The insurance broker’s main task is to identify the client’s risk exposures and seek optimal insurance coverage. Through his skills and knowledge of the insurance market, the broker will provide the most appropriate insurance solution at the best possible price. Insurance broking is legally regulated by the Insurance Broking Regulations. According to the Regulations, broking of direct insurance can only take place through an insurance broking company registered with the Financial Supervisory Authority of Norway (“Finanstilsynet”).
Finanstilsynet keeps a register of broking firms operating in Norway. Today the members represent a total of approximately 600 man-years, of which approximately 300 are authorized insurance brokers. The largest broking firms work in casualty, marine, energy and employee benefits, whereas other firms specialise in one of these fields.
The main objective of the Association
The Association will work to promote the interests of its members in their relationships with the authorities and with the insurance companies, as well as contributing to the improvement of standards among brokers and in the industry, in the best interests of the clients and of society in general.
Volume of the Industry
In 2015, insurance brokers placed insurances with a premium volume of almost NOK 26.8 billon, of which marine constituted 26 %, onshore casualty 28 %, employee benefits 41 % and re-insurance 5 %.
8 out of 10 large companies use brokers
A telephone poll conducted by the Association in 2004 among 115 of the largest companies in Norway revealed that 80 % of these companies used an external insurance broker. The main reasons for using a broker were: – – No need to build up internal competence
– More efficient use of resources (if a broker administers the insurances)
– The broker has his finger on the pulse of the market every day
– The broker is impartial and independent in relation to the insurance companies
– Enables access to the international insurance market.
We can conclude that insurance brokers are used when outsourcing is profitable for the company.
In order to secure an equal and high level of competence within the broking profession, an authorisation system was introduced for insurance brokers in 2001. The authorisation system imposes standards of compliance as well as an obligation for brokers to complete training with BI Norwegian School of Management.