The National Insurance Brokers Association (NIBA), the peak body for Australia’s intermediated insurance industry, was founded more than 40 years ago. A NIBA representative told IB that its foundation was the result of two organisations joining forces: the Cofederation of Insurance Brokers of Australia (CIBAust) and the Insurance Brokers Association (IBA).
Now, Insurance Business is exploring the origins of Australia’s most important representative body for insurance brokers.
Back in 1982, Robin Nisbet (pictured above) – director of Sydney based Armstrong Nisbet Group – was a founding director of NIBA.
“In their wisdom, my fellow brokers elected myself and Robert Kelly, who now heads up Steadfast, to join the originating board of NIBA,” he said. “Establishing NIBA was very important because it enabled us to speak as one in representations to government and the ICA [Insurance Council of Australia] and to promote standards, values, ethics and a Code of Conduct for Australian brokers.”
He said NIBA’s formation marked a turning point for Australia’s insurance industry. Nisbet said its foundation was also about recognising the value of insurance broker contributions to clients and acknowledgement of that by the community and government.
“So NIBA was a critical milestone in the development of the insurance broking industry and I was privileged to be part of that,” said Nisbet.
During the previous decade, federal regulators started introducing the legislation that would transform Australia’s insurance industry.
“The Insurance Act 1973 meant that APRA [the Australian Prudential Regulation Authority] was increasingly committed to regulating the general insurance industry,” he said. This Act, according to online sources, set minimum capital and solvency requirements for companies wanting to operate in the insurance market.
In the lead up to NIBA’s formation, Nisbet recalled various broking associations during the 1970s, including IBA and the Lloyd’s Brokers Association.
“IBA had a large number of smaller members, whereas Lloyds Brokers Association represented larger international brokers who were certainly the preeminent force in terms of prestige and market position,” he said.
Nisbet said, during this time, Treasury officials who were considering new regulations for insurance brokers, were very surprised to find that regulating the industry would cost much more than the actual amount of misappropriation of premiums from retail customers.
“The NIBA board played a very important role in the Insurance Brokers Act 1984 which reflected a high level of recognition and responsibility accepted by the broking fraternity,” he said. “It is with considerable satisfaction that I was able to contribute, in a small way, to the great enterprise that is now NIBA.”
When IB suggested that NIBA’s willingness to voluntarily regulate itself set the tempo for its future relationship with government and other stakeholders, Nisbet agreed.
“Absolutely,” he said. “NIBA represented all Australian brokers and we were able to achieve complete agreement on a range of difficult issues such as security of premiums for customers and insurers through trust accounts, a code of conduct and client commitment - all of which are the norm today.”
IB reached out to NIBA for comment on this article. Current CEO Phil Kewin acknowledged the importance of his organisation’s formation four decades ago.
“There were several Associations in the 70s and all played an important role in advocating for brokers,” said Kewin. “However, it was the formation of NIBA in 1982 which was the most important step to ensure that brokers had one voice representing them at government and with other key stakeholders.”
Early in March, BMS Group (BMS), the global specialist broker, announced the acquisition of Armstrong Nisbet Insurance Brokers (ANIB), the brokering division of family owned Armstrong Nisbet Group.
After more than 50 years in the industry, Nisbet said he isn’t about to go anywhere. “I’m not hanging up my shingle” said Nisbet, in a podcast interview with IB Talk.
“Our clients are basically accepting the changeover because they accept that Belinda [Nisbet] and I will continue to manage their accounts as BMS,” said Nisbet. “One of the motivating reasons for us to sell was that the business has grown to the point that we needed a global partner who was going to be there for our major corporate clients.”
One of Armstrong Nisbet’s early insurance projects included finding coverages for the third stage of the construction of the Sydney Opera House.
“It was one of the most spectacular opportunities that any broker in the world could have had,” said Nisbet.
Do you remember when NIBA was founded? Please share your memories of this important time below.
