualifications and great prospects for the right people.

Insurance brokers are professional advisers who work on behalf of their clients not insurance companies. The job involves analysing ‘risks’ to help people decide what needs insuring and what can be managed in other ways.A main aspect of the broker’s role is to assist clients to manage their risks by arranging and putting in place insurance policies. The sophistication and complexity of insurance broking work varies, depending on the client base.Brokers provide ongoing support and service especially with insurance claims.

Insurance broking is a growth industry. Every day, more and more people are consulting brokers for personal service and specialised advice.

Brokers are not insurance agents or salespeople. A brokerage business is a licensed financial services provider with the industry regulatory, the Australian Securities and Investments Commission. Individuals need to have certain levels of professional training and expertise to work as brokers.

Working with people
A range of skills
Training
Rewards and diversity
Frequently asked questions
Pathways to becoming an insurance broker

Broking is not simply a desk job. The work involves helping people from many different walks of life - from individuals needing home insurance to board directors needing to protect large international companies.

To be a good insurance broker you need to enjoy working with people, listening, and understanding their concerns in order to ensure their homes, businesses and possessions are protected.

This work often extends beyond simple insurance and includes business planning, site visits, new product development, marketing, information technology and helping people to manage their risks and make claims.

No amount of plain English policies will ever take the confusion out of insurance. There are many different types of clients and policies which require a broker to:

• understand insurance law;
• identify risks;
• understand the insurance marketplace, and the different options available for clients.

New brokers are extensively trained from the first day they enter the profession. They are encouraged through continuing education to become Qualified Practicing Insurance Brokers (QPIBs) - the professional qualification for the industry. These days brokers can study brokerage general management and advanced risk management at the tertiary level.

Insurance broking is a career with unlimited potential for significant financial rewards and personal satisfaction.

The profession is diverse and allows the scope to work for small specialised brokers through to large international firms. It is this variety that makes the profession so interesting.

Why haven’t I heard of insurance brokers before?
It is quite likely you have never even heard of insurance brokers. This is partly because in the past their dealings have been mainly with businesses, not the broader public.This is changing as more and more individuals are starting to realise the valuable service they provide.

Who would I work for?
There are around 800 insurance broking firms in Australia. The industry is divided up between a handful of multinational brokers, large national companies and a large number of small to medium local businesses usually employing less than 10 people. New jobs are not always advertised.The best approach for an initial job-seeker may be to approach insurance broking firms directly. Some brokerages employ young people under a broker traineeship program in which they complete their Certificate III in Financial Services and gain initial accreditation as a retail client adviser.

What is a typical career path?
This will depend on the broking firm. Most people begin as junior account executives, working with a team for a number of clients. They progress to become senior account executives and managers with their own portfolio of clients. Many brokers develop skills in specialised areas, such as marine insurance, the entertainment industry or even oil rigs in Bass Strait. After several years experience, most brokers progress to become Qualified Practicing Insurance Brokers (QPIBs).

What is a Qualified Practicing Insurance Broker (QPIB)?
QPIB is the professional certification for insurance brokers (much like the CPA or Chartered qualifications for accountants). It is the mark of a professional, quality broker and something to work towards. After three years of insurance broking experience and undertaking the Diploma of Financial Services, practicing brokers are able to apply for QPIB status.

Is there a professional association for insurance broking?
Yes. Most broking firms are members of the National Insurance Brokers Association (NIBA). NIBA can be contacted for more information about insurance careers.

What is the difference between an insurance broker and authorised representative?
Insurance brokers act on behalf of their client, the insurance buyer unless they are acting under a binder in which case they are acting on behalf of the insurer.  They provide advice, have technical knowledge and deal with a wide range of insurance companies.  An authorised representative is appointed by the licensee.  If they are appointed by an insurance broker, they will act as an agent of the client.  On the other hand if the licensee is an insurer or underwriting agency the authorised representative acts on behalf of them.  All authorised representatives must disclose who they act for when providing advice. 

When the FSR regime was implemented a number of insurance brokers elected not to take on the duties of a licensee and became authorised representatives.  Prior to the implementation of the FSR regime those acting on behalf of insurers where referred to as agents, selling only their products. 

Why do people use insurance brokers?
People use insurance brokers because it can save them time and money. In the same way that individuals and companies utilise the services of solicitors and accountants in relation to specialist areas, insurance brokers provide their clients with expert advice in relation to the risks associated with the property they own and the business they operate. Also, insurance brokers act on behalf of their clients; they provide professional, technical advice, which can be particularly handy in the event of claim.

What qualifications do I need to become an insurance broker?
In the first instance, all you need to get a job with an insurance broking firm is a good basic education. This may be a year 12 Certificate, a college or university qualification. Many study areas have relevance to insurance broking including business, marketing, psychology, economics, accounting, law, communication, computing and science.

Once you have a job, your employer will encourage you to undertake the formal academic courses in Financial Services which will provide you with vital skills and help you to qualify as an adviser and to attain Qualified Practicing Insurance Broker status. Click here for information on ASIC Training Requirements.

Courses cover a number of levels: Certificates II and III, Diploma, Advanced Diploma and Graduate Diploma. Each course aims to provide practitioners with the skills and knowledge appropriate to the complexity of their advisory activities and clients’ needs.

A typical study pathway involves completing Certificate III in the first stage which develops your abilities in providing risk insurance advice. After completing the next level, you are awarded a Diploma in Financial Services.Provided you are employed, this means you can qualify for QPIB status.

All courses are part-time, correspondence courses so you can complete the study at your own pace. Working at a steady pace, the first two levels take three years to complete. Course details and fee structures are available in from NIBA College qualifications information. All qualifications are internationally recognised and portable.

© 2007 NIBA College, a division of the National Insurance Brokers Association of Australia Ltd