2021: catastrophes, COVID, courts, challenges – and change everywhere A look back at the events that dominated the industry’s year through our daily Insurance News online service By Miranda Maxwell
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o one saw 2021 coming, and a look back through the files of insuranceNEWS.com.au illustrates the fact that life is unpredictable. For the Australian insurance industry, it has been a struggle on all fronts as the pressure piled on and the catastrophe claims kept coming. Industry professionals at all levels across every industry sector have had to cope with keeping the workflow moving while scattered to their homes by pandemic lockdowns. They have also had to grapple with milestone regulatory reform, insurance affordability issues, five declared catastrophes (and counting), sundry other destructive storms and floods, and a complex court battle over COVID-related business interruption (BI) claims. To name just a few of the issues handled in 2021. Amid so much gloom it’s heartening to note that insuranceNEWS.com.au’s mostread article of the year was a quirky piece about Melbourne-based IAG employee and guitar hobbyist Fran Porter and her song about the experiences of lockdown life. The response to her uplifting video was phenomenal. Here is our month-by-month look back at highlights of the year:
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December 2021/January 2022
JANUARY
FEBRUARY
The year kicked off with the Australian Competition and Consumer Commission (ACCC) concluding a three-year inquiry into insurance affordability in northern Australia and calling for broker commissions to be replaced by a fee-based system. The almost 600-page final report contained 38 recommendations. Next came news London-based Howden Broking was moving into the Australian market via a strategic broking partnership with Steadfast. The UK Supreme Court ruled against insurers on COVID BI cover, prompting insurers to reserve millions for potential Australian claims. Allianz Australia announced a new operating model and the departure of Chief GM Broker and Agency David Hosking, while NSW state insurer icare appointed former Tower CEO Richard Harding as its new head. Almost 50 customers of US-based file transfer vendor Accellion, including the Australian Securities and Investments Commission (ASIC), the Reserve Bank of New Zealand and insurance law firm Allens, were hit by a cyber breach that affected millions around the world.
Federal Court of Australia proceedings commenced to test pandemic coverage in BI policies in the second industry test case, and as plaintiff lawyers moved in the Insurance Council of Australia (ICA) criticised proposed class actions as “premature”. The ACCC expressed concerns about the local implications of a planned merger between global brokers Aon and Willis Towers Watson. On February 5, ICA declared the Perth Hills bushfires the first insurance catastrophe of 2021. Claims came to $88 million. NIBA published a discussion document on proposed changes to its venerable Code of Practice and the Federal Government considered exemptions to add-on insurance reforms after brokers warned the changes could expose consumers to financial risk. February was a stellar month for women working in insurance as QBE Group appointed ICA President Sue Houghton to the vital post of Australia and Pacific CEO, and NIBA appointed Adelaide-based broker Dianne Phelan as President. The London-based Ardonagh Group took up a majority stake in authorised
