{"id":24706,"date":"2025-02-18T12:47:43","date_gmt":"2025-02-18T09:47:43","guid":{"rendered":"https:\/\/insly.com\/en\/?p=24706"},"modified":"2025-02-18T12:47:43","modified_gmt":"2025-02-18T09:47:43","slug":"qa-with-the-underwriting-agencies-council-australia","status":"publish","type":"post","link":"https:\/\/insly.com\/en\/blog\/qa-with-the-underwriting-agencies-council-australia\/","title":{"rendered":"Q&A with the Underwriting Agencies Council, Australia"},"content":{"rendered":"
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As part of Insly\u2019s expansion into the Australian market, our team recently attended the UAC 2025 Sydney Market Exchange, where we spent time meeting underwriting agencies and hearing about the opportunities and challenges they face.\u00a0<\/span><\/p>\n

Following the event, we caught up with UAC CEO, Jenny Bax, to find out more about the organisation\u2019s origins, its key focus areas, event program, and what the future holds for the underwriting agency sector in Australia.\u00a0<\/span><\/p>\n

With over 25 years of experience leading distribution, underwriting, and operational teams, Jenny has a wealth of knowledge on the insurance sector, and the vital role that underwriting agencies play within it. This is what she had to say:<\/span><\/p>\n

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The Underwriting Agencies Council was formed 27 years ago in 1998. How has the Australian UA sector changed during that time?<\/b><\/h2>\n

UAC was never intended, by its founders, to be a big player. When six Lloyd\u2019s brokers formed the organisation back in 1998, much of the impetus was to introduce higher levels of regulation on insurance sales in Australia. There weren\u2019t many Australian underwriting agencies in operation at the time, and most, if not all, were underwritten by syndicates at Lloyd\u2019s.\u00a0<\/span><\/p>\n

\u00a0<\/p>\n

These underwriting agents were concerned about being lumped in with insurers when new regulations were drawn up and needed an official voice for speaking to politicians and regulators. In the early days, it was just about being visible rather than playing an active role in the sector\u2019s development, because at that time our members were primarily focused on the international broker market.\u00a0\u00a0<\/span><\/p>\n

\u00a0<\/p>\n

In 27 years, we\u2019ve grown from six members to more than 130, spanning a diverse range of sectors and focus areas, and we are still growing. It\u2019s hard to envisage the optimum or eventual size of the underwriting agency workforce, or when and if we slow down, but we do know we\u2019d better be ready.<\/span><\/p>\n

\u00a0<\/p>\n

What role has the Council played in helping the sector to develop and grow over the years?<\/b><\/h2>\n

The <\/span>Underwriting Agencies Council (UAC)<\/b> has played a pivotal role in the growth and development of the underwriting sector by providing advocacy, networking, education, and business support for its members. <\/span>Advocacy & Representation<\/b><\/p>\n

UAC has been a strong voice for underwriting agencies, ensuring their interests are represented within the broader insurance industry. The council has worked with regulators, industry bodies, and government stakeholders to advocate for fair policies and regulations that support the sector\u2019s growth.<\/span><\/p>\n

Networking & Business Growth Opportunities<\/b><\/p>\n

UAC has fostered strong connections between underwriting agencies, brokers, and business service providers through our <\/span>Market Exchange events. These provide a platform for members to showcase their products, form partnerships, and expand their market presence.<\/span><\/p>\n

Professional Development & Education<\/b><\/p>\n

Through <\/span>workshops, webinars, and training sessions, UAC has helped members stay up-to-date with industry trends, regulatory changes, and best practices. This ensures that underwriting agencies continue to operate at a high standard and innovate within the market.<\/span><\/p>\n

Supporting Emerging & Niche Markets<\/b><\/p>\n

UAC has been instrumental in supporting <\/span>specialist underwriting agencies that cater to niche markets. By providing visibility and connections to brokers, UAC has enabled these agencies to flourish and offer tailored insurance solutions that may not be available through traditional insurers.<\/span><\/p>\n

Strengthening Industry Collaboration<\/b><\/p>\n

Through initiatives like the WhatsApp group for CEOs & MDs and the soon-to-be-launched Member Lunch Forums, UAC has facilitated open discussions among leaders, allowing them to share insights, navigate industry challenges, and collaborate on common issues.<\/p>\n

Member Benefits & Services<\/b><\/p>\n

UAC continuously seeks to add value to members by offering exclusive partnerships (e.g., the Angove Family Winemakers discount), compliance resources (such as the \u2018Compliance Corner\u2019 segment), with more partnerships due to be announced in the coming months. \u00a0<\/span><\/p>\n

Elevating the Role of Underwriting Agencies<\/b><\/p>\n

UAC has worked to increase awareness and recognition of underwriting agencies within the broader insurance sector. By partnering with industry bodies such as NIBA (National Insurance Brokers Association) for conventions and working closely with ANZIIF (The\u00a0Australian and New Zealand Institute of Insurance and Finance), UAC has strengthened the position of underwriting agencies as essential players in the market.<\/p>\n

UAC continues to evolve, modernising its membership structure, governance, and sponsorship approach to ensure it remains relevant and valuable to its members. As the sector faces challenges like the war on talent and regulatory changes, UAC is well-positioned to support underwriting agencies in navigating the future.<\/p>\n

\u00a0<\/p>\n

The UAC\u2019s flagship event, the Five Sigma 2025 Sydney Market Exchange, took place on the 7 February. What can attendees expect from the event?<\/b><\/h2>\n

The Sydney event was a huge success with 156 exhibitors and around 550 brokers attending throughout the day. These events facilitate networking between agencies, brokers, and business service members while raising awareness of products and services that can help support them and their end clients. We welcomed two new agencies, and 11 new business service members as first-time exhibitors. For me, there\u2019s nothing better than wandering around the marketplace and seeing the connections our members make on the day.<\/span><\/p>\n

\u00a0<\/p>\n

The hard market has benefitted UAs in recent years, driving an innovative and agile approach to underwriting. What will be the biggest growth opportunities for the UA sector in the next few years?<\/b><\/h2>\n

Underwriting agencies are frequently ahead of insurers themselves in having modern systems and efficient pricing models. As a result, some of our members are doing a lot of the deep portfolio analysis and segmentation for their capacity partners, to identify growth opportunities.<\/span><\/p>\n

Underwriting agencies are generally more efficient than insurers, so expense ratios are much lower than larger players, allowing them to adapt and move into different segments faster. Agility is key to competing successfully plus agencies are more disciplined than ever, giving significant confidence to capacity providers.<\/span><\/p>\n

As we see it, we\u2019re operating in an economically rational market. Capacity providers expect profitable business and underwriting agencies will continue to respond, by innovating their products, delivery methods, excesses, and pricing.\u00a0<\/span><\/p>\n

\u00a0<\/p>\n

UAs are facing\u00a0increased regulation, including CPS230, which is due to come into force this year – what does it mean for underwriting agencies and how are they preparing?<\/b><\/h2>\n

Whilst underwriting agencies are not directly regulated by APRA (Australian Prudential Regulation Authority), they are affected through their relationships with insurers who must comply. For agencies, CPS 230 means:<\/span><\/p>\n