1. Members Report: PIC Insurance Brokers Ltd
AAA Conference | 24 May 2019
Beijing, China
Members Report: PIC Insurance Brokers Ltd

2. AAA Members Report – New Zealand
Country: New Zealand
Name of Member: PIC Insurance Brokers Limited
Membership details (update)
- Annual Premium Turnover: 72,000,000
- Number of Staff: 78

3. AAA Members Report – New Zealand
Countries of Operation: New Zealand/Samoa
Location: Auckland, Hamilton, Tauranga, Pukekohe, Timaru, Christchurch

4. AAA Members Report – New Zealand
Premium by risk and Policy count (Fire and General only)

5. AAA Members Report – New Zealand
Professional Indemnity Details (update)
- Limit of Indemnity: $20,000,000
- Legislative Requirements: $1,000,000
- Insurers: AIG Europe, Hamilton Underwriting Ltd
Dual Corporate Risks Ltd

6. AAA Members Report – New Zealand
Who regulates Insurance Brokers in the country: Ibanz, FMA, Insurance Ombudsman
What Insurance Broker and Agent Education Programs exists: Australia/NZ Institute, IBANZ College, In house training and Webinars
How many Insurers operate in the country: 42
How many Insurers are active Broker markets: 15 Fire and General 16 Life and Employee Benefits

7. AAA Members Report – New Zealand
Market Conditions
- Number of Insurers decreasing, increasing, stable:
Stable
- Insurance capacity decreasing, increasing, stable:
Stable but becoming difficult for Earthquake cover in some regions
due to capacity
- Premiums decreasing, increasing, stable: Increasing but not as bad
as 2018
- Commissions decreasing, increasing, stable: Stable
- Amount of fee income as a percentage of total Broker income:
5%-7%
- Average Broker income percentage earned as commission:
Marine 10%-25%, Motor 10%-17.5%, Others 20%-25%

8. AAA Members Report – New Zealand
Number of Brokers decreasing, increasing, stable: Still Decreasing as they join clusters and IAG restructure with Bonus brokers
Percentage of business controlled by Brokers: n/a no figures available
Percentage of business controlled by insurers (direct): n/a no figures available
Percentage of business controlled by other intermediaries e.g. banks: no figures available but decreasing due to regulation

9. AAA Members Report – New Zealand
Information Technology used by Brokers (including online platforms): Totem system developed by PIC it is now fully functional and proving to be in valuable in developing business strategies and reporting especially when dealing with underwriters as our reports are more accurate and up to date than theirs which gives us a huge advantage

10. AAA Members Report – New Zealand
Political issues at time of report: Have ended up with a very naïve and inexperienced government who seem intent on setting up committees to solve there issues and then don’t follow through on anything .The main problem is no one in cabinet has ever run a business
Economy at time of report: Static as the government are not giving businesses any confidence or guidance
Member’s view of Insurance Broking over the next 3 years: Will grow progressively as people are starting to realise that they get the proper advice and cover from brokers - Government is finally looking realistically at moving FSL away from insurance

11. AAA Members Report – New Zealand
Member’s principle activities/successes over last year: Getting everything onto our new platform we know where we are at on a daily basis and can derive all sorts of reports from the system. It is live 24/7. It is also compliant with the proposed regulation and can be integrated with most underwriters systems
Any major issues/challenges: Finding sound quality staff
Member’s planned activities over the next 3 years: Acquiring a few IAG bonus brokers and getting their business integrated into our system

12. AAA Members Report – New Zealand
Any potential business/opportunities for AAA members to work together: If any member is interested in the Totem system we are more than happy to arrange for someone in our IT team to arrange a demonstration. It can be adjusted to be made compliant in most countries.