As the new president of the Liechtenstein Insurance Brokers Association (LIBA), Daniel Koller wants to raise the profile of the broker profession.
As the new president of the Liechtenstein Insurance Brokers Association (LIBA), Daniel Koller wants to raise the profile of the broker profession.
Mr. Koller: What are your most important goals for your new office as LIBA President?
Gaining more members is one of my main goals. Our association is still small and manageable with seven member companies – five of them in the non-life sector and two in the life sector. The entire market in Liechtenstein registers 55 registered brokers.
What do you expect from new members?
As new members, we would like to see brokers who, with their competence, experience and expertise, can complement the capabilities and existing field of activity of LIBAand generate added value for the Liechtenstein financial center. As volunteer leaders, we focus on working together. Synergies and complementary expertise are desirable. The common goal should be to make the broker’s professional image better known to the public in and outside of Liechtenstein, and thus to highlight the advantages of client service by a broker.
Is there a specific issue you would like to address for members as LIBA president?
My main concern is to promote more respect and understanding. The profession of broker is often classified as a minor matter, virtually an appendage of insurance. Insurers themselves regularly treat brokers like an annoying nuisance or unnecessary intermediary. As an association, we are committed to demonstrating the importance of the broker as a good, reliable partner to insurers and a competent steward of the customer.
Where exactly is respect and understanding lacking?
For example, it happens again and again that the insurer sends letters directly to the broker’s clients without the broker being informed about it in advance. The client reports to the omitted broker, who stands there ignorant as a fool. This is particularly inconvenient if the contents of the letter are incorrect.
It is even more extreme when the insurer contacts the customer directly or even meets the customer in person without informing and updating the broker. One can imagine the problems this leads to.
And with regard to supervision?
The supervisory authority regularly publishes guidelines for insurers, which are then transferred more or less one-to-one to the broker for the sake of simplicity. Completely different modes of operation often apply to the insurer and the broker.
For example, underwriters and brokers have to monitor transactions as part of due diligence. In this case, no transactions take place at the broker, which logically cannot be monitored.
Where do you see the biggest challenges for insurance brokers right now?
Most certainly, this is the dense, impenetrable regulatory jungle. As in the entire financial world, conditions in the market are becoming increasingly confusing and, in my opinion, are heavily over-regulated. It has long since ceased to be a matter of consumer protection.
In view of the many regulations, there would certainly be a great need for explanation …
In principle, yes. We are currently in a tough market: insurance sums are being run down, insurance premiums and deductibles are rising enormously, capacities are shrinking, coverages are being curtailed and reorganizations are taking place. In this environment, the quality of service provided by insurers is declining, for example in the settlement of claims in the non-life line of business. All this in the face of increasing formalities and bureaucracy, which in turn makes it more difficult to provide care. All this in the face of increasing formalities and bureaucracy, which in turn makes it more difficult to provide care.
With Covid-19, a new risk has been added. How do brokers deal with this?
Brokers generally did not have tremendous restrictions in the Corona era. Only the cultivation of contacts suffered, because personal meetings and social events were clearly neglected.
And with regard to the customers?
Some risks, such as damage caused by the Corona pandemic, cannot currently be insured at all. Insurers have even moved to exclude communicable diseases as far as possible in all policies in the case of business insurance. Some risks, such as damage caused by the Corona pandemic, cannot currently be insured at all.
There are more and more standard insurance policies that can be taken out online at the click of a mouse. What will brokers focus on in the future?
Despite digitalization and the Internet with free access to information, many customers still value personal advice. Put simply, the broker always comes into play when it comes to complex and customized or special insurance solutions.
In Liechtenstein in particular, we have to deal with an international clientele on various occasions. Cross-border constellations and language challenges are part of our daily business.
Where is broker advice in particular demand today?
Independent brokers see themselves as representatives of the customers’ interests. We accompany them from the initial consultation through ongoing support to claims settlement and also in special situations. Increasingly, new services such as comprehensive risk management are also being offered.
Especially in times of the hard market, the services of brokers are in great demand and the need for advice is high. This also applies to the corporate business. Most SMEs use brokerage services.
How do you perceive the Swiss market?
A peculiarity of the Swiss market is the very good penetration of local agencies of the insurers and thus the proximity to the customer. The trust and competence in personal conversation is still very important.
What contacts does the LIBA have with the Swiss brokers’ association SIBA?
All members of the LIBA also have a presence, cooperations or representative offices in Switzerland. Various members of LIBA are also members of SIBA through its Swiss presence.
There was no exchange at the association level until recently. When I took over as LIBA President last December, I simply took the initiative and contacted my Swiss colleagues. And now there is a constructive dialogue between the Presidium of SIBA and LIBA, which we want to intensify further in 2022.
Both associations can complement each other well. SIBA scores among others with its size and professional structures, LIBA has best knowledge about European standards and frameworks.
Do you expect consolidation in the broker market in the next few years?
Absolutely, the trend is clearly going in that direction. Brokers will merge, while others will surrender their licenses. As a result, market momentum is likely to be lost somewhat, and the increasing density of regulation will slow down processes even further. In return, the quality standard of the market participants is likely to increase.
