insurancebusinessonline.com.au Issue 7.04
COMMERCIAL FLEET COVERAGE
What upcoming changes in this segment will mean for brokers
INSURANCE’S NEXT BIG THING?
Parametric insurance is gaining traction – but is it right for your clients?
WHEN TECH MEETS HEALTHCARE
New developments that are revolutionising personal injury and workers’ compensation
CULTURE IS KEY Austcover head Maria Parry on how the brokerage maintains a winning workplace culture
YOUNG GUNS 2018
35 of the industry’s most promising future leaders
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ISSUE 7.04
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CONTENTS
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36
UPFRONT 02 Editorial
The next big thing in insurance
04 Statistics
The high and low points of businesses’ cyber resilience
06 Head to head
SPECIAL REPORT
22
FEATURES
Are mega-mergers a good or bad thing?
THE NEW GENERATION OF HOUSING
08 News analysis
As strata living continues to grow in popularity, what are the implications for insurers?
40
PEOPLE
REACHING THE PINNACLE
Gallagher grows its Australian presence
12 Insurer update
Insurers face a new backlash over their handling of Cyclone Debbie claims
14 Underwriting agencies update
Social media is opening up a new avenue of risk in environmental insurance The industry is long overdue for an image makeover
FEATURES
BUSINESS AS USUAL
To protect professional indemnity clients, brokers should be aware of these common claims triggers
Austcover CEO Maria Parry discusses how she worked her way to the top of the industry – and how she’s helping others do the same
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10 Intelligence
16 Opinion
YOUNG GUNS 2018
Meet 35 young professionals who are leading Australia’s insurance industry toward a bright new future
What is parametric insurance – and is it the right choice for your clients?
FEATURES 44 A new era in health insurance tech
Technology is bringing rapid evolution to healthcare. How can insurance keep up while remaining focused on clients?
52 Brokerage insight
IMC Insurance Brokers’ John Skiadis on helming a successful family brokerage
FEATURES
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WHAT’S DRIVING FLEET INSURANCE?
Experts offer their take on the legislative and technological changes that are transforming this segment
PEOPLE 55 Career path
John Mead’s journey from London to Australia and beyond
56 Other life
Finding zen with yoga instructor Lauren Siafas
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UPFRONT
EDITORIAL
Jump on the new bandwagon
I
f you’re selling cyber insurance, have a website with a chatbot to answer clients’ questions while you’re asleep, and you’re already considering how the blockchain might transform the insurance business, then you’re right to feel you have your finger on the pulse of a changing industry. However, there’s one more new trend you need to be aware of: parametric insurance. Risk managers have been buzzing about parametric insurance for quite a while. The idea is that rather than indemnifying a pure loss, this new type of policy instead pays out automatically when a ‘trigger’ event takes place within certain parameters – for example, if an earthquake occurs within a 10km radius of a business’s premises. It’s particularly useful for catastrophic events, but it has plenty of uses in other areas as well, such as agricultural insurance, where the trigger could be a certain amount (or lack) of rainfall that could impact a crop. Generally, parametric insurance is well suited to low-frequency, highintensity losses.
“Buyers are now more sophisticated, and they understand some of the limitations of a conventional insurance policy” In theory, such a policy could have massive advantages for clients and insurers alike – the payouts would be predictable, making them easier to account for, while also reducing arguments over the amount of damage suffered. Insurers could also reduce transaction costs with the way they write and administer policies. No surprise, then, that the concept is already proving popular. “We have definitely seen more inquiries over the last year,” Steve Harry, risk finance consultant in Marsh’s Financial Solutions Group, told IB in June. “I also think buyers are now more sophisticated, and they understand some of the limitations of a conventional insurance policy. Some people like the uncertainty that gives them, in that they can always argue about a policy contract, and other people like the certainty that an index-based product would give them.” Of course, as with anything new, there are areas of debate: What indexes will be used? What triggers will be set, and how will they be monitored? How can it be used to incentivise best practice? While some answers remain hazy, what’s clear is that there’s massive potential in this product – so it makes sense to familiarise yourself with insurance’s hot new thing now before it’s your clients who are asking the questions. The team at Insurance Business
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EDITORIAL Managing Editor Paul Lucas Journalists Alicja Grzadkowska, Lucy Hook, Jordan Lynn, Bethan Moorcraft, Ryan Smith News Writers Lyle Adriano, Krizzel Canlas, Terry Gangcuangco, Mina Martin, Gabriel Olano Staff Writers Hannah Go, Tom Goodwin, Libby MacDonald, Joe Rosengarten, Heather Turner Copy Editor Clare Alexander
CONTRIBUTORS Bri Burkhart
ART & PRODUCTION Designer Joenel Salvador Production Manager Alicia Chin Traffic Coordinator Freya Demegelio
SALES & MARKETING General Manager Peter Smith Commercial Development Manager Sophie Knight Marketing & Communications Manager Michelle Lam
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Insurance Business America is part of an international family of B2B publications and websites for the insurance industry Insurance Business America cathy.masek@keymedia.com T +1 720 316 0151 Insurance Business Canada john.mackenzie@kmimedia.ca T +1 416 644 874O Insurance Business NZ peter.smith@keymedia.com.au T +61 2 8437 47OO Insurance Business UK nathan.beach@keymedia.com T +44 20 7193 0935 Insurance Business Asia peter.smith@keymedia.com.au T +61 2 8437 47OO Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as the magazine can accept no responsibility for loss.
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UPFRONT
STATISTICS
Preparing for the inevitable
THE CHIEF TARGETS Companies in North America and the UK were the most likely to have experienced an intrusion in the last year; North American companies were also more likely to report that the attack had a serious impact and that they expected another attack within the next 12 months. Accordingly, companies in these two locations are making more significant efforts to bolster their boards of directors with cyber-savvy professionals.
When it comes to cyber risks, many companies are likely to face an attack, but not all will be victims Cyber attacks are becoming close to a sure thing: In the past year alone, one in every three companies surveyed by Willis Towers Watson weathered a cyber incident that had an effect on or threatened operations, financials and reputation. Expectations are high that there are more such events to come. High levels of cyber resiliency mean an organisation can quickly respond to an inci-
26%
38%
Companies where IT takes the leading role in developing such policies
Companies where HR handles developing employee-related cyber risk policies
dent, address vulnerabilities and apply lessons for the future. Many executives are confident in their company’s cyber resilience; however, many conceded that they’re falling behind in attracting talent skilled in cybersecurity. Many also said they lack the ability to drive their workforce to be more cyber-savvy. The combination of these two issues indicates a need for change on the human side of cyber resilience.
33%
Had a cybersecurity incident in the last 12 months The intrusion had a severe impact on operations, finance and reputation Likely to have a breach with a severe impact in the next 12 months Confident in restoring operations, finances and reputation in the event of a breach Have enough directors who know cyber
73%
Companies that spend less than 1% of revenue on cyber resilience efforts
Actively recruiting directors who know cyber
Companies that believe more should be spent on cyber resilience
Source: “Decode Resiliency,” The Economist Intelligence Unit and Willis Towers Watson, 2018
FOLLOW THE MONEY
READY FOR ANYTHING?
On average, companies spend 1.7% of their revenue on cyber resilience efforts, but a majority of executives would like to see this number increase by at least 10%.
When asked to rate themselves on a scale of one (below average) to five (well above average) on 10 areas of cyber resilience, most companies were optimistic about their level of preparedness, particularly when it comes to assessing their risk level. COMPANIES’ ASSESSMENT OF THEIR CYBER CAPABILITIES
REVENUE SPENT ON CYBER RESILIENCE 11%
2%
Well above average
6%
4 Average
5% or more 22%
3% to 5% 2% to 3% 0.5% to 1% Less than 0.5%
32%
Source: “Decode Resiliency,” The Economist Intelligence Unit and Willis Towers Watson, 2018
3 2
27%
1% to 2%
4
5
Below average
1
3.71
3.62
3.57
3.57
3.56
3.53
Allocate enough budget
Balance accept versus transfer
3.46
3.44
3.41
3.15
0 Assess and Assess Integrate Incident quantify cyber risk technology/ response risks culture governance post-acquisition
Incorporate Cyber- Identify and Apply cyber into savvy fill talent lessons from business workforce gaps incidents continuity
Source: “Decode Resiliency,” The Economist Intelligence Unit and Willis Towers Watson, 2018
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UK 41% 29% 18% 30% 27% 36%
NORTH AMERICA
EUROPE
ASIA
41%
21%
21%
54%
14%
14%
36%
14%
14%
45%
27%
21%
46%
27%
17%
36%
18%
9%
Source: “Decode Resiliency,” The Economist Intelligence Unit and Willis Towers Watson, 2018
TRAINING THE WORKFORCE Where companies’ cyber efforts generally lag is in training employees to become cyber-savvy: Fewer than half of the companies surveyed by Willis Towers Watson have implemented even basic cyber-related HR initiatives. The presence (or absence) of such policies can be an indication of the overall culture of cybersecurity governance in an organisation. PERCENTAGE OF COMPANIES THAT EMPLOY CYBER-RELATED HR INITIATIVES
50%
WHO’S RESPONSIBLE FOR OVERSIGHT? More than a third of organisations believe it’s the responsibility of the board as a whole to provide oversight for cyber efforts, rather than a specialised cyber, risk or audit committee. WHO CURRENTLY OVERSEES CYBER RESILIENCE
40%
Specialised cyber committee 19%
30%
The entire board 33%
20% 10%
44%
44%
Ongoing security awareness training
Identification of talent/skills deficits in IT/cyber
40%
40%
39%
38%
37%
0% Business Identification/ Security Measurement continuity/ action of atincident of training workforce risk employees communication effectiveness planning
Post-breach workforce planning
32%
30%
Post-breach Behavioural change rewards/ management incentives
Source: “Decode Resiliency,” The Economist Intelligence Unit and Willis Towers Watson, 2018
WHO SHOULD OVERSEE CYBER RESILIENCE Specialised cyber committee 24% The entire board 38%
Source: “Decode Resiliency,” The Economist Intelligence Unit and Willis Towers Watson, 2018
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UPFRONT
HEAD TO HEAD
Is major consolidation good or bad for the industry? The merger between AXA and XL Group is the latest insurance mega-deal – but is this trend a positive one?
Simon Weaver
Stuart Farquharson
William Legge
Head of corporate risk and broking, Asia and Australasia Willis Towers Watson
CFO, general insurance Zurich Australia and New Zealand
General manager Underwriting Agencies Council
“It’s not black and white. As most buyers still have plentiful options, we’re unlikely to see material changes in the short term. The jury will be out on the benefits of consolidation. As a broker acting on behalf of the buyer, we look at how the risk appetites of the merging companies will align. Would changes in philosophy or appetite potentially disadvantage any of our clients? If capacity is lost, what is the flow-on effect to pricing? Should a merger be a strategic play – for example, entering new markets or bringing in specialist capability – the upside for buyers may be increased capacity and broader global coverage for multinational risks.”
“The real question here is, does major consolidation solve the challenges facing the industry? Will it make the industry more innovative? Simpler? More customerfocused? The insurance industry is undergoing a transformational shift driven by technology, the impact of climate change and rapidly shifting customer expectations. It’s unclear how major consolidation really addresses any of these issues. If you look at the history of megamergers, more often than not, they fail to realise their intended benefits. The industry is typically locally oriented, and Zurich’s own M&A approach reflects this. We’re focused on targeted, in-country M&As, which has served us well.”
“It depends entirely on the projected outcomes. Some mergers offer increased opportunities and benefits through enabling economies of scale, resulting in betterpriced or more comprehensive products. But in some markets, consolidation can reduce competition. Last July, the New Zealand Commerce Commission blocked Suncorp’s bid to take over Tower because it could lessen competition. In smaller markets, adequate competition is essential. As specialists in niche markets, underwriting agencies have demonstrated that being smaller can be advantageous. Agencies not hampered by bureaucracy can be agile and adept at tailoring bespoke products, unlike big entities.”
THE GIANTS GET BIGGER In March, AXA announced it was purchasing leading global P&C insurer XL Group for more than US$15bn – a move that would create the world’s largest P&C commercial lines insurer based on gross written premiums. That acquisition came hot on the heels of AIG’s announcement in January that it planned to buy up outstanding shares of Validus Holdings for US$5.56bn. “The AIG-Validus and AXA-XL deals are two big-ticket transactions that will drive 2018 M&A activity, regardless of how the final numbers play out,” Robert Fettman, counsel at Hogan Lovells, told Insurance Business.
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UPFRONT
HEAD TO HEAD
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UPFRONT
NEWS ANALYSIS
The next insurance model Industry experts say parametric insurance – a specialised form of insurance or reinsurance tied to a defined trigger – could be set to take off in the commercial sector AS AN INSURANCE model that uses predefined trigger and payout mechanisms, parametrics promises speedy, no-nonsense claims resolution that could help policyholders with cash flow and minimise insurance disputes. According to a new report produced by risk management association Airmic in collaboration with insurance giants Marsh and Swiss Re, parametric insurance could soon become more mainstream in the commercial sector and help clients address some of the limitations of traditional insurance. But how does it work in practice, and where does the parametrics market stand today? IB spoke to
be in terms of the trigger of the insurance, the payout or both, Harry adds: “Broadly, it’s an insurance program that is triggered and/ or paid very simply using an index rather than words.” Under a parametric model, underwriters and buyers agree in advance that a claim will be automatically triggered by an agreedupon occurrence or a movement in an index, removing the need to investigate the precise extent or cause of damage. As a result, parametric solutions allow clients to insure risks that are difficult or even impossible to insure in the mass market. And while a complex
“The data and modelling is now so much better that it’s a real reason to be optimistic that some of these deals might take off” Steve Harry, Marsh several industry experts to find out. “Parametric insurance works using a clearly defined parameter – i.e. a metric or an index that is easy to determine,” says Steve Harry, risk finance consultant in Marsh’s Financial Solutions Group. That can
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insurance claim on a traditional policy can take a long time to adjust and be paid out, the clarity around parametric policies allows claims to be resolved much faster and without disagreement over exclusions and complex policy wordings.
“The way we would express it is that it improves liquidity,” Harry says. “Really what we are looking to do is mitigate the liquidity risk of a traditional insurance contract in these complex areas.” Currently, parametrics is mostly used in catastrophe bonds, but there are moves being made to apply the concept in the travel, retail and agricultural sectors – and the insurance industry has its eyes set on a much wider application in the future. While there have been very few direct parametric policies placed by insurers, Harry says that could be about to change. “We have definitely seen more inquiries over the last year,” he says. “The data and modelling is now so much better that it’s a real reason to be optimistic that some of these deals might take off.” According to Airmic chair Paul Goulding, while “parametrics is still work in progress … I can see it becoming mainstream in the
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FAST FACTS: PARAMETRIC INSURANCE
Parametric insurance was developed in the catastrophe bond market in the 1980s and early ’90s
The world’s first multi-country risk pool, CCRIF SPC, was formed in 2007 to provide parametric catastrophe insurance coverage in the Caribbean
Haiti received a $20 million payout under a parametric catastrophe policy following Hurricane Matthew in 2016
future, because it offers certainty of timing and hassle-free payment”. Airmic technical director and deputy CEO Julia Graham adds that there has already been some growth in the commercial market. “We are starting to see some businesses begin to take this cover seriously, and we’ve
in their coverage. Those who want speedy adjustment and an easy-to-work-out scale of payment might find parametrics appealing. However, Harry points out, “some people like the uncertainty [a traditional policy] gives them, in that they can always argue about a policy contract”.
“I can see it becoming mainstream in the future, because it offers certainty of timing and hassle-free payment” Paul Goulding, Airmic heard of some big buys in the aviation sector, for example,” she says. “Organisations have started to buy this. We think it’s bubbling.” As for whether a client should choose a parametric policy over a traditional one, that all depends on what they’re looking for
Airmic warns that commercial insurance buyers eyeing parametric solutions face a number of challenges and may need to acquire new skills. Buyers should have a good understanding of their organisation’s business model and risk landscape, and may
A single parametric policy was written to protect 22,000 Spanish olive farmers from extreme weather temperatures in 2018 Sources: CCRIF SPC, Meteo Protect
need to get early buy-in from senior colleagues such as the chief financial officer. Ultimately, though, parametric insurance can help businesses strengthen their financial protection by reducing the uncertainties around cover and cash flow that traditional policies can cause. “Concerns about large, complex risks directly related to business operations are on the rise – it’s about protecting revenues,” says Christian Wertli, head of innovative risk solutions at Swiss Re Corporate Solutions. “Parametric solutions can be used as a business tool to provide certainty and speedy access to liquidity when most needed.”
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UPFRONT
INTELLIGENCE CORPORATE
PRODUCTS
ACQUIRER
TARGET
COMMENTS
AXA Group
XL Group
The US$15.3 billion deal has been approved by XL Group's shareholders
Daido Life
Integrity Life
The Japanese firm has acquired a 14.9% stake for an estimated $13 million
Gallagher
Finergy Solutions/Avantek
The sister companies operate in the benefits space
Hyperion
Apollo Partners
Hyperion has acquired a 9.9% share from existing partners for an undisclosed amount
ING
AXA Group
The deal will allow ING to provide insurance products to 13m customers in Australia, Austria, the Czech Republic, France, Germany and Italy
OnePath New Zealand
Cigna Corporation
The 20-year partnership will see Cigna providing insurance policies to ANZ’s bank customers
Private company
AAA Assurance Corporation
An undisclosed buyer has acquired a 73% interest in AAA from Insurance Australia Group
Tokio Marine
PT Asuransi Parolamas, Safety Insurance
Tokio Marine has acquired an 80% interest in PT Asuransi Parolamas and a 98.6% interest in Safety Insurance from Insurance Australia Group
Warburg Pincus
IndiaFirst Life Insurance Company
The private equity firm has purchased British insurer Legal & General Group’s 26% stake in IndiaFirst
Chubb expands SME offering to new industries
Chubb’s broker-distributed Business Pack Insurance product for small and medium-sized enterprises now covers 16 industry segments. The policy includes standard coverage for business interruption, general property damage, public and products liability, machinery and equipment breakdown, theft, and money and tax audits. It also includes a cyber component that covers issues such as network security, privacy and data asset loss, as well as an environmental component that covers sudden, accidental and gradual pollution.
Gallagher strengthens its Australian footprint
Global brokerage giant Gallagher has made two acquisitions in Australia aimed at boosting its retirement and international employee benefits consulting services. Finergy Solutions is an employee benefit and retirement consultant business that offers superannuation consulting services, while Avantek is a technology-based sister firm that develops highly customised financial and benefit reports for large groups of people. “Employee benefits is one part of an end-to-end solution provided by Gallagher that looks at insurance, risk management and consultancy holistically for large corporate organisations through to SMEs,” Andrew Howse, Gallagher’s general manager of benefits, told Insurance Business. “Through our merger with Finergy/Avantek, we have the opportunity to offer a suite of benefits through an integrated offering, tailored to individual needs, that seeks to make a tangible difference to the financial and emotional wellbeing of the Australian workforce.”
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New app helps brokers track professional development
Finance firm Premium Funding has launched an app that could help elevate the insurance industry. Encouraging ongoing learning and helping brokers track their own professional development, the firm’s CPD Anytime app provides a centralised platform for insurance professionals to access accredited content on-demand while also enabling them to record their progress. The app also enables brokers to manage their external CPD activity more efficiently, as users will be able to scan or upload CPD certificates to the training register via their smartphone.
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PEOPLE XL Catlin introduces new terrorism cover
XL Catlin has launched a contingent umbrella cover designed to protect fleet operators, haulage and logistics companies, and vehicle rental firms from damages related to terrorist attacks. Designed to wrap around existing motor and third-party liability policies, Auto Terror Protect covers injuries suffered by third parties and employees during a terrorist attack, as well as first-party property damage to the vehicle and goods in transit. It also covers medical expenses, counselling and/or psychiatric care costs, as well as security and public relations costs.
Lemonade launches opensource insurance policy
US-based insurtech startup Lemonade has launched what it calls “the world’s first open-source insurance policy.” Policy 2.0 is not copyrighted, which means anyone can edit it on Github – and all of Lemonade’s competitors have access to it, too. The policy is intended for US renters, but the company plans to expand it to cover other lines, languages and legal jurisdictions. “Policy 2.0 reflects our determination to drag insurance into the 21st century – kicking and screaming if need be,” said Lemonade CEO Daniel Schreiber.
ANZ’s OnePath rolls out new digital tools
ANZ has rolled out RiskWorks Insurance Manager and RiskWorks MyClaim, two digital tools that will provide trustees and members with realtime digital access to a reliable and centralised source of claims information. RiskWorks Insurance Manager allows superannuation funds and trustees to self-serve and easily access member updates and performance data online, including a dashboard of claims information, bespoke claims reports and a content library of educational information. RiskWorks MyClaim provides members with electronic access to up-to-date claim information at any time.
NAME
LEAVING
JOINING
NEW POSITION
Hayden Baker
N/A
Chubb
Financial institutions product manager, Australia and New Zealand
Gilbert Chahine
N/A
AXA Partners
CEO
Daniel Crombie
N/A
Chubb
IBU underwriter, property
Glenn Crombie
N/A
Chubb
Head of commercial D&O, Australia and New Zealand
John DePeters
N/A
Chubb
Cyber and technology industry practice manager, Australia and New Zealand
Stephen F. Goldman
N/A
Chubb
EVP, overseas general insurance unit
Carla Greaves
N/A
XL Catlin
Chief underwriting officer, global excess casualty insurance
J. Daniel Hickey
N/A
AmTrust Financial Services
Group chief underwriting officer
Ben McGregor
N/A
Chubb
Property manager, Australia and New Zealand
John O’Sullivan
Credit Suisse
AMP
Non-executive director
Mark Reinke
Suncorp
PwC
CMO advisory board member
Roz Shaw
Hawkins Road Transport
Gallagher
National head of transport
Donnacha Smyth
Aspen Insurance
XL Catlin
President, global excess casualty insurance
AXA Partners appoints new CEO
AXA Egypt chief executive Gilbert Chahine took over as CEO at AXA Partners at the beginning of June. Chahine, who has been with AXA since 2007, will lead the insurer’s business unit dedicated to forging global partnerships. Cahine’s previous roles include serving as vice president and financial controller for the group’s financial and consolidation reporting. Prior to AXA, he spent time at auditing firm Mazars & Guerard. Cited for his contribution in launching the insurer’s business in Egypt, the AXA veteran is described as having “pragmatic vision and an entrepreneurial spirit.”
Transport leader joins Gallagher as new unit head
Roz Shaw, a transport leader with a career spanning almost four decades, has joined Gallagher in a national role. Shaw, formerly the CEO of Queensland fuel hauler Hawkins Road Transport and former vice president of the Queensland Transport Association, joined Gallagher in early July as national head of transport. A past winner of Trucking Industry Woman of the Year and a finalist for Telstra Queensland Business Woman of the Year, Shaw has been an active voice for critical change in the industry and a committed champion of bringing more women into the industry.
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UPFRONT
UPDATE INSURERS NEWS BRIEFS Swiss Re introduces group-wide coal policy
In line with its sustainability risk framework and consistent with the Paris Agreement, Swiss Re has begun implementing a group-wide policy that will shut the insurance giant’s doors to businesses with more than 30% exposure to thermal coal. The new policy brings Swiss Re’s underwriting in tandem with its investments in regard to coal. More than two years ago, the firm stopped investing in companies that generate 30% or more of their revenues from thermal coal mining or that use at least 30% thermal coal for power generation.
Insurers underusing IoT data in business strategies
While insurance professionals love the idea of data from the Internet of Things [IoT], they aren’t putting it to use in their own companies. A recent LexisNexis survey of 500 auto, home, life and commercial insurance companies found that 70% think it’s important to collect IoT data, but only 21% have an IoT strategy, and a mere 5% of those that do gather data from a variety of technologies use it in their daily analytics. “Only a few IoT providers among insurers have managed to execute successful platforms, but this number is likely to rise in the coming years,” said Bob Cummings of SAP Financial Services Industries.
Chubb introduces enhanced cyber response capabilities
Chubb has enhanced its cyber incident response management capabilities and introduced two new ways to access the service: a mobile app and a dedicated website. The company has expanded its network of incident response
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management firms to include services in more than 50 countries, with the goal of providing faster response times and access to local expertise. In addition, policyholders can now report an incident via the new Chubb Cyber Alert mobile app, which provides customers with access to a live cyber response specialist.
Analysts say CBA’s general insurance unit could fetch $1bn
After Commonwealth Bank [CBA] flagged the potential divestment of its general insurance unit, analysts have speculated that the big domestic insurers could be buyers, and CBA could potentially rake in $1bn for the deal. The Australian Financial Review revealed in January that CBA was mulling the divestment or outsourcing of the unit and that a number of global suitors were circling, including US giant AIG, while Credit Suisse analysts predicted that IAG would be a likely interested party. Brett Le Mesurier, a senior banking and insurance analyst at Shaw and Partners, said the CBA unit could be worth about $1bn, while Morningstar senior analyst David Ellis placed its value at $1.2bn.
QBE hits the brakes on its Insurance Box smart driving unit
QBE has reportedly put the brakes on Insurance Box, its five-year-old program that used in-car sensors to track and rate customers’ speed, braking and acceleration, offering them lower premiums for safer driving. The Australiafirst telematics insurance offering was launched in 2013; in June, QBE informed customers whose policies were due to expire that they had decided to “discontinue Insurance Box as a standalone product.” However, Ted Stuckey, head of global innovation for QBE, told the Australian Financial Review that Insurance Box was simply “under review.”
Insurers criticized for handling of disasters A recent ABC report slammed insurers for their response to Cyclone Debbie The financial services royal commission has put insurance companies’ conduct under the spotlight, and a recent TV report intensified the glare of criticism surrounding their actions. According to the ABC’s 7:30 programme, concerns are still swirling over Cyclone Debbie. Losses reached $1.7 billion, making it the second costliest natural disaster in the country’s history. The ABC investigation highlighted the frustrations of several claimants struggling to get payouts – some of whom are still not able to return to their homes. One claimant, Mel Deacon, alleged that a tarpaulin Youi paid for to cover holes in her roof actually caused more damage. “The tarpaulin failed – it didn’t fit on the section,” she told ABC. “So, water started coming through, mainly in the month of May, and that caused all this extra damage – a lot of mould damage.” According to the report, Youi refused to fix the additional damage, prompting Deacon to seek help from the Mackay Regional Community Legal Centre. She eventually lodged a dispute with the Financial Ombudsman Service and won her case; Youi was ordered to obtain new quotes to fix the additional damage. However, her lawyer alleged that the company only got one quote and settled the claim. Deacon was paid $161,000, but she believes the cost of repairing her home, based on her own quote, exceeds the
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$270,000 it is insured for. “The night before the impact of Cyclone Debbie, Ms Deacon telephoned Youi to purchase additional insurance,” the insurer said in a statement to ABC. “Ms Deacon’s purchase of additional insurance was subject to an embargo due to the impending impact
to date, Youi has paid her approximately $161,000 pursuant to her claim.” In another case highlighted in the report, the Taylor family described a 15-month battle with Suncorp, saying that the insurer changed its offer after they met with local federal MP George Christensen.
“We acknowledge that in a very small number of cases, our processes have let us down” of Cyclone Debbie. It is common practice for insurers to place embargoes on new insurance or increases to sums insured prior to an event that is likely to happen. Despite the PDS exclusion, Youi honoured Ms Deacon’s building claim. Ms Deacon has stated that she made a complaint against Youi with the Financial Ombudsman Service [FOS] and,
“We managed to get a big improvement – something like $100,000 in terms of an extra payout for her,” Christensen said. “There have been problem cases we’ve seen from just about every insurance company – pretty substandard assessments.” Suncorp responded by telling ABC in a statement: “Suncorp received almost 20,000
claims, spread over approximately 1,000km and across two states. Finalising all insurance claims for a major event of this scale takes time, and we work hard to help our customers recover as quickly as possible. However, we acknowledge that in a very small number of cases, our processes have let us down. We set high standards for ourselves, and we apologise to any customer where our service has fallen short of expectations.”
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13/07/2018 10:22:22 AM
UPFRONT
UNDERWRITING AGENCIES UPDATE
Social media inflates environmental risk In today’s connected world, reputational risk is a growing concern within the environmental space
have been primarily focused on complying with regulations in its home country, but today companies are under increased pressure to prove compliance with rules and regulations across their entire base of operations. In a more connected world, the environmental risk landscape has also expanded beyond the tangible threats of clean-up operations and regulatory penalties.
“It’s not just the physical loss and clean-up costs anymore … it is things like the media getting hold of an incident”
Environmental insurance is becoming increasingly important in a world that is growing smaller, more interconnected and more complex. According to a new report from Chubb and law firm Clyde & Co., environmental risk for multinational corporations spans a number of factors, from wide-ranging regulation to the speed of information spread via social media. Meanwhile, the latest World Economic Forum Global Risks Report ranked
NEWS BRIEFS
man-made environmental disasters seventh out of the top 10 risks worldwide. “That’s much higher than it was before,” says Jane Anderson, senior casualty underwriter at Chubb. “It’s really moving up the ladder in terms of importance to risk managers.” For multinational companies, navigating a complex set of differing regulations across markets can prove extremely challenging. A decade ago, a typical multinational would
AmTrust at Lloyd’s says goodbye to marine business
AmTrust at Lloyd’s [ATL] is letting go of marine underwriting “with immediate effect”, a company spokesperson told Reinsurance News. In September 2017, ATL had announced it was seeking approval to combine its marine, consumer products, and marine and energy liability Lloyd’s syndicates. This latest statement has been the only update since. According to Reinsurance News, the marine syndicate’s gross premiums were up in 2017, but the book was impacted by large loss activity and adverse attritional loss going into 2018.
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“One of the biggest risks at the moment for risk managers is the reputational damage,” Anderson says. “It’s not just the physical loss and clean-up costs anymore following an environmental event – it is things like the media getting hold of an incident. With social media these days, news spreads extremely quickly.” Failure to act in an environmentally friendly way can have drastic consequences, particularly in the “unforgiving” world of social media, Chubb warned in its report. And the heightened awareness on environmental issues shows little sign of slowing: According to Chubb, there is “not a country in the world, with the possible exception of the US, that is winding back on environmental regulations.”
Woodina launches accident and health division
Brisbane-based Woodina Underwriting has launched a new division and appointed a former Beazley leader as its new head. Woodina’s new accident and health division commenced operations in June, led by Suzie White, previously head of Beazley Underwriting in Australia. Also joining the new division are Terina Ngawaka, who also served as an underwriter at Beazley Australia, and industry veteran Don Booker, who has been involved with Lloyd’s in the accident and health sector his entire insurance career, mainly as a coverholder.
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13/07/2018 11:15:42 AM
Q&A
The sporting life Brad French Managing director SLE WORLDWIDE
Years in the industry 25 Fast fact Last July, SLE Worldwide became part of Chaucer, a specialist insurer and member of The Hanover Group
How do you think sports, leisure and entertainment insurance differs in comparison to other fields of insurance? At face value, the products offered across sports, leisure and entertainment are pretty similar to any other field of insurance. There’s property, liability, personal accident, D&O, management liability and all the other standard varieties of insurance available. Where it begins to differ is the way risk profile is handled. We look at the individual client very closely, because obviously not all these sports, events and activities are the same. We see exposures that may need cover, or may need cover excluded, depending on whether we can provide a sustainable program for the nature of their activity.
Is it true that high-profile events naturally attract more risk? Risk profiling across sports, leisure and entertainment is more complex than you might expect. At face value, a large-scale event like Air + Style, a concert or a Grand Final would present considerably more risk from an insurer’s perspective than, say, a weekend netball game. But this isn’t necessarily the case; [at large events], considerable funds are invested into the construction of the site, security is present for crowd management, and there’s a much more limited number of performers. By contrast, a weekend of netball on the Northern Beaches tends to be far less controlled. You could have up to 5,500 girls playing on courts in wildly different conditions. Barbecues are being cooked, coffee cups
Zurich and Miramar partner in machinery breakdown
Zurich Australia has forged an alliance with Miramar Underwriting Agency, allowing Miramar to act as sole underwriting agent on behalf of Zurich for SME and mid-market machinery breakdown insurance. Under the partnership, Zurich’s machinery breakdown business will be placed via Miramar, and Miramar will offer Zurich-backed engineering plant insurance (covering machinery breakdown), engineering business interruption insurance and electronic equipment insurance to SME and mid-market clients.
are being handed out, dogs are being walked and more. All of these create potential ‘trips and slips’ that are far less likely to occur at a one-off event like Air + Style, a concert or a Grand Final.
What’s involved in creating a long-term, sustainable insurance model in these industries? At SLE, we don’t just have underwriters; we also have risk analysts. We work directly with the sports and event organisers – not just their brokers – to discuss all the injury profiles and other issues. This process helps explain to the client why there can be such variance in policies, even between superficially similar sports like, say, rugby league and rugby union. Then we explain what we think the issues are and how we’re going to design a program that is sustainable with these statistics in mind.
What are some important considerations for someone looking for a sports, leisure or entertainment insurance provider? Be wary of any provider who thinks providing insurance for larger events is as simple as scaling up from smaller ones. Make sure your provider does the appropriate risk profiling and doesn’t simply opt for a ‘one size fits all’ approach. Ultimately, anyone from a busker on Pitt Street through to AC/DC at ANZ Stadium should be able to receive insurance, but the specifics of their policies can – and should – look quite different.
UAC GM joins Asia Pacific insurance council
Underwriting Agencies Council general manager William Legge has been tapped to join ACORD’s peak Asia Pacific governance committee. The new ACORD Asia Pacific General Insurance Program Advisory Council was established at ACORD’s board of directors meeting in June. It will provide direction to the Asia Pacific GI Program, which was set up in 2011 to provide the region’s GI marketplace with insurance process, messaging and data standards, and to support the entire policy and claims life cycle.
BHSI appoints new head for Australasia
Berkshire Hathaway Specialty Insurance has announced the appointment of Mark Lingafelter as president of BHSI Australasia. He will take over from Chris Colahan, who is moving to head BHSI’s operation in the UK and Europe. Lingafelter has more than 30 years of global insurance experience, including serving as QBE’s chief underwriting officer for Asia-Pacific,. BHSI president and CEO Peter Eastwood said Lingafelter is “well qualified” to lead the company’s growth in New Zealand and Australia.
www.insurancebusinessonline.com.au
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13/07/2018 11:15:47 AM
UPFRONT
OPINION
GOT AN OPINION THAT COUNTS? ibo@keymedia.com.au
Insurance: the new kale Rebranding the industry to appeal to fresh talent requires rethinking the human factor, writes Bri Burkhart REMEMBER WHEN kale sat untouched beside your meal at a restaurant, eventually ending up in the trash? In those days, kale wasn’t exciting or noticeable, and it definitely wasn’t the star of a single social media photo. Now, people brag about eating kale and have dubbed it a ‘super food’. Smoothies, chips, you name it – if someone is delving into green goodness, kale is the star of the show, and you’re going to hear about it. Right now, the insurance industry is stuck in the same place kale once was. Insurance careers can become something young professionals aspire to and brag about at mixers, but for that to happen, the industry needs an attitude adjustment. Recent graduates look upon the insurance industry as old-fashioned. Before applying to an open position in your company, you can bet they’ll be scrolling through your website and examining your social media pages. If the impression they get is boring, bland and unappetizing, they’re probably not even going to apply. And it’s not just new talent that is put off by the industry’s apparent resistance to change and a fear of new technology; such attitudes keep the best established talent looking elsewhere. Just as kale had to reveal its superpowers to become popular, the insurance industry needs to reveal its hidden greatness. So what’s holding the insurance industry back? It’s simple: the human factor. We’re afraid. Some people fear failure. Some people
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fear the unknown. But, more than that, some people fear that their business’s mission will get lost in change. Although change and innovation can be frightening, they’re vital to keeping an ageing industry alive. We don’t just need to adjust our attitudes about change; we need to adjust our mindset about what’s important. Beyond attracting new talent or being ‘trendy’, advancement doesn’t
mentality to better showcase that. Instead of getting lost in applications, submissions and policies, try getting lost in the situations that create claims. Those moments can be lifechanging. Whether it’s an accident, a natural disaster or even something small, it’s our job to be at our best for clients in their time of need. As counterintuitive as it might seem, at the heart of this move to cultivate the human element is technology. We need to continue to evolve to meet the world’s ever-changing needs, because part of being there for our clients means meeting them where they currently are. If the client is our priority, changing with them should be, too. You can no longer hand a potential client a business card and assume that they’re going to call you. You can no longer be silent online and expect your competitors to do the same. You can no longer talk to your clients in insurance lingo and assume they aren’t going to look elsewhere for a partner who can explain those concepts in understandable terms. You simply can’t afford to stay in the past. This means finding a way to talk about prod-
“Just as kale had to reveal its superpowers to become popular, the insurance industry needs to reveal its hidden greatness” just keep us relevant – it makes us better. The good news is that the very thing holding the insurance industry back is the thing that can move it forward. Rebranding and updating requires us to prioritize the human factor. To most people, insurance is a necessary evil or a small piece of financial planning. We need to constantly remind our clients – and ourselves – that insurance is more than a piece of paper. It’s about supporting people through some of their most challenging moments. In fact, we’re at an advantage because our products have a truly emotional purpose: protection and peace of mind. This is powerful now, because people want to see businesses taking on the initiatives that our industry is naturally a part of. We’re already making a difference, but we need to adapt our
ucts that connect with your clients on a human level, such as social media or e-marketing. This means embracing digital processes that give your clients the fast responses they now expect. This means talking about your job in a way that isn’t purely transactional. Insurance truly has the ability to become a ‘super industry’ that people hanker to be part of. What we need is buy-in. I don’t know who changed the conversation about kale, but I do know who can change an outsider’s view of insurance. It starts with us. Bri Burkhart is an integrated marketing specialist at Glatfelter Insurance Group who uses content marketing across channels to build relationships and promote the success of niche insurance programs.
www.insurancebusinessonline.com.au
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13/07/2018 10:45:53 AM
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13/07/2018 10:45:59 AM
PEOPLE
THE BIG INTERVIEW
REACHING THE PINNACLE Maria Parry’s ascension to CEO of Austcover was the result of great mentors, positive work culture and sheer hard work
WHEN MARIA PARRY first joined Austcover in 1987, it was a fledging firm that had been founded only a few months earlier. Starting as the office junior, handling admin and “making the teas” of other staff members, Parry quickly felt the lure of the insurance industry. In 1989, she started her insurance qualifications at TAFE and achieved her Certificate in General Insurance in 1992 – her first qualification of many to come. Parry has remained with Austcover ever since, quite literally working her way to the top. The decade she spent in training and compliance ranks among her favourite experiences with the company – “I love compliance, but no one else does,” she laughs – but she was destined for greater things. After serving as general manager from 2012 to 2016 and having held the mantle of CEO for almost two years, Parry is uniquely qualified to speak about the past, present and future state of the insurance industry. “The world itself has changed since I started with Austcover,” Parry says. “Obviously there was no social media; we still used typewriters and communicated by mail and fax. You would type an office memo, you would prepare it, send it, and it would take days for people to read it, initial it and return it back to your desk. Business was often done on the back of coasters in the pub.”
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Today, the increased use of computers and the rise of the internet have not only drastically increased the speed of business, but also enabled far greater finesse. Product shifts and updates have also occurred out of necessity. Of particular note is cyber insurance, which has increasingly come to the fore as businesses begin to grapple with the realities of data management and protection. “The industry is always changing because
and develop the positive culture Austcover has built. It’s one of her top priorities, so recruitment is carried out with the intention of finding people that fit the existing culture and whose personal values align with Austcover’s. “Culture is dynamic,” she says. “It represents what brings people together, as well as what drives them apart – so maintaining a strong culture takes time and commitment. I’ve simply tried to build on the culture that
“The industry is always changing because it needs to stay relevant to consumer needs … Given the rapid rate of change over the last 30 years, it will be fascinating to see what occurs over the next 30 years” it needs to stay relevant to consumer needs,” Parry says. “In 2018 there’s cyber, there’s digital disruption, there’s all those things … and given the rapid rate of change over the last 30 years, it will be fascinating to see what occurs over the next 30 years.”
The culture piece In spite of the constant change surrounding the industry, Parry has fought hard to preserve
Austcover already had.” The organisation is also deliberately structured to allow for progression, providing employees with an environment where they can build a career. An important facet of that is an emphasis on professional development. “You can’t simply move into a top job anymore – it requires a balance of education, professional training and experience,” Parry says. “Ideally, we like to get people in young to
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PROFILE Name: Maria Parry Title: CEO Company: Austcover Based in: Brisbane Years in the industry: 31 Career highlights: In addition to her win this year as Australian Broker of the Year at the Insurance Business Awards, Parry also won the NIBA Warren Tickle Memorial Award in 1995 and the Student of the Year Award from the NIBA College of Insurance & Risk Professionals in 2016.
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13/07/2018 10:23:49 AM
PEOPLE
THE BIG INTERVIEW
educate them, train them and network them from an early stage of their careers.” This emphasis on ongoing training and education is far more than lip service. In a rapidly changing industry, it’s essential for insurance providers to remain on the cutting edge to ensure that customers are getting the very best service. Parry sees it as an integral part of career development, drawing an analogy to the medical industry, where doctors must continually upskill and retrain to provide their patients with the best possible care. “We’re here to protect our clients,” she
isn’t possible without a solid organisational base. But above all, mentorship is particularly close to Parry’s heart – she sees it as a means to enable better interplay across generations in the workplace, allowing younger staff to benefit from a senior staff member’s knowledge and office clout. Parry believes mentorship has been invaluable to her own long-term success in the industry, which culminated in her winning the Australian Broker of the Year Award at the Insurance Business Awards earlier this year. Now acting as a mentor herself, she advises
“You can’t simply move into a top job anymore – it requires a balance of education, professional training and experience. Ideally, we like to get people in young to educate them, train them and network them from an early stage of their careers” says. “So if we don’t know what’s going on in their world or their industry, it’s difficult to do our job.”
Moving up In terms of her own development, there are three criteria that Parry views as having been crucial: building effective client relationships, being highly organized and having the right mentors. From an early stage of their employment, Austcover staff are encouraged to get out from behind their desks and build relationships – not just with clients, but also with service providers and co-workers. “It’s very rare that people get promoted just for doing their job,” Parry says. “You need to be noticed, and good old-fashioned hard work pays off.” Organisation is also crucial; being able to deliver above and beyond promised results
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anyone who takes their insurance career seriously to seek one out. “I would highly recommend that you source a mentor at any stage of your career, whether you’re just starting out or in a senior position,” Parry says. “Mentors provide information and knowledge, they stimulate personal and professional growth, they offer encouragement, and they can also provide advice on areas where improvement is needed.” Looking ahead to the future of Austcover, Parry is open about the organisation’s desire for growth and expansion. With two successful acquisitions in recent years, Austcover has already established itself as a formidable force in the Australian insurance industry. Yet Parry emphasises that growth will never come at a cost to the culture Austcover has developed. “We don’t just want growth,” she says. “We want quality growth.”
AUSTCOVER AT A GLANCE
Established in 1987
Operates under the core values of ‘transparent, personal and responsible’
Provides corporate, specialist industry, small business and wealth protection services
Member of the Steadfast Group
Active member of the NIBA
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13/07/2018 10:23:54 AM
SPECIAL REPORT
YOUNG GUNS 2018
YOUNG GUNS 2018
Meet 35 young professionals making their mark on Australia’s insurance industry WHILE THE wisdom of age is undeniably important in the insurance business, the industry also thrives on fresh blood. New entrants to the game are essential for survival – their youth and vitality bring fresh ideas and approaches, fending off the fetters of stagnation. Insurance Business once again turned to its readers for guidance to scout out this year’s Young Guns, and the response was overwhelming. The talent pool for future brokers is an impressive one, and the final list is a promising indicator of the future of Australia’s insurance industry. Nominated by their colleagues, managers and peers alike, these Young Guns have distinguished themselves far beyond their years. On the following pages, you’ll meet 35 rising stars of Australia’s insurance industry. See firsthand how they’ve marked themselves out from their peers as future innovators and leaders – and discover what you can learn from their experiences.
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YOUNG GUNS 2018 INDEX NAME
COMPANY
PAGE
NAME
COMPANY
Abbondanza, Celeste
QBE Insurance
Banks, Jodie Maree
PAGE
28
Hill, Temika
Stewart Insurance Group
30
About Underwriting
30
Howden, Bailey
Accident and Health International
27
Brown, Alana
MGA Insurance Brokers Darwin
31
Moulden, Leigh
32
Burrell, Edward
Clyde & Co
27
Doreen Insurance Solutions (CAR of Insurance Advisernet)
Coleby, Nicole
QBE Insurance
23
Neat, Ben
Integra Technical Services
31
Dametto, Jess
Webber Insurance Services
23
Nicol, Laura
Berkshire Hathaway Specialty Insurance
34
Dawson, Matthew
Direct Insurance Brokers
34
Nguyen, Kim
Allianz Australia
31
Dempster, Kim
QUS
33
Park, Chris
National Insurance Group
32
Dunstan, James
North Queensland Insurance Brokers Pty Ltd
28
Pigram, Brodie
Queensland Urban Utilities
34
CHU Underwriting Agencies Pty Ltd
Quintin, Daniel
Gallagher
30
Farmer, Claire
24 Rogers, Samuel
JLT
32
Freestone, Meggan
QBE Insurance
27
Ross, Jonathan
Aviso WA
28
Hando, Sarah
Rural Affinity Insurance Agency Pty Ltd
29
Ross, Michelle
Chubb Australia
32
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13/07/2018 10:25:32 AM
NICOLE COLEBY Business operations manager, specialty QBE INSURANCE Age: 34
NAME
COMPANY
Sammut, Jenna
JLT
34
Skiba, James
Dual Australia
24
Sloan, Adam
Insure247
33
Taylor, Carla
Vero
26
Terrell, Gareth
Chubb Australia
26
Tsalkos, James
Swiss Re Corporate Solutions
24
Van Der Merwe, Schalk Omnisure
PAGE
With a background as an actuary, Nicole Coleby has always had a solid grasp on the financial dynamics of the insurance business. Coleby describes herself as a “passionate and goal-oriented person” – a claim that’s backed up by her lengthy list of achievements at QBE. Originally joining the company in a casual customer service
25
Ware, Adam
BJS Insurance Brokers Gippsland
33
Whitty, Graham
QUS
26
Willis, Nikita
SRG Corporate
24
Wright, Paul
Sear Insurance Brokers – CMIB (Cabinet Makers Insurance Brokers)
28
JESS DAMETTO Account broker WEBBER INSURANCE SERVICES Age: 20
In the industry for just under two years, Jess Dametto has already completed her Diploma of Insurance Broking. She
role, Coleby was recently promoted to business operations manager and is one of two senior female leaders in QBE’s specialty business. “From my perspective, the most impressive aspect is the manner in which Nicole embraces the challenge to stretch her skills and deepen her knowledge of QBE’s business,” a colleague says. “I have worked in the insurance industry for over 25 years and have found Nicole to be one of the most accomplished insurance professionals I have worked with.”
has moved quickly through the ranks from an administration assistant to broker assistant and now to an account broker. She currently has hundreds of clients that she’s personally responsible for, and that number is growing every day. Dametto also assists one of Webber’s senior brokers with new business and renewal clients. Though she’s just 20 years old, Dametto is already playing a mentor role to some of the other junior staff in the office. Looking to the future, Dametto hopes to continue to grow and develop her knowledge and build up her client base with the goal of one day making it onto the Insurance Business Elite Brokers list.
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SPECIAL REPORT
YOUNGGUNS GUNS2018 2018 YOUNG JAMES SKIBA Senior claims officer DUAL AUSTRALIA Age: 27
As a senior claims officer for DUAL Australia, James Skiba handles a variety of complex and high-value claims while also serving as a technical point of reference for both the claims and underwriting teams. His considerable on-the-job skills have cemented Skiba as an essential resource within the business. His expertise is already known to many of his fellow industry professionals, thanks to the many seminars he has presented to business insiders and brokers alike. Well respected by his colleagues, brokers and other stakeholders – including insurance lawyers and London market underwriters – Skiba has his eye on both team leadership and, further down the line, senior management.
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JAMES TSALKOS Assistant vice president and underwriter, FinPro SWISS RE CORPORATE SOLUTIONS Age: 26
NIKITA WILLIS
CLAIRE FARMER
Account executive
Underwriting account manager
SRG CORPORATE
CHU UNDERWRITING AGENCIES
Age: 19
Age: 34
Initially starting with SRG Corporate as a receptionist, Nikita Willis has spent the last two years traversing a variety of positions, including claims and broker support, before arriving in her current role as an account executive – an impressive career progression in a remarkably short time. Currently, Willis’ role involves assisting a principal broker and the executive director with their respective client accounts by obtaining terms, seeking quotes, processing paperwork, and liaising with clients and insurers. She prides herself on her personalised service and her ability to form professional relationships. Just 19 years old, Willis’ youth provides her with a fresh perspective on the industry, along with a solid grasp on newer technologies and more efficient ways to incorporate them into the workplace.
Claire Farmer is committed to pursuing a management career within the insurance industry. But unlike other aspiring managers, Farmer has a clear picture of the type of leader she wants to be. Her five-year plan includes aspirations to take over management of a CHU branch or manage her own large P&L division. An international move may be on the horizon, too, as Farmer has her sights on the possibilities offered by the insurance markets in the US and UK. Farmer also has strong views about the type of organisation she would like to run. An evangelist for workplace diversity, equality and the vibrant workplace culture that follows, she believes that good workplace culture brings greater staff engagement and a positive impact on the all-important bottom line.
Since joining Swiss Re Corporate Solutions, James Tsalkos has emerged as a prominent underwriter of D&O and professional indemnity in the Melbourne market. In an environment where D&O placement has become particularly difficult, Tsalkos has developed a strong reputation for thoughtful analysis of each client’s exposure and for providing outstanding solutions that demonstrate superior risk management. In his short time in the industry, Tsalkos has become an active member of various industry bodies. He was selected for the NIBA mentoring program and accepted into the Ron Shorter Award public speaking program for 2018. Tsalkos has regularly presented analytical insights on emerging trends through industry forums and on visits to a wide spectrum of brokers. Most recently, he has been active in informing brokers and clients of the changing tide in the D&O market and working to assist brokers in understanding the litigation environment and how their clients can better prepare themselves.
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13/07/2018 10:25:35 AM
SCHALK VAN DER MERWE Director OMNISURE Age: 27
At just 27 years old, Schalk Van Der Merwe has already accomplished more in the insurance industry than many will in a lifetime. A director at Omnisure since 2016, Van Der Merwe was named one of Insurance Business’ top 10 Elite Brokers for 2018. He is also involved in a weekly BNI group, where he speaks to professionals across a variety of industries, educating and advising them
on different insurance products. Educating future brokers is one of Van Der Merwe’s key passions; he helps to create and develop educational content, tools and resources for the Omnisure website. He has also created a blog called Omninews, where he writes educational articles for clients and the general public. He is also exploring opportunities to offer paid internships and partner with high schools to promote the next generation of Australian brokers. Looking to the future, Van Der Merwe seeks to grow Omnisure’s broking team to 10 or more staff by 2020, developing it into the best boutique small brokerage in the country.
www.insurancebusinessonline.com.au
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13/07/2018 10:25:40 AM
SPECIAL REPORT
YOUNGGUNS GUNS2018 2018 YOUNG
CARLA TAYLOR Business development manager VERO Age: 27
GARETH TERRELL Independent broker unit underwriter, casualty
There’s an old saying that no one chooses to work in insurance – you fall into it. But Carla Taylor is defying that stereotype, thanks to her passion for changing the public’s perceptions about the industry. As a business development manager for one of Australia’s leading insurers, Taylor’s role is centred on identifying, establishing and building new relationships with brokers, as well as nurturing and supporting existing ones. She presents Vero’s risk appetite and the wide range of products available to meet the needs of brokers’ clients. Career growth is a key driver for Taylor; a significant personal achievement was moving out of her comfort zone as a broker to take up a new challenge as a business development manager. This move has allowed her to achieve significant professional growth by viewing challenges and opportunities from both the broker and insurer perspective. Moving forward, Taylor seeks to add value to Vero while also diversifying her skills and progressing into a leadership role.
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CHUBB AUSTRALIA Age: 31
GRAHAM WHITTY Sales and development manager, strata insurance, Northern region QUS Age: 28
Remaining relevant in the insurance industry requires becoming an expert
Currently working as a casualty underwriter in Chubb’s NSW independent broker unit, Gareth Terrell’s role involves risk assessment of general liability opportunities. He is also key to building and sustaining important commercial relationships with brokers, aimed at growing the Chubb brand and increasing its GWP footprint in the independent broker market. Terrell’s legal background has proven extremely helpful in providing added value for brokers and clients alike. He looks to assist and educate broker partners with wording interpretation and guidance, particularly in respect to contract reviews. Brokers can then use these insights to pursue discussions with clients about potential contractual exposures. Despite only having been with Chubb for eight months, Terrell has built strong internal and external relationships and has achieved solid GWP growth and retention numbers. He’s also established himself as a keen collaborator with colleagues, using his network to support cross-selling across other Chubb product lines.
in your field and working to develop your personal brand and standing within the community. It’s a challenge Graham Whitty has risen to with considerable gusto, constantly pushing to develop his skills and expand his working relationships. It’s dealt considerable dividends, too – in the current financial year alone, Whitty has personally written more than $2.5m in new business premium, exceeding his budget by 40%. Whitty started with QUS five years ago, initially in a junior underwriter role. Since then, he’s progressed through a number of roles, including senior underwriter, team leader and now his current role as sales and development manager for QUS’ Northern region. He’s also part of the senior management team for QUS, which works to not only make QUS a better option for clients, but also a better place to work for its staff.
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BAILEY HOWDEN Senior underwriter and team leader, Western Australia
EDWARD BURRELL
ACCIDENT AND HEALTH INTERNATIONAL Age: 28
Starting with AHI in 2013 as an assistant underwriter, Bailey Howden says she enjoys working in the insurance industry because she’s always learning something new, while also being challenged with weird and wonderful queries and claims. These days, Howden works as a senior underwriter and team leader for AHI in Western Australia, responsible for growing, developing and training the WA team. This includes supporting her team to maintain standards of service excellence and a customer-centric approach to achieve positive outcomes for both the broker and policyholder in the quickest possible time. Howden has also become instrumental in shaping AHI’s future, thanks to her leading and active participation in a number of AHI’s strategic initiatives. She sees her leadership role within AHI as an outstanding opportunity to help up-and-coming young women in the industry, and she is currently mentoring a number of female AHI staff across Australia.
Senior associate, insurance and reinsurance CLYDE & CO Age: 34
Now in his fifth year as special counsel at Clyde & Co, Edward Burrell represents a range of professionals in the finance and construction industries across all lines of insurance. Often acting on behalf of architects, engineers, contractors, environmental consultants and their professional indemnity insurers, Burrell works on matters that range from large industrial and commercial projects to domestic dwellings. He is well known for his innovative approach to using technology in document-intensive litigation, including using predictive coding in the discovery phase to increase efficiency for his clients. Ultimately, Burrell aims to be recognised by those in the insurance industry – including his colleagues, competitors and insurance clients – as one of the foremost advisers in Australasian insurance law.
MEGGAN FREESTONE Senior underwriter, accident and health QBE INSURANCE Age: 33
Meggan Freestone joined QBE at the beginning of 2016 as a senior underwriter with the accident and health team. With a keen desire to make a difference, Freestone has rapidly emerged as a pivotal member of her team, significantly boosting QBE’s profile and credibility in a fiercely competitive local market. A self-described “insurance nerd”, Freestone is always looking for opportunities to meet a new broker, challenge the status quo, contribute to a project or help a colleague. These high-performance attributes have elevated her above many of her peers and made her a powerful advocate for the wider insurance industry. With a strong focus on continuous learning and development, Freestone is a passionate advocate for diversity in the workplace, mentoring junior staff, and creating meaningful, long-lasting partnerships with clients and brokers alike.
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SPECIAL REPORT
YOUNGGUNS GUNS2018 2018 YOUNG
CELESTE ABBONDANZA Assistant business relationship manager QBE INSURANCE Age: 25
JAMES DUNSTAN
PAUL WRIGHT
Office manager and account executive
SEAR INSURANCE BROKERS/ CABINET MAKERS INSURANCE BROKERS
NORTH QUEENSLAND INSURANCE BROKERS
Age: 35
Age: 31
Paul Wright joined Sear Insurance Brokers in 2005, initially serving as an account executive on the fledgling Cabinet Makers Insurance Brokers [CMIB] brand. Over the past 13 years, Wright has consistently developed and grown the brand, eventually rising to the position of national manager. Currently managing six staff in CMIB’s Victoria office and three interstate staff, Wright effectively oversees all elements of broking operations for the CMIB brand. Wright credits his success to consistent study of both technical insurance matters and the specific industries he services. As a result, he has emerged as a true aficionado of specialty insurance, highly skilled at providing detailed and accurate advice. Looking ahead, Wright hopes to continue to grow the CMIB brand and his career, aiming to become the national insurance leader within his field.
With the goal of owning and operating a respected brokerage within the Townsville community, James Dunstan is always looking to use his skills to give back to colleagues, clients and the community. During the five and a half years he’s spent with North Queensland Insurance Brokers, Dunstan has helped to mentor numerous staff and aided in the development professional pathways. He also serves as vice president of the Business Networking International Momentum Chapter, where he briefs others on industry news and assists businesses with any insurance issues they’re facing. Dunstan is also an active member of the Townsville Chamber of Commerce, working to better provide business opportunities within his community.
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Having started her career with QBE in 2017 via its graduate program, Celeste Abbondanza moved through a number of business units as part of the program rotations. While in intermediary distribution, she realized her desire to be in a client-facing role, and earlier this year, she took on a business relationship role within the division. In this position, she works with a panel of brokers and oversees various working groups with a focus on improving broker interaction. The brokers Abbondanza works with have provided nothing but positive feedback, which has resulted in several new business opportunities being presented to QBE. Abbondanza plans to eventually further her education in the economics field, which she hopes will open up various opportunities within QBE and the broader industry.
National manager, CMIB
JONATHAN ROSS Account executive AVISO WA Age: 24
As the winner of Young Gun of the Year (Independent, Less Than 20 Staff) at the 2018 Insurance Business Awards, Jonathan Ross has already marked himself out as a broker to watch. Throwing himself in at the deep end, Ross has carved a niche as an insurance specialist for innovative startups, helping them with risk profiling and insurance program design. His clients have ranged from sharing economy platforms right through to producers of DIY organic skincare products. It’s an approach that has distinguished him in the industry already, garnering him praise for being willing to invest time in new companies that need insurance, but might have traditionally been turned away. Through education and experience, Ross hopes to continue to providing service and advice to Australian companies, both established and emerging.
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SARAH HANDO Underwriting manager RURAL AFFINITY INSURANCE AGENCY Age: 28
Rural Affinity Insurance Agency offers a wide variety of crop, forestry and livestock products, along with a farm package and a small farm product, and Sarah Hando is required to be expert on all of these offerings. It’s part and parcel for her underwriting management of a $38m portfolio, which is expected to grow to $50m over the next two years. Hando has risen to the task with admirable gusto – she has been a key driver of Rural Affinity’s underwriting strategy and has
played a major role in delivering strong results through the soft market cycle. Managing a team of seven underwriters, she has shown a great ability to bring her team together as a cohesive, efficient unit. Hando is also integral to the company’s relationship management program, and is actively involved in road trips and direct management of key brokers. She has a specific interest in the integration of technology, such as satellite imagery and precision agriculture, in Rural Affinity’s insurance solutions with a view to creating broader and better products for all stakeholders. Hando is currently involved in the development of a multi-peril crop insurance product that leverages the power of these tools.
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SPECIAL REPORT
YOUNGGUNS GUNS2018 2018 YOUNG
JODIE MAREE BANKS Senior underwriter ABOUT UNDERWRITING Age: 32
Since starting as an underwriting assistant in 2007, Jodie Maree Banks has demonstrated, in the words of a senior colleague, “an incredible thirst for knowledge”. That attitude has helped her rapidly climb through the ranks of the insurance industry. Every day, Banks demonstrates a high standard of service, going above and beyond to stay updated
TEMIKA HILL Assistant account broker STEWART INSURANCE GROUP Age: 22
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on legislative and market changes to ensure that her broker clients have the best information possible. In 2016, Banks played a critical role in getting About Underwriting off the ground, and her thirst for knowledge will no doubt help transform About Underwriting into a much larger operation over the next few years. In her role as senior underwriter, Banks is responsible for underwriting general liability, professional indemnity and management liability policies, and for placing property, cyber liability and investment manager covers.
She might be new to the industry, but Temika Hill is already playing an integral role at Stewart Insurance Group. In addition to managing the company’s claims and ensuring they are actioned in a timely manner, Hill also oversees all aspects of a small scheme for off-the-beach boats, from new business through to chasing debtors. As if this weren’t enough, Hill also assists a senior manager with her commercial portfolio, and is regularly involved in quoting new business and obtaining alternate quotes for renewals as they come due. Regularly taking on tasks over and above her appointed responsibilities, Hill has her sights set on becoming a commercial broker and managing her own portfolio of commercial clients.
DANIEL QUINTIN Branch manager GALLAGHER Age: 36
Daniel Quintin’s career as a broker began earlier than most. At age 16, he got his start in Essex, England, by filing, making the office coffee and doing the morning bacon roll runs. After a chance online encounter led to him to meet his future wife, Quintin relocated to Australia, where he now serves as a branch manager for Gallagher in Hobart. He’s in the unique position of being a 19-year industry veteran, yet remarkably still a Young Gun, as evidenced by his win as XL Catlin International Young Gun of the Year at the 2018 Insurance Business Awards. Having worked for local, national and international broking firms in London and Sydney, Quintin brings a unique mix of insurance leadership, international experience and client servicing expertise to his work. His current role is the culmination of many years of hard work, dedication and study, all aimed at bringing the best possible service to the client. Outside of Gallagher, Quintin is the chairman of the NIBA Tasmania sub-committee.
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BEN NEAT Executive loss adjuster INTEGRA TECHNICAL SERVICES Age: 32
With 13 years handling mining, engineering, power, energy, renewables, construction, rail and major property claims around the globe, Ben Neat has a wealth of achievements under his belt. He has been directly involved in the resolution of large, complex and contentious claims with all manner of language, cultural, geographic, environmental and technical challenges, making him arguably one of the most experienced and well travelled adjusters of his generation. His experience adjusting – and ultimately settling – large and complex claims has laid the foundation for the superior service he provides to his clients. Though based in Integra Technical Services’ Sydney office, Neat undertakes frequent regional travel to handle complex losses. In addition to loss adjusting, he is also often engaged to provide claims consultancy services to help rescue claims in various states of distress. As one of the youngest adjusters to achieve Chartered Loss Adjuster qualifications through AICLA, Neat is well positioned to be a future thought leader within the field.
ALANA BROWN Broker MGA INSURANCE BROKERS DARWIN Age: 23
At just 23, Alana Brown has already established herself as a force to be reckoned with, boasting capabilities that often outstrip far more experienced brokers. Working with MGA Insurance Brokers in Darwin, Brown’s duties include retention, new business and claims across all classes of insurance, from personal lines and workers’ compensation through to ISR and complex liability. Whatever the task, she brings what a colleague describes as “amazing work ethic” to the forefront, serving as an inspiration to her fellow workers. After five years in insurance, Brown sees personalised customer service as key to her success. This approach led to her being named as a finalist for Young Gun of the Year (Independent, 1–19 Staff) at the 2018 Insurance Business Awards.
KIM NGUYEN Senior account manager ALLIANZ AUSTRALIA Age: 31
Kim Nguyen started her insurance career as a broker and has successfully transitioned into a market-leading account manager. Managing a $10m GWP general insurance portfolio of marquee insurance brokers in NSW, she has rapidly
distinguished herself as a key contact for the brokers she works with. At Allianz, Nguyen is responsible for cultivating relationships with a panel of brokers spread across all 42 products of the One Allianz Group. Her broking experience allows her to deeply understand her brokers’ needs. Her focus on solutions ensures she is best in market, and she works to bring fellow account managers up to the same level of technical expertise and customer service. Regularly headhunted by insurers and brokers alike, Nguyen is a creative, ambitious professional who aspires to represent Asian women in executive roles in the industry.
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SPECIAL REPORT
YOUNGGUNS GUNS2018 2018 YOUNG MICHELLE ROSS National program manager, Cornerstone CHUBB AUSTRALIA Age: 31
A hard-working professional, Michelle Ross has leveraged her knowledge of both marketing and insurance into a thriving career. During her time in the industry, she’s held roles at Allianz and Chubb, marking herself out as a talent to watch and a valuable asset to the industry. Most recently, Ross developed Cornerstone, Chubb’s loyalty and segmentation
LEIGH MOULDEN
SAMUEL ROGERS
DOREEN INSURANCE SOLUTIONS (CAR OF INSURANCE ADVISERNET)
Account manager, financial lines group, and cyber insurance specialist
Age: 32
JLT
Director and principal
Age: 34
In more than 10 years in insurance, Leigh Moulden has garnered a broad range of experience – and, more importantly, results. In addition to establishing a successful business and leading a high-performing team, he has also implemented strategy that delivers superior levels of customer satisfaction. Yet he’s not content to rest on his laurels; Moulden regularly undertakes training to enhance his technical skills and augment his core capabilities of relationshipbuilding, negotiation and risk management. Being involved with and giving back to his community is also something Moulden is passionate about. He plays a major role in the Insurance Advisernet Foundation’s fundraising efforts and works with other young professionals to raise awareness and funds for various other charities. His previous personal fundraising activities have included running the Melbourne Marathon to raise funds for mental health organisation Love Me Love You.
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In his role as a cyber insurance specialist, Samuel Rogers is primarily responsible for the development of JLT’s book of cyber insurance across multiple business divisions within Australia. This includes responsibility for promoting cyber insurance across JLT’s client base
CHRIS PARK Director NATIONAL INSURANCE GROUP Age: 34
When Chris Park started National Insurance Group three years ago, he was building the business from the ground up with no clients. Today, Park has grown it into a thriving business and has become a well respected figure in the insurance
program for insurance brokers, from conception to rollout. The program’s game-changing approach to loyalty programs and segmentation marks a significant milestone for the Australian insurance industry. Ross now manages the transactional and operational responsibilities of the role, including the national key account management of Chubb’s Cornerstone brokers. Moving forward, Ross hopes to make the Chubb the number-one insurer for brokers in Australia – and, just as importantly, to serve as an advocate for women in executive roles in the Australian insurance industry.
and internally to colleagues, as well as developing strong relationships with cyber insurance underwriters, both locally and overseas. Through his continuous discussions with insurers, Rogers has been able to advise both clients and insurers on ongoing trends within the market, especially with regard to innovation in coverage, and has been intimately involved in drafting cutting-edge policy wordings for key clients. Looking to the future, Rogers aims to continue building JLT’s cyber capabilities and hopes to further develop his reputation as a cyber insurance leader in Australia.
industry. On a day-to-day basis, Park manages key clients while also prospecting for new leads and clients to further expand the business. Additionally, he works closely with his staff, helping to manage and progress their careers. Park’s ultimate goal is to modernise the insurance business, making the process of buying insurance as streamlined and easy as possible for clients. Using digital tools like online forms to replace the laborious proposals of the past, Park is already establishing himself as a keen innovator within the industry.
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ADAM WARE Partner BJS INSURANCE BROKERS GIPPSLAND Age: 29
Originally entering the insurance industry in 2008 as a trainee, Adam Ware has always demonstrated a hunger for personal and professional development. Diplomas, industry training, workshops and events have all been crucial in helping him develop a keen
ADAM SLOAN General manager INSURE 247 Age: 28
When Adam Sloan started at Insure 247, the business was a greenfield startup. With
eye for business, which led to his current specialisation: holiday rental insurance. Spotting a gap in the market in 2013, Ware personally constructed a website to promote BJS Insurance Brokers’ offerings, which not only yielded dividends for BJS, but also for Ware himself. After a stint as office manager, he was offered the opportunity to become a shareholder/partner of BJS Gippsland in July 2016 – an impressive feat for someone so young. Ware also took home the awards for Young Gun of the Year (Independent, 20+ Staff) and Australian Young Gun of the Year at this year’s Insurance Business Awards.
his input – and assistance from CEO Steve Sloan – Insure 247’s business has since grown to handle more than 7,000 customers. Currently overseeing the company’s Nerang operation, Sloan is responsible for looking after 25 staff, ensuring a professional, customer-experience-focused business that delivers results. Sloan has put a high priority on ongoing training to help better develop insurer relationships. It’s an approach that’s obviously working; within the last 12 months alone, Sloan and his team have added $6m in GWP. Sloan is also heavily involved in Insure 247’s growth plans and hopes to establish it as a multinational presence, starting with planned expansions for both its general insurance and tech offerings.
KIM DEMPSTER Acting underwriter manager, strata insurance QUS Age: 34
Originally joining QUS in 2015 from a broking background, Kim Dempster has witnessed first-hand the company’s exceptional growth in the last three years. During that time, she’s acquired an extensive knowledge of strata insurance and associated legislation, and developed a solid understanding of brokers’ unique needs. Dempster is responsible for ensuring that QUS accepts risks that meet its target risk appetite, are appropriately priced, underwritten, and compliant with underwriting guidelines and delegations from security providers. Moving forward, Dempster is eager to further enhance her skill set and build on the network of relationships she has already established in order to make QUS the first choice among brokers for strata insurance. Currently the acting underwriting manager for QUS nationally, Dempster works in close partnership with the general manager and sales and development manager to provide firstclass service to the broker portfolio. She also acts as the primary liaison between the claims service and AIG, the security provider for QUS.
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SPECIAL REPORT
YOUNG GUNS 2018 BRODIE PIGRAM Insurance officer QUEENSLAND URBAN UTILITIES Age: 23
Handling claims and general advice across a variety of fields, as well as implementing reports and data analysis practices in his role at Queensland Urban Utilities, Brodie Pigram has marked himself out as an employee to watch in the coming years. He is particularly dedicated to equality in the workplace, which he sees as a crucial aspect in enhancing the Australian
LAURA NICOL Claims consultant
MATTHEW DAWSON
BERKSHIRE HATHAWAY SPECIALTY INSURANCE
Business development manager
Age: 27
DIRECT INSURANCE BROKERS Age: 34
As the managing director of Direct Insurance Brokers, Matthew Dawson looks after a comprehensive portfolio of commercial and strata clients. He’s involved with all aspects of sales and broking within the business, as well as liaising with underwriters and industry associations. Living proof that loyalty to one company can pay dividends, Dawson started with Direct Insurance Brokers at age 19, became a director at age 27 and bought all shares in the business at age 31. Now employing 16 people, Direct Insurance Brokers continues to expand thanks to Dawson’s hard work and dedication. Dedicated to continuous professional development, Dawson has obtained an Advanced Diploma in Financial Services (Broking). He also believes it’s important to give back, so he has introduced a system whereby $1 from every invoice the office produces goes toward cancer care.
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In just five years in the business, Laura Nicol has already carved out a niche in marine-related risks. Helping brokers get to grips with the requirements involved in the international transport of goods and the specific issues arising out of handling
JENNA SAMMUT Account manager, professional risks & direct, retail risk services JLT Age: 27
Acting as a scheme manager, Jenna Sammut currently runs a large real estate professional indemnity portfolio for JLT. Day-to-day, she oversees renewal and new business targets, as well as negotiating renewal terms with the underwriter, maintaining positive relationships with industry bodies, providing monthly statistics
workforce, especially within the insurance industry. Currently working alongside a team composed entirely of strong, careerfocused women and under an incredibly accomplished female manager of insurance, Pigram strives to show support for equal opportunities in the workplace throughout his career. Looking to the future, Pigram has begun his Diploma of General Insurance through Queensland Urban Utilities. He also has a keen interest in computer science, information systems and general insurance; ideally, he would like to combine these areas and enter the cyber insurance industry, potentially in an underwriting position.
losses in foreign jurisdictions is a passion of Nicol’s, as is improving claims management in the most cost-effective manner. Since she joined BHSI two years ago, Nicol has grown her portfolio to span a wide variety of territories, including the US, Canada, Europe, UK, Middle East, Asia, Pacific Islands and New Zealand. She also manages her own claims team and acts as a member of the NSW YIPs committee, seeking to provide educational and networking opportunities that help better connect industry peers.
to relevant parties and communicating to all state brokers working on the scheme. Additionally, she helps enhance the continued growth of the scheme by introducing new products to clients. Promoted from account executive to account manager in 2017, Sammut has marked herself out as capable of handling a wide range of responsibilities. She will soon take on a supervisorial role, overseeing a small team within a larger segment of the business. Given her rapid growth in her role at JLT over the last 12 months, Sammut hopes to seize the moment, continuing to work to the best of her ability and achieve great results for clients, JLT and herself.
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FEATURES
SECTOR FOCUS: STRATA INSURANCE
Insuring the new generation of housing Strata insurance has traditionally been seen as a small niche in the Australian insurance industry, but it has burst into the mainstream in recent years. IB spoke to CHU’s Bobby Lehane to find out more about this growing segment
THE HISTORY of strata insurance in Australia is relatively short, dating only to the late 1970s, when new strata legislation introduced mandatory insurance requirements, first in NSW, then across Australia. During this period, there was a move away from company title units, as they were not a desirable risk from a banking and mortgage perspective. Additionally, the 1960s saw an increase in the number of new and larger apartment blocks aimed at providing more housing. Insurance companies were forced to develop new products to accommodate this largely uncharted territory. Residential strata insurance was soon followed by commercial strata and community title (i.e. community association) policies as both the strata industry and the corresponding strata insurance industry began to grow rapidly. In 2018, strata insurance is distributed both through intermediaries (brokers and strata managers) and directly (mostly smaller self-managed townhouses, duplexes and small unit blocks). According to Bobby Lehane, CEO of CHU, strata is set to become an increasingly
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dominant force in the Australian insurance industry over the coming years. “We’re very eager to offer solutions for modern living,” Lehane says. “We’ve always looked further than traditional insurance, aiming to provide customers with broader strata services as the market shifts.”
construction shows no signs of slowing down, so this is a trend that should continue for the foreseeable future. Currently, strata living is the fastest-growing form of property ownership in Australia: 4.5m people already live in private attached properties, most of which are strata
“The digitalisation of strata insurance has begun, but it’s still lagging behind many other general insurance lines. This will need to change, as the demand for more tailored, flexible insurance policies is growing” Bobby Lehane, CHU The rise of strata living While traditionally seen as a niche field, the increasing rise of strata living around the country suggests that it’s a key area of opportunity, especially for brokers. Apartment
titled, across the country. It is estimated that more than 50% of the NSW population will be living or working in strata within the next 25 years. Other states and territories are likely to see similarly rapid growth in the
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Brought to you by
coming years. Lehane believes there are three key reasons for the rise of apartments: location, cost and efficiency of space. “It’s a cliché to say it, but it’s location, location, location,” he says. “As you might expect, apartments are highly concentrated in cities, with 90% of approvals in Sydney, Melbourne and Brisbane.” People are understandably eager to live close to their work, or they might be seeking a specific lifestyle that the suburbs can’t provide. However, suburban areas still appeal to many; apartments are increasingly
being built in inner and middle suburbs close to transport, amenities and employment centres. For families looking for an integrated approach to living, working and lifestyle, such apartments can be an attractive prospect. Additionally, stand-alone houses are often built in greenfield areas, where the surrounding infrastructure could take several years to catch up. Another key reason for the rise in strata living has simply been affordability; apartments are significantly cheaper than houses – the median price of apartments is 30% lower than houses. Though house prices
ABOUT CHU CHU Underwriting Agencies [CHU] created the very first strata insurance plan in Australia and started trading in Sydney in 1978. Today, almost 40 years on, CHU has grown to become recognised as the world’s leading strata insurance specialist, underwriting more than 100,000 schemes across Australia.
have seen a reduction in recent months, for many, the cost of stand-alone housing is prohibitive. While apartments don’t
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FEATURES
SECTOR FOCUS: STRATA INSURANCE Brought to you by
offer the traditional Australian Dream of a quarter-acre suburban plot of land, complete with backyard, they do provide an affordable alternative. This leads to the final reason for the shift to apartment living: a lack of space in desirable areas. “Apartments take up less room,” Lehane says. “That’s a significant consideration in sites where space is an issue, such as inner cities. Land can be used much more efficiently to house a greater number of people.”
The future of strata insurance Given this explosion of strata living, its likely future growth and the complexity involved in obtaining the right insurance, the strata segment offers great potential for brokers. Previously, the space was dominated by a handful of specialist strata brokers, but the growth of strata living has led to an increase in the number of competitors – underwriting agencies and insurers alike. There has also been an increase in the number of general insurance brokers expanding into strata risks. “CHU developed Australia’s first specific product for strata insurance back in 1978,” Lehane says. “There have been tremendous changes in the way these products are administered since then, of course, but we still work to stay at the cutting edge of the market.” The complexity of strata insurance and legislation presents an ideal environment for brokers to work alongside their clients, aiding them with the process. Brokers entering the strata space need to be seen as trusted experts in strata – not only in policy and claims service, but also in the specifics of legislation governing strata in each state. This will aid in guaranteeing a higher standard of customer service and care, enhancing the reputation of the industry in the long term.
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Moving ahead, the shift to brokers providing strata insurance will continue to accelerate. Smaller self-managed schemes will increasingly purchase their insurance online, but in light of the increasing complexity of schemes, strata insurance will continue to be an ideal avenue for brokers to aid their clients. With a wider array of strata insurance providers on the market than ever before, it can be easy for brokers to be overwhelmed by choice. But there are a number of key criteria brokers should keep in mind when choosing a provider. Lehane advises brokers to choose an insurer that has a strong local presence and knowledge – including offices in each state with national underwriting and claims support – as well as scalable services for catastrophe support, significant digital support, and a panel of assessors and builders who are also strata specialists. Digital support is one area where Lehane feels there’s room for improvement, given the increasingly internet-savvy public and a growing expectation for insurers to provide round-the-clock availability. “The digitalisation of strata insurance has begun,” Lehane says. “But it’s still lagging behind many other general insurance lines. This will need to change, as the demand for more tailored, flexible insurance policies is growing.” He outlines a number of other factors that he sees as indicative of the quality of a strata insurance provider. “It is essential that brokers understand the relationship between the owner’s corporation/body corporate and strata managers,” he says. “Additionally, they should have a relationship with the property manager or building manager. And perhaps most importantly, brokers need to understand the unique needs of an owner-occupier, owner-investor and tenants.”
FAST FACTS: THE STRATA SEGMENT
The number of apartments constructed each year has tripled since 2009
In 2016, apartments accounted for approximately a third of residential building approvals
Construction of high-rise apartments takes an average of two to three years
Large-scale projects can take four to five years to complete
More than a fifth of all spending by Australian households is directed toward housing Source: Houses and Apartments in Australia, RBA, 2017
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FEATURES
SECTOR FOCUS: PROFESSIONAL INDEMNITY
Business as usual Professional indemnity insurance is gaining increasing prominence in the public eye. Declan Rye of London Australia Underwriting talks through some of the common issues clients might face TRADITIONALLY, PROFESSIONAL indemnity insurance has been viewed as the domain of core professionals like accountants, engineers, architects and lawyers. However, it’s available for a far broader umbrella of roles – PI cover should really be considered by anyone who provides a service other people rely on. “The definition of ‘professional service’ can be broad, often extending well beyond
ABOUT LONDON AUSTRALIA UNDERWRITING Established in 2005, London Australia Underwriting provides brokers and clients with innovative products backed by first-class security. Any broker wishing to establish a trading arrangement with LAUW is strongly advised to contact the management team. For more information, visit lauw.com.au.
popular perception,” says Declan Rye, director of London Australia Underwriting. “Ensuring a duty of care, providing clients with the relevant instructions to use your product correctly – these are just some of the areas where businesses may find themselves encountering issues.” Given that Australia is a highly litigious society, businesses need to be more aware than ever of the necessity of PI insurance. While the financial protection offered is clearly the key benefit, it’s also important to remember that PI insurance can also protect a business’s reputation. PI insurance will often provide the legal and reputational defence needed, particularly when a business feels it has done everything right and the claim is contrived. “Without your reputation, your business will disappear soon after,” Rye says.
The changing face of PI Having worked in the industry for more than
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25 years, Rye has seen a significant shift in the way the PI market functions. “Working in London in the late ’80s and ’90s, professional indemnity insurance was a very new product, seen as a very specialist area with a handful of lead markets,” he says. “Today, a broker can access all the markets they need to with a click of a button or a short email.” This reduction in complexity has allowed for more simplified policies and greater ease of transaction for many businesses. On paper, this has made it easier to pursue PI insurance, but Rye expresses ambivalence about this phenomenon. PI is inherently a complex area of insurance, and inadequate policies can cause considerable headaches. “Simplified policies are great for some businesses that have relatively simple needs,” he says. “But they can also be dangerous for some of the more technical industries. Ultimately, most businesses can benefit from the services of a good broker who will discuss the full range of coverage they require, not just simply negotiate a price.” Greater simplicity has also led to a boom in businesses seeking opportunities in this potentially lucrative market. PI insurance has enjoyed rapid growth in Australia in recent years, and there’s been an ongoing increase in the number of Lloyd’s coverholders in the local market. But this has yielded numerous consequences: Competition has been fierce, and subsequently, rates have been continually dropping to levels that are now unsustainable. Brokers need to ensure they communicate the changing market conditions to their clients so they are fully informed and educated about the cyclical effect of the market. Many brokers who are more recent entrants to the field have never experienced
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a hard market and are struggling to communicate rate rises to their clients. Rye says many insurers have overlooked the fact that PI is long-tail business; it can take anywhere from one to five years – even longer in some cases – for a claim to crystallise and be closed with a final settlement amount. Withdrawals from the Australian market are already starting to occur, likely due to a combination of falling rates and incoming claims. “For an underwriter with little experience in long-tail business, this time delay can create confusion,” Rye says. “Eventually
“We expect to see an increase in real estate related matters, including valuers, in the next 12 months or so,” Rye says. “Banks are now beginning to cut back in terms of lending, and there are greater controls on foreign investment, which will have a knock-on effect.” Wider economic uncertainty also frequently impacts on construction-related claims; this will likely be heightened by greater scrutiny on the industry, thanks to high-profile issues such as the faulty cladding in the Lacrosse and Grenfell towers in Melbourne and London.
“Simplified policies are great for some businesses that have relatively simple needs. But they can also be dangerous for some of the more technical industries. Ultimately, most businesses can benefit from the services of a good broker” Declan Rye, London Australia Underwriting the claims catch up, and I believe this is what we are now witnessing in the Australian PI market.” Given the current state of low rates versus incoming claims, Rye anticipates more withdrawals from the Australian market in the next six to 12 months. Looking further ahead, there will also likely be gradual rate increases over the next 12 to 18 months as the market corrects to more sustainable levels. Additionally, some occupations will be hit harder than others due to more adverse claims events.
Accountant’s PI is also of note – for some time, the industry has experienced increasing claims activity, in terms of both the numbers of claims and the average size of each claim. Common issues range from penalties imposed by the ATO for late lodgement of tax returns or BAS through to incorrect advice relating to non-concessional superannuation contributions. Nonetheless, Rye remains optimistic about the future of professional indemnity in Australia. “Broadly speaking, we are just entering another phase of the cycle,” he says.
PI AND THE ROYAL COMMISSION While there’s not yet been any notable PI claims activity, aside from some costs incurred for attendance at inquiries, Rye suspects that the royal commission into the banking and insurance industry is likely to yield a claims legacy in the future. “We are yet to see exactly how any claims will play out,” he says. “However, the potential for class actions, civil penalties and potential criminal investigations certainly exists.”
“No doubt it will correct itself in time.”
Avoiding common issues Fortunately, there is still plenty of choice for brokers when choosing a professional indemnity insurer, but of course, prevention is better than a cure. There are numerous ways businesses can protect themselves from potential PI claims. First and foremost, it’s essential to have accurate retainer agreements in place with any new or existing clients. Any such retainer agreement should be recorded in writing and accurately describe the services the insured has been retained to provide, including who will perform the work, applicable rates and timeframes (if relevant). Any such agreement should also be regularly reviewed and updated if required. Additionally, the use of robust disclaimers, while not a watertight safeguard, can at least establish expectations for both parties. Rye also stresses the importance of keeping client files up to date – even details that might appear to be minor.
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SECTOR FOCUS: PROFESSIONAL INDEMNITY Brought to you by
“Businesses really need to stick to what they’re good at. We often see claims arising from situations where a company has diverted away from their established path and taken on a role that involves unfamiliar territory” Declan Rye, London Australia Underwriting “Often a claim will refer to verbal advice, so evidence of such verbal advice is essential when proving negligence,” he says. “This can be in the form of a follow-up note to the client detailing the verbal advice that was provided.” Internal systems must be secure and internal processes fully functional to ensure that the appropriate checks and balances are
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CHOOSING A PI PROVIDER When selecting a PI provider, the usual rules of choosing an insurer still apply – security and credit rating should be the starting point. Australia is fortunate to be serviced by a number of insurance carriers with strong credit ratings. Then there are key questions around the insurer’s approach to settling claims: • How long have they been around?
in place for quality of work. Additionally, Rye has a simple but crucial tip for business: Don’t overstep the bounds of your expertise. “Businesses really need to stick to what they’re good at,” he says. “We often see claims arising from situations where a company has diverted away from their established path and taken on a role that involves unfamiliar territory.”
• Do they actively look to assist the insured party? • Are claims settled in a timely fashion? • Do they have a record of paying claims? Brokers should then look at the quality of the insurer’s underwriting services and the breadth of coverage offered through their products.
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FEATURES
SECTOR FOCUS: HEALTHCARE
A new era of health insurance tech As personal injury and workers’ compensation insurance embraces new technologies, how can the industry ensure that claimants remain at the forefront? Insurance Business spoke to Gallagher Bassett’s Darrin Wright to find out 44
TODAY, ALMOST all of our everyday activities are influenced by technology – including healthcare and personal injury management. New tools and approaches are making healthcare an easier-to-access commodity for all; the internet already enables patients to seek online consultations when and where it suits them. You can take over-the-counter tests to analyse your blood, sequence your genome and check on the bacteria in your gut. Smartphones and wearables are also allowing people to monitor their own health and engage with their community. Healthcare is in the middle of an industrywide shift toward health and wellbeing, person-centric rehabilitation and the improvement of safety culture. In light of rising costs and ever-changing technology, there’s never been a more important time to
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innovate and adapt to this changing landscape. Accordingly, personal injury claims management needs to evolve in line with these new developments. “Historically, claims management has been held back by the inability to access information, treatment or support services at an early stage,” says Darrin Wright, Executive Director of Personal Injury at Gallagher Bassett. “However, technology has gone a long way to addressing these concerns. Thanks to increased connectivity, we can improve claimant care, reduce treatment inefficiencies, and enhance rehabilitation and recovery, while also increasing employee productivity on our end.” Though he’s a staunch advocate for the increased use of technology in the claims process, Wright is well aware that it’s also crucial for customers to still feel valued as individuals. Claimants often feel that they have a lack of knowledge and/or control over their recovery. Poor communication and inadequate engagement leave them feeling out of the loop. When handled correctly, technology can eliminate these issues – but handled poorly, it can leave claimants feeling like just another cog in the machine. “It’s critical that technological advancement isn’t misconstrued as something that depersonalises the claims process,” Wright says. “The emphasis should always be on putting claimants at the centre of everything.”
The rise of customer-centric service Empowered by social networks and their digital devices, consumers are increasingly dictating what they want, when and where they want it – personalised service that reflects their needs and lifestyle. This presents additional opportunities for insurers, too; as the number of sensors and other devices connected to the Internet of Things [IoT] explodes, service providers
now have the opportunity to leverage data to better meet customer needs and provide a stronger value proposition. Ultimately, this should lead to a situation where customers are able to own and control their experiences, and companies are able to minimise costs, improve productivity, and increase customer satisfaction and loyalty. In the personal injury space, providing the appropriate information, treatment and support services for claimants has always been a challenge. Service providers, schemes and practitioners need to ensure they are providing the most accurate diagnoses and advanced treatment plans, while simultaneously ensuring the claimant has easy access to everything needed for their recovery. Technology has helped meet these
THE INTERNET OF THINGS AND HEALTHCARE The Internet of Things is a catch-all term for everyday objects that connect to the internet, such as smartphones, radios, TVs or even refrigerators. From a health perspective, one of the most common examples is a wearable health tracking device like the Fitbit, which can sync with apps via a phone or computer to provide users with a variety of data such as steps taken, heart rate and sleep quality. It’s likely that such data will eventually be used to assess clients’ health and claims, providing a more holistic overview than has traditionally been possible.
“Thanks to increased connectivity, we can improve claimant care, reduce treatment inefficiencies, and enhance rehabilitation and recovery, while also increasing employee productivity on our end” Darrin Wright, Gallagher Bassett needs: Big Data has enabled faster diagnosis, prediction capabilities and access to evidence-based treatment options for practitioners and case managers. Additionally, claimants can now access claims or treatment information via digital applications, attend online consultations with medical practitioners or use wearable devices to track and monitor their progress. There has also been increased development and implementation of other tech solutions, such as platforms and chatbots that empower customers and reduce the need for over-the-phone interaction. And there’s
been a shift from desk-bound case management for highly sensitive or complex cases to providing face-to-face service. There have been other changes, too. Historically, the personal injury arena has had a focus on either getting the claimant back to work or, in cases where this is not possible, providing compensation in either a lump sum or on an ongoing basis. “In principle, this made sense from an insurer’s perspective,” Wright says. “But in practice, it’s generated very mixed results in terms of recovery and customer satisfaction.” It’s now recognised that a more holistic
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option is better. Rather than simply trying to speed the claimant back to work, the focus is on improving their quality of life across numerous areas, including home, the wider community and the workplace. Physical and mental wellness and recreation activities all play an important role in successful recovery. “For example, at Gallagher Bassett, we offer a Network Support Service, which helps reconnect injured workers and their families to their community following an injury,” Wright says. “It empowers them to manage
also realising that the best way to reduce claims is to prevent issues from occurring in the first place. “It seems pretty obvious in hindsight,” Wright says, “but sometimes it takes a while to realise that the simplest ideas are the best.” The integration of risk management processes, early intervention strategies, and communication campaigns that target common injuries and promote work and individual health will not only prevent injuries from occurring, but also mitigate the
“It’s critical that technological advancement isn’t misconstrued as something that depersonalises the claims process. The emphasis should always be on putting claimants at the centre of everything” Darrin Wright, Gallagher Bassett their own health and care, which results in better outcomes for everyone.” Additionally, the burden of administration and manual tasks has a significant impact on productivity, which can have a direct impact on the wellbeing of claimants. Delayed claims can extend recovery time, exacerbate their condition and increase overall claims costs. However, the increased use of technologies like blockchain, artificial intelligence and robotics now allows subsets or entire portions of the claims process to be automated. This not only improves worker efficiency, but also can aid in the more accurate and timely completion of tasks. In a time of rising costs for both businesses and consumers, more companies are
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WORK HEALTH AND SAFETY BY THE NUMBERS
$68.1bn
Total cost of work-related injuries and diseases in Australia
49%
Decrease in workplace fatality rate from its peak in 2007
5.2 weeks
Median time lost due to injury
$10,800
Median compensation paid per claim
severity of those that do occur. Schemes, service providers and companies have invested heavily in this space and are starting to reap the benefits. According to Safe Work Australia, the number of serious injury claims has decreased by 17.4% in the last five years.
Keeping sight of the human side In most industries, discussion around digitalisation and the increased use of technology such as predictive analytics, robotics, automation and artificial intelligence has tended to revolve around how these tools can be used to improve and personalise the customer experience. However, Wright urges insurers not to lose sight of the human element. “Many of these possibilities are really
Source: Safe Work Australia
exciting and will probably be adopted as best practice,” he says. “But it’s important not to lose sight of the role human interaction has to play. You’re dealing with people at a sensitive time of their lives.” In order to take advantage of the benefits of technology, the personal injury and healthcare industry needs to develop experiences that allow customers to easily move between digital and human interactions so they can get the experience and service they want. Ultimately, technology should allow companies to provide more strategic human contact and be proactive in the service they provide, enhancing – rather than replacing – the human aspect.
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FEATURES
COMMERCIAL FLEET INSURANCE
What’s driving fleet insurance? Major legislative changes are coming to the transport industry in October 2018. Insurance Business talked to the experts to see what’s ahead COMMERCIAL FLEETS are big business for car sellers in Australia. According to VFACTS, a whopping 52% of new car purchases during 2017 were accounted for by business, government and rental buyers. Accordingly, commercial fleets also represent big business for insurance companies. It’s an
replacement, expediting expenses and driver repatriation. In some cases, policies even cover funeral expenses and trauma counselling services for drivers, family and staff following an accident. These are services that go well above and beyond the simple ‘repair and replace’ policy that had previously dominated
“Price is still important, but overall value for money has become more important. Additional services ... such as risk management, client engagement and flexible claims solutions are being given increased importance” Tony Dodd, GT Insurance area that presents a unique set of challenges for brokers and providers alike, but nonetheless provides a valuable service to businesses all over Australia. Yet it’s far from a static service. Fleet insurance is constantly evolving as providers aim to better meet the needs of consumers. Recent examples of this evolution include new-for-old
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the market. Additionally, fleet pricing is now more stable and based on data and analytics. Specialists must understand customer segments, occupations and benchmarks for ‘standard’ risks. “We are seeing a flight towards quality across the fleet insurance market,” says John Hill, national underwriting manager for heavy motor
at NTI. “Businesses are looking to their insurance representatives to provide advice on how to best protect their operations as a whole.”
Finding the right partner Steve Hamilton, general manager of client services for Fleetsure, cites four main factors brokers should consider when selecting a commercial fleet insurance provider: “Consistency in pricing, depth of coverage, quality of security, and the level and speed of service are crucial when selecting an insurer.” An insurer should be able to explain how a client’s risk profile varies from the standard and why the premium is higher or lower. Armed with this information, fleet owners can take actions to change risk and shape their premium according to their individual needs. Realistically, fleet owners can expect to make claims far more frequently than owner-drivers. An owner-driver might make a claim every few years throughout the lifespan of a car, if at all. By contrast, fleet owners might make a claim every few months due to the larger scale of vehicles, greater variety of drivers and overall time spent on the road. Risk evaluation and the knowledge and skills of the underwriting team are also key consid-
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erations. The transport sector is continually evolving, so it’s important to have an underwriter who understands the client’s needs and can arrange appropriate products to cover the risk. Finally, access to decision-makers at all levels will ensure fair and reasonable outcomes for your clients. Cost, of course, remains a driving factor when choosing an insurer, though it shouldn’t necessarily be the deciding factor. “Price is still very important, but overall value for money has become more important,” says Tony Dodd, general manager of sales and distribution at GT Insurance. “Additional services outside of the traditional products, such as risk management, client engagement and flexible claims solutions, are being given increased importance.” The benefit of aligning with a known specialist insurer is that they have an intimate understanding of the requirements of the business and the adviser, as well as a foundation built on experience. “Engaging with a specialised insurance provider typically means product and service inclusion that are more closely aligned with the client’s needs and are designed to complement each other,” Hill says. “For example, in the heavy motor area, marine and motor product often go hand-in-hand.” Additionally, brokers and customers alike should never underestimate the value of picking up the phone. Whether it’s a claim, advice or support on a product or offer, access to an expert is a great value-add. Whatever the individual needs of the fleet owner, having a high standard of insurance in place is absolutely essential. Vehicles are an integral part of the business – indeed, they often are the business. Having the correct insurance policies in place is vital to a fleet’s livelihood because every day a vehicle is off the road, it hurts the overall bottom line.
“We are seeing a flight towards quality across the fleet insurance market” John Hill, NTI The road ahead Significant legislation changes will be occurring in the next few months that will have a substantial impact on commercial fleet insurers and customers alike. As noted on the National Heavy Vehicle Regulator’s website: “On 1 October 2018, the Heavy Vehicle National Law [HVNL] will be amended to provide that every party in the heavy vehicle transport supply
chain has a duty to ensure the safety of their transport activities.” For HVNL-participating jurisdictions, these legal reforms will significantly broaden the scope of who is considered part of the transport industry and what responsibilities they need to manage. This will likely result in significant concern from consignors around how they select transport service providers. However,
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FEATURES
COMMERCIAL FLEET INSURANCE
ADVICE FROM THE EXPERTS
“Fleet vehicles typically earn a source of income, so time off the road incurs a cost in more ways than one. That’s why claims service is a vital factor to consider when buying motor fleet insurance.” John Hill, NTI “Always understand what external factors are pushing up premiums across the board that your client will have to share – for example, weather, congested roads, infrastructure changes and more expensive in-car technology.” Steve Hamilton, Fleetsure “Having trust that your vehicles are protected by a superior insurance product alleviates stress and allows the business to get back on track significantly faster.” Tony Dodd, GT Insurance
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there is an opportunity for fleets to leverage current and past investments in safety to gain an advantage when competing for work. The reforms will also likely necessitate considerably more communication between parties in the transport industry. Fleet operators will need to consider how they gather information around risk management and compliance from employees and subcontractors. It will also change how they respond to
motor market has hardened,” Hamilton says. “Brokers will be presenting premium increases to clients, and they need to be communicating with clients to ensure they’re not passing on bad news a week or two before premiums are due.” Accordingly, customers are likely to look for more for their money to better justify their expenditure. “The benefits that insurers can provide
“There is no doubt that the commercial motor market has hardened ... [Brokers] need to be communicating with clients to ensure they’re not passing on bad news a week or two before premiums are due” Steve Hamilton, Fleetsure safety-related issues and how they communicate them to their customers. Most importantly, this new legislation will establish a positive obligation across the industry to mitigate public risk much more effectively. Ultimately, it will bring about a safer industry with more accountability and more responsible clients taking a proactive approach. Aside from these legislative changes, the industry will also continue to adapt, driven both by client needs and external market forces. Broadly speaking, pricing will rise; modern vehicles are simply more expensive to repair. Occupations with a higher claims frequency will require innovative and nimble programs to manage their risk profiles. Congestion in capital cities, along with driver shortages, will also continue to be a challenge for business owners. “There is no doubt that the commercial
outside of the traditional product will become greatly valued, particularly around long-term cost-saving measures,” Dodd says. Additionally, self-driving cars are beginning to attract greater attention among the general public and insurance companies alike. The full impact they will have on the insurance industry in Australia remains to be seen; in all likelihood, it will be dictated by the precedent set by overseas safety records, government legislation and wider consumer pickup. There is already a quiet technological revolution underway among fleet vehicles, which have seen the adoption of on-board cameras, greater use of telematics-based policies and the impending integration of electronic work diaries for fatigue monitoring. “Ultimately,” Hill says, “these technologies will become more common and should lead to improved safety outcomes on the road.”
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FEATURES
BROKERAGE INSIGHT
Cultivating expertise James Skiadas, principal of IMC Insurance Brokers, talks about how brokers can compete with direct insurers and why sub-brands are key
SINCE 1994, South Yarra-based IMC Insurance Brokers has been providing broking services to a broad array of clients all over the country. Yet no matter how far its reach expands around Australia, IMC will always place a special focus on its local community. Principal James Skiadas has lived most of his life in the area, and he sees IMC as a way to give back to the community, providing advice and insurance to local businesses and individuals who are trying to get ahead. Skiadas started his career in 1987 as an agent with Priority Insurance Agency, so making the transition to broker was a logical progression. Since its inception, IMC Insurance Brokers has been a tightly knit family affair. The first recruit was Skiadas’ wife, Mattie, ‘poached’ from her then-role as a legal secretary. In 1995, Skiadas’ brother, George, came on board as the business began to experience rapid growth. He remains with the company today, overseeing the retail business and maintaining the commercial special risks division. The firm has since expanded into a second generation – in 2013, Skiadas’ daughter, Anthea, also joined the company. Today, Skiadas sees client education as one of the key aspects of IMC’s mission. In an era when many direct insurers are aggressively
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marketing to customers that might have once been the provenance of brokers, client education is a feature that sets IMC apart from many of its competitors. Importantly, Skiadas doesn’t necessarily view direct insurers as a threat; rather, he sees them as providing a distinct service from his own. “If a prospective client just needs insurance, I’m happy to have a chat with them and give them some direction on where they should be going,” he says. “I’ve always applied a simple strategy – does the client need insurance, or does the client need an insurance broker?” For those in search of bespoke service, brokerages are still often a more appropriate long-term investment. This is particularly true for businesses that need more complex policies
or for consumers who are too time-poor to wrestle with the intricacies themselves. “Customers are too busy these days,” Skiadas says. “They don’t necessarily have the time to become experts on insurance, and they may be looking for support that the direct insurers don’t or can’t necessarily provide.” Because the bulk of IMC’s new business comes via word of mouth and referrals, Skiadas’ simple strategy has done much to aid not only short-term customer satisfaction, but also retention. Many of the firm’s clients have been with IMC since its inception. “Our retention rate is quite high, and it’s really the result of building that relationship with our client,” Skiadas says. “Many brokers opt for a standard renewal, but we always
THE INDUSTRY THEN AND NOW In the almost 25 years since IMC Insurance Brokers was founded, the insurance industry has undergone numerous shifts. One of the most profound changes has been the way brokers are perceived by customers. “The insurance broker was really considered a salesperson back then,” Skiadas says. “Now it’s more about being a professional expert on insurance.” He credits the internet and the rise of direct insurers for spurring this change. “Customers are now able to directly access competing rates from insurers, as well as better educate themselves on insurance in general,” he says.
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FAST FACTS: IMC INSURANCE BROKERS
Area of specialty: SMEs, particularly in local communities Year founded: 1994 Headquarters: South Yarra, Vic Leadership: James Skiadas, principal; George Skiadas, head of retail business
“I’ve always applied a simple strategy – does the client need insurance, or does the client need an insurance broker?”
aim to provide our clients with additional options. We’re not trying to sell them on an insurance policy – we’re trying to help them make a decision.” Looking to the future, Skiadas is optimistic about the insurance industry as a whole, and he sees room to expand into new markets in spite of the encroach of direct insurers. He believes expansion into sub-brands is an area of key importance; in recent years, IMC has invested in several, all of which cater to specialist markets outside of its usual purview. “I’m actually quite big on sub-brands,” Skiadas says. “One of our recent successes has been a brand called InGear, which serves as an insurer for prestige cars.” Both inside and outside the insurance industry, many companies stumble when attempting to launch a new product under an existing brand; the product is often of a high standard, but lacks insight into its wider public perception. Skiadas understands the importance of perception, and he aims to leverage sub-brands to maintain IMC’s positive momentum. “Ultimately, we want customers to be able to say, ‘I’m working with a broker who understands my business, understands the area and understands the market’.”
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SURVEY
2018
Brokers are invited to participate in the fourth annual Insurance Business Brokers on Underwriting Agencies survey. Rate them on: coverage, claims turnaround times, broker support, commission structure, and overall service levels. One lucky respondent could win a pair of Bose headphones (RRP $229).
Look out for survey information and updates at www.insurancebusinessmag.com
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PEOPLE
CAREER PATH
NO REGRETS
A chance introduction to insurance grew into a passion that has led John Mead around the globe Mead spent much of his adolescence and young adulthood playing guitar in bands. Ultimately leaving his band before it went on to achieve chart-topper status, Mead fell into insurance after applying nearly everywhere in his search for full-time work “I left the band before it had success – I’m the fifth Beatle!”
1987
PLAYS THROUGH SCHOOL
1993 MOVES TO LONDON Mead relocated from his native Birmingham to London after being approached by Royal. He was prompted to make the move by the principle that has guided many of his decisions
“I never wanted to ask ‘what if’. It was a great opportunity: I describe the London market as the same as the Birmingham market but with more zeros on the end” 2000 CHANGES COURSE When asked by management to consider a move away from his construction and engineering background and into the general insurance division, Mead didn’t hesitate “I’d made my mark through hard work and excellent relationships. I had very senior executive support; I had a guardian angel. I never let them down, and they brought me with them”
2013 HEADS DOWN UNDER Given the chance to take a job in Australia, Mead bargained his way into an even more demanding role “I was offered [the job of] client manager for Australia, but wanted more, so I said I wanted the Asia role as well. It’s a big geography to cover: it’s a lot of club sandwiches and hotel rooms and time spent in airports. In the five years I’ve held the role, I’ve helped grow the book and the team”
1990 FINDS HIS CALLING In what he considers his first ‘proper’ insurance job, Mead was given a company car, a Ford Escort XE3i, to facilitate his visits to industrial clients “It was my first real taste of insurance – the penny dropped for me then. We get to see all types of businesses and people in different walks of life, and that variety is the hook. And the car – it was the pride of my life”
1999 SEES THE OTHER SIDE OF THE COIN After working in a series of business development roles, Mead seized an opportunity to take on his first underwriting position “It wasn’t a promotion; it was an internal move – another ‘what if’. When they approached me and asked if I was interested, I thought being strong in one area meant I should develop in other areas, and I could use my relationships in the London market in underwriting. It’s the other side of the coin”
2004 JOINS XL GROUP Approached by a headhunter, Mead leapt at the opportunity to join XL Group, despite never having heard of the company “I had no idea who they were, but I liked the idea of working for a young and nimble Bermuda insurer. It felt like I could be a bigger fish in a smaller pond; I could drive more strategy and deal with more direct clients”
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PEOPLE
OTHER LIFE
Siafas supple ments her own yoga practice with a weekly class taught on the beach a nd a nother at the bota nical gardens
TELL US ABOUT YOUR OTHER LIFE Email ibo@keymedia.com.au
6
Days per week that Siafas practices yoga
30
Typical number of poses in an hour-long yoga class
2
Daily yoga classes offered on Siafas’ Byron Bay retreat
A BIT OF A STRETCH Lauren Siafas calls yoga the reset button for her mind LAUREN SIAFAS had been practising yoga for 15 years before deciding to “dive in” by training to become a teacher. Precipitated by a traumatic breakup (a 12-month break from her now-husband), the decision led Siafas, the executive director at Aspire Insurance Solutions, to a seven-day retreat in Bali. “It changed my
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whole inner landscape,” she says. “On every level, it made my life easier to manage; it was a connection I didn’t want to let go of.” Since then, Siafas’ yoga practice has evolved to include an early morning session each day that she says equips her for work, complemented by teaching
classes two days a week. And, in a continuation of the retreat that changed her life, she hosts a yearly five-day yoga retreat in Byron Bay. For Siafas, seeing her students connect with yoga is just one of the many benefits. “It’s very rewarding to teach and see others go on their own journey,” she says.
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