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DiscoMick
31st December 2011, 08:14 AM
I sense there's an opening for more independent finance/insurance brokerages in this country, but I don't know enough about it to know if it would be viable.
The English mags are full of finance/insurance ads., but here there's rarely many. There's TCIS and one finance operator regularly advertising.
How many people out there just take whatever their existing insurer is offering, without doing much comparison, which is time-consuming.
Finance is also problematic, with some people just going with their bank or dealer finance or a motoring organisation. Comparing finance details is not only time-consuming but very difficult to get a proper comparison, with deals described in various ways that make it difficult to properly compare them.
Another issue is finance for casual workers. About 40% of the workforce is casual now, I read, and they often have trouble getting finance. Tradies would know about this, sometimes being made to produce two years of income before they can get a loan. People on pensions, student support or similar also have many finance issues.
The big operators also have rules which may not fit the needs of people who actually USE their vehicles. For example, its often not worth insuring a clunker worth say $5000, so many only are covered by third party. Another example is mods and accessories. For example, AAIME only lets you cover accessories to 85% of the value of the vehicle. When I made a list of every accessory and mod. they were worth more than my Disco, and its only a tourer, so imagine how difficult it could be for a vehicle with major mods!
Accessories may also have to be permanently mounted to come under vehicle insurance. So, a UHF may be covered if its permanently mounted, but not if its a hand-held in the glovebox. Think of the value of GPSs, computers, radios etc in many 4WDs. I tried to get a diff locker covered and the operator didn't know what it was and it wasn't on her pull-down menu, so no coverage.
Coverage for going off gazetted public roads is also an issue with some insurers.
So, I sense there's an opportunity there for more independent insurers/financiers. Independent housing mortgage brokers seem to do well, and it could also be done with vehicles I think, but I'm not an expert in this field, so what do you think? Could it be a goer?

PhilipA
31st December 2011, 10:03 AM
I sense there's an opening for more independent finance/insurance brokerages in this country, but I don't know enough about it to know if it would be viable

The major problem for insurance brokers for 4WD insurance is that claims for 4WD club based cars is far higher than the normal population.TCIS had had enormous problems finding and keeping underwriters because of this.

I only know this because Malcolm Jones ( ex NSW Outdoor Recreation Party) is a member of my 4WD club and an Insurance broker . He gave us a talk on these difficulties a few years ago. I am sure Malcolm would have been in there setting up if he saw an opportunity.

So there is not this golden opportunity waiting for someone to walk in and start up. I believe that the underwriters for TCIS only continue because of the large volume of business that TCIS generates through its support by the 4WD clubs.
Regards Philip A

3toes
1st January 2012, 09:25 AM
I sense there's an opening for more independent finance/insurance brokerages in this country, but I don't know enough about it to know if it would be viable.

The English mags are full of finance/insurance ads., but here there's rarely many.

People on pensions, student support or similar also have many finance issues.


The brokers you see in the UK mags are just fishing for business. As the adds are very expensive they must attract enough customers to justify the outlay.

The insurance market here in the UK is much more difficult to negotiate than the one you experience in Australia. Cover on anything which is not exactly as it left the factory can be impossible to find unless you use a broker. Same if you do not have a good no claim bonus record.

When I first came here had to take a company car as no UK insurance company would recognise my no claim bonus record from Australia. That included the one I had been insured with in Ausrtralia. Perhaps they are just not used to people moving in the other direction?

My knowledge on the current rules in Australia regards finance are now a few years out of date so am ready to be corrected on this. People on government support are classified as being on a subsistance income. Borrowing is classified as a luxury. Now you can lend to someone in this category however if they are unable to pay they can go to the tribunal who will wipe the debt as it is a luxury and people on subsistance cannot afford luxury iterms like borrowing.

Have been in the position where we had one government department threatening us as we would not lend and so were discriminating against those on government support and the other on to us as we had given a loan to someone who now did not want to pay us back.

DiscoMick
2nd January 2012, 09:13 AM
Yeah, I'm sure its complicated by people doing the wrong thing.
My daughter, who is a uni student, just scored a low-interst loan to buy a laptop for her studies, but she'll pay it back, unlike some. A good credit record helps.
Overseas we've seen micro-loans business help a lot of poor people.