Insurance Business 8.01 by Key Media

insurancebusinessonline.com.au Issue 8.01

EMBRACING INSURTECH

How insurersâ&#x20AC;&#x2122; approach to startups has changed

POLITICAL RISK ESCALATES

Which countries represent the biggest threat?

MAKING INSURANCE FUN Inside SRG Group's pioneering culture

DRIVING INNOVATION Gallagher Bassett CEO John McNamara on the best way to spur transformation

HOT LIST

Meet 39 movers and shakers who are redefining insurance

HOT LIST 2019

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John Burke 03 8080 5644

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Mark Lee

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ISSUE 8.01

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CONTENTS

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UPFRONT 02 Editorial

It’s time for brokers to get back to basics

HOT LIST 2019

SPECIAL REPORT

HOT LIST 2019

Insurance Business spotlights 39 brokers, executives, regulators and tech pioneers who are bringing the heat to Australia’s insurance industry

PEOPLE

THE HEART OF INNOVATION

FEATURES

HOW TO GIVE FEEDBACK EFFECTIVELY

The art of delivering criticism without causing drama

What challenges are in store for the industry in 2019?

04 Statistics

Companies agree that political risks are increasing – so why aren’t they insuring themselves against it?

06 News analysis

The insurance industry has woken up to the value of insurtechs

08 Intelligence

AI comes to auto insurance

10 Insurer update

Australian insurers pledge not to support a massive coal mine project

12 Underwriting agencies update How small online insurers can find themselves in compliance trouble

14 Opinion

FEATURES

A REFRESHINGLY DIFFERENT APPROACH Rod Fitzgerald explains how SRG Group is shaking up the traditional perception of insurance

Legacy technology is holding the industry back

FEATURES 46 Don’t let sloppy emails ruin productivity Three ways to tame your inbox

48 Curious leadership

Gallagher Bassett Australia CEO John McNamara explains how he’s driving innovation by remaining focused on people

03 Head to head

Why being a good leader isn’t about having all the answers

FEATURES

BUSY IS NOT A BADGE OF HONOUR

Four ways to ensure you’re truly using your time effectively

PEOPLE 54 Career path

Laura Elliot brings her management expertise to insurance

56 Other life

Rocking out with broker and thrashmetal bassist Tom Richards

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UPFRONT

EDITORIAL

Getting back to basics

he insurance industry has been dominated by a handful of themes over the last few years: updating legacy technology to meet client demand for round-the-clock service, finding new talent to replace rapidly retiring employees and genuinely embracing a diverse workforce that clients can relate to. Alongside those key challenges have been regulatory changes and a push for transparency. But amid it all, have we lost track of what was once the raison d’etre of a broker’s service: choice? Where to place a risk is one of the vital elements of a broker’s business proposition – they bring expertise to the table to help clients with unique needs, especially if that client’s risk doesn’t fit the appetite of a traditional insurer. In this regard, brokers have the option to turn to lesser-known insurers or MGAs to expand choice for their clients. Indeed, the changing nature of risk has only made this role more important.

This may be a time of great change, but it’s also one in which it’s vital to remember what has made insurance thrive: having solutions for customers’ ever-changing risk needs Yet the insurance market has changed, too. Regulation has had an impact on many capacity providers; today, the possibility that a claim might be severe or occur frequently could lead some insurers to walk away from risks altogether. Market practices are also changing. Some smaller brokers have been squeezed out as insurers choose to transact by electronic means only – indeed, some prefer to only work with the big-name brokerages that can offer significant levels of commercial support. In 2019, perhaps the biggest challenge facing brokers is not so much about battling insurtechs, broadening their workforce or even falling in line with regulation; rather, it is in providing that most basic of broker benefits: capacity. It’s a challenge that both the broker and the insurer need to work together to address – the insurer by improving access, and the broker by making their value proposition more appealing. This may be a time of great change, but it’s also one in which it’s vital to remember what has made insurance thrive: having solutions for customers’ ever-changing risk needs. That’s something that can only be achieved when brokers and insurers work together. The team at Insurance Business

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EDITORIAL Managing Editor Paul Lucas Journalists Nicola Middlemiss, Alicja Grzadkowska, Bethan Moorcraft, Ksenia Stepanova News Writers Lyle Adriano, Krizzel Canlas, Terry Gangcuangco, Mina Martin, Gabriel Olano Staff Writers Tom Goodwin, Libby MacDonald, Joe Rosengarten, Ryan Smith, Heather Turner Copy Editor Clare Alexander

CONTRIBUTORS Bill Pieroni, Aytekin Tank, Carson Tate, Michelle Gibbings, Amantha Imber, Brian de Haaff

ART & PRODUCTION Designer Martin Cosme Production Manager Alicia Chin Traffic Coordinator Freya Demegelio

SALES & MARKETING General Manager Peter Smith Commercial Development Manager Sophie Knight Marketing & Communications Manager Michelle Lam

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 tom.goodwin@keymedia.com Subscription Enquiries subscriptions@keymedia.com.au Advertising Enquiries sophie.knight@keymedia.com.au peter.smith@keymedia.com.au Key Media Regional head office, Level 10, 1–9 Chandos St, St Leonards, NSW 2065, Australia tel: +61 2 8437 4700 • fax: +61 2 9439 4599 www.keymedia.com Offices in Sydney, Auckland, Denver, London, Singapore, Toronto, Manila, Bengaluru, Seoul

Insurance Business is part of an international family of B2B publications, websites and events for the insurance industry Insurance Business America cathy.masek@keymedia.com T +1 720 316 0151 Insurance Business Canada john.mackenzie@kmimedia.ca T +1 416 644 874O Insurance Business NZ peter.smith@keymedia.com.au T +61 2 8437 47OO Insurance Business UK luther.rahman@keymedia.com T +44 20 7193 0935 Insurance Business Asia peter.smith@keymedia.com.au T +61 2 8437 47OO Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as the magazine can accept no responsibility for loss.

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UPFRONT

HEAD TO HEAD

What will be insurance’s biggest challenge in 2019? From rapidly evolving technology to the royal commission fallout, the industry will have no shortage of challenges this year

Troy Filipcevic

Founder and managing director Emergence “One of the biggest challenges: helping the market understand the business risks associated with cyberattacks. We as an industry need to be more effective in communicating what that means to clients. The vast majority of the market still thinks that a cyber event won’t happen to them and that they are immune, too small, in the wrong industry, etc., to be concerned. We have seen firsthand the devastating impact a cyber event can have on a business. We need to educate them that a focus on cybersecurity, coupled with a risk transfer solution, can greatly benefit their business.”

Mark Searles

J. Patrick Gallagher Jr.

“In short, trust and relevance – particularly in an environment where the royal commission has rocked the wider industry and technology and client needs are changing rapidly. More than ever, insurance providers and brokers must actively work to maintain their relevance to customers and predict and adapt to evolving needs. We believe the answer to both of these factors lies in the ability to offer a holistic risk solution – becoming a trusted risk advisor to clients. This shift to a professional consulting-style client relationship is key to continuing to meet client needs, and that’s why our strategy is to offer total risk solutions.”

“In 2019, general increases across many lines of business can be expected, as the global economy remains robust, despite trade tensions. The biggest challenge in 2019 will be understanding that in an ever-developing, technologically driven world, risks are taking on new shapes and more complicated forms. For example, automotive vehicles are safer, and yet auto rates will continue to rise because of how expensive new vehicle accidents are due to the advanced technology contained within the car. In addition, in a data collection environment enabled by evolving technologies, cyber risks continue to rise, making cyber insurance more paramount.”

CEO and managing director AUB Group

Chairman, president and CEO Gallagher

LOOKING TO THE FUTURE Insurance companies not already grappling with cutting-edge technology should prepare to get up to speed in 2019. According to Insurance Nexus project director Ira Sopic, “a firm idea of what artificial intelligence is and its relevance is now non-negotiable for anyone who considers themselves a market contender in insurance.” Another issue likely to impact the industry well into the future is its response to climate change; Australian insurers did not fare well in the 2018 Asset Owners Disclosure Project, a survey that included 80 global insurers and their action on climate change. Against a backdrop in which extreme weather events are likely to become more frequent, AXA CEO Thomas Buberl has noted that a “plus 4°C world is not insurable”.

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UPFRONT

STATISTICS

Talking politics

Political risk is infrequent but can be catastrophic – so why don’t more companies carry coverage for it? Political risk is a fact of life for companies in today’s globalised world. Thirty-five per cent of companies surveyed by Willis Towers Watson – and 55% of those generating more than $1bn in annual revenue – have suffered losses due to political risk in recent years . Despite the awareness, only 25% of companies (or 41% of large companies) said they use

35%

of companies have suffered a political risk loss

60%

believe political risk has increased over the past year

political risk insurance. The top reason for forgoing it was a focus on other methods of risk mitigation, such as avoiding investment in particular countries. Other reasons for not purchasing political risk insurance included the perception that the coverage offered wasn’t sufficient or that the company’s exposure to risk wasn’t high enough to warrant insurance.

15%

28%

of companies do not account for or quantify political risk

conduct scenario analysis to determine political risk

NORTH AMERICA

63% 25% WHERE IS POLITICAL RISK ACCELERATING? One of the two top regions where respondents felt political risk was increasing was Europe, possibly due to the populist governments that have risen to power in several countries. As for the regions where risk is increasing dramatically, Russia and North America topped the list; respondents were particularly concerned about recent trade policies in the latter.

Source: 2018 Political Risk Survey, Oxford Analytica/Willis Towers Watson

THE DAMAGE DONE

WHAT’S ON THE RISK RADAR?

More than two-fifths of companies reported political risk losses in excess of $100m. The top three causes of loss were exchange-transfer losses, political violence and import/export embargoes.

Willis Towers Watson asked companies what geopolitical threat currently causes them most concern. Among the top responses were tensions in the Middle East, US sanctions policy, protectionism and populism, along with the political risk implications of economic crises in emerging markets like Turkey. NUMBER OF MENTIONS One Two Three

RUSSIA/CENTRAL ASIA

Populism and nationalism

Succession in Central Asia

More than $100m 43% $100m to $50m 0% $50m to $10m 29% $10m to $1m 28%

US sanctions policy

Creeping exportation

ASIA-PACIFIC

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Emerging market crises

Protectionism and trade wars

Disruption from rising China

Source: 2018 Political Risk Survey, Oxford Analytica/Willis Towers Watson

INTERNATIONAL

Regional tensions in the Middle East

Sovereign default wave

MIDDLE EAST/AFRICA Source: 2018 Political Risk Survey, Oxford Analytica/Willis Towers Watson

RUSSIA/CENTRAL ASIA

50% 27% EUROPE

70% 11% MIDDLE EAST

73% 23%

AFRICA

48% 9%

ASIA-PACIFIC

38% 5%

Percentage of companies that believe political risk is increasing

LATIN AMERICA

59% 14%

Percentage of companies that believe political risk is increasing dramatically Source: 2018 Political Risk Survey, Oxford Analytica/Willis Towers Watson Source: 2018 Political Risk Survey, Oxford Analytica/Willis Towers Watson

RESPONSES TO RISK

WHY NOT INSURE?

An overwhelming majority of companies said they deal with political risk via “exposure minimisation” – that is, avoiding or scaling back operations in countries that they believe present the biggest risk. That strategy is most prominent among companies with more than $1bn in revenue; 82% of companies in that category report scaling back their operations in risky locations, while 86% said they avoid them altogether.

Despite a keen awareness of the costs of political risk, most companies prefer to employ risk mitigation strategies rather than purchasing political risk insurance.

100%

ABLE TO MITIGATE IN OTHER WAYS

38%

80% COVERAGE IS NOT BROAD ENOUGH

60%

28%

40%

INSUFFICIENT EXPOSURE TO HIGHER-RISK COUNTRIES

20% 0%

28% 75%

68%

41%

25%

Have avoided investing in a country as a result of political risk concerns

Have scaled down operations in a country as a result of rising political risk concerns

Use political risk insurance ($1bn+ companies only)

Use political risk insurance

PREFER TO SELF-INSURE AGAINST THESE TYPES OF RISKS

15% COSTS OF COVERAGE IS TOO HIGH

13% Source: 2018 Political Risk Survey, Oxford Analytica/Willis Towers Watson

Source: 2018 Political Risk Survey, Oxford Analytica/Willis Towers Watson

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UPFRONT

NEWS ANALYSIS

The insurtech bandwagon Global insurance companies are seeing sustainable, long-term value in insurtechs, and they’re putting their money where their mouth is

GROWTH IN the insurtech space might have happened later than similar developments in other financial services industries – it reached its peak in 2016 with the launch of 177 insurtech startups – but the drop to 88 launches in 2017 doesn’t mean the insurtech gold rush is coming to an end, according to a recent Deloitte analysis on the sector. Deloitte found that funding continues to flow into insurtechs – investments in 2018 are on track to meet the $1.83bn in funds raised in 2017. Today, several insurance giants have their own investment arms focused on promoting insurtechs that add value to the industry and clients, and have helped usher in a major evolution in the contributions of these technology companies in recent years. Martha

[insurtech], but it wasn’t quite clear whether it was going to catch on,” Notaras says. “We started the fund after a lot of the distribution plays had already been created in terms of the aggregators, but at that time, nobody was really talking about that as being insurtech.” It was only when startups began proposing services aimed at personal lines (Lemonade was one of the fund’s early investments) that people started looking at insurtech as something unique in the insurance landscape. Since then, insurtechs have evolved to touch on commercial lines as well. “We’re starting to see a lot more companies that are handling commercial,” Notaras says, “and they’re not necessarily re-creating commercial insurance companies.”

“We’re starting to see a lot more companies that are handling commercial, and they’re not necessarily re-creating commercial insurance companies” Martha Notaras, XL Innovate Notaras, partner at XL Innovate, a global insurtech venture capital firm backed by AXA XL, looks back on 2015, when the insurtech space was just beginning to boom. “Suddenly, people started talking about

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Attitudes have also transformed over time. Notaras notes that in the early days of insurtechs, startups tended to regard existing insurers with contempt. Today, however, technology experts are identifying and addressing

some of the limitations facing the industry – whether it’s in data or regulation – and their contributions are being welcomed. In addition to investing in disruptive insurance models such as Lemonade and Embroker, XL Innovate has created its own startups in-house, such as New Energy Risk, which uses insurance to enable deployment of renewable energy. It has also invested in data and analytics companies that provide value to insurance applications, such as Cape Analytics, which gathers property intelligence based on AI and geospatial imagery, as well as GeoQuant, which quantifies political risk in real time. Argo Group is another insurer with its own investment outpost, Argo Ventures, which backs early- and growth-stage startups in financial services and insurance. The fund focuses on insurance technology, risk management, fintech, enterprise software and any other tech solution that has an insurance component to it, according to Oleg Ilichev, head of investments at Argo Ventures.

INSURTECH FAST FACTS

Insurtechs focused on personal lines have drawn the lion’s share of investment dollars ($5.8bn) over the past decade

In comparison, commercial lines saw just $1.3bn worth of investment between 1998 and the first half of 2018

Venture capital funds remain the largest source of insurtech financing, accounting for 91% of investments in the first half of 2018

“Whenever there’s a tech startup that touches insurance, we want to be front and center on entrepreneurs’ minds,” Ilichev says, adding that for seed-stage companies, Argo Ventures’ experts will be “their eyes and ears and partners in insurance”. For growthstage insurtechs, Argo Ventures helps with

ficial, though he notes that not all insurtechs are built for the long term. “The bigger question is who’s going to be the winner,” he says. “I think there are a lot of companies that are just building features and are not really long-term, sustainable, disruptive businesses that are venture backable.”

“Insurtechs that are actually building software to make the brokers much better at their jobs are going to be the successful approach” Oleg Ilichev, Argo Ventures continued expansion and figuring out the next iteration of their businesses. Ilichev says all areas of the insurance value chain are seeing new entrants to the marketplace that are contributing something bene-

He adds that brokers need not worry about being replaced by technology. While some insurance products can be delivered directly to insureds, many insurance offerings become bespoke very quickly, depending on the type

The United States remains on top in terms of the number of insurtech startups created, boasting 51% of the companies launched in 2018, trailed by the UK (8%) and India (4%) Source: 2018 Insurtech Investment Trends and Insights, Deloitte

of class being underwritten. “We’ve found that the brokers are going to be here to stay,” Ilichev says, “and insurtechs that are actually building software to make the brokers much better at their jobs are going to be the successful approach.” By now, it’s clear that insurtech isn’t just a fad, though what shape or form the sector will take in the coming years is anyone’s guess. For future investments, the XL Innovate team is looking for businesses that are addressing pain points in the commercial insurance process. “One of the defences has always been that commercial lines are so complex that insurtech won’t make progress into that,” Notaras says, “but we’re seeing that actually there are data and analytics that drive the commercial lines, and also that there are certain operational efficiencies that you can drive into.”

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UPFRONT

INTELLIGENCE CORPORATE ACQUIRER

TARGET

PRODUCTS COMMENTS

AUB

Adroit Insurance & Risk

Representing $100m in GWP, Adroit operates 12 branches and services 25,000 customers

AXA XL

New Ocean Capital Management

AXA XL’s reinsurance arm has acquired the asset manager as a way to bolster its alternative capital strategy

The Carlyle Group

Sedgwick

Announced in September, The Carlyle Group’s US$6.7bn majority investment in the claims provider was finalised in last few days of 2018

Gallagher Bassett

Aurenda

Perth-based Aurenda specialises in reducing workers’ compensation costs by providing injury management, safety and training services

Oracle

Professional Insurance Brokers; Platinum Insurance Brokers

The two acquisitions have helped Oracle’s business grow from $12m to $51m in just three years

RenaissanceRe

Tokio Marine Holdings

The deal remains subject to regulatory approvals but is expected to close in the first half of 2019

CFC Underwriting expands cyber offering

CFC Underwriting has updated its cyber product with improved business interruption cover and additional protection for cybercrime activities. Under the new policy, business interruption cover will be triggered by IT system failure as well as malicious cyber events. Supply-chain business interruption cover is also available to protect insureds if a supplier is impacted by a cyber event. CFC has also added affirmative crime cover for cryptojacking, a growing threat in which a hacker hijacks the processing power of a computer network to mine cryptocurrency.

Chubb launches terrorism risk service for multinationals

AUB announces latest acquisition

AUB confirmed yet another acquisition in November, as the ever-expanding group took a majority interest in Victoria-based brokerage Adroit Insurance & Risk. Representing $100m in GWP, Adroit operates 12 branches and services more than 25,000 customers across Victoria and New South Wales. Commenting on the announcement, CEO and managing director Mark Searles said the acquisition would help AUB further its mission to be the leading provider of risk management, advice and solutions. “Adroit’s focus on acting first and foremost as a specialist risk advisor to its clients, alongside its strong fundamental of partnerships, make this move a logical decision,” Searles said.

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Chubb has introduced a new service for multinational and large middle-market businesses that pools its terrorism and political violence [PV] underwriting, risk engineering, global security, catastrophe modelling and digital expertise. First, a Chubb risk engineer assesses a client’s key locations using a staged process of risk identification, protective security and risk mitigation; this is then combined with mobile risk analytics. Chubb says the Terrorism Risk Evaluation Service was developed following feedback from corporate customers who wanted to better understand their terrorism and PV exposures.

PEOPLE Flamingo AI launches pioneering automotive AI product

In a move it’s touting as a “world first”, ASX-listed Flamingo AI has launched an innovative new virtual assistant for the auto insurance space. Dubbed MAGGIE, the machine-learning virtual enquiry assistant aids customers and employees with enquiries related to auto insurance. MAGGIE is pre-seeded with auto insurance knowledge, natural-language text-based conversations, and more than 1,200 auto insurance FAQs and paraphrases. It also learns rapidly from every interaction and provides analytics on customer experience.

QBE provides cybersecurity platform to SMEs

Insurance giant QBE is giving its SME customers access to a comprehensive cybersecurity platform via a partnership with startup Zeguro. Zeguro’s platform allows users to automate their cybersecurity processes and detect cyber risks; it also offers recommendations on how to improve risk mitigation. “SME businesses typically do not have the resources to protect themselves from expensive breaches,” said Zeguro CEO Sidd Gavirneni. “Zeguro provides the continuous monitoring and management tools for this segment to manage their environment.”

NTI participates in blockchain trial

Specialist insurer NTI has become the latest major player to dabble in blockchain, partnering with BeefLedger, a blockchain security and payments platform, for an innovative new trial. The December trial saw premium live cattle transported from South Australia to a processing facility in New South Wales before being frozen for shipping to Shanghai. It’s hoped the technology will boost food safety and improve animal welfare, while also monitoring export security for Australian beef. “We’re excited by the prospects this presents across several streams of Australian industry,” said NTI CEO Tony Clark.

NAME

LEAVING

JOINING

NEW POSITION

Brett Burnham

N/A

Gallagher Bassett

Client relationship manager

Karen Chester

Productivity Commission

ASIC

Deputy chair

Stuart Davies

Gallagher

BMS Australia

Director

Samantha Ford

Gallagher

BMS Australia

Corporate broker

Chet Richardson

IAG

Gallagher

Sales leader

Brad Smith

Allianz Partners

Gallagher Bassett

COO

David Teall

N/A

Gallagher Bassett

GM of finance

John Torcasio

Auto-Owners Insurance (US)

Sportscover

Sydney branch manager and senior underwriter

Sharan Uppal

N/A

Honan

Chief client officer

Sean Williamson

Independent consultant

Freedom Insurance

CEO

Gallagher Bassett names new COO

Brisbane-based Brad Smith has been named the inaugural chief operating officer for third-party claims administrator Gallagher Bassett. In his new role, Smith will manage all operational business units within GB Australia across both personal injury and specialty markets. Prior to joining GB, Smith was chief sales officer at Allianz Partners, where he led a national workforce covering sales and account management across the travel, health, automotive and property portfolios.  “Brad’s experience will help to ensure that the introduction of the [COO] role makes a significant impact on the quality and the level of service that we provide to our clients,” said Gallagher Bassett CEO John McNamara.

Freedom Insurance reshuffles leadership

After being criticised for its unscrupulous telephone sales tactics at the royal commission, Freedom Insurance saw Craig Orton step down from his role as CEO in December. He was replaced by Sean Williamson, who had been working as a consultant to the company. Williamson has 25 years of experience in the industry, including serving as general manager of Australia’s largest life insurer, TAL. “[Sean’s] knowledge of the life industry, operational experience and customer-centric approach are well suited to achieving excellent customer outcomes and maximising the value within Freedom for shareholders,” said Freedom board chair Pauline Vamos.

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UPFRONT

INSURER UPDATE NEWS BRIEFS Hailstorm damage bill tops $670m in NSW

The hailstorms that lashed Sydney at the end of 2018 have already cost insurers more than $670m, and thousands more claims have yet to be settled across the region. In early January, the Insurance Council of Australia revealed that more than 81,000 claims had already been lodged following the December 20 event; the repair bill currently stands at $673.9m. About three-quarters of the claims relate to vehicle damage, but property also took a battering – roofs, awnings and solar panels all suffered from the tennis-ball-sized hailstones.

IAG considers selling stake in SBI General Insurance

Insurance giant IAG is pondering selling part of its stake in SBI General Insurance, a joint venture with India’s largest lender, the State Bank of India. IAG holds 26% in SBI, but recent reports suggest the firm has started preliminary talks to hire an investment bank to manage a future sale. Founded in 2010, SBI sells motor, health, travel and home insurance, along with aviation, fire, marine and liability products.

Zurich restructures to enhance broker focus

Zurich Australia gave its leadership structure a shake-up at the end of 2018 with the aim of enhancing its focus on the commercial intermediated insurance market. Giles Crowley stepped into the newly created role of chief distribution and deal management officer, while Sean Walker took charge of Zurich’s commercial insurance portfolio, in addition to his oversight of the firm’s SME proposition.

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Zurich also expanded Hillary Bates’ remit to include operations, alongside her current role as chief claims officer. “Our simplified structure will make us a stronger and more deeply connected insurer, one that’s better able to anticipate the rapidly evolving needs of our broker partners and customers,” said Zurich Australia general insurance CEO Tim Plant.

QBE announces plan to drive massive cost savings

Insurance heavyweight QBE has announced a three-year operational efficiency program and a revamped reinsurance structure that it hopes will result in $130m in net cost savings. Following the sale of its insurance operations in Puerto Rico, Indonesia and the Philippines, QBE restructured its 2019 reinsurance program to “better suit the group’s simplified portfolio and underwriting risk profile.” Meanwhile, the operational efficiency program will see QBE streamline its operations, consolidate technology tools, reduce IT run costs, and re-engineer and automate processes, targeting an expense ratio of around 14% by 2021.

Allianz reveals businesses’ top exposures for 2019

The eighth annual Allianz Risk Barometer survey has pinpointed changes in legislation and regulation as the most pressing risk facing Australian businesses in 2019. The study found that 36% of respondents had concerns about increasing and more onerous regulation. Business interruption was the second most pressing concern, selected by 35% of respondents. Cyber threats, which took the top spot in 2018, dropped to third place; 30% of respondents identified cyber exposures as the biggest concern for their business.

Insurers ditch coal project Following a major outcry, QBE and Suncorp have said they won’t support the Carmichael coal mine project Australian insurers QBE and Suncorp have pledged not to provide support for Adani Group’s Carmichael coal mine and associated rail project in Queensland, according to the Unfriend Coal campaign. Other major insurers, including Allianz, AXA XL, Swiss Re, Munich Re, FM Global, Generali, Zurich and SCOR, have explicitly refused to insure the project or previously pledged not to provide cover for new coal projects. The move by the insurance giants came in response to an open letter sent to insurers by a coalition of 73 organisations, including Market Forces and the Unfriend Coal campaign, urging them to refrain from insuring the Carmichael coal mine in the light of its climate, environmental and social impacts. The coalition estimates that the US$1.5bn project, consisting of a major thermal coal mine and roughly 200km-long rail line, would produce 4.6bn tonnes of CO2 emissions over the mine’s approved lifetime. The coalition also noted that developing the mine would open up the huge reserves of Queensland’s Galilee Basin to exploitation, expose the Great Barrier Reef to irreversible damage due to dredging and ship traffic, and encroach on the lands of the Wangan and Jagalingou Traditional Owners. Insurers were put in the spotlight after Adani failed to secure private financial backing

for the controversial project, forcing the Indian company to announce that it would finance the project on its own – but the project cannot be built or operated without insurance. “With Adani claiming to fund the Carmichael project itself, it could be the decision of a major insurer that decides whether

“It could be the decision of a major insurer that decides whether this climate-wrecking project goes ahead” this climate-wrecking project goes ahead,” said Julien Vincent, executive director of Market Forces. So far, Lloyd’s, Beazley, Hannover Re and Starr have not committed to refusing Adani insurance, though Lloyd’s, Beazley and Starr did note that they are not currently involved in the project. Sixteen insurers with no policies on coal insurance have yet to respond. “The giant Carmichael coal mine is a test case that demonstrates clearly whether insurers care about managing climate risk or are more interested in profiting from climate chaos,” said Lucie Pinson, European coordinator of the Unfriend Coal campaign. “Companies that are unwilling to rule out insuring this disastrous project are threatening the future of our climate, the unique environment of the Barrier Reef and the wellbeing of local people.”

Q&A

Mark McNab National practice leader, transport and logistics AON

Fast fact McNab took the helm of Aon’s transport and logistics practice in November, having been promoted from client manager after less than three years with the firm

Transport and logistics in 2019 What trends are you seeing emerge in the transport and logistics sector? At the moment, we’re seeing the increased integration of automation coming through the sector, be it through telematics or through automated processes. While that’s principally the biggest emergence that’s coming through, we’re also seeing changes in the legislative space with Chain of Responsibility legislation, and that’s driving an increased focus on practices, procedures, safety and compliance.

What are some of the major opportunities and risks associated with automation? The opportunities really lie in cost efficiencies. A lot of manual processes are quite labour-intensive and quite expensive, so being able to automate those processes does deliver an opportunity for efficiencies, but by integrating newer technologies, you also open yourself up to new risks. One of the key challenges here is that these technologies create exposures that current insurance may not necessarily respond to, so while there’s an opportunity for businesses to drive efficiencies, they must be weighed against the new risks and coverage.

Telematics is also making waves in the sector, although it remains an expensive investment – do you think it’s a worthwhile one for SMEs? It’s very much case-by-case – importantly, organisations really need to know what they want to achieve by integrating tech such as telematics into their systems. If they’re integrating telematics systems and anticipating that they’ll automatically see a reduction in insurance premiums, for example, then I think they need to be quite conscious about that.

What are some of the biggest risks facing the sector? The transport and logistics sector has a diverse risk profile, but for me, the four big ones would be technology, legislation, people risks and safety practices. Technology is really the biggest one – it’s gaining pace exponentially, and it’s significantly changing the risk profile of our clients. Legislation is also an important one to consider, especially moving into 2019, because of the recent Chain of Responsibility legislation – there will be significant consequences should operators ignore those changes. People risks have always been present for the sector, and they always will be, but the changing landscape means there’s now crossover into the technology space on that front. Finally, safety practices and good measures – if you get these areas wrong, it can have detrimental impacts on the bottom line.

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UPFRONT

UNDERWRITING AGENCIES UPDATE

Online firms challenged by compliance Without resources to handle compliance, online insurers could quickly find themselves in trouble

arm, says smaller insurers tend to enter the market in compliance but open themselves up to violations over time. “Certainly, when they get set up, they get all the advice from lawyers and accountants, etc., on what licences they have to get – whether that’s an Australian Financial Services licence or the adoption of the General Insurance Code of Practice, etc.,” Muir says. “But then, because most of their spend is in other areas, they can’t afford a full-time compliance expert, and quite

“Quite often, the small changes they make over time start to give them compliance consequences”

Smaller online insurers have taken Australia by storm in recent years, and many industry commentators have praised the newcomers for their ability to adapt quickly and embrace innovation. However, while the firms are more agile than their corporate competitors, their financial resources are certainly restricted – and it’s a challenge that could be putting them at risk.

NEWS BRIEFS

“One area I’m getting asked to help with more and more is with smaller online insurers,” says Paul Muir, a veteran in the insurance compliance space. “Often, they’re still in startup mode, so they can’t really afford a fulltime compliance specialist.” Muir, who spent almost 30 years rising through Suncorp’s ranks to become executive manager of compliance for the firm’s insurance

POP partners with Allianz for M&A offering

After arriving on the Australian insurance scene late last year, Sydney-based startup POP Insurance Holdings has launched Fusion M&A, a specialist underwriting agency. Backed by Allianz Global Corporate Specialty, Fusion M&A offers a full suite of transactional insurance solutions, including warranty and indemnity, tax opinion, and contingent liability, serving the private equity and corporate M&A marketplace. The agency is also developing technology designed to enhance M&A insurance transactions.

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often, the small changes they make over time start to give them compliance consequences.” While the size and scale of an operation is taken into account when reviewing breaches, Muir says the era of small firms getting off lightly may be over. “Laws take scale and size into account, but I think that’s old thinking,” he says. “When you look at the customer, it doesn’t matter who they buy from, they’re entitled to receive the protection that the law and general insurance code offers to them. At the end of the day, it shouldn’t matter from a consumer perspective who they buy insurance from – they’re entitled to have the protection of all the consumer laws.”

Sportscover eyes expansion with new appointments

Specialist underwriter Sportscover has signalled plans for further expansion after adding two new members to its Sydney team. John Tarcasio became Sydney branch manager and senior underwriter, while Tim Smith joined as an underwriting assistant. “These are two really important and exciting appointments for Sportscover,” said CEO Simon Allatson. “With the insurance and sports markets going through various transformations, having two experienced professionals join our team will bolster our plans for expansion.”

Q&A

Gerry Power National head of cyber sales EMERGENCE INSURANCE

Fast fact Power has 25 years of experience in the insurance industry; before joining Emergence, he was a senior underwriter at CGU

Keeping up with the cyber landscape Cyber threats are constantly evolving – can insurance really keep up? It is a challenge, and it takes time and a lot of research, but it’s also about the partnerships you have. Lloyd’s of London is the security behind Emergence, and one of the reasons we chose an insurer with Lloyd’s is because they have a global reach in terms of writing cyber in different markets. Our particular insurer has a big book in the US, so they see trends in the US market that they’re not seeing elsewhere, and they provide us with a heads up of what’s going to come into the Australian space farther down the line. With that sort of insight, we’re able to enhance the wording before the market has an issue so that when the issue does arise, Emergence has already dealt with it. We’re also a partner of Verizon, the global forensic organisation and telecommunications company, and we’re only one of two underwriters in the world that provides data into their data breach investigation report. Out of that partnership, we get insights as to what’s trending and what’s happening that maybe wasn’t happening before.

Are there any emerging risks in cyber that brokers and SMEs aren’t fully aware of? One thing we’re seeing is a change from some of the more sophisticated criminals – instead of finding

Three directors re-elected to UAC board

Three directors on the board of the Underwriting Agencies Council were re-elected in December to another two-year term: Steadfast Underwriting CEO Simon Lightbody, Millennium MD Heath Amber and Axis national development manager Emily Walker. Amber was also elected as secretary and public officer, while Allstate Underwriting director Trent Brown filled an additional vacant seat on the board. NM Insurance CEO Lyndon Turner was re-elected as board chair, while Lion Underwriting MD Kurt Nilsen was re-elected as deputy chair.

companies to hack, they’re developing tools that enable other people to do that. For example, they develop a tool to create a denial of service attack to take down a website, and instead of them doing it themselves, they resell the kit to allow someone else to do it. That way, they’re creating revenue without committing any criminal activity. Another thing that’s top of mind for us, and it’s what I describe as a train wreck on its way, is the Internet of Things. We’ve got all these connected devices making our life a lot more enjoyable and a lot more streamlined, but many of these devices are developed for a plug-andplay market. The challenge with that is those devices come with default settings, and I can Google the default code and there you’ll have it. Users need to change the default settings; otherwise, it’s like having your back door open at home – they can just walk in.

Do you think it remains a challenge for brokers to communicate cyber risk to clients? Most definitely. Brokers are getting a lot of pushback from clients who think it won’t happen to them because they’ve got data in the cloud or the latest anti-virus – but buildings have fire extinguishers, they have sprinklers, they have fire retardant doors and floors, and yet people have property insurance. So there’s still a huge education process that needs to happen with the end customer.

Underwriter completes annual grants program

Community Underwriting has revealed the latest recipients of its grants program, which awards 5% of the agency’s annual surplus to clients that have renewed their insurance policies. Now in its fifth year, the Small Grants program has assisted 33 projects. This year’s grant projects include upgrades to a greyhound rescue facility, wellbeing workshops in a primary school in a high-risk area for mental health and suicide, and a community Repair Café that allows members to repair, reuse and extend the life of household items.

DUAL confirms Australian leadership changes

DUAL has announced several changes to its Australian leadership team. Emily Winwood was named to the new role of global head of digital distribution. Michael Ussher became Asia-Pacific commercial manager, leading the commercial functions of SME underwriting strategy, portfolio analysis, marketing, digital strategy and management of key national broker relationships. Finally, Kerryn Symes was promoted to Southern regional manager, managing DUAL’s brokers in Victoria, South Australia and Tasmania.

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UPFRONT

OPINION

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Past, present and paradox Insurance was an early adopter of technology – and it’s now lagging behind because of it, writes Bill Pieroni MENTION THE insurance industry to a layman – or even an industry insider, for that matter – and the image that springs to mind is usually not one of a pioneer on the cutting edge of technology. To be fair, that reputation isn’t exactly undeserved. The paradox at the heart of the matter is that insurance was one of the first industries to aggressively use technology and now often finds itself lagging behind not in spite of that fact, but because of it. Where some other industries might be able to deploy state-of-themarket tech solutions, insurance enterprises often must navigate the complex process of integrating them into their existing – perhaps decades-old – infrastructure. It’s not surprising that the industry is seen as a tech laggard, open to disruption by nimble insurtech firms. As one of the earliest adopters of computing technology, the insurance industry has matured through three increasingly sophisticated periods. In the 1970s, the goal of ‘data processing’ – as we called it back then – was to support business through cost optimisation. The first forays involved using technology as a tool to efficiently execute non-core activities such as billing and printing. In essence, the computer was simply a more sophisticated adding machine or typewriter – but this established the groundwork for development. In the ’80s and ‘90s, the industry continued to marry new technology with legacy processes, but with a more sophisticated understanding of its potential. Computing technology was increasingly incorporated into core areas such as claims and underwriting. ‘Systems integra-

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tion’ became the watchword as solutions dealt with managing the transfer and distribution of information within the enterprise. As companies realised they could leverage technology to reduce costs and increase revenue, they began to create tech-centric processes. At the turn of the millennium, insurance turned to technology to deal with changing consumer demands and product

transformational change. Budgets become dominated by maintenance expenses, and skills are geared to last-generation capabilities. Shareholders often baulk at near-term outlays for the potential of long-term benefits. Successful long-term value creators are positioning themselves to deal with these pressures by embracing the new technology era. This Outcome Era includes several characteristics: The merging of operations and technology to develop and deploy fundamentally new operating models beyond simply optimising revenue and expenses Merging business and technology to create differentiating capabilities to increase strategic flexibility and operating adaptability A focus on positioning the business to most effectively take advantage of opportunities to expand into new products, customer segments, geographies and channels An acute awareness of option value in strategy and tactics, an appreciation of value management as a key skill, and the

“The industry must deal with the limitations born of legacy. It’s difficult to simultaneously support legacy capabilities while funding and executing transformational change” imperatives and the internet phenomenon. Are we now in a fourth era? Somewhat. Around 2015, the Outcome Era emerged, with a focus on the integration of operations and technology to create novel business models and enhance positioning. Certain inevitabilities drive these developments. Data is front and centre. Customers will demand digital interaction across devices. Change driven by market forces is increasing at an accelerated rate. Technology disruption will continue to occur across the insurance value chain, and established players need to leverage the lessons of the insurtech revolution. In addressing these inevitabilities, the industry must deal with the limitations born of legacy. It’s difficult to simultaneously support legacy capabilities while funding and executing

prioritisation of outcomes Embracing digitisation as the most effective way to achieve and support change Across all of these activities, those who execute the transition into the Outcome Era understand that throwing technology at every problem is not the path to success. By making purposeful decisions aligned with strategic intent, they’re positioning themselves to thrive in the 2020s and beyond. Bill Pieroni is president and CEO of ACORD, the standards-setting body for the global insurance industry. His insurance career has spanned technology, operations and executive roles with leading carriers, brokers and consultants.

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PEOPLE

THE BIG INTERVIEW

THE HEART OF INNOVATION Industry veteran John McNamara, chief executive officer of Gallagher Bassett Australia, shares why innovation must be driven by a supportive and engaging workplace culture IN HIS two years at the mast of Gallagher Bassett Australia, John McNamara has worked hard to establish a culture of innovation, introduce a new claims system, expand the business and pioneer new solutions for an evershifting insurance marketplace. As with many others who work in insurance, McNamara ended up in the industry by accident. In the late 1980s, he was working in customer service across a variety of industries when he came across a job posting that would change the course of his future career. “I responded to an opportunity to join a claims agent,” he says. “That role was a team leader in a workers’ compensation team – so that’s how I got started in the insurance industry, way back when.” Since then, McNamara has been a frontline observer to the many changes that have taken place in insurance. The way service is delivered has been one of the primary shifts during this time, due in no small part to the increased influence of technology in the workplace. “The service that was being delivered by the industry then versus now is like chalk and cheese,” McNamara says. “Back then it was all about responding in a reasonable timeframe via letter and answering the phone if it rang, rather than proactively engaging.”

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A variety of roles followed over the next few decades, and McNamara eventually found himself at Gallagher Bassett in 2004. With his extensive experience delivering service in a highly technical, transactional environment – developed further during his time leading the company’s workers’ compensation team – McNamara was ideally placed to step into the CEO job in 2016.

industry are used to hearing things like ‘you are our future’,” McNamara says. “I’ve tried to make my message ‘you are our present – your time is now’. Young people are typically the forefront of the service delivery process, solving problems for customers in the here and now. That’s why a lot of our best ideas come from our people on the ground – they are the heart of innovation for Gallagher Bassett.”

“Young up-and-comers in the insurance industry are used to hearing things like ‘you are our future’. I’ve tried to make my message ‘you are our present – your time is now’” Innovation requires action ‘Innovation’ is an oft-abused word in the insurance industry, but since taking on the role of CEO, McNamara has seen it as integral to Gallagher Bassett’s ethos, both now and into the future. Innovation often comes from within, he notes. Handing power back to employees gives them a greater sense of purpose about their role and enables them to have a more effective stake in the way the company is run. “Young up-and-comers in the insurance

To better facilitate this process, McNamara and his team established an innovation framework, which has provided staff with the opportunity to think and operate outside of their normal day-to-day roles. “Encouraging staff to have an impact on the business is the logical thing to do,” McNamara says. “But to do that, you have to make the opportunities for innovation obvious. You have to make it easy for people to contribute, and you have to make it rewarding.”

PROFILE Name: John McNamara Title: Chief executive officer, Australia Company: Gallagher Bassett Based in: Melbourne Years in the industry: 30 Fast fact: Initiatives McNamara has overseen during his time as CEO include expansion into the Northern Territory and Western Australia, signing the CEO Pledge to promote inclusive workplaces, launching a diversity committee, and expanding GBâ&#x20AC;&#x2122;s self-insurance and catastrophe response divisions

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PEOPLE

THE BIG INTERVIEW

McNamara’s people-centric style of management is also evident in the company’s approach to diversity and inclusion, where staff-driven initiatives are often pushed to the forefront. He actively strives to make the industry an environment where people from all walks of life are encouraged to join, with the understanding that diversity can enhance Gallagher Bassett’s ability to respond to its customers’ needs. “We deal with people who have suffered a loss one way or another,” McNamara says. “Having staff on the phone who can empathise with that individual’s situation and

quickly recruited a team of 25 people who were mostly new to insurance, and the entire GB organisation rallied behind them to ensure services were ready to go from day one. The new office also required the creation of a new online claims platform, the Return to Work LaunchPad, in less than six weeks. Yet this hard work paid off – within 12 months, the team were recipients of ANZIIF’s Innovation of the Year Award in recognition of the online LaunchPad. They’ve also been recognised for becoming valued members of the NT community, thanks to their charitable partnerships with NT Police Fire Emergency Services,

“You have to make the opportunities for innovation obvious. You have to make it easy for people to contribute, and you have to make it rewarding” deliver service in a way that is consistent with that individual’s needs requires a very diverse group of people, all of whom need our support and encouragement.”

The Gallagher Way These initiatives – and indeed, the company’s entire approach – can be traced back to the vision known as ‘the Gallagher Way’, written by Robert E Gallagher back in 1984. Serving as the philosophical foundation of the organisation, McNamara describes it as an intentional attempt to make a positive impact in the surrounding communities and in wider society. He points to Gallagher Bassett’s recent Northern Territory expansion as a great example of the Gallagher Way in action. Led by two long-standing GB staff members who transferred from Sydney and Adelaide, GB’s NT launch provided an opportunity for them to take on greater responsibility while also taking a significant step forward in their careers. They

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Territory Families and the Alabut Families Indigenous Co. Another big advancement that’s been rolled out over the last 18 months has been GB’s proprietary claims system, Luminos, which McNamara calls “a real game-changer for us ... Through sophisticated automations, it removes lot of the mundane transactional work from claims management, enabling our staff to focus on customer service and supporting clients to manage complex claims.” McNamara still looks to the Gallagher Way to chart a course for the future, including this year’s expansion into Western Australia. It also guides the positive impact the company can have beyond the office. “It all really starts in the workplace,” McNamara says. “We want to offer a supportive and team-oriented culture in which employees can thrive. I know that if we take care of our people, they will take care of our clients and our communities.”

GALLAGHER BASSETT AUSTRALIA AT A GLANCE

PRESENCE Has offices in Melbourne, Brisbane, Adelaide, Darwin, Perth and Sydney with a team of 900+ claims management experts

SERVICES Provides workers’ compensation, general insurance, and catastrophe claim and risk mitigation solutions to insurers, brokers, government and corporate organisations

CLIENTELE Serves as claims agent for Comcare, Comcover, WorkSafe Victoria, RTWSA, icare Insurance for NSW, icare HBCF and the NT government, as well as many large corporations and insurers

RECOGNITION Winner of ANZIIF Innovation of the Year (2018), ANZIIF Service Provider to the Industry of the Year (2017) and ANZIIF Youth Development Employer of the Year (2016)

SPECIAL REPORT

HOT LIST 2019

HOT LIST

2019

Insurance Business spotlights 39 movers and shakers who are setting Australia’s insurance industry on fire A VERITABLE who’s who of the Australian insurance space, Insurance Business’ annual Hot List includes 38 key figures who turned up the heat in 2018 and are set for even bigger and better things over the next 12 months. From insurtech founders and industry disruptors to established veterans who remain at the top of their game, everyone featured on the following pages is doing their part to push Australia’s insurance sector forward. While there are just 39 individuals featured on

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this year’s list, there was no shortage of worthy candidates, proving that the industry provides a positive and challenging work environment for many high-achieving professionals. External appreciation for the rewarding career opportunities insurance offers might be lacking at times, but this year’s Hot List demonstrates that there are plenty of professionals who have found themselves excelling in the industry and are happy to remain in it.

HOT LIST 2019

HOT LIST INDEX NAME COMPANY

BRIAN SIEMSEN

PAGE

Almond, Matt

High Street Underwriting

Ascani, Diego

Sedgwick

Baum, James

Aon Australia

Bhatia, Vivek

QBE

Buck, Jonathan

Huddle

Byrnes, Danny

Accident and Health International

Clark, Tony

National Transport Insurance

Coates, Damien

DUAL Australia

Crowley, Giles

Zurich

Ellis, Linda

Steadfast

Enthoven, Richard

The Hollard Insurance Company

Fagen, Colin

Blue Zebra

Fairley, Kate

Simplex Insurance Solutions

Feldman, Simon

Sound Insurance

Filipcevic, Troy

Emergence Insurance

Gumm, Rebecca

Allianz

Hayne, Kenneth

Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry

King, Jared

AIG

Lingafelter, Mark

Berkshire Hathaway Specialty Insurance

Lyons, Sarah

Gallagher

MacLean, Hamish

Zurich

MacLeod, Iain

Allied World

Milliner, Mark

IAG

Parry, Maria

Austcover

Power, Gerry

Emergence Insurance

Quintin, Daniel

Gallagher

Ross, Jonathan

Aviso

Sanfilippo, Sam

Vero

Shaw, Roz

Gallagher

Shipton, James

ASIC

Siemsen, Brian

Claim Central Consolidated

Standfield, Shaun

Insurance Advisernet

Stephenson, Katie Marsh

Trehy, Eoghan

Macquarie Business Bank

Tumelty, Racheal

Gallagher

Ware, Adam

BJS

Wedlock, Tim

AEI Insurance Broking

Wilby, Jason

Huddle

Willsford, Prue

ANZIIF

MD and global CEO CLAIM CENTRAL CONSOLIDATED

In 2017, Claim Central Consolidated founder Brian Siemsen released an innovative digital claims platform, dubbed ClaimLogik, which connects carriers, brokers and customers to a full supply chain of adjusters, field assessors and building contractors. Since then, the platform has been deployed across four continents, and Claim Central Consolidated continues to go from strength to strength. Siemsen has already predicted a “huge” 2019 for the firm after the company signed a major three-year deal with 360 Underwriting Solutions in December to manage all of its commercial motor claims. “We have several new features to the ClaimLogik platform which will further enhance the experience for the customer, broker and claim manager,” Siemsen told Insurance Business after signing the deal. He also detailed the company’s plans to target new markets in the coming year. “The rapid expansion of our North American business continues to grow, coupled with expanding our technology and claim services business locally, in New Zealand and South Africa,” he said. “We are also looking to open an office in Europe at the end of 2019. We’re committed to the ongoing disruption of the insurance industry through the ongoing development of innovative technologies that aim to enhance the experience for customers while giving clients a strong competitive advantage.”

MARK LINGAFELTER President BERKSHIRE HATHAWAY SPECIALTY INSURANCE, AUSTRALASIA

With more than 30 years of experience in the global insurance market, Mark Lingafelter has been a senior leader in some of the industry’s biggest firms, including a stint as chief underwriting officer for QBE’s Asia-Pacific operations and 11 years as managing director of Chubb Australia. While Lingafelter has yet to complete a full year with BHSI, having been appointed to the role of president last June, the firm has made no secret about its growth ambitions, and all eyes will be on Lingafelter as he helps to execute its expansion strategy. “With more than 30 years of experience in the global insurance market, Mark is well qualified to lead our ongoing profitable growth in Australia and New Zealand,” BHSI president and CEO Peter Eastwood said when announcing Lingafelter’s appointment last June.

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SPECIAL REPORT

HOT LIST 2019 JAMES SHIPTON Chair ASIC

DIEGO ASCANI CEO, Australia SEDGWICK

Diego Ascani joined Sedgwick (formerly Cunningham Lindsey) in January 2017 as chief operating officer, but a major merger saw him appointed Australian CEO less than two years later, in August of 2018. In his new role, Ascani is charged with overseeing insurance, loss adjusting, forensic accounting, TPA and building restoration services for the Australian operations of the world’s largest claims administrator – a weighty task made possible by his extensive experience. Sedgwick is eager to capitalise on the momentum from its recent integration with Cunningham Lindsey, and the group has set its sights on continued growth – something Ascani will play a key role in driving during 2019 and beyond. “We are now able to extend our global capabilities to our local clients as well as extend existing service to international corporate clients based in Australia,” Ascani said. “Having recently joined the Sedgwick family, the enthusiasm to work together has been overwhelming.” Prior to joining Cunningham Lindsey, Ascani racked up more than a quarter century of experience in the insurance space, serving as head of insurance and advisory services for tech firm Xchanging’s Australian operations and also putting in time as a director of insurance advisory services with PwC.

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A certified veteran in the regulatory and financial space – both domestically and internationally – James Shipton was appointed chair of the Australian Securities and Investments Commission in early 2018 and has just completed his first full year at the helm of the organisation. In addition to serving as the head of Australia’s financial watchdog, Shipton leads a research centre at Harvard Law School, where he is the executive director of a program on international financial systems. Shipton’s previous compliance and

regulatory roles include executive director and commission member for the Hong Kong Securities and Futures Commission, head of government and regulatory affairs for Goldman Sachs’ Asia-Pacific operations, and managing director of Compliance Asia. Shipton ruffled more than a few feathers towards the end of 2018 after ASIC recommended the abolition of commissions on all general insurance products in its submission to the royal commission. With four years of his term still to go, Shipton will be charged with guiding Australia’s financial sector through some serious changes and will be tasked with keeping the industry in check in a post-royal commission world.

IAIN MACLEOD SVP, Australia country manager ALLIED WORLD

With two years as country manager for Allied World now under his belt, Iain MacLeod has firmly settled into managing the day-to-day operations of the company’s Australian business. Responsible for sales and distribution initiatives for both commercial and retail segments, MacLeod works directly with clients, as well as via broker and agent channels. He’s also responsible for the direct and facultative book at Allied World’s Lloyd’s syndicate 2232 and the Asia-Pacific trade credit book. Allied World has enjoyed phenomenal success over the past two years, due in part to MacLeod’s strong leadership, and has gone from producing approximately $11m of business in 2016 to around $44m in 2018 – an increase of almost 300%. “I get really positive feedback from our broker partners, as, being a younger organisation, we understand it’s important to be responsive and straightforward,” MacLeod says. Prior to joining Allied World, MacLeod

spent 23 years at Marsh, where he held senior positions in London, Bermuda and New York. Looking ahead, many are keen to see how he will apply this breadth of knowledge to Australian market. “I’ve seen nearly every type of market cycle and gone through a really wide range of industry challenges,” he says. “The build-out of Allied World’s Australia business has been a really exciting challenge so far.”

HOT LIST 2019

MARIA PARRY CEO AUSTCOVER

Maria Parry is one of the few insurance executives to have climbed the full length of the corporate ladder within the same organisation, spending more than three decades at Austcover. Starting as an office junior in 1987 and moving on to a range of increasingly senior positions – including claims assistant, operations

coordinator and general manager – Parry was named CEO in 2016. Since then, Parry has shown no sign of slowing down, claiming two prizes at the inaugural Insurance Business Awards, including the coveted title of Australian Insurance Broker of the Year. Parry puts her meteoric rise down partly to her ardent pursuit of education – something she says has never been more important in today’s rapidly changing environment.

“Education and learning is ongoing – I don’t think people should underestimate the importance of this,” she told Insurance Business following her awards win. “The insurance world is constantly changing, and we need to keep up with developments – so professional development is absolutely crucial.” Looking ahead, Parry is committed to facilitating the growth of Austcover while also maintaining the firm’s culture, values and behaviour.

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SPECIAL REPORT

HOT LIST 2019 KATE FAIRLEY Senior insurance broker and branch manager SIMPLEX INSURANCE SOLUTIONS

After being named an Elite Broker by Insurance Business in 2017, Victoria-based Kate Fairley went on to pick up the prize for Independent Broker of the Year (Fewer Than 20 Staff) at the 2018 Insurance Business Awards. Currently a senior insurance broker, Fairley is also the branch manager for Simplex Insurance Solutions’ Kyneton office, a regional role that she describes as highly rewarding. “I’ve always loved the insurance

RACHEAL TUMELTY National head of credit, surety and political risks GALLAGHER

Gallagher veteran Racheal Tumelty has spent almost 15 years with the international brokerage, carving out a successful niche in the space of credit, surety and political risks. Tumelty first

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tried her hand in the specialist line back in 1995, when she became manager of trade credit and political risks for Zuellig Credit & Financial’s Western Australia arm. She later moved into a similar role at Aon before joining Gallagher in 2004 as general manager of trade, political and surety risks. Stepping into her current role as Gallagher’s national head of credit, surety and political risks in early 2018, Tumelty was quickly recognised for her expertise, claiming the Specialist Broker of the Year Award at the 2018 Insurance Business Awards. Now, with political instability fast becoming the norm among the major powers of the world, Tumelty finds herself in a demanding space that will likely see increased attention over the coming year. “Sudden changes, driven by political factors in foreign jurisdictions, have the ability to cause severe disruption and uncertainty for multinational businesses involved in cross-border investments,” she says. “That’s why it pays to look to the horizon and craft a risk mitigation and insurance program that enables lenders and investors to forge ahead with confidence wherever opportunity presents itself.”

industry, but working in regional Victoria makes my job even more rewarding with such a strong focus on community,” Fairley says. “I’m passionate about supporting and advising small businesses from the very beginning – for insurance advice, not just a price.” In addition to her successful career as a broker, Fairley founded the broker advocacy and consumer awareness website Get Informed and is the author of the e-book A Broker’s Guide to Social Media. She’s also been a mentor and has spoken as a panellist at several industry events, both locally and in Asia, encouraging brokers to become more engaged with consumers.

KATIE STEPHENSON Business development specialist MARSH

As the newly elected Australasian president of Young Insurance Professionals, Marsh broker Katie Stephenson is setting herself apart from her peers while also supporting and encouraging industry newcomers. Having helped found the group’s Northern Territories chapter in 2014, Stephenson stepped up as Australasian treasurer and later vice president at YIPs before becoming the first woman to lead the organisation. “I’m really passionate about the fact that we leave the ladder down,” Stephenson says. “We advocate for young insurance professionals to continue education and to continue networking to ensure their success in the industry.” This is certainly not the first time Stephenson has been recognised for her contributions to the industry: she was the SA/NT regional winner of NIBA’s Young Professional of the Year Award and was also selected as one of ANZIIF’s top five up-and-coming brokers in Australia.

HOT LIST 2019

JONATHAN ROSS Account executive AVISO

Despite entering the insurance industry less than four years ago, newcomer Jonathan Ross is already setting himself up for an illustrious career. In 2018 alone, Ross won the Young Gun of the Year Award (Independent, Less Than 20 Staff) at the Insurance Business Awards and was a finalist for the NIBA Young Professional Broker of the Year WA Award. Ross has also gained praise for his willingness to invest time in startups that are struggling to find coverage – so far, his clients have ranged from sharing economy platforms to producers of DIY organic skincare products.

“The future brings with it many opportunities and challenges, and I look forward to growing with clients in their businesses,” Ross says. “It’s about relationships and collaboration that will

ultimately see growth and success.” Ross is also committed to supporting the insurance community and is an active member of the NIBA Young Professional Committee.

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HOT LIST 2019 REBECCA GUMM Senior account manager ALLIANZ

With more than 17 years of experience in the industry, Rebecca Gumm has already worked with some of the biggest names in insurance, including serving as a claims specialist for Vero, a casualty underwriter for ACE and a commercial underwriter for QBE. While her career has been on full throttle since the outset, 2018 marked a particularly big year for Gumm, who made the move to yet another industry heavyweight, stepping into the role of senior account manager at Allianz. Towards the close of the year, Gumm claimed the General Insurer BDM of the Year Award at the 2018 Insurance Business Awards, setting herself up as one to watch in 2019. “I’m not afraid to have honest conver sations and always take unconditional responsibility and ownership,” she says.

DANNY BYRNES CEO ACCIDENT AND HEALTH INTERNATIONAL

After almost 28 years with IAG, culminating in the role of national manager for authorised representatives, Danny Byrnes stepped into the top job

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COLIN FAGEN MD and founder BLUE ZEBRA

at IAG subsidiary Accident and Health International in 2017. He’s already helped steer the firm through some major changes, and AHI is currently in the midst of a sweeping digital transformation that includes plans for a new logo and website, as well as an updated broker portal. Importantly, Byrnes also confirmed that the specialist underwriter would be renewing policy wordings across its entire suite of products from the start of 2019 and would be removing all mental health exclusions from its policies. “Our goals for the next 12 months are to continue our investment into technological change without losing focus on our face-to-face and personable approach,” Byrnes told Insurance Business in a recent interview. “None of our customers are the same, so we’ll be releasing new initiatives in the next 12 months to support this while making sure we protect what matters most.”

After departing QBE in 2017, former group COO Colin Fagen could easily have walked into a senior role with a rival incumbent – instead, the industry heavyweight took a different approach, founding insurtech startup Blue Zebra. Less than two years on, the firm is thriving. As it continues to drive the insurance market forward by forging strong partnerships with brokers, the industry is watching closely to see if the approach can be scaled up successfully. Fagen is confident it can be. “All of our technology is brand-new,” he told Insurance Business. “We see data today and make the decision today and get on with it. You can make significant change more quickly – it’s much more dynamic, and I think that enables us to out-compete a lot of the bigger players.” Looking forward, Fagen says he is eager to establish Blue Zebra as a market leader and thoughtfully explore new opportunities. “We’re being asked to look at more opportunities – by product, by making enhancements to increase our accessible market, by looking at other geographies around the world – but we’ve got to make sure we build up our organisation with a stable base and stable foundations first,” he says.

HOT LIST 2019

DANIEL QUINTIN Branch manager GALLAGHER

Since entering the industry at the tender age of 16, Daniel Quintin’s career has gone from strength to strength. After working for a handful of brokerages in the UK, he relocated to Australia and took

on the role of Hobart branch manager for Gallagher. Since then, he has been praised for leveraging his London and Sydney contacts to bring innovative solutions to the local business. With 20 years of experience already under his belt, Quintin was named Inter national Young Gun of the Year at the 2018 Insurance Business Awards. He also serves as the chairman of NIBA’s Tasmanian

subcommittee and is involved in the Beacon Foundation, which helps support young people transitioning to further education or meaningful employment. “I just want to help in any way I can, be it professionally or personally,” he says. “If I pull up stumps in 30 years and have a good market send-off, surrounded by like-minded and lifelong friends and clients, I will be a happy man.”

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HOT LIST 2019

ROZ SHAW National head of transport GALLAGHER

With a career spanning almost four decades, Roz Shaw had been at the helm of Hawkins Road Transport since 1981. In 2018, Shaw stepped away from the $150m business, which her family founded in 1921, to take up the role of Gallagher’s national head of transport last July. Shortly after starting in her new

HAMISH MACLEAN Southern regional manager ZURICH

Appointed to the position of southern regional manager for Zurich at the end of 2017, Hamish MacLean has drawn upon his 20 years of insurance experience across Australia and New Zealand to take charge of business development, general management and growth across the insurer’s portfolios in Victoria and Tasmania.

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role, Shaw told Insurance Business what inspired her to specialise in transport. “I saw an opportunity … to work on a two-part strategy – empowering the team by sharing insights into the transport industry and also engaging the client to ensure they understand the role of the broker and how the right one can be the difference between growing and being unprepared to face the challenges ahead. At the end of the day, when relationships become partnerships, both parties win.” The transport sector is entering a period of significant change as telematics and automation promise to revolutionise transport businesses, and Shaw will likely be looked to as a leader in the field. An active voice for the industry and a former vice president of the Queensland Transport Association, she is no stranger to lobbying for critical change to ensure the transport industry moves with the times. “The transport sector is a high-risk business,” Shaw said. “It is capitalintensive, and the risk of incident is always high and often costly. Major transport contracts come with high stakes for the operators, and the trade-off between running a quality operation and providing a service to a price is like walking a tightrope. The evolution of these risks might be in the form of new types of policies and further changes in legislation, but I don’t see the risks going away any time soon.”

“Victoria and Tasmania are crucial markets for Zurich, and I’m excited about him bringing his skills to bear for the benefit of our broker partners across these states,” said Zurich chief distribution officer Steve Ord upon MacLean’s appointment. “Hamish’s energy and leadership qualities align perfectly with our ambition to adopt a much more market-focused posture.” Before joining Zurich, MacLean was general manager of Adroit Insurance Group in Melbourne and served in management roles at Marsh and Willis.

JARED KING Head of client and broker engagement AIG

Since beginning his career with NZI in New Zealand, industry veteran Jared King has excelled in a variety of senior executive roles, embracing international opportunities in both Hong Kong and, more recently, Australia. Prior to joining AIG Australia, King held leadership roles at both CGU Australia, where he was head of corporate, and QBE, where he completed stints as both the national underwriting manager and then acting general manager for international brokers. King joined AIG Australia in July 2012 as head of commercial but was quickly promoted to his current role as head of client and broker engagement. A frequent speaker at industry events and a member of the judging panel for the inaugural Insurance Business Awards, King has already established himself as an influential figure within the insurance space.

HOT LIST 2019

SIMON FELDMAN Owner and director SOUND INSURANCE

For more than 15 years, Simon Feldman has navigated the waters of the

broking industry, holding a variety of senior positions at both the national and international level. His technical abilities, combined with his dedicated service to clients, has proved to be a successful combination, helping Sound Insurance win the award for Broker of the Year –

Authorised Representative at the 2018 Insurance Business Awards. Feldman continues to rely on the same strategy he’s used since he started in the industry – focusing on advice and service – which should hold him in good stead into the future.

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HOT LIST 2019

GILES CROWLEY Chief distribution and deal management officer, general insurance, Australia and New Zealand ZURICH

MATT ALMOND National underwriting manager HIGH STREET UNDERWRITING

Formerly head of commercial insurance for Zurich’s Australia and New Zealand operations, Giles Crowley embraced an additional challenge at the close of 2018,

taking on the newly created role of chief distribution and deal management officer for the region’s general insurance business. The appointment is key for Zurich, as the company has committed to shaking up its leadership structure and strategy to enhance its core focus on the commercial intermediated insurance market. The change is the latest push from the insurer to improve broker partnerships; Zurich also simplified its Z.stream trading platform earlier in the year. “This change aligns to our ambition to be strongly customer-focused,” Crowley said at the time. “It’s also about making ourselves easy to work with, and feedback from brokers says they want clarity about how to best access Zurich’s range of propositions.” Brokers will undoubtedly be eager to see what changes Crowley will bring in 2019 and beyond as he settles into his new role.

SHAUN STANDFIELD Managing director

As a former committee member of the National Insurance Brokers Association and a current committee member of Young Insurance Professionals, Matt Almond has always been heavily invested in the insurance community and is committed to pushing the industry forward. Described by peers as “very hard-working”, Almond has also undertaken a number of mentoring programs to assist junior members of the industry and has been praised for his enthusiasm in helping both clients and peers. Almond has been formally recognised for his skill set and strong work ethic: he was named to Insurance Business’ Young Guns list in 2016 before picking up the award for Underwriting Agency BDM of the Year at the inaugural Insurance Business Awards. Looking ahead, Almond is keen to develop boutique insurance offerings for the Australian market and to continue giving back to the insurance community.

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INSURANCE ADVISERNET

An experienced insurance executive, Shaun Standfield boasts a proven track record in leading large multi-disciplined insurance sales, claims and underwriting operations and has led significant change programs in both Australia and Asia. After spending eight years as chief underwriting officer for QBE’s Asia operations, Standfield moved into the managing director role for Insurance Advisernet – Australia’s largest authorised representative network in terms of GWP – in 2015. Since then, Standfield has been instrumental in securing significant growth for the group. Towards the end of 2018, the organisation reported an impressive 21% year-on-year jump in brokered GWP. The group’s brokerage income also increased 12%, and earnings reached $75m, while the network welcomed 18 new practices and more than 1,000 new clients. Standfield will undoubtedly be in the spotlight in 2019 as he looks to repeat the same success.

HOT LIST 2019

RICHARD ENTHOVEN Founder and CEO THE HOLLARD INSURANCE COMPANY

Savvy investor Richard Enthoven has enjoyed incredible success after setting up the Australian operations of South Africa-based Hollard Insurance Group, which includes Hollard Insurance, Hollard Financial Services and Real Insurance. While insurance is a family business for Enthoven – his father launched the extremely successful and highly

profitable South African insurance giant – he cut his teeth in the industry as a regional underwriting assistant for AIG’s South American operations and also worked as a project manager for United Financial Casualty Company. Enthoven moved to Sydney in 1999 to establish Hollard here and committed the company to doing things differently; since then, Hollard has grown exponentially and is a leader in the Australian market. Enthoven also owns the Nando’s food chain and Spier Wine Farm; Bloomberg estimates his net worth to be more than

US$1bn. Not content with meteoric business success, Enthoven is also committed to furthering the insurance industry and was appointed president and chairman of the Insurance Council of Australia in 2017; his two-year term will come to a close towards the end of this year. Enthoven is also chairman of the ICA’s financial inclusion committee and serves on the advisory board of Head Over Heels, a not-for-profit organisation that supports a portfolio of high-potential women-owned businesses.

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HOT LIST 2019

JAMES BAUM CEO AON AUSTRALIA

MARK MILLINER CEO, Australia IAG

A regular member of the Insurance Business Hot List, former IAG COO Mark Milliner remains one to watch as he nears his second anniversary as Australian chief executive of the multinational insurance giant. Jumping to IAG from Suncorp, where he was CEO of personal insurance, Milliner was appointed to the insurer’s top Australian spot in 2017 after the organisation formed a single Australian division, bringing together its former consumer, business, operations and satellite divsions. With Milliner at its helm, IAG has been moving towards a newer, more streamlined way of working, bringing

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about significant cost efficiencies and embracing a customer-centric approach to business. The insurer also positioned itself at the vanguard of AI development towards the end of 2018, teaming up with two leaders in the science and academic world to create an innovative research institute. Partnering with the University of Sydney and CSIRO’s Data 61, IAG co-founded the Gradient Institute, an independent not-forprofit organisation dedicated to researching the ethics of artificial intelligence. Outside of his work at IAG, Milliner remains heavily involved with the insurance community. He has been a director of the board of the Insurance Council of Australia since 2009 and is committed to seeing greater private- and public-sector investment into insurance affordability and disaster resilience.

Before stepping into the CEO role at Aon Australia in early 2018, James Baum had already proven himself an exemplary leader during his previous stints as chief broking officer and head of commercial operations, overseeing Aon’s SME and mid-market business in Australia and Papua New Guinea. During his time in those roles, Baum established a simplified regional operating structure and boosted regional leadership representation at the executive level in a strong push to create a diverse business leadership team. “I have been very much part of the strategic direction of the organisation as it stands today,” Baum told Insurance Business shortly after his appointment. “For the immediate future, I would suggest we continue on that same path.” The nimble structure was a major contributor to Aon’s commercial business moving from a long-term flat position to one of growth in less than 12 months. As Baum nears his first anniversary as CEO, many will be eager to see if he can deliver similar growth across the entire group. Already it seems Aon Australia is enjoying additional success under Baum’s guidance: the company was named both Australian Brokerage of the Year and International Brokerage of the Year at the 2018 Insurance Business Awards.

HOT LIST 2019

VIVEK BHATIA CEO, Australia and New Zealand QBE

Vivek Bhatia joined QBE in early 2018, coming on board at a somewhat uncertain time for the insurance giant, which had suffered a string of senior leadership departures. However, Bhatia has helped bring some much-needed stability to the C-suite of Australia’s largest global insurer. He has more than 20 years of experience in the insurance and management consulting sectors and

has a significant track record of leading large, complex organisations through transformation agendas, whether they’re spurred by mergers and acquisitions, growth, regulatory changes, cost reduction and efficiency improvement initiatives, or technology and operating model transitions. His experience includes a four-year stint as the Australian CEO of Wesfarmers Insurance, where he was responsible for leading the multi-brand, multi-channel insurer through a significant transformation journey. He has also co-led McKinsey & Co.’s Asia-Pacific restructuring and transformation practice.

Prior to joining QBE, Bhatia was the first CEO and managing director of icare, the $32bn public financial corporation set up by the NSW government to manage the state’s insurance and care schemes. During his time as head of the organisation, Bhatia was named ANZIIF’s Insurance Leader of the Year. This wealth of experience makes Bhatia well placed to guide QBE through the three-year operational efficiency program it announced towards the end of 2018. All eyes will be on him to see if he can deliver the $130m in net cost savings the insurer is targeting.

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HOT LIST 2019

TROY FILIPCEVIC Founder and managing director EMERGENCE INSURANCE

With a wealth of experience in senior strategic roles under his belt, including a two-year stint as executive manager of strategy for Suncorp, Troy Filipcevic stepped away from the major corporation to launch his own startup, Emergence Insurance, in 2014. The underwriting agency initially focused on emerging risks, but Filipcevic quickly identified cyber as the space with the most potential and chose to steer the firm into becoming a specialist in the niche. “Cyber is a specialist risk that you need a deep understanding about, so we decided to become a dedicated niche provider of cyber insurance, and brokers are now rewarding us for that,” Filipcevic told Insurance Business. In 2018, the agency was identified as the best provider of cyber coverage in the Insurance Business Brokers on Underwriters Survey; brokers also named the company’s cyber event protection as one of the best products in the entire market. Now, with new cyber threats continuing to emerge at an ever-increasing rate, specialist firms like Emergence find themselves under pressure to remain on top – but Filipcevic’s strategic expertise should allow the underwriting agency to continue to excel in the year ahead.

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PRUE WILLSFORD CEO ANZIIF

A regular fixture on the Insurance Business Hot List, Prue Willsford remains one to watch in 2019 as she sits at the helm of ANZIIF, the Asia-Pacific

KENNETH HAYNE Commissioner ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Formerly a Justice of the Supreme Court of Victoria and later serving on the Victorian Court of Appeal, the Honourable Kenneth Hayne held a string of senior positions within Australia’s legal system before being appointed a justice of the High Court of Australia in 1997, a position he held until 2015. In December 2017, Hayne was appointed by the Australian government

region’s leading education, training and professional development organisation for insurance and finance. The professional association has been ramping up its efforts to engage the insurance community over the past year, including launching the inaugural Bright Light Award to give individuals and teams working in the claims space a platform to showcase ideas that have the potential to shape and benefit the general insurance industry. “ANZIIF has a long history,” Willsford says, “but we stay relevant today by being a trusted partner with a deep understanding of the issues facing the insurance industry.” Willsford has also been speaking out on key issues such as presenteeism and career dissatisfaction. At the Steadfast Convention in April, she outlined how instilling a learning-based environment can not only attract new employees and satisfy their need for personal and professional progression, but also ensure businesses are equipped for the future. “Great insurance brokers don’t fall out of the tree fully formed; we have to make them,” she said, “and making them is a long-term play, and ultimately that comes down to your leadership as leaders in businesses and leaders of people.”

to become the commissioner for the Royal Commission into the Royal Misconduct in the Banking, Superannuation and Financial Services Industry, instantly setting him up to have unrivalled influence on the insurance industry. At press time, Hayne is yet to release his final report, but regardless of the outcome, he has already been instrumental in pushing the entire sector, including general insurance, into a new era of heightened expectations. Insurance is now moving rapidly towards a baseline obligation of meeting community standards and expectations, and the entire industry is eagerly awaiting the commission’s report.

HOT LIST 2019

DAMIEN COATES CEO, Asia-Pacific DUAL

After founding DUAL Australia in 2004, Damien Coates has proved to be an exemplary leader, guiding the business through impressive organic growth to become Australia’s largest independent underwriting agency and Lloyd’s of London’s largest intermediated coverholder in Australia. With more than 20 years in the industry, and senior

experience in international and global roles, Coates remains a key figure in the Australian insurance space. DUAL has been actively pursuing new opportunities: towards the end of 2018, Coates confirmed the company had reached an agreement with Aviation & Marine Underwriting to merge the two firms’ marine businesses to create SALT Marine Risks. “We recognise that marine is a specialised segment of the insurance market, and a dedicated brand will enable the unit to better develop and

promote its products and services in the region,” Coates said following the announcement. This isn’t the first time Coates has been included in the Insurance Business Hot List, but it’s no surprise he’s making a repeat appearance – since the launch of the Insurance Business Brokers on Underwriting Agencies survey in 2005, DUAL has repeatedly cleaned up. Brokers consistently point to the underwriter as a standout performer, particularly in the areas of D&O liability, management liability and professional indemnity.

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HOT LIST 2019 GERRY POWER National head of cyber sales EMERGENCE INSURANCE

TONY CLARK CEO

As awareness around the need for cyber insurance increases, a growing number of brokers and clients are looking to experts for insight, and Emergence Insurance’s Gerry Power has positioned himself as one of the most trusted sources in this specialty. Boasting 25 years of experience in underwriting professional risks insurance, Power carved out a specialist niche for himself in the field of cyber and technology while serving as a senior underwriter at CGU. In 2017, Power made the move to relative newcomer Emergence and has since helped secure the underwriting agency’s standing as one of the most respected cyber specialists in the Australian market. Looking forward, Power believes general insurance will struggle to keep up with the rapidly evolving nature of cyber and technology in the same way a specialist underwriter can.“Brokers have got peace of mind that when they place a policy with a cyber specialist, they know it’s in a safe home and that it’s going to be well taken care of,” he told Insurance Business. With Emergence now actively eyeing expansion into other territories outside of Australia and New Zealand, other players in the market will undoubtedly be paying attention to see if the agency can continue its trajectory of success.

NATIONAL TRANSPORT INSURANCE

After more than 10 years at the helm of NTI, CEO Tony Clark continues to innovate, using a hands-on approach to provide strategic direction and push the underwriting agency towards constant improvement. Clearly, his methods are working: NTI was crowned Australian Underwriting Agency of the Year at the 2018 Insurance Business Awards and also claimed the prize for the Underwriting Agency Claims Team of the Year. A frequent advocate for the industry, Clark regularly engages with the media, brokers and consumers, offering commentary on everything from public safety risks and charity campaigns to legislative change and emerging technology. In 2018, NTI announced the launch of new technology to enhance roadside assistance and improve safety for customers and service providers. “We keep exploring ways to expand and innovate on products and processes,” Clark says. “The recognition we continue to receive is validation that changes don’t come at a cost of the quality of what we deliver to hard-working Australians.”

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JASON WILBY AND JONATHAN BUCK Co-founders and joint CEOs HUDDLE

After co-founding insurtech disruptor Huddle in 2016, Jason Wilby (pictured above) and Jonathan Buck have found themselves centre stage while their new business model makes waves in

the Australian market. Huddle already provides $1bn worth of personal insurance across Australia, and it made headlines in December when its Series A round of funding managed to secure $19.2m, much of which is earmarked for future growth. “It’s amazing what we’ve been able to achieve in two years,” Wilby told Insurance Business. “We’ve built a whole technology platform that automates claims across three different products, and when we were raising capital, there were a lot of investors who couldn’t believe what we’d managed to do in two years.” Wilby also didn’t rule out the possibility of Huddle branching out into the SME market in the future. “It’s not an area that we’re in right now, but it is an area that, one day, I can see us tackling,” he said. “I want to solve some problems in that space. The nature of work is changing so much, we have many people who are suddenly finding themselves as a small business owner, perhaps taking risks, and I wonder whether traditional products built to serve the commercial market are really meeting the needs of these small business owners.”

HOT LIST 2019

ADAM WARE Partner and branch manager BJS

After entering the insurance industry in 2008, Adam Ware has shown a keen hunger for personal and professional development, and his career has skyrocketed as a result. Rising from account manager through to an office manager, Ware was offered the chance to

become a co-owner and branch manager of BJS Gippsland in 2016 – an impressive feat, considering that he’s still in his 20s. His technical abilities and dedicated service to clients have proved to be a successful combination. Ware picked up the Warren Tickle Memorial Award for NIBA Young Professional Broker of the Year in 2017, and last year, he was crowned Australian Young Gun of the Year at the Insurance Business Awards before being featured on IB’s Young Guns list.

While Ware was climbing the ladder and pushing himself professionally, he also spotted a gap in the market and took the initiative to close it. He personally constructed a website to promote BJS Insurance Brokers’ offerings for holiday rental properties, which not only yielded dividends for BJS, but also for Ware himself. Given his commitment to self-improvement, the industry is sure to witness more exciting things from Ware over the next 12 months.

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HOT LIST 2019 EOGHAN TREHY

LINDA ELLIS

National head of insurance broking

Group company secretary and corporate counsel

MACQUARIE BUSINESS BANK

STEADFAST

After 18 years in the financial sector, Eoghan Trehy traded it in for a senior role in insurance, taking on the job of national head of insurance broking at Macquarie Bank in 2014. Since then, Trehy has secured a reputation as a key voice in the industry, speaking at several events and on a number of panels, discussing topics such as diversity and inclusion, succession planning, and maximising the value of a brokerage before a sale. “I take great pride in building strong, mutually beneficial business relationships which result in happy customers willing to advocate to others what we can do,” Trehy says. “When these relationships are based on trust, integrity and respect, I believe we can achieve great things.”

Part of the group executive team at Australasia’s largest insurance broking network, Linda Ellis has been with Steadfast since 2013 and has more than 15 years of experience as a lawyer in Sydney and London, including stints at King & Wood Mallesons, Atanaskovic Hartnell and Clifford Chance. With a wealth of experience in capital markets, corporate and commercial law, Ellis has established herself as a trusted advisor for Steadfast when it comes to a range of corporate and commercial matters, from liaising with regulators to directing Steadfast on its obligations under the Listing Rules, acquisitions, corporate governance, commercial agreements and commercial disputes. Moving into 2019, Ellis will be a key figure for not just Steadfast but the entire industry as organisations and individuals begin to understand and navigate a post-royal commission environment in which compliance, governance and community standards are at the forefront of everyone’s minds.

TIM WEDLOCK Managing director AEI INSURANCE BROKING

Over the course of his 32 years with AEI, Tim Wedlock has played an integral role in the firm’s success; the brokerage now places in excess of $70m

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In the second quarter of 2018, Trehy took on a new challenge, stepping into the role of national head of insurance for Macquarie’s business banking operations. Now, as he nears a full year in the job, all eyes are on Trehy to see what else he has in store.

in premiums annually. With a wealth of experience in the industry, Wedlock continues to push himself in order to improve the overall insurance sector – an effort he was recognised for in 2018 when ANZIIF named him Insurance Leader of the Year. “I am proud of this industry, the people in it and, above all, I am proud to be an insurance professional,” Wedlock said when accepting the award. In October, AEI entered into an agreement with Austbrokers Canberra to offer temporary management support to the former subsidiary. “Tim is very well placed to ensure our clients continue to receive market-leading risk management and advice,” Austbrokers divisional chief executive Nigel Thomas said at the time. In addition to his role at AEI, Wedlock currently serves as the president of the National Insurance Brokers Association, placing him in a position of power within one of the most influential organisations in the industry.

SAM SANFILIPPO National manager, international intermediaries, broker distribution, commercial insurance VERO

For many brokers, the decision to join the world of insurance is often the result of unexpected choices, luck and sometimes a little bit of synchronicity. This was very much the case for Sam Sanfilippo. Originally looking for work in accounting, he found himself in insurance. More than a quarter-century later, Sanfilippo has established himself as a formidable force both at Vero and in the wider industry. And as someone who enjoys the people aspect of selling and the thrill of winning, he wouldn’t have it any other way.

HOT LIST 2019

SARAH LYONS Chief executive, Australia GALLAGHER

Sarah Lyons has been at the helm of Gallagher for almost two years now, having previously completed successful stints as the company’s COO and MD of commercial broking. Prior to joining the international brokerage, Lyons excelled in senior roles across both Australia and the UK, giving her exposure to business

strategy on both sides of the world. Today, she finds herself on a global stage as she leads Gallagher’s Australian operations and is looked to as an expert voice on emerging risks and industry trends. “I love the fact that you can take something that people perceive as being ‘grey and boring’ and turn their thinking on its head,” Lyons says of her passion for insurance. “Even better when you can lead and nurture a high-performing team to take it to the next level and create an experience for the customer that is highly

differentiated and transformational.” Now Lyons wants to make sure others – especially young people – know how exciting a career in insurance can be. “The industry could do much more to engage with millennials and the next wave of school leavers and university graduates,” she told Insurance Business last year. “We need to do more to get the message out there about the breadth and scale of opportunity that exists in the industry and how insurance is critical to our future growth and success.”

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FEATURES

FEEDBACK

How to give feedback effectively Are your employees too sensitive to negative feedback, or have you just been delivering it poorly? Aytekin Tank outlines five ways to ensure feedback is well received

PAUL GREEN and his colleagues at Harvard Business School believe negative feedback – on its own – rarely leads to improvement. Instead, it spurs us to remove ourselves from the partner or group where we’ve received the feedback and ‘shop’ for confirmation among new social circles. At work, that means we will seek out a new arrangement for our next project. If stuck with a certain partner or in a specific department, we might feel the urge to form relationships with people in other departments – anything to confirm the positive view of our actions and values within the company. When we can’t maintain that positive confirmation, it isn’t pretty. Physical consequences like anxiety and depression can threaten to pull us deeper into a spiral of poor behaviour and, in turn, negative feedback. This need to protect our psyche is how and why we end up creating – and subconsciously locking ourselves into – our own echo chambers. Yes, feedback is a necessary evil – and

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there aren’t many things I’d say that about. Feedback is a multi-faceted concept that’s vital to the way many of us work and live. So I thought I’d dig into just why feedback is such a hard pill to swallow and a few ways I’ve learned to deliver it effectively over the years.

Setting the stage for feedback delivery Delivering feedback, especially negative, is far more complex than telling an employee what they need to fix and expecting them to scamper off and focus on those items in a vacuum devoid of their own emotions. The tactical tricks that I’ll get into here won’t prove effective without setting the stage with an affirmative work environment in which opportunities for positive confirmation and supportive relationships flourish. Think of your relationship with your partner or a long-time friend. A single discomfiting remark from one of them certainly wouldn’t send you running for the hills, would it? Negative feedback can lead

to improvement when given in a confirming environment where the receiver feels supported and valued. When it comes to the workplace, there are many systems in place that erode the sense of value employees feel they offer the organisation. Competition for promotions, commission-based salaries and poorly executed peer reviews can certainly degrade any positive confirmation and lead to feedback falling on deaf ears. Once you’re able to create an environment in which your workers feel valued and confirmed in their positive attributes, you can try these five methods I’ve used to deliver feedback they can actually act on.

1. Encourage continued conversation with subjective feedback It’s tough to give feedback that people don’t want to run screaming from. And it can be even more challenging when it comes to giving feedback for creative work.

Unless your comments can be tied directly to organisational goals, they really are just personal judgements, which have a way of putting their receiver into a defensive and combative mood – and rightly so On JotForm, our users use our online form builder to collect feedback, and a big part of that feedback involves creative input. One thing I’ve noticed is that, much like creativity itself, feedback about creativity is highly subjective. If you’re able to frame it as such, you’re much more likely to start a

discussion about where the design or feature can go next instead of shaming and shutting down its creator. For example, I might say, “Personally, I gravitate towards this bigger, brighter button than towards the main action you want me to take on the page” instead of a definitive, objec-

tive statement like “This design is wrong”. It’s not about control. It’s not even about being right. It’s about providing constructive feedback in a way that encourages the creative process to continue.

2. Speak in patterns rather than specifics Duration neglect dictates that we’re more likely to remember peak moments (good or bad) and the most recent moments in any event. It is this, along with tons of other fascinating and confusing tricks the brain plays with memory, that makes it all too easy to provide biased feedback. And people who sense unfairness aren’t likely to take positive action.

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FEATURES

FEEDBACK

Instead of relying on one particular recent example, it’s important to collect data from different sources over time to find patterns in behaviour. I personally like to use a simple evaluation form template to collect anonymous feedback on how my team feels a certain design or feature came out. By combining this information with my own observations of specific examples, I’m able to provide unbiased feedback on areas where a certain design is excelling, as well as areas where it could improve. The knowledge that I’ve taken the time to identify real patterns goes a long way in negative feedback being received as supportive rather than a threat to the employee’s wellbeing and job security.

It will take more than a sandwich to create a workplace in which feedback isn’t perceived as a threat and employees don’t feel the need to shop for confirmation. But this method is effective for times when you haven’t had a chance to establish good rapport with the receiver or have to deliver quick feedback.

4. Tie feedback directly to organisational goals We often hear the phrase “it’s nothing personal” when it comes to giving and receiving feedback. However, unless your comments can be tied directly to organisational goals, they really are just personal judgements, which have a way of putting their receiver into a defensive

The knowledge that I’ve taken the time to identify real patterns goes a long way toward negative feedback being received as supportive rather than a threat to the employee’s well-being and job security 3. Whip up a delicious feedback sandwich A quick way to help create an environment that confirms an employee’s value before delivering negative feedback is to deliver it stacked like a sandwich – otherwise known as the PIP (praiseimprove-praise) method. The process is as easy, and tasty, as it sounds: First, deliver praise that confirms the positive values a person has about themselves and their place in the organisation. Sandwich feedback that could be taken as negative in the middle. Top it off by reiterating the earlier praise or by explaining how acting on this feedback will reinforce their positive values.

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and combative mood – and rightly so. In order to deliver effective feedback that helps an employee better align with organisational goals, you’ve got to make sure those goals are clear to begin with. It wouldn’t be fair for me to deliver negative feedback solely because I don’t personally align with someone’s management style. In the same vein, it also wouldn’t be fair to critique an employee for not hitting certain organisational goals if they’ve never been told what those are. That’s why I strive to make sure my leadership team, as well as every single employee, is on the same page when it comes to organisational goals. And when it comes time for me personally to deliver feedback, I always

make sure to first revisit our organisational goals right there in the meeting to make sure my comments are aligned and actionable — not emotional.

5. Encourage the employee to walk a mile in your shoes Feedback can be especially frustrating to hear when you don’t understand what’s motivating it. So it can really help an employee by inviting them to walk a mile in your shoes, as the saying goes. Right there in the feedback session, encourage them to role-play as if they were in your management position. After describing the situation, you can tell your employee that you find it challenging to address the issue, and ask how she would handle the matter if she were managing the group. By stepping away from the threatening feelings for a second and viewing things from your perspective, your colleague can better understand that negative feedback is not meant as a personal attack, but as a way to help them better serve their team and grow their own development. This tactic can also help managers see how their team members personally process feedback and provide great insight into the management strategies they respond well to. Employees who understand management’s motivation are more likely to view negative feedback as a tool for growing their professional development rather than a threat. Aytekin Tank is founder and CEO of JotForm, an online form creation software with four million 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

FEATURES

BROKERAGE INSIGHT

A refreshingly different approach SRG Group is on a mission to “make insurance easy” – and CEO Rod Fitzgerald says he wants to shake up the sector’s stale reputation while he’s at it

MAINTAINING PROFESSIONALISM is part of a broker’s basic responsibility, but that doesn’t mean they have to abandon their personality the moment they walk through the office door. In fact, Rod Fitzgerald, CEO of SRG Group, believes brokerages can benefit if their staff are able to show a more human side. “Insurance is very old and traditional, and it can be seen as a little bit stuffed-shirt or rigid at times,” Fitzgerald says. “We built our brand on being refreshingly different, and we say that without being corny. We consider ourselves modern and upbeat with a high-energy ethos.” Of course, developing a dynamic company culture while building a forward-thinking brand isn’t the easiest task for any business leader, so Fitzgerald called on an established expert for help. “We went through a pretty detailed culture project, and Matt Church, a leadership expert who does a lot of work around culture and engagement, came in and helped the team come up with some really honest values that resonated with everyone,” Fitzgerald says. “One of the ones that made me really proud of the team was that the staff wanted to have SRG identified as a community-responsive organisation.”

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Fitzgerald says many employees within SRG are committed to volunteer work or charity fundraising; among them is Luke De Laurence, product manager at SRG subsidiary Bikesure. In his campaign to support emergency helicopter service LifeFlight, De Laurence decided to participate in a string of unusual challenges, including racing his dog, shaving his head and arm-wrestling a female athlete. While the challenges – which were broadly circulated on social media – took a slight sidestep from the traditional buttoned-up reputation of insurance, the entire SRG team offered its support. “They were the sort of things where some businesses might tap you on the shoulder and go: ‘Mate, would you mind acting a bit more corporate on social media, or at least change

your name so people don’t join the dots?’, but instead, it was wholly embraced and encouraged,” De Laurence says. Fitzgerald is quick to point out that De Laurence never veered into any dangerous territory – and even managed to demonstrate his own creativity and ingenuity in the process. “While there are obviously some boundaries, Luke never went anywhere near those, so there was never any concern about him damaging our reputation or his own,” Fitzgerald says. “In fact, seeing someone like Luke apply himself to fundraising in the way in which he did is actually very much in line with the way we think.” De Laurence’s approach saw him pledge to complete a different challenge once a certain fundraising goal had been achieved, which led

A CLOSER LOOK AT SRG GROUP Named one of Insurance Business’ Top 10 Brokerages in 2018, SRG Group manages traditional insurance programs for SMEs through to corporate businesses, in addition to serving several specialist niches. Its niche products include bicycle insurance and coverage for professional athletes, sports and events, workers’ compensation, IT, technology, and not-for-profits. As part of its mission to “make insurance easy”, SRG Group operates under six core values: consistent, knowledgeable, considerate, innovative, fresh and caring.

NOTABLE MOMENTS AT SRG GROUP

“Insurance ... can be seen as a little bit stuffed-shirt or rigid at times. We consider ourselves modern and upbeat with a high-energy ethos”

2005 SRG Group is founded, in part by Rod Fitzgerald

2007 First remote branch established on Queensland’s Gold Coast

2008 First niche products launched under the brand name Bikesure

2008 AUB Group acquires a 50% stake in the company

2012 Second niche products launched: SRG Sports & Events Insurance

2018 SRG Group is named a Top 10 Brokerage by Insurance Business

several people to donate on multiple occasions, desperate to see the next instalment. “I think that was innovative on Luke’s part, and it also allowed others to get involved,” Fitzgerald says. “People were helping him participate, and it became a bit of a feature in our monthly newsletter. We were all waiting for Luke’s next activity.” While De Laurence is thankful for the support and grateful to be part of a company

with such a supportive culture, he also believes SRG will reap the rewards for creating a positive work environment and encouraging its employees to be themselves. “People want to deal with and work for real people,” he says. “I think if you’ve got somebody in your business doing something for the community, you’ve got a free hit at demonstrating the human qualities of your business.” Fitzgerald agrees. He says many clients

heard about De Laurence’s fundraising activities organically, which bolstered not only the company’s reputation, but also the reputation of the entire industry. “I think the insurance industry gets a hard time in the media for various reasons, often because of the minority of organisations doing the wrong thing,” Fitzgerald says, “but, as a whole, it’s an amazing industry with a lot of amazing people in it.”

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FEATURES

PRODUCTIVITY

RE: RE FWD: FWD: Re Bill K TX The big event is approaching. Contract attached. (No subject)

Don’t let sloppy emails ruin productivity Is email taking up too much of your time? Carson Tate explains how to regain control 46

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Wait a minute – what? These emails were just sent to me, and I have no idea what any of it means. To make matters even worse, these are just a few of the daily examples of friends and colleagues not using email effectively. And almost immediately upon arrival, they turn my inbox into a slovenly mess. In writing my book, Work Simply, I did a lot of work to understand how we are using email effectively – or not. I discovered that we’re all bogged down by the sheer volume of email. And it takes a lot of time for us to slough through that volume because these emails are unclear, ambiguous and flat-out sloppy. Discerning exactly what we need to know or do and determining if a response is needed requires a lot of our attention and focus. These sloppy emails waste your time. And they cost you hours each week. Which means they’re also costing you money. When you feel like you’re drowning in a sea of sloppy, thick mud in your inbox, how do you begin to clean up the mess – and then how do you prevent it from reoccurring?

Automate your responses to unclear messages When you receive an email message that is unclear, vague or just causes you to say “What?”, send a response asking for additional information or clarification. To do this quickly, use a text expander software app like FastFox for PCs or Text Expander for

Mac. A text expander works in any program, including your email platform, and allows you to insert commonly used text with just a keyboard shortcut. No longer will you waste your precious time typing out a response – you can reply automatically within seconds.

Craft more effective email messages Dramatically reduce the volume of emails you receive by crafting more effective messages that are understood upon opening and do not require multiple back-and-forth emails asking clarifying questions. To craft more effective emails, answer four key questions in every single email you send: who, why, what and how.

you were sitting across a table from them and discussing the topic in person. WHAT? Ask yourself a series of ‘what’ questions to help shape the content of your email. What is the purpose of the email? What are the main points to be communicated in this email? What are the key facts? What references or research data need to be included? What must everyone know? Do not hit the send button until you have included every piece of detail required. HOW? Ask yourself how you want recipients to respond. Describe this explicitly in your email. If there’s a deadline, say so. If

To craft more effective emails, answer four key questions in every single email you send: who, why, what and how WHO? This breaks down into two subquestions: Who needs to respond to, take action on or make a decision about this information? Put their name(s) on the ‘to’ line. Who needs to know this information? Put their name(s) on the ‘cc’ line. WHY? Look back at the names on the ‘to’ and ‘cc’ lines. For each name, ask yourself: Why is this person involved in the project? Why am I emailing them? Why do they need to know? Why does this information matter to them? Why does it matter to the broader organisation? Then think about what you know about those individuals – their interests, needs, backgrounds and communication styles. Make sure the tone, style and content of your email matches up – just as you would choose appropriate words, tone and body language if

you want an email response, say that. If you need suggested dates for a meeting, names of possible project participants, a list of questions or key ideas to be considered, or any other specific input, describe it. Never assume that people will understand what you want – tell them as straightforwardly as possible.

Use the subject line to improve email response time Please, never let yourself hit the send button while the subject line of your email reads ‘RE:RE’ or ‘FWD:FWD’, or some cryptic phrase that relates to a prior email message. Why? Because when you send an email like this, you’re sending a message into the world with an unclear purpose. Do not be part of creating the email pigsty we have come to expect and accept.

The subject line of your email message is your topic sentence. It clearly states the topic of the email. A clear subject line is essential if you want to communicate effectively and improve both the quality and response time on the email messages you send. Make sure the subject lines on your email messages reflect the current topic, purpose or desired outcome. When you respond to an email you’ve received, change the subject line to make it current and clear. Consider using some of the following standard email subject lines: Action required – DATE FYI – 3rd paragraph client X mention Update: TOPIC Reply by – DATE NRN – No response needed EOM – End of message The last subject line above, EOM, is an especially powerful one. Here’s how it works: when you have a short, simple message to convey, type the entire email in the subject line of the email, and put EOM at the end. (For example, “Tuesday marketing meeting moved to 2 p.m. EOM.”) Now your recipient doesn’t have to open the email message, saving them precious minutes. It’s time to take back control and clean up the pigsty that’s disguising itself as your inbox. Carson Tate serves as a consultant and coach to executives at Fortune 500 companies, including AbbVie, Deloitte, EY, FedEx and Wells Fargo. The author of Work Simply: Embracing the Power of Your Personal Productivity Style, her views have been included several publications, including Fast Company, Forbes, the Harvard Business Review blog, The New York Times and more. For more information, visit workingsimply.com.

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FEATURE / BROKER EDUCATION FEATURES

LEADERSHIP

Curious leadership Rather than having all the answers, good leadership is all about the art of asking the right questions, writes Michelle Gibbings IN TODAY’S fast-paced world, there’s often an expectation that leaders need to have the answers at their fingertips, that’s it’s not OK to say “I don’t know” or “I’m not sure”. However, it’s not possible for leaders to have all the answers all the time. Additionally, we are surrounded by more information than ever, and it’s becoming harder to know which sources to trust. Discernment and good judgment are critical – particularly because in a complex, ambiguous and interconnected world, everything may not be what it seems. When we take something on face value, we may be missing key pieces of information or overlooking unseen options. And when leaders hold dogmatic views and are certain about their opinion, they open themselves to decision failures.

Your mindset is critical History is littered with stories of leaders who thought they had the answers, ignored advice and consequently made poor decisions – from the failure of Kodak to AOL’s disastrous purchase of Time Warner to the collapse of Lehman Brothers. When leaders are certain they are right, they close themselves off to other ideas and different opinions. This can lead to

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poor decision-making due to the bias we all have in how we process information and make decisions. Stanford academic Carol Dweck confirmed this in her research on fixed and growth mindsets. She found that people who have a fixed mindset see intelligence as static – a fixed trait. As a result, they always want to look smart and appear as though they have all the answers. They believe that success is based on talent alone, not work. This means they will avoid challenges and give up more easily. They also ignore feedback, which they see as criticism, and they often feel threatened by the success of others. In contrast, people with a growth mindset believe intelligence can be developed through hard work and effort. Consequently, they are more eager to embrace learning, take on challenges and persist in spite of setbacks. They love learning and usually display higher resilience. They are also more willing to learn from others and receive feedback.

Embrace scepticism In contrast, leaders who are comfortable with uncertainty have a growth mindset and are more willing to embrace the art of curiosity. They recognise that good decision-making comes from asking lots of questions, not finding the one right answer. And that’s where scepticism plays its part. According to the dictionary, to be sceptical is to be not easily convinced or to have doubts or reservations. It’s easy to paint the sceptic in a negative light – as the person who’s cynical and therefore to be dismissed. In fact, being sceptical means you are curious. It means you recognise you don’t have all the answers and are open to challenge and debate, rather than having a fixed idea or opinion. Sceptics question. They critically think and ponder ideas. They reflect on what is really happening. In doing this, they

take the time to ensure they are: Considering what’s happening around them and reflect on what they are seeing and hearing, and therefore what action should be taken Challenging assumptions they and others may have to ensure they are making a good decision and are being open to dissenting views and outlier opinions Checking their facts and interpretations of those facts as they are on the lookout for bias, which may adversely impact their thought processes and decisions

Uncover elements that may be missing from the conversation Ensure the discussion has examined the issue from multiple perspectives Challenge their own thinking process and the processes of those around them By asking questions, leaders show they are interested in the ideas being shared and open to new information and thoughts. They are also welcoming divergent views and encouraging debate and discussion – all characteristics that are critical for successful leadership. So instead of encour-

Leaders who are comfortable with uncertainty have a growth mindset and are more willing to embrace the art of curiosity. They recognise that good decision-making comes from asking lots of questions, not finding the one right answer The art of the good question Leaders who are comfortable with uncertainty have a growth mindset and are more willing to embrace their curiosity. They recognise that good decision-making comes from asking lots of questions, not finding the one right answer. This isn’t about asking a question to get the answer they want. Instead, leaders need to ask questions that: Clarify their understanding Help to seek out different ideas Ensure that outlier opinions and diverse views are heard Make sure the trade-offs from decisions are clearly articulated

aging leaders to find the answers, encourage them to ask the right questions. It was the French anthropologist Claude Levi-Strauss who said, “The wise man doesn’t give the right answers; he poses the right questions.” Being open to asking the right question is a hallmark of influential leadership. So, what question will you ask next? Michelle Gibbings is a change leadership and career expert and founder of Change Meridian. Gibbings works with global leaders and teams to help them accelerate progress. She is the author of Step Up: How to Build Your Influence at Work. For more information, visit www.michellegibbings.com or contact michelle@michellegibbings.com.

FEBRUARY 2015 | 49 49 www.insurancebusinessonline.com.au

FEATURE / BROKER EDUCATION FEATURES

INNOVATION

Creating a culture where innovation thrives What does it take to embed a culture of innovation in an organisation? Amanda Imber examines the key drivers of innovation culture DOES YOUR organisation have a culture in which innovation thrives? Are people challenging the status quo and being encouraged by leaders to take risks in pursuit of innovation? Or is the opposite true – managers don’t take time to listen to new ideas, and suggestions to make improvements are met with the comment, “But we tried that last year and it didn’t work”? Building a culture of innovation is hard work. Many leaders who have been given this directive immediately think about the Googles and Apples of the world. Images of beanbags and table-tennis tables fill their minds, as do ‘blue sky’ workshops in far-off country retreats. However, what we know from research is that all of this is completely ineffective in creating a culture of innovation. As is often the case, the voice of popular culture and fad-ridden management books wins out over the voice of scientific research. Jargonfilled, densely written journal papers are harder to access than the pop-psych books filling the shelves. The scientific research into how to create a culture where innovation thrives is both plen-

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tiful and precise. For example, Samuel Hunter from the University of Oklahoma, along with his colleagues Katrina Bedell and Michael Mumford, ran a large-scale meta-analysis to understand which variables had the biggest impact on innovation culture. They reviewed 42 journal papers, which, in total, had drawn

the “perception that jobs and/or tasks are challenging, complex and interesting – yet at the same time, not overly taxing or unduly overwhelming”. It is important that you don’t simply think about how to give people the biggest possible challenge. Instead, you should ensure that the

It is not uncommon for senior leaders to play it safe when confronted with the choice of whether to support innovation data from 14,490 participants. The research revealed 14 key drivers into innovation culture and ranked the drivers from most impactful through to least impactful. Let’s delve further into three of the top-ranking variables. 1 Find the right level of challenge

Hunter’s meta-analysis found that employees feeling a strong sense of challenge in their work is one of the strongest drivers of a culture of innovation. They defined ‘challenge’ as

level of challenge you set is one that is achievable. On the flip side, setting tasks that people are able to complete with their eyes closed will not breed a culture where innovation thrives. In a 2014 review of several meta-analyses, Silvia da Costa and several colleagues from the University of the Basque Country examined the difference in creativity for those in challenging versus non-challenging roles. The researchers found that if people are in a role that challenges them, 67% will demonstrate above-average creativity and innova-

your company doesn’t just pay lip service to risk-taking, but actually does it. You might even want to consider having a company award for innovations that were not successes, but where the learnings were really rich. Finally, consider reframing risk-taking in a positive way, such as talking about how risks provide people with the opportunity to learn. 3 Support from the top

tion in their performance. In contrast, only 33% of people in ‘easy’ jobs show aboveaverage innovation. At GE, Jeff Immelt famously introduced imagination breakthroughs [IBs], defined as an innovation that will contribute $100m worth of incremental growth, to his senior leadership team. Each member of the team was responsible for generating three IBs every year. The challenge is big, but the resources made available to leaders make it a challenge they can meet. Matching the level of challenge to an individual’s skill level is key to finding the optimal level. As a manager, take time to thoughtfully consider how you allocate tasks and projects to people. Ensure that you are matching these elements so that people feel a significant sense of challenge. 2 Encourage risk-taking

The notion of failure being unacceptable is one that I have found resonates with many organisations. Failure is generally thought of

as a dirty word, something that gets swept under the carpet when it does rear its ugly head. But being able to acknowledge and learn from failure is a huge part of building a culture where risk-taking is tolerated and innovation can thrive. Leaders play an important role in signalling that risk-taking is encouraged and that failure is tolerated. The Tata Group is an example of a company that has embraced risk-taking. Like many organisations serious about innovation, they have an annual innovation awards program, known as InnoVista. While that’s not particularly ground-breaking, what is innovative is the awards categories. InnoVista pays tribute to the group’s most outstanding and promising innovations, but there is also a category called Dare to Try, which was launched back in 2009. This category is reserved for ideas that were attempted but that, according to the Tata Group, “have fallen short of achieving optimum results”. As a leader, think about initiatives and actions you can put in place to illustrate that

Ensuring that senior leaders in your organisation understand and communicate the importance of innovation is critical. In fact, Hunter’s meta-analysis showed that people feeling that the top level of management truly supported innovation efforts was one of the strongest predictors of an innovation culture. Unfortunately, it is not uncommon for senior leaders to play it safe when confronted with the choice of whether to support innovation. I recently worked with the Australian leadership team of a global technology company. While innovation was a strategic priority for the company globally, the Australian CEO was frightened of innovation because it meant taking a risk. And this fear permeated the business, which meant that employees were too nervous to do anything differently because that was the message they were getting from the top. If you are a senior leader, make sure that you see your role as actually innovating, as opposed to just delegating it to other people. Research has shown this is a key differentiator between leaders in innovative versus non-innovative companies. Further, as a leader, think about behaviours you can engage in that symbolise your commitment to and support of innovation. Dr Amantha Imber is the founder of Inventium, a leading innovation consultancy. Her latest book, The Innovation Formula, tackles the topic of how organisations can create a culture where innovation thrives.

FEBRUARY 2015 | 51 51 www.insurancebusinessonline.com.au

FEATURES

WORK-LIFE BALANCE

Busy is not a badge of honour Being busy isn’t the same as doing meaningful work. Brian de Haaff explains how to do less of the former and more of the latter

THE PERSON in the grocery store tapping out messages between two cell phones at once. The jogger whose eyes keep darting to the notifications blipping on their smartwatch. The dinner party conversation that turns into a one-upping competition over who has less free time. Calendars doublebooked! Overwhelmed at work! I get it – we’re all busy. I often tell people who ask for some of my time that I am, unfortunately, oversubscribed. But is all this activity leading to anything real? Are we actually doing anything meaningful? There is a difference between busy work and meaningful work. As Thomas Edison once wisely put it, “seeming to do is not doing”. You need to check in with yourself and see which one you’re giving your time to – that is, unless you want to claim an overinflated sense of importance as an achievement. Let me explain. Research from Columbia

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Business School shows that busy-ness is often perceived as a status symbol. The key word here is ‘perceive’. That’s because the findings have everything to do with the image of being busy and nothing to do with the results. Busy is not a badge of honour. It only leads to greatness if you are working for a purpose and making progress towards goals that serve it. Of course, projecting the appearance of being out of time might be coming from a place of self-preservation rather than selfaggrandisement. It may be that people are afraid of not looking busy. In the absence of solid direction, they scramble to fill the day with tasks and meetings: “What would happen if people actually knew how little I have to do? Or worse, if they knew how little I have to do and how little I actually accomplish?” There’s only so much time – it’s a precious

resource, and we can’t buy more of it. So it would behove us all to use our time as efficiently as possible, giving it to what matters most. This is especially important if you are a leader, in title or in action, at your company. However, this concept applies to all of us, regardless of our specific profession or title. Here’s what I have found is essential to create an environment for doing meaningful work each day:

Show purpose Busy work happens when people don’t have clear goals. Eliminate the waste by giving work purpose. Create a clear visualisation of the goal and plan – one that’s accessible to everyone – and meet regularly to discuss how you’re progressing against your goals. This should be an active document that is shown and referred to often, not something that’s seen once at a kick-off meeting and quickly forgotten.

Prioritise value Check in often. Are there tasks that are taking too much time (and not adding much value)? Is meaningful work getting pushed aside in favour of easy to-dos with no impact? Prioritise the team’s workflow so they are focused on what will deliver the most value. And don’t be afraid to set aggressive deadlines for that work. Keep everyone zeroed in on meaningful achievement.

Create transparency One way we do this at Aha! is by having teammates document their “progress, planned and problems” each week. Not only does it keep people accountable for what they’re working on, but it also provides total transparency. By adopting this in your own organisation, you can create an environment where people really are busy

There’s only so much time – it’s a precious resource, and we can’t buy more of it. So it would behove us all to use our time as efficiently as possible, giving it to what matters most doing meaningful work, not just cultivating perception.

Let go Sometimes the need to be busy stems from a need for control: do all the work (and get all the credit). But

remember that being a leader is not about grandeur – it’s about helping others grow. Delegate when you can and give people meaningful opportunities that will grow their responsibilities and skills. If you want to be a great leader, you need to create an environment that is buzzing with

purpose. When you fall back on ‘busy’ as your go-to status, it signals to your team that they should do the same – and, worse yet, that you’re too busy to guide and provide input into their work. Distracted bosses are some of the most frustrating ones to work with. So take steps to reject busy-ness as badge of honour. Choose real purpose instead, and it will be clear where to invest your time. 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

FORGING CONNECTIONS Whether she’s coaching teenage gymnasts or engaging with clients, Laura Elliot knows the importance of building relationships

Elliot spent six years as a gymnastics coach, travelling the country with state and national teams; she credits her time spent nurturing young athletes with teaching her that passion and drive are just as important as natural-born talent. “Working as a coach taught me so much about the importance of taking a genuine interest in people and building trusting relationships with everyone you engage with. It’s the simple things that build connections, and the rewards are incredible.”

2004

COACHES GYMNASTICS

2010 CRACKS THE BOOKS Despite her demanding role at INSKIN, Elliot supplemented her full-time job with further studies, earning both a bachelor of arts degree in social sciences and a bachelor of communications degree in marketing. “I truly believe education is invaluable. Although studying full-time and working full-time was taxing, I wouldn’t change how I did it. Once I set my mind to something, I don’t give up.”

2014 MOVES INTO MANAGEMENT Although INSKIN was a startup when Elliot joined the company, it had close to 50 staff by the time she left, and she had a major role to play in driving that growth.

“My advice to any manager, at any level and in any field, is to lead by example, not by authority, and to invest in your relationships with your team as much as you invest in client relationships” 2018

JOINS AON

Keen for a new challenge, Elliot jumped at the opportunity to become a benefits concierge in Aon’s specialties health and benefits team. “I’m delighted to contribute to Aon’s prestigious health and benefits business and look forward to continuously driving positive client experience and ensuring all of our customers enjoy a seamless journey when it comes to their personal insurance needs.”

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2009 GETS IN AT INSKIN Elliot took a position with INSKIN Cosmedics in the company’s warehouse, but it wasn’t long until she was promoted into a customer-facing position. “I seized the opportunity, and my persistence paid off – from that moment, I quickly climbed the ladder within INSKIN. Great work is done by people who are not afraid to be great.”

2013

GAINS C-SUITE INSIGHT Elliot eventually became the executive assistant to INSKIN’s CEO, which allowed her to learn the business thoroughly. “I lived and breathed the passion, just as [my boss] did. I learned that in any role, nothing is beneath you. I believe the ‘whatever it takes’ mentality is an incredibly important asset to have in any role.”

2016

LEARNS THE THEORY Elliot took the opportunity to extend her educational background even further by taking on a master’s degree in management. “My passion is around the psychology of the workplace and employees, and that’s why I decided to study this degree. I believe management is about two things: individuals and processes, and whilst I felt comfortable in managing processes, I found the management of individuals and the psychology of the workplace particularly interesting.”

PEOPLE

OTHER LIFE The titles of Harlott’s EP and three albu ms (Origin, Proliferation, Extinction and None) form a theme “like the circle of hu manity,” Richards says

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

HEAVY METAL THUNDER When he’s not brokering insurance, Tom Richards lives the life of a touring musician with his thrashmetal band, Harlott MELBOURNE-BASED INSURANCE broker Tom Richards will never forget the first time he heard Metallica while riding in the family car as a teen. “I was hell-bent on this sound – it was grouse,” he says. “For the next two years, Metallica was all I listened to; that was the stepping stone for getting into heavy metal, and it really drove me to pick up the bass.” Richards has that experience to thank for his sideline career playing bass with thrash-metal band Harlott. The band, which he joined while still in high school, has amassed commercial success, a reputable record label and an international fan base that supports regular overseas tours. But Richards gets up on stage purely for the love of it. “We spend a third of life sleeping, a third working and have a third to do everything else,” he says. “Some people play golf; I play heavy metal.”

Years Richards has been playing bass for Harlott

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1,500

Size of the band’s largest audience to date

30–40

Length (in minutes) of a typical Harlott gig