Switching brokers isn’t a “new email signature” kind of change. It can affect your cover terms, how your claims get handled, and, quietly, but brutally, how exposed you are if something goes wrong and the paperwork isn’t tight.
So yes, shop around. But be nosy about the boring stuff.
One-line reality check: a cheaper premium means nothing if the claim turns into a mess.
Licensing: don’t guess, verify
Look, I’m opinionated on this: if a broker can’t clearly show you their licensing status and authorisations, you shouldn’t be trusting them with your risk. Not because they’re automatically dodgy, but because good operators have this ready and explain it without defensiveness.
What you’re actually checking
In Australia, most insurance broking falls under the Australian Financial Services (AFS) licensing regime administered by ASIC. You’re generally dealing with either:
– a broker who holds an AFS licence, or
– a broker who is an authorised representative of someone else’s licence
Both can be fine. The difference is accountability pathways and how the business is structured, which is why it’s worth working with experienced insurance brokers in Australia who can clearly explain where they sit.
Here’s the practical move: ask for their AFSL number (or their authorised rep details) and verify it on the public register:
ASIC Professional Registers: https://connectonline.asic.gov.au
If they hesitate, if they hand-wave, if they “get back to you”… that tells you something.
Now, this won’t apply to everyone, but if your cover is complex, commercial property, liability towers, professional indemnity, anything with big deductibles, licensing clarity is non-negotiable.
Independence (and the quiet ways advice gets “nudged”)
A broker can call themselves “independent” and still be financially nudged toward certain insurers. It happens. Not always malicious. Just structural.
Ask questions that feel slightly awkward. That’s where the truth usually lives.
– Do you operate under a dealer group or network arrangement?
– Which insurers do you place with most often, and why?
– Are there volume bonuses, profit shares, or other incentives tied to placements?
– Do you receive different commission rates depending on insurer or product?
If you get clear answers with plain-language disclosures, great. If you get a fog of jargon, you’re being managed.
And here’s the thing: a broker having preferred markets isn’t inherently bad. In my experience, some “narrower” panels still deliver excellent outcomes because the broker knows how those insurers behave at claim time. The problem is undisclosed narrowing.
Fees + disclosures: read the money trail like a sceptic
Some clients obsess over premium and ignore fees. Others fixate on broker fees and forget premiums are where the real money sits over time.
You need both.
Brokers may be paid through:
– commission (usually a percentage of premium)
– a broker fee (flat or variable)
– a mix of both
You want the full picture: total cost, not just the number that looks small on page one.
A quick benchmark-style stat (for perspective)
ASIC has repeatedly highlighted poor disclosure as a recurring issue across financial services, insurance included, through its enforcement and oversight work. One public example: ASIC’s 2023 enforcement outcomes emphasised misconduct themes such as misleading conduct and disclosure failures across sectors (source: ASIC, Enforcement and regulatory updates 2023):
https://asic.gov.au/about-asic/news-centre/find-a-media-release/
That’s not saying your broker is doing anything wrong. It’s saying disclosure is a known weak point in the market, so act accordingly.
Product access: what you think you’re shopping vs what you actually get
A lot of people assume brokers “search the whole market.” Sometimes they do. Sometimes they absolutely don’t.
You’re looking for specifics like:
– Which insurers are realistically available for your risk class?
– Any markets they won’t approach (and why)?
– Whether they can access specialist underwriters (especially for niche industries)
– How many quotes they typically obtain for a placement like yours
If you’re in a higher-risk category, construction, hospitality, professional services with complex liabilities, market access is the difference between “covered” and “covered-ish.”
And don’t let anyone sell you the fantasy that more quotes always equals better. I’ve seen three well-chosen markets outperform ten random approaches, because the broker knew underwriting appetites and didn’t burn the risk early with messy submissions.
Claims: the real service you’re buying
If a broker is vague about claims support, I’d switch on that alone.
Not because you’ll claim every year. Because when you do, you’ll want someone who can actually drive the process instead of forwarding emails and calling it “advocacy.”
Ask them to walk you through their claims handling in a way that sounds like a process, not a vibe:
– When a claim is lodged, what happens in the first 24, 72 hours?
– Who is your point of contact (a named person, not “the team”)?
– How often do they update you without being chased?
– What’s their escalation path if the insurer stalls?
– Do they help you frame the claim and gather evidence, or just submit forms?
A good broker doesn’t promise outcomes. They promise conduct: timelines, communication, documentation standards, and pressure at the right moments.
One-line emphasis: Claims are where “cheap” cover goes to die.
Credentials and capability (beyond the badge on LinkedIn)
Some sections are boring for a reason. This one matters anyway.
You’re checking:
– industry qualifications and training relevant to your cover type
– experience with your sector’s claims patterns
– professional development (ongoing, not “I did a course once”)
– any history that suggests repeated compliance problems
Also: how they think.
Give them a scenario and see what happens. Example: “If a policy exclusion conflicts with how we actually operate day-to-day, what do you do?” A strong broker will talk about risk profiling, endorsements, insurer negotiation, and documenting advice. A weak one will go quiet and pivot to price.
Slightly informal but crucial: can they actually manage the switch?
A broker change can be clean. It can also be a slow bleed of missing documents, mismatched renewal dates, and coverage gaps that nobody notices until you’re standing in a burnt-out shopfront.
So get practical.
What a competent transition plan includes
– written scope: what policies they’re taking over and when
– a document handover list (policies, schedules, endorsements, claims history)
– continuity checks so you’re not accidentally uninsured mid-term
– a clear outline of who contacts insurers and how authority is handled
– disclosure documents delivered early, not after you’ve agreed
If they can’t give you a crisp plan, expect a messy handover.
Regulatory alignment (yes, it’s not just “red tape”)
You’ll hear a lot of casual references to “regulations” in broking conversations. What you want is evidence they respect the framework, not just name-drop it.
– ASIC is the primary conduct and licensing regulator for financial services like insurance distribution.
– APRA prudentially regulates insurers (not brokers), but the insurer’s APRA obligations shape how underwriting, claims reserves, and solvency decisions play out.
A broker who understands the ecosystem tends to give better guidance, especially when an insurer’s internal risk appetite shifts and suddenly your renewal gets… weird.
The gut-check question I’d ask before signing anything
If you had a large claim tomorrow, would you trust this person to fight cleanly, document properly, and stay on your side when it gets uncomfortable?
Because that’s the job.
Premium is part of the story. Licensing, independence, disclosures, market access, and claims capability are the plot
