Sydney-based risk specialist practice, MBS Insurance, has joined Bombora Advice in a bid to grow the independent risk advice market.
According to MBS founder, Kris Mason, the move was prompted by the life insurance reforms process, and a desire to support truly independent risk-focused businesses.
“The Trowbridge process really highlighted to us how much power was sitting with the insurers, and the advice licensees that they own. My business partners and I believe the voice of the independent adviser wasn’t loud enough in the debate, and one of the ways we can improve that balance is by partnering with an independent licensee,” Mr Mason told riskinfo.
MBS Insurance, which was started over 10 years ago by Mr Mason, operates a specialist business model that supports accounting firms by providing comprehensive risk services to their clients. Mr Mason said he believes the likely changes to commissions and remuneration in the risk sector will drive businesses to focus on true new business and growing premiums under management; a factor that will make business models like the one employed by MBS more attractive in the future.
“We have over 40 accounting firms that are outsourcing all their risk advice to us. There is a move in the accounting sector to become the ‘one-stop-shop’ for all the clients’ financial needs, but they also know they can’t do everything in-house. So, partnering with a specialist service like ours is not only more efficient and economical, it is also a way for these accounting firms to deliver a professional, holistic advice offer.
There’s a real sense of optimism about the future among the Bombora firms
“On our side, we have a guaranteed flow of new business referrals, all with specialist insurance needs (such as key person and cover for self-managed superannuation funds).
“The move to Bombora suits the MBS model as it separates product from advice and positions the practice very clearly in the independent sector – a move that will provide comfort to COIs and the accounting firms we service,” Mr Mason added.
He said the practice was also attracted to Bombora because of the like-minded businesses that are already established within the network.
“There’s a real sense of optimism about the future among the Bombora firms. They are quality risk-focused practices, who want to build a culture of sharing best practice. The remuneration reforms that are proposed are viewed as an opportunity to transform the insurance advice industry for the better, and we’re excited to be a part of that.”
