Kirk Austin lists out a few salient points that will strengthen the market for insurance brokers and lead to top and bottom line growth.

“Professional is not a label you give yourself – it’s a description you hope others will apply to you.”

– David Maister

One of the privileges I had a few years ago was to attend a presentation given by David Maister, a Harvard Business School professor whose field of speciality is the management of professional services firms. What enthralled me that day was the conviction with which he delivered the phrases: “True Professionalism”, “Trusted Advisor” and “Passion, People, Principles.”

His words resonate with me now as much as they did then.

To paraphrase Maister, the key point was that in adhering to his defined Principles, any short term diminishment of revenues resulting directly from professional conduct will, over time, be more than recompensed by the reputation earned for being honest.

These days every broker environment is experiencing intense pressure to achieve continual growth of both top and bottom lines. What we must strive to do is find a balance between those goals while maintaining a conduct that leads others to describe us as professionals.

In Qatar, I think it fair to say that the insurance market in general is still developing. Certainly, the broking sector is nascent. There is still sometimes a reluctance among other stakeholders to fully accept the broker’s role.

I think a lot of this stems from a general need to improve professionalism within our sub-sector; to build trust and engender, in those outside it, a sense of value in what we do. Put another way, if we are to gain universal acceptance within the marketplace (as well as from among our potential client base), then I contend that professionalism is the key.

In any developing market there will be shortcomings: the Qatari insurance broking market is no exception to this rule and it would be unproductive to pretend otherwise. Rather, our task should be to recognise what those shortcomings are and replace them, incrementally, with international best practice. In doing so we will gain the trust of insurance providers and buyers alike, thus opening up a wider market in which we might participate.

Brokers’ Association

One of the ways we might build this trust is to form our own Brokers’ Association. By showing that we have the inclination to be self-critical – to self-regulate, even – we will achieve several objectives. Among them, we will demonstrate:

·      Our commitment to serving our sector of the market responsibly and with integrity;

·      Our acknowledgement that there are areas in which we can improve;

·      That we are committed to continuous self-appraisal in order to bring about that improvement.

From a client-facing perspective we will be able to explain in a more effective way – through a dedicated “consumer” portal on an Association website, perhaps – how a broker represents their interests throughout the service cycle: not least extending to claims management.

Through all of this we will gain credibility as a vital component within the risk analysis-risk mitigation-risk transfer chain, securing our position and garnering a larger slice of the market as a whole.

Around the world, Brokers’ Associations are commonplace, with the result that a blueprint for a similar body in Qatar is already halfway there. Taking the Singapore model as an example, it may be seen that many of their Association’s core values directly address the aims mentioned above:

.  To promote the general efficiency and professional conduct of all members so that they may be able to play their role in the marketplace as responsible, qualified and trustworthy practitioners who can be relied upon at all times;

.  To enhance the interests of all members in promoting the importance of the advice and expertise offered by the independent intermediary in the sale and purchase of insurance and/or alternative risk solutions;

. To propose, establish, implement and enforce rules and regulations, professional standards and codes of conduct for the promotion and safeguarding of the interests of the public, members and the wider insurance community;

. To provide a central organisation and platform for all members in order that their collective individual voices may be heard in the wider business community and among regulatory bodies;

.  To encourage the training and education of all those practising or intending to practice the business of insurance broking.

There are other models, such as Hong Kong’s Professional Insurance Brokers’ Association (PIBA) that we might also use as a reference point if and when forming an Association here. (In PIBA’s case, the Association not only acts to promote the broking industry, but is authorised to regulate it.)

To recap, it is my belief that by establishing a body which has the clear intention to self-assess, challenge existing norms, set itself goals and foster professionalism among its members we will, as a sub-sector, strengthen our position. We will gain the trust of those hitherto skeptical of the value we bring, promote the concept of insurance generally and assume a more prominent position within the market, to the benefit of all members.

Meeting clients’ needs

Fundamentally, what matters most is whatever is in the client’s best interests. I say this because it is the client, ultimately, who dictates the size of the market and our opportunity to grow.

Once the role of intermediation assumes a wider acceptance, a greater cooperation between insurance providers and brokers will result. By pooling our complementary skills, resources and inclinations – the underwriter’s natural conservatism and the broker’s verve, for example – better solutions that more closely match clients’ needs will result.

Ultimately it is our job to provide clients with the best risk transfer solutions available. By doing so, we will foster the reputation of the insurance industry as a whole, leading to the promotion of insurance as a concept among a traditionally unconvinced audience.

If we, the broking fraternity in Qatar, can help grow the insurance market – and our participation in it – then those dual goals of top and bottom line growth will be much easier to attain. If we can do so whilst enhancing our professionalism then we will have done well.

Conclusion

Returning to David Maister, the reputation earned for being professional, for acting with sound principles and integrity, for being professional, will always recompense over the long run for any short-term loss.

So let us work together, driving forward to reach the day when those outside our sub-sector will use just one word to describe us – professional.