Insurance Business 8.06 by Key Media

insurancebusinessonline.com.au Issue 8.06

WORKERS’ COMPENSATION

How icare has transformed the system in NSW

MODERNISATION AT LLOYD’S

Can a slew of new initiatives turn things around?

TRANSPORT INSURANCE

Finding success in a notoriously difficult sector

THE LIABILITY EXPERTS Stefan Feldmann of HDI Global on how the company’s industrial legacy allows it to offer something different in the liability market

BROKERS ON UNDERWRITING AGENCIES Brokers name their best partners for specialised coverage

ProfessionalEdge Professional Indemnity Insurance ... giving you the EDGE.

Introducing ‘ProfessionalEdge’, AIG’s new 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 and Compensatory Fines and Penalties. ProfessionalEdge is now 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. The content is a guide to coverage benefits and should not be relied upon to determine policy coverage . The precise scope and breadth of policy coverage is subject to the specific terms and conditions of each policy wording. 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.

ISSUE 8.06

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CONTENTS

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UPFRONT 02 Editorial

Is insurance destined to always be behind the times?

PEOPLE

A ONE-WOMAN SHOW

SPECIAL REPORT

BROKERS ON UNDERWRITING AGENCIES 2019

Nic Curkoski reveals how she balances a full life with the demands of running her own business

Key data that should be on your radar

06 Head to head

How important is it for brokers to get on board with insurtech?

08 News analysis

Can Lloyd’s of London’s new modernisation strategy right the ship?

10 Intelligence

Suncorp gets rid of its smash repair business

12 Insurer update

Many SMEs remain in the dark about their reporting obligations under the NDB scheme

For the fifth year running, brokers tell IB which underwriting agencies are consistently delivering for their clients

FEATURES

PEOPLE

A closer look at how icare has overhauled the workers’ compensation system in NSW

EXPERT SPOTLIGHT

04 Statistics

A JOURNEY TO A FAIRER SYSTEM

Stefan Feldmann and Alex Tarantino explain how German insurer HDI Global’s approach can benefit industrial businesses in Australia and New Zealand

14 Underwriting agencies update Why builders need professional indemnity now more than ever

16 Opinion

Building a strong brand for your brokerage starts with your people

FEATURES 42 A more thoughtful approach

How Blend Insurance Solutions is breaking new ground in accident, sickness, travel and employee benefits

PEOPLE

FEATURES

TAKING THE WHEEL

What brokers need to know when partnering with insurers in the transport sector

62 Career path

Charting Chadwick Jones’ meteoric rise through the industry

64 Other life

Catching a wave with surf insurance specialist Greg Hayes

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UPFRONT

EDITORIAL

The future is already here

he “most advanced marketplace in the world.” That’s what Lloyd’s of London set out to become when it launched Blueprint One at the end of September. In the document, Lloyd’s outlined six initiatives that it believes will give it a heightened focus on digital, data and technology. This isn’t the company’s first step toward modernisation this year. Back in March, on the back of a sexual harassment scandal, Lloyd’s offered another ‘breakthrough’ by introducing women to its governance committee. While the company should be applauded for taking steps in the right direction, it seems a couple decades too late to get up to speed on technology, and giving women more of a presence at the top is closer to a century behind the times. And Lloyd’s isn’t alone – these are industry-wide problems.

Insurance is so resistant to change that by the time it jumps on the bandwagon, it seems like there’s a faster locomotive already waiting in the station Over in the UK, April 2019 marked the second annual deadline for companies with at least 250 employees to disclose gender pay gaps. The results were disappointing, particularly in insurance, where women earn, on average, 22.9% less than men. This is in a country where the Dive In Festival was born and where initiatives like Insuring Women’s Futures exist – what would similar mandatory reporting tell us here in the Australia? Similarly, insurance is awash with initiatives to attract more millennials to the industry. Yet millennials are people born between 1980 and 2000 – so while some may be the innovative, straight-out-of-university thinkers the industry is desperate for, they’re just as likely to be pushing 40. Gen Z – those born from the mid-1990s to the mid-2000s – should be the real target demographic. This is the stumbling block the industry constantly faces – it’s so resistant to change that by the time it jumps on the bandwagon, it seems like there’s a faster locomotive already waiting in the station. This is where customers’ negative perceptions emerge and why attracting a new generation of employees has been so difficult. It’s no longer about producing a blueprint for the future while everybody else moves on – it’s about making changes now. The team at Insurance Business

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EDITORIAL Managing Editor Paul Lucas Editor Bethan Moorcraft Journalists Nicola Middlemiss, Alicja Grzadkowska, Ksenia Stepanova News Writers Lyle Adriano, Terry Gangcuangco, Roxanne Libatique, Gabriel Olano Staff Writers Tom Goodwin, Libby MacDonald, Ryan Smith Copy Editor Clare Alexander

CONTRIBUTORS Lindsey Elias, Brian de Haaff, Aytekin Tank

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

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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 gemma.powell@keymedia.com T +44 20 7193 0935 Insurance Business Asia peter.smith@keymedia.com.au T +61 2 8437 47OO

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UPFRONT

HEAD TO HEAD

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UPFRONT

STATISTICS A DECLINE IN CYBER CONFIDENCE

18%

of companies have no confidence in their ability to understand and assess cyber risks (up from 9% in 2017)

HAS INSURTECH ALREADY PEAKED? The wave of insurtech startups might have crested, according to a new report on the sector from Deloitte, which revealed that more than 200 insurtechs were founded around the world in 2016, marking an eight-year high. But since then, the number of new insurtechs on the scene has fallen significantly, down to just 12 in 2018. Deloitte attributed the drop-off to the fact that insurtechs are increasingly being launched to support incumbent insurers rather than disrupt the industry.

19%

of companies have no confidence in their ability to prevent cyber threats (up from 12% in 2017)

22%

of companies have no confidence in their ability to respond to and recover from a cyber event (up from 15% in 2017)

11%

of companies have a high level of confidence in all three of these areas of cyber resilience

2008

2009

2010

2011

WHO’S GETTING HIT BY RANSOMWARE?

4% 4% 2%

Chubb recently reported an 84% rise in ransomware claims between 2017 and 2018. The latest data, broken down by industry, shows that professional services firms continue to make up the lion’s share of ransomware targets, in part because any business that relies heavily on email presents more opportunities for employees to click on malicious links.

Professional services Healthcare Manufacturing Financial institutions Retail/hospitality Technology

Other Education Entertainment/media Public entities Utility/energy/oil/gas Transportation

2% 1%

6% 30%

2016–2018

14%

5% 17%

1% 6%

3% 13% 2%

2012

30%

2019

3% 23%

11%

Source: 2019 Global Cyber Risk Perception Survey, Marsh and Microsoft Source: Cyber in Focus, Chubb, October 2019

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INSURTECH INVESTMENT STILL GOING STRONG

NUMBER OF INSURTECH STARTUPS LAUNCHED ANNUALLY Commercial insurance Personal insurance

Insurance customer acquisition

Despite the decline in insurtech launches, Deloitte’s data shows that investment in the sector remains robust; 2019 is on pace to eclipse the previous funding record set in 2015. Insurers, however, have only contributed a quarter of the $2.2bn raised so far this year.

Insurance operations P2P insurance

AMOUNT OF INSURTECH FUNDING GLOBALLY

$3bn

$2bn

$1bn

$0 2013

2014

2015

2016

2017

2013 2014 2015 2016 2017 2018 2019 (H1)

2018

Source: Accelerating Insurance Innovation in the Age of Insurtech, Deloitte, 2019

DATA BREACH COSTS CLIMB The global average cost of a data breach to an organisation has hit US$3.92m, up from $3.86m in 2018. That puts the average cost per lost or stolen record at US$150.

$4m

THE FUTURE DRIVERS OF INSURANCE According to insurers surveyed by Capgemini and Efma, customers’ need for an end-to-end solution will be the number-one factor propelling the insurance marketplace of the future. However, most insurtechs believe that new players entering insurance will be the market’s main driver.

$3m

WHAT WILL DRIVE THE INSURANCE MARKETPLACE OF THE FUTURE? Insurers’ view

Insurtechs’ view

100%

$2m

80% 60% 40%

$1m

20%

$3.5m

$3.79m

$4m

$3.62m

$3.86m

$3.92m

2014

2015

2016

2017

2018

2019

Source: Cost of Data Breach Report, IBM Security and Ponemon Institute, 2019

Customer need for an end-to-end risk solution

Reducing operational costs

New players offering insurance services

Closing the New business coverage gap models

Maximising revenue

Source: World Insurtech Report, Capgemini and Efma, 2019

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UPFRONT

HEAD TO HEAD

Is insurtech a business imperative for brokers? Do insurance brokers need to jump on the insurtech bandwagon or risk being left behind?

Colin Fagen

Managing director Blue Zebra Insurance “Insurtech is integral to ensure brokers are able to compete for the future and increase their market share. Insurtech can be used by brokers to improve their results in multiple areas of their business. There are significant opportunities to automate processes using machine learning tools for improved efficiency, enabling more time for marketing and advice. Brokers’ trusted client bases can be built upon through both cross-selling and white-labelling activities, facilitated through the use of Big Data and modern analysis techniques built into core systems. Brokers’ partners of the past are not necessarily their partners for the future.”

Dr Michael Neary

Industry general manager, insurance DXC Technology Australia and New Zealand “Insurtech firms bring fresh thinking and new approaches to insurance, with over 60% of insurtechs focused on product and distribution. If you aren’t working with them, someone else is. In addition to their solutions, they also bring new approaches culturally. The Australian market has a variety of insurtechs whose focus ranges from predictive models and digital claims to mapping and virtual reality, giving a glimpse of the future of insurance. In general, insurtechs are supportive of existing players, rather than disruptive, offering brokers and advisers expanded opportunities.”

Brian Siemsen

Group CEO Claim Central Consolidated “Insurtech can be a broker’s friend or foe. A significant challenge brokers face is remaining relevant in the SME space – how do they reinforce the real value they provide and remove any notion that a direct player can deliver the same to their clients? Innovations like real-time video and collaboration tools, and technologies that connect all stakeholders to their claim in real time, create a great customer experience whilst reinforcing the value the broker delivers. The right insurtech tools can help brokers achieve the above, but they’re not a magic pill – brokers still have to earn the trust of the customer.”

THE NEW GOLD RUSH Globally, insurtech investment set a record of $4.2bn in 2018; by the first half of 2019, investment in the sector was already $3bn, according to international M&A adviser Hampleton Partners. “In this high-growth sector, we have seen more [venture capital] funding being funnelled into larger and higher-valuation deals that have already shown success,” said Hampleton Partners founder Miro Parizek. “Emerging technologies offer solutions to underserved markets, enhance business models or create new markets altogether. For example, insurtechs are taking advantage of global trends in smart home device tech to shift towards proactive risk management for homeowners, rather than reactive risk assessment, in this new disruptive business model.”

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THE MORE AMBITIOUS AUSTRALIA IS, THE MORE IT NEEDS YOU. We believe being a tall poppy isn’t a bad thing. That’s why we’re doing all we can to back ambitious Australian businesses. And to keep them growing, we need the help of ambitious brokers like you.

UPFRONT

NEWS ANALYSIS

Change comes to Lloyd’s In the midst of the many challenges that have plagued the London market, will a new modernisation strategy at Lloyd’s help to revitalise the global centre of insurance?

LONG REGARDED as the centre of the world’s insurance market, London has been hit with its fair share of challenges in recent years. From customers turning to local and emerging markets for insurance and reinsurance solutions, to a looming talent gap that has hit insurance companies in many parts of the world, experts have been warning about the threats to London’s position as the go-to global market for specialty commercial insurance for several years. “What people are concerned about is the fact that firstly, the share of the global insurance market that comes to London is declining,” says Jamie Althorp, managing director for Accenture Financial Services and leader of the company’s London markets

Low interest rates have also become the new normal, which is impacting insurance business in many regions, but certainly in London, where insurers can’t make the same returns on investments as they once did. Yet in spite of these and other challenges, the market continues to have a lot going for it. “London is still a very vibrant insurance market, and that will remain for the time to come because it’s got that reputation, and ultimately, insurance is about trust,” Althorp says. “You have to trust that the organisation you’re insuring with is going to be able to pay in the event of a claim, and London and Lloyd’s provide that trust. Most importantly, you’ve got a critical mass of talent here – brokers, underwriters, lawyers and various

“London is still a very vibrant insurance market, and that will remain for the time to come” Jamie Althorp, Accenture Financial Services and specialty practice. “The global insurance market is growing quicker than the London insurance market, and that would therefore suggest that there’s a high proportion of insurance that is being written outside of London.”

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experts that you need to make a market work. The concern is that those things will erode over time.” The focus on cutting costs hasn’t made brokers’ jobs any easier. There’s been a lot of emphasis on trying to reduce costs within

insurance organisations as they strive for efficiency, and that’s been the case for brokers and underwriters as well. The pace of mergers and acquisitions is likewise putting pressure on everyone in the global insurance value chain. According to Clyde & Co’s Insurance Growth Report, the first half of 2019 saw 222 completed M&A deals worldwide, up from 196 in the second half of 2018. That represents a 13% increase in the volume of transactions – the highest since the first half of 2015. This challenging environment has taken its toll on Lloyd’s, but it’s responding to the obstacles head-on. In the midst of a tough year during which it reported a pre-tax loss of £1bn for 2018 and made headlines for a boys’ club culture punctuated by harassment, Lloyd’s unveiled what it called “a bold new strategy” aimed at transforming the centuriesold exchange’s future. The Future at Lloyd’s

LLOYD’S GWP BY REGION Over the past decade, Asia-Pacific’s share of gross written premium at Lloyd’s has remained fairly stable (9% in 2009 versus 11% today). During the same period, the proportion of GWP from North America has risen from 45% to 51%, while the share from the UK and Europe has shrunk from a combined 36% to 27%. 60%

50%

40%

30%

20%

10%

51%

US and Rest of the Canada Americas

14% UK

13%

11%

Rest of Central Rest Europe Asia and of the Asia-Pacific world Source: Aon/Lloyd’s

initiative brings to the table six key ideas that will guide the company’s response to the challenges it’s facing, as well as help the market capitalise on opportunities and deliver value to customers. The proposed ideas, which are now being

tion, next-generation claims services, and an ecosystem of services that lend market participants a hand in developing new business and providing high-quality services to their clientele. “Implicit in [this strategy] is that they’re

“[Lloyd’s is] being very collaborative in a way that previous iterations of modernisation work … hadn’t been” Christopher Croft, LIIBA rolled out, include a platform for complex risk that enables digital placement, flexible capital that can access diverse risks on the platform, the launch of the Lloyd’s Risk Exchange for the placement of less complex risks, the Syndicate-in-a-Box solu-

being very collaborative in a way that previous iterations of modernisation work at Lloyd’s hadn’t been,” says Christopher Croft, chief executive of the London & International Insurance Brokers’ Association [LIIBA]. “There’s broker representation on the global

advisory board, and at the lower level, we have a lot of our practitioners plugged into the relevant workstreams who are providing feedback, but are also crucially seeing things change as a result of that feedback on occasion – so it’s not just a PR exercise.” And while implementing the sweeping changes won’t be easy, Croft believes the market is on the right track to patching its profitability gaps, along with addressing other issues. “Actually doing it will be a challenge,” he says. “It’s a market without a great reputation for implementing change programs, so regardless of what you might think about the individual workstreams, there’s a big job to do. The sooner they can start demonstrating some delivery momentum, the better, because that’s where those who wish to be sceptical will concentrate their scepticism.”

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UPFRONT

INTELLIGENCE CORPORATE ACQUIRER

TARGET

PRODUCTS COMMENTS

AMA Group

Suncorp’s Capital SMART

Suncorp has sold its smash repair firm for $420m

CFC Underwriting

Solis Security

The acquisition expands CFC’s in-house cyber incident response capabilities

Claims Central Consolidated

Hello Claims

CCC has acquired the motor claims specialist after four years of co-development

First Five Group

RiskLogic and FirstAction

The deal creates Australasia’s largest provider of emergency, crisis management, business continuity, risk management and safety services

Gallagher

Anthony Hodges Consulting

The UK-based firm specialises in pensions and employee benefits

PSC Insurance Group

Paragon International

PSC has acquired the Lloyd’s and London market broker for around $76.3m

Sedgwick

York Risk Services

The deal brings an additional 5,000 employees to the Sedgwick team

Tower

Youi’s New Zealand operations

Tower will pick up Youi’s 34,000 home, contents and motor policies for NZ$13m

Emergence launches excess cyber policy

Specialist underwriter Emergence has unveiled an excess of loss cyber policy, officially adding the once-bespoke solution to its standard offering. With many insurers reluctant to provide limits above $10m, Emergence’s excess of loss policy sits above the primary insurer and only kicks in once the initial cap is reached. The policy mirrors the underlying policy, rather than what the underwriter’s standard cyber policy would usually dictate. As a result, each program remains a bespoke solution that has been considered on its individual merits.

CHU introduces flexible strata product

Suncorp to sell smash repair business

Insurance giant Suncorp has revealed plans to offload the majority of its vehicle repair business in October. The insurer confirmed it had signed a binding agreement to sell 90% of its interest in Capital SMART to AMA Group, a leader in the automotive aftercare market. The final sale figure is set to come in at around $420m. AMA plans to fund the deal in part through a $216m capital-raising plan and is also set to pick up Suncorp’s auto parts supply division, ACM Parts, for a further $20m.

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Strata insurance specialist CHU Underwriting has rebranded its digital business and launched a new product. Flex Insurance, formerly CHUiSaver, now offers an enhanced residential strata insurance cover that can be tailored by the customer and gives them full digital control. “We built Flex to make it easier for customers to get the right cover at the right cost for them,” said CHU CEO Bobby Lehane. “The cover is fully flexible and can be customised to suit the unique needs of the strata building, allowing customers to only pay for what they need.”

PEOPLE Australian flood tech wins financial support

Brisbane-based flood predication platform FloodMapp has secured $1.3m in financial backing amid claims the technology can significantly outperform other competitors in the market. The insurtech’s successful seed funding round gives it the resources necessary to expand into NSW and launch in the US. Purposebuilt by flood engineers, FloodMapp analyses rainfall and river height data, along with digital elevation models, then leverages hydrology, hydraulics and machine learning techniques to produce predictive mapping for impending floods and future hazards.

LMI revamps its RiskCoach platform

Service provider LMI has revamped one of its most popular products, adding new features and improving the usability of its RiskCoach platform. The platform, which just celebrated its 10th year of operation, analyses the insurance risks of thousands of different industries, delivering detailed reports that brokers can share with their clients. “Brokers can now get a highly tailored report for their clients – they just type in the industry, and it builds a nice report illustrating the need for a certain class of insurance,” said LMI CEO Steve Manning.

Integrity launches group insurance for micro-SMEs

Australian life insurer Integrity has rolled out a new combined group insurance product designed for SMEs with as few as five employees. The Five+ product offers combined income and life insurance to businesses with five to 50 employees, along with income benefits for both staff and employers. Integrity MD Chris Powell said the new product will help startups and small companies, which often struggle to attract and retain talent because they can’t offer the same perks and benefits as larger competitors, create a compelling proposition.

NAME

LEAVING

JOINING

NEW POSITION

Avraam Avraam

MS Amlin

CFC Underwriting

Medical malpractice team leader

Gordon Bell

Expert Strata Insurance

CRM Brokers

COO

Paul Bradley

Lockton

Willis Towers Watson

VIC and SA GM for corporate risk and broker offering

Jamie Connor

Aon

Agile Underwriting

Senior underwriter

Tony Dodd

N/A

Global Transport Insurance

CEO

Steve Johnston

N/A

Suncorp

CEO

Patrick Moore

JLT

Lockton

National manager for business development

Ben Neat

Sedgwick

Emjay Insurance Brokers

National claims manager

Adam Rhodes

Origin Insurance Brokers

Willis Towers Watson

WA GM

Kosta Savidakis

Marsh

Willis Towers Watson

Head of workplace risk

Alex Tadmoury

N/A

FM Global

Senior vice president and Asia-Pacific division manager

CFC welcomes medical malpractice underwriter

Specialist insurance provider CFC Underwriting has expanded its medical malpractice team, welcoming Avraam Avraam as team leader. Avraam brings more than 30 years of experience in underwriting and broking to the table. He has focused on the healthcare sector since 1996 and most recently worked as a healthcare class underwriter at MS Amlin. Prior to that, he was an underwriter within QBE’s specialist liability team. “The healthcare sector is constantly evolving, and the risks that practitioners and organisations face are, too,” said practice leader Sharon Brennan. “We’re excited to welcome Avraam to the team as we look to support these organisations.”

FM Global appoints new APAC leader

Insurance giant FM Global has named Alex Tadmoury as its new senior vice president and division manager for AsiaPacific, following the retirement of longtime employee Stefano Tranquillo. Tadmoury, who started with FM Global almost 30 years ago and has held a string of senior positions during his tenure, is set to move from the US to Singapore for the role. Most recently, Tadmoury served as operations senior vice president and manager of compliance and real estate at FM Global’s corporate offices in the US. He has also previously worked as operations senior vice president and Paris operations manager.

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UPFRONT

INSURER UPDATE NEWS BRIEFS Allianz named top insurer in global brand rankings

Allianz has been recognised as the top insurer in the Interbrand Best Global Brands 2019 rankings. The company also saw its brand value increase from US$10.8bn in 2018 to US$12.1bn this year. AXA XL was the only other insurer to make the list. “We are proud to become the number-one insurance brand – a sign of our strategy and transformation in action,” said Serge Raffard, Allianz’s group strategy, marketing and distribution officer. “Our increased brand value reflects a more relevant, consistent global brand.”

IAG offloads its stake in India-based SBI General

IAG has agreed to sell its 26% stake in SBI General Insurance Company, its joint venture with the State Bank of India, to two private equity companies in a deal valued at $640m. Once finalised, the deal will see Napean Opportunities acquire a 16.01% stake in the business and a Warburg Pincus affiliate take a 9.99% interest. “With our sharpened focus on our core territories of Australia and New Zealand, now is the right time for IAG to exit its investment in SBI General,” said CEO Peter Harmer.

FM Global opens electrical hazard testing laboratory

P&C insurer FM Global has committed to pushing the boundaries of electrical hazard testing with the opening of a new $16m testing facility. The Electrical Hazards and Gas Detection Laboratory is designed to test industrial-grade equipment with greater precision, allowing products to be certified as

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explosion-proof, flame-proof or suitable for use in hazardous locations. Features include fortified concrete bunkers that can withstand an explosion from four pounds of TNT, labs that can replicate some of the most corrosive environments on Earth, and a test site that can handle combustible and toxic gases.

Zurich Australia enters new underwriting partnership

Zurich’s Australian arm has entered into an underwriting agency agreement with Pacific Indemnity to expand its general and professional indemnity offering. Zurich has agreed to provide 25% of the capacity for Pacific Indemnity’s professional indemnity policies on a co-insurance arrangement. Robin Cooper-Driver, head of financial lines and casualty at Zurich ANZ, said the agreement allows the insurer to respond to Australia’s “rapidly evolving” general and professional liability markets.

Insurers fear ‘consumer detriment’ from PDDO regulations

The Insurance Council of Australia has submitted proposals to avert negative customer outcomes that it believes could arise from the treatment of general insurance renewals under the Product Design and Distribution Obligations [PDDO] regulations. In the current draft, a policy renewal is treated as a reissuing of the policy, which means an insurer will have to verify that the policyholder is still within its target market determination. “This could lead to significant consumer detriment, given that a large proportion of policyholders will not be contactable by telephone or web portals at any given point in time,” the ICA said in its submission.

In the dark over data breaches According to a new report, SMEs are still largely unsure about their obligations to report data breaches While the Notifiable Data Breaches scheme has been in effect for more than a year and a half, it seems there’s still significant work to be done around education. A new report from Chubb has revealed that huge portions of the market remain unsure about how the legislation impacts them or their organisation. Chubb’s recent SME Cyber Preparedness Report found that just 31% of Australian SMEs are aware of their obligations under the NDB scheme, while 47% said they are not aware. The remaining 21% of SMEs surveyed said they did not fall under the scheme, which mandates that any entity with existing obligations under the Privacy Act must secure personal information. “That figure of 47% is certainly a bit higher than you’d hope, but it didn’t necessarily come as a surprise to us,” says John DePeters, Chubb’s cyber and technology practice leader. “Frankly, it’s a complex issue, and there’s still a lack of awareness.” While DePeters acknowledges that the NDB scheme is complex, he also stresses that it’s vital for the insurance industry to support SMEs in gaining a better understanding of their obligations – otherwise, they risk a string of serious repercussions. “The direct and most serious knock-on effects can be fines and penalties,” he says. “Beyond that, the effects are in the areas of

reputational harm and, in some cases, liabilities to customers – whether that’s consumer customers or even commercial customers.” Regardless of whether personal or corporate information is compromised, liabilities can arise from those parties impacted by cyber incidents, DePeters warns. “Coming back to reputation, it’s integral to any business to be able to effectively respond

“It’s a complex issue, and there’s still a lack of awareness” and maintain their reputation through these incidents, and that’s really a key knock-on risk,” he says. Andrew Taylor, Chubb’s cyber underwriting manager for the Asia-Pacific region, points out that there’s a split between corporate Australia and SMEs when it comes to NDB obligations. “While larger companies seem to understand their obligations, SMEs are less clear,” he says. “This is a huge cause for concern.” According to the report, not only are many SMEs unaware of their obligations, but even those that are aware still harbour uncertainties over the types of data breaches that require notification. “A cyber incident can be catastrophic for a smaller organisation, and this lack of understanding around reporting obligations raises the stakes further,” Taylor says. “While the NDB scheme is receiving more notifications, it is highly likely that many more breaches have gone – and continue to go – unreported.”

Q&A

Mark Nunn Energy underwriter MARKEL INTERNATIONAL

Years in the industry 10 Fast fact Based in Singapore, Nunn specialises in upstream, midstream and downstream energy insurance

Optimistic about energy How does the Australian energy market compare to APAC? Markel views Australia as a more developed market compared to a number of countries in the Asia-Pacific region. As one territory, it shows a very diverse spread of risk, with assets split between onshore/offshore, conventional/non-conventional plays, mega projects, global leading LNG technology and smaller independents. The owners and operators tend to be more sophisticated buyers of insurance, and the advanced regulatory environment makes it one of the best risk environments we operate in. In addition, Australia has some of the most skilled and well-informed retail and wholesale brokers in the world, providing buyers with real choice and variety. Australia has seen significant investment and development over the last five to 10 years, with a number of mega projects now coming online. We have also seen a fair amount of M&A activity over the last few years. Similar to the rest of the Asia-Pacific region, the energy market in Australia is now relatively stable.

Is there anything brokers can do to secure a better underwriting outcome for their clients in the energy space? Information is key in achieving a better underwriting outcome. It’s important that brokers understand their clients’ businesses. If brokers can present detailed information, providing a clear explanation of the risk and the risk controls, underwriters can then differentiate their pricing and coverage more easily. If the client is happy to meet with insurers and tell their own story, this is always well received. In many cases, we find that the value chain from clients to insurers is too extended, with too many intermediaries involved. Bringing buyers closer to insurers will improve the quality and flow of information to assist underwriters in their understanding of accounts. It will also have the knock-on benefit of reducing cost and expediting claims management.

What are some emerging risks in the energy space that brokers and their clients should be aware of? Renewable energy is still an emerging risk and sector in the region. There’s an increasing number of renewable energy projects coming on stream, and some of the large Asian national oil companies are now looking to mirror the international oil companies in preparing a renewable strategy for the future. Despite losing money for a number of years, the renewable energy insurance market continues to grow. Markel is currently in the process of building our renewable energy underwriting team and developing our product offering. As underwriting profits are squeezed, we are seeing insurers withdraw from certain lines of business. There have also been examples of insurers losing their ratings or syndicates being put into runoff. It’s important that clients and brokers are careful in their selection of risk partners and ensure that they are buying from secure, well-rated markets with strong claims-paying capability.

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UPFRONT

UNDERWRITING AGENCIES UPDATE

PI is essential amid the construction crisis MECON’s CEO explains why builders who don’t have professional indemnity cover face serious risks

house collapses during a storm. The owner claims damages of $10m against the builder, but the builder feels they are not at fault because they had subcontracted a structural engineer for the roof’s design. “Without PI cover, the builder’s only options are to have the engineer accept responsibility for the issue or take a subrogated claim against the engineer and hope for a successful outcome that will reimburse the cost of their defence,” Ross says. “With PI in place, the builder’s policy will cover his defence costs, and if the engineer has ceased trading, the policy will cover the

“With PI in place, the builder’s policy will cover his defence costs”

Some 45% of building failures are a result of design issues, according to MECON Insurance CEO Glenn Ross, but defective design risks aren’t fully catered for in the material damage and public liability covers taken out by most builders. Without professional indemnity cover, builders are left exposed to litigation for defective design, as well as the vicarious liability of any subcontractors and consultants. “When an owner commissions a builder, they will usually have a relationship with that

NEWS BRIEFS

builder,” Ross explains. “They will not necessarily have any relationship with the subcontractors or consultants. So, when there is an issue with the work of the subcontractors or consultants, the builder is the obvious target for an owner. The situation is made worse for the builder when the subcontractor or consultant denies responsibility or is no longer trading – or both.” As an example, Ross describes a scenario in which the roof of a newly constructed ware-

CHU CEO recognized among Australia’s best

Bobby Lehane, CEO of strata insurer CHU, has been named among the finalists in The CEO Magazine’s Executive of the Year Awards. Lehane, who has been in the top job at CHU since 2015, is in the running to win the highly coveted CEO of the Year Award. “My time at CHU has been hugely satisfying and affirming,” Lehane said. “I have a chairman who understands how I tick and respects that, allowing me to be the best that I can be ... I am extremely fortunate to work with an amazing group of people.”

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builder for the damages which he would otherwise have been liable for without recourse.” In an effort to address this common coverage gap, MECON has partnered with Agile Underwriting on a new professional indemnity product for builders, which Ross says offers protection against legal liability for both actual and alleged breaches when builders provide professional advice or engage a contractor. Builders can also tailor the policy by choosing from a range of add-on options, including cover for unforeseen pollution events, claims brought by employees, proportionate liability, novated designs, employee dishonesty and breach of environmental professional services.

Couple jailed over their roles in defrauding DUAL

Josie and Alvaro Gonzalez, the Melbourne-based couple convicted of scamming DUAL out of $17.4m in fake legal fees, each received lengthy jail sentences in October. Josie Gonzalez, a former claims manager at DUAL, was identified as the mastermind and main perpetrator, and was handed a nine-and-a-half-year sentence. Her husband was ordered to serve at least five years of a seven-and-a-half-year sentence. The pair sent more than 428 false legal invoices to DUAL between March 2011 and June 2013, claiming payment for legal fees.

Q&A

Leeanne Lynch

Overcoming challenges in the not-for-profit sector

Senior underwriter COMMUNITY UNDERWRITING

Years in the industry 15 Fast fact Lynch joined Community Underwriting in October from Protectsure, where she was instrumental in creating underwriting manuals for the team and training fellow colleagues

What are some of the unique underwriting challenges within the not-for-profit sector? Not-for-profit clients vary greatly, with a wide and diverse range of services provided by the large number of charities registered in Australia. Many charities present unique risk exposures, as they offer multiple diverse activities to serve their communities. Because funding is limited, this really puts a strain on the organisation, and they often don’t have the resources to run the charities like a corporate enterprise would.

Are there any interesting trends or emerging risks you’ve observed? I believe that an emerging and continuing risk that not-for-profits face is how to manage their operations in this environment of a lack of funding and resourcing. Government funding to charities has reduced and is regularly under scrutiny. A lot of charities rely on the donations of funds and time by ordinary individuals. With the cost of living and whole families needing to work, people don’t have as much time or money to give to charities. Increasingly, charities must do more with less, while often the demands for services and compliance and red tape have increased.

How do you build and maintain strong relationships with brokers? I believe building and maintaining strong relationships with brokers is critical by providing solution-oriented services. Sharing underwriting information and ideas

Industry mourns loss of former underwriter

Specialist Underwriting Agencies, along with the rest of the industry, mourned the passing of retired underwriter Denis John Morrissey in October. “Denis was a great bloke, a fantastic and solid friend, a fun work companion, and someone who contributed greatly to the insurance industry and his community. He will be greatly missed,” said SUA director John Iles, who added that Morrissey was passionate about business interruption and would spend hours with brokers discussing how they could manage their clients’ exposure.

with brokers is a must. Educating brokers in your policy wordings and offerings assists them greatly, as there are so many wordings out in the market that are not tailored to respond to the needs of their NFP clients. If you can highlight the points the brokers need to be aware of, it makes their life a lot easier. You then become more of a trusted advisor to the broker rather than just being an underwriter.

What advice would you give brokers who want to work more effectively with their underwriters? If brokers can provide underwriters with enough quality underwriting information, this really assists the underwriter with not having to do further research on the client to find out full business activities. When quality submissions are received, it saves a lot of time going back and forward with the broker to gain enough information on the specific exposures. This then makes it easier for the broker to receive quote requests in a timely fashion.

Do you have any long- or short-term goals you’d like to achieve while at Community? The goals we would like to achieve as a team are to grow the business and to enable CUW to have its own inhouse claims service, risk management services and an extended product offering. This will allow us to be able to grow our bespoke business and the level of service for which the company has already gained a reputation in the insurance industry.

NTI announces reshuffle of top executives

Specialist insurer NTI has announced new roles for executives Kerrie Challenor and Janelle Greene. Challenor, formerly GM of people and capability, became NTI’s chief people and operations officer, taking on additional responsibilities under the claims and underwriting operations. Greene, formerly GM of strategic delivery and operations, stepped into the role of chief customer officer, where she will develop and execute strategies driven by data and customer insights, while also leading a multi-disciplinary team.

360 Aviation takes over Swiss Re aviation portfolio

Underwriter 360 Aviation has secured the rights to review Swiss Re Corporate Solutions’ expiring general aviation business. Swiss Re Corporate Solutions had previously carried out a review of its Australian aviation operations as part of efforts to improve profitability, sparking concerns about a lack of capacity in the market. Now, 360 Aviation has reached an agreement to review expiring risks due on or after 1 November. “This is a very exciting step,” said 360 Aviation executive director Craig Davie.

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UPFRONT

OPINION

GOT AN OPINION THAT COUNTS? Email ibo@keymedia.com.au

A standout brand Cutting through the noise in a flooded market is key, writes Lindsey Elias, and it starts with your brand BROKERAGE LIFE is busy, and there often isn’t time to step back and evaluate your overall brand. But if you think your branding doesn’t directly impact your success, you’re wrong. Branding is the first thing prospective customers see. It provides the first clues about who you are. More importantly, it tells people what you’re capable of doing for them – or it should. Observers form initial impressions around the way they perceive your brokerage’s brand – and everyone knows that you get just one chance to make a first impression. Insurance is a flooded market, which makes it difficult for a brokerage to stand out. When branding your brokerage, you need to keep two key goals in mind: being unique and disruptive in a busy marketplace, and being memorable to your target audience. Effective branding has to start from within. It isn’t just about your brokerage’s name and tagline or what typeface you use on advertisements. It’s about your people. Your employees each bring unique talents and perspectives to the table, which is wonderful and important. When it comes to representing your brand, however, it’s essential that everyone be on the same page. This creates a strong and consistent presence. All who reach out to your brokerage should leave with the same impression. They should feel the company culture and be immersed in it. This can only occur if all employees have a firm understanding of your mission, goals and point of difference. Truly, they need to have more than an understanding – they need a complete buy-in, agreement with and

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passion for all that your brokerage represents. This is what will fuel success and grow your book of business. It’s true that something as simple as your logo’s colour can boost overall brand recognition by 80%. Imagine incorporating that power of perception into the culture your employees represent. Your brand and the way you each live it should be as carefully and

they should be. Consider your future customer base, too: millennials. The way that brands represent themselves online almost completely drives the loyalty of this group. They also care more about giving back to their communities than previous generations. Does your brokerage have a strong online presence? What does it say about you? Are your employees active on social media? Do they volunteer? Does your organisation sponsor any local events? These are all important things to consider. In your quest to gain a larger customer base, it’s important to avoid neglecting your most important stakeholders: the brokers themselves. You likely spend a majority of your time educating consumers on your product offerings and your brokerage’s brand – but this education needs to be conducted equally from the inside. Only employees who are encouraged, engaged and well informed can contribute their very best. For this reason, your brokerage’s external and internal

“Effective branding has to start from within. It isn’t just about your brokerage’s name and tagline or what typeface you use on advertisements. It’s about your people” strategically considered as the accounts you choose to underwrite. Your employees – from those just starting out to senior managers – are your brand builders. They represent the values, ethics, commitments and qualities of your brokerage. They establish credibility and help to build and foster important relationships. They determine the quality of customer service that you’re able to provide. According to Salesforce, 80% of consumers named the authenticity of a brand as their largest influencer. This is a powerful starting point to consider. Are your employees focused on being authentic? In every space where they interact with prospects – whether on social media, over the phone or in person –

brand initiatives are deeply connected and dependent upon each other. Your brokerage has a purpose and exists for a reason. Communicating that internally and building company culture from the inside out will help your employees become your strongest brand ambassadors. Essentially, these important individuals keep your brand alive. Empowering them to best represent it will drive your reputation – and ultimately your bottom line. Lindsey Elias is the content marketing manager at Glatfelter Insurance Group, where she uses specialised marketing initiatives to encourage best practices and support the success of niche insurance programs and brokers.

UPFRONT

OPINION

GOT AN OPINION THAT COUNTS? Email ibo@keymedia.com.au

The team at Hostsure would like to thank you for your support. We are thrilled to receive the the Bronze medal for Not-For-Profit in the 2019 Insurance Business Australia - Brokers on Underwriting Agencies Survey, reflecting the trust our broker network has in our extensive knowledge of the Australian market. At Hostsure, we strive to offer our brokers tailored, innovative insurance solutions which we design to cater to ever-changing market conditions within the hospitality, leisure, community care, security and property sectors.

Contact us today at (02) 9307 6600 or visit hostsure.com.au Hostsure Underwriting Agency Pty Ltd (ABN: 44 108 154 829, AFSL: 268726). Products underwritten by certain underwriters at Lloyd's. www.insurancebusinessonline.com.au

PEOPLE

EXPERT SPOTLIGHT

LIABILITY: HDI GLOBAL’S HEART AND SOUL Insurance Business sat down with HDI Global’s Alex Tarantino and Stefan Feldmann to discover more about the insurer’s long industrial legacy and what it means for liability insurance into the future

THOUGH IT’S a relatively new player in the Australian market, HDI Global has deep roots in Germany, the heartland of Europe’s industrial businesses. Born in Hannover in 1903 as a mutual insurer for the German iron and steel industries, HDI has always worked to remain close to its roots even as it has expanded around the world. It’s a rich heritage, and one that managing director Stefan Feldmann strives to uphold. Restarting the HDI Global brand (formerly Gerling) after he joined the group in 2010, he has helped the company achieve significant growth over the past nine years. Closeness to industry is an ethos the company retains to this day, Feldmann says, and something that sets it apart from its competitors. “We are a company which works very closely with clients,” he says. “We are created by industry, for industry, so we tend to build quite a deep dialogue with our valued clients. When we talk to big Australian and New Zealand companies, they like our closeness to the industry.” Alex Tarantino, regional underwriting manager for liability, is a more recent arrival at HDI, having joined the company in September, but he still has the better part of two decades in the industry under his belt. Originally hailing from the UK, he arrived in Australia several years ago from Canada,

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where he successfully established another major insurer’s local liability business. “It’s the culture that attracted me to work here in the first place,” Tarantino says. “There’s a willingness to actively see how you can help with new challenges and engage with the client and broker more effectively.” Today, both Feldmann and Tarantino are working to innovate in the current market

prospect for Australian clients and brokers due to its unique mix of strong legacy and ability to adapt quickly to clients’ needs. “Australia is quite a mature audience for insurance,” Tarantino says, “so the people we work with tend to like our setup – the legacy of the company is appealing, and they want us to help them along on their journey.” Feldmann agrees, noting that many

“We are created by industry, for industry, so we tend to build quite a deep dialogue with our valued clients. When we talk to big Australian and New Zealand companies, they like our closeness to the industry” Stefan Feldmann, HDI Global while also leveraging the strengths of the existing organisation. It’s a marker of an entrepreneurial spirit that dates back to the origins of the company. To this end, HDI opened a Melbourne office in 2015, followed by expansions to Brisbane in 2016 and Perth in 2018. Feldmann also looks after the regional ASEAN office in Singapore.

Bringing the past and present together Tarantino believes HDI presents an attractive

businesses find comfort in partnering with a long-standing European organisation that has a long-term commitment to the Australasian market. “Stability is also key,” Tarantino says. “Liability is in an unusual place at the moment, in part due to amalgamations and withdrawals in the local market, along with London, too. Businesses want a provider who has dealt with situations like this before.” Both Feldmann and Tarantino are also

PROFILE

Name: Alex Tarantino Title: Regional underwriting manager, liability, Australasia and ASEAN Company: HDI Global

Name: Stefan Feldmann Title: Managing director and regional head, ASEAN and Australasia Company: HDI Global

Based in: Sydney

Years in the industry: 18

Years in the industry: 30+

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PEOPLE

EXPERT SPOTLIGHT

keenly aware of the importance of working with clients to manage risk. HDI has a large team of risk engineers in Australia, all of whom are working to stay on top of the shifting state of the industry. The role is hands-on, and new recruits receive state-of-the-art training in Germany to equip them with both technical skills and a wider appreciation of the company’s culture. HDI also puts a heavy emphasis on having strong lead underwriters in the team. “We’ve built our credibility with clients and brokers via underwriters who are considered leaders in their field – technically strong and competent, with a sound financial background with high integrity and interpersonal skills,”

“You need to provide underwriting solutions and a high level of service, but you also need to provide confidence that claims will be managed efficiently and deliver the best outcome for everyone.”

Preparing for the future Looking to the future, it’s evident that technology and digitalisation will continue to have a powerful influence on the entire insurance industry. The most obvious point of contact is data collection, which can help provide better insights into past trends and future predictions. “We think it’s going to prove particularly valuable in worker-to-worker claims,” Tarantino says. “We want to work with

“You’ve got to have a complete understanding of the client’s business and exposures. If complex claims arise, you’ve also got to have the proposition and capability to handle them”

HDI GLOBAL AT A GLANCE

HEADQUARTERS Hannover, Germany

YEAR FOUNDED 1903, as a liability mutual

PARENT COMPANY Talanx

Alex Tarantino, HDI Global Feldmann says. “Other people want to be part of that, so it hasn’t been too difficult to attract the people we want.” For an organisation that doesn’t shy away from the heavier end of liability business, having an effective claims team in place is also essential. “You’ve got to have a complete understanding of the client’s business and exposures,” Tarantino says. “If complex claims arise, you’ve also got to have the proposition and capability to handle them.” Accordingly, HDI Global has recently set about attracting the best in the market for liability claims handling, with the aim of complementing its front-end underwriting capabilities. “From a customer perspective, the true test of any insurer is the confidence they provide around the claims process,” Tarantino says.

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customers who are committed to zero harm and have proven risk management procedures in place. Being able to draw on past and current data will help us assist those clients.” Both Tarantino and Feldmann also note that international program capabilities will be a key focus for HDI in 2020. Given the withdrawal of so many liability insurers from the Australian market, many ASX-listed companies will be looking for new insurers, and they’re quietly confident that there are good things on the horizon. The group’s long tradition of providing tailored solutions for liability business marks HDI as a premier provider of third-party liability insurance in the region. “Liability insurance is an essential risk transfer solution for every corporation in Australia and New Zealand,” Feldmann says. “For a liability mutual like us, it’s core to our business.”

MAJORITY SHAREHOLDER Liability Association of German Industry

YEAR ESTABLISHED IN AUSTRALIA 2010, followed by a Melbourne office in 2015, Brisbane in 2016 and Perth in 2018

GLOBAL REACH Serves clients in more than 150 countries

> HDI Global SE > Liability

WE ARE PROTECTORS. Our liability solutions protect you against devastating claims.

www.hdi.global

SPECIAL SPECIALREPORT REPORT

BROKERS BROKERSON ONUNDERWRITING UNDERWRITINGAGENCIES AGENCIES

BROKERS ON UNDERWRITING AGENCIES 2019 For the fifth year in a row, brokers name the best underwriting agencies in Australia

FOR THE last five years, Insurance Business has reached out to readers to discover Australia’s standout underwriting agencies and find out what distinguishes these agencies as leaders in their field. IB gave brokers the chance to provide feedback on agencies across 11 product categories, from construction and cyber to product liability and professional indemnity. In addition to giving brokers the chance to name the best businesses, we also asked them to single out their favourite products – and importantly, tell us what’s most important to them in their dealings with underwriting agencies. What brokers are looking for in an underwriting agency has remained remarkably

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consistent over the years. For every year since the survey’s inception, brokers have ranked coverage as the most important aspect of their relationship with underwriting agencies. Broker support retained its second-place spot from 2018, an indication of both brokers’ commitment to continual learning and their need for underwriters to help them get to grips with new subject areas. Turnaround times and service levels, meanwhile, tend to rotate in importance from year to year, but are always at the top end of brokers’ priorities. By contrast, commission structures – which have routinely attracted the most criticism from those outside the industry – have consistently

remained at the bottom of the priority list. It’s a telling result, and one that’s perhaps indicative of the disconnect between those who work within the broking industry and those outside of it. It’s these sorts of stereotypes that this survey intends to break down. Since its inception, IB has maintained a commitment to recognise how underwriting agencies contribute to the Australian insurance market. The Brokers on Underwriting Agencies survey is our way of recognising those within the industry who have delivered exceptional service to brokers and products to clients. Read on to discover which underwriting agencies distinguished themselves among their peers in 2019.

SPECIAL REPORT

BROKERS ON UNDERWRITING AGENCIES METHODOLOGY

$3.5bn

Approximate GWP of the underwriting agency sector in Australia

2,700

Approximate number of people employed by underwriting agencies in Australia

Using our online newsletter and social media, Insurance Business invited brokers to complete a survey, asking them to name the top three underwriting agencies in 11 product categories. The categories chosen were those deemed by IB to have the most significant number of market participants in the Australian agency space. Respondents were also given an opportunity to name the best insurance product provided by an agency in the last 12 months. Responses to that free-form question were used to determine the medal winners in the Brokersâ&#x20AC;&#x2122; Pick category. Additionally, brokers were asked to share their thoughts on which aspects of their dealings with underwriting agencies were most important to them and what agencies can do to win more of their business in the next year.

WHATâ&#x20AC;&#x2122;S MOST IMPORTANT TO BROKERS WHEN CHOOSING AN UNDERWRITING AGENCY? 2019

2018

2017 4.63 4.61 4.68

Coverage Broker support

4.55 4.49 4.49

Claims turnaround times

4.53 4.47 4.54 4.48 4.47 4.50

Overall service levels

4.46 4.42 4.54

New business turnaround times

4.24 4.27 4.30

Premium stability 3.59 3.52 3.56

Commission structures 1 Not important

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3 Somewhat important

5 Very important

SPECIAL REPORT

BROKERS ON UNDERWRITING AGENCIES HOW UNDERWRITING AGENCIES CAN MAXIMISE BROKER BUSINESS IB asked brokers how underwriting agencies can win more of their business in the next year. Here’s what they had to say:

BROKERS ON PRODUCTS IB asked brokers whether underwriting agencies’ product ranges and pricing had improved or worsened over the last year. While comments remained positive overall, the data shows that broker satisfaction has taken a slight downturn this year.

Keep doing what they are doing – offering faster and better service, not relying on a computer to give them an answer, and actually looking at the risk

More lines of cover are now being offered than 12 months ago Agencies are trying to provide a more encompassing offering to suit the market

They need to be flexible and consistent with their underwriting

They have adapted to market forces and are assisting in providing solutions where other agencies in this sector won’t

Education on claims and how this affects the risk attitude of insurers to assist us in educating our clients on what to be aware of We are using more underwriting agencies every day. If there was more capacity and appetite for risks, we would use them over the main insurers Competitive premiums, easy-to-complete forms and faster turnaround times, especially in claims

It has become better, as we are more familiar with the appetites Have products and pricing improved or worsened? Improved significantly

Improved

No difference

4% 29% 27%

4% 8%

2018

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44% 33%

13%

THIS YEAR’S BEST RESPONSE

By being open to learning more about our specific client groups and their particulars so that they can consider the risks in an informed way, rather than just rejecting them outright if they are not cookie-cutter risks

Worsened significantly

34%

2019

Providing quality products with reliable expertise

IB offered a set of Bose QuietComfort 35 II wireless over-ear headphones to the respondent who delivered the best answer to this question. This year’s winner said:

Worsened

2017

41% 37%

13%

2016 0% 0%

42% 36%

8% 10%

20%

30%

40%

50%

BEST UNDERWRITING AGENCY FOR ACCIDENT & SICKNESS INSURANCE IN AUSTRALIA.

It’s Personal

Some comments from surveyed brokers

Protecting Your Clients AFA Accident and Sickness

“I have access (including after hours) to technically solid underwriters, apply a business lens across all decisions, offer sustainable solutions, innovative approach and a partnership relationship with me and my client”

Working with brokers for over thirty years to protect your clients’ greatest asset, their income.

“Innovative cover and great service”

Because when there is an accident or illness that’s the insurance that pays for everything else.

“Takes the pressure off the client at their time of need” “Fantastic service, competitive pricing, and easy online system” “AFA are relationship driven, providing first class service in underwriting and claims. AFA are willing able to write bespoke endorsements to cover provided”

Find out how we can protect your clients Visit www.afainsurance.com Call 1300 728 997, or Call Anthony Porter, National Broker Manager, on 02 9259 8222

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SPECIAL REPORT

BROKERS ON UNDERWRITING AGENCIES ACCIDENT AND HEALTH FAST FACT

AFA AHI INSURANCE The accident and health space is heavily dominated by direct business, so it takes something special for an underwriting agency to stand out to brokers. All of this year’s medal winners have done exactly that – and all of them for multiple years. AHI continued its dominant streak in 2019, taking out the top spot for the fifth year

DUAL AUSTRALIA

in a row – a clear testament to the company’s favour among brokers in this space. “Excellent product, continually enhanced. Service level, including claims, is outstanding,” one broker said of AHI. AFA retained silver, also for the fifth year in a row. One broker highlighted AFA’s “price,

AHI and AFA have taken the gold and silver medals in this category every year since the Brokers on Underwriting Agencies survey was launched

service and ease of access”, while another pointed to the agency’s “fantastic service, competitive pricing and easy online system”. DUAL Australia rounded out this year’s accident and health medal winners by taking the bronze, making a return to the list after a previous appearance in 2017.

CONSTRUCTION FAST FACT Construction is the third largest industry in Australia, employing 9% of all workers in the country ATC INSURANCE SOLUTIONS

SURA MECON INSURANCE

MECON Insurance made it five for five, taking home the gold in the construction category as it has done every year since IB’s Brokers on Underwriting Agencies survey began. Brokers cited “broad coverage with prompt, helpful responses and very competitive premiums” as key reasons for the company’s positive reputation. Another noted “an innovative policy

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wording with the option to choose clientspecific additional covers” and “excellent claims service” as reasons for their vote. ATC Insurance Solutions climbed to silver in 2019 after debuting on the list with a bronze medal last year. The company has certainly made a mark among brokers: “With the updated wording and coverage, the enhance-

ments and clarifications provide greater certainty for clients,” one broker said, while another echoed these sentiments, praising ATC’s “competitive pricing and coverage”. SURA remained on the list for another year, this time securing bronze thanks to the agency’s continued commitment to being broker-friendly.

SPECIAL REPORT

BROKERS ON UNDERWRITING AGENCIES CYBER & INFORMATION DIRECTORS & TECHNOLOGY OFFICERS

DUAL AUSTRALIA

EMERGENCE INSURANCE GROUP

BROOKLYN UNDERWRITING

DUAL AUSTRALIA

SOLUTION UNDERWRITING

For the second year in a row, Emergence Insurance Group took gold in the cyber and information technology category, and its Cyber Event Protection policy made the list as a Brokers’ Pick. It’s clear that the company has not only successfully forged relationships with brokers, but worked hard to retain them, too. “Good cover and value to client,” one broker said of Emergence, while another highlighted the company’s after-sales support and broker education. “They are providing some well-informed training webinars to help us to know more about this line of business,” the broker

Currently, there are more than 650 individual legislative provisions in Australia that can attract personal liability for directors, officers and managers of corporations. Given the increasingly litigious nature of Australian society – and the additional regulations coming into play across any number of industries – specialised D&O insurance is becoming more and more essential in the Australian market. Emerging as the broker favourite for the fifth year in a row, DUAL Australia has shown itself to be a powerful force within the space.

“Emergence has gone out of its way to explain the covers and possible client increase and overall taking steps to assist brokers”

Given the increasingly litigious nature of Australian society, specialised D&O insurance is becoming more and more essential in the Australian market

said. Another noted that “Emergence has gone out of its way to explain the covers and possible client increase and overall taking steps to assist brokers”. DUAL Australia earned its second silver medal in as many years and garnered praise from brokers for its “ease of transaction and variety of product”. Brooklyn Underwriting retained the bronze, commended for its “flexible underwriting, backed up by a quality product.”

Given that DUAL won six medals across various categories this year, the company clearly has been successful at forging relationships with brokers across a broad variety of industries. The other two spots in this category were taken by newcomers – Brooklyn Underwriting won silver, while Solution Underwriting earned bronze – both of whom have demonstrated an ability to engage with brokers and offer quality products in a challenging field.

FAST FACT The average cost of cybercrime to an Australian business is around $276,000

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FAST FACT D&O insurance was first offered by Lloyd’s of London in the 1930s

SPECIAL REPORT

BROKERS ON UNDERWRITING AGENCIES MANAGEMENT LIABILITY FAST FACT

BROOKLYN UNDERWRITING

DUAL AUSTRALIA

Management liability insurance serves the valuable function of protecting companies and their staff from the exposures that naturally arise as the result of running a business. While often underappreciated by the average layperson, management liability fulfils an invaluable function for the wider business community, particularly given the increasing

SPECIALIST UNDERWRITING AGENCIES

incidences of litigation in Australia. DUAL Australia managed to secure its fifth consecutive gold in this category in 2019. Brokers raved about DUAL’s “comprehensive cover on multiple fronts”, along with its “competitive prices and sub-limits”. Another broker praised the company for the “ease of transaction – able to get an indication for

Covering a broader range of companies than D&O, management liability is designed to cater for smaller businesses beyond large corporates

many occupations, normally without having to refer the risk”. Brooklyn Underwriting claimed silver for the second year in a row after debuting in the category in 2018. And Specialist Underwriting Agencies made it onto the medal podium for the first time this year, securing bronze and marking itself out as a company to watch.

NOT-FOR-PROFIT FAST FACT There are more than 57,000 registered charities in Australia DUAL AUSTRALIA

COMMUNITY UNDERWRITING AGENCY

Not-for-profit policies occupy an interesting space in the Australian insurance landscape. The potential scope of exposures is incredibly broad, depending on the nature of the organisation, and good coverage is crucial, as not-forprofit organisations are of key importance to wider Australian society. Underwriting agencies that offer this variety of insurance provide a valuable service to the wider community.

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HOSTSURE UNDERWRITING AGENCY

Community Underwriting Agency retained the top spot in this category for the fourth year in a row. Brokers highlighted a variety of benefits they receive from the agency, including a “tailored product with broad coverage, excellent service and competitive premium for the NFP sector”. Another broker praised Community for “quick turnaround, understand[ing] the business and good pricing”.

DUAL Australia took out silver, also for the fourth year in a row. The company’s continued presence on the list is a testament not only to its work in the not-for-profit space, but the broad range of services it provides across many different industries. The sole new entrant on the medal podium this year was Hostsure Underwriting Agency, which claimed bronze.

to the brokers across Australia who have again voted us the best underwriting agency to provide solutions to their Not for Profit clients. Your ongoing support helps us make a real difference to the way that insurance is provided to the NFP sector.

SPECIAL REPORT

BROKERS ON UNDERWRITING AGENCIES PRODUCT LIABILITY

HIGH STREET UNDERWRITING AGENCY

BROOKLYN UNDERWRITING

PROFESSIONAL INDEMNITY

MIRAMAR UNDERWRITING AGENCY

Product liability carries a variety of unique and sensitive exposures. Brokers working within this space must be aware of their clients’ specific needs and equip them with the necessary policies and tools to cover them if an adverse event occurs. Brooklyn Underwriting made an impressive debut on this year’s list, claiming gold. It’s indicative of the company’s strong product and broker support, and a positive indicator of its future ventures.

Brooklyn Underwriting’s gold medal is indicative of the company’s strong product and a positive indicator of its future ventures High Street Underwriting marked its fifth appearance on the list, this year collecting the silver medal; its consistent appearance in this category is a testament to its longevity in the field. Miramar also put in a strong show for 2019, making its third appearance on the list and taking home the bronze medal.

FAST FACT Fifty-four class-action lawsuits were filed in Australia during the 2018–19 financial year, compared to just 18 in the 2012–13 financial year

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SOLUTION UNDERWRITING

DUAL AUSTRALIA

PI DIRECT INSURANCE BROKERS

Though traditionally associated with high-end professions, professional indemnity insurance has grown to encompass a far broader range of industries – even social media influencers can now gain coverage, a far cry from the traditional categories of doctors, lawyers, architects and engineers. It’s an indication of the changing needs of businesses and the increasing necessity for them to protect themselves against unexpected situations. Professional indemnity also requires professional service, so it’s no surprise to see some familiar names returning to the medal podium in this category in 2019. DUAL Australia again claimed the gold, winning praise from brokers for its “simple and straightforward product, with a solid policy wording” and “competitive terms and broad policy conditions, along with great customer service”. Solution Underwriting Agency retained silver for the third year in a row after debuting at bronze in 2016. “Great rates, quick turnaround and extremely responsive,” one broker said of Solution, while another highlighted the company’s “competitive premiums and quick responses”. Closing out the category this year was PI Direct Insurance Brokers, which claimed bronze.

FAST FACT DUAL Australia has taken gold in this category every year since the Brokers on Underwriting Agencies survey began in 2015

MAKING YOU THE EXPERT

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SPECIAL REPORT

BROKERS ON UNDERWRITING AGENCIES PROPERTY FAST FACT

MIRAMAR UNDERWRITING AGENCY

AXIS UNDERWRITING SERVICES

Property insurance is a broad field, covering a mix of commercial and private property – and accordingly, it requires a specialised touch. Add to this the complexities caused by the burgeoning popularity of lodging services throughout the country, and it’s clear that brokers must work closely with both underwriters and clients to avoid any coverage

PEN UNDERWRITING

gaps or underinsurance. For the fourth year in a row – every year since the category was introduced – the gold medal went to Axis Underwriting, which was commended by brokers for its “ability to provide support and service where others cannot” and “great turnaround times”. Miramar Underwriting Agency took out

Property insurance needs to be periodically reassessed to ensure that the insured amount is in line with the property’s current value

the silver medal, its third in this year’s Brokers on Underwriting Agencies survey. Making its fourth appearance in this category in as many years, Pen Underwriting also distinguished itself as an underwriter of note, taking the bronze medal. “The service and turnaround times are excellent,” one broker said of Pen.

PUBLIC LIABILITY FAST FACT

BROOKLYN UNDERWRITING

HIGH STREET UNDERWRITING AGENCY

Public liability is a critical consideration for just about any business that interacts with the general public. It’s about keeping consumers and the business safe, and it serves as a valuable tool in the event that something does go wrong. Accordingly, clients are keen to have the best on their side – and they look to brokers for advice on where they can find it.

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MIRAMAR UNDERWRITING AGENCY

High Street Underwriting Agency has spent five consecutive years at the top of this category, winning gold again in 2019. “HSUA provides out-of-the-box thinking and solutions for all PL risks. The service and turnaround times for transactions are second to none!” one broker raved. Brooklyn Underwriting also marked its

Public liability policies can span a broad range of exposures, including libel and slander, dishonesty, loss of documents, good Samaritan acts, PR expenses, and bodily injury

third year as part of the winners’ circle, reclaiming silver in 2019 after falling to bronze in 2018. One broker complimented Brooklyn for its “broad cover and extensions at competitive rates”. Miramar Underwriting Agency rounded out the top three with bronze, making its debut on the podium this year.

Celebrating 20 years! What a great gift to receive in our 20th year! Axis Underwriting are thrilled to be awarded the Gold Medal for Property for the fourth year in a row. We couldnâ&#x20AC;&#x2122;t achieve this success without your support. Thank you for being a part of our story - we canâ&#x20AC;&#x2122;t wait to see what the next 20 years bring!

Melbourne

T: (03) 8660 7000

E: info@axisunderwriting.com.au

Sydney

T: (02) 9216 7200

E: infonsw@axisunderwriting.com.au

Brisbane

T: (07) 3007 3600

E: infobris@axisunderwriting.com.au

Residential Strata T: (03) 8660 7077

E: resi@axisunderwriting.com.au www.insurancebusinessonline.com.au

SPECIAL REPORT

BROKERS ON UNDERWRITING AGENCIES STRATA COVER FAST FACT

STRATA UNIT UNDERWRITERS

CHU UNDERWRITING AGENCIES

Strata is a hot issue in the Australian insurance market at the moment – issues such as rising premiums, climate change and building regulations are affecting the current state of the industry. Accordingly, brokers need to have access to insurers that they know their clients will be able to depend on in the event of a crisis. For the fourth year in a row, CHU Under-

CHU Underwriting Agencies’ products have been named a Brokers’ Pick by IB readers for four years in a row

STRATA COMMUNITY INSURANCE

writing Agencies topped the list of most dependable strata-focused underwriting agencies. One broker praised CHU’s “competitive premiums, premium stability, coverage and claims”, while another said “the service and turnaround time are second to none”. Strata Unit Underwriters ascended to take out silver in this year’s survey, moving a place up from bronze in 2018. The company’s

“quick responses” and “willingness to discuss and negotiate risks”, along with a “genuine desire to assist brokers”, were all highlighted by respondents. Strata Community Insurance also retained a spot on the medal podium, this year claiming bronze. The agency was praised for “work[ing] with brokers to get the best possible coverage and result for the clients”.

BROKERS ON TURNAROUND TIMES

Have turnaround times improved or worsened over the last year? Improved significantly Improved No difference Worsened Worsened significantly

15%

16%

2018

33%

3% 9%

2019

36%

35% 36%

IB asked brokers whether underwriting agencies’ turnaround times for claims and new business quotes had improved or worsened during the last year. Just under half of respondents reported at least some improvement in turnaround times for claims and new business enquiries, down from 2018. And the number of respondents who felt that turnaround times had worsened overall was also slightly up over 2018. Brokers blamed wider market conditions for the increased lag in turnaround. “I think due to a hardening market, more quotes are being requested by brokers, putting underwriters under the pump,” one broker said. On the other hand, respondents credited online support with increasing processing speed, but brokers emphasised that portals still could be “more user-friendly”.

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Twenty years

Two decades

Our national team of strata experts place great importance on the strength of the relationships we create with our customers and partners. We are proud to have been delivering peace of mind to the Australian Strata community since 1999. With a strong focus on innovation we regularly seek out, adopt and implement new technologies. This allows us to continuously evolve and adapt to whatâ&#x20AC;&#x2122;s on the horizon and support a progressive future.

www.suu.com.au

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SPECIAL REPORT

BROKERS ON UNDERWRITING AGENCIES

BROKERS’ PICK In addition to voting for the top underwriting agencies across 11 product lines, IB also asked brokers to name the top insurance product provided by an underwriting agency in the past 12 months. Here are the Brokers’ Pick recipients for 2019.

CHU Underwriting Agencies Residential Strata Insurance Plan For the fourth year in a row, CHU Underwriting Agencies’ Residential Strata Insurance Plan made the list of brokers’ favourite products. Respondents spoke extremely highly of the product, noting that “a lot of inclusions were added after the last revision”. Another broker praised CHU for being “easy to change and organise for renewals – straightforward process”, while a third said, “CHU’s turnaround times have increased significantly, and we have a dedicated team that services our area – makes things much easier.” But perhaps the most concise – and fitting – endorsement came from a broker who simply said, “Great product, great service.”

Emergence Insurance Group Cyber Event Protection Returning to the Brokers’ Pick list for the third year in a row, Emergence Insurance has marked itself out as a favourite in the cyber event space. “Very good policy wording, excellent online system and cyber response team to support the policy wording,” one broker raved. Another highlighted Emergence’s “excellent product” and “good claims service”. Brokers also valued the support and education Emergence provides, both “in person and via regular webinars”.

DUAL Australia Cyber Insurance Every year since the inception of the Brokers on Underwriting Agencies survey, DUAL Australia has made an appearance on the Brokers’ Pick list. This year it was the company’s cyber insurance policies that struck a distinctive chord with brokers. One broker praised DUAL’s “competitive premium and cover, including optional cover for social engineering, phishing and cyber fraud”, while another noted that the “depth of cover provided exceeds the majority of the market competitors”. A third broker highlighted DUAL’s “good product, additional extensions, good pricing and communication, and excellent claims service”.

AFA Accident & Sickness Marking yourself out among brokers in the accident and health space is no mean feat – but AFA did it this year. Respondents to this year’s survey sang the company’s praises, highlighting its “innovative cover and great service”. Another broker noted that AFA “provided flexible terms and was able to modify the product to cater to specific client needs”. The agency also received high marks for premium stability.

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Proud to win the Gold award for Cyber & IT again and the brokers pick award; our 4th time in 5 years. Winner - Underwriting Agency of the Year - Insurance Business Winner - Broker's Pick - 2015, 2017, 2018, 2019 Gold - Cyber and Information Technology Liability - 2018, 2019

Your specialist Cyber underwriter Emergence is 100% focused on cyber insurance. We support brokers by providing expert advice and market leading cover for their clients. For more information contact our team at: Sydney 02 8280 3000 | Melbourne 03 9906 3905 Brisbane 07 3237 8662 | Perth 0475 011 223 | Newcastle 0475 033 055

emergenceinsurance.com.au Emergence Insurance Pty Ltd (ABN: 46 133 037 153, AFSL: 329634). Products underwritten by certain underwriters at Lloyd's.

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SECTOR FOCUS: PEOPLE RISK SOLUTIONS

A more thoughtful approach Blend Insurance Solutions CEO Chris Newing tells IB about the company’s approach to working with brokers and how it’s helping to redefine people risk solutions IN JUST a couple of years, Blend Insurance Solutions has established itself as a digital underwriting agency specialising in accident, sickness and travel insurance. For CEO Chris Newing, it’s an opportunity to help shape a product class that has often been misunderstood by both industry insiders and outsiders. “To be quite blunt, we felt that poor service levels and lack of product differentiation had created room for a new entrant into the market,” Newing says. “We wanted to be a company that was focused on going above

and beyond rather than just doing the same old stuff again.” Blend’s products can provide cover for a broad variety of people-related exposures, including injuries resulting from accidents outside of the workplace, which might not fall within the scope of workers’ compensation. Newing points to situations such as commuting to and from work or volunteering for charity as two examples. “We also provide a solution for topping up cover available under workers’ compensation,”

ABOUT BLEND INSURANCE SOLUTIONS Blend is a specialist accident, sickness and travel insurance underwriting agency. It’s often difficult to differentiate in a crowded market; however, Blend is finding success in delivering the best combination of price, coverage and superior service for its broker partners and their clients. Its mantra of ‘happy broker, happy blend’ shines through in all the company does. Blend understands that dealing with people risk is complex, so the company has designed its approach to products and servicing brokers to be simple and uncomplicated. As an expert ‘people risk’ resource providing a suite of services, Blend enables its broker partners to deliver traditional and innovative digital solutions to their clients via: • Access to a suite of accident, sickness and travel insurance covers • Direct contact with empowered underwriters via multiple channels • Dedicated support and defined service levels • Digital tools for distribution and servicing

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he says. “It’s for individuals and businesses alike who are looking to protect income above and beyond the usual limits. “We are a thoughtful business; this means we have purpose to everything we do,” he adds. “We always want to maintain customercentricity and an ethical stance. It’s easy to fall into just transacting business, but as an industry, we need to do better than that.”

Solutions that solve This attitude informs all of Blend’s client interactions. Newing stresses that brokers’ service expectations shouldn’t be any different to consumers’, and bringing a high-quality approach to the field means being flexible when working alongside brokers. Therefore, Blend seeks to act as a product expert to provide brokers – and, in turn, their clients – with the tools they need to succeed. Building effective relationships is also essential to the process; after all, how can brokers recommend solutions to clients if they don’t know they exist? “Part of working with brokers means sitting down with them and taking a thoughtful approach to how we construct,

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establish and design solutions,” Newing says. “Our approach is to be open, transparent and consultative with all broker interactions. Most of the time, it’s about listening to the broker and shaping the solution together, so our job is to quickly establish, fit and execute.” Newing is also aware that despite the increasing focus on technology in insurance, many brokers are still somewhat traditional in their outlook. “Many brokers with more traditional methods may actually be stronger technically or have relationships that we could help add value to, so our business is designed to service the full spectrum,” he says.

ready and serving our partners via channels they’re already comfortable with and have built their business around – a complementary approach.”

Rethinking relevance Since its formation, a key focus for Blend has been clarifying and creating better people risk solutions for brokers and insureds alike. Newing sees employee benefit programs as an opportunity for an employer to provide additional value to employees. It’s a natural extension from the accident and sickness space, given that these are features often incorporated into employee benefit programs.

“We wanted to be a company that was focused on going above and beyond rather than just doing the same old stuff again” Chris Newing, Blend Insurance Solutions While technology plays an important role in the modern insurance landscape, Blend doesn’t want brokers to feel like they’re being forced in over their heads with unfamiliar tech. That’s why the company has ensured that brokers are able to access its products on their terms, whether that’s by emailing their submission/quote request; logging into the broker portal for self-service quotes, bind and claim notification; or integrating Blend’s products via their own systems and embedding Blend’s systems into their websites. By ensuring that its products and services are truly omni-channel, Blend can cater to a wide range of intermediary business models. “Insurtech is a word we hear often, but fundamentally, it’s referring to being more efficient in the way that we as an industry serve,” Newing says. “It’s more about being

Newing is quick to point out that employee benefit programs encompass more than just offering fruit in the office kitchen or discounted gym memberships – they should be comprehensive, covering facets such as healthcare, income protection and injury prevention. “In Australia, we have a heavily regulated and mature market when it comes to employee benefits,” Newing says. “As such, compared to other countries, Australian businesses have the opportunity to design employee benefit programs more organically with involvement from the workforce, providing greater choice and relevance to the end user of the product. “Some of the traditional and long-standing examples we see in the workplace are agreements struck between a union and employers. We don’t always think of them in this context, but if you look at them more closely, you’ll see

that they often do include benefits like income protection or specific healthcare benefits.” However, Newing notes that difficulty often arises with employee benefit programs because employees aren’t up to speed with what’s available to them. “These arrangements are often made behind the scenes of day-to-day office life,” he explains. “If you’re heavily involved in the union or other areas of office admin, you might have some more insight, but lots of employees are simply not engaged until the

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SECTOR FOCUS: PEOPLE RISK SOLUTIONS

BUILT TO SERVE Blend commenced its journey with a clearly defined distribution strategy: to provide brokers with an optimum, consumer-like experience. “Delivering exceptional service is not just a thing we do,” CEO Chris Newing says. “We’ve embedded it, live it and made it part of our DNA, what it means to be Blend. We consider ourselves to be a digital extension of our broker partners.” Blend is one of the only 100% ticket-based agencies in the market. By making service core to its business, Blend has future-proofed with a digital service model that is capable of scaling and/or pivoting rapidly. “This gives us a significant advantage to not only provide a superior experience, but also be able to measure performance and use this to further optimise over time,” Newing says.

time it comes to use them.” Whatever the cause, the result is often the same – benefits go unused, and the renewal of such programs by the employer becomes a rubber-stamping process, rather than a genuine assessment of employee needs. However, personalisation is becoming increasingly crucial. “We have a situation where employees have access to cover for certain things under a policy held by their employer via provision in the Insurance Contracts Act,” Newing says. “But that hasn’t necessarily been done in consultation with the employees. Is the cover aligned with or valued by those who have access to it?” It makes sense, Newing adds, for insurers

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and brokers to provide a way to engage employees in the consultation process for a better outcome, which he believes is best accomplished via digital insurance models. There are regulatory and cultural considerations at play, and Newing urges brokers to have the necessary conversations with their clients when they’re discussing options for cover as part of their employee benefit programs. This can cross a broad range of activities. For some organisations, it will be as simple as checking whether their insurance is in line with best practice and regulatory requirements for their industries. In other cases, it will be a more detailed process of employee engagement, consulting with individual staff

and their broker, looking at the successes of other companies, and gauging the overall priorities of the business itself. Nonetheless, Newing is optimistic about the prospects within the field. As more businesses strive to build a reputation as an employer of choice, employee benefit programs can be a drawcard for top talent, rather than simply a checkbox for the business. “We’re here and ready with validated solutions,” Newing says. “We want to make sure companies aren’t just doing the same thing over and over again – now’s the time for businesses to review their policies and for intermediaries to feel supported to present and deliver innovative and valuable solutions for their clients.”

PEOPLE

ADVISER INSIGHT

A one-woman show As an adventure lover and sole director of Coastal Insurance, Nic Curkoski has a lot on her hands – so having the behind-the-scenes support of a wider network is essential

NIC CURKOSKI is known within the insurance industry for her fearless pursuit of physically gruelling endeavours – including hiking the Kokoda Trail, climbing Kilimanjaro and reaching Everest Base Camp – but she also balances her love of adventure with the demands of running a business by herself. “I’ve been told that I’m the one woman who can jam 36 hours into 24 while wearing high heels,” laughs Curkoski, who’s also a mum of two, has managed to squeeze in a celebrant’s qualification and is weeks away from becoming an accredited personal trainer. All of this, she says, has only been possible thanks to Insurance Advisernet. As an authorised representative of the group, Curkoski runs her own business but also has access to a network of support. “IA reps are extremely fortunate that we are all willing to work as a team and leverage each other’s expertise where required,” she says. “The culture amongst the group is pretty special – we are all individual businesses, but we are more than willing to assist our colleagues as required.” Of course, it hasn’t all been plain sailing – when she first launched her business back in 2007, Curkoski was forced to step outside of her comfort zone and begin an entirely new book of clients. “There were clients I’d had for 11 years who I wasn’t able to do anything for,” she recalls. “I’d gone from an office where the phone never, ever stopped ringing to setting up my own office

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where I was sitting looking at the phone, begging it to ring!” Having previously operated primarily in the earth-moving space, Curkoski knew she would have to widen her scope to make things work – so she took things back to basics. “I jumped in the car and went into businesses down in the Illawarra,” she says. “I introduced myself, told people I’d just set up my own branch in the region and asked if they wanted a review of their insurances. I can tell you, some people are really, really mean.” Luckily, Curkoski eventually had more to show for her efforts than just a thicker skin – she also began to build an incredibly diverse book of local clients. “The first year was definitely tough – even

when businesses are receptive, their insurances might not be due until months later – but I went into it with a three-year plan and stuck it out,” Curkoski says. “Now, my portfolio is incredibly broadly spread – there’s everything from investment homes to strata plans and earth-moving contractors to celebrity trainers.” While advising such a wide array of businesses does bring its own challenges, Curkoski says the core principles of insurance remain the same – so she’s happy to have the diversity. “There’s always something new, and every client brings something unique to your portfolio base,” she says. “But, while clients’ industries vary, the basic principles of insurance are quite consistent across most sectors, and there are a number of schemes which assist us in

CURKOSKI’S ADVICE TO HER YOUNGER SELF Nic Curkoski has 25 years of insurance experience under her belt, having joined the industry in her teens. Looking back, she says there are a few pieces of advice she’d love to give her younger self: Don’t be afraid of change, never stop learning and invest in personal development. Whatever you’re doing, if you don’t enjoy it, it’s up to you to change it. Stay true to who you are and surround yourself with those who encourage, inspire and bring out the best in you. Don’t let fear of the unknown or self-doubt ever hold you back. If you want something bad enough and are willing to work hard enough, regardless of obstacles, you can achieve it. Live in and enjoy the moment – your plans for tomorrow are always subject to change.

NIC CURKOSKI’S CAREER HIGHLIGHTS

1994

Enters the insurance industry as an assistant account executive with Annis Sedgwick Insurance Brokers

1996

Earns her Diploma in Business, General Insurance

1997

Becomes an AR for Insurance Advisernet

2004

Obtains QPIB status

2007

“There’s always something new, and every client brings something unique to your portfolio base” ensuring the clients have access to industrytailored products.” Another thing Curkoski says always remains the same, regardless of industry, is the importance of building strong and trusting relationships with clients. “Insurance can be confusing and is often a grudge purchase, so I try to ensure that my

clients understand their exposures, the benefits of the insurance and the possible pitfalls to enable them to make an educated decision as to what insurances they wish to secure,” she says. “I am mindful that without my clients, Coastal Insurance Services would not exist.” That’s why Curkoski insists on always keeping clients front and centre, whether

Launches Coastal Insurance Services

2016

Is recognized as an IA Platinum Practice

they’re a one-person operation or a multi national organisation. “Over the years, I have seen first-hand that the smallest of clients can build into the largest of organisations,” she says, “so, regardless of the size of the entity or their industry, I will always provide consistency as to the level of service.”

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SECTOR FOCUS: WORKERS’ COMPENSATION

A journey to a fairer system Since 2015, icare has become the primary provider of workers’ compensation insurance in NSW. IB sat down with icare’s Beth Uehling to discover more about the changes the organisation is making to overhaul the system and bring about better service

TAKING ON responsibility for over 320,000 employers and more than 3.2m workers would be a daunting task for anyone. But since 2015, Beth Uehling has been helping icare do exactly that. As the organisation’s group executive of personal injury, she’s helped oversee the amalgamation of disparate bodies from the workers’ compensation scheme into the current centralised model. “Really, we were looking to create a more customer-centric process across our policy and claims services,” Uehling says. “The easiest way to do that was to bring the customer-focused operational aspects under one umbrella so that we could ensure greater transparency.” Though icare has only been around for four years, there are real benefits for customers coming through the system. Claims can often be resolved in weeks, and premiums have remained stable for businesses, Uehling notes. “In workers’ compensation, we want to keep costs predictable for NSW businesses

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and help people recover and get back to work as soon as possible,” she says. “And if there’s a more serious injury, we want to ensure that our customers have effective care in place. It’s a vulnerable time for the injured person and their families, so we want to smooth the process as much as possible.” Uehling is open about the shortcomings of past systems, freely admitting that they tended to be process- rather than peoplefocused, with adversarial and inconsistent levels of service. Nonetheless, she is posi-

tive about the bulk of changes that icare has implemented and believes they will ultimately lead to a better and fairer process for both brokers and customers who deal with icare in the future. “It’s a long-tail business, but that doesn’t mean we want to make excuses,” Uehling says. “Rather, we’re still working to build on our existing strengths and to fix the things that need fixing to ensure the system is fairer for everyone.” In practical terms, this means providing brokers, customers and front-line claims staff with better tools to manage their policies and claims. Today, a claim can be lodged 24/7, in around 15 minutes, and policies can be taken out instantly with icare via an online portal. In addition, claim allocation rules now mean that claims with an expected incapacity of more than two weeks have a dedicated case manager, whereas lower-complexity or medical-only claims are managed within a claims support centre. Better communication tools are also in place; SMS functionality between case managers and customers enables customers to schedule a call with their case manager when it’s convenient for them. It’s clear customers are noticing the change, too: icare’s Net Promoter Score for injured workers has shifted from -23 three years ago to 4 as of September.

ABOUT ICARE At icare, we aspire to deliver best-in-class insurance and care services to the businesses, people and communities of NSW. Whether a person is severely injured in the workplace or on our roads, icare supports their long-term care needs to improve their quality of life, including helping people return to work. We provide workers’ compensation insurance to more than 320,000 employers in NSW and over 3.2m employees. We also care for more than 60,000 injured workers each year. In addition, we insure builders and homeowners, provide treatment and care to people severely injured on NSW roads, and protect more than $193bn of NSW government assets, including the Sydney Opera House, the Sydney Harbour Bridge, schools and hospitals.

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“We want to keep costs predictable for NSW businesses and help people recover and get back to work as soon as possible” Beth Uehling, icare Pushing for prevention Like many working in the industry, Uehling didn’t necessarily see herself becoming involved in insurance when she was younger and took a roundabout path into the field. “I came to Australia from the US to do something completely different, just like

everyone else in the field,” she says. Yet she can point to certain experiences that shifted her towards her current career. As a young woman growing up in snowy Minnesota, she saw a lot of live sport. Ice hockey was a favourite – her hometown team, the Minnesota North Stars, introduced her to

the sport, as well as the reality of injuries that can occur during the game. “Since coming to Australia 20 years ago, I’ve spent most of that time in workers’ compensation,” Uehling says. “Maybe all that time I spent watching hockey had more of an influence on my career than I realised.” The difference between workers’ compensation and many other varieties of insurance, as Uehling sees it, is its humanistic focus. “A lot of insurance is steered towards assets,” she says. “That’s important, but here we have an additional level of complexity. People haven’t just lost a possession; they’ve often lost their health or livelihood. We’re trying to return people to a state of independence – and work, if possible.” The organisation also works with brokers and businesses to help them implement safety and preventative measures. Customers are rewarded with lower premiums if they’re able to demonstrate a commitment to taking preventative measures. Mobile engagement teams are available for regional areas, too, holding town-hall-style forums to talk to employers directly. “The cheapest claim you’ll ever make is the one you don’t have to pay,” Uehling says. “But even more importantly, we want people to be going home safely to their families at night.” Uehling uses Buildcorp Group as an example of the success of this approach. In September 2018, the family-owned construction business won the icare Aware Award for putting the safety of new workers first. Buildcorp used its accident data to determine the staff most at risk, to drive the new safety campaign. “As part of this campaign, we gave out green hard hats to all our new workers, so it was easy for experienced staff to offer additional mentoring, and everyone could support them to stay safe,” says David O’Toole,

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SECTOR FOCUS: WORKERS’ COMPENSATION

Buildcorp’s health, safety and environment manager. “We produced a safety video where workers shared what it meant for them to return home safely every day. It’s now part of our induction because it appeals to the emotions of our workers and makes them more aware about our safety culture.” Buildcorp’s safety campaign was so successful that it reduced injuries among new and young workers to zero and embedded a proactive safety culture across the organisation. The end result has been that premiums have stayed 50% below the industry average for the last three years – up to 2019 – by making processes safer and developing a culture where staff are encouraged to speak up when something doesn’t look safe.

Future care Given the continually evolving state of the insurance industry, Uehling is well aware that icare will inevitably undergo upgrades, growth and change in the coming years. “One challenge we’re seeing is around a 40% rise in medical costs since 2015, which is putting a lot of pressure on claims servicing costs,” she says. “We’re implementing

“The industry wants more tailored solutions, so we’re looking at how we can do more to meet that” Beth Uehling, icare a medical strategy to alleviate this and to enhance medical decision-making protocols, but much of this is driven by overall medical inflation.” Despite the challenges, icare has a variety of customer-focused initiatives already underway. Uehling points to the online portal as a significant upcoming milestone for the organisation. “At the moment, brokers

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and customers can call in a claim 24/7 – but we still want to be able provide greater control over both policy and claims via our online portal,” she says. Additionally, the existing claims model hasn’t always allowed for the level of choice that some customers and brokers prefer. Accordingly, after more than 12 months of piloting an authorised provider model and

gathering customer feedback, icare announced in August that it will be offering the model to qualifying customers in early 2020 to provide a broader range of insurance options. “The authorised provider model is expanding to more large employers from the first quarter of 2020, which will allow for more choice,” Uehling says. “The industry wants more tailored solutions, so we’re looking at how we can do more to meet that.” In line with providing greater choice, icare has also established an Industry Engagement Team, which will work across a variety of industries to better understand the specific needs of businesses and create better products for workplace safety risks.

We support more than 320,000 businesses We protect more than 3.2 million workers each year

We care for more than 60,000 injured workers each year

Weâ&#x20AC;&#x2122;re delivering positive change

icare.nsw.gov.au/positivechange

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SECTOR FOCUS: TRANSPORT INSURANCE

Taking the wheel on transport insurance Transport insurance is a remarkably broad field that can be daunting for new brokers. Two experts in the field break it down to basics

TO VIEW ANY sector of insurance as a monolith would be a mistake, but that’s especially true when it comes to transport. The scope of this segment is tremendous – the risks and the insured assets are big and expensive, and the losses can be, too. While the transport sector faces many challenges, insurance products help to mitigate its financial risks and protect its assets. Accordingly, insurers need to offer flexible products and provide services that are tailored to the unique needs of their customers. Brokers should equip themselves to educate their clients about the needs of the industry and the changes that occur, says Glenn Lambert, managing director at GT Insurance. Staying up to date is crucial – best practice is continually evolving in line with technological shifts, and recent changes to Australian law have affected transport and logistic responsibilities. “All transport companies are different, as are transport insurance suppliers,” Lambert says. “Insurance can come at a significant cost, and cheap is not always best.” For Nick Dendrinos, head of motor portfolio at NTI, the diversity and specialisation inherent to transport insurance have been

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key in keeping him so heavily involved in the industry for so long. One day you might be talking to a father-and-son short-haul operation, he says, while the next you’ll be dealing with a livestock carrier hauling a road train of stock trailers across the Northern Territory or a fuel carrier fleet running B-double tankers from Melbourne to Sydney. “All these customers have different risk profiles,” Dendrinos says. “They require an in-depth understanding from an insurer that is specialised and also has the expertise and capability to tailor a customer-centric insurance program.” Lambert expresses similar sentiments, emphasising that brokers need to work with an organisation that can provide the relevant service to clients, not simply write a policy that’s effective on paper.

“Ensuring the right cover and structure is in place, a fast and efficient claims process, as well as a supplier who is capable of understanding the business’s needs should be the key considerations,” he says. “It’s not simply about paying a claim or processing a response,” Dendrinos adds. “It’s end-to-end management, from ease of lodgement to making sure the insureds and affected parties are looked after post-incident.”

Reducing risk The risk profile of businesses within the industry serves as an excellent example of the complex nature of the challenges that brokers must navigate. As with any other field of insurance, Lambert explains, a transport company’s risk profile determines the type of insurance program and premium

ABOUT NTI With more than 45 years of experience in the insurance industry, NTI is the company you can count on to protect your transport and logistics assets. Our award-winning combination of tailored products and services, experienced people, accredited repair and recovery networks, and industry advocacy have seen us become Australia’s leading specialist insurer, recognised as a leader in our field. Yet insurance is just a piece of paper – a promise. It’s not until you really need us that you understand our point of difference.

“It’s not simply about paying a claim or processing a response. It’s end-to-end management” Nick Dendrinos, NTI price. That risk profile is dictated by a variety of factors, including the company’s track record, current safety initiatives and the nature of the transport work involved. “Employee safety in the workplace is paramount – it gets more complicated when the workplace is the cab of a truck, bus, motor vehicle or plant and equipment,” Lambert says. “The ultimate goal is to get the driver back safely to the depot at the end of each shift.” Certainly, technology has proven valu-

able in providing better data to help insurers assess risk profiles. Telematics are increasingly common; many vehicle manufacturers provide them as a standard option. In combination with emerging technologies such as Seeing Machines, there are also active initiatives to help reduce accidents. “You can argue that cars and trucks are a lot safer than they once were, which is correct,” Dendrinos says. “The driver is better protected now than they have ever been, so claims frequency has been reducing over time.”

However, Dendrinos notes that these changes in technology haven’t always been reflected in insurance premium pricing. The severity of losses, component costs and average claims costs have all increased. There are still new risks emerging within the field, too – Dendrinos points to driver distraction as a major issue. “The rapidly changing technological landscape has been a major change to the auto insurance industry,” he says. “Mobile phones, texting while driving and touch display audio-visual systems within vehicles have also resulted in an increase in fatalities and major collision frequency.” There’s no doubt that the increasing level of technology makes data collection easier and driver safety a greater priority. But there are drawbacks that make it a complex situ-

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FEATURES

SECTOR FOCUS: TRANSPORT INSURANCE

WHAT TO LOOK FOR IN A TRANSPORT INSURER NTI’s Nick Dendrinos lists five factors brokers should keep in mind when selecting a transport insurer. 1. Claims excellence Transport claims in particular are often highly specialised and require a customer-focused approach due to the severe nature of losses that can occur. 2. Industry expertise An ongoing commitment to regulatory compliance and building best practice is essential. Such value-added services are especially pertinent considering the recent changes to Australia’s Chain of Responsibility legislation. 3. Risk appetite Risk appetites must be broad enough to protect the customer’s assets across the diverse spectrum of the transport and logistics industry. 4. Policy coverage Given the unique risk exposure characteristics, transport insurers should be providing superior policy coverage that’s in tune with the characteristics that transport customers need coverage for. 5. Underwriting expertise It’s vital to look for underwriting expertise that is tailorable according to the customer’s unique risk profile.

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ation and one that is unlikely to be resolved anytime soon.

Future insurance planning Looking ahead, Lambert expects the transport insurance market to remain relatively stable over the next 12 months. He believes ridesharing in its many forms will continue to evolve, as will more efficient pricing models

Accordingly, insurance providers must be able to deliver a complete set of services that includes management of all claims covered under client insurance policies.” Dendrinos believes that over the next 12 months, the industry will see much tighter enforcement of the new Chain of Responsibility legislation, potentially exposing some transport operators to big penalties.

“The ultimate goal is to get the driver back safely to the depot at the end of each shift” Glenn Lambert, GT Insurance based on data-driven solutions, particularly in small fleets. “The better-managed transport companies will see the benefits of their risk management efforts, where others will see significant increases if the loss ratio is loss-making over time,” Lambert says. However, that doesn’t mean the whole process will be smooth sailing. “Companies that are continually working on managing or reducing their operating risks – and there are many of them – are reducing their insurance spend,” Lambert says. “The move to selfinsurance in its various forms is increasing.

“Suppliers will be looking at their providers much more closely to ensure that their vehicles are fit for purpose,” Dendrinos says. “It will be paramount for insurers to provide tailored solutions and value-add services focused on supporting and working with customers around risk improvements.” In a roundabout way, it will be business as usual in this inherently challenging field, where brokers must equip themselves to respond to a constantly shifting landscape. “Transport is a tough, competitive segment of the insurance industry,” Lambert says. “I don’t see that changing anytime soon.”

ABOUT GT INSURANCE Founded in 1996 as Global Motor Underwriting Agency, our founding directors wanted to use their experience and knowledge to establish an underwriting agency that could truly understand and address industry-specific brokering needs. They sought to build an underwriting agency able to provide a personal and proficient service that would result in a successful outcome for both the broker and the client. In 2006, Allianz expanded its interest in our operation from being the insurer of our products to becoming a major shareholder in our business. This partnership formed the beginning of a much stronger company, better able to serve the needs of the transport industry. That company is the GT Insurance that exists and continues to expand today.

FEATURES

WORK-LIFE BALANCE

Stop that 80-hour hustle Starting your own business isn’t easy – but it also doesn’t have to involve endless hours of work. Aytekin Tank explains how and why to cut back

“ENTREPRENEURS ARE willing to work 80 hours a week to avoid working 40 hours a week.” Maybe you’ve already seen this quote from serial entrepreneur and Shark Tank star Lori Greiner. If not, I bet you’ve heard a version of it. Entrepreneurs are infamous for busybragging. Sometimes it even feels like a competition: Who can work the longest? Who can sacrifice the most? Who will sleep at the office and go a full week without natural light? Yes, starting a business is hard work, and Greiner’s dedication has clearly paid off (she’s created over 700 products and holds 120 patents). But the willingness she describes is really about freedom. Whether they’re chasing a big idea or solving a real problem, most founders also want to call the shots, to make their own money, set their own hours and create something they care about. So why are we all trying to outwork each other? I don’t believe in the 24/7 hustle and grind. It’s not productive. And it’s starting to kill us. I also know first-hand that starting a business is not easy. I’ve been on a 12-year entrepreneurial journey, slowly building

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JotForm into a global company with 4m users and 110 employees. So where is the balance? How can you fulfil your vision without sacrificing yourself? Instead of logging more hours, the answer is to make the most of the hours you work.

management. Controlling your work is a matter of focus, not creating a crazy-strict schedule. When you focus your attention, you maximise your time, which increases your motivation. It’s a productive cycle that feels really, really good.

“Managing time starts from the premise that your workload is going to be what it’s going to be, and the best you can do is keep it ‘manageable’. But what if you could design your workday instead?” If you’re smart about time management, you might be amazed by how much you can achieve in a sane, focused week. Here are five strategies that help me to avoid overworking – even when there’s always more to do.

1. Minimise your active projects Time management is attention

At any given time, I have no more than three core goals or active projects. That’s it. I say no to everything else. I delegate or save any outside tasks for later. You can also try a more sophisticated approach. In a Fast Company article, Google for Work director Thomas Davies described the problem with most time management strategies: “Managing time starts from the

2. Mono-task, don’t multi-task Establishing core priorities will narrow your focus. You also need to perform just one task at a time. That’s because, as Phyllis Korkki wrote in The New York Times, multi-tasking is a biological impossibility: “Your brain may delude itself into thinking that it has more capacity than it really does, but it’s really working extra hard to handle multiple thoughts at once when you are switching back and forth between tasks. Your ability to get things done depends on how well you can focus on one task at a time, whether it’s for five minutes or an hour.” To create a mono-tasking environment, Korkki suggests that you remove all temptations – even if that means installing anti-distraction programs like Freedom or FocusMe. Also, use just one screen. Work in set chunks of time, and if you lose focus, get up and walk around. You can also try the popular Pomodoro technique, which breaks the day into highly focused 25-minute intervals, followed by a five-minute break. After four intervals, you take a 15-minute break – ideally away from all screens and mobile devices. premise that your workload is going to be what it’s going to be, and the best you can do is keep it ‘manageable’. But what if you could design your workday instead?” Davies decided to create a new strategy. He divided his work responsibilities into four quadrants: people development, business operations, transactional tasks and representative tasks. Then he slotted every task into one of the four quadrants.

Once he had a high-level view of what actually occupied his time, he could decide what mattered most – and what made him feel most energised. Now he tries to maximise his work in those high-value quadrants. If this method speaks to you, give it a try. As Davies explains, you’ll soon realise that not all tasks are created equal. Armed with that knowledge, you can be mindful of where to dedicate your attention.

3. Cut back on meetings Meetings have become a contentious topic in entrepreneurial circles. Tesla founder Elon Musk told his staff to “walk out of a meeting or drop off a call as soon as it’s obvious you aren’t adding value”. And Basecamp’s Jason Fried says “it’s hard to come up with a bigger waste of money, time or attention than status meetings”. Some meetings are critical, but many are

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FEATURES

WORK-LIFE BALANCE

not. Unless the meeting can remove a roadblock or it’s essential for team cohesion, find another way. Send an email and follow up later. Say no and protect your time. You’ll be helping colleagues and co-workers to regain their focus, too. I’m honoured to receive a lot of requests for coffee and casual get-to-know-you meetings. I mentor some young entrepreneurs, but I politely decline everything from speaking invitations to networking events. I wish I had time to accommodate everyone, but I just don’t. I have to draw a firm boundary – and you should as well.

will rebel, too. You’ll be less analytical, way less creative, and your emotions will eventually overrule all logical thoughts. I spent a summer in Izmir, Turkey, where JotForm has a small office. It’s a beautiful city by the sparkling Aegean Sea. So I worked

took three months off to travel across Europe. It’s a matter of planning and sticking to your priorities. For example, if you’re working in your business, it doesn’t function without you. When you work on your business, you can

Imagine your brain is a whiteboard. Every time you make a decision, you’re wiping off more scribbles. Soon, it’s clear and ready for creative thought

4. Make quick decisions Hoarding decisions creates stress. When your mind is buzzing with many different choices – from what to eat for lunch to which job candidate to hire – it’s almost impossible to have a productive workday. Now imagine your brain is a whiteboard. Every time you make a decision, you’re wiping off more scribbles. Soon, it’s clear and ready for creative thought. When it comes to decision-making, speed is the goal here. There are very few decisions that can’t be made quickly. I know that goes against conventional wisdom, but give it a try. If you’ve already gathered enough information, combine that data with your personal instincts and make a choice – now. Don’t have enough data? Then forget the decision and gather what you need. Once you have the right information, make your choice and move on. Repeat as needed.

5. Make the most of your work time – then step away Holidays and downtime are essential for success. There’s just no way around it. You can hustle with the best of them, but at some point, your body is going to say no. The mind

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four-day weeks and explored the nearby beach towns with my family. I realise this is a great privilege – and I know you might have a few more questions. Don’t you feel pressure to show your face in the office? Do you worry that your team will lose morale and slack off if you’re not there? Honestly, I’m just not concerned about it. I guess some employees might slip into ‘relaxation’ mode if I’m not in the office, but I also know that our teams love their work. They’re knee-deep in meaningful projects, and I have great respect for what they contribute to JotForm. I encourage our employees to take time off, too. If you don’t take holidays, you’ll burn out and eventually produce less. As CEO, my job is to ensure our teams are motivated and they don’t hit roadblocks. Our employees won’t function well if they don’t take care of themselves. How on earth can I ease up when I’m just launching or growing my business? I promise it’s not impossible. Even during the early days of my company, my wife and I

develop systems and processes that let you step away. You build a company that doesn’t break if you’re not answering every email or performing every single task. Even as a solopreneur, you can plan to hit pause – if it matters to you. I know the details can be tricky, and this is a far easier proposition with an online business. But ultimately, life isn’t all about work. I don’t know about you, but I don’t to want to work, work, work and then retire for a couple years before I die. I want to enjoy my life and my freedom. Be strategic. Ask for help. Develop systems and safety nets that allow you to step away, even for a short time. You and your business will be so much better for it. Soon, you won’t even dream about using the word ‘hustle’. Aytekin Tank is the founder and CEO of JotForm, an online form creation software with 4m users worldwide and more than 100 employees. A developer by trade but writer by heart, Tank shares stories about how he exponentially grew his company without any outside funding. For more information, visit jotform.com.

With age comes experience and wisdom. HSUA is proud to announce another award winning year.

hsua.com.au ABN 27 096 939 169 | AFS LICENCE 244370 www.insurancebusinessonline.com.au 59

FEATURES

ENGAGEMENT

Why your open-door policy is a joke Brian de Haaff explains why true transparency and engagement requires more than merely telling employees your door is always open

THE BIG BOSS strolls into the big corner office. “Remember, my door is always open,” she calls out to the team. If this sounds like the start of a bad joke, that’s because in a way it is. Open-door policies are usually empty gestures. If you have to tell people that you’re open and accessible, then it’s probably not true. And you have a transparency problem. The so-called open-door policy is a corporate cliché – a relic that should be left in the past. Of course, there are times when the intention behind the cliché is sincere. But the issue is that few team members will actually take advantage of that open door. If you’re a leader in title or action, you must be the one who steps up and engages. There’s no substitute for proactive engagement. A Gallup survey revealed that when managers don’t regularly meet with employees, only 15% of their employees feel engaged. Managers who regularly meet with their employees almost tripled that level of engagement.

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Saying your door is open is a triviality. You must make a real and sustained effort to demonstrate transparency, accessibility and collaboration. When you show (not tell) people they can come to you at any time, they believe it and act on it. Here’s how the best leaders foster openness and communication:

Share the plan Most people want to know that their day-to-day tasks and to-dos are meaningful – directly contributing to the overall success of the company. To make this connection, everybody on the team needs to understand the plan for achieving the organisation’s higher vision. Strong leaders openly share the plan. Doing so builds a sense of belonging and transparency.

Give feedback Scheduled one-on-one meetings are great, but when something demands immediate attention, don’t wait to start a conversation. Be direct and specific

with your language and your recommendations. Doing so builds trust, making it more likely for people to come to you the next time they want an honest and productive perspective.

Ask questions Be curious about the actual work your team is doing, but also about attitudes toward it, difficulties and any surprising learnings along the way. Take advantage of all your means of communication – collaborative workspaces, instant messages, video chats. Be inquisitive. You won’t need an open-door policy if you go to your team with questions instead of waiting for them to come to you.

Saying your door is open is a triviality. When you show (not tell) people they can come to you at any time, they believe it and act on it Stay responsive If somebody comes to you with a question or request, do you get back to them quickly? Pushing concerns to the side sends a signal that your team members need to go somewhere else for answers – that essentially, your door is shut. Yes, everyone is busy. But being accessible and responsive lets your teammates know that you care to help.

Recognise effort Research shows that people are reluctant to ask for help when they have a problem. I would guess that even more stay silent when they’ve done something great. Call out strong efforts and perfect moments – those instances when somebody achieved an ideal state. The point is not to inflate egos, but to provide positive feedback and let people

know that their outstanding work is not going unnoticed. Leaders gain the team’s trust by being open and approachable through actions, not empty words. Give everybody equal access, offer real feedback and show no favourites. Do that consistently and thoughtfully, and you won’t have to tell people you’re accessible. No joke. Brian de Haaff is the co-founder and CEO of Aha! and the author of Lovability. His two previous companies were acquired by well-known public corporations. De Haaff writes and speaks about product and company growth and the adventure of living a meaningful life. For more information, visit aha.io. Author photo by Chris Yeh

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PEOPLE

CAREER PATH

DRIVEN TO SUCCESS Thanks to his innate desire to succeed, Chadwick Jones has come a long way in a short time

Jones took up the piano as a teenager; after only three years of teaching himself, he began playing professionally on weekends or after school in bars, restaurants and even as an accompanist for musicals such as Phantom of the Opera. “I figured out how to read music and how to play the notes I was seeing. I played piano for [productions of] Camelot, Disco Inferno, The Secret Garden and The Last Five Years.”

2005

BECOMES A PIANO PRODIGY

2011 GOES BACK TO SCHOOL Having worked in a series of dead-end jobs for two years, Jones set his sights on a business degree and undertook a diploma course as a first step. “I wanted to use my brain. I wanted to feel like I had a purpose, and I had an interest in business. I thought I would try [studying business] and see where it would take me.”

2015 STUDIES BUSINESS Propelled by his interest in business, Jones began a part-time online bachelor’s degree, which he fit in around his job at Insurance HQ. “I focused on commerce and economics to give me a good pathway; I’m especially interested in pursuing the actuarial and legal sides of the major. In my second year at university, I completed my insurance broking diploma in about six weeks, in the break between trimesters.”

2018

JOINS AUSTBROKERS Jones jumped at the opportunity to become part of a well-known brokerage, joining Austbrokers Coast to Coast, where he went on to enjoy numerous rapid promotions. “I started in an admin role and was promoted to broking and from broking to claims – and now I’m second in change of it, head of commercial claims and head of corporate claims, too. I have very good client skills. I prefer pragmatism – the simplest rule is the best result.’”

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2009 LAUNCHES INTO THE WORKING WORLD After finishing his high school career at 16, Jones went straight into the workforce, primed from several years of part-time jobs, including gigs teaching younger students the piano, trumpet, guitar and bass guitar. “I would go to a local school and teach students there; I wasn’t sure if that was what I wanted to do at that point in my life.”

2015 FINDS INSURANCE Being laid off from a welding job worked out well for Jones when it culminated in his first job in insurance. “I went to Centrelink that same day and gave them my résumé, and they told me about a job opening and set up an interview for that afternoon – and I was offered the job on the spot. [The interviewer] told me that I had the gift of gab; I ended up becoming a broker about seven months in.”

2017

LEARNS QUICKLY Eighteen months after being hired by Insurance HQ, Jones took over the entire book.

“I found insurance to be very ‘sink or swim’; I had to learn so much about how insurance works from the base level. I put in a lot of hours to get really good at it. Once I understood the basics, I could develop my knowledge and foster good connections with underwriting partners”

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PEOPLE

OTHER LIFE

TELL US ABOUT YOUR OTHER LIFE Email ibo@keymedia.com.au

CHAIRMAN OF THE BOARD

For Greg Hayes, nothing compares to being on a surfboard – that’s why he built his insurance brokerage around the sport GREG HAYES grew up in a family that loved water skiing – Hayes reports that he was “barefooting behind the boat at 10” – so the transition to surfing was a natural one. As a teenager, Hayes travelled the Pacific seeking bigger and bigger waves, a passion that necessitated devoting much

of his non-surfing time to training regimes such as running and swimming on the bottom of a diving pool during laps. These days, Hayes is mostly consumed with the demands of running Surf Travel Insurance, his thriving surfing-focused brokerage based in Burleigh Heads, so doesn’t get out on the water as much as he

would like – but he carves out as much time as he can to spend on his board. “I like to get out there at least once a week,” he says. “Especially around sunrise, there’s something special feeling the day start, in the lineup with a few mates, immersed in crystal blue water – there’s nothing like it.”

Age at which Hayes got his first surfboard

Hayes treasures the memory of spending a month surfing in Hawaii around Christmas on a 10-foot-long Jerry Lopez board

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25ft

Size of the biggest wave Hayes has ever caught (in Hawaii)

16 ft

Size of the biggest barrel Hayes has ever surfed (in Fiji)

GT INSURANCE

WORKING WITH YOU At GT Insurance we work with you to provide: •

Flexible programs to suit your clients’ business;

•

Fast and reliable turnaround on all enquiries;

•

Knowledgeable people who provide you with carefully designed options for your clients’ business;

•

Claims reporting to support risk management;

•

Professional assessors and an efficient claims recovery team;

•

Direct access to our senior management;

•

Access to GT Accident Assist - immediate and effective response to accidents.

Speak to your BDM or visit our website www.gtins.com.au to see how GT Insurance may be able to assist with your customer’s heavy motor and transport insurance needs.

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TOWNSVILLE

LOCAL REPRESENTATION THROUGHOUT AUSTRALIA WITH DIRECT

BRISBANE

ACCESS TO DECISION MAKERS. NEWCASTLE SYDNEY

PERTH

ADELAIDE

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www.gtins.com.au Insurance products are issued by Global Transport & Automotive Insurance Solutions Pty Ltd ABN 93 069 048 255 AFS Licence No. 240714, trading as GT Insurance, as agent for the insurer Allianz Australia Insurance Limited ABN 15 000 122 850 AFS Licence No. 234708. Neither we nor the insurer provide any advice on this insurance based on any consideration of your objectives, financial situation or needs. Before making a decision about it please refer to the relevant Product Disclosure Statement or policy wording which can be obtained from www.gtins.com.au

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