As with any financial field that deals closely with the economy, insurance broking is sensitive to national and global economic and political changes.
Risk perception is a field of academic study that is also growing in importance. The landscape of insurance broking has changed significantly since the technological revolution and the interconnected nature of global conflict.
An insurance broker will have specialised knowledge in a particular insurance product, which they will sell by using their expertise to tap into the current needs and concerns of their clients.
9 products an insurance brokers sell:
- Commercial and business insurance - this includes professional indemnity insurance, public and product liability and management liability, as well as many others.
- Travel insurance - this usually includes medical cover, emergency cover, flight delay and more. According to the Australian Bureau of Statistics, over 9 million Australians travelled overseas in 2016, reflecting a 5 percent increase from 2015. This is an area of growth for insurance brokers and InsureTech is already tapping into this market.
- Home and contents insurance - this would cover natural disasters, accidental damage, theft and loss.
- Vehicle insurance - whether it’s for a car, scooter, motorbike or bicycle, this covers people for damage, theft and collision.
- Life insurance - you’ve seen the ads on daytime commercials. Life insurance is one of the most important types of insurance and is there to ultimately protect the financial security of the family of the deceased person.
- Cyber insurance - this can cover cyber attacks, damage from viruses, privacy and data loss recovery. The projected value of cyber insurance by 2020 is $7.5 billion, which strongly suggests an emerging industry with strong future growth.
- Security - according to Action Insurance, the security industry has been long regarded as being high risk. Security insurance might cover crowd control, damage to on-site surveillance systems, alarms and a lot more.
- Owner-builder insurance - this covers homeowners while construction occurs, and cover when homeowners are going through the process of selling.
- War risk insurance - this is obviously less relevant to the average Australian, but unfortunately, as a result of conflict war, insurance is an emerging industry. This type of insurance is relevant to the movement of goods, services or people conducted in riskier zones — usually aviation and shipping. It can cover invasion, terrorist acts, hijacking, kidnapping and ransom.
This list shows just how diverse and interesting the various insurance products can be. It means that depending on their interest area, those interested in insurance broking as a career can specialise in the insurance products that really interest them or which they really care about.