The role of a Domestic Insurance Broker
Choosing insurance broking as an occupation provides an array of benefits that make it a rewarding and dynamic career choice. As a Domestic Insurance Broker (or sometimes called Personal Lines Broker), you have the opportunity to build and maintain meaningful connections with clients. It also promotes professional fulfilment through identifying needs and providing solutions.
You will act as an advocate for your clients when liaising with direct insurers and champion their best interests. The role allows for autonomy as you would have the opportunity to manage your own portfolio of domestic insurance clients. As the insurance landscape evolves, brokers remain at the forefront of innovation with new insurance products and processes.
This profession provides a sense of accomplishment as you witness the direct impact you’ve had on your clients. Helping clients make informed decisions, protecting their assets and securing their futures adds a sense of purpose to your work.
Insurance Brokers defined
A broker simplifies the insurance process by advising their clients on available options after thoroughly assessing their risk profile. Backed by an industry certified qualification, an Insurance Broker provides advice around commercial or domestic insurance products and policy.
Once an appropriate policy has been located, the broker will then present their findings to the client. If required, they will then go back to the insurer and negotiate policies and premiums according to their clients’ preferences. An Insurance Broker will act as an advocate on behalf of their clients when liaising with direct insurers. Managing a portfolio of accounts, an Insurance Broker is the main point of contact for any questions or concerns. They can work with both organisations and individuals to find the most favourable insurance cover for them.
Domestic Insurance Brokers handle the insurance life cycle on behalf of their clients, from risk assessment and renewals to claims management. The Insurance Broker acts as an intermediary between their clients and direct insurers to come to the most client-centric outcomes.
Entering the industry
In order to become an Insurance Broker, you’ll need to complete a New Zealand Certificate in Financial Services (Level 5). There are several specialisations in this certificate that pertain to providing different categories of financial advice. They go as follows:
- General Insurance
- Residential Property Lending
- Life, Disability and Health Insurance
- Investment
Only the General Insurance Strand is required to become a fully qualified Insurance Broker. Once you are qualified, you will be able to provide regulated financial advice around Fire & General Insurance.
Many brokerages will provide structured pathways and will sponsor aspiring brokers in order for them to obtain this certificate.
Becoming an Insurance Broker is an accessible and inclusive career that welcomes individuals with diverse previous experiences.
It’s beneficial to have had prior experience in an insurance claims or sales-based environment when considering a career in broking.
While previous experience in insurance or financial services can be advantageous, it’s not a requirement as you will often receive “on the job” training.
Mastering success as an Insurance Broker
Effective negotiation and analytical skills contribute to a broker’s ability to secure favourable terms for their clients. Strong networking capabilities will enable you to build and maintain relationships with clients, insurers and other industry professionals.
A blend of interpersonal skills and a strong business acumen is paramount to setting a Domestic Broker up for success. It’s important to maintain empathy and work with a client-centric approach as you liaise with internal and external stakeholders. You need to maintain a strong working knowledge of insurance products and services to ensure your advice is accurate.
Progression opportunities
From specialising in niche markets to broadening your scope within general insurance, there are endless opportunities for growth and development. While some brokers stay within the domestic insurance space, many treat it as a springboard to enter other specialisations. After making the initial transition to Commercial Broking, most will start within the Small to Medium Enterprises (SME) space. While working with SMEs, you’d learn about the fundamentals of commercial insurance and some of the more common commercial lines. Beyond working in SME are specialisations such as Rural, Marine, Cyber and Liabilities.
Salary bandings
Broker salaries reflect a blend of skill, experience and the value brokers bring to their clients. While entry-level positions can offer competitive packages, salaries grow significantly as Insurance Brokers develop their portfolios and expertise.
Salaries can vary depending on factors such as specialisation, client base and the brokerage’s size and reputation. A Domestic Broker’s salary can range from $60,000 to $80,000 based on experience. The BASE salary band for junior Commercial Brokers sits higher at between $85,000 to $95,000. Senior Commercial Brokers and Corporate Brokers have the earning potential of between $100,000 to $140,000, based on experience. While benefits do vary between brokerages, some of the more common incentives go as follows:
- Flexible working arrangements.
- Life or health insurance.
- Commission or a bonus structure.
- Internal progression and career development.
Additionally, brokers who are consistently adapting to industry shifts have the potential to enhance their earning potential. Many brokerages provide ample room for advancement, enabling established Insurance Brokers to pursue leadership and mentoring opportunities.
Once a broker has built a client base they tend to reach a very healthy income based on base salary, commission and benefits which often includes a company vehicle.
Current job openings
Domestic Broker – East Auckland
Insurance: Domestic Broker – East Auckland
Personal Lines Broker – Wellington
Insurance Brokers: a growing need
With the climate shift becoming more evident, this year has seen significant changes occur across New Zealand’s economy and environment. With “once in a lifetime” events seemingly happening every few months, the impact has been felt across the nation.
Through incidents like business disruption or damage to personal possessions, many individuals have been reconsidering their insurance cover options. Insurance is no longer a one-size-fits-all concept and individuals face unique risks that demand tailored protection. 2023 has been an extremely busy year for the insurance industry, with a growing need emerging in the broker space. It has been exciting and intriguing to see the expansion and adaptability of this mature industry in motion.
If you want a change of career and think that you have the core skills to become an Insurance Broker then please reach out to Gary Bloxham on 09 974 9072 to find out more.
Here at Tyler Wren, we know good people know good people, that’s why if you refer someone to Tyler Wren, with whom we secure a new role, we offer a voucher of *$600. Click here to refer a friend.
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