Rothbury insurance broker Kerri Bridgman talks to Insurance Business about the best part of being a broker and gives her views on the
FMA’s robo-advice announcement in this Q&A in which she also talks about the differences between a “good broker” and a “great broker”.
IB: How did you first get into insurance and being a broker?
Kerri Bridgman: Well, few people leave school to join the insurance industry, so, like many, it was by accident. I went to a job recruitment agency and they put me forward for a receptionist role at
Lumley, so here I am, still in the industry 20 years later. At least I know what a policy exclusion is now!
IB: What is the best part of being a broker?
KB: The challenge of really getting to know each business. Every industry is specialised with different service offerings. I am privileged to be able to forge long-standing relationships with my clients and know that they trust me enough to call me when they need financial advice.
IB: What’s the hardest, most challenging part?
KB: At the moment, the domestic market. Premium and Government levy increases are making it really tough for people.
IB: Why do you like being a financial adviser?
KB: I can relate to it. Insurance underpins the financial wellbeing of our country and it’s important people have the right insurance to protect themselves. It’s also really important that they manage their financial situation as best they can with the right financial advice. I can personally relate to the people I deal with and know that I can help them in these areas.
IB: What do you think of the FMA’s robo-advice announcement?
KB: Unfortunately, this is the way the world is going – but you can’t build trust and a working relationship with a robotic system. There will always be a place for expert advice from a human and as brokers we’re able to tailor that advice to our clients’ individual circumstances.
IB: Do you think financial advisers will remain relevant?
KB: Definitely. I think consumers often struggle to understand insurance and their insurance needs. As a broker, I’m here to talk to my clients in plain English to help them understand their risk and work out with them what insurances they need to protect themselves and their businesses – it’s about making sure they are covered as well as they can be. And, it is genuinely appreciated.
IB: Does the industry need more regulation?
KB: Yes and no. I work for a great company - Rothbury ensures we’re all kept up to date and across market changes and the requirements set by the FMA.
IB: If you could improve one thing about the industry what would it be? And why?
KB: The reputation of the industry. I’d like our industry to be seen as a profession. All too often the industry is perceived as just collecting premiums but not paying out on claims. I’d like to see more positive stories out there in the media – telling stories about how insurance has helped people rebuild their lives after an event or loss. If there was no insurance to protect people and their assets where would the economy be then?
IB: Where is there an advice gap in NZ?
KB: I think it is in that tailored, bespoke advice.
IB: Do you think New Zealanders are underinsured?
KB: Absolutely! But no-one ever realises it until they have experienced a catastrophic or total loss event. I would say at least 60% of fire and general claims I have been involved in that result in a total loss. It’s the typical “she’ll be right” Kiwi attitude that as brokers we have to challenge.
IB: If you could sell someone one personal insurance product what would it be?
KB: I wouldn’t be able to limit myself to just one. I think it’s important to have policies in place to protect ALL of your assets and liability. Again, thinking about the worst case scenario – I know I couldn’t financially afford to replace/rebuild everything I have in the event of a total loss!
IB: What would your advice be for a young person wanting to enter the industry?
KB: That you are not going to know everything, and you probably never will. The industry is constantly changing and there is always something new to learn!
IB: Do you think commissions are too high?
KB: Definitely not. We are providing professional advice.
IB: Should the industry be fee focused instead of commission focused?
KB: No.
IB: What makes a broker good?
KB: A good broker will get to know their client, establish what their worries are and what concerns them the most – and then work out how to get them the best protection.
IB: What makes a broker great?
KB: Standing by their promise. Putting together an insurance programme that fully protects their client from risk - give advice but also recognise the exposures your client is not aware of. To be onsite in the event of a significant claim, take the client through the process step by step and ensure they are getting the best possible outcome in a timely manner. A broker should always be their client’s advocate, without giving any false promises or misleading information. Honesty goes a very long way!
IB: Any other reflections you would like to share?
KB: I think the claims element is often overlooked. The reason people take out an insurance policy is to be able to claim when they need to. Consumers should not feel guilty when they have to lodge a claim, and their experience should not be a negative one. As an industry we should be providing more reassurance to consumers when it comes to making a claim in the event of a loss.
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