Why Does the Mid-Market Broker Gap Exist?
The shortage of mid-market brokers in New Zealand’s insurance industry poses a major recruitment challenge. Many brokers want to advance into this space, yet the talent pool remains limited.
Mid-market broking requires technical expertise, strong client management, and the ability to handle complex commercial policies. While junior brokers aspire to move up, the transition is not always smooth. Many lack experience and employers hesitate to hire those without a proven track record. This gap leaves businesses underserved and slows career progression within the industry.
What Attracts New Talent to Insurance?
In recent years, structured qualification pathways have reshaped insurance recruitment. The New Zealand Certificate in Financial Services (Level 5) and ANZIIF qualifications have made insurance a more attractive and professional career choice.
For young professionals, gaining formal qualifications provides credibility and direction. In the past, many stumbled into insurance, but now it offers a clear career path. This change has helped attract fresh talent, but it has also altered career progression. With structured training in place, fewer people rapidly move into senior roles, which has contributed to the mid-market broker gap.
How Level 5 Certification Has Affected Career Progression
The New Zealand Certificate in Financial Services (Level 5) became a requirement for insurance brokers and financial advisers as part of the Financial Services Legislation Amendment Act 2019 (FSLAA), which came into effect on March 15, 2021. This qualification requirement has transformed the industry. The requirement for all financial advisers to hold this qualification has raised professional standards. Brokers now provide more technical and regulated advice, improving industry credibility.
However, this shift has also slowed career advancement. Previously, brokers could enter the industry without formal qualifications and gain experience on the job. While this approach had its downsides, it ensured a steady pipeline of professionals moving into broking roles. The qualification requirement has slowed this natural progression, making it harder for brokers to advance quickly. New entrants to the market should they join a business that will support them in attaining the relevant qualification will need to complete the certificate in a relatively short space of time to be able to provide advice and intermediary services to their clients.
How Can Employers and Recruiters Close the Gap?
Addressing the mid-market broker shortage requires a proactive approach. Employers, recruiters, and industry leaders must focus on talent development and career progression. Key strategies include:
- Structured Training and Mentorship – Providing clear training programmes to prepare junior brokers for mid-market roles.
- Internal Promotions and Upskilling – Developing existing teams through mentorship, professional development, and cross-training.
- Flexible Hiring Approaches – Considering candidates who may lack direct experience but show strong potential and a willingness to learn.
- Industry Collaboration – Partnering with training providers and industry bodies to address the mid-market talent shortage.
By prioritising professional growth and recruitment efforts, the industry can ensure a steady supply of mid-market brokers. In recent years we have worked with our clients in closing the gap when it comes to succession planning in their broking teams. This has yielded a smooth transition of requisite skills and the continuation of existing client relationships. The key to success lies in recognising potential, investing in development, and making mid-market broking an achievable career step.
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