The great reassessment

Finding nice things in small business packages

Time is money, as every small business

– and their broker – knows. Welladvised and tailored insurance not only relieves the direct cost of an incident, it also mitigates the compound effect of loss of income.

As false economies go, being underinsured has to take the prize at the top of the list.

Australian customer claims data from Zurich lays this bare, revealing theft and burglary as the most frequent claim made by SMEs on Business Insurance, with an average claim value of $5,329, followed by faulty products and workmanship at a chunkier $21,731.

Rounding out the top five reasons SMEs make a claim on their business insurance are impact ($6,339), water damage ($11,209), and storm damage ($21,629).

Further underscoring the precarious position SMEs face without adequate insurance cover, Zurich Australia’s highest small business payouts are for fire damage, sitting at the six-figure average of $112,114. Close behind are sprinkler leakage ($100,225) and flood damage ($81,534).

Crucially, underinsurance or no insurance is not only about the direct cost to the business for repair or replacement but also for the potential loss of income if operations are disrupted.

This makes a fast and easy claims notification process vital. In addition, swift settlements not only make a broker’s life easier, they enhance relationships and reputation with clients. Zurich’s Sydney-based Head of SME Theo Pitsikas says “….it is key that SMEs ascertain how their business will respond and cope if a material part of their operation is impacted by an event and becomes inoperable. Brokers need to ask the right questions and be able to guide SMEs along the insurance journey…”

His team regularly works with broker cluster groups and Internationals to review Zurich’s policy coverage and claims, investigating claims that are not covered, and whether policy terms can be amended so losses are met by the policy in future.

Receiving the message loud and clear that time is money, Zurich’s automated Z.stream online system is designed to enable brokers to easily and quickly place business cover for SMEs such as trades, retailers, carriers and office-based professionals.

The broad SME package includes cover for property, liability, motor and business travel, as well as automatic flood cover for most risks.

A broker can receive an SME quote in minutes, and the platform is supported by prompt phone service and underwriting support.

Brokers with a referral for more complex risks can call Zurich’s dedicated SME underwriting team, which Mr Pitsikas says has “fantastic” telephone response times.

Zurich Head of GI Claims, James Dimitriou says feedback has been “overwhelmingly positive” to Zurich’s Priority Settlement Service, available for property claims under $30,000 which are straightforward and have ready to lodge claim documentation. Some customers have received payment in under an hour!

“Provide us with all the required information and we will deposit the funds directly into the specified bank account within 24-48 hours.”

Available to all SMEs, Mr Dimitriou says it provides a simple and speedy option for straightforward claims, usually carried out as “one touch”, which fast tracks settlements and provides SME customers an easy way to lodge claims and have them settled quickly.

For four years now, Zurich has also run its Priority Repair Service, borne from a customer need to have access to a nationwide network repairer able to provide quality motor vehicle repairs with a fast turn-around time. The service, for sedans and light commercial vehicles, has cars back on the road in an average of five days.

“This program offers Zurich customers a simplified approach to motor claims, eliminating the mundane task of obtaining quotes and waiting for assessments,” Mr Dimitriou said.

“Our customers value the ease of process, especially the simplicity of car hire and the quick turnaround of quality repairs. Where our brokers can send through all required documentation at lodgement time, we can make quick and transparent decisions on claim settlement and have our customers’ cars back on the road in no time!”

The great reassessment

Border closures and high employment have left insurers and brokers scrabbling for talent, but is there an opportunity to change the industry’s approach for the better?

By John Deex

The well of insurance talent has never exactly been overflowing, but post covid many are reporting a worrying drought.

Insurance has a continuing image problem as a career destination for graduates, and covid-induced border closures have stemmed the usual flow of overseas professionals looking to develop their skills this side of the world.

On top of that, employment is high and wage demands are spiralling. Good news for many individuals, but not for companies looking to fill vacancies or expand.

The covid experience has led many to reassess their lives – and in the US a “great resignation” has been reported as millions quit their jobs.

Here, experts prefer the “great reassessment”, or “great reshuffle”, but whatever you call it one thing is clear – there are huge changes taking place in the employment market and businesses ignore that at their peril.

It may not be all bad news. If workers in other industries are reassessing their lives and careers, perhaps insurance can attract some of this talent.

Companies need to change their ways to make this happen, however. An obsession with job-ready, likefor-like replacements leads to a merry-go-round where businesses are constantly poaching specialised staff from rivals.

Often the only way to do this is to offer increasingly higher wages – but this is not sustainable, and the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) says “lateral hiring” is key.

“It’s not the great resignation, because people still need to work,” Chief Executive Prue Willsford tells Insurance News.

“We’ve reframed it as the great reassessment, and this is our challenge. If there are a whole bunch of people reassessing their careers and their lives, how can we set the insurance sector up as a career destination as part of that consideration?

“I have always said, you tell me a skill set and I will match you to a great career in insurance. And we need diversity for the kinds of complex problems we need to solve. The breadth that we need is just enormous.”

Job-ready candidates won’t always be available in the current environment, she says, and there needs to be a willingness to invest in training and development.

“I’m hearing anecdotally that there is difficulty in getting good talent. People are wanting someone to come in and be a customer-facing broker from tomorrow.

“But I think there needs to be some investment in lateral hiring and thinking more creatively. It’s absolutely critical that we bring people into our industry laterally and bolt on the technical skills.

“It’s the only way we will successfully get the diversity we need to solve complex problems.”

Insurance-focused recruitment agency Fuse warns there’s unlikely to be any change in the talent shortage for the next 12-18 months.

“Insurance has always been a tight candidate market and covid has exacerbated that,” Head of Strategy Cameron Watson says.

“We’ve seen a huge amount of counter-offers in the last eight months – employers know how hard it is to find people so they’ve had to look at retention.”

Mr Watson says some wages have gone up as much as 25%, with low to mid-level roles particularly impacted. Some positions that were traditionally paid $75,000 are now attracting $90,000 or more.

But he says the situation creates an opportunity to get new talent into the market.

“There’s an increasing awareness of graduates as an alternative talent source,” he says. “The talent is out there, it’s just harder to find.”

Brokers and insurers have told Insurance News that the lack of supply is causing practical problems.

“There is a talent drought within the industry, there are more jobs than people to fill them,” Steadfast Managing Director Robert Kelly said.

“There’s a lack of immigration bringing the usual cohort out of the London market to work in Australia.

“It creates disruption, and sometimes people who aren’t up to the job are being employed just to get bums on seats.

“The staff placement agencies are having a ball at the moment, ringing people up asking if they are happy with their wages and saying they can get them more.”

Suncorp says that “like many other organisations”, it is experiencing increased “employee-initiated turnover” across certain teams.

And Allianz agrees that the industry is “not immune” to the country’s current shortage.

“The industry is finding itself in short supply of senior underwriters, actuaries, data analysts, product specialists and technical/specialised brokers,” Pierre De Villiers, Allianz Australia’s General Manager People and Learning Centre Of Excellence, said.

“This has been exacerbated by increased competition from consulting firms and numerous Fintech startups for talent, as well as the embedment of significant regulatory reforms creating fierce competition for skilled risk and compliance professionals.”

IAG says the pandemic has caused “widespread labour shortages”.

“Skilled migration has slowed since the pandemic, which has impacted our ability to find talent in some areas where there is a local shortfall, such as in the technology space,” Group Executive People, Performance and Reputation, Christine Stasi said. “As a result our recruitment timeframes have increased from an average of four weeks to six weeks, as we know candidates often have more than one offer available to them.”

And if replacing staff is hard, that places extra incentive on retaining good talent.

Insurance Advisernet Managing Director Shaun Standfield says it’s not just about money – there are “many facets” to staff retention.

“If the culture is right and you have a team that works well together, along with an open communication environment I believe you can retain your best team members,” he said.

CBN Chief Executive Richard Crawford says insurance companies have always competed for talent, but the “smaller talent pool” is highlighting the importance of retention.

“Whilst we can see signs of a great resignation, we like to consider this a great opportunity to attract new talent that aligns with the evolving needs of the business, reconsider the ways we work and the ways we organise ourselves,” he said.

He says it’s now unusual for staff to stay at the same company for a lifetime, as they may have done in the past.

“At CBN, we are committed to bringing together a diverse group of passionate and talented team members, providing first class career, health and wellbeing outcomes during their time at CBN.”

Allianz says it is investing in wellbeing programs and technology “to improve the way people can collaborate in hybrid environments”.

Over the past year it has rolled out its new Ways