Independence issue surfaces

A controversial move to allow semi-tied insurance brokers to join the Life Brokers Association (LBA) has been defeated.

But three of the four LBA members behind the remit have been elected to the association’s ruling board.

The remit was hotly debated by LBA members at the association’s annual conference and meeting in Queenstown last week. It would have allowed brokers who are committed to doing 85% of their business with groups like SovNet to join the LBA. Currently members must be independent.

The proposed change was an effort to boost membership from the current level of about 150. It was promoted by four existing members; Ven Plummer, Barry Vincent, Ross Collett and Judy Osborne, says LBA president Dave Craven. Following intense debate before and during the meeting the remit was defeated.

However, Craven - who voted against the remit – says the election of Vincent, Collett and Osborne to the LBA’s board shows the vote outcome wasn’t "personality driven".

Other members elected to the board are Ron Bird and Craven, who remains president.

A remit to reduce the board’s size from nine members to six was also passed, and Craven says the sixth board member will be added soon.

He says the entire LBA board came up for re-election at the meeting because of an error made when the association’s constitution was redrafted. Previously, members came up for election every two years. The board hoped to revert to the longer terms but would have to hold a special meeting of members to approve the change, or wait until next year’s annual meeting, he says.

Members also voted to reduce the number of vice-presidents from two to one, with that post now taken by Collett.

About 50 members attended the two-day conference.