Insurance Business 5.04

insurancebusinessonline.com.au Issue 5.4

TOP TALENT, TOP PERFORMANCE

Ironshore CEO Kevin H Kelley on the difference made by recruiting right

CLEARED FOR TAKE-OFF

The implications of new drone regulations

THE FIGHT AGAINST FRAUD

Lessons to be learned from the UK market

JOHN NEAL Global CEO talks QBE – Yesterday, today and tomorrow

6 1 0 2 S N U G G N YOU rance in Australia su in of s ar st ng si ri e Meet th

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AUGUST 2016

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CONTENTS

twitter.com/InsuranceBiz_au www.facebook.com/pages/ Insurance-Business-Australia

UPFRONT 02 Editorial

Searching for tomorrow’s leaders

04 Statistics

PEOPLE

40

TOP TALENT, TOP PERFORMANCE

FEATURES

YOUNG GUNS

22

Ironshore CEO Kevin H Kelley on the impact of recruiting the right people

18

What will the insurance broker of 2030 look like?

08 News analysis

What the local industry can learn from the UK in its efforts to curb insurance fraud

10 Opinion

Insurance fraud is corroding our society IAG acquires Westcourt network, while Honan Insurance Group announces deal with tech firm

14 Insurer update

FEATURES

BRINGING IT ALL TOGETHER

06 Head to head

12 Intelligence

Meet the rising stars of the insurance industry in Australia who may well be tomorrow’s leaders

PEOPLE

Report shows insurers are attempting reinvention with varying degrees of success

46

FUNDERSTRUCK! Are brokers and their clients increasingly seeing the value in premium funding?

Group CEO John Neal discusses the transformation of QBE that’s occurred under his leadership

Global insurance industry reacts to the result of the Brexit vote

16 Underwriting agencies update

New report by global law firm shows number of insurance M&A deals is down

FEATURES 44 Broker insight

Managing directors of EBM reflect on over 40 years of success in the broking business

PEOPLE 55 Career path

Berkley CEO Tony Wheatley continues to learn, more than 30 years into his impressive insurance career

FEATURES

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CLEARED FOR TAKE-OFF

The impact of new regulations on the commercial operation of drones

56 Other life

DUAL’s Damien Coates talks about his charitable exercise

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UPFRONT

EDITORIAL

www.insurancebusinessonline.com.au AUGUST 2016

Searching for tomorrow’s leaders

I

t goes without saying that the Australian general insurance industry has its fair share of impressive leaders. The space is full of individuals who’ve spent (sometimes) many decades in insurance, building distinguished careers. It’s difficult to genuinely dissent from the proposition that, overall, today’s general insurance industry is in capable hands.

Of course, as time goes on and the industry’s most knowledgeable heads retire, it becomes necessary for a new generation of leaders to build on the work of their predecessors and ensure that insurance continues to play the indispensable role it has fulfilled for centuries in helping to protect and build communities. As the world and clients’ wants and needs change, so too may the types of talented individuals the industry requires. Skill sets we may never have conceived of as being crucial in insurance may play an integral role in underwriting and placing risk in tomorrow’s world.

But whatever shape the industry of tomorrow ultimately takes, today’s professionals should derive some comfort from the fact that they’re working with and among many high-calibre young people, who are already demonstrating the potential to take on top decision-making responsibilities in a rapidly changing space.

Skill sets we may never have conceived of as being crucial in insurance may play an integral role in underwriting and placing risk in tomorrow’s world In June, Insurance Business put out an online call seeking nominations for our 2016 Young Guns Special Report – a list that seeks to recognise some of the most promising young talent in insurance. From brokers to underwriters to lawyers, we were staggered by the volume and diversity of high-quality nominations we received from across the industry. It’s buoying to learn not only of the depth of talent out there, but of those around these young professionals who’ve demonstrated their eagerness to have their high-achieving colleagues recognised.

We’ve scrutinised the list of applications we’ve received and selected 50 individuals to feature in our 2016 Young Guns Special Report. I’d like to extend a huge thank you to everyone who submitted an entry, and congratulate those who were chosen to be featured. Insurance Business spends considerable time acknowledging the accomplishments of those who’ve served the space for an extended period of time, but we’re similarly keen to spotlight the achievements of those whose greatest contributions to the industry are likely yet to come.

EDITORIAL

Editor Tim Garratt News Editor Jordan Lynn Production Editor Roslyn Meredith

CONTRIBUTORS David Hertzell, Abbey Burke

ART & PRODUCTION Design Manager Daniel Williams Designer Joenel Salvador Traffic Coordinator Lou Gonzales

SALES & MARKETING General Manager Peter Smith Commercial Development Manager Sophie Knight Marketing & Communications Manager Lisa Narroway

CORPORATE Chief Executive Officer Mike Shipley Chief Operating Officer George Walmsley Managing Director Justin Kennedy Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil

Editorial Enquiries tim.garratt@keymedia.com.au 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

Insurance Business is part of an international family of B2B publications and websites for the insurance industry Insurance Business Canada john.mackenzie@kmimedia.ca T +1 416 644 874O Insurance Business UK jonathan.connelly@keymedia.com T +44 20 7193 0935 Insurance Business America cathy.masek@keymedia.com T +1 720 316 0151 Insurance Business NZ peter.smith@keymedia.com.au T +61 2 8437 47OO 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.

Tim Garratt, editor

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UPFRONT

STATISTICS

THE CHALLENGE OF CHANGE

TRANSFORMATION IN PROGRESS? The report found most insurance organisations have hurried to begin ‘transforming’ themselves in recent times. Over a quarter of respondents advised of having commenced a business transformation initiative within the past two years, and approximately one third said they’d recently completed a major transformation.

A new global report examines how insurers are grappling with transformative initiatives INSURERS MUST reinvent their organisations, making more fundamental changes to their business and operating models than ever before.

That’s according to Martin Blake, NSW chairman and insurance leader at KPMG Australia, who spoke to Insurance Business following the release of KPMG International’s report, Empowered for the Future: Insurance Reinvented.

70+

Number of insurance executives who took part in the survey

62%

Percentage of insurance respondents who were C-suite executives

The report sends a clear message to insurance companies that transformative initiatives must be precisely that.

“Insurers really need to change every part of their business if they are to not just survive, but also thrive,” Blake says.

“The industry is likely to see more change and innovation in the next five years than it has in the last 50.”

48%

14%

Assessing the need for a business transformation initiative

19%

Percentage of insurance respondents from Europe

Percentage of insurance respondents from Asia-Pacific

Source: Empowered for the Future: Insurance Reinvented, KPMG International, 2016

THE SPECTRUM OF SUCCESS

THREATS TO CHANGE

Respondents were asked about the success of their business transformation initiatives.

When asked how they’d rate their company against an ‘ideal’ transformation that resulted in new, sustainable, value-creating business models and an efficient, agile operating model, only 5% reported being ‘close to ideal’.

Not ideal or far from it

The report acknowledges that insurers may, in fact, face more barriers to change than other sectors and industries. Cited most commonly by respondents as major threats to achieving transformational objectives were regulatory changes and organisations outside of the insurance sector.

40%

37%

37%

36%

32% 30%

57%

30% 25%

Between ideal and not ideal

23%

37% Close to the ideal

5% Source: Global Transformation Study, KPMG International, 2016

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22%

20%

Regulatory changes

Organisations outside your industry

Disruptive technologies

Start-ups and venture capitalists

Changing Traditional customer competitors in demographics your industry

Technology giants

Organisations in adjacent industries

Source: Global Transformation Study, KPMG International, 2016

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35% 30% 25%

8%

27%

16%

Planning a business transformation initiative

Started the implementation of a business transformation initiative (within past two years)

33%

Completed at least one major business transformation initiative (within past two years)

20%

Have completed several major business transformation initiatives (within past two years)

15% 10% 5% 0%

Source: Global Transformation Study, KPMG International, 2016

FURTHER THREATS Respondents cited several additional barriers to achieving transformation within their organisations. These included a lack of change management acumen, as well as underestimating the significance of the operating model changes required in order to effectively reinvent the company.

50% 40%

36%

20%

0%

KPMG’s report lists the most influential sources of insights and trends for business transformation strategies, according to surveyed respondents.

Traditional competitors in your industry

30%

10%

INSPIRATION FOR REINVENTION

Start-ups and venture capitalists

22%

42% 40% 37% 34% 25% 21% 21% 19% Lack of change Metrics poorly management defined acumen

Inadequate Underestimation Existing or legacy of the corporate technology significance of culture changes required

Resource constraints

Source: Global Transformation Study, KPMG International, 2016

Limited or poor Poor alignment decision- with customers’ making needs

Technology giants

Organisations in adjacent industries

32%

Regulatory

Changing changes customer 25% demographics

23%

Organisations outside your industry

37%

37%

Source: Global Transformation Study, KPMG International, 2016

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UPFRONT

HEAD TO HEAD

What will the insurance broker of 2030 look like?

How will the industry have changed?

How will they sell? How will they thrive?

Lambros Lambrou

Prue Willsford CEO ANZIIF

Account manager Austbrokers AEI Transport

By 2030, the Internet of Things will have reached market saturation. Nearly every object around us will be capable of delivering data, from driverless cars to smart clothing and advanced medical equipment. To adapt to this smarter world, the insurance industry will be forced to put the policyholder at the centre of transactions.

Risk assessment will be easier than ever before as insurers move to embrace cross-industry data ecosystems. Brokers in 2030 will need to adapt their traditional models and use new data to explore ways of identifying risks to advise their clients on risk management and their insurance needs.

Ultimately, increased access to data will close the protection gap and deliver more bespoke, flexible and innovative solutions for clients.

There will be major changes in broking, but some of the fundamentals won’t change at all.

The broker of 2030 will be a risk management expert whose role will be to identify risks and support their clients to manage them. Because risks will be different and changing rapidly, brokers will need to be curious, lifelong learners and critical thinkers who are incredibly agile.

Come 2030, brokers will use technology to enhance the client experience and improve their service offering. We will likely see them using digital to open up opportunities across the world.

But amid all this change, one thing will stay the same: exceptional brokers will be those who are highly skilled and client-service focused. As curious learners, education and professional development will be a crucial part of becoming that broker and, in this, will be crucial to success.

I think the future for insurance broking in 2030 will be one that fosters growth opportunities for many businesses. In the years ahead, we will be entering a new era of insurance and a risk environment we do not have a complete understanding of yet ... In the last few years, we have seen the landscape of risk transfer change dramatically. Emerging risks such as cyber and drone insurance will continue to develop in their own complexity, and this represents fantastic opportunities for insurance brokers who are investing in the future. As a profession, we need to have a clear insight into turning emerging risks into actionable solutions. Insurance brokers need to be on the front foot to educate fellow colleagues and themselves about where their value and expertise can be delivered to clients.

In a world of digital disruption, the level of our professional advice will become more relevant and those who don’t keep up will not survive.

CEO Aon Risk Solutions Australia

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Noel Kelly

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UPFRONT

NEWS ANALYSIS

THE FIGHT AGAINST FRAUD With the NSW Government outlining plans to address fraud in the CTP market, what can Australia learn from the global industry to help curb fraudulent claims?

INSURANCE FRAUD has been part of the insurance industry for as long as insurance has existed.

The Insurance Fraud Bureau of Australia estimates that insurance fraud costs this country up to $2.2bn per year, while the FBI pegs fraud costs at more than US$40bn per year, only taking into account businesses in the US, as the scope of global fraud continues to widen.

In Australia, state governments are beginning to grapple with spiralling costs in the CTP market, with fraud a main driver of higher prices, but David Hartley, director of insurance solutions at SAS, told Insurance Business the problem extends further than CTP. “In terms of GI, I think there is a recognition that probably one in 10 claims have an element of fraud,” Hartley said.

“That can be through opportunistic fraud, where I just say, instead of this very nice laptop I’ve got the next model, through to actually organised criminal gangs, who are saying that insurance companies are quite easy to take money out of. I think that is pretty well globally recognised, and I’ve seen that pretty much everywhere in the world.”

David Hertzell, an insurance expert from the UK, recently visited Australia and noted that the country could learn from counterparts

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overseas, particularly in the UK, in a bid to help curb fraud.

“It’s the same kind of claims behaviours, same kind of geographical intensity; all those kinds of issues are very familiar to us,” Hertzell said of Australian fraud activity.

“And what I think you could learn, quite usefully, is that you may be able to compress what’s taken us 10 years to do into a shorter timeframe by learning from us.”

is something which affects everybody,” Hertzell continued.

“You ultimately, though, have to deal with the same long-term issue which we’re dealing with, which is that this is not really about rules and regulations and changing the law here and

“It is easier to tell lies on an app or on a computer screen than it is if I’m looking into the blue or brown of your eyes or even on the phone” David Hartley, SAS A recent study by LexisNexis found that 68% of fraud mitigation professionals in insurance thought that sharing fraud data within the industry would be helpful in pre-empting schemes, and Hertzell backed the benefits of sharing.

“It would be sensible to share data more effectively. It’s not a competitive advantage. This

there… It’s actually fundamentally about changing social attitudes, and if it becomes a social attitude to defraud insurers, it’s going to be much harder to control than if you get the reverse position.

“And that’s a consumer education, public education process. The public have got to understand they pay for this.”

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INSURANCE FRAUD

BY THE NUMBERS

$400m

Fraudulent claims cost NSW motorists up to $400m extra each year in CTP premiums

$75

This equates to $75 extra per policy

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Insurance frauds can lead to up to 10 years’ imprisonment for those found guilty, alongside substantial fines

70%

CTP prices in NSW have risen by up to 70% since 2008

$1.2m Keith Swanson, SAS director of fraud and security intelligence, Asia-Pacific, told Insurance Business that a better use of data and analytics could also help curb fraud as the industry consistently relies on better data to make pricing decisions but fails to use the same

“It has always been interesting then, as why do you use that when you are making a pricing decision but you aren’t using the same principles to make a claims and a payment decision?”

Hartley noted that the future of insurance fraud could be more fraught thanks to the

“It would be sensible to share data more effectively. It’s not a competitive advantage. This is something which affects everybody” David Hertzell, British Insurance Law Association technology on claims.

“Often people think of analytics as always being predictive, and, in a sense, we have been doing that for years and insurers have been using that around actuary and underwriting. ‘We think that you are going to cost this much because of your demographics’ and those types of information,” Swanson said.

prevalence of online offerings and insurance apps.

“It is easier to tell lies on an app or on a computer screen than it is if I’m looking into the blue or brown of your eyes or even on the phone,” Hartley stressed.

“I am aware from working across, particularly, northern Europe and the Nordics that a number of insurers have gone to a digital approach both

The NSW Government announced extra funding targeting CTP fraud in the June budget Sources: State Insurance Regulatory Authority, Insurance Fraud Bureau of Australia

for new business and for claims and claims notifications, and they have seen significant increases in claim incidents on those books of business.

“Now, is that because of fraud? At the moment, we don’t really know.

“I think that the digitalisation message is absolutely correct; it needs that and it needs to be competitive, otherwise you will get start-ups coming in and taking significant market share.

But they need to build in a safeguard to make sure that we are not helping this rise of the armchair fraudster as one of those pillars of the programs.

“What I am seeing globally is that insurers are not doing that; it is all about the customer journey and making it easy, whether that is new business or a claim, and that is all good, but you need to put in real-time analytics to look for the bad.”

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UPFRONT

OPINION

INSURANCE FRAUD IS CORRODING OUR SOCIETY Insurance expert David Hertzell discusses learnings from a recent UK taskforce into fraud and why the industry in Australia should pay attention FRAUD HAS come a long way in the last few years. Most insurance transactions are automated and depersonalised. It is much easier to steal from a computer than from a person. Last year the Association of British Insurers estimated the total amount of fraud in the UK was £3bn per year. That was no more than an educated guess. But whether the real figure is half of this or twice as much, it is still a lot of money.

But insurance fraud isn’t a victimless crime. It is socially corrosive and has been found to fund other criminal activity. Just as importantly, it costs honest policyholders a lot of money. In NSW the average green slip for a car in Sydney now costs more than $600, and prices have risen by up to 70% since 2008, with fraud being a contributing factor. NSW government data indicates that fraudulent and exaggerated claims are contributing to a $75 increase for each NSW green slip.

In the UK, it is up to £50 per year – almost A$100. In the UK we established a specialised Insurance Fraud Taskforce. Last week, the British Government approved all 26 of our recommendations. I’m confident we are on course to defeat this social evil that has spread across the world.

The fact that fraud has been the main trigger behind such an increase in green slip prices shows that you’re facing the same drivers of this criminal activity, irrespective of scheme design.

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I can also see similarities in the kinds of fraudsters that are eroding a system which was set up to protect the injured.

Fraudsters are usually organised criminals or opportunists.

We found different deterrents apply to the different types of fraudster, and that fraud can occur either at the application or claims stage. Indeed, there is often a link

CTP reform process want success for all involved, particularly NSW motorists, I urge them to start considering some of our recommendations. There must be a dedicated effort towards increasing consumer understanding about insurance, how it works, and why fraud is not harmless. That fraud puts the stress and onus back on the fraudsters’ neighbours, friends, business colleagues and the community as a whole to fund their deception.

One of our most important recommendations involves the use and reliability of data: that there should be an increased take-up and sharing of data to enable all involved to see when a fraud is being committed. I would also stress that regulators understand that insurance fraud crosses different sectors, from telecom regulators to professional bodies such as those of solicitors and doctors. In the UK we needed better coordination among our regulators on fraud, with better emphasis on fraud prevention. I can hazard a guess that the same applies here in Australia.

There is one key lesson that I can impart to those undertaking the CTP reform: Fraud

Insurance fraud isn’t a victimless crime. It is socially corrosive and has been found to fund other criminal activity. Just as importantly, it costs honest policyholders a lot of money between the two.

In the current climate that businesses find themselves in, especially banks and insurers, there is a sentiment of disenchantment among consumers. With headlines about price obfuscation, executive excess and tax avoidance, insurers aren’t highly regarded; there is the perception that they will “rely on the small print” to avoid paying claims.

The problem is not helped by lack of awareness of the value of insurance and what the policy terms are. Indeed some opportunistic fraudsters believe they are unlikely to be caught, or even see the inside of a courtroom if they are.

If all the stakeholders involved in the

can be effectively combated, but only if effort and resources continue to be devoted to detection and prevention over the long term.

You are just at the beginning of your journey, and there will be many obstacles in your path, but the end is worth it: the creation of a more just insurance system that exists to protect those who need it the most.

David Hertzell is president of the British Insurance Law Association and chair of the Chartered Insurance Institute Professional Standards Board. He chaired the government taskforce on insurance fraud whose recommendations have been accepted by the UK Government.

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THE RISE OF AIRBNB Law firm YPOL’s Abbey Burke discusses issues associated with insuring the sharing economy SINCE AIRBNB launched in Australia, take-up of the San Francisco-based company’s services has grown rapidly to 70,000 listings.

Like the ride-sharing app Uber, Airbnb is part of the ‘sharing economy’ that allows people to use their houses, spare rooms or cars to make extra money.

From an insurance perspective, Airbnb presents compelling new opportunities for underwriters, some of whom are courting homeowners who use the new platform.

However, because of the current state of the law, the insurance question is not straightforward.

It is our view that regulatory reform will benefit all concerned, by eliminating some of the uncertainties of insuring a home on Airbnb.

Risks for homeowners So what are the risks of listing your property on Airbnb? The risks can be illustrated by some of the cases. In 2013, the NSW Court of Appeal found that the owners of a property were liable when a guest who rented part of the property for holiday purposes slipped on a driveway, breaking her ankle: Panther v Pischedda [2013] NSWCA 236. In a case in Calgary, Canada, a young couple offered their home on Airbnb to four adults who claimed to be visiting town for a wedding. The guests held a party later described by police as a “druginduced orgy”, causing damage estimated at more than $50,000.

Coverage offered by Airbnb Airbnb does provide some protections to its hosts, but these have limitations and sometimes lack transparency. Airbnb’s Host Guarantee Program, which is not insurance, allows hosts who have suffered property damage of up to $1m to ask for reimbursement. Airbnb makes the terms of this program publicly available, which show that it does not cover hosts for liability if a guest

is injured or killed. Airbnb has also introduced a Host Protection Insurance Program, which provides $1m worth of insurance coverage for property damage and bodily injury to others arising from an Airbnb stay. However, Airbnb does not make the terms of this policy available to hosts. Instead, it provides a threepage ‘good faith summary’ of the policy, which lists a number of ‘key exclusions’, including intentional acts.

tourist accommodation by your local council or other government authority. This is a concern because of the patchwork of regulations that apply to holiday letting in Australia.

In NSW for instance, each council has its own rules, usually found in the shire’s local environmental plan (LEP). So, as the law currently stands, people thinking of offering a home on Airbnb need to check whether this is permitted by their local council to avoid triggering an exclusion like the one in ShareCover.

This situation has been decried by hosts and councils alike, some of whom are calling for the state government to introduce its own approval process for holiday accommodation.

A parliamentary inquiry on this question is currently underway, with recommendations due in August 2016.

New products offered by insurers Given the limited protections offered by Airbnb, hosts may want to organise their own insurance. However, a host’s existing home and contents policy may not apply if they offer their home on Airbnb, as this may be a ‘commercial

Regulatory changes On 2 June 2016, the European Commission issued guidance to EU members that outright bans and harsh restrictions on sharingeconomy businesses should only be used as

Because of the current state of the law, the insurance question is not straightforward use’ that is excluded. Nor are landlord insurance policies necessarily a good fit, as these are typically designed for long-term arrangements where there is a residential tenancy agreement in place.

Responding to these developments, IAG has advertised a new product called ShareCover, which is described as being: • designed to cover some of the additional property damage and public liability risks of offering your home on Airbnb or its competitor Stayz; • designed as an add-on, not a replacement for a home and contents policy; and • projected to cost about $5–$10 per night

a last resort – a slap on the wrist for cities like Berlin which have tried to reign in Airbnb.

Days later, the South Australian Government followed the lead of the EU when its attorney general announced that South Australians could legally offer their homes on Airbnb without getting development approval.

While we wait for the outcome of the NSW inquiry, it is to be hoped that NSW will take the lead of jurisdictions like SA and clarify that it is legal to offer your primary residence on Airbnb, subject to common-sense limitations.

Such a development will give insurers and hosts alike greater certainty about insuring a home on Airbnb.

ShareCover exclusions Despite the apparent benefits of ShareCover, IAG’s product disclosure statement lists a number of exclusions, including where a property is “not permitted to be used” as

Abbey Burke is a solicitor at Yeldham Price O’Brien Lusk (YPOL), a specialist law firm focusing on insurance, reinsurance and commercial litigation.

Burke is based in Sydney.

www.insurancebusinessonline.com.au

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UPFRONT

INTELLIGENCE CORPORATE ACQUIRER

TARGET

PRODUCTS COMMENTS

IAG

Westcourt General

Major insurer buys leading AR network to combine with existing business

Drake Resources

Genome Technologies

Global asset company makes dive into cyber market with $11m deal

CBL

Securities and Financial Solutions Europe SA

Regional insurer acquires its largest single client for $143m

IAG SNAPS UP WESTCOURT

IAG has acquired leading authorised representative network Westcourt General Insurance Brokers in a deal that will create the biggest AR network in Australia.

The Westcourt business will be integrated into IAG’s existing AR business, National Adviser Services, “over time”, IAG said in a statement.

“The AR segment is one of the most rapidly growing segments in the broader broker market, so it makes sense to look for ways to grow and enhance our existing offering,” said the chief executive of IAG’s Australian Business Division, Ben Bessell.

“It’s also an opportunity for IAG to integrate two very successful and complementary businesses and provide a compelling value proposition to the AR networks and customers who value advice.”

CBL PLANS $143M ACQUISITION

CBL Corporation Ltd is planning to acquire its largest single client, Securities and Financial Solutions Europe SA (SFS), also France’s largest specialist producer of construction sector insurance. The company said in a statement that it estimated the price would be $143m. The deal will also include IMS Expert Europe SA (IMS), SFS’s claims management operation.

“SFS is complementary to our existing managing general agent based in the UK, European Insurance Services Ltd [EISL], which also distributes construction sector insurance products in France,” CBL managing director Peter Harris said of the deal.

“SFS and IMS would add significant specialist skills and resources that would enable CBL to grow both businesses,” Harris said.

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Brent Lehmann of Willis Towers Watson and IAG’s Scott Gunther

HONAN GROUP ANNOUNCES TECH DEAL

Honan Insurance Group will partner with ASXlisted technology firm BPS to offer insurance products and services to 24,000 SMEs. The partnership will see Honan and an unnamed “select group of global insurers” offering “competitively priced and tailored business insurance packages” to the vast SME merchant base of BPS. Products available will include business and travel insurance, and are designed specifically for various business types, BPS revealed in a statement to the ASX. “With our expertise in this space, and a shared passion for innovation and high-quality service, it was only natural a partnership was formed.”

AUSSIE START-UP TAKES AIM AT INSURANCE

Huddle Money, a peer-to-peer financial services business that aims to set up the world’s first peer-to-peer bank, will begin its operations in insurance.

The business has raised $6m in funding, led by Hollard Australia managing director Richard Enthoven.

“In time, Huddle Money will offer new ways to access financial advice and information, and buy financial products like insurance, investments and loans,” Justin Wilby, co-founder of Huddle Money, wrote on Medium. com. “But initially we will launch with a range of money management tools, alongside insurance products underwritten by our partner.”

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INSURER AND BROKERAGE PARTNER FOR START-UP INSURANCE OFFERING

Willis Towers Watson and IAG have announced a ground-breaking partner­ ship in a bid to strengthen their ties with the start-up community in Australia.

The insurance powerhouses will come together to offer a new insurance solution called StartUpCover, designed to help start-up businesses address their insurance and business needs.

“Being very much driven by customer insight, we used a lot of data and analytics to deeply understand the characteristics, the size of the market, and where these customers actually were, not just in micro-SMEs but in SMEs more broadly,” Scott Gunther, customer and partner insights at IAG, told Insurance Business.

AGA AND CITIBANK TO OFFER COMPLIMENTARY TRAVEL INSURANCE

Allianz Global Assistance (AGA) has partnered with Citibank to offer eligible credit card holders complimentary travel insurance with the option to cover pre-existing medical conditions.

This travel insurance applies to customers with Premium, Business and Rewards credit cards under the Citi, Diners, and Citi Partners branded cards.

“Through our new partnership with Citibank, we’re thrilled to provide our customers an enhanced offering, particularly with the option to secure cover for preexisting medical conditions,” said Brad Smith, AGA’s chief sales officer.

REGULATORS SUPPORT FINTECH TOGETHER

ASIC has signed an Innovation Functions Co-operation Agreement with the Monetary Authority of Singapore to help encourage innovation in their respective countries’ financial sectors.

The agreement allows fintech firms in Singapore and Australia to initiate negotiations in each other’s markets faster and obtain information on the needed licences. This helps cut down on regulatory uncertainty and time to market.

Greg Medcraft, chairman of ASIC, said it was important to cut down on the amount of international red tape in a bid to boost innovation.

PEOPLE NAME

LEAVING

JOINING

NEW POSITION

Adam Rhodes

Lockton Companies Australia

Origin Insurance Brokers

Managing director

Scott Loder

Marketform

Proclaim

Senior specialist in medical malpractice

Anna Lenahan

Suncorp

Commonwealth Bank

Senior role

Jayson Symonds

DUAL

XL Catlin

Financial lines underwriter

Debbie Wilson

n.a.

AIG

Chief financial officer

Liam Burrell

Chubb Australia

Chubb Singapore

Division head of property and casualty

Monica Holland

n.a.

Chubb Australia

Independent broker unit and global broker unit manager for South Australia and Northern Territory

Gerardo Cor

QBE

HDI Global

Underwriter property and liability

Jeff Smith

n.a.

One Underwriting

Executive chairman

Ross Campbell

Willis Towers Watson

Aon Risk Solutions Commercial

Placement director

Paul McNamee

n.a.

Chubb

Regional president, Asia-Pacific

Mark Milliner

n.a.

Insurance Council of Australia

President

Steven Manning

n.a.

LMI Group

Director

AIG APPOINTS NEW CFO

Debbie Wilson has been announced as the new chief financial officer of AIG Australia.

Wilson will also retain her responsibilities as CFO of AIG New Zealand, and the CFOs of AIG China, AIG Taiwan and AIG Hong Kong will report to her.

Wilson joined AIG in 2011 as CFO of AIG New Zealand and was acting general manager at AIG New Zealand from June 2014 to February 2015.

Stuart Farquharson has left the business to “pursue other opportunities”, AIG said in a statement.

MILLINER RETURNS AS ICA PRESIDENT

The Insurance Council of Australia (ICA) has announced that Mark Milliner has returned as president.

Milliner has moved back to ICA from IAG, where he was chief operating officer. He was formerly a director of the ICA board from 2009 to 2015 and held the position of ICA president from 2012 to 2014.

“I am pleased to accept the role of ICA president and look forward to working with ICA CEO Rob Whelan and the board on ensuring a sustainable future for the industry, and engaging with stakeholders to build stronger and more resilient communities,” Milliner said.

Andy Cornish has retired from the ICA board, having served in the position since 1 January 2015.

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UPFRONT

INSURER UPDATE NEWS BRIEFS Berkshire Hathaway launches A&H products

Berkshire Hathaway Specialty Insurance (BHSI) has launched a suite of accident and health products in Australia and announced two new hires. Daniel Kenny has been appointed head of accident and health, and Shaun Higgerson as senior underwriter, accident and health. The new products include corporate travel insurance, group personal accident insurance, expatriate insurance, inpatriate insurance, journey insurance and voluntary workers insurance. “The financial strength of BHSI and skill and responsiveness of our team will give us unique flexibility in tailoring A&H protection for companies and employees throughout Australia,” said BHSI Australasian president Chris Colahan.

AGA’s ‘game changing’ roadside assistance app

Allianz Global Assistance (AGA) has launched a new roadside assistant app that it describes as a ‘game changer’ for Australian consumers. The app, called gotU, is a first-of-its-kind, pay-asyou-go solution for roadside assistance that requires no membership or annual fee. It targets the millennial market, and customers will only be charged for the services they use. “Times are changing and those who don’t keep up will not be around in five years,” said Craig Dalzell, CEO of AGA, describing gotU as a “bold and progressive offering”.

Report identifies gap in insurer profitability

According to Aon Risk Solution’s 1H 2016 Insurance Market Update, a gap is beginning to grow between Australian and global insurers as far as profitability is concerned.

It notes this is especially the case in

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the mid-market sector. James Baum, managing director and chief broking officer, Pacific, at Aon Risk Solutions, said the insurance market continues favouring buyers, and mergers and acquisitions still shape the outlook.

“Heightened competition, buoyed by an abundance of global insurance capacity, coupled with falling premium rates, have underscored the 2016 edition of the Insurance Market Update 1H,” Baum said.

CGU seeing Tropfest through for three more years

CGU has signed a deal with the Tropfest short film festival to sponsor the world-famous event for the next three years. Last year, the insurer made national headlines when it stepped in to save the event after it was cancelled for financial reasons.

Tropfest founder John Polson said he was thrilled to have CGU back on board. “Their support has been critical to the future of the festival and, in turn, the future of many emerging Australian filmmakers,” he said in a statement.

Fosun pursues Ironshore IPO

Chinese organisation Fosun International has revealed it is seeking approval for an IPO for international insurer Ironshore.

In a statement, Fosun said it had submitted an application to the Stock Exchange of Hong Kong, alongside a separate listing in the US. The potential size of the IPO was not revealed, but Fosun assured markets the process was only in its infancy. It was only early last year when Fosun completed the purchase of the 80% of Ironshore it hadn’t already acquired.

INDUSTRY REACTS TO BREXIT RESULT The historic result shocked the world, but what will be its impact on insurance?

Industry leaders and commentators shared with Insurance Business their thoughts on the potential ramifications for the industry of the momentous and unexpected result of June 23’s Brexit vote in the UK. Dean Carrigan, an Australian partner at law firm Clyde & Co, said Asia-Pacific brokers and insurers, like their counterparts around the world, would be affected by the significant uncertainty arising as the UK moves towards an exit over the course of the next two years and beyond.

“It is clear that a period of uncertainty will persist for at least the short to medium term,” Carrigan said.

“Brokers and insurers with operations in the UK and EU, and which have clients with operations in the UK and EU, will need to carefully consider the implications arising from the vote. In the immediate short term, the significant doubt and uncertainty which exists is likely to cause an increase in the need for risk mitigation and insurance solutions in all aspects of business, but in relation to international trade, multinational projects and the finance sectors having an EU/UK connection in particular.”

Carrigan added that, for forward-thinking brokers and insurers, the uncertainty presented significant business opportunities. “Especially to develop new services and risk/insurance products in order to support and provide guidance to clients who have already been, or are likely to be, affected by the changes,” he said.

Managing director of CBL Insurance Peter Harris said uncertain times could be ahead

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for insurers domiciled in Britain, which could impact on Australian brokers.

“All brokers are going to find that UK insurers and their compliance departments are going to be fully focused and occupied on shifting domiciles,” he said.

“Many will not want to shift their UK domicile into an EU domicile, because it could make it non-compliant for its UK business. Splitting its operation and capital base would raise even further complexities. The focus that UK and Gibraltar insurers will have on this domicile issue will make it more difficult for Australian brokers who place cover with UK insurers to get new product and new programs in Australia approved through their UK insurers.”

“It is clear that a period of uncertainty will persist for at least the short to medium term” NIBA CEO Dallas Booth said Australian brokers would continue to work as normal in the aftermath of Brexit.

“Brokers will continue to do what they have done in the past; they will assess the best cover and the best value for the insurance needs of their clients,” said Booth.

“Lloyd’s of London and the other UK and European insurers … are and will remain strong and there may well be impacts through exchange rate movements; there may well be impacts on price. Nobody seems to be aware of what will happen, so brokers will continue to do what they have always done and look at strong security, quality cover and value for their clients.”

Q&A

Paul Miller General manager, Asia Pacific SSP

Background Paul Miller has over 30 years of consulting experience covering both technology and business, with clients spanning multiple industries, particularly insurance. He joined insurance technology vendor SSP in his current role in 2011

Preparing for the future How serious a threat do you believe P2P insurance businesses will pose to the Australian industry?

We’ll probably see some sort of P2P launch in the Australian market in the next 12 to 18 months. Early P2P propositions in Australia are likely to follow those of other countries in that P2P schemes would look to provide cover for excess/deductible on larger risk classes. Alternatively, insurers may look to target millennials through a social P2P proposition providing cover on lower-value items where the pool of premiums are sufficient to cover in the event of loss. Challenger brands, or larger insurers through joint ventures with start-ups, are most likely to be the first to launch P2P insurance in Australia as the larger insurers are more likely to be constrained by inflexible IT systems. Millennials are the perfect target segment for P2P propositions as they have already embraced the broader sharing economy. However, insurers need to be careful not to overcomplicate the offering for this market segment.

Do insurers still need to pay more attention to the behaviours and expectations of younger generations?

Consumers’ behaviour and needs are evolving as technology changes the way they interact with every type of organisation.

According to the World Insurance Report 2016, insurer customer satisfaction overall has gone up; however, for millennials it has dropped. This can be attributed to the fact that amongst millennials there are high expectations and strong preferences for digital and social media channels, and gaps in insurer offerings tend to lead to less positive outcomes for the consumer. The insurance needs of millennials are very different to those of the baby boomer generation, and insurers that adapt and build capability through technology that enables connected relationships with millennials will have greater success and capture greater market share than those that do not.

What specific technologies should insurers begin to exploit in order to best prepare themselves for the threat of disruption?

Insurers need platforms that allow them to innovate and adapt to market changes quickly. It is difficult to predict which technologies will prove to be the most disruptive; however, not being able to react quickly due to ineffective and inflexible systems will hurt established insurers. Telematics is likely to gather momentum as a disruptor to traditional motor insurance; however, P2P, analytics around data generated from the Internet of Things, and further advances and innovation in distribution and product offerings to millennials will be key to capture market share. We’ve already seen at least one of the large Australian insurers make moves towards a ‘buy when you need’ granular insurance product to be purchased via a mobile phone app.

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UPFRONT

UNDERWRITING AGENCIES UPDATE

M&A DEALS DOWN, REPORT SAYS A global law firm’s recently released report shows insurance companies are looking for growth by alternative means

The number of completed M&A transactions in the global insurance industry has fallen.

According to Clyde & Co’s Search for Growth report, there were 173 deals between October 2015 and March 2016, down from the 250 deals done in the previous six months. The report noted that eight of the top 10 deals in the second half of last year involved insurers in Asia.

Andrew Holderness, Clyde & Co’s global head of its corporate insurance group, high­ lighted that while M&A remains an avenue for growth, insurance businesses are exploring alternatives, including expansion into

NEWS BRIEFS

new markets, broadening their portfolios and utilising new technologies.

“While the appeal of M&A is clear, the challenges of finding the right target and, significantly, at the right price may cause insurance businesses to consider other routes for growth,” Holderness said.

“New markets are obviously appealing. In Singapore, for example, we have seen an increase in interest from international re/insurers looking to set up shop and establish a base for wider access to markets across the region. Likewise, Miami is emerging as a regional hub for Latin

UAC looks for new partner

The Underwriting Agencies Council (UAC) recently announced its search for a new strategic underwriting partner to replace Vero. UAC says it still has the support of principal strategic underwriting partner Lloyd’s and strategic underwriting partner Hollard Insurance. In a statement, UAC chairman Lyndon Turner said, “ [D]ue to the regular enquiries we receive from the market, the board feels it only best to open a formal process of discussions with the wider market to ensure we select the best new partner to join us.”

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American and Caribbean re/insurance business – attracting a number of international players who are drawn to the city’s deep connections with, and accessibility to, the region.”

Holderness said another largely untested option was entering joint venture agreements with local partners.

“The challenges of finding the right target ... at the right price, may cause insurance businesses to consider other routes for growth” “This year, foreign direct investment limits have been raised in markets such as China and India, offering foreign insurers greater access to some fast growing markets.”

Holderness also mentioned the trend of larger insurers investing in technology start-ups with the aim of securing future growth.

He referred to recent data from Accenture indicating that technology start-ups attracted US$2.6bn (A$3.47bn) of investment last year, a sharp increase from US$800m (A$1.068bn) in the year earlier.

“Market conditions in many insurance sectors are not expected to improve in the foreseeable future,” said Holderness. “As a result, insurance businesses will need to examine every available avenue as they look for creative answers to the issues they face in the next few years.”

Three new subjects at Brooklyn Uni

Brooklyn Underwriting’s Brooklyn University has announced three new course subjects. The new subjects are Natural Catastrophes, Claims Handling 101 and Insurance Lingo. “The first claims subject … was created in response to feedback from students,” Tim Fairbrother, manager, partnerships, at Brooklyn Underwriting told Insurance Business.

“The Natural Catastrophes, we think, is an area that’s … increasingly important in the world we live in.”

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Q&A

William Legge General manager UNDERWRITING AGENCIES COUNCIL (UAC)

Background William Legge became UAC’s inaugural general manager in May 2011. According to Legge, UAC voting members total 106, employ more than 3,000 staff, and write more than $3bn in annual GWP

UAC’s North American partnership Why has UAC partnered with the American Association of Managing General Agents (AAMGA)?

The main reason is really to widen the library of resources available to the membership … The AAMGA [has] been going for 97 years; they’ve got 3,500 members, they’re across the entire breadth, and now depth, of the United States. Our thought at the board level was that we should be looking to expand the horizons of our membership because a lot of our members are now looking overseas to expand their portfolios. If we start liaising and affiliating with other organisations similar to ourselves, that gives them an avenue to get more information, to exchange ideas, to just widen the scope of the Australian market to the overseas market. And that’s exactly what is happening.

Can you talk about the recent UAC visit to Phoenix, Arizona?

The trip was excellent … It was what [the AAMGA calls] ‘the annual meeting’, and they had around 1,200 delegates there ... One of the main reasons I wanted to go there and talk with [AAMGA CEO] Bernie Heinze … was to work out how he handles a monster of that size … What we want to do with the UAC is expand our interests for the sake of the membership, but we don’t want … a bureaucracy. So how do we actually do this?

How does Bernie do this? He’s got a staff of 10 and he’s got 3,500 members, and it’s really interesting to

Talbot creates new Australian role

Talbot Underwriting has announced that Steve Ward has been appointed to the newly created role of head of underwriting at its Australian office. Ward will also continue in his current role of senior class underwriter of crisis management. Managing director of Talbot Australia Adam Matteson said the creation of the role would help “the expansion of the syndicate into new lines and the general optimistic growth view that we have, moving forward”. Ward’s CV includes roles at XL Catlin and AIG.

see how he’s done it … They were fantastic, and very demonstrative … Both Lyndon and I came back with ideas of how we could tweak what we do. What we do works, so we don’t want to change it, but we do want to tweak it and add things to it to make it more attractive to sponsors and participants … It’s what we can add to it which enhances the image and value of the UAC to members and potential sponsors. [That’s] very important.

Can you talk about the benefits you foresee?

What we felt will come out of this is the ability to interact with a much larger organisation … with the same aims and goals as ourselves, both for the benefit of the members, in being able to say, ‘I want to know more about this unusual product, which I know you’re selling in the United States … ’, but also in, ‘I wouldn’t mind … [taking] the steps into continental USA.’ Also, … having a commonality of approach to the regulators … It became very apparent in the first few hours in the USA that was one of their main goals; they wanted to be able to say, ‘We see that the insurance company market is actually adopting a more unified approach to regulators globally, because the regulators are [taking] a global approach. It wouldn’t hurt for us in our own particular segment of the industry to do the same – not as an antagonistic thing, but to encourage the regulators to realise exactly where we sit in the marketplace.’

New agency aims to fill market gap

The founder and lead underwriter of recently launched agency TK Specialty Risks told Insurance Business about the gap in the market that led to the establishment of the business. “South Australia simply didn’t have a dedicated financial lines underwriting agency,” said Tom Kent. “[U]nfortunately, with the commoditisation of professional indemnity and the strong move we are seeing towards non-advice-based sales models, markets in SA, TAS, NT and even WA, to a certain extent, have been sorely neglected.”

UAC’s Adelaide expo this month

The Underwriting Agencies Council (UAC) will hold its annual Adelaide expo at the Hilton Hotel on Thursday 25 August. Co-hosted by NIBA, the event will take place in the hotel’s Victoria Room from 10am to 2pm.

For the first time this year, UAC will offer a travel prize for brokers attending. Two of those brokers will be selected, from two separate draws, and will each receive $1,000 worth of travel vouchers. For more information and to register for the event, log on to uac.org.au/event.

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PEOPLE

THE BIG INTERVIEW

BRINGING IT ALL TOGETHER QBE Group CEO John Neal sits down with Insurance Business to discuss the transformation and unification of the Australian global insurance giant SITTING ACROSS the table from QBE’s CEO John Neal at the group’s impressive Sydney headquarters, Insurance Business asks him to single out what he considers the insurer’s greatest achievement since he assumed the top job.

“I would say that QBE in 2016 is a far more focused business than it was four years ago,” he says. “Whilst we boasted significant global reach, we were really a very federated business, each division operating largely geographically and independently of each other.

“I would say now, whether you talk to our customers, our brokers or our business partners, there’s a very strong understanding of QBE’s purpose, its vision, what it can stand for for its customers, and how relevant we are in a global marketplace. And that’s a lot harder than it sounds – to actually get the business to think and behave and act as one company.”

It’s a business Neal described recently to investors as one that’s transformed into a “distinctive top 20” property and casualty insurer – one of only 15, he says, that operate “truly globally”. It’s a business that wrote approximately $15bn in premium in 2015, $3.8bn of which came from Australia and New Zealand.

North America Under Neal’s leadership, QBE has substantially turned around the fortunes of its North American operations, a business that produced a profit last year. Its combined operating ratio has improved substantially in recent years, from 111.5% in 2013 to 99.2% in 2015.

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North America, Neal says, has been his greatest challenge as CEO. “I think the good news is that we’ve made really significant progress in that division, notably in returning it to underwriting profit, in particular building a meaningful US specialty business and really improving the quality of our leadership there,” he says.

QBE will pursue significant opportunities it sees in the North American specialty market.

“The statistic that always amazes me is one dollar in two dollars of the world’s gross written premium for commercial and speciality insurance is written in North America,

And where precisely do Neal and QBE see prime opportunities in specialty lines?

“We’re looking quite hard at professional liability. We’re looking at healthcare, marine, general aviation and classic specialty product sets,” he says. “And I think we’re adding value.

We’re adding to a marketplace that isn’t congested, where there is opportunity and brokers are looking for choice.

“It’s not been easy to grow the business, but we had a five-year plan and that five-year plan is in year four and is nicely on track with where we thought it would be. So we’re excited. It’s a good place to be in North America at the moment.”

“Whether you talk to our customers, our brokers or our business partners, there’s a very strong understanding of QBE’s purpose, its vision, what it can stand for for its customers, and how relevant we are in a global marketplace” Bermuda or London. It’s still that important,” Neal tells Insurance Business.

“The North American specialty market is worth between $80bn and $90bn, so more than twice the size of the Australian market in its entirety. So, even narrowing North America down, it’s still a vast place, and it’s not as complex as people think … but you’ve got to have the underwriting expertise, the claims expertise, the risk management capability to play in that market, all of which we’ve developed and built.”

Emerging opportunities Twelve per cent of QBE’s business is sourced from its emerging markets division, encompassing 22 countries across Latin America and the Asia-Pacific.

“I think the good news for me, coming in as CEO, was that we’d been in some of the Asian markets for over 100 years,” Neal says.

“We’ve not had the complication of needing to acquire or buy into the markets, which is very expensive and very complex.”

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PEOPLE

THE BIG INTERVIEW respect, and our intent is to see across the emerging markets if we can double the size of the business over a five- to seven-year period. I say that without growth being the overarching objective. Getting the right margin is the objective. But those markets certainly create greater opportunities for growth than developed markets.”

Discussing challenges ahead, Neal emphasises the importance of ongoing awareness of the macro environment.

“The macro backdrop we’re operating in is not straightforward and is probably as challenging as anybody’s seen it,” he says. “The opportunities we see in front of us are pretty clear-cut, in terms of how we can develop and grow our own business, but at the end of the day, macro has an influence.”

Does Neal see the outcome of the UK’s Brexit vote creating any operational or practical complications for QBE’s European Operations?

“I think the brokers are a lot more collaborative than certainly when I first started underwriting almost 30 years ago.

It was a battle to get in front of the end customer in those days” But he adds: “What we did do was take a step back and say, ‘What geographies do we want to be in? What products do we think we can sell? How do we distribute?’ And our base analysis that we undertook in 2012 was telling us that we were way under par in terms of who we were, and therefore what our penetration should be, by anywhere between 20% and 25% of who we could be.”

Neal says QBE is working to grow into its shoes in emerging markets.

“In Asia, for example, our focus has been around Hong Kong, Singapore, Malaysia and Indonesia … particularly around commercial and specialty products, and also with some bank assurance leverage.

“Our sense is that we can maintain a healthy degree of performance profitability in that

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“The answer to that is ‘not really’,” he says.

“I think the bigger challenge is the political uncertainty that’s been caused by Brexit, and that reverberates through the markets, where I think the investors are saying, ‘What does this genuinely mean for investment returns?’, for example; ‘What does it genuinely mean for interest rates?’ Obviously, that’s a significant driver and contributor to our profitability, and you’re seeing that in the share price of all of the global and European insurers whilst the investors are trying to reconcile as to what this means for the new norm.”

Climate change A global issue threatening to significantly impact on the macro environment longer term is climate change. In a LinkedIn post earlier

this year, Neal spoke about the reality of climate change and the role of insurance in responding.

An investment activist group, Market Forces, subsequently called on the insurer to stop ‘making climate change possible’ by providing insurance for major fossil fuel projects.

“I’m very happy that the climate activists have a voice,” Neal says. “I think their views are, by definition, absolute, and I respect and understand that, and they should continue to voice their opinions.”

Talking about the local industry’s response to climate change, Neal says, “I think the industry’s collaborating pretty effectively. I think the Insurance Council of Australia has a good voice, and I think it’s a respected voice by government and authorities … I know that they’re working pretty hard to try to get a common response from the industry as to how we should work as an industry with government and outside bodies to tackle climate and its related issues, going forwards.

“I think you’ve heard me talk before around the value I think we can bring in terms of managing risk, learning the lessons from where events have occurred in the past, whether that’s building codes or how we plan future urbanisation. But equally, I think [it is] just the simple reality that we’ve got a responsibility to society and communities to remain as an insurer to protect against what feels like an increasing frequency and cost of catastrophes.

“On a more specific level, we’re trying to think quite carefully about how we can support our customers … particularly in the specialist fields of oil and gas and energy, [as to] how they would transition from fossil-related fuel activity into different types of fuel and energy ... and, equally, we’re trying to be careful in terms of understanding our customers’ expectations around investment strategy.”

Customer-centricity QBE’s efforts to heighten its customer focus was a subject Neal canvassed at May’s AGM. How does he think an insurer maximises its customer focus?

“We’re a little bit different to the norm in that our focus is really around commercial and specialty insurance. We’re far more in that

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space than the classic home and auto retail insurer,” he says.

“The good news there is we see the proposition for the customer as being complete – it’s not just about underwriting. It’s about underwriting, claims management and risk management. So often, when we’re [sitting] with a client, we will always have those constituents present in the conversation, but tend to lead the conversation more around risk solution and risk management than we would around price.

“So it’s trying to understand the customer’s drivers, which are generally around the balance sheet … How can we structure the product and the service to help them? How can we premanage the risk to anticipate the claim that might occur to mitigate against it?

“We’re finding that is a value-add and successful in terms of developing that partnership off the bat with a customer.”

And how do brokers fit into the picture?

“I think the brokers are a lot more collaborative than certainly when I first started underwriting almost 30 years ago. It was a battle to get in front of the end customer in those days. I think that brokers these days see the value-add that we can bring to the equation and that there’s a true partnership.”

Underwriting excellence Commitment to underwriting excellence was another theme promoted at the AGM. Does Neal see utilising ‘big data’ as vital to ensuring underwriting excellence?

“The short answer is ‘yes’,” he says. “I think underwriting’s always been about data; the better informed the underwriter is about the characteristics of the risk, the loss history, the patterns that are emerging, the better you are able to price the risk. It’s always been the way, but I think our ability to access data today, whether it’s our own data or secondary data or proprietary data that sits elsewhere, is far more remarkable than it’s ever been.”

Neal cites three examples of data use within QBE, starting with the use of data for performance management.

“We’ve become far more sophisticated in the way in which we can remediate

underperforming parts of our business by really getting under the skin of the analytics and the data supporting what’s driving profit or loss,” he says.

He then mentions use of data to enhance understanding of customers.

“We road-tested that in the UK, and over a 12-month period we doubled our product penetration per customer, which is excellent from our point of view as it means that customers are attracted to us. And it’s almost not new business. It’s a business that you understand.”

Finally, Neal mentions claims management – being data-oriented in analysing categories of loss.

“We’re certainly putting a new algorithm into the business every four to five weeks, in terms of improving the claims cycle and therefore influencing the cost of managing claims,” he says.

The right team Devising and executing upon any grand plans requires an organisation to ensure the right people are leading those endeavours.

Unsurprisingly, a focus on attracting ‘worldclass talent’ is also key to QBE’s strategy.

But what are the ideal skill sets for insurer employees of today and for times ahead? Who are the types of individuals Neal is looking to bring into the fold?

“When we’re hiring, we would look at people who have been through tertiary education, people who hold some sort of professional qualification, and that’s before we would take them through our own academies … where we would bespoke train and develop the individuals with insurance skills.

“I think we’re looking at well-qualified people that are coming into our industry.

That probably wasn’t the case 10, 15, 20 years ago. I think individuals … are a lot more dataoriented and data literate, which I think’s important for our business.”

And he adds: “Part of what I was hinting at at the AGM is we’re prepared to be a little bit disruptive to ourselves around the gene pool and say, ‘Let’s look at individuals who might not classically find themselves in the insurance

QBE BY THE NUMBERS

130

The number of years since QBE’s life began as the Northern Queensland Insurance Company Ltd (QI)

1973

The year in which QBE Insurance Group was listed on the Australian Stock Exchange, following the merging of three companies (including QI)

14,500

The approximate number of QBE employees today around the world

37

The number of countries across which the QBE Insurance Group operates, supplemented by a partner network facilitating its operation in over 140 countries

$3.8bn

QBE is a Top 3 insurer in Australia and New Zealand and generated a total of $3.8bn of GWP in these markets in 2015 space, and let’s look at people who would’ve gone into fintech to see if they’re a bit smarter in the way in which they develop technology solutions; let’s look at people who would’ve gone into the media route – that could be social media…

“And then when you get to data, we’ve got anything from a data scientist at one end of the spectrum to a statistician at the other. They’re not classic insurance people, so we’re also trying to … ensure that you’re getting different perspectives and diversity of thought and ideas coming into the business.”

We look forward to seeing the future innovations John Neal and his team roll out to the global insurer.

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FEATURES

YOUNG GUNS

YOUNG GUNS 22

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50 young professionals making an impact in insurance WELCOME TO the Insurance Business 2016 Young Guns report. It’s now a firmly entrenched tradition that we ask our readers each year to tell us about the rising stars in their brokerages, underwriting agencies, insurance companies and legal practices. And this year you’ve delivered us a remarkably strong list of candidates. In fact, in 2016, we’ve received a record number of entries from around the country! It’s made the task

NAME Almond, Matthew

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COMPANY High Street Underwriting Agency

Attenborough, Ben

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Earth Insurance

Brady, Shane Brown, Daniel Caccaviello, Kristy Campbell, Brent Carson, Caitlin Challenor, Rebecca Chang, Prudence Connor, Brandt Cornford, Shane Coventry, Tim Crowley, Shane Dalby, Guy

30 38 26 36 37 32 27 26 33 38 38 34

Dearth, Peter

34

Doherty, Gavin Donnelly , Chris Egelton, Blake Elliott, John Flannery, Dominic Garrett, James Gerakios, Emmanuel Godfrey-Roberts, Sam

36 31 26 37 36 27 32 36

Sear Insurance Brokers DUAL Australia Geelong Insurance Brokers Oracle Group Insurance Brokers JLT J W Bell & Associates National Credit Insurance (Brokers) Zurich Financial Services SLE Worldwide Australia Brookvale Insurance Brokers Able Insurance Services NT BizCover Brokers FERME Business and Agricultural Insurance Specialists Marsh Donnelly Insurance Brokers Clyde & Co Elliott Insurance Brokers Wotton + Kearney Zurich Financial Services Qsure Insurance Brokers Remingtons Insurance Brokers

Guy, Chris

33

Higgerson, Shaun

25

of selecting the group of young industry professionals to profile especially difficult. But we’ve made the tough decisions and you’ll find 50 bright stars of insurance appearing on the pages that follow. Given this report features only a snapshot of the promising local talent in insurance, there’s certainly reason to be confident the industry in Australia will remain in capable hands for some time to come.

NAME Hooper, Simon Jonsson, Kimberley Kerley, Lucy Lampasona, Frank Manning, Steven Matheson, Dearne McDonald, David McDonald, Joshua McDowell, Chris Michell, Andrew Neylon, Christina Pattison, Grant Pirrello, Rocco Poon, Jacky Preston, Ross Quintin, Daniel Reid, Sam Richardson, Ben Ross, Jacob Shahinnia, Peter Smith, Damien

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COMPANY QBE Insurance CHU Underwriting Agency Holman Webb Lawyers Zurich Financial Services LMI Group Wotton + Kearney Arthur J. Gallagher Steadfast Brecknock Insurance Brokers Accident & Health International QBE Insurance Ausure Coast & Country IAG GSA Insurance Brokers Zurich Financial Services Marsh Arthur J. Gallagher Pacific Underwriting/SLE Worldwide Australia QBE Insurance Affinity Insurance Services SLE Worldwide Australia Assured Insurance Brokers

Stephenson, Katie

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Arthur J. Gallagher

Swift, Glen

27

Action Insurance Brokers

Avant-Garde Financial Services

Verhoef, Luke

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QBE Insurance

Berkshire Hathaway Specialty Insurance

Volpe, Kieran

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North Queensland Insurance Brokers

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FEATURES

YOUNG GUNS

SIMON HOOPER Aviation underwriter QBE INSURANCE Age: 26

PETER SHAHINNIA

Despite having only recently begun his insurance career in QBE’s 2012 graduate program, Simon Hooper is quickly making a name for himself in the space – both at home and across the globe.

Once recruited as a pilot by the Royal

Australian Air Force, Hooper underwrites general aviation and unmanned aircraft business in Australia, New Zealand, the South Pacific and Asia, and has worked closely with intermediaries and unmanned aircraft operators to develop marketleading unmanned aircraft coverage. Not only has he worked with the Civil Aviation Safety Authority to develop regulations enabling the industry to grow at a safe and steady rate, but he’s also forged relationships with several regulators around the world, helping to create industry best practice standards.

Last October, Hooper was elected to the board of the Australian Association of Unmanned Systems and has presented on unmanned aircraft and their insurance implications at many events in Australia and Singapore.

Contemplating times ahead, Hooper says: “My goal is to develop QBE to be the thought leader, industry leaders and first choice insurer for all unmanned products, including aviation products, driverless cars and unmanned marine vehicles.”

Casualty underwriter SLE WORLDWIDE AUSTRALIA Age: 26

In his role at SLE Worldwide Australia, Peter Shahinnia is responsible for developing and underwriting a portfolio of sports, leisure and entertainment casualty business. Insurance Business is told his impact on the business since joining has been “enormous”.

Among his many achievements, Shahinnia has improved the underwriting performance of his portfolios, and has been identified by superiors as a future leader of the industry. His contribution to the success of SLE Worldwide Australia has impressed his superiors so much that he was recently sent to Singapore to participate in a Lloyd’s Development Program.

Shahinnia would ultimately like to run his own team of underwriters, with a view to running a division and then a company.

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GRANT PATTISON Senior manager, marketing and sales technology IAG Age: 29

Grant Pattison is the industry’s first marketing technologist. Determined to make a difference, he’s driven to leave a legacy of shifting the way people think and conduct business in financial services.

Pattison is responsible for establishing and driving the technology vision for marketing and sales across IAG, and for delivering technology-enabled marketing and sales solutions that generate value outcomes for customers, partners and employees across IAG brands.

Pattison co-founded CGU’s online business insurance proposition, which involved creating a platform for the purpose of providing SMEs with a fast and efficient way to obtain insurance. That platform saw CGU crowned Australia’s Best Customer Experience Company for 2014.

Pattison regularly speaks at insurance conferences, having presented at NIBA, Insight and Adroit events, among others, and has also introduced Steadfast, AIMS, Westcourt and NIBA to the CGU Events app, aimed at enhancing conference attendees’ experiences. He hopes to become an insurance executive focused on the areas of marketing, digital or customer.

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25/07/2016 11:02:44 AM

SHAUN HIGGERSON Senior underwriter, accident & health BERKSHIRE HATHAWAY SPECIALTY INSURANCE Age: 31

Described by one colleague as an “extremely driven individual” and “without

CHRISTINA NEYLON Branch manager AUSURE COAST & COUNTRY Age: 31

a doubt, one of the industry’s brightest future leaders”, Shaun Higgerson is the senior underwriter for accident and health policies in BHSI’s newly established A&H team. He’s been responsible for developing market-leading policy wordings, and will be driving new opportunities for BHSI for A&H and all lines of insurance.

Higgerson joined Chubb’s A&H team as an underwriter, and was soon promoted to senior underwriter. After nearly four years at Chubb working with global and independent brokers in NSW and the ACT, he was approached to join BHSI and help build their first A&H team anywhere in the world!

Before entering the insurance world, Higgerson enjoyed a successful road cycling career, which included winning the 2005 Tour of Tasmania and a 13th place finish in the 2006 Tour Down Under, which saw him ranking ahead of 2011 Tour de France winner Cadel Evans!

Since embarking on an insurance career back in 2003 as an authorised representative for Suncorp, Christina Neylon has undertaken a variety of roles in the industry, including in underwriting and broking. Today, she oversees all operations of Ausure Coast & Country’s Toowoomba office, working to ensure growth and retention of the portfolio through “above and beyond” customer service and client engagement.

Neylon’s appearance on the Insurance Business Young Guns list is only one of a number of accolades she’s received in very recent times. She’s been announced as a Queensland finalist for NIBA’s Young Professional Broker of the Year award, and a Queensland finalist in the Australian Insurance Law Association’s Ron Shorter Memorial Award for professional­ ism in public speaking. Additionally, she’s a member of NIBA’s Young Professionals committee in Queensland.

Neylon wants to continue building Ausure’s business in Toowoomba and to one day own her own brokerage.

DANIEL QUINTIN Branch manager, Hobart ARTHUR J. GALLAGHER Age: 34

Daniel Quintin has spent more than half of his relatively short life in insurance.

Entering the industry at 16, Quintin tells Insurance Business he answered the call from London’s ‘Square Mile’. By his calculations, since that time he’s directly helped in securing more than £85m (A$148.97m) in GWP! Now a resident of the Apple Isle, Quintin became branch manager for AJG in Hobart late last year, and has leveraged contacts in London and Sydney to bring ideas and solutions to the business, which are said to have been well received. He has introduced initiatives aimed at getting staff out into the business community, talking to new prospects and pushing them outside of their comfort zones. He says it’s been a great way of starting new conversations with prospective clients, and indicates that there’s a lot more to come!

Recently, Quintin was voted chairman of NIBA’s Tasmania subcommittee, and is involved in the Beacon Foundation, helping to support and motivate young people in successfully transitioning to further education or meaningful employment.

Daniel Quintin on his career “I just want to help in any way I can, be it professionally or personally. 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. If one day my threemonth-old son, Francis Arthur Quintin, decides to follow in my footsteps, that would be the icing on the cake.”

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FEATURES

YOUNG GUNS BLAKE EGELTON Associate CLYDE & CO Age: 27

The senior staff at law firm Clyde & Co expect that Blake Egelton will become a prominent member of the insurance industry.

Once a physiotherapist, Egelton is today involved in complex, often high-quantum and high-profile insurance matters. Insurance Business is told he has racked up a number of standout achievements to date, including facilitating successful outcomes and strategic advantages for the firm’s clients across a range of matters through the application of his expert insurance knowledge.

KRISTY CACCAVIELLO Account executive GEELONG INSURANCE BROKERS Age: 22

Described as a “young, motivated p r o f e s s i o n a l ”, Kristy Caccaviello began answering telephones in a bro­ker­­age at the age of just 15. It was there that she began to develop a keen interest in the insurance world.

While completing her VCE, Caccaviello commenced part-time work as a claims consultant. She later moved to Geelong Insurance Brokers, where she’s now solely responsible for the business’s largest SME book and is one of its highest-contributing account executives. Insurance Business is told that Caccaviello is on the verge of breaking onto the senior management team, given her maturity and work ethics.

Currently enrolled in a bachelor’s degree in business/finance and intent on completing her master’s in risk management, Caccaviello is determined to become a master of her trade.

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Egelton is an active member of an internal committee encouraging associates and junior lawyers to become involved in business development, particularly within the insurance sector. He’s also a member of the Australian Insurance Law Association (AILA) Claims Discussion Group, Young Insurance Professionals and the Reinsurance Discussion Group.

Recently, Egelton joined AILA’s Young Professionals education subcommittee, which is responsible for providing a forum for the promotion, review, development and debate of insurance law through seminars, workshops and conferences.

This well-respected young lawyer is clearly one to watch.

BRANDT CONNOR

BEN RICHARDSON

Broker manager

QBE INSURANCE Age: 26

ZURICH FINANCIAL SERVICES Age: 25

After completing his tertiary studies four years ago, Brandt Connor joined Zurich as a packages underwriter. He spent 18 months in the role before, based on his achievements, he joined the national broker manager team in the more senior role of broker development associate.

In that role, Connor looked after key broker partners across three states and played an instrumental role in steering the team towards achieving key growth targets. As a result, the initiative expanded nationally and Connor became responsible for a team of business development associates.

Today, in addition to his current role as broker manager on Zurich’s commercial distribution team, Connor is studying for his law degree. He’s described as “committed and passionate about insurance, as well as working with brokers to ensure clients have the right cover in place to meet their needs”.

Professional liability underwriting

Ben Richardson joined QBE as a young grad­ uate in 2012 but left the graduate program early to join the professional lines team full-time as an underwriter.

Today, he is QBE’s national underwriting contact for all cyber risks, and works closely with the professional lines product team to develop the cyber product.

Over the past 12 months Richardson has been involved in a variety of product development projects.

Richardson is keen to further specialise in cyber security, from both an insurance and risk management perspective. Over time, he hopes to help shape a reputation for QBE in the market as a specialist in cyber security.

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25/07/2016 11:02:53 AM

CHRIS MCDOWELL Manager/senior underwriter ACCIDENT & HEALTH INTERNATIONAL Age: 32

Described as being “passionate about developing innovative ideas and carrying them through to implementation”, Chris McDowell arrived in the insurance industry after working as an apprentice chef in a Sydney restaurant and deciding hospitality wasn’t the career for him.

In his current role, he manages a considerable portion of AHI’s business across Australia and continues to achieve profitable growth for the portfolios under

PRUDENCE CHANG Sales manager Vic/Tas NATIONAL CREDIT INSURANCE (BROKERS) Age: 32

Prudence Chang is described by a senior colleague as a “consistent top achiever”, not only achieving impressive new business results each year but leading new staff and growing awareness of trade credit insurance. She heads up NCI’s Vic/Tas business development team of five people.

Chang is a regular award winner at NCI who, on several occasions, has topped the new business achieved during her 10 years with the organisation. Over the past year, she has achieved strong results in mentoring three new business development managers, and continued to grow her leadership skills. She is also a member of the Vic/Tas NIBA Young Professionals committee.

Chang is described as a leader in developing new business in trade credit insurance. Insurance Business understands new business development in trade credit insurance is dominated by males, so Chang’s efforts are leading the way for women in the trade credit insurance space.

his management. He oversees a team of eight staff in NSW, as well as managing the company’s operations in Western Australia, which consists of a further four team members.

In 2014, McDowell relocated to WA full-time for 20 months to build the insurer’s presence and exposure to clientele in the state, while continuing to manage his NSW team. He’s already successfully achieved personnel budget expectations for 2016.

McDowell has also provided coaching and development guidance to several colleagues within AHI, who have since been themselves appointed to senior roles.

JAMES GARRETT

GLEN SWIFT

Team leader packages

Branch manager, Penrith office

ZURICH FINANCIAL SERVICES Age: 26

James Garrett is the NSW team leader for SME in Zurich’s Underwriting Centre, leading around 10 underwriters. He focuses significantly on coaching and developing their skill sets, and has a broad awareness of portfolio performance and market trends that can be leveraged to continuously improve the way his team – and the wider underwriting group – works.

Recently, Zurich’s SME underwriting department embarked on a 14-week initiative to further improve processes and service delivery. Garrett played a leading part in rolling out a new model to support the initiative, and was later recognised

by Zurich’s COO as being the first in his business unit to master the 14 tools adopted from the initiative.

More recently, Garrett temporarily led the NSW and WA/SA/NT teams in Zurich’s Underwriting Centre. He is passionate about focusing on the development of his team and on the opportunities that lie ahead for further innovation in the insurance industry.

ACTION INSURANCE BROKERS Age: 29

Glen Swift is branch manager of Action Insurance Brokers Penrith, responsible for a book of business worth approximately $4m in GWP. He is also tasked with supervising two support staff.

Swift began his insurance career as a trainee at Action at the age of 18. Over the years, he’s supported a number of colleagues with training and has won more awards in the company’s internal annual awards program than any other team member. He is said to be a strong supporter of the industry, and of the company’s culture and ethos; and, according to one colleague, he will “definitely be an industry leader in the future”.

Looking ahead, Swift aspires to one day become the managing director of Action. He is also keen to partake in insurer and industry training and to utilise that training in advising his clients.

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FEATURES

YOUNG GUNS JACKY POON

ROCCO PIRRELLO

Business insights manager, general insurance pricing and analytics

Marketing and communications executive GSA INSURANCE BROKERS Age: 26

ZURICH FINANCIAL SERVICES Age: 29

Jacky Poon provides analytical insights into underwriting performance across all general insurance business for Zurich, leveraging cutting-edge data analytics and actuarial techniques to drive informed decision-making.

Poon has designed pricing algorithms that apply statistical models to improve understanding of risk. These pricing models then assist in delivering robust pricing and underwriting, and provide brokers with real-time quoting and policy transactions.

Insurance Business is told Poon has developed major technical improvements to advance the understanding of key drivers of underwriting performance as well as customer, operational and intermediary behaviour. Poon’s achievements have earned him internal recognition, including an Asia-Pacific regional award, and have seen him selected for Zurich’s Horizon Leadership Program for future leaders of the business.

Rocco Pirrello works hard, aiming to bring about progressive and positive industry change. He is responsible for all aspects of brand coordination and marketing strategies across GSA, which was last year named the Australian Insurance Industry Awards’ medium broker of the year.

Pirrello’s chief responsibility is to ensure that the GSA brand is always forwardthinking, surprising and market-leading, and Insurance Business understands that he has a knack for implementing groundbreaking solutions.

Among his key achievements, Pirrello has entirely managed the project of moving to a new and improved mobileresponsive website; driven GSA’s social media campaign; increased brand engage­ ­ment; and been appointed to the Aspiring Leaders program.

Insurance Business is told he is in the running to be GSA’s Employee of the Year for 2016, and in fact has already become GSA’s top-performing employee.

DEARNE MATHESON Senior associate WOTTON + KEARNEY Age: 30

Dearne Matheson has been employed by W+ K for over seven years, progressing from legal secretary through to senior associate.

She’s developed a strong practice focusing on professional indemnity and financial lines claims.

Matheson is heavily involved in running the firm’s NSW property professionals practice, encompassing a broad range of professional indemnity claims against valuers, real estate agents, surveyors, leasing agents and building managers. At

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ROSS PRESTON Branch manager, Project manager, private equity and M&A MARSH Age: 27

Ross Preston is a staunch advocate of the insurance industry and the opportunities it offers young people.

At Marsh, he provides due diligence and risk management reports for major public-private partnerships and private equity investments, mergers and acquisitions, and asset sales. Previously, he was a commercial insurance broker, managing insurance programs for some of Australia’s largest public and private companies.

For four years, Preston has chaired ANZIIF’s Generation I Council, focusing on issues affecting young people in the industry. He has also attended university open days advocating ANZIIF’s Careers in Insurance initiative. Preston is on ANZIIF’s Risk Management Faculty advisory board and is co-chair of the soon-to-be-established Marsh Young Professionals.

Preston says, “I am always looking for opportunities to boost the industry’s profile, encourage people to join our professional ranks, and have our industry associations develop strategies and support for our industry’s future leaders.”

any one time, she’s been responsible for taking a lead role on anywhere from 20 to 30 valuation matters. She also assists partners in presenting seminars to insurers, clients and property professionals, and takes a lead role in mentoring and supervising W+K’s junior lawyers.

Matheson is no stranger to awards, having been nominated last year at the NSW Women Lawyers Achievement Awards for Up and Coming Lawyer of the Year. She is an active member of the Australian Insurance Law Association, the Australian Professional Indemnity Group, the Law Society of NSW, Women in Insurance, and Young Insurance Professionals.

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25/07/2016 11:03:04 AM

STEVEN MANNING Director/Head of eServices LMI GROUP Age: 32

Steven Manning plays a substantial role in promoting insurance education both within and outside of the industry.

Manning manages LMI Group’s suite of online-based knowledge services, aimed at arming brokers with the information they require to meaningfully advise clients on managing risk.

He’s created a YouTube series entitled ‘Insurance Bites’, in which he explains often-complex topics in plain English as a tool to address the lack of understanding around insurance and risk management in the wider community.

Since becoming manager of LMI Group’s eServices, Manning has taken those services to the international market, and today LMI’s eServices are used by brokers and insurers in over 50 countries. In the UK alone, there are over 5,000 broker users.

On top of that, Manning also conducts training, particularly in business interruption and business continuity planning, for brokers and the wider community, both locally and abroad.

After completing the Australian Institute of Company Directors course, Manning was recently appointed a director of LMI Group, acknowledging his impressive achievements and as part of the organisation’s succession planning. His aim is to become managing director of LMI Group, succeeding his father, Professor Allan Manning, one of the industry’s most respected leaders. It’s patently clear that Manning is already making his own mark!

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FEATURES

YOUNG GUNS DAVID MCDONALD Client manager ARTHUR J. GALLAGHER Age: 32

David McDonald is a passionate broker who couldn’t imagine working in any other industry.

McDonald manages a complex portfolio of accounts generating income in excess of $700,000. In recent times he’s played a crucial role in the business’s achievements in the tertiary education sector as part of a bid team successfully winning several university accounts.

Last year, McDonald joined NIBA’s Young Professionals committee with a view to making a difference in the career success and professional development of his industry peers.

Outside of insurance, McDonald is passionate about raising money for cancer research, after losing his father to the disease. He’s involved in the organisation of AJG’s annual charity golf day – an event that has raised over $100,000 in the past three years.

SHANE BRADY

KIERAN VOLPE

Account manager

Branch manager, Ingham

SEAR INSURANCE BROKERS Age: 27

Shane Brady joined Sear Insurance Brokers as an assistant account executive, progressing to account executive and then to the role of account manager responsible for a small team working within his portfolio. That portfolio contains a range of commercial clients across a variety of industries in Australia and New Zealand.

Brady is a member of the Victorian NIBA Young Professionals committee and the Victorian NIBA Divisional Committee, and is also on ANZIIF’s Careers in Insurance action panel. He has also authored several articles, published on a number of media platforms, and has won NIBA’s Vic/Tas Young Broker of the Year award.

Brady is keen to continue promoting the Careers in Insurance initiative and to one day gain experience in the London market.

DAMIEN SMITH Director ASSURED INSURANCE BROKERS Age: 35

Damien Smith is director of Assured Insurance Brokers (AIB) and responsible for key account management and new business growth.

For five years Smith was an account executive at OAMPS. During that time, he was named one of OAMPS’ top 10 experienced brokers of the year, and also went on to win the award for experienced broker of the year.

In 2013, Smith started AIB with his business partner, Alex Porreca, and today the company employs five staff and continues to grow, having written $600,000 in business in the past three years, focusing on small corporates. It is the goal of Smith and AIB that the organisation will become the premier boutique insurance brokerage for corporate businesses looking for personalised service and innovative thinking.

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NORTH QUEENSLAND INSURANCE BROKERS Age: 28

In February 2013, Kieran Volpe was employed

by NQIB as a broker assistant with no previous insurance experience. He quickly built up his insurance knowledge and was promoted to account executive. Today, Volpe manages NQIB’s Ingham branch, overseeing four staff members. He’s gained his Tier 1 and Certificate IV (Insurance Broking) while also mentoring the junior staff.

Recently, Volpe was named a finalist for the Council of Queensland Insurance Brokers’ Peter McCarthy Memorial Award for young professionals. He was also a keynote speaker at the Women in Sugar Australia Conference, an event for prominent female business owners at which his presentation on insurance risks particular to their industry was well received.

Volpe is keen to continue mentoring younger staff and encouraging them in their studies. He’s been described as a “very worthy” Young Guns candidate who, in a very short time, has made significant steps in his career.

A Tale of Dedication Volpe was at a local pub when a vehicle smashed through the wall of the building right next to him. The pub was, in fact, an NQIB client. A passenger in the vehicle was thrown through the windscreen, and Volpe gave critical first aid to the injured person, arranged for other patrons to evacuate the building, and then assisted the publican with risk assessment, temporary protection and repairs, lodging the claim and arranging for an assessor to be appointed.

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25/07/2016 11:03:14 AM

BEN ATTENBOROUGH Managing director EARTH INSURANCE Age: 33

Ben Attenborough is passionate about the importance of insurance broking advice. He is the managing director of Earth Insurance, based in Melbourne, and is responsible for facilitating hard-toplace professional indemnity policies for construction professionals, managing a portfolio of $1.8m in GWP. Attenborough’s career goal is to diversify as much as he can and help

as many businesses as possible.

He says he also wants to find new ways of delivering insurance broking services and enhancing the customer experience.

In recent times, Attenborough has been an advocate for the industry at ANZIIF’s Careers in Insurance stand at Melbourne University’s career expo, encouraging students to consider pursuing a career in the industry.

SAM REID

CHRIS DONNELLY

KATIE STEPHENSON

General manager

ARTHUR J. GALLAGHER Age: 30

PACIFIC UNDERWRITING/SLE WORLDWIDE AUSTRALIA Age: 25

Katie Stephenson is responsible for establishing and maintaining a strong new business pipeline, and for coordinating new business opportunities. She is described as a “natural leader” who has gained the respect of both junior and senior staff at AJG for her dedication and motivation, and Insurance Business is told she has delivered excellent account wins over the past year.

On July 22, Stephenson was named the SA/NT winner of NIBA’s Young Professional of the Year award. She was also recently selected as one of ANZIIF’s top five up-and-coming brokers in Australia.

On top of that,, Stephenson also started up the NT branch of Young Insurance Professionals in 2014, and is today its Australia and New Zealand treasurer.

Insurance Business understands that Stephenson wants to move into business leadership, and her nominating colleague says they have no doubt she’ll achieve that aim within the next few years.

Sam Reid underwrites new and renewal business for the organisation’s property portfolio – one of the largest hospitality property portfolios in Australia.

On graduating from university, Reid joined the SLE Group, underwriting residential strata. One year later he progressed to underwriting hospitality and hazardous industrial property.

Reid has impressed by demonstrating a commitment to challenging the traditional approach not only to the use of data but to underwriting as a practice in the agency space. He’s done so through collaboration with brokers, focusing on service and communication to generate mutually beneficial business opportunities; and by taking a clientcentric view of customising specific and sustainable policy cover.

Reid hopes to obtain international experience in the next five years and to be employed in a managerial role within the next seven. He wants to be challenged on a daily basis and to take advantage of the opportunities that being an active member of the insurance industry can offer.

DONNELLY INSURANCE BROKERS Age: 35

Chris Donnelly is general manager of Donnelly Insurance Brokers, a business that his father, Mike, began 40 years ago.

And like his father, Donnelly is making a name for himself across the industry.

In 2012, Donnelly was the NIBA SA Young Professional Broker of the Year and, accordingly, a national finalist for the Warren Tickle award. Donnelly is a graduate of QBE’s eQuip program, and from 2012 to 2014 he was chairman of NIBA’s SA Young Professionals committee. On top of that, he is an AIMS state committee member, and in 2016 he became a facilitator of NIBA’s mentoring program.

Looking ahead, Donnelly aims to continue facilitating NIBA’s mentoring program in SA; to maintain active involvement in both the NIBA and AIMS state committees; and, of course, to continue his efforts to grow the Donnelly insurance business.

Business development executive

Property underwriter

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FEATURES

YOUNG GUNS

MATTHEW ALMOND National underwriting manager HIGH STREET UNDERWRITING AGENCY Age: 33

Matthew Almond was appointed to the position of national underwriting manager at High Street within the last year. He reports directly to the managing director and is responsible for High Street’s underwriting department.

Almond is described as “very hardworking” and someone who goes the extra mile to assist everyone he deals with, be it junior staff or large clients. He has been a member of NIBA’s Queensland Young Professionals committee, has undertaken a number of mentoring programs to assist junior members of the industry, and is now a heavily involved member of the independent Young Insurance Professionals (YIPs), sitting on its Queensland committee.

Almond wants to develop boutique and innovative insurance offerings for the Australian market. He also wants to continue to be part of industry groups such as YIPs that seek to give back to the insurance community.

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EMMANUEL GERAKIOS

LUCY KERLEY

Account broker

Senior associate

QSURE INSURANCE BROKERS Age: 24

HOLMAN WEBB LAWYERS Age: 29

After four years as an underwriter, in the last year Emmanuel Gerakios moved to the broking side of the business.

As an underwriter he had assisted in growing the residential strata title portfolio of his local insurer in the Northern Territory. Insurance Business is told he helped bring in $12m in business when the expectation was around the $4m mark.

Gerakios was invited to join QBE’s eQuip program for 2016 and has relocated to Brisbane where, in his role as a broker, he is responsible for a landlords insurance scheme. He is keen to join the Council of Queensland Insurance Brokers’ Young Professionals, and to continue building his formal qualifications. Gerakios hopes to work his way up the ranks to a senior managerial role and be a key contributor to the industry of the future.

REBECCA CHALLENOR Senior account manager JW BELL & ASSOCIATES Age: 27

With responsibility for JW Bell’s second-largest commercial portfolio, including a complex wholesale scheme, Rebecca Challenor manages two staff and is heavily involved in a variety of office activities, including staff training and compliance.

In 2014, Challenor completed QBE’s eQuip program and in 2015 was awarded the Council of Queensland Insurance

Lucy Kerley provides expert legal advice to insurers, local and global underwriters, their agents, brokers and insureds. She has spent the past six years focused solely on practising insurance law.

Kerley is determined to provide the industry and its professionals with comprehensive but user-friendly content on insurance law. She regularly offers client training sessions, ranging from informal roundtable discussions to formal seminars and innovative sessions, involving client participation and case studies.

Because of her commitment to the industry, her client service standards and her ability to understand clients’ businesses and their needs, Kerley was promoted to associate within three years of admission to practice, and now at the young age of 29 she has been promoted to senior associate.

Additionally, Kerley is a mentor to eight junior lawyers and paralegals and has played an integral part in developing Holman Webb’s Emerging Leaders program.

Brokers’ (CQIB’s) Peter McCarthy Memorial Award for Young Professional of the Year.

She’s also been a part of the CQIB Young Professionals committee for the past four years.

Challenor’s passion for insurance has seen her participate in career expos and attend schools on behalf of CQIB Young Professionals to promote the insurance industry. She enjoys mentoring other young professionals and intends to continue doing so while working to educate the wider community on the rewards of a career in insurance. She hopes to ultimately own shares in a brokerage and be an “active and engaged” director.

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25/07/2016 11:03:25 AM

SHANE CORNFORD Casualty claims officer, public liability & personal accident SLE WORLDWIDE AUSTRALIA Age: 31

Previously a lawyer, Shane Cornford is today making a name for himself,

CHRIS GUY Insurance broker/managing director AVANT-GARDE FINANCIAL SERVICES Age: 35

Chris Guy founded Avant-Garde Financial Services in 2007, and he’s since built the Avant-Garde Financial Group, which

managing and resolving high-profile large-loss public liability and personal accident claims at SLE Worldwide.

Most impressively, Cornford designed, implemented and evaluated the claims data software for the business’s bespoke CRM, underwriting and finance system.

He is also said to have rapidly built his expertise in the public liability and personal accident claims space while working at SLE. Cornford says his aim is to increase the standard of claims management through leading by example, constantly striving for the optimal outcome and consistency of professional approach. He thinks claims professionals need to do more to elevate claims assessment as a discipline, especially given its interaction with people at their most vulnerable and the profound impact of claims decisions not only on individuals but on society in general.

includes Avant-Garde Mortgage Brokers and Avant-Garde Insurance Brokers.

Guy has achieved just over $400,000 in GWP in the 12 months since AvantGarde Insurance Brokers was established.

He has managed 20 insurance claims (including one of considerable complexity) and is now negotiating an exclusive market/product with a Lloyd’s broker.

Guy is helping to train and mentor a young administration executive he has employed, to assist them in achieving their goal of becoming an insurance broker.

He is a strong believer in education, his own qualifications including a Bachelor of Business (Admin), a Master of Business (Financial Planning), and a Graduate Diploma of Arts (Political Science), in addition to his Tier 1 accreditation.

Guy is a member of Deakin Prime’s Financial Services Advisory Group, which is currently looking to improve the quality and importance of continuing professional development programs throughout the financial services industry.

JACOB ROSS Director AFFINITY INSURANCE SERVICES Age: 33

Jacob Ross is director of the Central Coast and Blue Mountains-based Affinity Insurance Services, managing the company and continuing to have daily broking interactions with customers and underwriters.

Ross began his career in insurance with DMA Insurance Brokers on NSW’s Central Coast while completing his HSC. Two years later, he assisted three colleagues in forming an insurance business and, four years on he was providing training to the initial eight broker offices of Ausure Insurance & Finance.

Over the past decade, Ross has facilitated the purchase and sale of insurance portfolios, and has trained staff to become brokers, brokers to become portfolio managers, and portfolio managers to become business owners in their own capacity. In 2008, he won the Norm Dyer Award for Young Insurance Broker of the Year.

Ultimately, Ross hopes to expand into rural and regional areas of NSW and to train, skill up and create job opportunities for young rural brokers.

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25/07/2016 11:03:32 AM

FEATURES

YOUNG GUNS ANDREW MICHELL Business relationship manager, QLD QBE INSURANCE Age: 32

Andrew Michell is a valued business relationship manager in QBE Insurance’s Brisbane office.

He commenced with QBE in 2004, when he joined as a mail services officer.

Since that time, he’s received several promotions (from assistant underwriter to underwriter, before later becoming a team leader and then a service manager) and has secured an impressive number of accolades along the way, as well as

FRANK LAMPASONA

PETER DEARTH Senior account manager

GUY DALBY

Commercial property underwriter

FERME BUSINESS AND AGRICULTURAL INSURANCE SPECIALISTS Age: 35

Broker relationship manager, wholesale division

ZURICH FINANCIAL SERVICES Age: 31

Having spent over a decade in the industry, Frank Lampasona has racked up an impressive range of achievements that have been accomplished in a variety of roles. A driven insurance professional, he describes himself as someone who is passionate about protecting the quality of people’s lives and who is always looking for a challenge.

This year, he was promoted to property underwriter (from the role of assistant underwriter, property and engineering), and in both roles he’s managed to achieve results well beyond targets for all his key objectives. He’s also driven (and continues to drive) his own development in mid-market property underwriting.

Ultimately, Lampasona hopes to achieve an executive role in an insurance company, in order to continue pursuing his passion of protecting the quality of insureds’ lives and the sustainability of their businesses, while also having the chance to make an impact on the industry’s direction.

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continuing to add to his educational qualifications.

As an underwriting team leader managing 14 underwriters, he increased their staff engagement score by 10%.

Michell is a graduate of QBE’s eQuip program and has also participated in its leadership academy, completed its internal advanced liability training program and been involved in the coaching and mentoring of a number of staff members.

He continues to focus on developing his career with the global insurer and hopes to progress to a senior sales role, or business manager or business department manager role in the future.

With more than 15 years’ experience in the insurance, industry, Peter Dearth manages Ferme’s port­folio of prestige and major agricultural clients located from the Sydney CBD to as far south as Hay in NSW’s Riverina region and as far north as Moree. He leads a team of four account managers, conducting training sessions and providing learning opportunities whenever possible.

Insurance Business is told Dearth has a 100% client retention rate and that client referrals are frequent. He is also highly technically proficient, which he maintains by taking advantage of regular training opportunities and through self-learning.

Dearth continues to strive to develop his expertise in insurance broking, including expanding his coaching abilities.

He’s determined to grow and strengthen his portfolio in times ahead.

BIZCOVER BROKERS Age: 32

Guy Dalby joined the insurance industry as a customer relations and sales representative at AAMI. Today he leads BizCover Brokers’ wholesale division, managing relationships with brokers, improving retention, and developing new relationships to build the business.

Dalby is said to have been a major influence in the implementation of new initiatives for BizCover Brokers, including its upcoming new release platform, as well as playing a role in strategy and distribution for an industry-first white label solution aimed to allow brokers to offer a tailor-made comparison website to their customers. His achievements in the business also extend to building the broker team capabilities, negotiating with insurers, and identifying opportunities to grow and expand the business.

Insurance Business understands Dalby challenges the status quo and champions opportunities to improve the overall end-to-end experience with brokers.

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25/07/2016 11:03:35 AM

KIMBERLEY JONSSON Queensland state manager CHU UNDERWRITING AGENCY Age: 31

Kimberley Jonsson has quickly become an integral part of CHU’s senior leadership team, assisting with a number of strategic projects currently underway.

During the time when Jonsson undertook senior roles in CHU’s SA business, the branch grew GWP by over 35% in three years to $16m.

In 2015, Jonsson was promoted to Qld branch manager, tasked with providing strategic and general management to the Qld business unit, which comprises a portfolio of over 12,000 policies with GWP in excess of $60m. She’s responsible for leading a team of 20 in Qld, and

Insurance Business is told she’s built a very strong team and recently achieved extremely high employee engagement scores.

This year, Jonsson was given the added responsibility of entering the NT market, a key initiative for CHU, and has exceeded her 2016 budget for the region. Additionally, she’s a member of the CHU steering committee, overseeing the digital transformation of the CHU business.

A past NIBA state Young Professionals committee vice president, Jonsson also tutors and mentors students who are completing their ANZIIF Tier 1 accreditation, and is a regular lecturer for the Strata Communities Australia New Starters Program.

Jonsson is committed to pursuing a management career within insurance and aspires to take on further challenges in the general management space.

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25/07/2016 11:03:44 AM

FEATURES

YOUNG GUNS BRENT CAMPBELL

GAVIN DOHERTY

Director

Senior account executive – corporate

ORACLE GROUP INSURANCE BROKERS Age: 33

Brent Campbell, a third generation insurance broker, is today a director and partner at Oracle Group Insurance Brokers. The group has over 60 staff nationally, including a growing AR network. Campbell has 25 staff, based in Oracle’s Balcatta head office, who directly report to him.

In 2010, Campbell joined Centro Chamber Insurance Brokers, which merged with Oracle last year. At Centro he had the opportunity to purchase his own portfolio of business, which has grown significantly through a combination of high retention rates, organic growth and scheme opportunities. Campbell also completed the QBE eQuip program in 2010 and is currently a participant in CGU’s Platinum Leadership Network.

In the immediate future, Campbell wants to continue developing his management and leadership role at Oracle, in an effort to help ensure the sustained success of the business. He would also like to have the opportunity to support the IBNA network.

SAM GODFREYROBERTS Managing director REMINGTONS INSURANCE BROKERS Age: 34

Sam Godfrey-Roberts is the managing director and owner of Remingtons Insurance Brokers in Victoria. His responsibilities include managing 11 staff and three authorised representatives.

Godfrey-Roberts began in insurance as an assistant underwriter at CGU, and was subsequently promoted to underwriter and then account manager. In 2008, he took on a business development manager

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MARSH Age: 34

In his current role on Marsh’s corporate team, Gavin Doherty assists and develops multinational and corporate clients across Western Australia.

In 2014, Doherty won a NIBA-CBU Professional Excellence Scholarship, which gave him the opportunity to participate in NIBA College’s Certified Professional Insurance Broker development program.

He is also a past committee member and a past president of NIBA’s WA Young Professionals committee.

Doherty is passionate about the career development and education of other young members of the Marsh team, and, looking ahead, would like to take the opportunity to assist other enthusiastic young people in the pursuit of their insurance broking careers.

Right now, he is focusing on developing his management skills in business as well as further technical skills in insurance and risk management. role at QBE and, over three years, grew the 10-year portfolio from $7m in GWP to over $16m with the same staff numbers. He took part in QBE’s eQuip program and was later promoted to a distribution manager role, managing a large team looking after over $70m in GWP. In 2012, Godfrey-Roberts bought the Remingtons business in Ballarat and, in the three and a half years since, he is said to have overseen and managed the doubling of GWP on a 30-year business.

Additionally, he has expanded the business, setting up AR offices in Bendigo, Torquay and Bacchus Marsh, and is looking to continue expanding Remingtons both internally and externally, within Victoria and interstate.

DOMINIC FLANNERY Special counsel WOTTON + KEARNEY Age: 34

Dominic Flannery practises primarily in W+ K’s public and products liability team, and his practice experience extends across Australia and the UK. Recently, he has developed an accident and health practice, advising on high-profile, careerending sporting injuries.

Flannery has worked and personally managed hundreds of claims, from simple District Court matters to multifaceted Supreme Court cases. He’s conducted some career-defining litigation, including one of the most complex medical negligence claims – both legally and medically – in NSW history.

Flannery is also strongly involved in W+ K’s pro bono and corporate social responsibility program, and has worked for many years at the Homeless Persons’ Legal Service at the Wayside Chapel.

Flannery currently mentors four associates and three paralegals, and has received excellent feedback from mentees. Looking ahead, he’s focused on working to become a partner of the firm; maintaining his pro bono practice; and continuing to mentor young lawyers and assist them in reaching their own career goals.

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25/07/2016 11:03:47 AM

JOSHUA MCDONALD Sales manager/account executive STEADFAST BRECKNOCK INSURANCE BROKERS Age: 27

In his 10 years in insurance, Joshua McDonald has come a long way.

Starting out as a mail boy at age 16, McDonald was a receptionist, a broker assistant, and then a senior assistant before becoming an account executive.

CAITLIN CARSON Divisional manager, financial lines group JLT Age: 29

Caitlin Carson is responsible for the operational management of the JLT financial lines team in Brisbane, including growth in revenue and business development. She manages a team of three staff and provides broking and claims management services to some of JLT Brisbane’s major clients from a diverse range of industries.

In 2008, Carson was nominated to take part in JLT’s pilot mentoring program and in 2009 was one of a limited number of staff members chosen to attend JLT’s inaugural leadership training program.

Then, in 2013, Carson was a finalist for NIBA’s Queensland Young Professional of the Year award.

Carson is passionate about the industry, and her eagerness to encourage other young people to enter the world of insurance saw her become a member of NIBA’s Queensland Young Professionals committee from 2013 to 2015.

Carson is keen to grow the financial lines portfolio in Queensland and gain experience in overseas markets.

JOHN ELLIOTT CEO ELLIOTT INSURANCE BROKERS Age: 34

John Elliott is an entrepreneur who is keen to challenge the status quo.

Today he is both a sales manager and account executive, tasked with working to develop the skills and enhance the product knowledge of his team.

McDonald has been president of the ANZIIF’s Generation I committee for South Australia (prior to the disbanding of state committees) and has also received a Special Service award to recognise his contributions to the industry. In 2016, he is an SA/NT state finalist for NIBA’s Young Professional of the Year award.

McDonald is determined to become an industry leader and mentor to other young insurance professionals.

Over the past three years he has managed to raise pledges of over $1m to benefit several charities throughout Africa.

He is the CEO of Elliott Insurance Brokers, his own brokerage, which has racked up several impressive achievements in recent years. Among those, in both 2014 and 2015 it was named one of Australia’s fastest-growing companies in BRW’s Fast 100. Elliot himself was a national finalist for the Young Entrepreneur of the Year award in 2014 and was voted one of the most influential business owners in Western Australia in the Nifnex Awards for two years running.

Elliott co-founded Zippy.com.au, an online insurance comparison service which, by its second year, was receiving over 100,000 insurance queries from consumers. Elliott’s team also provided the first Bitcoin insurance payment solution in the world.

Elliott tells Insurance Business his goal on the horizon is to reach $100m in premium placed. He also says his career goals are all centred on the same objective – the empowerment of others for their and his success.

“By empowering those around me, I am not alone as I move towards achieving my goals. I am constantly surrounded by others pushing me and pulling me along as they achieve their own.”

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25/07/2016 11:03:52 AM

FEATURES

YOUNG GUNS SHANE CROWLEY

LUKE VERHOEF

DANIEL BROWN

Director

Senior underwriter, professional lines

Underwriter, financial lines

ABLE INSURANCE SERVICES NT Age: 31

Shane Crowley is a director and insurance broker at Able Insurance Services NT, providing insurance solutions for domestic and business portfolios.

Last year, Crowley was a finalist for the TIO Broker Professional of the Year award, as well as being named one of Insurance Business magazine’s Top 30 Elite Brokers for 2015.

Crowley established Able Insurance Services NT in late 2012 with no experience of the general insurance market. But he is said to have created a loyal and trusting client base since the business was founded.

Recently, Able Insurance has hit its latest goal, achieving $1.5m in GWP over the past year.

Crowley and the business are now looking to hit the $2m mark over the next year, and he believes that with the strategies they’re adopting, including client education, they should be able to achieve this comfortably.

TIM COVENTRY Authorised representative BROOKVALE INSURANCE BROKERS Age: 31

Tim Coventry is an authorised representative who owns and operates his own book of business within Brookvale Insurance Brokers.

He started out as an underwriter at a Sydney underwriting agency in 2003.

Coventry joined Brookvale as a new business broker in 2008, and two years later he purchased his first book

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QBE INSURANCE Age: 33

Luke Verhoef has spent over a decade in insurance, and his achievements to date include having been an Asia-Pacific referral point for construction professional indemnity and cyber risk as well as a member of a global professional indemnity referral panel.

In his current role, in addition to having P&L responsibility for the Queensland professional lines portfolio, Verhoef is a member of QBE’s technology panel, with responsibility for the development of cyber and ICT products.

Verhoef has also had considerable involve­ment in the training of brokers and colleagues, including broker training on the nature of professional risk.

He is fast approaching the completion of his MBA (with a major in entrepreneurial management) and aims in the medium term to become a strategic leader for a major insurance organisation, with an emphasis on innovation.

of business. He has since purchased another two businesses, and grown and developed his current portfolio to GWP in excess of $5m.

Talking times to come, Coventry is aiming to grow and develop that book of business at a steady rate, “without comprising on quality via referral driven organic growth”.

It is also Coventry’s plan to adapt to the changing industry in order to retain a competitive advantage, including developing an online presence, but he intends to do so without compromising on his core goal of quality.

DUAL AUSTRALIA Age: 27

Once a financial planner, Daniel Brown is now underwriting at DUAL Australia.

He oversees a $3m portfolio across DUAL’s financial lines sector, as well as managing relationships with more than 50 brokerages throughout NSW and ACT. As one of the NSW team’s more senior underwriters, Brown is also involved in training and mentoring the company’s junior members and conducts ongoing broker training and presentations.

Brown ascended remarkably quickly from his role as an assistant underwriter with no prior insurance experience, to underwriter. His promotion to underwriter in DUAL’s SME sector occurred after only six months in his original role, and saw him handling all NSW-based schemes worth over $2.5m.

Less than a year later, in recognition of his initiative, skills and dedication to his role and to DUAL, he was promoted again to underwriter, financial lines.

So far this year, Brown has exceeded his new business budget by 100%, already writing over $1m in new business.

He is well on his way to achieving over $1.5m in new business this year while retaining his large renewals. Brown is aiming to work on more complex risks and to gain further experience in the financial institutions space. In the long term, he wants to become an integral part of DUAL’s management team.

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25/07/2016 11:03:57 AM

YIPs TURNS FIVE AS SOYSA RETIRES Firmly focused on the careers of young insurance professionals, the organisation has high hopes for times ahead

YIPs’ new president, Andrew Shepherd

YOUNG INSURANCE Professionals (YIPs) Australia and New Zealand is celebrating its fifth birthday.

Founded in Melbourne in 2011, YIPs today has over 6,000 members and operates eight branches both around Australia and across the Tasman in Auckland and Christchurch. It now runs more than 35 educational events each year, which have attracted over 2,800 guests in the past 12 months.

Sampath Soysa, principal of law firm Gilchrist Connell’s Melbourne practice, co-founded YIPs and has been its Australasian president since day one.

Recently, he has decided to step down from the role.

“I am retiring at a point when YIPs has never been at a higher point or in a

better position in its history so far,” he tells Insurance Business.

Replacing Soysa is Andrew Shepherd, a Melbourne-based account executive at Marsh, who began his insurance career in 2010 on OAMPS’ personal lines team, after spending five years working in the UK’s banking industry.

“I am confident that YIPs couldn’t be in better hands with Andrew Shepherd at the helm and an Australasian management team under him which would be the envy of many publicly listed companies,” says Soysa.

“I am proud to have helped assemble and worked with that team these past five years and be able to leave that legacy.”

Shepherd says he’s “incredibly excited” to lead YIPs into what he describes as “a new era to further support our members in their careers”. Among his aims are to attract school leavers and graduates into the industry, to work with ANZIIF and NIBA to further the interests of YIPs’ members, and to continue running educational events.

Shepherd emphasises the importance of YIPs’ existence at a time when the industry continues to grapple with the challenge of attracting and retaining talent.

“We need to work together to attract highcalibre individuals into the industry and to maintain their interest and motivation,” he adds.

“As an organisation run by young professionals for young professionals, YIPs is perfectly positioned to understand

our members and to provide them with excellent networking opportunities amongst other professionals from each sector of the industry, as well as providing relevant and interesting educational events to allow them to develop in their careers.”

Talking times ahead, Soysa says YIPs already has some exciting plans in the pipeline.

“There are … significant plans already underway to form a global network of similar-minded young insurance professional organisations, starting with the UK and Canada,” he shares.

“FY17 is very much [the] start of the next era in this remarkable and dynamic organisation. It is a great time to be a young insurance professional in this part of the world.”

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25/07/2016 11:04:03 AM

PEOPLE

INDUSTRY ICON

TOP TALENT, TOP PERFORMANCE Ironshore CEO Kevin H Kelley talks with Tim Garratt about his remarkable career in insurance and the difference that recruiting the right people can make WHEN KEVIN KELLEY was a college student and deciding on a career, he knew he wanted a job that was heavily influenced by current events. And, according to Kelley, his career in insurance has delivered.

“Every day that I pick up a Wall Street Journal or a Financial Times, there’s some mention of a client, trend or event that directly impacts Ironshore,” he says. “The other big thing with me was I really did enjoy business economics and analysing risk and actually assuming risk, and seeing what the outcome would lead to, and obviously doing it in a thoughtful way. That also kind of led me to this business or potentially the banking business. Quite frankly, I’m very happy that I entered this business.”

Kelley believes insurance has plenty to offer today’s young jobseekers, too.

“I think young people today are a lot more entrepreneurial than prior generations,” he says.

“There are probably a ton of reasons for that, but you see a Steve Jobs, you see the founder of Facebook and others who have made a fortune principally through founding a company and figuring out a technology that allowed them to build that company and create a lot of wealth.

If you truly are entrepreneurial – you truly want to build something – this is a great environment to do that in, and guys like me and many of my peers are great examples of that.”

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Creating a legacy Kelley spent 33 years at AIG subsidiary Lexington Insurance Company, including more than two decades as its CEO. He’s been credited with building Lexington into a leading excess and surplus lines insurer.

“I had a very unique opportunity within AIG in that I was given the opportunity to build a company at a very early age,” he says.

“I had joined the company, roughly, at 25.

and we became not only the market leader in the surplus lines industry, but we dominated the market and probably built the best company of its type ever. You don’t get that opportunity often, but I’m very thankful for the fact that I did. AIG provided the environment, the capital and was very supportive in allowing us to hire talented people who allowed us to do that.”

After leaving Lexington in 2008, Kelley

“If you truly are entrepreneurial – you truly want to build something – insurance is a great environment to do that in, and guys like me and many of my peers are great examples of that” By 36, I was the CEO.” Kelley credits his early success to the opportunities presented to him and other young executives at AIG. “AIG was known for many things – one in particular was they gave younger executives a phenomenal opportunity,” he says. “Like most opportunities, you can run with it and win, or you can fail. AIG provided me with a phenomenal platform to build Lexington,

took on his current role as CEO of Bermuda-based commercial property and casualty insurer Ironshore. At that time, the company was only two years old, and its gross written premium totalled US$385m. Since then, under Kelley’s leadership, Ironshore has grown rapidly and impressively and continues to expand its global operations.

Today, its GWP is around US$2.2bn.

Kelley attributes his success at Ironshore

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25/07/2016 11:04:36 AM

PROFILE Name: J Patrick Gallagher Jr Company: Arthur J Gallagher & Co PROFILE Title: Chairman, president Name: and CEOKevin H Kelley Company: Years in theIronshore industry: 44 Title: CEO Years in the Fast fact: Theindustry: Gallagher41 Foundation matches Fast fact: Kelley also serves contributions to employees’ as the chair of the Board chosen charitable of Overseers atBetween St John’s organisations.

University’ s School 2009 and 2013, theof Risk Management in NewUSYork company matched $6 million in contributions.

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25/07/2016 11:04:46 AM

PEOPLE

INDUSTRY ICON IRONSHORE BY THE NUMBERS

again to the talented people around him – who, he says, were ready and able to capitalise on a significant opportunity.

“I think what really gave us the big oomph was the fact that we were able to … hire a lot of people quickly,” he says.

“What we were able to seize on was the fact that, after the financial services collapse here in the United States, clients were very concerned about concentrations of counterparty exposure. They wanted to focus on diversifying that counterparty exposure.

That created an opportunity for a new company like us.

moment, Kelley says the company is exploring ways to expand it.

“Our focus is insurance, and it’s what we do well, as opposed to just a reflection of the market,” he says. “What we do in Australia can be very different from what we do in Singapore, from the standpoint of products we offer. We’re patient investors in a territory like Asia-Pac.” Kelley sees his focus over the next 12 months as ensuring that he and his team remain focused on their core business.

“My job, I believe, in 2016 is to keep our people focused on performance and to make

“When it’s all said and done, the decisions you make are probably the most important things that you do. In essence, you become a reflection of your decisions. That is probably as applicable to one’s career as it is to one’s life” “We then had people who could take advantage of that opportunity,” Kelley continues, “and then, ultimately, we were able to realise the benefit of that opportunity and build on the success that we achieved. That really is it – I think when you can attract good people quickly, you can grow quickly.”

The next chapter Among the regions in which Ironshore continues to grow is the Asia-Pacific. In November, the company became an indirect wholly owned subsidiary of Shanghai-based Fosun International. At the time, Kelley said the acquisition would enable Ironshore to continue building its international specialty platform and enhance its global brand.

Although Ironshore’s presence in the Asia-Pacific region is relatively small at the

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sure that we don’t lose sight of that,” he says.

“The business environment continues to be very challenging. It’s one that you can manoeuvre in, but it’s one where, if you do make a mistake, you pay for it dearly.”

Away from insurance, Kelley devotes considerable time to community causes that serve education.

“Education is truly a door-opener,” he says.

“If there’s one thing you can do for your career, it’s go to school. When you go to school, you think clearer, you have greater insight, and ultimately, you hope that leads to better judgment because, when it’s all said and done, the decisions you make are probably the most important things that you do. In essence, you become a reflection of your decisions. That is probably as applicable to one’s career as it is to one’s life.”

100+

The number of new products Ironshore has launched over the past 10 years

35

The number of offices Ironshore currently maintains around the world

Top 10 Ironshore’s rank by AM Best among surplus lines carriers in the US

7

The number of times Ironshore’s GWP has grown since the company began operations

US$1.84bn

The amount Fosun International paid to acquire Ironshore in 2015

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25/07/2016 11:04:49 AM

FEATURES

BROKER INSIGHT

ELKINGTON BISHOP MOLINEAUX (EBM) Perth-headquartered EBM has gone from strength to strength and recently celebrated 40 years in the broking business. What’s been paramount to its success?

IN CLAREMONT, Western Australia, in 1975, two local businessmen established Elkington Bishop Molineaux (EBM).

EBM is now Australia’s leading privately owned and operated insurance broker, with around 220 people servicing more than 150,000 clients from nine offices across the country. With major offices in Perth, Sydney, Melbourne and the Gold Coast, plus regional offices in WA and Victoria, its turnover is around $200m a year.

Last November, EBM employees headed to Noosa to mark a momentous four decades in business, and according to managing director (operations) Ward Dedman, it was a sizeable celebration.

“We work pretty hard, but we certainly enjoy ourselves when we get the chance,” he tells Insurance Business.

Dedman has been with EBM for 16 of those 40 years.

“The attraction for me was coming in and seeing that EBM could do something that … an insurance company couldn’t do, and that is relate directly to the clients and secure risk solutions across all of their business that you usually wouldn’t find with one single insurer. At law we act in the best interests of our clients, which is a distinct difference to insurers or their agents.”

While offering general broking, EBM’s services also extend to injury management, contract review, claims, premium funding and financial planning. And when it comes to its areas of insurance expertise, managing director

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(broking) Steve Sparkes, who’s spent 27 years on the EBM team, emphasises the broad nature of its specialities.

“That’s probably one of the secrets to our success – that our service and tailored solutions get across the specific requirements of the major corporations, SME businesses and private households as well,” Sparkes says. “That diversity allows us to … stay strong in a fluctuating market.”

As to how EBM distinguishes itself from its competitors, Dedman admits it might be clichéd to say, but he thinks it’s to do with personal service and advice.

“But it’s a bit more than that,” he adds. “Our brokers are dealing with clients directly, and they’re doing all things for that client. They call in the expertise as they might need it, whether it be injury management or legal … Our individual broking team looks after all things for that client, from initially reviewing their risks and placing the business, to dealing with endorsements, claims and everything in between. They’re not

siloed. We think that’s the best way to manage a client’s needs and all their requirements.

“We’re trying to look after the client, give them solutions, give them answers, advise them, educate them… It’s not about what works best for us. We’re squarely focused on the client.”

Dedman thinks some of EBM’s distinguishing features as a business have assisted in attracting new talent.

“A lot of people are seeing us as a little bit different to [the rest of] the market for the right reasons – we’re private, we make our own decisions, we’ve got our own position with underwriters and suppliers … So there’s a lot of interest from people in the market in joining EBM,” he says.

He also emphasises the extent to which EBM values its people.

“I think that’s the bit we can’t reiterate enough. We run a really flat structure. We attempt to keep bureaucracy as low as we possibly can so we know what our people do; we get actively involved with them. Steve’s very

STEVE SPARKES TALKS SOCIAL MEDIA “Whether you want to be part of it or not, it’s real and it’s out there … We’ve got a pretty strong piece behind the scenes with [social media]. We can go and do tweets, if we like, and get across Facebook and a lot of social media [channels] to connect with the community more broadly. I think we do that piece reasonably well. At least we’re embracing it … I don’t think you can sit outside that by thinking, ‘We’re not on it, so we won’t get brought into it’. You’re going to be brought into it because it’s there. You need to be part of it, and respond and participate accordingly, so that you can have your voice heard.”

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FAST FACTS

SERVICES OFFERED: General broking Claims Contract review Financial planning Injury management Premium funding

Offices: Sydney, Melbourne, Perth, Gold Coast, Bunbury, Kalgoorlie, Geraldton, Karratha, Sale Steve Sparkes

Ward Dedman

“It’s not about what works best for us. We’re squarely focused on the client” heavily involved with training of our brokers and guiding them through, because it’s very much a strength of his background.

“The shareholders work in the business. We’re active; we’re part of it. We know what our people are going through.”

Asked to cite business achievements of which they’re especially proud, Dedman mentions the success of RentCover (EMB’s landlords property policy) and the substantial presence the company has today in Eastern Australia (where half of its people are now situated).

But he also says: “I think the biggest tick in the box is getting claims paid, and particularly those ones that don’t necessarily sit squarely within a wording, the ones where it takes some consideration, some thought process and some working through. I don’t think there’s any better satisfaction than seeing a client get what we think they’re entitled to.”

Sparkes refers to a situation the business has frequently faced.

“Someone’s recommended one of their mates, who might be having some troubles with a claim or an insurance risk solution, and they get EBM involved and appointed, and we actually take the time to understand all the facts relative to the business and then work to ensure [the client] gets the right result.”

After 40 successful years, what do Sparkes and Dedman expect to be critical to EBM’s ongoing success?

“I guess it’s the challenge of every business to attract and retain clients – what differentiates you from your competitors and [what makes you] that business of choice. We’ve gone to great lengths to try to do that,” Sparkes says.

“We want to maintain our focus on clients and respond to their current and future needs and … certainly be proactive and reactive to them

Headquarters: Perth EBM was a founding member of the Asia Australasia Alliance, a network of insurance broking firms employing 700 staff across Southeast Asia, China and the Pacific Islands. Additionally, EBM is the Australian partner of the Global Broker Network and a coverholder at Lloyd’s of London. and keep up that personal approach to doing business,” Dedman says.

“Yes, there’s an aspect of technology. We all get that, and we all read about it every day. But our experience, certainly with business clients, is that they definitely want personal advice and service, and you’ve got to be prepared to commit to that.”

Dedman mentions the increasing pace of change: “Being across what’s happening, being aware of the market, what the options are … it’s a challenge. It’s not a problem for us, but being a little bit outside some of those clusters … we have to work, I would suggest, a little bit harder at it.

“We’ve got 40 years of fantastic heritage … It’s a great base and position to work from.”

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25/07/2016 11:05:14 AM

FEATURES

PREMIUM FUNDING

FUNDERSTRUCK! The dollar value of funded premiums has dropped, but the number of loans written is rising. Are brokers and their clients increasingly seeing the value of premium funding in the insurance-buying process?

PREMIUM FUNDERS are continuing to feel the impact of the challenging market.

“There’s probably the same amount of funders in our industry as there was two years ago, but the pie that we’re all dealing with has shrunk considerably,” says Daniel Gronert, managing director of Principal Finance. “All premium funders are facing some pricing adjustments to meet their clients’ expectations.

“As funders, we’re all trying to protect our margin as much as possible to ensure

that we continue to offer the level of service that we’d like, but also keep the product competitive enough to try to get some growth and to protect the business that we’ve already got.”

But a positive, according to Gronert, is a significant increase in the number of premium funding loans actually being written and financed.

“We’ve actually jumped by about 35% on where we were two years ago,” he says. “So we’re working a lot harder to get our results,

PRINCIPAL FINANCE Principal Finance is an independently owned finance provider that has been making premium funding easy for more than 30 years.

Our commitment to innovation and service is part of the Principal Finance vision. By incorporating the latest tech­ nology and innovation, we have earned a reputation as an industry leader with a personal approach that sets us apart from our competitors.

We believe that a premium funder should be a business partner you can trust and rely on to deliver real benefits to you and your clients.

Principal’s local representatives take the

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time to understand your business, and how we can make doing business easier for you and your clients, while our national broker support team are empowered to make decisions and are highly regarded for their proactive service approach.

We continually invest in our funding software, utilising leading technology systems and data security protocols to deliver new innovations while ensuring maximum protection for your business and clients’ data security.

If you need a funder that makes doing business easier, talk to us.

Principal Finance – we make funding easy.

which obviously has a huge impact on our staffing and the pressure on our resources, but interestingly, that’s also an industry-wide stat as well … As an industry, we are writing more premium funding loans than we were 12 months ago.”

Gronert thinks that increase has something to do with broker-funder relationships.

“We’ll all having to work harder to get that business, so we’re working with brokers probably a little bit closer,” he says. “Maybe brokers are paying a bit more attention to every available source of revenue that they have in front of them.

“In the past, maybe they wouldn’t have looked so hard at premium funding as an option to earn an extra couple of per cent of income on a particular account. But with falling premiums, the return they may get on a particular account has fallen, so therefore an extra 2% or 3% in commission from a premium funding contract, for which they have to do very little work … can make a significant difference, particularly over the course of a year.”

Gronert highlights just how much of a difference that extra income can make.

“Some of our brokers would be earning probably enough to pay for another staff member, purely through commissions that they would earn on their premium funding contracts through the year,” he says.

So, how is Gronert’s Principal Finance team working to distinguish themselves from competitors and continue increasing the number of loans they write?

“Our whole goal as a company is about making premium funding easy, and that’s drilled into all of our staff and the way we do business on a daily basis,” Gronert explains.

“If they keep that at the forefront, it means that hopefully we’ll get to the quickest, easiest and best solution for all. But in tandem with that, it’s [about] relying on technology even

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brought to you by

more so than perhaps we have in the past … to try to improve and innovate in the way that things are done to make it even easier.”

Gronert says Principal Finance has already built a strong reputation for innovation.

“A lot of the features that brokers would take for granted as being standard features of premium funding these days – things like auto-rollover, online acceptance of funding contracts – were basically borne out of the four walls of Principal Finance. So we have a lot of pride in our history as innovators.”

Gronert also attributes Principal Finance’s success in tough times to the time taken to understand the brokers with whom the business works.

“We meet with our brokers. We understand

“Some of our brokers would be earning probably enough to pay for another staff member, purely through commissions that they would earn on their premium funding contracts through the year” Daniel Gronert, Principal Finance their business. We spend time trying to understand how we can actually add value,” he says.

“Certainly, I’m a big believer that premium funding, whilst it is a relatively simple

product, doesn’t need to be a one-size-fits-all approach. There can be significant differences in the way that that product is delivered, and the way that the service element of the product is delivered, that can make a

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25/07/2016 11:05:37 AM

FEATURES

PREMIUM FUNDING Brought to you by

FAST FACT When the National Credit Code, part of the National Consumer Credit Protection Act (2009), was enacted, premium funders identified ramifications of the Code for funders with respect to domestic premiums.

“It would’ve presented quite a lot of challenges for brokers and funders to continue trading in that space,” Daniel Gronert explains.

“All of the premium funders basically approached ASIC to try to get an exemp­ tion for premium funding for domestic premiums.”

Those efforts, including a separate application by Principal Finance itself, were rejected. Principal Finance then took the decision to the Administrative Appeals Tribunal and succeeded on appeal.

“We were the first premium funder to gain an exemption from the National Credit Code for domestic premium funding, which was fantastic for us as a company, but it was also fantastic for the industry.

“We see it as a significant moment for the industry in general. We’re very proud to have been part of that.”

significant difference to a broker’s business and also to their clients.”

Gronert cites one particularly sizeable success Principal Finance has achieved recently.

“We picked up a large scheme account with several thousand clients. It’d been with another premium funder for a number of years. We won that account based on some of our technology innovations … as well as a different service ethos.

“But talking about what you can do differently and showing them how you can make it all work is very different to actually making it all happen, and it was great to see that, after a period … of managing expectations, getting both our system and the client’s system working together

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efficiently, getting them to understand the way that we do business, we’ve actually seen some really positive results come out of that for both parties.”

Gronert discusses those significant results.

“We’ve just had the first quarter’s results come through … from the client … Where they’ve seen a massive impact is in the back end… They’ve [seen] more than a 50% reduction in the number of their clients’ accounts that are going through to a cancellation stage.

“From their point of view, that changes their business completely. They’re not having anywhere near as much administration in dealing with cancelled clients or having to renew policies when clients have dropped off the radar because a premium funder, who they may have been dealing with, has just dealt with the matter [adopting] their standard approach and cancelled off the account.

“When you see the numbers and you can sit there and confidently say, ‘I’ve got some hard evidence that we do do things differently [and] we are operating in the way that we say we will’, it’s a great case study for us to build on and tell others about.”

On the topic of broker understanding of premium funding, Gronert raises one misconception he says he’s heard for years. “[A] number of brokers … make a decision on behalf of their client that, perhaps, the client … won’t be interested in premium funding because their business is going so well.

“In my experience, and certainly this is something I see time and time again, you can never underestimate the challenges or the situations that your client’s business is in. It may be that they’re having a great year, it may be that business is going really well for them and has been for 10 years, but you also don’t know what exactly is going on in their mind. They may be planning for that next

stage of growth for their business, and that … may require a significant input of their own capital, their cash flow pressures may increase, and at that point of renewing their insurance policy, easy access to a finance facility like premium funding, that requires no questions asked basically … can be a very attractive proposition for a business, regardless of what sort of situation they are in.”

Gronert also talks about brokers not offering funding as an option for smaller premiums.

“We don’t have a minimum level of premium funding. We can fund $500 premiums … And the reality is that with the technology that brokers have available at their fingertips these days … there’s very little work required in actually getting a quote in front of a client … They could be potentially earning a little bit more money through commissions [and] they could be making a difference to their clients’ business by freeing up that cash flow for them.”

Gronert says Principal Finance even has a funding product to help brokers, particularly on the domestic insurance side, compete with direct market operators.

“It’s a low-cost, no-admin fee-funding facility, which is designed specifically for domestic premiums,” he says.

Looking ahead, Gronert sees no significant change to the market climate over the next year.

“We certainly aren’t budgeting for any natural increases in premium growth for the next year… The only growth that we will get will be through getting out there, knocking on doors and building other broker relationships and trying to win business that way.

“There are still opportunities out there for growth, I think, for brokers as well as funders.

But it’s about re-evaluating what will actually achieve that growth.”

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25/07/2016 11:05:53 AM

FEATURES

DRONES

CLEARED FOR TAKE-OFF Regulations coming soon will change certification requirements for commercially operated remote piloted aircraft systems, or ‘drones’. Geoff Pratt, Australian underwriting manager for aerospace at AIG, explains the changes IB: How significantly would you say the use of drones/remote piloted aircraft systems (RPAS) for commercial purposes has been embraced in Australia?

Geoff Pratt: When you look at the exponential growth of the RPAS market over the last two years, combined with the fact that over 600 certified RPAS operators handle an average of between one and five RPAS each, you have to say that the industry is flourishing. In addition, technology is constantly evolving and becoming cheaper and more readily available for civilian

application, making the RPAS sector earmarked as an aviation area of growth.

Up until now, photography and filming have been the most significant RPAS application, and I foresee that this will remain so for some time.

That being said, the RPAS fraternity is extremely innovative and has embraced other areas for RPAS use, including agricultural monitoring, disaster management, law enforcement, weather monitoring, television news coverage, oil and gas exploration, pipeline/road surveys, construction and specialist coastal/shark watch.

GEOFF PRATT TALKS CLAIMS INVOLVING RPAS RPAS exposures, although similar to manned aircraft in some ways, can definitely produce some interesting claims.

A particularly interesting example involved an attack on an RPAS by a large wedge-tailed eagle.

The eagle, most likely angered by the sight of what it deemed to be a threat, is reported to have used a diving attack on the RPAS (as it would on another bird if threatened). The RPAS was knocked out of stable flight, was unable to recover, and hit the ground causing extensive damage.

Another unusual claims example involved an RPAS that, following a controlled, fail-safe return to ground, was urinated on by a passing dog, causing

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a total loss due to extensive damage to circuitry.

Despite occasional ‘weird and wonderful’ RPAS claims, the most common seen by AIG are for loss of control or mechanical failure, much like we see in the general aviation space.

With the majority of commercially utilised RPAS in Australia having hull sums insured of between $5,000 and $15,000, it is the specialist camera and survey equipment attached to the RPAS that poses the greatest exposure to underwriters.

General liability and property policy conditions, as a rule, exclude aviation-related equipment and liabilities resulting therefrom, so the specialist equipment is left to the aviation insurance market.

IB: What are the changes the Civil Aviation Safety Authority (CASA) will be making to its rules in relation to RPAS in September, and what will the effect of those changes be?

GP: CASA will enact new RPAS operating rules and regulations with effect from 29 September 2016. These new regulations remove the need for commercial RPAS pilots to hold an Operator’s Certificate in order to operate an RPAS for commercial gain; however, the new regulations will only apply to small RPAS weighing less than 2kg. While a 2kg weight limit is restrictive, it gives businesses leeway to fly drones with HD video capability, such as the Parrot Bebop (420g) and the China-made DJI Phantom 3 (1280g).

The regulation change is the most significant since RPAS implementation in 2002.

Following the rule changes, operators will still need to provide one notification to CASA as least five days before their first commercial flight and abide by a set of standard operating conditions as follows: 1 You must only fly during the day and keep your RPAS within visual line of sight.

2 You must not fly your RPAS higher than 120m (400ft) AGL [above ground level].

3 You must keep your RPAS at least 30m away from other people.

4 You must keep your RPAS at least 5.5km away from controlled aerodromes.

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7 You must only fly one RPAS at a time.

Autonomous flight is prohibited. CASA is still to release its forms, guidance and notification system.

IB: What do you expect will be the practical implication(s) of the changes to the rules?

GP: With less red tape and a dramatic reduction in set-up costs, it would be correct to assume the number of commercially utilised RPAS flying around our cities and suburbs is going to significantly increase. With this expected spike in the number of RPAS, together with their increased functionality, there will be risks involved. However, as with any emerging market, this is a great opportunity for the insurance industry to learn more about drones and how we can support the insurance requirements of users.

IB: What opportunities and challenges do the changes create for the insurance industry?

GP: Like AIG, other aviation insurers will

“With less red tape and a dramatic reduction in set-up costs, it would be correct to assume the number of commercially utilised RPAS flying around our cities and suburbs is going to significantly increase�

Geoff Pratt, AIG 5 You must not fly your RPAS over any populous areas. These can include beaches, parks and sporting ovals.

6 You must not fly your RPAS over or near an area affecting public safety or where

emergency operations are underway (without prior approval). This could include situations such as a car crash, police operations, a fire and associated firefighting efforts, and search and rescue operations.

face a difficult task in underwriting a deregulated RPAS industry. Much of our underwriting selection through our facility has, up until now, been underpinned by the rules and regulations set down by CASA. On the other hand, the expected increase in RPAS ownership will present a great opportunity for a larger take-up in aviation insurance policies.

IB: What advice would you offer to brokers who may have clients planning to take advantage of the changes to the rules?

GP: If the broker is not a specialist aviation broker, they need to carefully ensure RPAS owners are meeting all of the operating conditions laid out by CASA, and look at the finer details provided by the client, such [as] what are they using the RPAS for, where will they be using it, who will be operating it, who will it affect, etc. Ascertaining the right insurance policy for a client should be managed as a partnership with the insurer, preferably a specialist aviation insurer in this case.

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FEATURES

COMMERCIAL MOTOR INSURANCE

GEARING UP FOR THE FUTURE Is telematics likely to impact on the commercial motor insurance space in the near future? And what more can brokers do to assist commercial motor clients?

ACCORDING TO a January 2016 report by IBISWorld examining commercial motor vehicle insurance in Australia, strong demand for road transport has fuelled the need for commercial motor insurance over the past five years, and that trend is set to continue, owing to business operators increasing their reliance on commercial vehicles for the transportation of people and products.

So, what movements and developments are currently impacting on the commercial motor insurance space? What should brokers seeking commercial motor coverage for clients be aware of in their efforts to source an appropriate insurance product?

Simon Keeble.

“Online platforms are becoming more and more advanced and user-friendly, so it was inevitable that the smaller end of the commercial motor market would head this way. However, brokers will continue to play a critical role in the commercial motor segment.

He adds: “An insurer’s ability to effectively and efficiently manage motor claims should be a priority for brokers when deciding where to place their commercial motor business, even for the smaller end of the market.

“For the larger fleets, brokers are also integral in structuring a program that caters to the specific needs and nuances of their customers and is

“The exposures and covers available to clients are as broad as the different types of vehicles and the industries they operate in” Sean Rafferty, Fleetsure The IBISWorld report cites an increase in options available for the purchase of certain commercial motor insurance products via online distribution channels.

“We are seeing a more commoditised approach to the smaller end of the commercial motor market,” says Suncorp Group executive manager

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conducive to upfront cost savings, ultimate cost savings and containment through tailored claims process, reporting and risk management.”

Sean Rafferty, director at Fleetsure, similarly speaks to the essential ongoing role of brokers in the commercial motor insurance purchase process.

“The exposures and covers available to clients are as broad as the different types of vehicles and the industries they operate in,” he tells Insurance Business. “The role of the broker is essential in focusing the client’s decision process not just on price but on the quality and breadth of the cover.”

Rafferty highlights where issues can arise when comprehensive broker advice hasn’t informed the purchase process.

“Similarly to property insurance, the basis of settlement conditions and exclusions in motor vehicle policies vary greatly between wordings, and brokers need to be aware of these differences,” Rafferty says.

He points to wordings of several policies that have restrictions on age of vehicles for replacement benefits, and finance gap payout restrictions on older vehicles and from fire and theft losses.

“There are unusual exclusions that are encountered in numerous wordings that are often not spotted by brokers, such as damage by incorrect fuel usage, damage caused crossing high water causeways, young or inexperienced drivers, and theft of inadequately serviced vehicles,” he adds.

“Often the electronic online systems will, by default, place these restrictions on wordings by way of endorsements, often without due consideration to the underwriting…”

Obviously, it’s a lesson for brokers that they need to remain eagle-eyed in reviewing commercial motor policies.

There is some talk that it may become increasingly common for commercial motor insurers to package their insurance products together with a range of services that extend to management of car repairs and roadside assistance.

“Some of these additional services not only attract new customers and act as a differentiator, they can also effectively contain insurers’ expenses, which results in lower premiums over

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the longer term,” says Keeble.

Ride-sharing and the rise of services such as Uber is a topic of conversation that’s frequently found its way into headlines over the past year, and regulators have begun to respond. But are such services restricted to the personal vehicle space?

“We have started to see ride-sharing and vehicle-sharing entering into the commercial motor market in recent years,” Keeble says. “This could have the potential to change the way organisations look at their fleet expenditure.

“Insurers and governments alike need to continually review the landscape and ensure we adapt to changing markets.”

Technology It goes without saying that particular technologies either available now or on the horizon may fundamentally impact on the commercial motor space in times ahead.

“Technology is playing more and more of a

“Ride-sharing and vehicle-sharing … could have the potential to change the way organisations look at their fleet expenditure” Simon Keeble, Suncorp Group part in the motor fleet industry,” Keeble tells Insurance Business. But he also says it’s not currently impacting on a scale basis.

“Use of technologies has been slowly embraced by fleet operators in Australia,” Rafferty says.

“While dash cams have been available for many years, it’s only in recent times that they’ve become affordable to the extent of being placed essentially in any commercial motor vehicle.”

One technology that’s generated considerable discussion in the space for some time now is telematics, and chatter around driverless commercial vehicles is also on the rise.

Driverless trucks are already being used in Australian mining operations, and it certainly seems to be a question of when, not if, the use of these vehicles will become more widespread across the road transport industry.

On the telematics front, Caltex Australia unveiled ‘Caltex Telematics’ in May, which gives businesses real-time information on driver and vehicle performance and even has the ability to predict future mechanical faults.

In a company statement, Bruce Rosengarten, Caltex executive general manager commercial, said its technology could help fleet managers

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FEATURES

COMMERCIAL MOTOR INSURANCE WHAT DO ROAD TRANSPORT OPERATORS KNOW AND THINK ABOUT AUTONOMOUS VEHICLE TECHNOLOGY? 60% 50% 40% 30% 20% 10% 0%

23% 13%

57% 46%

11% 24%

9% 18%

They’re total science fiction

Not anytime soon

Seems to have potential

Definitely going to happen

Operators who consider themselves not well informed

Operators who consider themselves reasonably well informed

Source: “The Times They Are A-Changin’… How Technology Is Disrupting The Road Freight Transport Industry”,

by Steve Nuttall, ACA Research

maximise financial and operational benefits by giving them valuable insights into the movement and handling of their fleets.

But Rafferty considers the widespread use of advanced telematics and driverless vehicles to still be “a long way off”.

“Where these systems have been embraced, it has generally been by larger corporate offices that have enjoyed flow-on safety effects from their core management of their business and fleet utilisation,” he says. “Certainly, as technology becomes more affordable, it will be further embraced and become a key factor of risk management and insurance programs.”

Keeble also speaks to the utilisation of telematics in the commercial motor space and the benefits it delivers.

“When technology such as telematics has been used, it has effectively become the ‘new’ risk manager, as it is proven to mitigate claims and contain costs, which in turn reduces premium.

“It will be important for insurers and brokers to watch the telematics space with interest, as we believe this is the precursor for driverless vehicles. The success and adoption of telematics will likely dictate the success and adoption of driverless vehicles in the commercial motor space.”

Since the release earlier in the year of the 2016 Vero SME Index, the notion of brokers needing to become ‘all-round risk advisers’ to remain successful has been a frequent topic of conversation.

So, in going beyond their role to find source-appropriate insurance coverage for their clients, how else can brokers assist their commercial motor clients in minimising their exposures?

“We see brokers taking a more proactive role in assisting the larger fleet customers with formulating their risk management programs,” says Keeble.

“If customers are not committed to risk management programs that can reduce the frequency and severity of their losses, then it could have an impact on their premiums.”

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25/07/2016 11:07:20 AM

PEOPLE

CAREER PATH

GROWING EXPERTISE

Berkley Insurance Australia CEO Tony Wheatley has learned a lot about insurance over three decades – and that learning is ongoing Always interested in finance and economics, Wheatley began his career working in AMP’s workers’ compensation claims department, where he was essentially the mail boy, who made it his goal to clear all unallocated mail for claims officers – hundreds of pieces, some years old. Quickly, he achieved that goal.

1984 BEGINS CAREER

“It doesn’t matter where you sit in an organisation; everyone has a role to play and the ability to make a real difference” 1984–1989

2002 BROADENS HORIZONS AT EMPLOYERS RE After many years specialising in professional lines insurance, Wheatley entered the reinsurance business. His role as casualty treaty manager afforded him an opportunity to see how most companies in the market managed their businesses, and to travel the Asia-Pac region extensively.

2009 ARRIVES AT AXIS Dexta Corporation was sold to AXIS Specialty. Wheatley describes the sale process as “another excellent learning experience”, in which he worked hard to manage the expectations of all key stakeholders. AXIS asked Wheatley to stay on and manage the business following the acquisition.

UNDERSTANDS INSURANCE Wheatley’s initial years in the business were spent in workers’ compensation and general claims roles – roles he credits with teaching him the true value of insurance and its societal impact.

“I remember delivering claims cheques to people on the way home and how grateful they were that the insurers were supporting them while injured.

Many were living pay-to-pay and a delay in their fortnightly insurance payment was a major issue for them.”

2005 BECOMES MANAGING DIRECTOR OF DEXTA “It was an exciting time to be part of a team looking to expand through acquisition, and we built up quite a diverse group of agencies under the Stardex Group banner.”

2012 2016 & BEYOND Over 30 years into his career, and after four successful years with Berkley, Wheatley remains passionate about the business.

“Insurance … has provided me with a level of knowledge about a broad range of things you would never see in many other businesses. Even after [more than] 30 years, hardly a day goes by when I am not learning something new or coming across a new problem that requires a solution. It is a great business full of great people, many of whom work for Berkley Insurance Australia.”

BERKLEY BECKONS Wheatley was appointed CEO of Berkley Insurance Australia.

“It represented an opportunity to take a bit more control of the direction of the branch locally. The branch had grown quite significantly in the four to five years prior to my joining ... It had a great reputation and was known for its customer service. I saw that as something we could build on, and there was an opportunity to expand product and geography.”

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25/07/2016 11:07:47 AM

PEOPLE

OTHER LIFE

CHARITABLE EXERCISE Five years ago, DUAL’s Damien Coates decided to take on some personal challenges and raise funds for charity in the process SINCE 2010, Damien Coates has competed in 11 marathons across the globe. Last year, he took part in the TourXOz bike ride from Adelaide to Darwin in support of the Black Dog Institute.

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

“I signed up to the ride never having been on a bike before, and it forced me to train hard, as the ride is 3,500km through all kinds of terrain, facing crosswinds and temperatures of up to 42 degrees through the middle of the desert!” Coates says.

“The fact that we were able to visit Indigenous communities and outback mental health facilities was a truly incredible experience.”

Another marathon that stands out in Coates’ memory took place in 2013 in Sierra Leone.

“It was an amazing experience where we not only ran with the locals … but, more importantly, we got to visit local villages [and] see the amazing work of the charity we were supporting, Street Child.”

So, what adventure does Coates see next on the horizon?

“I’ve been wanting to climb Mount Kilimanjaro for a few years, so that’s definitely next on my hit list!”

3,500km

The length of Coates’ epic charity bike ride in 2015, in which he travelled from Adelaide to Darwin

$60,000

The amount of money Coates has personally raised for charity over the past six years

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The number of marathons Coates has completed across eight countries

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25/07/2016 11:08:17 AM

000_OBC.indd 8

25/07/2016 10:56:11 AM