Brokers help clients weather the economic storm
New Zealand's professional association representing the interests of insurance brokers, risk managers and consumers.
IBANZ gives strength and support to members enabling them to better meet their challenges and opportunities.
We achieve this through staying involved with government activity and legislative reform impacting the insurance industry, and more specifically fire and general brokers and their clients.
We focus on providing high quality presenters who speak on a variety of fire, general and business topics under our Continuing Professional Development (CPD) offering to support members deepen their knowledge and broaden their skills.
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Welcome to the spring edition
Inthe latest issue of CoverNote, we delve into the pressing economic indicators that are shaping the landscape for our members. One of the most telling signs of economic health, or the lack thereof, is the increasing frequency of missed instalments and delays in settling invoices. This is often referred to as the 'canary in the mine', signalling deeper economic troubles ahead.
Our members have reported a noticeable uptick in these financial delays, which not only affects their cash flow but also raises concerns about the broader economic environment. The high price of insurance is another critical factor that is compounding these issues. With premiums rising over the past 18 months, businesses and individuals alike are feeling the strain, making it more challenging to maintain adequate coverage.
CoverNote’s lead story this month explores these trends in detail, providing insights from industry experts and realworld experiences from our members. The consensus is clear: the economic landscape is fraught with uncertainty, and the insurance sector is not immune to these pressures.
Adding another layer to the discussion is the recent CrowdStrike incident. Although this particular issue was not covered by a cyber policy, it underscores the growing reliance on technology in our society. The incident has sparked a conversation about the importance of cyber insurance, especially given its historically low uptake, particularly among small and medium-sized enterprises (SMEs).
Despite the clear risks, many SMEs have been reluctant to invest in cyber policies. This hesitancy can be attributed to several factors, including cost concerns and a lack of understanding about the coverage and benefits of cyber insurance. However, as technology becomes increasingly integral to business operations, the potential for cyber threats grows, making the need for adequate protection more critical than ever.
The CrowdStrike incident serves as a wake-up call, highlighting the vulnerabilities that exist in our digital infrastructure. It will be interesting to see if this event triggers a shift in the market, leading to increased demand for cyber policies. Industry experts suggest that education and awareness campaigns could play a pivotal role in driving this change, helping businesses understand the value of cyber insurance and how it can safeguard their operations.
Appointments
29. Chubb appoints new APAC president
29. Chubb names Australia and New Zealand country president
30. Swiss Re Corporate Solutions names country head for Australia & New Zealand
31. WTW appoints Baum to senior roles
31. WTW makes M&A hire
33. Rothbury hires Shane Ohlin as chief information officer
CoverNote is the official publication of IBANZ and is distributed FREE on a quarterly basis (March, June, September, December) to members throughout New Zealand and associated companies. Additional copies are available at a cost of $7.50 per copy, or 12 month (4 issues) subscriptions at $30.00, inclusive of postage and packaging. The articles or opinions featured within this magazine are not necessarily the opinions of the publishers or IBANZ, and they do not accept responsibility for the content of articles featured within the publication. No part of this publication may be reproduced without the written permission of the publisher. The publishers do not accept responsibility for loss or damage to unsolicited photographs or manuscripts.
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Welcome Jai Singh and discover Apex: PSC Connect NZ Ltd’s latest innovation
We are excited to announce the appointment of Jai Singh as the National Manager IT NZ at PSC Connect.
Jai joins us with an impressive 15 years of experience in the IT industry, including 12 years at QBE where he held various key roles, most recently as Acting Head of Technology for QBE NZ and Pacific. His extensive expertise will be instrumental in driving our insurer connectivity project and spearheading further technology enhancements for our New Zealand operations.
In addition to welcoming Jai, we are excited to introduce Apex, our new insurance trading platform that has already achieved significant success in Australia. The Apex trading platform has been designed to revolutionise the way we operate by automating and streamlining processes to allow our brokers to focus on providing a more personalised consultation service and support to our clients. Utilising
Robotic Process Automation technology, the Apex trading platform seamlessly integrates with insurer platforms to obtain quotes, significantly reducing processing times, improving accuracy and delivering more varied options to our clients. Apex is more than just a platform. It is set to enhance our market-leading web-based technology as well as provide performance metrics, market trends and operational efficiency.
We are confident that the Apex trading platform will continue to evolve, keeping PSC Connect at the forefront of innovation. Alongside PSC Connect’s commitment to expanding its network of quality brokers and supporting member brokers with building their businesses and their future asset.
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outage to have limited impact on insurers - Fitch Ratings
The global insurance and reinsurance industry is expected to avoid major financial repercussions from the internet service disruption caused by a faulty security software update from CrowdStrike, according to Fitch Ratings.
Initial estimates indicate that insured losses could range from mid-to-high single-digit billions of dollars, with most claims likely to be covered by primary insurers, Fitch reported.
The analysis was expected to ease investor concerns regarding claims and potential litigation from the disruption. Insurers that are most vulnerable to such losses typically pass some of their liability to reinsurers.
The update from CrowdStrike, which crashed computers running Microsoft’s Windows operating system, impacted various industries including airlines, banking and healthcare.
"Although standard cyber insurance covers cloud downtime due to security, operational or system failures of the insured's own operations, it generally does not cover downtime caused by non-malicious cyber events at a third-party network service provider," explained Loretta Worters, a spokesperson at the USbased Insurance Information Institute.
Fitch also noted that accounting for cyber risk remains a challenge for the insurance industry.
BE YOUR OWN BOSS
Brokers help clients weather the economic storm
The ongoing recession in New Zealand has led clients to reduce their insurance coverage, prompting warnings from brokers.
Thegloom surrounding the New Zealand economy shows little sign of abating mid-way through 2024, with GDP figures for the three months to March revealing GDP growth of just 0.2% in the March 2024 quarter. The patchy, prolonged recession — and stubbornly high inflation — have impacted every sector, resulting in challenging conversations between brokers and clients on risk and insurance coverage.
Brokers across New Zealand have seen clients change their attitude and approach to risk and insurance amid this perfect storm of rising business costs, hard insurance premiums and slow economic activity. Insurance advisers are helping clients weather the economic conditions, maintain the right level of risk protection, and position businesses for brighter times.
IBANZ chief executive officer Mel Gorham says brokers across the sector have noted the squeeze on clients as insurance costs rise.
"Our members have expressed concerns about the effect of the economic slowdown on clients, and the knock-on impact on clients' approach to insurance, which for some sees them facing the unenviable choices of reducing cover they need or not renewing at all,” she says.
“Consumers seem to be particularly hard-hit with
significant year-on-year rises in premiums, which are expected to last until the end of this year.”
Budget strain
SHARE NZ broker Sam Kerr has seen businesses and individual clients feel the effects of New Zealand’s postpandemic economic slowdown and high inflation. He says those in the consumer sector, such as retail and hospitality, are at the sharp end of the economic slowdown.
“I think all clients, from businesses to households, are feeling the effects. Certainly, clients such as the hospitality clients are seeing the impact more.
"With reduced earnings and profits and restrained household budgets, companies and consumers have been forced to make sacrifices with their insurance coverage," Kerr says, a worrying trend that may leave some exposed to greater risk.
“The concerning trend is arbitrary cuts to insurance as an expense,” he adds. “Some clients are being forced to make tough decisions between insuring the risk and accepting the risk without insurance. It’s a hard balance as the cost of insurance (both premium and levies), continues to trend upwards, while businesses struggle with both profitability and cashflow.”
Mark Jones, chief broking officer at Gallagher, says the challenging economic conditions have led clients to reassess their insurance priorities, with a greater emphasis on higher priority risks.
“Unfortunately, the economic slowdown coincided with a harder insurance market. So for many commercial clients, they were [already] experiencing increasing costs across many aspects of their business, such as interest rates, labour costs and supply chain pressure. Then added to this, they got a higher insurance bill. The result has been that clients have needed to be more strategic in their attitude to risk, and focus on how to ensure that their insurance spend addressed the higher priority risks to the business.”
I think all clients, from businesses to households, are feeling the effects. Certainly, clients such as the hospitality clients are seeing the impact more.
Sam Kerr SHARE NZ broker
Greater client risk
Yet the financial downturn has inevitably forced clients to take on greater levels of risk through policy adjustments.
“We have seen clients taking a higher level of self-retained risk, such as increasing policy excesses to mitigate premium increases, and also clients selecting to not insure assets that are not essential to replace in the event of a loss,” Jones says.
Kerr has been advising clients on navigating the economic downturn while retaining the right level of downside protection and risk coverage.
“We’ve been advising clients on a case-by-case basis. Every industry and situation is different and the advice we give matters. We’ve helped clients reduce covers, premiums, talked through limitations, and we’ve equally helped clients understand their credit risk, supply chain risk management and other emerging exposures.”
Jones warns companies about the “false economy of under insurance” and paring back insurance policies to cut costs.
“We have been experiencing a period of high inflation that impacts things like rebuilding costs and the cost of replacement plant and stock. Some clients have elected not to increase their sums insured in order to keep insurance premiums down. Unfortunately, for those who then suffer a significant loss, they often find that they do not have sufficient insurance proceeds from the claim payout to return to the same position that they were in before the loss.”
According to Jones, brokers must provide clients with a complete understanding of the consequences of underinsurance and acknowledge the potential effects of decreasing future coverage.
“Our brokers work with each of our clients on an individual basis to firstly understand their risk exposures and then design a solution that best suits their needs,” he says. “Where a client has financial constraints around insurance costs it is important that they understand fully the potential consequences of decisions that are made in insurance programme design. There is nothing wrong with buying less insurance cover or even no insurance cover, as long as the decision is made with an eye on the outcome of a potential future loss.”
Signs of a recovery
The latest inflation figures offer a glimmer of hope that New Zealand’s economy may be moving in the right direction, and the marginal economic growth of the March quarter may indicate that the worst of New Zealand’s economic downturn is behind us.
Yet the 0.2% growth in the first three months of the year still resulted in the slowest annual growth since March 2021, when New Zealand was emerging from pandemic restrictions, including lockdowns.
Recent inflation data from Stats NZ showing annual CPI inflation at 3.3% for the June quarter has seen the Reserve Bank take a slightly more optimistic tone on the economy, and the central bank made a long awaited 25 basis point rate cut in August. Interest rate cuts could relieve pressure for many businesses and consumers, but the economic recovery is expected to be a slow process.
Gorham adds, “My hope is that the recent change in mood from the Reserve Bank and slowing of inflation will inject some much-needed confidence back into the economy and help provide some meaningful respite from the financial challenges of recent years.”
Market impact
Jones says the tentative global economic recovery, reduced inflation and lower interest rates will affect the insurance market and insurance buyers in different ways, both good and bad.
“The impact of reduced inflation and lower interest rates have less of a direct impact on the insurance market,” he explains. “They actually have the potential to work to the detriment of the insurance market as lower inflation often means less premium is collected, and reduced interest rates result in insurance companies making less interest income on the premiums they collect. However, globally reducing interest rates usually drives more capacity into the reinsurance market, which then filters down to reduced costs at insurance company level and drives the market into a softer phase, meaning that there is more competition between insurance companies and a lower premium cost to clients.”
He adds, “However, this is a fragile balance that can be disrupted by insurance losses from catastrophic events. We are currently at the start of the North Atlantic hurricane season. With the unpredictability of weather caused by climate change, the insurance world is holding its breath and watching with interest. A softening insurance market could yet be turned around by events over the next few months,” Jones adds.
Insurance advisers caution that high premiums are here to stay in the New Zealand market.
“I think they [inflation statistics] are moving in the right direction, but we’re unlikely to see a change to premium rates in the near future,” Kerr adds.
The difficult client conversations about risk are set to continue as clouds remain on the horizon for New Zealand’s economy.
executive
Marsh New Zealand
Toni Ferrier Chief
Toni Ferrier was appointed CEO of Marsh McLennan’s NZ operation last October, her latest high-profile role after decades in the sector.
She talks to CoverNote about her career, how the industry has changed, and her best advice for young brokers.
How did you first get into the insurance broking industry?
I know many people say joining the insurance industry wasn’t a deliberate choice, but it was for me. When I was a corporate litigation lawyer, I worked with insurance companies and found the work interesting and challenging. One of these companies invited me to join and set up an in-house legal team. Since then, I’ve done a bit of everything, including underwriting, claims, broking and risk advisory. My time in the industry has been hugely satisfying and rewarding, both personally and professionally. Insurance is a great industry –needed through good times, and especially bad.
What have been the biggest achievements of your career so far?
Helping to lead the Canterbury earthquake response while at an underwriting business is one of my most meaningful career experiences. This earthquake sequence was, at the time, the fourth most expensive insured, global natural disaster, and tragic for many in our country. Navigating the response to an event of that size with so many resulting claims within a tiny population, many of whom were traumatised, was very challenging. It was very satisfying to see tangible results in the Ōtautahi Christchurch community as my team and I delivered solutions and settled their claims. To be able to tell my children that I was helping to rebuild one of Aotearoa New Zealand’s biggest cities is something I’m very proud of. What’s the best piece of advice you’ve been given in insurance?
When I first joined the sector, I believed I couldn't apply for different roles or opportunities because I wasn’t an expert in all aspects of the role. One of the best pieces of advice I was given was to reflect on the job you have, what you've learned from it, and how you can apply that to your new role. If you have the right behavioural capabilities and work well with people, there are many things you can learn 'on the job', rather than already having the technical learnings or being a subject expert
You commenced your role as CEO of Marsh McLennan New Zealand and President of Marsh New Zealand at the start of 2024. What do you see as the biggest opportunities for the company in the coming years?
Innovation. It’s a strong ethos in our business to keep improving on how we deliver risk-based outcomes for our large clients. For example, Senstrisk, one of our AI-powered platforms, enables our clients to map their supply chain risks in real-time through all layers of their global suppliers, and Blue[I] Analytics Solutions allows them to make informed business decisions by entering their asset data and model different scenarios. These are powerful tools with exciting advantages for our corporate clients. Our next step here in Aotearoa New Zealand is to make innovations like these relevant, cost effective and available to all business clients regardless of size.
More broadly, one of the biggest opportunities for Marsh McLennan is the power of our four businesses. We are not just Marsh broking. We are also Guy Carpenter reinsurance solutions, the Mercer investment business, and Oliver Wyman consulting. For our clients, it brings together the power of our four businesses to access solutions across advisory services, insurance, reinsurance and financial management. We can be true partners in all aspects of their financial and risk profile.
What are the biggest challenges for the broking sector, given the current market conditions?
Broking has fundamentally shifted from focusing purely on traditional insurance because accessibility and affordability is
starting to be challenged through market cycles, and it’s likely that this will continue. Brokers have a key role to play in helping solve this. It means looking more broadly at risk issues facing our clients and exploring alternative risk solutions with them, such as parametrics and captives.
What is your assessment of the market at the moment?
There is constant movement in the market and that’s why we keep clients and industry informed with our quarterly Global Insurance Market Index and other market updates throughout the year.
However, a notable underlying trend in Aotearoa New Zealand is clear: the frequency and size of catastrophic events continues to increase. This means a rise in physical risk and may have implications for how transition risk will be defined in the future. Even as the market cycles up and down, this trend will continue to affect access to and affordability of traditional insurance solutions in the long term.
How can brokers adapt to deal with ever more complex and evolving client risks?
The bigger the complexity, the bigger the value of a risk adviser who can bring a holistic, global perspective to the table for clients, whatever the business size. Businesses in New Zealand can no longer afford to ignore global issues and their implications on their local operations – for example vulnerabilities in their supply chain. Who could have predicted that within weeks of the Hamas attack on Israel, an interstate conflict would become a shipping crisis in the Red Sea that halted the world’s key trade routes and impacted businesses of all sizes in Aotearoa New Zealand? Marsh McLennan supports business leaders to take a global view of risk each year through our work with the World Economic Forum for the Global Risks Report.
Do you have any advice for young brokers and people starting out in the industry?
Joining this industry means you are becoming a lifelong learner. Take advantage of any training offered by your employer, take courses and read thought leadership. I just completed Marsh’s new internal AI Academy program, which teaches the risks and advantages of GenAI, so the learning never ends!
Develop strong critical thinking skills, and get very, very comfortable with data. In this age of misinformation and disinformation, critical thinking, data and analytics are our industry’s bedrock to help clients accurately quantify and understand their risks.
Is the industry making good enough progress with diversity and female representation?
I’ve seen a seismic shift in the time I've been in the sector in terms of the industry proactively driving diversity and inclusion, particularly with women in executive and leadership roles. In 2023, 61% of our new starters at Marsh New Zealand were women. I’m proud that Marsh is also actively delivering inclusivity in other valuable ways. We are an accredited family-friendly workplace, supporting employees to balance work and family responsibilities with a focus on new parents, and those caring for elderly or disabled family members. What are your predictions for the future of broking?
In a country like Aotearoa New Zealand, that is cat-exposed and very dependent on international trade, we need to move away from the thinking that broking is just about selling insurance. Our clients need to be able to understand all the risks they face, have options to manage risk themselves, build resilience into their business, and make informed decisions to prevent loss before they even consider buying insurance.
Chief Broking Officer, Gallagher Insurance
A positive change is brewing in the commercial insurance market
Signs of change are emerging in the insurance market for commercial risks, potentially signalling a positive outlook for businesses.
For the past two to three years, insurers have been increasing their pricing while scaling back their capacity to cover individual risks, placing additional pressure on premiums.
Several factors have contributed to this approach:
• The lingering economic effects of the Covid pandemic have influenced interest rates, inflation and labour costs.
• The impact of climate change has led to an increased number of claims, both locally and internationally.
• Global supply disruptions due to conflicts in Ukraine and the Middle East have pushed up the costs of settling claims.
• The reinsurance market ‘reset’ in January 2023 resulted in higher costs for insurance companies, which have been passed onto consumers.
INSURANCE CLOCK TICKS
Traditionally, the insurance market operates in two phases: a ‘hard market’ characterised by rising prices and challenges in obtaining full insurance, and a ‘soft market’ where prices reduce and insurers become hungrier for business. This market cycle is often referred to as the insurance clock.
For the reasons outlined earlier, New Zealand has been experiencing hard market conditions for several years, putting it at between 10 and 1 o’clock on the insurance clock.
The market is certainly not soft yet but while premiums continue to rise overall, the rate of increases is slowing. In addition, the recent loss experience in the local insurance market has improved. In 2023, the New Zealand market took a huge hit with the Auckland Anniversary floods and Cyclone Gabrielle. Thankfully, we have not experienced another large catastrophic loss since the first quarter of 2023.
Whilst weather-related claims globally are still at very high levels, the reinsurance market has stabilised and increased capacity has become available, easing pricing pressure on the direct insurers.
We are also now starting to see new capacity enter the New Zealand insurance market. This doesn’t mean that we are likely to see the appearance of a new major player in the market like another NZI or Vero, but it does mean there should be more options available going forward that will put downward pressure on pricing.
MGAs offer growth opportunity
One area of growing opportunity is the deployment of capacity through Managing General Agencies (MGAs). An MGA is like a mini insurance company: it doesn’t actually hold any risk itself but underwrites insurance business on behalf of insurance companies. The capacity behind an MGA is
We are now seeing clear signs the insurance market for commercial business is moving towards a softer phase as shown below.
generally provided by secure insurers that have acceptable credit ratings.
As a tried and tested platform, the MGA model is an efficient way to create competition in a market that is small by global standards. Large international insurance companies that do not want to establish a New Zealand office use the MGA market to distribute their capacity, expanding their market reach.
Over recent months, the MGA market capacity for commercial fire and commercial motor risks has grown, along with business travel and liability insurance.
It is encouraging to see signs of a positive market change for commercial risks. As always, there will be exceptions to the rule and those with higher risk profiles may see less obvious change with their situation.
Personal lines market bucks the trend
One such exception is the personal lines market in New Zealand where we anticipate that insurers will continue to seek pricing increases for the remainder of the year. The local marketplace for home, contents and personal motor insurance is reasonably limited and is dominated by IAG, Suncorp and Tower. With restricted competition in this sector, pricing has trended upwards for several years.
The table below shows the steady rise in pricing over five years, with personal lines insurance now 72% more expensive in March 2024 than in March 2019.
Personal Lines Market Price Movement (2024 vs. 2019)
The domestic buildings and contents market bore the brunt of the losses arising from the 2023 natural disasters, with around 81,000 claims out of the 117,000 total falling into these categories. Unfortunately, we expect that further premium increases will be pushed through by insurers in the personal lines space.
IAG New Zealand signs with
IAG New Zealand has signed a multi-year agreement with Google Cloud to help it deliver a more efficient customer experience.
The agreement, which builds on an existing partnership, will see Google Cloud's data and AI solutions to improve IAG New Zealand's current capabilities.
Employees across IAG New Zealand will also be upskilled on Google Cloud technology which will ultimately upgrade the IAG customer experience, the insurance group said.
IAG will be rolling out platform training for its teams from August with new use cases expected to launch within several months.
“We are delighted to partner with Google Cloud, and excited by the opportunities the technology offers us,” said Simon Pomeroy, executive general manager of transformation for IAG New Zealand.
“At its core, this partnership is about enhancing our team’s capability and helping us continue to be here for New Zealanders when they need us.
“Some of the benefits include allowing our claims and sales teams to automate routine tasks and speed up processes, ultimately making things easier for our customers. We will be adding to our people’s skillsets by putting cutting edge tools into their hands to assist them in continuing to provide exceptional customer service every day.
“For customers, we will be able to make insurance easier to understand and purchase through traditional and new digital channels. By creating a streamlined, faster service right across our business, New Zealanders will be able to access and manage their insurance, wherever and whenever they need us.”
“Data and AI are not just tools, they're the catalysts that can reshape the future of insurance,” said Helen Stewart, financial services director at Google Cloud Australia & New Zealand. “We are thrilled to announce our partnership with IAG New Zealand, bringing together innovation and expertise to help elevate the customer experience and drive operational excellence. Together, we're not just supporting the future of insurance, we're helping create it.”
Protecting businesses with smarter cyber insurance
Cyber-attacks are on the rise and it’s not only big businesses that are affected.
In New Zealand, CERT NZ1 responded to 1,530 cyber security incidents in the first quarter of 2024, which resulted in $6.6m direct financial loss.
And if you think having cyber security measures in place affords enough protection, think again. Businesses of all sizes across the country were thrown into chaos by the recent CrowdStrike outage, which caused severe disruptions and financial losses.
Emergence exists to help businesses recover from incidents like this, with award-winning Smarter Cyber Insurance coverage.
Because cyber security doesn’t eliminate the need for cyber insurance.
MORE THAN JUST AN INSURANCE POLICY
The sooner a cyber-attack is contained, the lower the resultant losses for a business, which is why Emergence has a dedicated team of cyber security specialists available 24 hours a day, seven days a week, 365 days a year to assist in recovering and securing insureds systems.
Emergence offers Smarter Cyber Insurance that provides robust, real-time protection and expert support to effectively mitigate cyber risks.
Smarter Cyber Insurance is more than just a policy. It’s a holistic solution that integrates cyber insurance and advisory services to encompass the full spectrum of cyber risk defence, from pre-emptive measures to post-incident resolution.
INSURANCE BROKERS AS TRUSTED
CYBER ADVISORS
Brokers are a key player in Emergence’s Smarter Cyber Insurance approach. Working with brokers to ensure they are equipped with cyber security knowledge and a solution tailored to their clients' needs is an essential part of the process.
By providing education on the ins and outs of cyber insurance and easy access to a range of cyber services, Emergence empowers brokers to become trusted advisors to their clients.
Safeguarding businesses from constantly evolving cyber threats is a shared priority.
Emergence’s Smarter Cyber Insurance policies are written in plain language. Easy to read wording ensures clear communication between broker and insured, and efficient protection against cyber threats.
MITIGATING RISK WITH VALUE-ADDED CYBER SERVICES
With Smarter Cyber Insurance, insureds have a virtual Chief Information Security Officer (CISO) at their fingertips to uncover cyber risks relevant to their business, and to translate complex cyber challenges into actionable strategies and tools.
Real-time monitoring of cyber threat intelligence sources provides early notifications of detected exploitable vulnerabilities. Using dark web monitoring tools, Emergence’s threat intelligence team will identify if an organisation’s data is exposed on the dark web and notify insureds immediately –for free, as part of Emergence’s CEP-005 policy.
Cyber experts also assist in developing an Incident Response Plan (IRP), which provides essential guidance in the event a cyber incident does occur.
WHY TRUST EMERGENCE?
Emergence is a cyber insurance specialist with an in-house claims and incident response team helping businesses survive a cyber-attack. The purpose is clear – to protect New Zealand businesses from escalating cyber threats with dynamic and forward-thinking cyber insurance solutions.
To learn more, visit emergenceinsurance.com or reach out to our National Business Development Manager NZ, Fraser Walker at 0800 129 237. Fraser leads Emergence's initiatives in New Zealand, dedicated to educating brokers, insured, and the broader community on how to mitigate cyber risk.
Access Emergence resources:
Real-time risk management for threat prevention with advanced technology to uncover vulnerabilities and expert knowledge to reduce risk Cyber insurance protection against the financial, commercial and reputational risks posed by cyber threats
Introducing 360 UW
360 Underwriting Solutions (360 UW) is a broker-centric underwriting agency dedicated to the provision of specialist insurance solutions for brokers and their customers.
360 UW was founded in 2017 when directors Dennis Morrissey and Chris Lynch acquired the 360 Commercial product from the AUB Group in Australia. Since then, the business has grown to 38 product offerings across Australia and New Zealand.
2021 saw the business expand into the New Zealand market with the acquisition of TLC Insurance and 360 Commercial (previously Rosser Underwriting). Chris Lynch leads the New Zealand 360 UW team and is regarded as an insurance industry leader with over 30 years of experience in the sector.
360 UW will continue to invest in the heritage of the brand, and actively explore new product frontiers in the New Zealand market with future plans for growth, seeking more value for our clients, increasing relevance to our broker partners and their clients.
Our core principle at 360 Underwriting Solutions is to deliver Solutions our broking partners want, Service they expect from People they know.
To find out more information about the 360 Underwriting Solutions group of companies, visit www.360uw.co.nz
2 Founders 8 Locations
Products
258 People $555 Million + GWP 18 Agencies
Who is 360 Commercial?
360 Commercial is a specialist underwriting agency providing smart insurance solutions for the New Zealand commercial, not-for-profit and sporting organisation sectors, in conjunction with our global insurance partners.
360 Commercial, lead by Executive Director Ryan Clark also offers hard-to-place property and liability insurance for risks not easily insurable in the local New Zealand insurance market through Lloyds of London. We are committed to providing our broker partners with professional, personalised service and tailored solutions to help you do your job.
What makes 360 Commercial different?
• We provide market-leading solutions through our partnerships with international insurance providers.
• Our team of professional and experienced underwriters will provide you with fast, friendly and helpful service.
• We provide personal service from regionally-based underwriters across New Zealand.
Who is TLC Insurance?
TLC Insurance headed up by Executive Director Andrew Reid, provides New Zealand contractors with leading-edge insurance that is specifically designed for the heavy machinery market. With 26 years of specialist underwriting expertise, TLC Insurance offers heavy machinery cover to a broad range of industries across New Zealand. Backed by Berkshire Hathaway Specialty Insurance and Vero Liability, TLC Insurance has partners with strong financial credit ratings and an appetite to grow.
TLC's priorities remain centred around efficient claims turnaround, a diverse product range with continued product innovation, prompt new business turnaround, access to key people with vast experience, and a commitment to premium stability.
What makes TLC different?
• We recognise that the frequency of claims on mobile plant vs commercial motor is distinctly different and therefore these products have their own specialist policy rather than being lumped together.
• We provide gold-standard claims service, with fast, effective and best end-value claims process. Please refer to our claims management policy on our website.
• Our policies cover a wide range of industries including Forestry and Logging, Earthmoving and Civil Construction, Mining, Quarrying, Landscaping, Agriculture and many more.
Higher-risk homes hit with higher premiums
Data from the Treasury revealed that a quarter of homes in high-risk flood zones are paying hundreds or thousands of dollars in additional premiums.
In just 18 months, insurance premiums across New Zealand have risen by almost 30%, and more insurers are starting to price down to address levels due to more sophisticated modelling capabilities.
Actuarial consultancy Finity has monitored insurance premiums for the Treasury since late 2022.
Since October 2023, Finity’s monitoring has expanded to include 1,710 properties in suburbs around the country that are known to be flood-affected, either by river or surface flooding.
The report found that the suburbs with the highest risk of flooding and earthquakes had the lowest insurance availability, but that insurance was generally accessible.
Of the four underwriters involved in the Finity monitoring, which are IAG, Tower, AA Insurance and Vero, 93% of the
homes in the seismic dataset were able to obtain an online quote.
In Canterbury however, nearly half the properties only had one quote.
In addition, 92% of properties with high flood risk were able to obtain online quotes from at least two underwriters. However, 25% of those properties received quotes that included an extra flood premium exceeding $250.
While most elevated flood premiums were less than $1,000 in the most extreme cases, the premium could reach $4,500.
The report found that suburbs with high seismic risk and high flooding risk had the lowest availability.
The average lowest online quote for the properties nationwide in April was $1,839, up 29% since monitoring started and 15% annually.
The regions with the most significant annual increases were Canterbury (28.5%), Tasman (23%) and the West Coast (22.5%).
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Finding artistry in insurance - Meet NZI’s Lisa Christensen
Lisa's entry into the insurance industry came somewhat unexpectedly.
“Straight out of high school, I took a job working with State Insurance, primarily as an opportunity to save some money to attend Auckland’s Whitecliffe Art College,” she recalls.
This first role in customer service laid a solid foundation for her future.
"It was a great training opportunity for me and a really good introduction to the insurance market," she says.
After four years with State, she moved to Crombie Lockwood (now Gallagher) for 11 years as a commercial broker and group relationship manager. Lisa then went on to hold various insurance management roles within banks, broking and insurer entities, including two years working in the Gold Coast.
“What began as a temporary job for me after finishing high school has become a 30-plus year career,” she says.
“My insurance career revolves around my genuine passion for helping others and a commitment to personal and professional growth.”
Helping when it matters most
In January this year, Lisa was presented with the opportunity to start in a new role with NZI, as national broker partner manager.
In this role, Lisa is responsible for managing and strengthening external relationships with some of NZI’s key broker partners. "In a nutshell, I’m the national point of contact for key partners with NZI, with a focus on understanding what our partners' needs are and how we can align our shared goals and deliver on these.”
She finds immense satisfaction and joy in her work, especially the strategic partnership management element.
"It’s a great feeling working closely with businesses at a management level to develop new and innovative ways of delivering a tailored service, along with maximising value from partnership activities like broker events and broker professional development days."
Building strong relationships in the insurance industry has always been a key driver for Lisa.
"I love the fact that we’re here to provide support for customers at a time when it matters most for them," she says. “I’m immensely proud of the work all of us do in the sector to keep people, businesses and our communities safe.”
Witnessing insurance evolution in action
Reflecting on the evolution of the insurance industry, Lisa notes there has been significant advancements in recent times.
"The regulatory environment has changed significantly,” citing the Financial Services Legislation Amendment Act 2019 and the Financial Markets (Conduct of Institutions) Amendment Act 2021 as key recent developments. She also highlights the industry’s progression from focusing on protecting physical assets to now considering protection for brands, data and liabilities such as cyber.
Having recently been part of NZI’s 165-year milestone celebrations, Lisa feels privileged to be on an NZI journey that is about adapting to the changing needs of customers. “The agility we’ve shown as a business to implement various risk-assurance solutions like Electrical Inspections and Fleet Fit, shows how ahead of the game we are when it comes to safeguarding our communities."
A
love of lifelong learning
With a love of professional development driving her, Lisa’s impressive array of qualifications include a Senior Associate & Diploma in Financial Services from The Australian and New Zealand Institute of Insurance and Finance (ANZIIF), a Level 5 Certificate in Financial Services General Insurance, and even an Advanced Certificate in Teaching English as a Foreign Language, which has served her well during her travels.
Health and wellness are also important elements in Lisa’s life. She holds a certificate in the Foundations of Nutrition and is a trained body therapist in Ortho-Bionomy. "I spend a fair amount of time focused on self-improvement, particularly when it comes to health and wellbeing,” she shares. “I also thoroughly enjoy running, dining out, movies and exploring new places.”
To maintain a good work-life balance in such a busy and varied role, Lisa says a healthy lifestyle, a positive mindset, and spending time with family and friends are vital. "Plus, a lot of laughter and a dash of wine here and there also helps!" she adds with a smile.
“Travelling is another passion of mine and I’ve been very fortunate to have explored many parts of the world, including a three-month stint in Africa in 2012 where I volunteered at a wild cat rescue / breeding centre and taught English to various school classes, including special needs students,” she shares. “Many friends, brokers and clients supported me over this journey via a fundraising blog used to raise funds to buy
schoolbooks and desks (as some children were schooled on dirt floors), food and mosquito nets for orphanages, and lifesaving medication for wild cats.
“Seeing the joy that these simple fundraising initiatives brought to so many people’s lives still warm my heart today,” she remembers fondly.
“In my other travels, I also spent a few months touring Europe when I was in my mid-twenties, and I’m heading to the Balearic Islands off the coast of Spain this year to join my son, Simon, who has taken a year sabbatical from his career to travel Europe over 2024. I’m really looking forward to spending time with him overseas and exploring the islands!”
The cornerstone of life
To keep her grounded, Lisa is deeply connected to her origins. "I’m proud to say that Taranaki is my hometown – I spent 30 years living there and absolutely love the region," she shares. “I always jump at the chance to head back whenever time allows!”
Family is also the cornerstone of Lisa's life. "My family are my rock; I absolutely adore spending time with them on the family farm. Most of my close friends and family are spread across Aotearoa New Zealand, so you’ll often find me making the most of weekends visiting them. With longer holidays, I’ll make the most of opportunities to head across to the Gold Coast to enjoy spending time in the sun with a large network of close friends.”
When asked about her proudest achievement, Lisa says there’s one thing that stands head and shoulders above it all: “My most satisfying and rewarding achievement is how I raised my amazing son while being a solo mum and working full-time forging a great career.”
Lisa’s story is testament to the unexpected paths life can take and the success that can come simply from embracing opportunities. From dreaming of art school to becoming a key figure in the insurance industry, her journey is one of resilience, adaptability, and an unwavering dedication to her family and career.
Lisa's passion for travel saw her spending three months in Africa teaching English and volunteer work.
Howden bolsters NZ presence with Bridges takeover
International insurance broker Howden acquired Hamiltonbased Bridges Insurance Services to accelerate its launch into the New Zealand market.
The UK-based group's acquisition follows recent deals for Wallace McLean and Apex Group in New Zealand, as it expands its presence in the Pacific region.
Bridges, founded in 1990, is led by Ron Bridges and director Chris Rolfe. It is focused on mid-market and SME business and services approximately 7,500 customers.
Howden said the new acquisition would play an integral role in its NZ business, “materially broadening” its product offering and ability to serve SMEs and NZ corporates.
Matt Bacon, chief executive officer of Howden Pacific, commented, “We are honoured that Bridges have chosen to partner with Howden and are very proud to be part of the next chapter in their journey. Bridges have a strong track record in the NZ insurance market and have demonstrated
an ongoing commitment to client service. Bridges will expand our presence into a new region in NZ and complements our existing business in the country, where we are strongly positioned to provide clients with access to industry-leading insurance solutions and expertise.”
Ron Bridges, director of Bridges Insurance added, “After 34 years of independence, the decision to join Howden is one that we didn’t take lightly. In the end, we felt that culturally Howden was aligned with our existing values, focusing on our people and clients. Becoming part of Howden creates myriad opportunities for the benefit of our clients, such as their international reach, expertise and data and analytics capabilities.
“With Chris Rolfe becoming managing director and all the management team including myself staying actively involved, continuity and a level of comfort for our clients will be achieved. We are thoroughly excited about what the future holds.”
New Zealanders call for greater climate mitigation efforts
Aclimatechange poll conducted by AMI, State and NZI Insurance has revealed that a significant majority of New Zealanders want increased efforts to mitigate the impacts of climate-related hazards.
The survey, which is in its seventh year, highlighted growing concerns about climate change and its effects on New Zealand’s infrastructure and communities.
According to the poll, 65% of New Zealanders would like to see a stronger emphasis on reducing the impacts of climate hazards.
A total of 82% of respondents said the nation should concentrate on enhancing the resilience of its infrastructure and buildings. A further 80% support avoiding or reducing development in high-risk areas, while 75% recommend protecting existing buildings and infrastructure.
Amanda Whiting, CEO of AMI, State and NZI, emphasised the need to take mitigation measures.
“This reflects the need for practical steps which will lead to a real reduction in the natural hazard risk faced by some of New Zealand’s most exposed communities, so that we can keep them safe as the impacts of climate change grow.”
Recent extreme weather events, including the devastating North Island flooding and Cyclone Gabrielle in early 2023, have heightened public awareness of climate risks.
The poll reveals that 68% of New Zealanders expect to be affected by climate hazards, with 90% anticipating more frequent and severe floods, and 87% expecting more extreme storms in the next 30 years.
Whiting said, “The North Island flooding and Cyclone Gabrielle in early 2023 had a profound effect on our country and our communities, bringing home for many the very real impact of climate change on our lives.
“The number of claims and amount of money paid out only partially reflects the true social and economic cost of these events. We need to do a better job at reducing natural hazard risk, particularly for our most hazard-prone communities.”
The survey also revealed public sentiment on the government’s climate change response.
A total of 54% of New Zealanders believe the government should take the lead in addressing climate change. However, there is growing dissatisfaction with the response; for the first time, more respondents rated the government’s climate actions as ‘poor’ (40%) rather than ‘good’ (27%).
The proportion of New Zealanders who believe the country’s climate response is on the right track has dropped to less than a third, compared to 37% last year, with a significant increase in those expressing doubts about current measures.
Rising insurance premiums were also covered by the survey. Nearly 70% of respondents acknowledged that rising costs were influenced by the increasing impact of natural disasters. Roughly 34% view this as the main factor driving up premiums.
In response, 61% of New Zealanders believe that reducing climate hazard risks should be the focus to lower insurance costs.
In total, 45% of New Zealanders supported the idea of paying based on the specific risk faced, while only 8% agreed that everyone should pay the same amount regardless of risk. A mix of these approaches was favoured by 40% of respondents.
Whiting added, “It’s impossible to remove all risk – we will continue to experience floods, storms, earthquakes and other disasters, so we need a strong insurance industry to help people pick up the pieces and support a faster and more certain recovery.”
Insurers concerned about data compliance: Gallagher Bassett
Data privacy and security compliance were identified as
the primary concerns of 75% of global insurers and 83% of their New Zealand and Australian counterparts, according to a Gallagher Bassett survey.
The claims and risk management firm’s 2024 Claims Insight report provided insights into the primary compliance and regulatory hurdles insurers face.
According to GB, a significant focal point for insurers worldwide is cybersecurity and data breach regulations, with 65% of New Zealand and Australian insurers anticipating an 'evolving challenge'.
This concern extends to the adoption of consumer protection laws, a hurdle expected by 53% of those based in New Zealand and Australia. These laws are getting stricter, requiring insurers to adjust their strategies to abide by the rules.
Expert insights for insurers
Steven Walsh, chief client officer at Gallagher Bassett New Zealand, emphasised the critical role of leveraging external expertise to effectively navigate the evolving regulatory landscape.
“By leveraging external knowledge, insurers can navigate the complexities of customer-focused regulations. This approach facilitates compliance and underscores their commitment to a forward-thinking strategy.”
In New Zealand and Australia, 53% of insurers plan to hire
compliance consultants or claims and risk management experts to enhance and maintain compliance measures.
“Collaborating with a claims and risk management provider can help streamline claims processes and foster a proactive approach to ongoing adherence to changing regulations,” Walsh added.
Regulatory reporting and documentation management pose a significant challenge to insurers, according to the report.
43% of insurers expect this challenge, pushing them to re-evaluate their reporting mechanisms.
"Embracing robust cybersecurity measures, reinforcing consumer protection laws, and optimising reporting processes will ensure adherence to regulatory standards," GB said.
"As insurers grapple with data privacy and cybersecurity concerns – with 83% of New Zealand and Australian insurers ranking it as their primary concern – the industry must stay informed and adaptable to ongoing changes," Walsh added.
“In this current landscape, it is vital insurers have proper and robust plans of action in place to ensure they can navigate fast-paced changes effectively. The old saying that you are only as strong as your weakest link requires that insurers must be as demanding of their supply chain, which is often vested with personal information, as they are of their own internal standards.”
Chubb appoints new APAC president
Marcos Gunn has been appointed as the new Asia-Pacific president for US insurer Chubb, replacing Paul McNamee. McNamee has relocated to New York to become EVP and president of overseas general insurance.
Based in Singapore, Gunn will oversee New Zealand, Australia and eleven other markets.
Gunn has been in the industry for over 25 years. He was named senior vice president of Chubb Group in 2019 and held the position of regional president for Latin America.
In his new role, Gunn will report to McNamee.
Evan G. Greenberg, chairman and chief executive officer of Chubb said, "Marcos is an outstanding executive with a long track record of success with our company. He is returning to Asia with deep knowledge and significant experience in the region. Marcos is one of the most creative and entrepreneurial insurance executives I know. He combines a deep knowledge of underwriting, marketing and technology."
Chubb names Australia and New Zealand country president
Chubb has appointed Ben Howell as country president of its Australia and New Zealand general insurance business.
Howell previously held the role of executive vice president and head of consumer for Chubb Asia Pacific. In his new role, he is responsible for Chubb’s property and casualty and personal lines operations across Australia and New Zealand.
The appointment is effective from 1 September. Howell will continue to report to Marcos Gunn, regional president for the Asia Pacific region, and succeeds Peter Kelaher, who has been appointed division president of continental Europe, Middle East and North Africa at Chubb.
Howell holds a Bachelor of Applied Finance and Laws from Macquarie University and has more than two decades of experience in the insurance industry.
He first joined Chubb as an underwriter in Sydney in 2002. After working for several other global insurers, he rejoined Chubb in 2016, holding increasingly senior roles across the APAC business.
“Ben is a highly respected insurance professional with a wealth of experience gained while working in Australia and across the Asia Pacific region,” said Gunn. “With a proven track record of leading high-performing teams and driving business innovation while delivering profitable growth, Ben is well placed to further elevate our general insurance business in Australia and New Zealand.”
Swiss Re Corporate Solutions
names country head for Australia & New Zealand
Swiss Re Corporate Solutions has appointed Kevin Bates as its new country head for Australia and New Zealand.
The new country leader based in Sydney, will take over for Christine Bell, who has chosen to retire, as of 4 November.
In his new role, Bates will focus on further implementing the group's strategy in the local markets, deepening client relationships, and continuing to deliver differentiated solutions and services to customers.
"Australia and New Zealand has been a strategic subregion for us where we have seen consistent growth over the last three years," said Jonathan Rake, Regional CEO APAC, Swiss Re Corporate Solutions.
"With more than two decades of experience in insurance, risk management, corporate finance and leading diverse teams, Kevin brings with him a strategic mindset and mature leadership style, making him an exceptional candidate for the role. I am confident that Kevin will strengthen our ANZ business and bring a fresh perspective to the broader APAC leadership team with his deep knowledge and expertise.”
WTW appoints Baum to senior roles
WTW has appointed James Baum, a seasoned industry veteran, as head of corporate risk and broking, as well as head of Australia and New Zealand.
Baum most recently worked for Aon for 18 years, holding various executive positions, such as CEO of Australia, chief broking officer for the Pacific, and global head of wholesale and speciality broking. Prior to Aon, James spent over 12 years at Marsh and Sedgwick.
Simon Weaver will continue to serve as WTW head of Asia Pacific and head of CRB for Asia Pacific.
Pamela Thomson-Hall, WTW head of international and head of risk and broking International said, “I am delighted to have someone of James’s calibre join WTW. This appointment speaks to the company’s ability to attract market-leading talent. James is a seasoned leader with over 30 years of experience and has a proven track record of supporting growth and managing business operations. We've made tremendous progress and built great foundations for growth in Australasia in recent years, thanks to Simon Weaver, and now with James’s leadership, we are poised to take this to the next level.”
Baum added: “I am excited to be joining WTW at a time of significant growth and opportunity in Australasia. WTW is well positioned to compete in the market – the company is winning new business and bringing the best solutions and talent to serve the people, risk and capital needs of clients. With its strong global brand, client-first passion and ambition to grow, I am looking forward to being part of this next phase and seeing WTW in Australasia realise its full potential for our clients and colleagues alike.”
WTW makes M&A hire
WTW appointed Steven Torresan as the new head of mergers and acquisitions for its financial, executive and professional risks division across Asia Pacific and Africa.
Sydney-based Torresan previously led WTW’s M&A practice for its Australasia business.
Prior to joining WTW, he co-founded Risk Capital Advisors (RCA), an M&A brokerage with operations in South Africa, Australia and New Zealand, and worked as a lawyer at Norton Rose. WTW acquired RCA in 2019.
AMI issues fire safety warning
Insurance has seen a nearly 40% increase in house fires between summer and winter 2023, following a 20% increase the year before.
The insurer said lower temperatures caused house fire risks to increase.
“With the winter chill comes more time spent inside, heaters dusted off, electric blankets dug out of storage, indoor fires being lit, and winter warmers on the stove – all of which can increase the danger of house fires occurring,” says AMI executive general manager for claims, Wayne Tippet.
According to AMI’s claims data - sourced from the largest general insurance data in New Zealand - the most common causes of house fires are:
1. Cooking (such as unattended stovetop or oven cooking, kitchen appliances)
2. Indoor fires (chimney/roof fire or embers re-igniting)
3. Electrical (switchboards, overloaded multi-boards, fuse boxes, devices charging)
4. Heating sources (heaters and electric blankets)
5. Candles
“Our data shows that winter brings a unique set of fire dangers that New Zealanders need to be cautious of. It’s so important to keep fire safety in mind, especially when cooking and heating your home,” Tippet added.
The average cost of a house fire claim increased to nearly $150,000 last year, AMI said, with one in five claims resulting in homes being uninhabitable and reaching claims costs of more than $265,000.
“While insurance is there to cover you for the loss or damage of your home or possessions in the event of a fire, we can’t replace sentimental items that can often mean the most. So it’s important to look at how to reduce the fire risk in your home to help keep everyone safe,” Tippet said.
Rothbury hires Shane Ohlin as chief information officer
Rothbury Insurance Brokers has appointed Shane Ohlin to the newly created role of chief information officer.
With over 25 years of experience in information technology, Ohlin has previously held senior management and consulting roles in New Zealand and Australia, working with prominent companies such as AIA Group, Spark New Zealand and One New Zealand.
Roger Abel, Rothbury's managing director, said Ohlin would be responsible for overseeing the delivery of IT services and harnessing digital technologies to enhance client experiences, a central part of the company’s growth strategy.
Ohlin said, "Rothbury is an organisation that embraces innovation, constantly seeking to match and exceed client expectations.”
The appointment follows the resignation of Sheila Redelinghuys, the long-serving executive general manager of digital transformation at the broking group.
Redelinghuys, who joined Rothbury in 2004 and became part of the ELT in 2014, was recognised for her significant contributions to the company.
Abel added, “When Sheila resigned we decided to combine all our IT functions under a new chief information officer role. As we welcome a new addition to our ELT, I want to acknowledge and thank Sheila for her outstanding contribution to Rothbury. She will be missed, and we wish her and her husband Carel all the very best with their next chapter.”
Record year of complaints to IFSO scheme
The Insurance and Financial Services Ombudsman (IFSO) scheme has received a record number of nearly 5,000 enquiries over the past year, marking a 21% increase from the previous year.
Karen Stevens, the IFSO ombudsman, revealed that the majority of people contacted the IFSO scheme regarding customer service issues and delays.
The scheme also investigated the highest number of complaints in its almost 30year history, with 479 complaints received for investigation between 1 July 2023 and 30 June 2024.
According to Stevens, the 46% increase in complaints from the previous year was largely due to the extreme weather events of 2023, which led to a significant rise in insurance claims.
“About 8% of the complaints we received were about insurance claims from the Auckland floods and Cyclone Gabrielle. But we also received many more complaints relating to business-as-usual insurance claims, which were impacted by the delays caused by the approximately 118,000 weather event claims,” Stevens said.
Stevens acknowledged the challenges faced by insurers due to the impact of severe weather events, which affected their ability to respond swiftly and effectively to claims.
“Consumers have understandably been frustrated by the long time it’s taken to get their claims resolved,” she noted. “That said, insurers have taken less time to process claims than they did after the Christchurch earthquakes, so clearly there, have been lessons learnt and improvements made.”
The rising cost of insurance, partly driven by the weather events of 2023, has also become a significant issue for consumers, especially amid the broader increase in the cost of living.
“The increase in the cost of insurance was one of our top five enquiry issues this year,” Stevens said. “This is unsurprising given the ongoing financial pressure on households. We have a limited ability to look at complaints about pricing of insurance and increases in premiums, but if people are struggling, we recommend they talk to their insurer about their options, or shop around for quotes from other insurers. Sometimes, choosing a higher excess can reduce premiums.”
The top issue for complaints investigated by the IFSO scheme was the scope of cover.
Stevens pointed out that this often stems from consumers misunderstanding what their policy covers.
“For example, most house insurance only covers sudden damage, not gradual damage. If a house already had issues before a weather event, it's unlikely that insurance will cover the cost of fixing those pre-existing problems,” she said. "Expert evidence, such as an independent builder or engineer’s report, is often crucial in cases where the scope of cover is disputed," she added.
Of the complaints investigated by the IFSO scheme, 68% were related to general insurance, including house, contents, vehicle and travel insurance. Health, life or disability insurance accounted for 21% of complaints, while 11% were about other financial services such as loans and credit or financial advice.
House insurance topped the list of complaints, representing 24% of all complaints, followed by travel insurance at 18% and motor vehicle insurance at 17%.
Driving under the influence
The insurer asked Rose* whether she had taken any medication in the 24 hours prior to her car accident. Rose said she had taken half a sleeping pill at 11pm the night before. Dispute over sleeping pill
Heather* had car insurance and her sister, Rose was a named driver on the policy.
One morning at 10 am, Rose had an accident while driving the car – she failed to stop at a red light and crashed into another vehicle. Heather made a claim to the insurer for the damage to her car and the other vehicle. The insurer told Heather that her car was a writeoff and to arrange storage with a towing company at her own cost, while they processed the claim.
The insurer asked Rose whether she had taken any medication in the 24 hours prior to the accident. Rose said she had taken half a sleeping pill at 11pm the night before.
The insurer declined the claim, including the six weeks of accumulated storage fees, because there was a policy exclusion for “any loss, damage or liability… If your vehicle is being used or driven by any person who… is under the influence of any intoxicating substance or drug."
The insurer also said Heather had failed to take reasonable care of the vehicle and that she had failed to disclose Rose’s sleeping pill prescription when she arranged the policy.
The case manager explained to the insurer that the drug exclusion in the policy did not apply, because there was no evidence that Rose had been under the influence of an intoxicating drug. Rose’s doctor confirmed she should not drive within eight hours of taking the medication, and the accident occurred 11 hours after taking the medication.
The reasonable care provision also did not apply, because Heather had not been grossly careless, grossly negligent or reckless. Heather had not been required to disclose any medication any driver had been prescribed, and, in any event, there was no evidence that Heather was even aware of Rose’s prescription.
The insurer offered to settle the claim by paying the cost of the damaged vehicles, plus the storage fees, plus $1,000 for special inconvenience. Heather accepted the offer. Complaint settled
Insurers need to make sure they correctly apply policy exclusions when relying on these to decline claims.
Poor communication about a policy being cancelled
In2021 Hailey*, a school principal, arranged insurance to cover the cost of any damage and repairs to her school’s devices and equipment. On 5 December 2022 at about 7pm, the insurer sent Hailey an email saying that the insurance would no longer be offered moving forward, and that any current insurance policies would come to an end in mid2023. The insurer confirmed that no premiums would be charged for the last six months.
Hailey received the email but thought it was an advertisement. She didn’t discover the cancellation until the second half of 2023 when she had six devices that needed to be repaired and found out that she had no insurance cover.
Hailey wasn’t happy and contacted FSCL for help.
Dispute
Hailey’s main complaint was that the insurer’s communication about the policy being cancelled was poor. She wanted to make sure that no other schools were affected, and that the insurer took steps to improve their communication in the future. Hailey said that there had only been one email sent about the cancellation, that it was sent during the busy period at the end of school year, and it was sent outside working hours. There were no follow ups or reminders to bring it back to her attention.
The insurer agreed that their communication about the policy ending could have been clearer.
Review
Although FSCL found the insurer’s communication about the cancellation could have been clearer, and that they should have sent reminders, it did not find that the school had suffered any loss. Hailey hadn’t found new insurance cover after finding out that the school’s insurance had ended and instead had been using the money she would have spent on premiums to repair the school’s devices as needed. Further, an insurer can decide to stop providing a particular policy – the cover was never going to be available after mid-2023.
To resolve the complaint, the insurer sent Hailey an apology letter acknowledging that their communication should have been better, and that they had not heard of any other schools being affected. The insurer also offered to repair three of the school’s devices which were damaged after the policy ended. FSCL considered this to be a fair and reasonable resolution.
Resolution
Hailey accepted the insurer’s letter, and FSCL closed its file.
INSIGHTS FOR PARTICIPANTS
Insurers should ensure that any major changes to, or cancellations of, policies are clearly communicated and brought to customer's attention.
Did the insurance adviser mislead their client?
Hasim* was an uber driver. In 2023, he arranged insurance for his vehicle through an insurance adviser. During the initial phone discussion, the insurance adviser asked about the value of the car, and Hasim said he had bought it for $24,000 however had done some work on it. He thought it was now worth about $28,000. The insurance adviser arranged a policy for Hasim and the sum insured was recorded as $28,000.
In January 2024, the vehicle was written off in an accident. Hasim lodged a claim with the insurer who offered to settle the claim at the current market value of the car, which was $14,000. Hasim was surprised at this because he expected to receive $28,000.
Hasim complained that the insurance adviser had misled him about the cover he was getting; he thought he was getting an agreed value policy. The insurance adviser said he did not mislead Hasim. Hasim then complained to FSCL.
Dispute
Hasim said that in the initial phone conversation, the insurance adviser gave him the impression he had signed up for an agreed value policy. He said there had been an “extensive chat” about the value of the vehicle, and that he had been clear he wanted an agreed value policy.
The insurance adviser disputed that Hasim said he wanted an agreed value policy. Further, the insurance policy and the insurance summary recorded that the policy was a market value policy.
Review
FSCL reviewed the recording of the initial phone conversation. The insurance adviser had asked about the value of the car, and Hasim replied that after the work he had done on it, it was worth around $27,000 to $28,000. This was the extent of the conversation about the car’s value. While
Hasim recalled there had been an extensive conversation about the value of the car, this was not the case.
There were further phone calls between the insurance adviser and Hasim. These were not recorded, however the notes taken by the insurance adviser covered queries from Hasim about the quote for cover, the excess and Roadside Assist. These issues were referred to in later emails. However, there was no reference to agreed value in the notes or in the emails.
The insurance summary the insurance adviser emailed to Hasim clearly recorded that the policy was not an agreed value policy. Hasim was also told to carefully check the insurance summary and the policy wording.
Resolution
FSCL explained to Hasim that because there was no independent evidence that he told the insurance adviser he
wanted an agreed value vehicle policy or that the insurance adviser gave him the impression he would obtain a quote for an agreed value policy, he should discontinue his complaint. Hasim agreed to discontinue his complaint.
INSIGHTS FOR CONSUMERS
Consumers should read their insurance summaries and policy wordings to confirm they understand the cover they have.
Market value is the standard basis of settlement of claims for commercial vehicles. Agreed value policies are available but will likely cost more.
FORUM
Refusing to clarify wording on an insurance contract
QUESTION
I contacted an underwriting agency to query whether a certain activity would be excluded under their motor policy wording. The reply I have been getting is:
"Please note we are not able to provide interpretation or advice on the wording."
The policy is specific to that agency, they also settle their own claims and they sell to the direct market as well as to the broker market. They advertise on their website that they abide by the Fair Insurance Code (through the company that underwrites their insurance) - the Code states, amongst other things:
"You’re entitled to ask for and receive clarification on the terms, conditions and exclusions of your insurance policy."
To refuse to clarify their wording is surely breaching the Code they are advertising as adhering to. Before I step this up am I on the right track here?
Crossley Gates, Keegan Alexander
Technically, the Fair Insurance Code (FIC) only applies to underwriters, not their agents, underwriting agencies. Having said that, presumably the underwriting agency has actual or apparent authority to answer your question so their answer probably does bind the undewriter.
The clause of the FIC you quote refers to clarification on the terms, conditions and exclusions of your insurance policy. I believe that requires the undewriter to clarify what the terms, conditions and exclusions of the policy are in the first place. I don't believe it extends to advising about the cover available for a given stated scenario. The clause would need to be drafted differently to achieve that obligation.
Your questions answered
FENZ levy
QUESTION
If we are endorsing a policy after 1 July but removing/ reducing cover, are we using the old FENZ levy or the new one?
Example - building placed 1 August 2024 but 30 July 2024 we are reducing the sum insured, are we reducing the FENZ at .106 or at the new .1195 since it is after 1 July.
Simon Moss
I'm sure FENZ will also reply but my understanding is that in these circumstances the FENZ levy refund will be calculated on the old rate, 0.106. FENZ has published guidelines online.
When does actual change of ownership occur ?
QUESTION
We have a client who imports and sells motorhomes. As part of their final sales process they arrange notification of transfer of ownership on Waka Kotahi website, and get motorhomes registered and complete final checks before handing over to customers.
They have backed into a building with a motorhome while completing their final preparation for handover/ delivery to the customer. The accident occurred a day after they updated the Waka Kotahi website with transfer of ownership information.
The insurers are relying on the Waka Kotahi update of ownership details to decline the claim as they claim it proves the vehicle was no longer owned by our client, and therefore no longer insured under their vehicle stock policy.
We've argued that updating the website doesn't constitute transfer of ownership, conversely, if the website is not updated does this mean transfer of ownership never occurs? But the insurers are sticking to their declinature.
Is this correct? When does the legal transfer of ownership actually occur?
Simon Moss
If the change of ownership is completed online my understanding is that the change is immediate.
But if the buyer has also paid for the vehicle when change of ownership occurs (which you would expect to be the case), then that would further support the insurer's position.
CALENDAR OF EVENTS
IBANZ offers a range of CPD from quality presenters who specialise in providing a variety of fire and general presentations, as well as a selection on soft skills ranging from time management to client care.
ALL WEBINARS: 10.30 - 11.30am unless otherwise stated.
SEPTEMBER 17 :::::
TOPIC: Business interruption – common problems, pre-loss and post loss – and how to minimise or eliminate these
PRESENTER: Mark Anderson | Commercial Loss Management
It is often only when a loss occurs that a broker finds out how good their client's BI policy is. It is too late after a loss to retrospectively change the cover. We will discuss problem areas that commonly occur when setting up a BI policy with a view to assisting brokers to minimise them, and also issues with claims that frequently ariseand how to keep on top of these.
SEPTEMBER 18 :::::
TOPIC: Marine cargo
PRESENTER: Allen Chong | Vero Marine
This will cover the Institute Cargo Clauses A, B and C (these form the basis of all Cargo covers).
SEPTEMBER 26 :::::
TOPIC: Interpreting a policy
PRESENTER: Tom Pasley | Robertsons
While every insurance policy is different, and tailored to the insured’s circumstances, this session will provide a general and practical framework as to how to interpret and make sense of insurance policies.
OCTOBER 2024
OCTOBER 1 ::::: [ This webinar is 10.30am - 11am]
TOPIC: Private boat insurance issues
PRESENTER: Claire Benjamin | IFSO
The IFSO Scheme has marine insurance complaints from time to time, having received under 20 such complaints since 2017. Claire Benjamin will cover the common reasons we see of why claims are sometimes not paid.
OCTOBER 8 :::::
TOPIC: Treaty reinsurance
PRESENTER: Doug Thomson
Understand what is reinsurance and why insurers buy it, and then discuss why brokers should be aware of what treaties are.
Claims for retirement villages - major loss claims
Richard Murphy | McLarens
Richard Murphy of McLarens will discuss its role in major loss claims for retirement villages and talk to some of the complexities and challenges with dealing with the Material Damage and Business Interruption components of these claims.
Trustees and exposure of professional offending
Sean McIntyre & Chris Shannon | Duncan Cotterill
Emma Gabor | Gabor Law
Insurance fraud is real and insurers are vigilant when it comes to suspicious claims, but the insurers are not always right in their assessments.
10 email shortcuts you should be using every day
Debbie Mayo-Smith
If you’d like to be more efficient and effective, – you can’t miss this webinar. You’ll learn how to save time and enhance client communication. We’ll cover all software bases: Outlook, Gmail (desktop and phone) and (iPhone) Mail.
OCTOBER 2024 NOVEMBER 2024
OCTOBER 22 :::::
TOPIC: GL claims case studies
PRESENTER: Michael Robertson | Robertsons
Michael will be giving an update on General Liability claims including a discussion on the policy triggers and in particular the meaning of Property Damage. Michael will cover the most commonly applied exclusions and extensions in general liability policies illustrated by claims examples.
OCTOBER 29 :::::
TOPIC: Insurance policy structure
PRESENTER: Mel Gorham | IBANZ
It is important to read policy wordings and understand the extent of cover as well as limitations, and be able to relate these to your clients' needs. This session will provide an overview of the structure of insurance policies including the insuring clause, extensions, conditions, exclusions, schedule and endorsements.
OCTOBER 30 :::::
TOPIC: Business Interruption – claim example and how well would your client’s cover have performed?
PRESENTER: Mark Anderson | Commercial Loss Management
We will discuss a Business Interruption calculation of loss as a worked example.
OCTOBER 31 :::::
TOPIC: Don't get hacked
PRESENTER: Steve Mayo-Smith
Just how secure are you and ready to defend yourself and the business you work for against the increasing rate and sophistication of cyber-attacks? Understanding what to look for and what not to click on or trust is vital. This session will provide you with an understanding of the types of threats and intrusion techniques and the do’s and don’ts of protection.
NOVEMBER 2024
NOVEMBER 5 :::::
TOPIC: Rural material damage and BI claims
PRESENTER: Janene Paki | McLarens
The agricultural sector produces approximately 40% of New Zealand’s exports. James and Janene will cover off agricultural claims in the form of damage to farm assets, as well as damage for apiarists/honey producers and the business interruption aspect that follows.
NOVEMBER 6 :::::
TOPIC: Privacy and your obligations as a financial adviser
PRESENTER: Damian Lawrence | Mosaic
How can you work to ensure your processes cover both privacy and your obligations as a financial adviser? This webinar will follow the client journey and look at the overlap and gaps between your obligations for advice and privacy along this journey. It will provide tips on how you can use the same processes to make sure you are meeting both obligations and how to avoid potential problems.
NOVEMBER 12 ::::: [ This webinar is 10.30am - 11am]
TOPIC: Rural and lifestyle insurance issues
PRESENTER: Claire Benjamin and Andrew Gunn | IFSO Rural and lifestyle blocks are a popular residential living option for Kiwis which come with their own particular insurance issues and cover. Claire Benjamin will discuss in this webinar the type of enquires, claims and complaints that the IFSO Scheme sees with these types of assets, and will highlight some of the implications of the Natural Hazard Commission (formerly EQC) insurance cover, and the typical scope of coverage for rural/lifestyle policies compared to residential.
NOVEMBER 13 :::::
TOPIC: Business interruption – insurance of wages
PRESENTER: Mark Anderson | Commercial Loss Management
Different ways to insure wages (including Dual Wages) – and what is best for your clients?
NOVEMBER 14 :::::
TOPIC: Microsoft Excel mastery
PRESENTER: Debbie Mayo-Smith
A top tips and tricks walk around Excel showing you how to get much more done in less time. You’ll learn marvellous shortcuts working with your premium calculations, as well as quick tips for summarising, graphing, tabulating and merging.
NOVEMBER 19 :::::
TOPIC: Emerging claims
PRESENTER: Sophie Curlett | Robertsons
This seminar will reflect on the liability claims trends seen in 2024, and highlight any valuable insights from this year. It will also discuss the emerging types of insurance claims that brokers should anticipate in 2025, providing them with crucial information when discussing potential claims with insureds. Attendees will gain an insight into the evolving landscape of liability insurance claims.
NOVEMBER 20 :::::
TOPIC: Regulatory offending - Worksafe and RMAbased offending and investigations
PRESENTER: Chris Shannon, Isaac Cummings and Sean McIntyre | Duncan Cotterill
Regulatory offending may be your client's first interaction with investigators, prosecutors and the criminal justice system. In this short presentation, Duncan Cotterill presenters will provide some insight into regulatory offending, primarily under the Resource Management Act and Health and Safety at Work Act.
DECEMBER
2024
DECEMBER 4 :::::
TOPIC: Insurance industry legislation overview
PRESENTER: Mel Gorham | IBANZ
This session will provide an up-to-date overview of New Zealand’s regulatory framework relating to recent and proposed developments for key insurance legislation including; Financial Markets Conduct, Contracts of Insurance Bill, FENZ NZ Levy, Natural Hazards Commission, Code Committee consultation on competence, skill and knowledge.
*No
Roger Abel
Rothbury Group Limited
PO Box 1596
Shortland Street
Auckland 1140
Mob: 021 952 230 roger.abel@rothbury.co.nz
Neil Cousins (President)
Broker Services Manager
Steadfast NZ Ltd
PO Box 180
Shortland Street
Auckland 1140
Tel: 09 309 7942
Mob: 021 377 942 neilc@steadfastnz.nz
Samuel Kerr (Vice President)
Insurance Broker SHARE
PO Box 305415
Triton Plaza
Auckland 0757
Tel: 09 476 1670
Mob: 021 980 435 sam.kerr@sharenz.com
Mel Gorham
Chief Executive IBANZ
DDI: 09 306 1734
Mob: 021 0852 5568 mel@ibanz.co.nz
Contact
Phone: 09 477 4702 Mobile: 021 204 3395
Tony Bridgman (Immediate Past President)
Executive Director
Marsh Ltd PO Box 2221
Auckland 1140
Tel: 09 928 3015
Mob: 021 873 399 tony.j.bridgman@marsh.com
Jill Comley-Forbes
Chief Executive Officer
Willis New Zealand Ltd PO Box 2220
Christchurch 8140
Tel: 03 366 5715
Mob: 027 451 8098
jill.comley-forbes@wtwco.com
Angus McCullough (Vice President)
General Manager Marketing & Chief Officer
Aon New Zealand PO Box 1184
Shortland Street, Auckland 1140
Tel: 09 362 9059 angus.mccullough@aon.com
Karen Scard Administration & Accounts Manager
DDI: 09 306 1738 karen@ibanz.co.nz
John Chandler
Chief Commercial and Client Officer
PIC Insurance Brokers Ltd PO Box 58842
Botany
Auckland 2163
Tel: 09 281 6870
Mob: 029 969 3878
john.chandler@pic.co.nz
Duane Duggan
Head of Insurance Legal
Arthur J. Gallagher & Co (NZ) Limited PO Box 68910
Wellesley Street, Auckland 1141
Tel: 09 357 4805
Mob: 021 833 286 duane.duggan@ajg.co.nz
Dave Penfold
Director – New Zealand
PSC Connect NZ Limited PO Box 105-241
Auckland City
Auckland 1143
Tel: 09 869 6674
Mob: 021 409 400 dpenfold@pscconnect.co.nz
James Shearing Director
Affiliated Insurance Brokers Ltd PO Box 22221
Khandallah, Wellington 6441
Tel: 04 479 8451
Mob: 027 2460046 james@affiliated.nz
Julie Walsham
Member Services & Technical Manager IBANZ
DDI: 09 306 1733
Mob: 021 0822 2727 julie@ibanz.co.nz
Physical address: Unit 4D, 2B William Pickering Drive, Rosedale, Auckland 0632
Mailing address: PO Box 302504, North Harbour, Auckland 0751
Abbott Group
Abraham & Associates Ltd
Adams Trimmer Insurance 1992 Ltd
Advance Insurance Services Ltd
Affiliated Insurance Brokers Ltd
Christchurch
Christchurch
Whangarei
Paeroa
Wellington
AIB Group Insurance Ltd Lower Hutt
AIM Associates Ltd
Albany Insurance Canterbury Ltd
Albany Insurance Services Ltd
Allied Financial Advisors Limited
Amicus Brokers Ltd
Aon New Zealand
Apex General Ltd
Arthur J. Gallagher & Co (NZ) Limited
Avon Insurance Brokers
Baileys Insurance Limited
Auckland
Christchurch
Auckland
Christchurch
Christchurch
Auckland
Auckland
Auckland
Christchurch
Auckland
Balance Insurance Advisors Ltd Whangarei
Bay Insurance Brokers Ltd Tauranga
BMS Risk Solutions Limited
Bridges Insurance Services Limited
Christchurch
Hamilton
Builtin Insurance Brokers Limited Tauranga
Cambridge Insurance Brokers Ltd
Capital Risk Solutions Limited
Cartwrights Ltd
Cambridge
Wellington
Ashburton
Coast Insurance Whangaparaoa
Commercial & Rural Insurance Brokers Ltd
Crème Insurance
Dawson Insurance Brokers (Rotorua) Ltd
Eclipse Insurance Brokers Limited
Emerre & Hathaway Insurances Limited
FG Insurance Services
First Lane Insurance Ltd
Folio.Insure Limited
Frank Risk Management
FundAGroup Insurance Brokers Limited
Futurisk General Insurance Ltd
Grayson & Associates Ltd
Greenlight Insurance Brokers Ltd
Gregan & Company Ltd
GSI Insurance Brokers
GYB Insurance Brokers Ltd
Hazlett Insurance Brokers Ltd
Hood Insurance Brokers NZ Ltd
Hurford Parker Insurance Brokers Ltd
Hutchison Rodway Ltd
ICIB BrokerWeb
Alexandra
Auckland
Rotorua
Auckland
Gisborne
Gisborne
Blenheim
Auckland
Hamilton
Auckland
Palmerston North
Auckland
Rotorua
Papakura
Waitakere
Lower Hutt
Christchurch
Auckland
Hastings
Auckland
Auckland
Ingerson Insurances Ltd Wellington
Insurance Advisernet NZ Ltd Auckland
Insurance Brokers Alliance Ltd Invercargill
Insurance Design Limited Warkworth
Insurance People (Fire & General) Limited Auckland
Insure 247 Ltd Auckland
JRI Limited New Plymouth
Lockton Companies NZ Limited Partnership Auckland
Malcolm Flowers Insurances Ltd Taupo
Marsh Ltd Auckland
McDonald Everest Insurance Brokers Ltd New Plymouth
Medical Assurance Society
New Zealand Limited Wellington
MW Insurance Auckland
Nelson Marlborough Insurance Brokers Ltd (NIB) Nelson
Neville Newcomb Insurance Brokers Ltd Auckland
Northco Insurance Brokers Ltd Masterton
Northcrest Insurance Brokers Ltd Auckland
O'Connor Warren Insurance Brokers Tauranga
OFS Insurance Brokers Ltd Dunedin
Omni Fire & General Ltd Auckland
Paramount Insurance Agencies Ltd Auckland
Partridge Advisory Limited Auckland
Paterson & Co NZ Ltd Auckland
Penberthy Insurance Ltd Auckland
PIC Insurance Brokers Ltd Manukau
Prestige Insurance Broker Services Ltd Auckland
Primesure Brokers Ltd Auckland
Property and Commercial Insurance Brokers Feilding
Provincial Insurance Brokers Limited Masterton
PSC Connect NZ Limited Auckland
RMA General Ltd Warkworth
Rothbury Group Ltd Auckland
Runacres Insurance Ltd Christchurch
SHARE Auckland
Sit & Blake Limited Auckland
South Pacific Insurance Brokers Ltd Auckland
South Pacific Insurance Brokers Ltd Auckland
Straightline Advisory Limited Auckland
Thames Valley Insurance Ltd Thames
The Advisers for insurance New Plymouth
Thorner General Insurances Ltd Upper Hutt
Towes Insurance Brokers Ltd Te Aroha
Vercoe Insurance Brokers Ltd Morrinsville
Vision Insurance (S.I.) Ltd Ashburton
Wallace McLean Ltd Auckland
Wanganui Insurance Brokers Ltd Wanganui
Wealthpoint General Limited Auckland
Willis Towers Watson Auckland
New Zealand's professional association representing the interests of insurance brokers, risk managers and consumers.
FIND A BROKER
IBANZ members provide independent professional advice focused on client needs.
CPD FOR MEMBERS WHY JOIN IBANZ?
We set a professional standard through our Code of Professional Conduct and Constitution to ensure members reach an appropriate standard.
IBANZ gives strength and support to members enabling them to better meet their challenges and opportunities.