insurancebusinessonline.com.au Issue 8.04
PROFESSIONAL INDEMNITY
New trends that are rapidly reshaping this segment
PRODUCT RECALL COVER
How to help your clients prepare for the worst
DEALING WITH WATER DAMAGE
What brokers and insurers need to know
A BRIGHTER FUTURE Insurtech Australia CEO Rita Yates on how startups and incumbents can partner for innovation
ELITE WOMEN IN INSURANCE 25 women who are changing the face of Australia’s insurance industry
ZURICH SME INSURANCE. GO WORLD-CLASS.
Zurich’s fast turn-around, easy access and swift, compassionate claims response makes us the natural choice for SME business packages. For a service that is truly world-class, contact Zurich today. VISIT Z.STREAM FOR A SMALL BUSINESS INSURANCE QUOTE. 1800 426 021
ZURICH INSURANCE. FOR THOSE WHO TRULY LOVE THEIR BUSINESS. This information is general advice only and does not take into account your objectives, financial situations or needs. You should obtain and consider the relevant Product Disclosure Statement and Policy Wording (as applicable) from zurich.com.au before making a decision. The issuer of general insurance products is Zurich Australian Insurance Limited (ZAIL), ABN 13 000 296 640, AFS Licence Number 232507 of 5 Blue Street, North Sydney NSW 2060. LEWG-014537-2019 ZU23943 INSBUS V1 05/19
ISSUE 8.04
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CONTENTS
@InsuranceBizAU facebook.com/InsuranceBusinessAU
UPFRONT 02 Editorial
Fostering more opportunities for women
ELITE WOMEN IN INSURANCE
SPECIAL REPORT
FEATURES
36
A PROFESSIONAL APPROACH Professional indemnity is rapidly branching into new frontiers – so how can you stay up-to-date?
06 Statistics
Key data that should be on your radar
08 Opinion
Organic growth starts with collaboration
10 News analysis
Checking in on insurers’ digital transformation journeys
22
An insurtech covers kangaroo collisions
14 Insurer update
Zurich could be on the hook for defence costs from a 2017 mass shooting
40
IB spotlights 25 women who have risen to the upper echelons of Australia’s insurance industry
FEATURES
PEOPLE
In the age of automation, Rivers Insurance is setting itself apart by making things personal
THE HUMAN ELEMENT
Insurtech Australia CEO Rita Yates reveals how she’s helping to forge productive partnerships between startups and incumbents
18
An anecdotal look at gender diversity
12 Intelligence
ELITE WOMEN IN INSURANCE
A CHAMPION OF INNOVATION
04 Head to head
16 Underwriting agencies update
How a coordinated response helped one agency avoid fallout from a cyber attack
FEATURES 32 Bracing for future impact
A look at the biggest changes in the accident and health insurance space
42 Preparing for the worst
How to protect your clients from a crippling product recall
50 Inside the Claims Tech Summit
Go behind the scenes at IB’s latest event
FEATURES
46
BEYOND SURFACE RESTORATION
Without proper remediation, water damage can lead to a host of issues. Here’s what you need to know
PEOPLE 55 Career path
Emma Hosking is no stranger to adapting to a new environment
56 Other life
On top of the world with adventure junkie Nic Curkoski
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UPFRONT
EDITORIAL
Giving women a voice in insurance
T
ake a look around you – what do you see? Chances are that, as an insurance industry employee, you probably see a lot of men in suits. Most will probably also be over 35 and white. Your colleagues may be extremely hard-working and thoroughly deserving of their jobs, but there’s a phrase that rings true: We can’t be what we can’t see. For women in the insurance industry, it’s tough to imagine thriving in an executive position when they only see men in senior roles. This suggests that either companies haven’t been able to retain their female employees long enough to promote them, or they simply overlook them for promotions. Whatever the reason, it’s prompting women to leave the industry. According to Ericka Fang, associate attorney at Kaufman Borgest & Ryan, women tend to leave insurance if they don’t feel like they’re getting suitable recognition in four key areas: assignments, opportunities, compensation and promotion, and mentoring.
“If women don’t feel like they’re getting equal opportunities ... they’re leaving to join other companies or industries” “If women don’t feel like they’re getting equal opportunities in those four key areas, they’re leaving to join other companies or industries where they see women in managerial, supervisory and executive roles,” Fang told Insurance Business. “They want to work in companies and industries where they see women thriving.” Many top insurers have made steps in the right direction by reporting their gender pay gaps – but in most cases, that has just highlighted the continued disparity that’s a result of men earning more because they occupy the bulk of senior leadership positions. “Women want fair compensation and a fair and transparent promotion structure where they can know what’s expected of them and whether they meet the mark or not,” Fang said. “Whether companies want to be transparent or not, employees are much more transparent in the age of social media, which is going to force companies to make changes.” With Lloyd’s and others recently embroiled in sexual harassment controversy, insurance clearly still has a long way to go in treating women with parity. That’s why we hope you’ll join IB in giving women the voice they deserve at our upcoming Women in Insurance Summit at The Westin Sydney on 13 August. The team at Insurance Business
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EDITORIAL Managing Editor Paul Lucas Journalists Nicola Middlemiss, Alicja Grzadkowska, Lauren Ingram, Bethan Moorcraft, Ksenia Stepanova News Writers Lyle Adriano, Krizzel Canlas, Terry Gangcuangco, Mina Martin, Gabriel Olano Staff Writers Tom Goodwin, Libby MacDonald, Joe Rosengarten, Ryan Smith Copy Editor Clare Alexander
CONTRIBUTORS Arthur B. Seifert
ART & PRODUCTION Designer Martin Cosme Production Manager Alicia Chin Traffic Coordinator Freya Demegilio
SALES & MARKETING General Manager Peter Smith Commercial Development Manager Sophie Knight Global Head of Communications Lisa Narroway
CORPORATE Chief Executive Officer Mike Shipley Chief Operating Officer George Walmsley Managing Director Justin Kennedy Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil
Editorial Enquiries nicola.middlemiss@keymedia.com Subscription Enquiries subscriptions@keymedia.com.au Advertising Enquiries sophie.knight@keymedia.com.au peter.smith@keymedia.com.au Key Media Regional head office, Level 10, 1–9 Chandos St, St Leonards, NSW 2065, Australia tel: +61 2 8437 4700 • fax: +61 2 9439 4599 www.keymedia.com Offices in Sydney, Auckland, Denver, London, Singapore, Toronto, Manila, Seoul
Insurance Business is part of an international family of B2B publications, websites and events 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 luther.rahman@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
HEAD TO HEAD
ProfessionalEdge Professional Indemnity Insurance ... giving you the EDGE.
Introducing ‘ProfessionalEdge’, AIG’s updated Professional Indemnity product suite. With professional services exposures now transcending geography, industry, culture, and business size or type, it is vital for businesses to safeguard against civil liability risks. ProfessionalEdge offers a wide variety of coverage including Civil Liability, Advanced Defence Costs, Breach of Warranty of Authority, Compensatory Fines and Penalties and free Automatic 84 month Run-Off period (conditions apply). ProfessionalEdge is available online via Sunrise or the award winning Transact Business Portal. Let us add our expertise to yours...to give you the EDGE. Learn more at aig.com.au/professionaledge American International Group, Inc (AIG) is a leading global insurance organisation. Building on 100 years of experience, today AIG member companies provide a wide range of property casualty insurance, life insurance, retirement products, and other financial services to customers in more than 80 countries and jurisdictions. These diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. AIG commmon stock is listed on the New York Stock Exchange. This document is provided as a general overview of the subject matter and should not be taken as providing any specific advice, legal or otherwise. Availability of cover modules is subject to underwriting approval. Insurance products are issued in Australia by AIG Australia Limited ABN 93 004 727 753 AFSL No 381686. AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our websites at www.AIG.com and www.AIG.com.au © AIG – All rights reserved.
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UPFRONT
HEAD TO HEAD
Has being a woman affected your insurance career? Given that men still hold most high-level positions in insurance, do women in the industry feel their gender has held them back?
Simone Dossetor Chief operating officer Munich Re Australia
“I’ve enjoyed the journey of my career, particularly the opportunity to work in insurance and the privilege of embedding a diversity and talent strategy in partnership with the leadership team. While most companies haven’t solved all their gender equality issues, I am heartened that many in insurance have embraced a rigorous and detailed program to continue transforming workplaces to create greater balance. We best serve our clients when our workforce is as diverse, talented and passionate as the communities in which we operate. Therefore, it’s vital that our journeys are defined, first and foremost, by our unique talents and skills.”
Georgette Nicholas
Chief executive officer and managing director Genworth “My career developed from building skills, making the most of opportunities and utilizing the support of sponsors and mentors. We need to understand the challenges women face in developing their careers and work to find flexible ways to address them. We need to create and embrace an environment of diversity and inclusion where differences in thought, experiences and backgrounds are valued and pursued to make better business decisions. We all bring skills, experience and different ways of thinking to our roles. We should explore, understand and appreciate these differences to support women, along with men, to develop their careers to the fullest.”
Jenny Boyd
Multinational client and program management AIG “There’s something to be said for the difference between how men and women are wired – a difference the industry should recognise when creating and sharing opportunities. The industry could play a greater role in providing outlets for women to explore aspirations, thereby establishing the confidence to develop ideas and act on them. For example, women may benefit from a more formalised approach to building professional networks and identifying mentors. Empowering both genders towards the next step in their career would signal an important shift away from the ‘one size fits all’ approach, ensuring career-building opportunities are shared.”
IT’S MALE AT THE TOP Statistics from the Workplace Gender Equality Agency indicate that while women participate in the insurance industry at a greater rate than men nationwide (55% versus 45%), they do so in lower-level positions. Ahranee Vijayaseelan, president of the Association for Women in Insurance NSW, told Insurance Business that the industry has a “demonstrated inequality in gender diversity at the top executive levels … Women only occupy 12% of top management positions within the industry, and only 1% of insurance firms have a female CEO. We as an industry need to be more proactive in maintaining balance between the genders at leadership level.”
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UPFRONT
STATISTICS 100%
INSURERS’ FIRST-QUARTER RESULTS
WHO’S WILLING TO SHARE DATA?
3%
5.5%
Chubb’s increase in P&C underwriting premium for Q1 2019
11%
60%
59%
58%
40%
20%
Pioneers
Pragmatists
Sceptics
Traditionalists
Willing to share data to receive advice that’s more relevant to their personal circumstances
Willing to share data to receive faster, easier services
DO CONSUMERS WANT INTEGRATED PROPOSITIONS? Across all consumer types, around half of those who responded to Accenture’s study were interested in integrated propositions, such as a home security package that includes insurance, remote home monitoring, financing and security tips. However, only 30% of consumers, on average, are prepared to pay extra for the convenience of these bundled services.
WILLING TO PAY FOR THEM
80%
60%
57%
32%
43%
21%
20% Sources: AXA XL, Swiss Re, Chubb, AIG
82%
81%
80%
INTERESTED IN INTEGRATED PROPOSITIONS
AIG’s increase in gross written premium for Q1 2019
87%
0%
Swiss Re’s increase in net premiums earned for Q1 2019
10.9%
95% 87%
The willingness to share data (or not) was one of the most marked points of difference among the four customer types insurers are likely to encounter, according to Accenture’s latest global study of financial services consumers. The study identified four key consumer personalities based on their approach to technology: pioneers (tech-savvy and hungry for innovation), pragmatists (trusting and channel-agnostic), sceptics (tech-wary and dissatisfied) and traditionalists (avoid tech and value the human touch). Of these, the pioneers were by far the most likely to be willing to share data than any other customer type, although sceptics and traditionalists were more enticed to do so if it resulted in lower prices.
AXA XL’s increase in total gross revenues in Q1 2019
95%
0%
7% 20%
40%
60%
80%
Pioneers
100
Pragmatists
0%
Sceptics
20%
40%
60%
80%
100
Traditionalists Source: Accenture Global Financial Services Consumer Study, 2019
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EUROPE
95%
94%
96%
94%
89%
87% 82%
LEADING SOURCES OF CYBER LOSS
95% 86%
84%
82%
According to Beazley Breach Response Services, hacking or malware incidents among the insurer’s clients rose 10% between 2017 and 2018, and the average ransomware demand soared to $116,000.
81% 79%
76%
77%
63%
TOP CAUSES OF LOSS DUE TO CYBER INCIDENTS
59%
50% 54%
47%
50% 45%
40%
30%
20%
20%
9% 10%
Willing to share Willing to share data Willing to share data to receive to receive a priority data to receive personalised offers service such as discounts on nonbased on their fast-tracked insurance-related current location claims settlement products or services
Willing to share Willing to share data to receive data to receive more competitive/ personalised services lower prices or information that helps reduce the risk of injury, loss, etc.
The gender pay gap at Lloyd’s of London dropped considerably between 2017 and 2018, but a gulf remains between the salaries of men and women – due in part to the fact that the majority of the highest-paying jobs at the company are held by men.
Mean gender pay gap, 2018
27.7% Mean gender pay gap, 2017
35%
UPPER QUARTILE
34% 65%
Men
LOWER QUARTILE
5%
Hack or Accidental Insider Social Portable Physical malware disclosure engineering device loss/nonelectronic record Source: 2019 Breach Briefing, Beazley Breach Response Services
BOMBINGS TOP THE LIST OF EVENT THREATS Terrorist threats to sports and entertainment events in 2018 were most likely to take the form of a bombing at an event, according to the Risk Advisory Group and Aon.
TOP TERRORIST THREATS AT SPORTS/ENTERTAINMENT EVENTS
LLOYD’S EMPLOYEES BY PAY QUARTILE
19.9%
6%
0%
Source: Accenture Global Financial Services Consumer Study, 2019
THE GENDER PAY GAP NARROWS AT LLOYD’S
8%
Bombing
2
Unknown
Knife attack
5
Chemical attack
1
3
Shooting
66%
Women Source: Lloyd’s 2018 Gender Pay Gap Report
4
6
Vehicle impact
Source: Aon and The Risk Advisory Group, 2019
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UPFRONT
OPINION
GOT AN OPINION THAT COUNTS? Email ibo@keymedia.com.au
Transparency trumps trespassing In today’s competitive market, true collaboration between sales, underwriting and marketing is critical for survival, writes Arthur B. Seifert HYPER COMPETITION, evolving technology, excess capacity and distribution consolidation are just some of the elements challenging the insurance marketplace. Growing organically and producing an underwriting profit is always demanding – maybe more today than ever before. When I left my comfy salaried insurance carrier position in 1986 and became a broker, my goal was to reach $100,000 in commission income by my third year. I learned my hit ratio, did the math and realised I would have to make 11,250 phone calls a year – and I did. I knew the power of productivity, and I quickly learned the power of productive partners. The fact is that sometimes you nurture a client for months, even years, before they agree to let you in the door – only to be let down by a carrier who doesn’t want to write the business. Why does this happen? Perhaps a sales associate has ignored the carrier’s appetite, or an underwriter has overlooked the actual risk potential, or a marketer hasn’t communicated effectively. Program managers must recognise that there needs to be true understanding and collaboration between sales, underwriting and marketing to grow organically, produce an underwriting profit and develop an ongoing relationship with brokers. This requires breaking down the silos and being comfort-
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able with sharing what was once sacred turf. In today’s market, transparency trumps trespassing. And if it doesn’t, it’s often at the broker’s expense. Marketing builds the relationship that
context and landscape is needed to make the underwriters comfortable. Underwriters need to know what information they want from brokers, and they need to know what that information truly means. Your submissions are in the right hands when the underwriters don’t have to compare apples to oranges. Underwriting expertise in a class of business is an advantage. Underwriters who have reviewed thousands of files in a specific class have greater insight and are positioned to make better underwriting decisions. Marketing has a duty to assist sales and underwriting by conducting research to gain a solid understanding of the challenges associated with the class. What keeps the prospect up at night? What message will attract attention and create an opportunity? This information shouldn’t be carrier-exclusive. Marketing departments ought to serve as a resource for brokers by providing them with the important updates, industry news and marketing collateral they need to stay up-to-date on business operations and bind business.
“When you combine sales, underwriting and marketing efforts, what results is a team that truly brings value to the broker” creates the opportunity for sales to open doors, and sales maintains the constant flow of qualified submissions that underwriting productivity depends upon. But these ties are useless if all parties don’t understand, appreciate and respect the amount of work, time and expense a broker must invest to produce a submission. Submissions are the raw material that drives insurance production: no submission, no business. Sales should be in the field or on the phone to help drive the submissions in the door. To be a truly helpful resource, salespeople have to understand their industry deeply and be able educate brokers on its need-to-know nuances and product advantages. They must tell brokers what information will make their submissions competitive and how much
When you combine sales, underwriting and marketing efforts, what results is a team that truly brings value to the broker and can help them bring additional value to their client. Driving profitable organic growth is always challenging. It requires constant communication and collaboration. The quality and quantity of information increases the probability of better underwriting decisions. Better decisions lead to better results, and better results lead to profitable organic growth. Arthur B. Seifert has 40 years of insurance industry experience, including positions in sales, financial consulting, underwriting and leadership. He currently oversees niche insurance programs as the president of Glatfelter Program Managers.
UPFRONT
OPINION
GOT AN OPINION THAT COUNTS? Email ibo@keymedia.com.au
At Gallagher Bassett we see things from a Different Point of View. To secure and protect our clients’ success, now and in the future, we continue to push the boundaries of traditional claims management. Learn more about the award winning solutions we are designing for our clients at gallagherbassett.com.au/differentpointofview
2018 WINNER Innovation of the Year
its customers and the wider industry, particularly with regards to ease of use, ongoing access, support services and, most notably, the time taken to lodge a claim.� - ANZIIF, 2018 www.insurancebusinessonline.com.au
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UPFRONT
NEWS ANALYSIS
Digital upheaval Taking the first step on an often multi-year path toward digital transformation pays off in the end – but for each insurance company, that journey will look a little different THE NEED to retire legacy systems, combined with the pressure of changing consumer expectations and the rapid pace of technology innovation, is pushing insurers to undertake digital transformation journeys to serve clients better and improve behind-thescenes efficiencies. That journey will look a little different for each company, depending on what pain points they have and what they hope to accomplish at the end of the day. At StarStone Insurance, a global specialty insurer that created an underwriting capability in Australia in 2016, the focus has been on artificial intelligence. “Brokers are entering data in our systems, they’re classifying risks, and we’re relying on their expertise to properly classify a risk,”
For instance, StarStone’s AI capabilities will catch if a broker classified a ‘family’ restaurant as one that doesn’t serve alcohol. However, that same restaurant could serve alcohol on the weekends, which means the risk hasn’t been accurately captured. “Understanding that nuance through AI has been transformative for us. It’s allowed us to cull our book of many risks that we otherwise would have written,” Cadet says, adding that the new capabilities haven’t changed StarStone’s broker-facing interface, which remains as seamless as ever. Another step in StarStone’s transformation has been getting a better understanding of the data the company has in its systems. “Having access to the data has allowed us
“[Artificial intelligence] has allowed us to cull our book of many [inaccurate] risks that we otherwise would have written” Kardiner Cadet, StarStone Insurance explains Kardiner Cadet, senior vice president of StarStone’s e-commerce division. “At times, either because they’re moving very fast or because they don’t have enough knowledge of how to classify a risk, they may misclassify a risk. We’ve implemented artificial intelligence to confirm what they’ve entered in the system.”
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to have insights that we otherwise would have never even thought of,” Cadet says, pointing to a statistic unearthed by data analysis, showing that within three days of when a broker starts binding, a deal often falls off the table, which means the broker can get more out of an account within those first few days.
It’s been three and a half years since StarStone embarked on its digital transformation, and the company has learned a ton during that time. “Initially when we started doing the AI work, we opened the floodgates,” Cadet says. “I wanted to know everything there is about these risks, which is good to know, but does it really matter? All of this extra information was flooding us, and it was preventing us from actually looking at what really matters.” Axis Capital, which serves the Asia-Pacific region from a Singapore office, has gone through its own transformation, which Darryl Catts, Axis’ CIO of insurance IT, presented on in detail at Duck Creek’s Formation ’19 conference earlier this year. The past four years have been full of change for Axis as it upgrades its platforms, looping in various applications and allowing its partners to write more profitable
DIGITAL TRANSFORMATION IN INSURANCE
90%
of insurance executives believe they have a coherent technology plan in place
63%
believe cloud-based technologies designed to improve operational efficiency are having the most impact on insurance companies today
53%
think customer-facing blockchain is the technology that will have the most impact on insurance companies in three years Source: Digital Transformation Is Remaking Insurance, Accenture, January 2019
business while also being more efficient. “One of the major things we’ve seen with our underwriting is that we’re able to shift work from underwriters in the system, who
with the brokers directly, write more business and do the things they really need to do to expand their book even more profitably.” When undertaking such a big transforma-
“One of the major things we’ve seen ... is that we’re able to shift work from underwriters ... to our operations group” Tim Bibler, Axis Capital are keying in things and generating policy documents, to our operations group,” says Tim Bibler, VP and North American IT business lead at Axis Capital. “We have the operations folks now doing those tasks that they were doing in the legacy applications, which is freeing up the underwriters to go out and deal
tion program that necessitates multiple work streams, Bibler admits that challenges are inevitable. “We knew we were going to have, being in the specialty business, pretty complex custom specialty products,” he says. However, Axis was able to build out its technical and marketable
products “and then take things like coverage for cyber and very quickly apply it to other marketable products”. Before starting a digital transformation journey, it’s crucial that all team members are on board, from the top of the organisation all the way down. “When you have these great ideas, you assume that people will immediately buy into this fantastic idea, but quite often, they don’t understand what you’re doing and they may not even trust that it’s coming from a good place because there have been so many people who’ve implemented technology with the approach that they’re going to cut out humans,” Cadet says, adding that it’s important for executives to communicate to their teams that there’s nothing to fear. “We just want them to make decisions faster with better data and more consistent data.”
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UPFRONT
INTELLIGENCE CORPORATE ACQUIRER
TARGET
PRODUCTS COMMENTS
360 Underwriting
Insure That
Insure That founder Peter Hayward will stay on in an advisory capacity
Gallagher
Protectors Group, Donnellys Insurance and JLT’s global aerospace operations
In addition to purchasing three brokerages (two in NSW and one in Adelaide), Gallagher has acquired JLT’s 250-member global aerospace team
Liberty Mutual
AmTrust Safety
The move will enhance Liberty’s US offering
Lombard Australia
Assetinsure
Lombard acquired the business from failed New Zealand insurer CBL Corporation
Nib
QBE Travel
The health insurer immediately rebranded the business as Nib Travel
Zurich
OnePath Life
The $2.85bn sale was finalised in June
LMI to offer post-loss counselling to policyholders
LMI Group director Steve Manning has confirmed the company’s plans to launch LMI Psychology, employing a qualified psychologist in-house on a full-time basis to assist clients with the trauma that comes with a major loss. “Anyone who has ever dealt with claims would have seen firsthand the emotional toll it has on the policyholder,” Manning said. “Even when a claim goes extremely smoothly, you must remember this person has just lost everything. They … often are in a bad place and need someone to talk to.”
360 Underwriting expands rural capabilities
Relative market newcomer 360 Underwriting has expanded its reach once again, this time entering the rural and agricultural space via the acquisition of farm and regional underwriting agency Insure That. In addition, 360 has partnered with three agriculture experts – Matt Devine, Anthony Murphy and Julie Bird – to create an alternative solution for brokers with farm and regional client needs. After assembling this expertise, 360 plans to spin off the new business under the name 360 Farm and Regional. “The Insure That acquisition provides us with an entry into the farm insurance market and a wonderful foundation to focus our efforts to deliver our broker partners with a range of solutions for their farming clients,” said 360 director and co-founder Denis Morrissey. “We now have a suite of farm products; the Insure That team, which operates in all states; and a technology platform that will allow us to establish a significant presence in the market.”
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Hiscox introduces cyber exposure calculator
Specialist global insurer Hiscox has launched a cyber exposure calculator, designed to help businesses estimate the potential financial impact of a cyber attack. The free tool also provides insights into the types of cyber attacks businesses commonly face and gives owners estimates specific to their industry and revenue. “With hacker techniques increasing in sophistication and attacks becoming more targeted in their nature, it’s important that businesses fully understand the risks they face,” said Hiscox cyber CEO Gareth Wharton.
PEOPLE Insurtech startup covers kangaroo collisions Huddle, the insurance startup that secured $19m in funding late last year, has introduced a niche new cover that addresses a uniquely Australian issue. The insurtech’s Kanga Cover product provides full coverage in the event of an animal collision, allowing policyholders to claim one collision per year without having to pay excess. The policy was launched following Huddle’s Roo Report, which revealed that more than 7,000 insurance claims related to kangaroo collisions are made every year, costing drivers more than $6m in excess each year.
Trident launches new general liability offering
Underwriting agency Trident Insurance has launched a new general liability offering, fully backed by Lloyd’s security. The new product provides protection for a number of businesses, including property owners, manufacturing, cleaning contractors, retail, wholesale, accommodation, not-for-profit, cafés and restaurants, trades, vacant land, painters and decorators, engineering, dry cleaners, and offices. “Due to the changing market, we see this as a great time to launch the new offering,” said Trident MD Rock Wolozny.
Tesla unveils long-awaited insurance partnership
Automaker Tesla has announced that it will launch an in-house insurance program in collaboration with US-based Markel subsidiary State National Insurance Company. State National will serve as a fronting company for the insurance program, while a third party will reinsure most of the risk. The insurance program’s premiums will be determined based on driver data. According to Markel co-CEO Richard Whitt, State National is supporting “innovative solutions” that Tesla has established with risk-taking partners.
NAME
LEAVING
JOINING
NEW POSITION
Andrew Curl
AEI Insurance
Lockton Australia
National manager of corporate
Richard Hankin
eBay
Cover Genius
Head of retail
Stephen Kerridge
JLT
Lockton Australia
National manager of resources
Annette Lees
N/A
CHU
National liability claims manager
Antony Meakin
Aon
Lockton Australia
National manager of corporate
Jodie Piddington
Allianz
360 Underwriting
National underwriting development manager
Justin Turner
Neopost Shipping
Cover Genius
Head of strategic partnerships for logistics
Simon Wilson
Allianz
Gallagher Bassett
GM of consulting services
New hire strengthens 360’s cyber offering
360 Underwriting has added Jodie Piddington to its team as a national underwriting development manager. In her new role, Sydney-based Piddington will leverage her experience and broker relationships to increase 360’s footprint in the cyber market. She joins the underwriting agency from Allianz, where she was most recently a senior property underwriter in the tailored solutions business unit. “We are thrilled to have Jodie join the growing 360 team as we look to capitalise on a number of emerging opportunities and partnerships in the cyber space,” said 360 director Denis Morrissey.
CHU claims veteran takes on senior role
After 16 years at strata insurance specialist CHU, Annette Lees has stepped into the senior role of national liability claims manager, responsible for ensuring CHU’s delivery of a ‘concierge’ claims service on every liability claim. Lees brings nearly three decades of insurance experience to her new role, having worked at a number of insurance companies prior to joining CHU, including Commercial Union, FAI and GIO. She moved to CHU in 2003 as national liability claims consultant and was later promoted to national senior liability claims consultant.
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UPFRONT
INSURER UPDATE NEWS BRIEFS QBE joins initiative to support financial resilience
Australia’s largest global insurer has joined the Financial Inclusion Action Plan program, a partnership between Good Shepherd Microfinance, the Australian government, EY and the Centre for Social Impact that aims to promote greater financial inclusion. “We recognise that there are millions of Australians who are living in, or on the edge of, financial vulnerability or poverty,” said QBE Australia Pacific CEO Vivek Bhatia. “We believe it is incumbent on us and other financial services providers to help improve access to services and help build financial resilience.”
Major insurers among Australia’s most inclusive companies
Suncorp, IAG and QBE have been recognised as some of the most LGBTI-inclusive organisations in Australia by the Australian Workplace Equality Index. At the organisation’s 2019 Australian LGBTI Inclusion Awards, QBE was awarded gold employer status, while Suncorp received silver and IAG bronze. Suncorp brand AAMI also picked up the award for Best External Media Campaign, thanks to its “Road to Broken Hill” TV advertisement, which features drag queens.
ASIC orders insurers to repay another $14.7m for add-ons
More refunds are on the horizon for consumers after ASIC confirmed several insurers will pay a further $14.7m to rectify poor-value add-on insurance. Aioi Nissay Dowa, which operates under the Toyota brand, will refund $7.2m, Eric Insurance will refund $3.37m, Sovereign will refund $1.37m, Virginia
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Surety will refund $1.7m, and LFI – the insurer for Liberty Finance – will refund $951,700. Meanwhile, underwriting agency NM Insurance and three insurers – Hollard, Suncorp brand AAI and AIG – will collectively refund $143,700 to customers. The additional payments bring the total value of remediation to more than $130m.
AIG unifies reinsurance operations under AIG Re brand
International insurance giant AIG has consolidated its reinsurance operations into a single entity, dubbed AIG Re. The new unit brings Validus Re, AlphaCat and Talbot Treaty into one global business under CEO Christopher Schaper. Formerly the head of Victor Insurance Holdings, Bermuda-based Schaper stepped into his new role on 1 July. As CEO of AIG Re, he will be responsible for overseeing the implementation of AIG’s assumed reinsurance strategy on a global basis.
Travel insurers forced to change tack on mental illness
Three insurers that were found to have discriminatory policies in place around mental illness have all agreed to change their policies following an investigation. The Victorian Equal Opportunity and Human Rights Commission found “widespread and far-reaching” examples of travel insurers refusing to cover mental illness. The commission found that Allianz, Suncorp and World Nomads (now Nib Travel) collectively sold 365,000 policies containing mental health exclusions and denied hundreds of people’s claims on the basis on mental illness between July 2017 and April 2018. All three insurers agreed to scrap blanket exclusions following the investigation.
Zurich sued over mass shooting A hotel chain is seeking to hold the insurer liable for defence costs stemming from the 2017 Las Vegas shooting Major hotel chain MGM Resorts is taking legal action against insurance giant Zurich, claiming the company has breached its contract by failing to pay promised legal costs associated with the Las Vegas mass shooting in October 2017. MGM owns the Mandalay Bay hotel, where shooter Stephen Paddock positioned himself in a window and opened fire on attendees of a country music festival. The incident left 58 people dead and more than 800 injured – and according to MGM, more than 4,000 people are now seeking damages from the hotel in relation to the event. While MGM has disputed any liability arising out of the event, it has been in mediation with plaintiffs, hoping to avoid years of litigation in civil lawsuits alleging that the hotel’s negligence led to the deadliest mass shooting in modern US history. Company spokesman Brian Ahern said the lawsuit “does not relate to coverage for a potential settlement and is limited to Zurich’s obligation to pay defence costs”, which will likely reach many millions of dollars. Zurich had sold MGM a primary commercial general liability insurance policy with a $1m limit for each occurrence between July 1, 2017 and July 1, 2018. According to MGM, the insurance company promised to defend the hotel chain from claims and lawsuits alleging bodily injury or property damage.
MGM claims it is obligated to pay up to $500,000 for the defence of shootingrelated claims but that Zurich is responsible for the rest, up to the point its limit of liability is exhausted by paying settlements or judgments. “The Zurich policy is designed and intended … to provide broad coverage for the most serious claims that MGM could face,”
“MGM has to show … where Zurich has knowingly violated the terms of the insurance agreement” the company said in the lawsuit. “Zurich has not fulfilled all of its obligations … [and] has failed to pay for all reasonable defence costs.” Brent Allen, president of Allen Financial Insurance Group, told a local Las Vegas news outlet that the outcome of the case would depend on how the judge interprets the insurance policy, noting that “MGM has to show, because it’s in a contract, where Zurich has knowingly violated the terms of the insurance agreement”. Allen added that it could be difficult for the hotel company to gain sympathy from a judge when it has both the money and the resources in place to recover from the loss, saying that it’s difficult for a policyholder “that big to cry foul”.
Q&A
Kirsty Owens State manager, SA National portfolio manager, SVU BERKLEY INSURANCE AUSTRALIA
How clients can differentiate D&O risk How can an insured differentiate their D&O risk profile?
Years in the industry 15 Fast fact Prior to joining Berkley, Owens held senior roles at QBE and Axis Capital
One of Bill Berkley’s favourite quotes comes from Mark Twain: “Always do right. This will gratify some people and astonish the rest.” For me, what we can take pride in as an insurance provider is getting to understand the businesses that we underwrite so that we can provide them the best possible protection within the scope of our capabilities. The ideal insured, therefore, is one who is an open book about their business and is happy to give and receive information so that we can mutually obtain the best solution. It is difficult to properly underwrite and give adequate cover to a client who is only doing their best to paint a rosy picture to get the cheapest premium or a client who is disengaged from their insurance program, where they only provide minimal information in order to get terms.
As an insurer, how important is early engagement for you? In this hardening market, early engagement is vital to obtaining the best outcome for insureds. The reality is we have been in a protracted soft market cycle, and most parties have come to expect rollover or even a reduction in pricing whilst obtaining more and more coverage inclusions. Unfortunately, we now find ourselves in a place where the market has turned, so the once simple account is now more time-consuming and complex for brokers and underwriters alike. Quote turnaround time has always been something Berkley Insurance Australia has prided itself on; however, as the market changes, more and more risks are being remarketed, so this inevitably will slow down the quotation process.
How is Berkley responding to the volatile market conditions at present? Berkley Insurance Australia has been extremely consistent with our pricing and coverage over the last 10 years. We are fortunate that our focus on risk selection and adequate pricing means we do not have to face the challenge of making radical corrections to our book. Over that same period, we have been constantly reviewing our performance in various industry sectors and making small adjustments where necessary so that we can maintain the stability of our portfolio. We truly believe that brokers and insureds value and appreciate premium stability and strong two-way communication, as well as open and honest dialogue, and this will continue to be a point of focus for us moving forward.
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UPFRONT
UNDERWRITING AGENCIES UPDATE
ProRisk responds to cyber attack A swift response helped the underwriting agency mitigate damage from a recent phishing attack
instructions to bind cover would be honoured, and urgent certificates of currency would be provided. The firm also set up alternate email addresses to keep brokers connected. “We identified the breach very early on, and that meant we made a very difficult decision to shut down our system, but the critical thing is that no personal identifiable information was breached,” Nye says. “Confidential correspondence, emails, information – that’s all been secured, and we don’t have reason to put
“The critical thing is that no personal identifiable information was breached”
Underwriting agency ProRisk could have been crippled by a cyber attack in June, had it not spent the past year pouring resources into prevention, detection and response. “We had invested quite significantly over the previous 12 months in training and education for staff, in increased anti-virus software, in a specialist consultant’s advice, and in ensuring that we had a fit-for-purpose disaster response plan and adequate backups,” says executive director Hamish Nye. “Were it not for all of that, the impact on the busi-
NEWS BRIEFS
ness would have been devastating, but because of that defence planning and infrastructure, we’re in a position to continue to trade and to get the business back on track.” The phishing attack hit all subsidiaries of Insurance House in early June – including its brokerage, AR network and life business – but ProRisk was the worst affected, with critical functions taken offline for a number of days following a forced network lockdown. During the outage, ProRisk assured brokers that all renewing policies would be held on cover,
CHU launches strata leadership course
Strata specialist CHU has designed a professional development program for experienced brokers in the space. Dubbed Empower, the program features short seminars designed to boost business management and leadership capabilities and regulatory knowledge. The seminars will be run by CHU leaders, including CEO Bobby Lehane, who said Empower presents “a unique and intimate opportunity to network and connect with leaders within CHU and ... from other like businesses within the strata industry”.
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in a breach notification in regard to that. The most important thing for us is our insureds and our brokers and making sure that they know that there was no privacy breach.” While the attack was obviously a huge inconvenience for the agency, Nye says it also served as a potent reminder that cybersecurity and incident response plans have never been more important. “As a cyber and data risks underwriter myself, I have, for years, reminded brokers that it’s not about whether their clients will be impacted, it’s probably a matter of when,” Nye says. “Malware has become extraordinarily accessible for those who wish to propagate it – and the ability to disseminate it is very high, so there’s a need for all businesses to be vigilant to these threats.”
Verdit reached in DUAL Australia’s $17.4m fraud case
Former DUAL Australia employee Josie Gonzalez and her husband, Alvaro, were convicted in early July of conning the underwriting agency out of $17.4m. According to prosecutors, the duo submitted more than 400 fraudulent invoices for legal services to be paid to Jaag Lawyers, a company they had set up themselves. Filed over a period of two years, between 2011 and 2013, the fraudulent invoices first raised suspicions when Gonzalez went on maternity leave in May 2013.
Q&A
Rochelle Cain
Changing priorities in professional indemnity
Underwriter SURA PROFESSIONAL RISKS
Years in the industry 5 Fast fact Prior to becoming an underwriter, Cain worked as a recruiter for firms in the insurance industry
How do you expect the professional indemnity market to evolve over the next year or two? We anticipate the professional indemnity market will continue to harden during the next 12 to 24 months. This is primarily due to a number of Lloyd’s insurers withdrawing from the PI sector or reducing their capacity as a result of the Decile 10 review by Lloyd’s into the worst-performing 10% of syndicates. As a remedial action, several Lloyd’s syndicates pulled back on line size, or worse, withdrew from the market entirely. As the market contracts, insurers still providing PI have increased rates and tightened their cover. This trend will undoubtedly continue in the next 12 to 24 months, and some sectors will feel this hardening more than others, particularly in construction. Many assume the Grenfell Tower disaster was the catalyst for PI changes, but the market had already started to turn prior to June 2017. The cladding exposure was simply the final straw for insurers writing that class. Insureds in construction-sector disciplines will find it particularly difficult to find cover in the medium term. This will have a flow-on effect for Lloyd’s capacity for professional services occupations such as accountants and financial planners.
What are your main challenges when underwriting professional risks? There are always plenty of challenges. Dealing with customer defections as a result of changes to cover and
Emergence Insurance eyes global growth
Cyber specialist Emergence Insurance has enjoyed significant success since it was founded in 2014, and founder and MD Troy Filipcevic told Insurance Business that international expansion is in the underwriting agency’s crosshairs. “In five years, we will definitely be international – where and in what countries is still to be seen, but we’ll definitely have an international footprint,” he said. “We’ll be focused around cyber insurance and technology solutions, but the way we will diversify will be through our footprint.”
Tokio Marine acquires AHI from IAG
higher premiums is probably the toughest challenge for any professional indemnity insurer.
How is SURA responding to the challenging market conditions? Acquiring a new customer is always more difficult than retaining an existing one, so in tougher trading conditions, we increase our commitment to communicate proactively with brokers about the market changes and the effect on their policies. The ultimate aim for us is to help the broker help their client. Ensuring they are armed with useful information and can manage expectations effectively is a key priority for us.
How can brokers work with underwriters to secure better outcomes for their clients? Brokers who actively educate themselves and have an acute understanding of risks are always the easiest to work with. Ultimately, we want to get the correct type of cover bound with the least amount of back and forth possible. To meet that objective, underwriters need as much information as possible to efficiently evaluate the risk and provide terms to a broker. Information such as CVs, descriptions of the insured’s work and details of miscellaneous risks are particularly important in professional indemnity. However, we often receive submissions that lack even basic information, which immediately increases the time both parties have to commit to the binding process.
In a bid to expand its regional operations, Tokio Marine Management Australasia has acquired specialist underwriting agency AHI, which had been owned by IAG since 2010. According to Tokio Marine, the move will align with its strategy to grow selected specialty lines of business in the Oceania region. Meanwhile, AHI CEO Danny Byrnes said the underwriting agency is looking forward to the renewed focus that will come from Tokio Marine’s growth strategy and experience in managing niche agencies.
Underwriting agency sector continues to soar
The underwriting agency/ MGA market continues to grow and remains a key business model for the P&C industry, according to a new study by investment management firm Conning. “The MGA market has nearly doubled since 2012, when Conning began tracking this sector,” said Conning VP Jerry Theodorou. “The MGA market continued to expand in 2018 and early 2019, driven by numerous factors, including MGA startups, insurers’ quest for blocks of business, and investment from private equity and MGA incubator firms.”
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PEOPLE
THE BIG INTERVIEW
A CHAMPION OF INNOVATION Rita Yates, Insurtech Australia’s newly appointed CEO, talks to Nicola Middlemiss about bridging the gap between fledgling startups and corporate incumbents
IN MAY, fintech aficionado Rita Yates was named the new CEO for Insurtech Australia, taking over the reins from co-founder and former head Simon O’Dell. The appointment was hardly a surprise – Yates has long been a key player in the space, helping to establish Insurtech Australia and sitting on its advisory board since the outset. “Rita is a champion for innovation in the insurance industry,” O’Dell said at the time of her appointment. “She is the perfect person to lead Insurtech Australia into 2020 and beyond.” However, leading the organisation in the current environment poses a unique challenge: insurtech is still in its infancy, but the space is evolving rapidly, which means Insurtech Australia must adapt quickly in order to meet the changing needs of its members, as well as the wider insurance ecosystem. Yates is well accustomed to a rapid pace of change. While working as the insurtech lead for Stone & Chalk, Asia-Pacific’s largest fintech innovation hub, she spent years fostering opportunities between startups and corporate Australia. “Bridging that gap between corporate
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and startup Australia is certainly one of my passions and has been for some time now,” she says. During her time in the sector, Yates has observed a huge amount of change in the Australian market, including an exponential increase in insurtech numbers. “When we first started to think about
Change of heart Despite the rapid growth, Yates says genuine disruptors in Australia have been few and far between – EY and Insurtech Australia’s report found that just 10% of the country’s insurtechs are disrupting the status quo. Importantly, it seems this message is finally sinking in with incumbents – and Yates says this has led to
“In addition to the change we’ve seen in terms of growth, we’ve also seen change from the incumbents in that they’re much more open to working with, partnering with and investing in insurtech startups” forming Insurtech Australia, you could probably count on one hand the number of startups in Australia that classified themselves as insurtechs,” Yates says. “Now, if you look at the number of insurtechs that were registered in the last report we put together with EY, we had 48 members of our ecosystem – that’s a massive increase and an enormous change over just a couple of years.”
the second major change currently impacting the sector. “In addition to the change we’ve seen in terms of growth, we’ve also seen change from the incumbents in that they’re much more open to working with, partnering with and investing in insurtech startups,” she says. “Now, they can really see the value in exploring those opportunities, whereas a couple of years
PROFILE Name: Rita Yates Title: CEO Company: Insurtech Australia Based in: Sydney Years in the industry: 16 Industry involvement: Yates is a member of the CEBIT 2019 startup advisory committee
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PEOPLE
THE BIG INTERVIEW
ago, there was more of an impression that insurtechs were disruptors and were there to take business from the incumbents.” However, while incumbents might be more welcoming of insurtechs than ever before, Yates says barriers remain that impede collaboration between the two. “One of the issues that comes up time and time again is that startups and corporates operate at different speed differentials,” she says. “Startups work in a very lean way – they’re agile, they test and learn, and they do things quickly – but that tends to be very different to the way much larger organisations operate.”
wonderful mutual success, and I think the creation of our Insurtech Australia ecosystem can help that process along.”
INSURTECH AUSTRALIA’S KEY PRIORITIES
Looking forward
Over the next 12 months, Yates says Insurtech Australia will be concentrating its attention on three key areas:
While the environment has changed significantly, Yates says Insurtech Australia’s goal remains the same as it did when the company first launched. “From day one, our overall mission was to create a world-leading insurtech ecosystem, and that will continue to be our mission well into the future,” she says. However, Yates does have a few personal
“From a personal perspective, I’d like to see more female founders – we have some great ones already, but I’d love to see more women starting insurtechs” In contrast, she says, the sheer size and scale of many insurance companies, as well as the bureaucratic restrictions they’re under, make them unable to move as quickly as a startup. “Large organisations like insurance companies tend to have processes that are much slower and have governance around them, which is actually very difficult to change because of the size of the organisation, so that will remain an issue.” While that problem isn’t going anywhere, Yates believes some compromise can go a long way. “There certainly are ways to attack in terms of the incumbents putting structures in place that can speed up their internal processes when working with startups and, on the flip side, startups recognising that there is going to be a speed differential when working with incumbents,” she says. “The hope is that they will meet somewhere in the middle for some
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ambitions for the ongoing evolution of the insurtech sector. “From a personal perspective, I’d like to see more female founders – we have some great ones already, but I’d love to see more women starting insurtechs and working in the space generally,” she says. “I’m certainly interested in providing my support to up-and-coming potential female founders, and I think the more we grow our female role models in this space, the more effective that will be.” In addition to greater female representation, Yates says she’s also eager to see growth across the entire sector. “I’m keen to see the number of insurtech companies grow over the next 12 to 24 months, and fostering that growth is a key priority for Insurtech Australia, because it will inevitably strengthen the wider insurance ecosystem and lead to improved outcomes across the board.”
CONNECTIONS “We’re focused on building the local connectiveness of our ecosystem, as well as global pathways for insurtechs looking to expand their reach.”
PARTNERSHIPS “Supporting more commercial partnerships between insurtechs and incumbents has always been a passion of mine and will remain a priority.”
INVESTMENT “We want to increase the amount of investment going into our seed-stage insurtechs because that tends to be where there’s a lack of funding, and it’s a crucial stage.”
SPECIAL REPORT
ELITE WOMEN IN INSURANCE
ELITE WOMEN IN INSURANCE Insurance Business spotlights 25 women who are leading the charge for greater gender diversity at all levels of the insurance industry WHILE THE insurance industry still suffers from some gender imbalance, it’s fair to say it has made significant strides in supporting and elevating women within its ranks. Diversity Australia recognises the finance, banking and insurance services sector as a leader when it comes to implementing diversity policies, and seven insurance providers made it onto the Workplace Gender Equality Agency’s most recent Employer of Choice list. With an ever-increasing number of diversity and inclusion initiatives being rolled out across the industry, it’s no surprise
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that more women are finding insurance to be a supportive environment in which to pursue a rewarding and challenging career. While programs and policies are a critical part of creating a fair and inclusive industry, accomplished female role models are also an invaluable asset to younger women entering insurance – and that’s where IB’s Elite Women in Insurance list comes in. The 25 women featured on the following pages are just a selection of those who have applied their skills to insurance and are now determining its strategic direction, pushing the industry forward and inspiring those who choose to follow suit.
ELITE WOMEN IN INSURANCE INDEX
CECILIA HIDALGO Claims operations manager
NAME
COMPANY
PAGE
Hillary Bates
Zurich
31
Kelly Butler
Marsh
29
Lisa Carter
Clear Insurance
26
Demetra Day
Chubb
28
Simone Dossetor
Munich Re Australia
30
Linda Ellis
Steadfast
24
Bonni Gordon
Global Risks
27
Janelle Greene
NTI
28
Sarah Harland
Suncorp
24
Cecelia Hidalgo
Chubb
23
Monica Holland
Berkshire Hathaway Specialty Insurance
26
Samantha Hollman
Steadfast
26
Kay Jackson
Simplex
26
Sarah Lyons
Gallagher
23
Kristy Martin
Insurance Advisernet Merimbula
31
Lorna Molam
Marsh
24
Maria Parry
Austcover
28
Renee Roberts
QBE
25
Melanie Slack
Swiss Re Corporate Solutions
24
Lyle Steffensen
Marsh
23
Katie Stephenson
Marsh
31
Racheal Tumelty
Gallagher
28
Cecelia Warren
IAG
30
Prue Willsford
ANZIIF
30
Rita Yates
Insurtech Australia
30
Chubb
Responsible for driving the major support pillars for Chubb’s Australian and New Zealand claims team – including admin, recoveries, TPA management, reporting, integration, projects and continuous improvement – Cecilia Hidalgo oversees one of the insurer’s most critical functions. Under her guidance, Chubb’s claims team has earned a stellar reputation in the market. Brokers voted the insurer the best in the Australian market for turnaround time of claims in the most recent Insurance Business Brokers on Insurers survey. With a strong background in claims, projects, continuous process improvement/ optimisation, systems, data analytics and management, Hidalgo recently spoke at the inaugural Claims Tech Summit Australia, where she presented a session on award-winning strategies to drive innovation and create superb customer experiences in claims.
LYLE STEFFENSEN National leader of care solutions Marsh
With the Royal Commission into Aged Care Quality and Safety currently ongoing, Lyle Steffensen finds herself as a national leader in a space that is facing a period of significant scrutiny. Stepping into a newly created role at Marsh last August, Steffensen was charged with strengthening the insurer’s aged care capabilities and has hit the ground running, leading informative sessions on the dignity of risk to better equip the entire industry. “It has been a surprising and happy discovery that my 23-year career in insurance has proved to be so dynamic, fun and interesting, with far fewer roadblocks for me as a non-white migrant woman than my original career path as a chartered accountant,” she says. “The demand, and support, for women to take up senior roles in the insurance industry has actually increased, with a strong focus on equality by the boards and C suites of many companies in the industry.”
SARAH LYONS CEO, Australia Gallagher
Bringing more than three decades of insurance industry experience to the table, Sarah Lyons has guided the strategic direction of Gallagher’s Australian operations since she was appointed to the top job in July 2017. Supported by a team of more than 1,000 employees, Lyons has been integral to positioning Gallagher as a challenger brand in the domestic market and has set the broking giant on course to achieve scale, growth, enhanced capability and regional presence. “After more than 20 years in the insurance industry, I’m often asked why I made this choice,” Lyons says. “Simple: it’s a fast-paced, constantly changing environment where smart people and great ideas come together. I love the fact that you can take something that people perceive as being grey and boring and turn their thinking on its head.”
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SPECIAL REPORT
ELITE WOMEN IN INSURANCE MELANIE SLACK CEO, Australia and New Zealand Swiss Re Corporate Solutions
Heading up the Australian and New Zealand operations of Swiss Re Corporate Solutions, Melanie Slack is one of the few women steering the international strategy of a major insurer. Having lived and worked on several continents – including North America, Europe and Asia – Slack is one of the most experienced insurance professionals operating in the Australian market and brings a truly global understanding to the table. “The insurance industry has provided me with opportunities to travel and engage with many great people, while developing leadership and strategic capabilities in addition to sales and underwriting skills,” she says. “Over the years, I have had few role models in senior management who were women, so I am passionate about being a role model of feminine leadership to today’s young talent, both male and female.”
LORNA MOLAM
SARAH HARLAND
Head of commercial, consumer and affinity
CIO Suncorp
Marsh
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LINDA ELLIS Group company secretary and corporate counsel Steadfast
Appointed to her current role in early 2017, Lorna Molam spearheads Marsh’s commercial and consumer business unit, which encompasses the firm’s national AR network and its Affinity brand, as well as its private client services, sport, retail life and telco businesses. Molam’s role also includes leading Marsh Advantage Insurance – a dedicated insurance brokerage for the Australian SME segment – and serving as a director on the company’s Australian executive committee. “I feel extremely proud to be a woman in a senior executive position in what has
As Suncorp’s chief information officer, Sarah Harland led a major transformation in technology to move the firm from a product-focused position to one in which the customer is at the centre of the business. “I am proud to be leading Suncorp’s digital transformation, which is fundamental to making things simpler and easier for our customers,” she says. A global leader in financial services, Harland is also a vocal advocate for supporting women and girls in technology. As a member of Chief Executive Women, she works to build the leadership, confidence and communication skills of women in
traditionally always been viewed as a man’s world,” Molam says. “The landscape of the insurance industry is changing, albeit slowly. My advice to women considering a career in the insurance industry is to back yourself. If you have the skills to do the job, speak up, be confident and thrive.”
STEM sector. “There is great opportunity in the insurance industry across a diverse range of areas, and I am particularly passionate about exposing young women to the possibilities that a STEM education can open up,” she says.
substantial contribution to the economy.” Ellis is also involved in supporting and elevating women, sitting on the boards of Abbotsleigh School for Girls, Mosman Church of England Preparatory School and the not-for-profit Heads Over Heels, which supports female entrepreneurs.
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An industry force to be reckoned with, Linda Ellis plays a pivotal role in guiding the strategic direction of Australia’s largest general insurer broker network. Involved in board and stakeholder liaison, corporate governance, legal counsel, strategic planning, major projects, and risk management, Ellis is a director of a number of Steadfast businesses. “I love working in insurance because every day we are helping people live their lives and run their businesses,” she says. “Our economy would grind to a halt without insurance, and it’s good to be part of something worthwhile which makes a
RENEE ROBERTS COO QBE
As the COO of Australia’s largest global insurer, Renee Roberts has more than 27 years of experience under her belt and holds one of the most prestigious positions in the industry. Since taking on the role last June, Roberts has been charged with leading QBE’s Australian and New Zealand operations through a period of significant transformation, while also overseeing data and analytics and information technology. “When I joined QBE in 2018, I was fortunate to become a part of an organisation that places enormous value on female leadership, diversity, inclusion and equal opportunity for all,” she says. “Since that time, I’ve had the opportunity to lead our operations functions through a period of significant transformation – an incredible opportunity for any insurance leader and an extremely rewarding experience.”
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SPECIAL REPORT
ELITE WOMEN IN INSURANCE
KAY JACKSON Director Simplex Insurance Solutions
Geelong-based Kay Jackson got her start in insurance back in 1986, when she worked in the mailroom of FAI Insurance. Fast-forward 30-plus years, and she’s now at the helm of her own multi-award-winning brokerage, Simplex Insurance Solutions. “In the insurance industry, a woman can be anything she wants to be – you just need to have dedication, passion and drive,” Jackson says. Her own dedication and drive have led Jackson to pick up a number of prestigious industry accolades, including repeat appearances on the Insurance Business Elite Brokers list. “I find that people like myself that fall into insurance and stay in the industry are generally very kind and want to be part of an industry that helps people when they need it most,” she says. “It’s a career where you make such a difference in people’s lives when they need it the most – that’s what I love most about the insurance industry.”
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SAMANTHA HOLLMAN
MONICA HOLLAND
COO
Underwriting manager
Steadfast
Berkshire Hathaway Specialty Insurance
Steadfast veteran Samantha Hollman has been with the broker network for nearly 20 years, spending the last three as chief operating officer. Working closely with CEO Robert
With more than 25 years of experience across multiple facets of the insurance industry, including broking, claims, underwriting, sales, distribution and business development, Monica Holland
Kelly and the rest of the Steadfast board, Hollman plays a key role in determining strategic direction and ensuring the effective execution across the entire company, both locally and internationally. Hollman is also a board director on the unisonSteadfast Supervisory Board, a global insurance broking network headquartered in Germany. “I am proud to have been the second employee in the company 19 years ago, backing myself to embark on any role or opportunity presented and contributing to the growth and success of today’s ASX 200-listed company, with revenue of $583m, 350 employees and expanded operations internationally,” Hollman says.
has developed a broad skill set and a deep understanding of the entire sector. In May, she joined Berkshire Hathaway Speciality Insurance as an underwriting manager and the head of the firm’s new Adelaide office, charged with managing and growing BHSI’s casualty portfolio and coordinating opportunities for brokers in South Australia and the Northern Territory. “Whilst insurance has historically been dominated by male senior leaders, all insurance companies and brokers are now striving for diverse, inclusive and genderbalanced workplaces,” Holland says, “so it is an opportune time for women to join, return to or progress their career in insurance.”
LISA CARTER Director Clear Insurance
Since establishing Clear Insurance nine years ago, while six months pregnant with her second child, Brisbane-based Lisa Carter has continued to push for professional excellence. As a result, she has picked up a string of industry awards in recent years. She was named Adviser of the Year by Insurance Advisernet in 2015, earned a spot on Brisbane Business News’ 40 under 40 list in 2016 and claimed the prize for Authorised Representative of the Year at the 2019 Insurance Business Australia Awards. A passionate advocate for women in insurance, Carter also sits on the Empowering Women board and channels significant resources into attracting more women to the industry, as well as elevating those already in it. “I am heartened to see the rise in young ladies joining the insurance industry ranks and aspiring to leadership positions,” she says. “There are many different roles within the insurance industry, and flexible work environments are allowing women, in particular mothers, to work in an exciting and rewarding industry.”
BONNI GORDON Principal Global Risks
Since entering the insurance industry in 2006, Bonni Gordon has sought constant improvement in order to stay at the top of her game – but one thing has always remained the same. “I believe it’s important to always stick to one’s principles and provide products which one believes are right for the client,” she says. “One is reminded of the following quote: ‘The bitterness of poor quality remains long after the sweetness of low price is forgotten.’” It’s an ethos that has clearly served Gordon well. She’s been featured several times on Insurance Business’ Elite Brokers List and was crowned Broker of the Year – Independent (1-19 Staff) at the 2019 Insurance Business Australia Awards. Gordon’s boutique brokerage, Global Risks, has also enjoyed significant success. Operating under the motto “strong relationships, superior solutions”, the firm excels in advising medium to large organisations, as well as high-net-worth individuals and families.
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SPECIAL REPORT
ELITE WOMEN IN INSURANCE DEMETRA DAY
JANELLE GREENE
Head of major accounts
NTI
Chubb
When Demetra Day was named the inaugural head of Chubb’s newly created major accounts division in October last year, she took charge of one the insurer’s most important lines of business. In the midst of expansion following the ACE merger, the company created the new division to ensure that large multinational businesses continued to receive the same level of service they had come to expect. Day is now responsible for managing major accounts underwriting teams, global client executives, claims client relationship managers and risk engineers. With 30 years of experience in analysing organisational risks, Day has unsurprisingly risen to the challenge of leading the Australian and New Zealand business unit. “With Demetra’s depth of experience and understanding of the risk management landscape our clients operate in, she is well placed to lead the charge for this important client segment,” CEO Jarrod Hill said upon her appointment.
GM of operations and strategic delivery
Charged with managing the execution of NTI’s strategic projects, Janelle Greene sits in a senior leadership position within one of Australia’s most well-known specialist insurers. Greene made the jump to insurance in 2009, and she credits the move for giving her a far more rewarding career than her previous path in banking. “In my time in insurance, I’ve found that no matter what your skill set is, you can find a place to thrive,” she says. “If you love numbers, economic trends and analysis, delivering strategic projects, or you simply love working with people, you can find a place in insurance to excel.” One of the most refreshing aspects of insurance, Greene says, is the diversity of thought that exists within the industry, particularly at a specialist insurer like NTI. “On one floor, we have diesel mechanics, data scientists, technical claims experts and customer experience specialists, all talking about how, collectively, we can make a difference to our customers,” she says. “That mix is pretty special.”
RACHEAL TUMELTY National head of credit, surety and political risks Gallagher
After spending almost 30 years in the credit, surety bonding and political risk space, Racheal Tumelty is arguably one of the most experienced professionals in this niche field. She was named Speciality Broker of the Year at last year’s Insurance Business Australia Awards and was also featured on IB’s 2019 Hot List. Tumelty says insurance has given her – and many other women – the chance to pursue a rewarding and stimulating career. “The diversity of talent coming into the industry continues to go from strength to strength,” she says. “I’m delighted to see a growing number of high-profile, positive female role models, which bodes well for future generations in challenging conventional thinking.”
MARIA PARRY CEO Austcover
As one of the few insurance executives to have climbed the full length of the corporate ladder within the same company, Maria Parry has seen it all during her 32 years at Austcover. First joining the firm as an office junior and receptionist, Parry gained experience across the entire organisation before stepping into the top job in 2016. During that time, she’s also picked up a string of professional accolades, including the coveted Australian Broker of the Year Award at the 2018 Insurance Business Australia Awards. A vocal advocate of lifelong learning, Parry has earned a number of qualifications during her career and regularly mentors other professionals, both formally and informally. “People may not think of insurance as the most glamorous career, but it has so much to offer,” she says. “I am passionate about our industry, and the opportunity to progress one’s career exists more than ever before. If you value yourself and your co-workers and work hard to reach goals, success is possible for anyone.”
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KELLY BUTLER Cyber practice leader Marsh
As the cyber practice leader for Marsh’s Pacific region, Kelly Butler heads up a critically important and particularly challenging function within one of the world’s top brokerages. Overseeing client advisory and placement services for cyber and technology risk throughout the Pacific region, Butler is a prominent expert in one of the most rapidly evolving spaces and serves as a senior cyber advisor for Marsh’s largest clients. With more than 21 years of international insurance experience, Butler previously worked with global insurers in claims management, handling complex liability, D&O and professional indemnity litigation. She has spent the last decade at the forefront of cyber and technology, designing cyber and financial lines insurance programs for large corporate and publicly listed clients. She also sits on the Marsh global cyber board and participates in educational events designed to better equip the industry to deal with emerging cyber threats.
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SPECIAL REPORT
ELITE WOMEN IN INSURANCE CECILIA WARREN Director of research and development IAG
As the head of IAG’s research and development team, Cecilia Warren is at the forefront of innovation within Australia’s insurance industry, collaborating with external partners to deliver insights on the nexus between emerging technology and human need. With a core focus on the themes of mobility, shelter and work, one of Warren’s key areas of interest is the development of autonomous vehicle technology. She also sits on the boards of several high-profile organisations, including iMOVE Australia, the Board of Advice for Sydney University’s Institute for Transport Logistics Studies and the Industry Board of Advice for UNSW. “My passion is to build capability in research and STEM careers for women through cooperative research, where external expertise combines with internal focus to drive scalable research and capability,” she says. “My advice to other women would be to combine the interesting and unique things about you – mine include studying science, humanities and fine art with professional experience in policy and politics – to allow you to create unique value.”
PRUE WILLSFORD CEO ANZIIF
Prue Willsford has been at the helm of professional association ANZIIF for almost six years, steering the organisation’s strategic direction and ensuring value for its members. A regular member of the Insurance Business Hot List, Willsford remains an influential figure in the insurance sector as ANZIIF continues to provide education, training and professional development opportunities across the Asia-Pacific region. Importantly, 2019 marks the first year of the ANZIIF Excellence in Workplace Diversity and Inclusion Award; Willsford noted that the high quality of submissions demonstrates the progress toward diversity the industry has made in recent years. “It’s inspiring to see more women choosing a career in insurance and pursuing positions as leaders in the industry,” she says. “This is an industry where diversity really does bring strength. As the industry is changing and responding to customer expectations and new technologies, there are great opportunities to learn and grow. No matter what age, background or level of experience, there is a rewarding career available in insurance.”
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SIMONE DOSSETOR COO Munich Re Australia
Sitting in one of the most senior positions within major reinsurer Munich Re, Simone Dossetor is in charge of determining the strategic direction of operational functions, including HR, IT, facilities and projects, for both Australia and New Zealand. She was also welcomed onto the board of ANZIIF earlier this year. “I have a keen interest in strategy and innovation and believe there is much improvement in how we can better meet and respond to future customer needs,” she says. “I am passionate about creating value in everything we do and continuing to look for ways to improve, learn and develop.” Dossetor praised insurance for providing a rewarding, dynamic and balanced career. “I am a working mum who enjoys the challenges that a busy professional and family life entails, whether that is travel, new experiences or just getting through the day,” she says.
RITA YATES CEO Insurtech Australia
Stepping into the CEO role at Insurtech Australia in early May, Rita Yates is now at the helm of an incredibly influential organisation – one that will only become more important as insurtech permeates deeper into every link of the insurance value chain. With expertise in enabling collaboration between startups and corporate Australia, Yates will be instrumental in carving out a new insurance ecosystem with greater harmony between incumbents and insurtechs. Insurtech remains heavily male-dominated with few women heading startups – unsurprisingly, this is something Yates would like to see change. “I’d love to see more female founders,” she says. “We have some great ones already, but it would be good to have more women working in the industry.”
HILARY BATES Chief claims and operations officer Zurich
Industry veteran Hilary Bates joined Zurich in August 2016 as chief claims officer for general insurance; just two years later, her aptitude for leadership and strategic excellence led Zurich to expand her role to include chief operations officer. Now, Bates leads a team of professionals across Australia and New Zealand who have been recognised for their outstanding ability. Under Bates’ stewardship, Zurich claimed the award for the General Insurer Claims Team of the Year at the 2019 Insurance Business Australia Awards. A trusted expert in her field, Bates is looked to by the entire industry for guidance and insight into claims trends, and she participates in many educational industry events, including IB’s recent Claims Tech Summit Australia, to help elevate other professionals. “The insurance industry has given me so many unique opportunities and wonderful experiences, from travelling the world to working with supremely talented and passionate people,” she says, “but it’s ultimately the industry’s purpose that gets me out of bed each morning – to help people at the time of a loss through the resolution of their claim is incredibly rewarding.”
KATIE STEPHENSON Business development specialist Marsh
Despite entering the industry just seven years ago, Marsh broker Katie Stephenson has already made significant waves in the insurance world and has been identified on multiple occasions as one to watch. She was a regional winner of NIBA’s Young Professional of the Year Award, was selected as one of ANZIIF’s top five up-and-coming brokers and has been featured on both the Insurance Business Young Guns list and Hot List. Stephenson was also instrumental in establishing the NT branch of Young Insurance Professionals in 2014, later serving as the Australasian treasurer and vice president of YIPs before becoming the organisation’s first female president in 2018. At the time of her appointment, Stephenson said her leadership sends a clear message to young women in the insurance industry that they will be welcomed into senior roles. “I think culturally, in Australia, we are starting to turn the page on unconscious bias towards women, and that’s really refreshing.”
KRISTY MARTIN Managing director Insurance Advisernet Merimbula
Since Kristy Martin first started her brokerage at the age of 22 from the spare room in her parents’ house, she’s channelled her entrepreneurial skills into running a successful operation and delivering the highest-quality service to her regional client base. Almost 14 years on – and with three other women on her payroll – Martin now heads up a fully female business and is leading the way for other women who want to go out on their own. “There are so many opportunities for women starting out in the industry or women who want to grow and enhance their careers, or even to start their own business,” she says. Martin has also picked up a plethora of industry accolades as she’s built her business, winning the NSW Business Chamber’s Regional Business Award and the Merimbula Chamber of Commerce’s Young Entrepreneur Award, as well as making the shortlist for Insurance Advisernet’s AR of the Year Award.
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FEATURES
SECTOR FOCUS: ACCIDENT AND HEALTH
Bracing for future impact Accident and health insurance continues to change at a rapid pace – so how can brokers ensure they’re staying up-to-date? Monica Flesser of AHI gives IB an overview of progress in the industry
INSURANCE HAS often been viewed as a transactional relationship – providing a policy to a customer and then processing a claim further down the line if necessary. But AHI has been putting increased emphasis on developing the customer relationship beyond this transactional phase and putting clients at the heart of company operations. “We openly state that our purpose, ‘Protecting what matters most’, is about more than just providing insurance,” says Monica Flesser, Queensland team leader and senior underwriter at AHI. “It means understanding the needs of our customers, providing advice, and using our knowledge and expertise to help them avoid loss.” With more than 20 years of experience in the accident and health space, Flesser takes pride in her ability to give brokers and their clients peace of mind. She sees her role as providing tailored risk advice, as well as advice on the appropriate level of cover. Providing quality education and training to brokers is an integral part of this process, and it’s a personal reflection of AHI’s wider focus on professional development.
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Today’s clients expect brokers to provide advice on how to improve risk management practices and ultimately reduce their insurance costs – it’s no longer just about the cheapest option on the market. With that said, Flesser doesn’t expect brokers to be instant experts in the accident and health category. In a recent training webinar, AHI educated more than 1,600 brokers in the travel and expatriate risk management space. “It’s why we work closely with them – and our mutual clients – so they can better
identify and mitigate risks,” Flesser says. “This partnership approach is a great way for brokers to better aid their clients.” It’s a quality that Flesser believes has kept brokers returning for her services over the years. “Brokers have clients with a diverse range of coverage requirements, and I believe that’s why many so many of them continue to work with me – they know AHI can offer bestin-market coverage for their specific needs.”
Keeping pace with innovation As in any industry, keeping up with changing market needs is challenging – particularly when technology is driving change faster than many insurers can safely keep up. Across all insurance categories, the emergence of insurtech is definitely creating challenges. AHI has recently made some big changes in this area with its new website and broker portal, and it has further innovations planned. “The insurance industry hasn’t always been known for its agility, but at the end of the day, we need to be sure that we’re looking after the people we insure,” Flesser says. “The level of regulation and checks that need to be in place to do this don’t always lend themselves to the fast pace of change we see in other consumerdriven industries.” Similarly, the competitive nature of the insurance industry means there is always price pressure from the market. Nonetheless,
ABOUT AHI AHI is a specialist underwriting agency – we leverage our expertise and experience to provide market-leading accident, medical and travel insurance to keep you covered at home and abroad. Over the last 20 years, we’ve been repeatedly voted the best travel, personal accident and disability underwriter in Australia by the National Insurance Brokers Association. We’ve also earned a series of gold medals in Insurance Business’ annual Brokers on Underwriting Agencies survey. AHI has covered more than a million Australians in over 200 countries, while our agile in-house claims team and strategic partners have paid more than $400m in claims. With our national footprint and in-house claims team, we can make decisions fast so you get the right outcome. For more information, visit ahiinsurance.com.au.
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“The insurance industry hasn’t always been known for its agility, but at the end of the day, we need to be sure that we’re looking after the people we insure” Monica Flesser, AHI Flesser is confident that AHI is prepared for the future. “Making sure we can protect insureds when they need us means we have to have a sustainable approach to underwriting,”
she says. “Premiums are impacted by many factors, but one of the dominant forces at the moment is the continuing increase in medical costs around the world.” Over the last three years, the average
rate of global medical inflation outstripped general inflation by anywhere from 5% to 6% – and regional medication inflation ranges anywhere from 5% to 15%, Flesser notes. “AHI has a big focus on reducing the cost of an incident, whether we do that through preventative measures or mitigating early when an incident occurs,” she says. “We use our partners Best Doctors for second opinion medical advice and Docto for telehealth consults – not to mention the huge role AHI Assist plays in mitigating the impact of an incident on our insureds.” Flesser believes the company’s approach in these areas plays a significant role in
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FEATURES
SECTOR FOCUS: ACCIDENT AND HEALTH
reducing high-cost elements such as hospitalisation, clinic visits and pharmaceuticals. “In turn, this helps us to keep premiums more stable for our brokers and their clients.”
Advancing diversity Change at AHI is not solely confined to policies and products. Flesser notes that the industry as a whole is becoming more inclusive, particularly where women are concerned. “We’ve started seeing a real shift in focus in brokerages to actively appointing women in senior roles,” she says. “And in the authorised representative market, you see many female entrepreneurs coming through. It’s so important for younger female professionals to see that there is a real future in our industry for them.” Whether by choice or not, the scales have definitely moved toward a better gender balance – Flesser notes that AHI has a 60/40 split internally, with more women than men. “My advice to businesses in all industries is to build a leadership pipeline of women,” she says. “Statistics show that an increase in
THE CHANGING FACE OF ACCIDENT AND HEALTH Since starting in the industry, AHI’s Monica Flesser has seen Australia’s accident and health insurance sector expand from less than five insurers to more than 30. This has reinforced her faith in AHI’s focus on combining best-in-market policies with sustainable underwriting practices.“I’ve noticed that when we get an influx of new competitors offering cheaper premiums, they tend to disappear within a few years,” she says. “We want to be here for the long haul.” Additionally, market demands and conditions have seen a significant shift. “For example, AHI has removed all mental health exclusions across our entire product suite, and we are the only accident and health insurer doing so,” Flesser says. “Five or 10 years ago, this wouldn’t have even been a consideration. You can’t help but feel the industry is really changing for the better.”
across various roles and divisions. For her female peers, Flesser suggests looking at ways to increase their visibility to top leaders within the organization. Women, she notes, often tend to focus on their roles and doing them well. This is a crucial part of boosting visibility, of course, but there are
“By looking after our brokers’ clients, it shows we respect both our relationship with them, as well as their reputation in the market” Monica Flesser, AHI females at a senior level improves the performance of the business and creates greater innovation and collaboration.” Flesser notes that such an approach doesn’t mean putting rigid policies in place to force businesses to hire and promote women. Instead, it’s about creating a culture that encourages and provides women with the opportunity to go for high-level positions or to gain knowledge of the business by working
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other factors in play, too. “We often think we have to tick every box on the job description before we should apply for a role, but that isn’t the case,” Flesser says. “Often, leadership are happy to exchange a little skills training as long as you have the right attitude and demonstrate the cultural fit they aspire to.” She also sees power in forging mentor relationships, both within and outside of the
office. “Don’t forget, there are many of us in senior roles who have navigated this landscape before you – you can ask for help.”
Maintaining a unique position As Flesser sees it, specialty is the distinctive offering that AHI brings to the table, whether through its travel insurance policies, personal accident and sickness solutions or any other product the company offers. Being across AHI’s entire suite of accident and health solutions has given Flesser the advantage of variety, and that’s part of what has kept her in the industry for so long. “While the organisation has a broad offering, the value constructs that underpin the way we write policy wordings give me confidence that we’re helping brokers and clients alike to minimise risk,” she says. “By looking after our brokers’ clients, it shows we respect both our relationship with them, as well as their reputation in the market,” she adds. “Our brokers are critical to our business, and we want to continue to innovate and add value in ways that make a difference to them.”
FEATURES
SECTOR FOCUS: PROFESSIONAL INDEMNITY
Ensuring a professional approach As professional indemnity insurance expands into new markets, IB caught up with Katie Stranaghan of High Street Underwriting Agency to find how the changes will affect brokers and insurers alike JOINING HIGH STREET Underwriting Agency virtually straight out of high school, Katie Stranaghan has already made an impressive mark in the highly competitive world of professional indemnity. As the field continues to grow in importance across a wider variety of industries, Stranaghan is eager to see brokers become a greater part of the conversation around the whole process, from initial consultation through to claims.
“As we move into a harder market, the broker’s understanding of their client is particularly crucial,” she says. “Simple things like managing the client’s expectations on foreseeable changes on rates and appetite or making sure renewal submissions are submitted in good time can make a huge difference to the process of placing cover.” In general, PI is evolving away from traditional professions such as accountants and
ABOUT HIGH STREET UNDERWRITING AGENCY High Street is a Lloyd’s coverholder and has a close working relationship with our London brokerage firm, which has been placing international business into the Lloyd’s market for more than 100 years. Our relationships allow us to find a home for some of the more obscure risks in the market. We are also able to act quickly in setting up schemes and new products, should our brokers approach us with opportunities. We pride ourselves on the level of support and service we provide to our brokers. For this reason, all our underwriters are hands-on in speaking with brokers and promoting the products. In effect, our BDMs are our underwriters, which means you’re always speaking to the person who is actually evaluating and assessing your risks, and there’s no chance of miscommunication or unnecessary delays in getting the answers you want. For more information, visit hsua.com.au.
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lawyers and into many new areas. Many of High Street’s risks are written in the mining, architectural and engineering spaces, but there are still surprises that pop up from time to time, and Stranaghan prides herself on her ability to rise to the challenge of more niche requests. “I recently quoted for a sculptor who primarily designs large art displays made from bamboo and other eco-friendly materials,” she says. Quotes for niche specialists like this are indicative of the new norm within PI. While insurers and brokers typically have a good understanding of their professional duty within traditional areas, these new frontiers are often presenting challenges. Now that consumer perception has taken on an everincreasing importance in the age of social media, many businesses are eager to protect their reputation if something does go wrong, alongside the simple safety aspects that come in to play with any workplace. “More and more businesses outside of the traditional PI arena are being asked in contracts to carry PI cover,” Stranaghan says. “There’s often a less clear-cut understanding around the exposures these businesses and contractors face.” It’s a situation that cuts across the business, broker and insurer, Stranaghan notes. Businesses new to professional indemnity don’t always know what they need, and brokers unfamiliar with the specifics of the industry won’t necessarily pick up on everything they should be covering. Similarly, insurers can’t write an effective policy or assess risk appropriately if they lack the relevant knowledge. As an industry heavily reliant on precedent and data, insurers are facing new challenges where neither precedent nor data exist. Accordingly, all the parties involved need to work together, particularly as profes-
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sional indemnity gains an increased importance among a broader variety of industries, Stranaghan says. “Brokers who assist clients by fully understanding their risk exposures can assist with advocacy and guidance on managing those risks, ultimately achieving better terms,” she says. “Additionally, as insurers revise appetites, it’s crucial that brokers have a full knowledge and strong relationships with the insurers in that sector.”
The changing face of the workforce Change within the industry isn’t solely limited to an increase in the businesses that are now participating in PI. The insurance workforce
“I’m not sure how people perceive me initially, due to being a young woman in a male-oriented industry – but to be honest, I don’t give it a great deal of thought, which I find is the best way,” she says. “Hopefully once people realise that I know what I’m talking about, not much else matters.” Stranaghan also sees herself as a reflection of a wider trend within the industry, where women are increasingly being encouraged to pursue insurance as a professional career beyond just administrative roles. “I think the shift has already begun in the industry, and gender diversity is becoming more and more the norm,” she says. She points to initiatives like Women in
“More and more businesses outside of the traditional PI arena are being asked … to carry PI cover. There’s often a less clear-cut understanding around the exposures these businesses and contractors face” Katie Stranaghan, High Street Underwriting Agency itself is undergoing a shift as gender diversity grows. Insurance has traditionally been perceived as a male-dominated industry, but women like Stranaghan are beginning to change that perception – both from within and outside the field. Within High Street, Stranaghan says she has the full support of the management team and describes herself as lucky to have been given particular career opportunities. Her rapid ascent in the company over the last few years is evidence that she’s worked to make these opportunities her own, too.
Insurance conferences, where successful female speakers provide examples of their own experience in the industry and the heights that can be reached with the right tools at your disposal. “They reaffirm that it’s possible to break through the glass ceiling,” Stranaghan says. “It serves an inspiration for what can be achieved within the field.”
The road ahead Given the changes that are taking place across professional indemnity insurance, there is
TECH SUPPORT According to Katie Stranaghan, High Street is now as much an IT company as it is an underwriting agency. There are effectively two separate arms to the business, which helps to provide a unique point of difference between High Street and its competitors. “We initially started the IT arm to assist with selling our own insurance products,” Stranaghan says. “But since then, the focus has shifted a bit – we now work with brokers to identity inefficiencies in their workflows and provide business improvement suggestions by way of customised IT solutions.” High Street offers this approach to all brokers, regardless of the insurer the broker uses. “Most people don’t fully understand the impact information technology can have on their businesses,” Stranaghan says. “Brokers are often intimidated by technology, but it doesn’t have to be a scary thing at all.”
much speculation about what the future holds. Perhaps the most obvious prediction is that PI is likely to continue to increase in importance. Businesses are understandably becoming more risk-averse and are looking for protection for both their cash flow and their reputation.
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FEATURES
SECTOR FOCUS: PROFESSIONAL INDEMNITY
“We didn’t really anticipate the rapid changes in the PI space over the last 12 months. It’s difficult to know with certainty which way the market will turn” Katie Stranaghan, High Street Underwriting Agency Yet it’s not quite that simple, as Stranaghan points out. There has been an overall hardening of the market, to the extent that some risk-bearers – like Certifiers – have been struggling to source cover at all. It’s been a massive shift, Stranaghan says, and one that reverses the trend of falling rates that has been consistent since 2004.
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“We didn’t really anticipate the rapid changes in the PI space over the last 12 months,” she says. “It’s difficult to know with certainty which way the market will turn – we’ve seen certain professions hit harder than others, but as rates rise, it’s quite possible that more insurers will return to the market.”
Stranaghan stresses that it’s important to remember that the market has been soft for more than a decade. Accordingly, most of the low-risk professions remain attractive to insurers. “We may see a two-speed market with miscellaneous risks remaining competitively priced and others hardening further still,” she says. Despite the changes ahead, Stranaghan remains confident that High Street will be equipped to handle them. “We’ve built our reputation on being an insurer that can handle unique situations and bespoke policies,” she says. “The market goes in cycles and shifts, but that’s not something that’s going to change for us – if anything, that’s a skill that’s going to become even more important in future years.”
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BROKERAGE INSIGHT
The human element Rivers Insurance director Nerida Trappett believes clients are calling out for genuine human connection – which is why people will always be front and centre at her brokerage
A CURSORY look at Rivers Insurance’s website reveals that the multi-location brokerage is doing things a little differently than many other players in the market. From straightforward language to personalised staff profiles, Rivers takes a noticeable step away from the stiff and serious reputation that often accompanies insurance. This detour is no accident – Rivers director Nerida Trappett says the brokerage consciously chose to adopt a more informal attitude because it complements the firm’s commitment to relationships. “Our culture is all about relationships, whether that’s with our underwriters, our clients or internally with our staff. Relationships are our main focus,” says Brisbane-based Trappett, who joined the firm in 2015. “Honestly, I can’t overstate the importance of relationships – and they’re always going to be important because that’s what people really value, and you can’t automate a relationship.” One of the ways Rivers fosters relationships with its clients is by abandoning technical jargon, which Trappett says is an effective way to break down barriers between brokers and clients to establish a more meaningful connection. “We believe in taking the technical jargon
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out and talking to clients in their language, rather than our language,” she says. “That way they feel more comfortable talking to you because you’re not throwing big words at them that they don’t understand, but you can still get your message across.” A shift towards a more informal tone isn’t the only measure the brokerage has taken to keep the focus on relationships – the personalised staff profiles on its website were also designed to spark a human connection. “Those profiles on the website are also on our email signatures and business cards – they’re a bit of an icebreaker, and they often drive really good conversations with clients,”
Trappett says. “We never give a business card out and see it go straight in someone’s pocket. It’s always looked at and discussed, so it’s been a really great way to connect with clients.” However, the simple initiative isn’t just for the benefit of customers – Trappett says it also ties into the fact that Rivers wants employees to feel comfortable being their full selves at work. “We’ve got fantastic staff, and we’re all about our people, so we strive to have a family culture with a caring environment,” she says. Rivers’ culture is reflected in the firm’s five values – accountability, approachability, passion, support and diversity – which were
BEYOND THE BUSINESS CARD The staff profiles on Rivers Insurance’s website – which also appear on email signatures and business cards – are just one indication of the brokerage’s unique approach. Unlike standard staff profiles, which tend to detail professional history or academic achievements, Rivers draws attention to each employee’s passion or hobby. Notable mentions include 40-year insurance veteran Lyn Heaton (pictured at right), who is a regular on the basketball court, and branch manager
Brad Allen (pictured at left), who spends most of his spare time diving or fishing in the waters of Far North Queensland.
FAST FACTS: RIVERS INSURANCE Specialisations Property Agriculture Construction SMEs Marine Professional services Education
Year founded: 1981 Number of employees: 29 Number of offices: 3 Locations: Brisbane, Cairns and Innisfail
“[Relationships are] always going to be important because that’s what people really value, and you can’t automate a relationship” crafted by the brokerage’s employees. “We don’t believe in driving culture from the top down,” Trappett explains. “It needs to be all of us deciding what the culture is and what we want that to be moving forward.” That sentiment is backed up by a number of benefits the brokerage has rolled out for
employees, including a nine-day fortnight and flexible work opportunities. “We have four staff members who came back from maternity leave and decided they’d prefer to work part-time, and we have one staff member who predominantly works from home,” Trappett says. “Where we can, we really
try to accommodate those requests, and it means we get to keep our amazing people.” Unsurprisingly, the focus on people – whether customers, co-workers or commercial partners – has earned Rivers an unshakeable reputation among its clients. “Relationships have become our point of difference,” Trappett says. “We have a lot of longterm clients, and it’s because of the close bond they’ve formed with their Rivers staff member. We’ve seen clients through all sorts of changes; we see their businesses grow; we see the next generation take over. That’s what we’re really about – the relationship part of it.”
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FEATURES
SECTOR FOCUS: PRODUCT RECALL
Preparing for the worst Product recall insurance is a significant component of Liberty’s crisis management offering – and it’s crucial for fast-moving consumer goods businesses. Liberty’s Donna Niblock explains why
IN THE FOOD and beverage market, brands live and die by their reputation and the level of consumer trust they inspire. A fundamental building block to establishing trust with consumers is ensuring that products in the marketplace are reliable and safe for consumption. To ensure this, manufacturers are required to have robust quality control processes; a good supplier vetting process; and an effective, rigorous and periodically tested recall management plan. Traceability is also crucial – manufacturers must know where their products are and how to have them returned expeditiously in the event of a
product safety incident. Product recalls can be a challenging process for affected businesses, and Donna Niblock, assistant vice president of crisis management at Liberty Specialty Markets, believes it’s only going to become more challenging in the future. During her time working in the crisis management team, she has seen hundreds of claims come through the door and has watched the market evolve. “As a senior member of the crisis management Asia-Pacific team, I’ve been involved in a sizeable proportion of the product recall claims that we’ve managed in Australia, whether that be liaising with the broker and
ABOUT LIBERTY SPECIALTY MARKETS Liberty Specialty Markets offers an array of world-class insurance and reinsurance services to brokers and insured clients. We bring value and solutions to more than 20,000 of AsiaPacific’s most significant business and government organisations, helping them to protect what they earn, build and own. Liberty is part of the global Liberty Mutual Group, a Fortune 100 company that’s been in business since 1912 with a rating of ‘A’ (Strong) from Standard & Poor’s. To find out more, visit libertyspecialitymarkets.com.au.
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client in relation to the steps involved in the claims process, triaging the incident with our consultants to ensure the client has the right people on the job, or dealing with our claims team,” Niblock says. “It’s a more uncertain time for food manufacturers on this front than ever before. The complexities of the modern world have thrown up a number of exposures that simply didn’t exist in decades past. Food manufacturers now have to manage their brand in the context of proliferating social media, greater consumer expectations, more detailed regulatory requirements, participation in a global supply chain that is more complex than ever before, and the increasing exposure to cyber risks.” The issue ultimately comes down to how much loss (whether financial or reputational) the manufacturer can bear if a recall occurs and they have no insurance cover. Under the Australian Consumer Law, if a product recall is required, the supplier must stop selling the product, inform the relevant authorities of the problem, warn consumers of the hazards, and offer the consumer replacement, repair or refund of the product. “All of this can be very expensive, and if the first recall is not done properly, it can be very costly for the supplier,” Niblock says.
Boosting broker awareness Brokers need to be aware of emerging risks within the field and offer insurance solutions that can add value. Niblock sees brokers as crucial to the education process, particularly when companies are purchasing crisis management cover for the first time. “Brokers often need to educate their clients about crisis management policy coverage and explain the benefits,” she says. “As a leading insurer in this space, it’s our job to make sure brokers have enough information to be able to confidently explain why a company should buy the cover.”
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Similarly, having a good grasp of policy coverage is crucial for brokers to avoid misunderstandings and misinterpretation. With claims varying in size from $50,000 to multimillion-dollar figures, it’s important that everyone is clear on coverage details. “We know, for example, that product recall claims are emotional for the client, and having potential coverage issues early on only adds more stress to the process,” Niblock says. “Accordingly, we work to educate brokers and clients alike to avoid situations in which the broker and client thought the policy coverage worked in one way and then found out their assumptions were incorrect.”
“It’s a more uncertain time for food manufacturers on this front than ever before. The complexities of the modern world have thrown up a number of exposures that simply didn’t exist in decades past” Donna Niblock, Liberty Specialty Markets Solutions of all sizes Liberty has the largest crisis management team in Asia-Pacific, with underwriters located in Sydney, Melbourne, Brisbane, Singapore and Hong Kong. The team conscientiously works to make the underwriting and claims
process as simple as possible. One recent example is Liberty’s new small business food and beverage cover, specifically designed for small to medium-sized manufacturers. This coverage is a first in Australia. “We know that costs to withdraw or recall
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FEATURES
SECTOR FOCUS: PRODUCT RECALL
WHAT TO LOOK FOR IN CRISIS MANAGEMENT INSURANCE Donna Niblock from Liberty Specialty Markets outlines three key considerations for brokers when looking for a crisis management insurance partner:
A solid understanding of what clients need and the ability to provide bespoke policy coverage to accommodate those needs
a product can be expensive, so we’ve designed a product that responds to both withdrawals and recalls – withdrawal occurs where there is no threat of bodily injury, and recall is where there is a threat of bodily injury,” Niblock explains. “We’ve written all sizes of crisis management risks over the years, ranging from multinational corporations to SME manufacturers to boutique producers of a single yoghurt line,” she adds. “A low-value claim might be an issue affecting a low-volume line of product, one that’s only sold through a small number of retailers. Conversely, you have claims that go right up to the level of the Patties frozen berry recall of 2015. We estimate that event cost the client around $9m, of which half was loss of earnings.”
leader in the space, Liberty is always looking for ways to provide better and more innovative solutions to clients. In the coming years, Niblock expects a number of new trends within product recall. “We’re seeing more reliance on the insurer to manage the process with the supplier,” she says. “Early involvement is key to loss mitigation, so suppliers are now more open to having the insurer involved, as well as taking up the services of food technologists, media experts and other specialists.” Accordingly, Niblock believes it’s the insurer’s responsibility to have a team ready to respond when clients require it. Another emerging trend Niblock has noticed is recalls as a result of allergens, largely due to an increase in imported raw
“Early involvement is key to loss mitigation, so suppliers are now more open to having the insurer involved” Donna Niblock, Liberty Specialty Markets Local assistance in the event of a crisis or recall incident – for example, Liberty has a panel of Australian-based consultants, including food technologists, crisis management experts and media advisors, who can assist a client throughout the life cycle of a crisis or recall
Great claims service that gives clients immediate access to a claims team so that any challenges can be quickly addressed
Niblock also points to a more recent case handled by Liberty, where an undeclared peanut allergen in a product occurred as the result of peanut oil being used in the product instead of vegetable oil during overseas production. The local distributor had a turnover of approximately $7m, and the recall cost them around $350,000; at least half of this was loss of profits. “This also raises an emerging claims issue,” Niblock says. “When something goes wrong offshore, it’s often very difficult to seek recourse from the manufacturer – for the local distributor that is relying on an overseas manufacturer, having the right insurance in place becomes even more crucial.”
The future of product recall Product recall is continually evolving. As a
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materials. The main reason for this is that offshore manufacturers are not always aware of the stringent regulation around acceptable levels of allowed allergens in products in Australia. The responsibility falls to the manufacturers to ensure that their suppliers are aware of acceptable levels in Australia and have robust vendor quality assurance programs in place. Despite these hurdles, Niblock remains confident in Liberty’s ability to rise to the challenge with unique offerings that enable the insurer to not only service existing customers, but also continue to expand. “We have the capability to visit clients, educate them on their policy and also assist them in the event of a claim,” she says. “I think that’s quite unique in the Australian crisis management market.”
NEVER CHANGING, EVER CHANGING. As one of the region’s most trusted insurers, Liberty International Underwriters has always known where and how to move with the times. By adopting the name of our global brand, Liberty Specialty Markets, we better capture the breadth of our international business. We’ll now be working with you as one brand across our major insurance markets. Locally we continue to offer the same product lines, experienced team, consistent risk appetite, local authority and dependable service for which we’re known. We’re here to offer continuity and assurance in an unpredictable world.
For Mutual Advantage libertyspecialtymarkets.com.au
Liberty Specialty Markets is a trading name of Liberty Mutual Insurance Company, Australia Branch (ABN 61 086 083 605) incorporated in Massachusetts, USA (the liability of members is limited); Liberty Specialty Markets Hong Kong Limited (No. 2400200) and Liberty Specialty Markets Singapore Pte Limited (UEN 201538069C) with a branch in Labuan (Company No. LF12903) (together Liberty).
FEATURES
SECTOR FOCUS: WATER DAMAGE
Beyond surface restoration What sort of water damage issues should your clients be aware of? Steamatic’s Erica Booker tells IB what brokers need to know about remediation following a natural disaster 46
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WATER DAMAGE is a complex issue for insurers. While its effects tend to be obvious – particularly when it comes to property destruction – it can cause serious ongoing issues if damage is not mitigated properly. One of the lingering effects that often gets overlooked is mould, which may only become apparent weeks or months after the initial event and can cause serious issues, including property damage, loss of belongings, poor air quality and health risks. Erica Booker, national sales and marketing manager at Steamatic, notes that water damage is an issue that has serious implications for the insurance industry, both now and into the future. Incidents like the recent Townsville floods have played a role in bringing the issue to wider national attention. Booker
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believes insurers will see an increasing number of claims around the issue in coming years, so brokers need to work to prepare their clients who are located in flood plains and regions where catastrophes occur often. “I’m originally from the USA, and we’ve seen all sorts of lawsuits occurring as a result of mould in the last decade or so,” Booker says. “It’s been an industry-wide issue, particularly in parts of the country prone to natural disasters.” This means that remediation work is frequently being done twice – insurers cover work to be done, only to discover it needs to be redone a short time later if not adequately assessed and addressed on first attendance. And that’s if things are resolved before they get to court. Health-related concerns have become an increasingly common issue, too. Though the full effects are still undetermined, mould can have negative health effects on a variety of
ABOUT STEAMATIC Steamatic is Australia’s leading provider of specialist cleaning and disaster management services and provides a complete service to the domestic, commercial and industrial sectors. Our servicing capability is unrivalled in Australia, with the largest network of capital city and regional locations. Headquartered in Melbourne, Steamatic Australia has a network of more than 30 service response centres nationwide. In addition, Steamatic has the capability, resources and infrastructure to attend anywhere in Australia and in most parts of the world where a catastrophe has occurred. Our aim is to ensure our service and commitment to our clients meets our aspirations of quality and reliability whilst delivering an effective and costefficient service 24 hours day, 7 days a week. Employing more than 350 staff Australia-wide, Steamatic has played a leading role in the restoration and recovery of every major disaster in Australia, including cyclones, floods, storms and fires. For more information, visit steamatic.com.au.
can often incorporate significant structural repair and replacement. Mould spores can be found virtually everywhere, indoors and out, but remediation means ensuring they don’t have an environment to flourish in. “Some soft goods can be cleaned and treated, depending on the level of contamina-
“Correcting the issue in a water-damaged property is about more than ensuring the future of the structure. It’s also about ensuring the wellbeing of the people who live in it” Erica Booker, Steamatic people, including the elderly, young children, people with underlying health issues and the immunocompromised. “Correcting the issue in a water-damaged property is about more than ensuring the future of the structure,” Booker says. “It’s also about ensuring the wellbeing of the people who live in it.”
The basics of remediation Booker is quick to point out that remediation involves much more than simple cleaning. It
tion, but building materials like sheetrock and flooring that demonstrates active microbial growth needs to be removed and replaced,” Booker says. “If it’s not remediated correctly following industry standards from the IICRC S520, and the environment becomes compromised by temperature and relative humidity, mould spores can find their way back in, begin to grow, and the problem can recur again and again. We take the steps to ensure people can protect or salvage their assets in the event of an incident.”
Steamatic carries out a variety of remediation services, providing a comprehensive building health management service for clients to effectively manage their indoor environment and ensure compliance with industry standards and guidelines. This includes air quality analysis and an assessment of structural integrity, among other factors. Steamatic uses state-of-the-art technology and instrumentation to measure a broad range of air quality parameters in the building environment, including carbon dioxide; carbon monoxide; airborne fungi, mould and bacteria; volatile organic compounds; respirable dust; temperature; humidity; and sound levels. Steamatic also provides educational material and seminars for brokers and insurers who are looking to gain better education around the subject. “Our aim is to ensure that potential health risks associated with the building environment are suitably managed,” Booker says. Accordingly, Steamatic Australia has developed a world best practice for mould remediation based on and following the IICRC’s S520 standards and protocols for professional remediation, as well as the New York City Department of Health and Mental Hygiene Guidelines for Assessment and Remediation
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FEATURES
SECTOR FOCUS: WATER DAMAGE
of Fungi in Indoor Environments. The company’s goal is to be transparent to the marketplace on how it approaches mould projects. “Steamatic uses advanced products, procedures and equipment to assure the highest level of cleaning performance and protection of our clients’ contents and their property,” Booker says.
Archival repairs While much of the conversation around remediation has been dominated by residential properties, there are commercial and civic benefits of mould remediation beyond simple property repair. Booker points to a previous Steamatic project, in which major water damage in a state government storage facility
ENSURING GOOD AIR QUALITY Closely related to mould are air quality issues – and one of the most common sources can be office HVAC systems. The increasing level of office-based activity and the requirement to minimise energy usage is putting greater demands on building HVAC systems, which can lead to issues around air quality. “Buildings are now being constructed to reduce the infiltration of outside air through building leakage,” Erica Booker says. “The amount of fresh air introduced through the airconditioning system is also often reduced.” Additionally, there is now greater recognition of the health effects associated with poor indoor air quality, as well as the problems associated with odours and off-gassing from carpets and modern synthetic construction materials. Given the legal and insurance issues that can surround such hazards, Booker notes the importance of regular air testing and putting policies in place to account for potential issues.
“If [water damage] is not remediated correctly following industry standards .... the problem can recur again and again” Erica Booker, Steamatic had damaged and potentially destroyed a number of important historic documents. “They were on paper, linen, and some were laminated,” Booker says. “However, all of them had adhered to the rusty draughtsman drawers that they were stored in.” Initially, government officials thought the documents were beyond repair. However, Steamatic was able to inventory and remove the metal drawers and arrange for the documents to be frozen inside to stabilise them and prevent ongoing damage. “After this, we were able to restore and save these by utilising the vacuum freeze-drying process,” Booker says. “All of the contents were recovered undamaged, with only slight water marks on the paper, saving approximately 10,000 pieces of history.”
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Bringing things up to standard In the US, standards and guidelines have been developed to combat mould remediation issues and to help insurers, assessors and contractors ensure that work is being carried out properly. However, Australia hasn’t really developed its own guidelines yet, which has caused some confusion within the industry as to the proper procedure for dealing with mould and who is a qualified mould remediator. Australian insurers and providers have also tended to focus more on cleaning and sanitisation rather than dedicated mould remediation – but Booker believes this is likely to change in the coming years. “The USA had numerous issues around price regulation – insurers were being charged hugely variable sums, which in turn affected
premiums for clients,” she says. “Eventually, that meant insurers had to have conversations with each other around the way coverage was going to work.” The implications are significant – Booker notes that policies in the US tend to be heavily affected by their location and the surrounding weather conditions. For flood-prone areas, mould remediation is often an optional extra rather than a default inclusion in a policy, and clients must carry flood cover if their property is in a designated flood zone or plain. Ultimately, water damage and mould remediation are issues brokers need to be discussing with their clients. If clients have property or contents that may be subject to mould-related issues, Booker notes, it’s crucial for them to have an understanding around the subject. Brokers are a key point of contact when an event occurs – whether it’s a pipe break, excess humidity or other water damage – and being informed is key. “When the policyholder calls up, you can have an educated conversation with them,” she says. “And if the claims experience is a good one, the broker looks great.”
TH E ST E A M AT I C G R OU P OF C O MPA NIES Steamatic has grown to include three core business models, each with its own area of specialisation, bringing great diversity, knowledge and stability to our business model. Each business has the capability to independently deliver projects in its areas of specialty, while drawing on centralised group support systems and services. These central systems provide quality control and due diligence which ensures the same high standard is delivered on each project, no matter the size of loss. With over 30+ branches throughout Australia, we have the capacity to handle Metro and Regional claims.
FIRE, SMOKE & SOOT RESTORATION
CORE SERVICES • Fire / Smoke / Soot Restoration • Water Damage Restoration • Mould Remediation • Desiccant Dehumidification • Electronic and Mechanical Restoration • Vacuum Freeze Drying for Document
WATER DAMAGE RESTORATION
Restoration • Cryogenic Cleaning • Laser Light Cleaning • Large Loss Response Capability
MOULD REMEDIATION
Commercial, Industrial, Domestic Cleaning and Restoration
Hi-Tech Non-Abrasive Laser Surface Cleaning
Large Loss Project Management
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1300 783 262
13 000 747 00
FEATURES
CLAIMS TECH SUMMIT
Inside the Claims Tech Summit IB’s recent Claims Tech Summit Australia gave insurance professionals an overview of the technology that’s transforming the claims space
MORE THAN 200 insurance professionals recently gathered in Sydney for the inaugural Claims Tech Summit, which featured an impressive lineup of eminent industry speakers. Sponsored by Kennedy’s, the event attracted a crowd of C-suite executives, legal experts and claims specialists, all eager to advance their understanding of the latest strategies and emerging trends in the field. Hilary Bates, chief claims officer for Zurich’s general insurance arm, was among the first speakers to take to the stage, offering insight into how innovative technologies are streamlining the claims process and transforming the customer journey. “Technology is allowing us to challenge Attendees had the opportunity to network during catered breaks throughout the day
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whether the way it has always been done is the right way for it to be done,” she said. “It provides an opportunity to completely change our claims processes.” Chubb’s claims operations manager, Cecilia Hidalgo, was also on the roster, discussing strategies to drive innovation and create superior customer experiences. “We do know that insurance companies, in terms of products, are quite similar – so one of the things we need to think about is how we can be different and how we can turn into a customer-centric company by using new technology, streamlining processes and embedding change,” she said. Nick Wiesener, the Insurance Council of
Karim Derrick of Kennedy’s explains how blockchain is being used to bring down legal spend in the claims space
More than 200 professionals attended the industry event
Susan Donaldson, head of claims for Berkshire Hathaway Specialty Insurance, addresses the crowd
Geoff Kendall, CEO of ezidox and chief corporate counsel of Lakeba Group, shares his thoughts about the event on camera
Sedgwick national client manager Steve Makhoul and Mindtree regional director Manas Gautam
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CLAIMS TECH SUMMIT Australia’s disaster response, resilience and innovation manager, shared details of his journey into the damage post-Cyclone Debbie. “We were on the ground as the event was unfolding, and that’s where things got a bit hairy – the flood water came up to waist and shoulder depth, the water was getting electrified by the most intense lightning storm we’d ever seen, and I later found out there were a lot of crocodiles in that water – but I’m glad I didn’t know that at the time,” Wiesener told the shocked audience. He went on to offer insight into how the ICA leveraged insurtech to assist both the insurance industry and impacted communities, sending initial damage assessment reports to insurers, improving situational awareness and deploying drone technology to assess claims. “Natural disasters are one of the greatest reputational risks to the general insurance industry, so there’s a huge influx of claims, there’s a delay in accessing properties, and there’s high level of media and political scrutiny,” Wiesener said. “At the same time, this is coupled with modern expectations around rapid, on-demand services – people expect their claims to be handled immediately and their properties to be repaired faster than what is actually possible.” Karim Derrick, head of research and devel-
Attendees take notes during a session on innovative technologies in the claims space
opment at event sponsor Kennedy’s, flew in from London for the event. His session explored the ways in which AI and blockchain are being used to transform the claims process and reduce legal spend. “Most fraudsters exploit the gaps between insurer databases because they’re a little bit
antiquated, so it’s quite easy to dance between them – but blockchain is a simple solution to that,” he said. “It allows people to maintain their own databases, and they don’t have to expose their books to each other – but at the same time, they can still have the benefit of a common data source.”
The event was held at the five-star Amora Jamison Hotel in Sydney
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Kate Fegan, head of customer care at iptiQ, and Brad Smith, COO of Gallagher Bassett
Select guests enjoy a VIP lunch, hosted by Genpact
Gallagher’s head of claims, Adam Squire, and 360 Globalnet BDM Daniel Lukich
EMlife CEO Katherine Gobbi and GM Daniel Sayegh discuss streamlining the application, verification and approval processes of complex claims
Performance analyst Jimmy Foo and claims account manager Gemma Churchill, both from Zurich, with MECON Insurance’s senior claims supervisor, Anna Ryan
Chubb claims operations manager Cecilia Hidalgo discusses strategies to create better customer experiences
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FEATURES
MOTIVATION
Insurance Business is the leading business magazine for insurance brokers and advice professionals.
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Aspirational cover stories Best-practice profiles and case studies Interviews with global industry leaders Business strategy content Special reports
Find out more and subscribe at www.insurancebusinessmag.com www.insurancebusinessonline.com.au
PEOPLE
CAREER PATH
EMBRACING CHANGE Gallagher Bassett’s Emma Hosking has never been one to let the grass grow under her feet
At university, Hosking pursued a business degree in management with a major in HR and industrial relations. “I knew that I wanted to work with people and with teams – that was what I enjoyed doing and what I wanted to do. I had been a prefect and house captain in school, and even then, I liked to lead people. I’ve always been comfortable with the idea of leadership.”
1990
STUDIES MANAGEMENT
2000 SPECIALISES IN GOVERNMENT AND POLICY During Hosking’s time at WorkCover, the company was subject to many changes and restructurings, one of which led her to step into a position managing government relationships and legislative policy. “Every time we had a new CEO, they would want to effect change. There was a steep learning curve [as a manager]; I was supporting the minister, so I had to learn about the political environment and have an understanding of the protocol. It gave me a different appreciation of the meaning of risk.”
2014 JOINS GALLAGHER BASSETT Hosking was eventually lured to change lanes by the culture at Gallagher Bassett. “I got to know the team; that was a catalyst [for joining]. I liked how the management operated and liked the culture. They lived and breathed the culture they espoused. It’s a true working family – a values-based business.”
2018
MANAGES TRANSITIONS Hosking soon got another chance to try out a new area of the business, moving into transition management, where she has become integral in setting up new accounts. “I had to understand their risk and what impact changing the claim provider would have on their customers or their financial performance or their reputation – and I had a good understanding all those things. It’s all about managing relationships and having the initiative to address the transfer of claims.”
1993 FINDS A MENTOR One of Hosking’s university friends, already employed by WorkCover, offered her a role in the business. As part of her training, she was given the opportunity to work in several different fields. “We had formed a negotiation team as part of an assignment – that’s how we got to know each other’s skills and ability. He mentored me for many years.”
2012 TAKES ON A NEW ROLE During her 20 years at WorkCover, Hosking held 15 different roles; her next move was into account management, where she served as a liaison with claims providers.
“I moved around within the organization a lot – every couple of years, I was doing something different. That gave me an exposure to and understanding of the commercial point of view. I could look at the same business from a commercial perspective” 2017
MOVES INTO BUSINESS DEVELOPMENT A contact she had worked with at WorkCover who had made the transition into business development invited Hosking to become part of the team. “She knew me and recognized my core skill set, combined with the understanding of the client perspective. Coming from a government background, I never thought I would see myself as a salesperson. That role was so vastly different for me.”
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PEOPLE
OTHER LIFE
TELL US ABOUT YOUR OTHER LIFE Email ibo@keymedia.com.au
INTO THE WILD Adventure junkie Nic Curkoski regularly combines her love of the outdoors with her passion for helping people
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Years Curkoski spent planning her trek to Everest Base Camp
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Number of exercise sessions Curkoski typically does each week
Curkoski balances her love of adventure with the demands of being a mu m to two teenage boys
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12
Nights Curkoski spends at TAFE every week
SEVEN YEARS ago, Nic Curkoski had never stepped foot inside a gym – but everything changed when the Coastal Insurance Services director joined an Insurance Advisernet team trekking the Kokoda Trail in the name of charity. “That’s where my journey began,” she says. “I fell in love with leisure adventure and helping others along the way.” Since then, Curkoski has taken on increasingly gruelling challenges, raising thousands of dollars for good causes while pushing her own physical
and mental limits. In the last four years alone, Curkoski has climbed Mount Kilimanjaro in solidarity with veterans, scaled an obstacle course for 12 hours in the name of suicide prevention and scrambled almost 200km across the Simpson Desert to help find a cure for juvenile diabetes. As if all that weren’t enough, Curkoski has also managed to become a certified marriage celebrant and is currently studying to become a fitness instructor. “Life is pretty chaotic, but I wouldn’t change it for a second,” she says.
WHO WILL COME OUT ON TOP?
Winners for Insurance Business’s annual showcase of the country’s most successful brokerage businesses will be revealed in the next issue and online at https://www.insurancebusinessmag.com/au/