Insurance Adviser February 2024

FEBRUARY 2024

NIBA AWARDS A world of possibilities

Features: ON THE RIGHT ROAD

Heavy vehicles at a crossroads

Also inside: WAITING GAME

Challenges in professional indemnity

WE ARE YOUR VOICE

CONTENTS February 2024

ACN 006 093 849 ABN 94 006 093 849 Insurance Adviser magazine is the monthly magazine of the National Insurance Brokers Association (NIBA).

Insurance Adviser magazine is published by NIBA

Publisher

Philip Kewin, CEO, NIBA T: (02) 9459 4305 E: pkewin@niba.com.au W: niba.com.au

FEATURES 10 SAVE THE DATE The 2024 NIBA Convention will be held at the Adelaide Convention Centre

NIBA Editor Virat Nehru

Editorial enquiries

E: editor@niba.com.au

National Sales Manager Tony May E: tmay@niba.com.au

Design

Citrus Media www.citrusmedia.com.au NIBA gives no warranty and makes no representation that the information contained in this magazine is, and will remain, suitable for any purpose or free from error.

To the extent permitted by law, NIBA excludes responsibility and liability in respect of any loss arising in any way (including by way of negligence) from reliance on the information contained in this magazine or otherwise in connection with it.

The contents of Insurance Adviser are protected by copyright and NIBA reserves its rights in this regard.

22 NIBA AWARDS: A WORLD OF POSSIBILITIES Nominations open soon. Hear from some of the past winners about where the NIBA Awards can take you

NIBA.COM.AU / 3

CONTENTS February 2024

FEATURES 32

ON THE RIGHT ROAD

The heavy vehicle sector is still tackling some lingering issues

IN EVERY ISSUE NIBA CEO Welcome..................................... 6 Member Benefits ............................................. 8 Representation .............................................. 12 Industry Bulletin .......................................... 14 Insure Your Future ....................................... 20

EVENTS

38

WAITING GAME

Timely and detailed renewal preparation is key in the PI market

Event Pictorials ............................................. 46

REFERENCE Community Hub .......................................... 48 Insurer Strength Ratings .............................. 54

DISPLAY ADVERTISING INDEX – FEBRUARY 2024 BAIS......................................................... IFC

Ebix.............................................................. 17

QPIB...........................................................43

Insurance Advisernet..............................5

Focusnet....................................................29

Code of Practice....................................45

Vero................................................................7

HMIA........................................................... 31

ASR.............................................................. 47

Allianz........................................................... 9

Zurich......................................................... 37

CGU...................................................... OBC

Hunter......................................................... 15

Insure Your Future ................................41

If you’d like to advertise your products and services through NIBA, please contact Tony May today on (02) 9459 4303 4 / INSURANCE ADVISER FEBRUARY 2024

high quality

ADVICE BEGINS WITH A

high quality NETWORK

Insurance Advisernet is looking for you to join the most awarded Authorised Representative network in Australia.

As a network that prides itself on its positive and supportive culture, you’ll never feel more at home. Our emphasis on expert advice means that you will have access to all the support systems you need to perform at your very best, including referral leads, IA Foundation initiatives to support your local community, marketing support and BOT technology for product comparison, providing more efficiency for you and your team.

CEO / Welcome

WELCOME TO 2024

T

he great news coming out of the Christmas break is that there is no news. Unlike the last few years, we are not talking about drought, bushfires, floods, cyclones or dare I say, a pandemic. Yes, there were some events in some areas, but I feel we were finally able to just celebrate Christmas and the New Year without having to deal with a major catastrophe or natural disaster.

I also want to say we celebrated Australia Day, a day when we all come together to celebrate everything that is great about this wonderful country, whether it is mountain ranges or sweeping plains. It also seems to be the well-held bookend date where we stop saying ‘Happy New Year’.

Of course, insurance is never out of the spotlight, and this month, the House of Representatives Standing Committee on Economics is focusing on the insurers’ response in the wake of the 2022 floods in Northern NSW and South Queensland. In the opening hearings, the Insurance Council of Australia CEO Andrew Hall admitted that claims were not handled to expected standards. Andrew went on to say that insurance products need to “stand on their own two feet”.

I am sure there will be valuable takeaways from the hearings and the insurance industry will learn from some of the experiences. One particular benefit will be the increased awareness in the broader community of the many risks we face and the need to either mitigate or insure against those risks. In doing so, people will appreciate the need for a broker and the expertise required to assess the risk and find suitable solutions.

In this edition of Insurance Adviser, we will be delving into the area of ‘Heavy Motor’ and ‘Public Indemnity Insurance’ and the evolving challenges in these markets, including the ongoing supply chain issues and the evolution of electric vehicles (EVs). Meanwhile, our ‘Public Indemnity Insurance’ special looks at the challenges facing certain industries and the ongoing market instability.

This month will see the launch of the ‘Insure Your Future’ (IYF) website. This is the next stage of NIBA’s initiative to promote and encourage insurance broking as a career of choice to school leavers, graduates, and career changers. So far, we have had extremely positive feedback on the initiative, and strong interest from NIBA Members to register their interest. As foreshadowed during the launch at our Convention in October last year, this will not be an overnight solution, but more of a long-term plan to promote insurance broking as a profession of choice.

6 / INSURANCE ADVISER FEBRUARY 2024

Once again this year, we will be recognising exceptional brokers through the Young Broker of the Year and the Broker of the Year Awards, with campaigns to kick off this month. Vero is now entering its 35th year of supporting the Young Broker of the Year Award, and we are extremely excited that CGU will be supporting the Broker of the Year Award for the first time. We look forward to showcasing the state finalists at our Gala Lunches to be held in July.

Of course, only a few months after that, the NIBA Convention will be held at the Adelaide Convention Centre from Sunday the 20th to Tuesday the 22nd of October. So, be sure to mark those dates in your diary. After the stunning success of last year’s Convention, this year promises to take you beyond the status quo.

PHILIP KEWIN Chief Executive Officer, NIBA

It takes insight to deliver claims excellence Gold Mansfield for Claims Excellence – 4 years running

We’re proud to announce that Vero has again been recognised for Claims Excellence at the 2023 Mansfield Awards.

By protecting customers at claims time, Vero protects broker relationships.

That’s insurance with insight.

Find out how we are continuously improving our claims experience.

Insurance issued by AAI Limited ABN 48 005 297 807 trading as Vero Insurance. The information in this article is of a general nature only. Please make your own enquiries and/or obtain independent advice. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Read the Product Disclosure Statement before buying insurance. The TMD is also available. Go to vero.com.au for a copy.

NIBA / Member Benefits

GET TO KNOW THE NIBA TEAM GET IN TOUCH!

Whatever your age, or level of experience, NIBA ha s brokers’ best interests at the core of everything we do. Fin d out what we can do to help be nefit your business and your tea m at niba.com.au/membe rship

NICOLE (NIKKI) PEARSALL OFFICE ADMINISTRATOR How long have you worked at NIBA? 11 months.

What does a typical day in your role look like?

I have a lot of smaller jobs to keep me busy rather than the typical long projects or ongoing projects, and I quite like it that way. I’m the kind of person who likes to keep themselves busy by doing a range of different things to keep my days interesting.

A typical day for me is assisting members with any enquiries they may have. The most common queries include how to become an insurance broker and get into the industry, and how to log back into my NIBA profile.

Other jobs that keep me busy during the day are reviewing and approving CPD course applications, approving membership applications, and creating invoices.

What’s something you’ve achieved at NIBA that you’re proud of?

I have helped the company move to our new member portal and assisted our members in updating their information through their accounts.

What’s your favourite musical and why?

It’s hard to pick just one favourite, but I’d have to say Phantom of the Opera. I love the music and the way there is very little speaking lines, but instead, everything is sung. I get a huge hit of dopamine when I hear the songs and it makes me very happy. Others in my top 10 would have to include Legally Blonde, SIX, Wicked, Rent, Come from Away, Heathers and Beauty and the Beast.

What musical is one everybody loves but you think is overrated?

Moulin Rouge and Hamilton.

NIBA SAYS CONGRATULATIONS NIBA CONGRATULATES THE FOLLOWING MEMBERS FOR RECEIVING THEIR QPIB DESIGNATIONS Grant Handley, Aon Risk Services Australia Kylie Gooley, Network Insurance Group

NIBA CONGRATULATES THE FOLLOWING MEMBER FORBECOMING AN ASSOCIATE MEMBER Jessica Cudia, Simplex Insurance Solutions

8 / INSURANCE ADVISER FEBRUARY 2024

ABOUT NIBA OUR MISSION

NIBA is the one voice for insurance brokers in Australia, representing their interests and promoting high standards of professionalism and competence.

OUR OBJECTIVES Representation

We represent the interests of members and their clients to governments, regulators, industry stakeholders, the media and the community in a manner that is respected and relevant. We have forged strong relationships at a state and national level to ensure that your interests are represented.

Professionalism

We set and promote high standards of professional practice for insurance brokers for the benefit of their clients and the community through the development of professional standards, QPIB, CPD accreditation and the Insurance Brokers Code of Practice.

Community

We provide members with opportunities to meet, share, grow and prosper, and build professional networks with the wider intermediated insurance community that will last throughout whole careers.

It’s now easier to do business with us We've launched our new risk appetite guides for SME, Workers Compensation, Farm and Motor Fleet Insurance, so you know exactly what we prefer to insure. Request quotes with confidence, answer questions faster and be ready with the best cover options for your clients.

Visit allianzengage.com.au to learn more.

Insurance issued by Allianz Australia Insurance Limited ABN 15 000 122 850, AFS Licence No.234708. This information is general advice only and does not take into account your objectives, financial situation or needs. Consider the relevant PDS in deciding whether to buy or continue to hold any insurance products.

2024 NIBA CONVENTION / Destination: Adelaide

THE 2024 NIBA CONVENTION HAS A NEW HOME: ADELAIDE

After an unforgettable 2023 NIBA Convention at the Gold Coast, we are excited to announce that the 2024 NIBA Convention will have a new home – Adelaide.

Here are some exciting things to do in Adelaide when you’re in town so you can make it a trip to remember.

THINGS TO DO IN ADELAIDE

1

Barossa Valley wine tour

If you fancy yourself as a wine enthusiast, the Barossa Valley wineries tour might be perfect for you. An hour’s drive from the city centre, the Barossa is home to the world’s oldest-producing vines, such as Shiraz, Cabernet Sauvignon, and Semillon, among others.

2

Explore Adelaide’s Central Market

Boasting over 70 traders who come together under one roof, the Adelaide Central Market is one of the largest undercover fresh produce markets in the southern hemisphere.

3

Lose yourself in the Adelaide Botanic Garden

The Adelaide Botanic Garden is like a time capsule to a peaceful, calm world in

10 / INSURANCE ADVISER FEBRUARY 2024

the city’s heart. You can spend a relaxing day getting lost amongst 50 hectares of magnificently maintained flora and its stunning architecture.

4

Revel in the history of the Adelaide Oval

5

A day trip to Kangaroo Island

Visiting the Adelaide Oval is a must if you’re a diehard cricket or footy fan. The Oval oozes tradition and history, including a heritage-style scoreboard and vintage dressing rooms.

If you have time for a family getaway, a trip to Kangaroo Island is a nice way to cap off your visit to South Australia.

With a chance to spot seals at the Seal Bay Conservation Park and hang out with koalas and kangaroos, among other animals, it’s

the perfect opportunity to unplug your tech devices and spend family time with nature.

GETTING TO ADELAIDE There are regular, non-stop flights running to Adelaide from major cities such as Melbourne (90 minutes), Sydney (2 hours), Brisbane (3 hours) and Perth (3 hours). It’s best to plan your trip as early as possible. The month of October is a hub of activity for Adelaide, with attractions such as the OzAsia Festival and the Adelaide Film Festival taking place, bringing in large crowds of people.

2024 NIBA CONVENTION / Destination: Adelaide

SAVE

THE DATE

Mark the date in your calendars!

The 2024 NIBA Convention will take place from Sunday, 20 October to Tuesday, 22 October 2024 at the Adelaide Convention Centre.

NIBA.COM.AU / 11

NIBA / Representation

WE ARE YOUR VOICE!

The following is an overview of some of the things NIBA has been examining on behalf of members.

A key part of NIBA’s role is representing the interests of brokers to government and regulators to ensure that all Australians have access to trusted risk advice. NIBA also maintains strong relationships with government, regulators, relevant industry bodies, consumer groups and government agencies.

CHANGES TO FINANCIAL SERVICES LEGISLATION

Last month, the Final Report of the Australian Law Reform Commission’s (ALRC) inquiry into simplification of the legislative framework for corporations and financial services was tabled in parliament.

The comprehensive report, comprising 58 recommendations, aims to overhaul the existing legislative framework, which the ALRC labelled as “no longer fit for purpose”.

The inquiry focused on three key areas each the subject of a separate interim report released over the past 3 years: • the appropriate use of definitions in corporations and financial services legislation; • regulatory design and the hierarchy of primary law provisions, regulations, class orders, and standards; and • potential reframing or restructuring of Chapter 7 of the Corporations Act. The ALRC’s inquiry highlighted a number of issues with the current framework including; unnecessary complexity, an incoherent legislative hierarchy, and a rapidly increasing number of legislative instruments, powers and notional amendments creating what the ALRC described as a “legislative maze”.

Among the 58 recommendations, the ALRC proposed significant reforms including; • Overhauling the current legislative model for Financial Services Law: Consolidating the provisions that regulate the financial services industry within the ASIC Act and Chapter 7 of the

12 / INSURANCE ADVISER FEBRUARY 2024

Corporations Act into a unified ‘Financial Services Law’ under the Corporations Act. • Simplified definitions: Introducing a standardised definition of the terms ‘financial product’ and ‘financial service’ which currently have multiple definitions that are used within the same piece of legislation.

• Streamlined Offence and Penalty Provisions: Consolidated and simplifying offence and penalty provisions to make it easier for advisers to understand their obligations and consumers to enforce their rights.

•R emoving notional amendments: the report noted that the use of notional amendments (provisions that change the legal effect of another provision without changing the text of that provision) have made the Corporations Act “deeply inaccessible” to remedy this the ALRC proposes to replace these amendments with “thematic, consolidated rulebooks” to regulate particular products, services or circumstances.

The ALRC believes that the proposed reforms will “reduce costs for service

NIBA / Representation

providers and consumers, improve productivity by reducing complexity, and provide clarity around compliance requirements and enforcement.” The report provides a detailed roadmap for implementing the proposed legislative reforms, although a number of reforms recommended in earlier interim reports have already been introduced. The government is expected to provide a response to the report later this year.

QUALITY OF ADVICE REVIEW

Late last year, the government delivered their final response to the Quality of Advice Review recommendations.

Progress is already under on reforms scheduled in Tranche 1 of the response, with draft legislation released that provided for consultation on a number of reforms including introducing flexibility in the way disclosure documents such as FSG’s are provided to clients as well as commission disclosure and consent obligations for general insurance, life insurance, and consumer credit insurance commissions.

As part of the reforms, the government has proposed to introduce a new class of financial advice provider who will be able to provide “simple personal advice”.

This adviser will be subject to the best

interest duty and minimum competency standards. Unlike insurance brokers, this new type of adviser will not be able to charge a fee or receive a commission in exchange for the advice they provide.

These reforms will likely make it easier for providers of financial products to provide advice on their own products and services. This is likely to result in significant changes to the general risk advice industry, although what types of advice will be caught by the “simple personal advice” definition is currently not known.

In response to the recommendation to replace the existing best interest duty with a “good advice duty”, the government instead announced they would introduce a “modernised and flexible” best interests duty which will apply to all providers of advice.

The existing primary obligation to act in the best interests of the client and to prioritise the interests of the client in the event of a conflict will be retained.

The new best interest duty will provide clearer guidance for scaled or limited scope advice where this meets the client’s needs and for advice where the provider of the advice has limited but relevant information. The government has previously announced the existing “safe harbour” steps will be removed, with legislation to implement this change expected in early 2024.

Also of note is the government’s decision not to proceed with some of the key recommendations of the review, including the expansion of personal advice and the removal of general advice warnings.

While further details of these proposed reforms have yet to be released, NIBA has already begun to engage with the government to ensure existing exemptions for brokers are maintained where appropriate, and all clients receive the same protections regardless of how they choose to access risk advice.

CONTACT NIBA

As always, brokers who have questions about these or any other government or regulatory matters should feel free to contact NIBA CEO Philip Kewin at: pkewin@niba.com.au

NIBA.COM.AU / 13

PROFESSIONALISM / Industry Bulletin

AFCA COMPLAINTS CROSS 100,000 IN A CALENDAR YEAR FOR THE FIRST TIME

T

he Australian Financial Complaints Authority (AFCA) received a record number of complaints in the 2023 calendar year, recording more than 100,000 complaints for the first time since its creation in 2018.

“The volume of complaints escalated to AFCA has been increasing at an unsustainable rate,” said David Locke, the Chief Ombudsman and Chief Executive Officer of AFCA. AFCA’s preliminary data snapshot revealed a significant increase in the number of complaints from consumers and small businesses, with the number of complaints rising by 23% compared to the previous year.

“Scam-related complaints to AFCA have nearly doubled between 2022 and 2023.

They continue to be of great concern to us.

14 / INSURANCE ADVISER FEBRUARY 2024

We are also seeing the impact of increased interest rates and cost-of-living pressures, with complaints involving financial hardship also significantly higher,” Mr Locke said.

Mr Locke’s concerns are supported by the 2023 complaints data, which shows scam-related complaints almost doubled in 2023. Of the 102,790 complaints received by AFCA, 8,987 related to scams, an increase of 95% from 2022. Financial hardship complaints also increased, with the snapshot revealing a 29% increase from the previous year.

Claims related issues increased significantly with delays in claim handling, claim amount and denial of claim all placing in the top five most complained about issues for 2023.

“As we head into the new year, our hope for 2024 is that this will be the year that

anti-scam initiatives by industry and government finally disrupt this serious and organised crime,” Mr Locke said.

Mr Locke expressed his concerns about the high number of disputes that were being escalated to AFCA, which he says is putting unnecessary pressure on the dispute resolution service and causing delays for consumers.

“We also need to see a downward trend in complaints overall, with financial firms working better to support their customers and to address complaints quickly and efficiently in-house. We believe many financial firms could be doing a better job of handling complaints within their own internal complaints processes, so only the most complex cases reach AFCA – which is the role we are meant to play,” Mr Locke said.

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PROFESSIONALISM / Industry Bulletin

DRAFT LEGISLATION OUTLINING MANDATORY CLIMATE REPORTING STANDARDS RELEASED

T

he Australian Government has released draft legislation to introduce mandatory reporting as part of establishing a new climate risk disclosure framework.

Under the proposed reforms, relevant entities will be required to submit an annual sustainability report as part of their annual financial reporting. These changes have been brought about to further Australia’s goal towards achieving net zero emissions as well as achieving its 2030 emissions target. The Federal Treasurer the Hon Jim Chalmers outlined the rationale behind introducing the draft legislation in a media statement. “[The government’s] changes will establish Australia’s climate risk disclosure framework, giving investors and companies the transparency, clarity and certainty they need to invest in new opportunities as part of the net zero transformation,” he said.

The draft legislation will amend Australian Securities and Investment Commission Act 2001 and the Corporations Act 2001 to introduce “standardised, internationally-aligned reporting requirements for businesses”, in order to ensure there is transparency for investors and stakeholders.

WHO WILL BE IMPACTED?

The government has proposed a phased approach to the implementation of the reporting requirements, dividing affected entities into three groups. Entities that are currently required to lodge financial reports under Chapter 2M of the Corporations Act and meet two of the three criteria in any one of the three categories below will be impacted by the proposed reforms.

Group 1: Entities with consolidated gross revenue of $500 million or more, consolidated assets of $1 billion or more, or with more than 499 full-time equivalent employees. Entities that fall into Group 1 will be required to issue the first sustainability report for annual reporting periods starting 1 July 2024.

16 / INSURANCE ADVISER FEBRUARY 2024

Group 2: Entities with consolidated gross revenue of $200 million or more, consolidated assets of $500 million or more, or more than 249 full-time equivalent employees. Entities that fall into Group 2 will be required to issue the first sustainability report for annual reporting periods starting 1 July 2026.

Group 3: Entities with consolidated gross revenue of $50 million or more, consolidated assets of $25 million or more, or more than 100 full-time equivalent employees. Entities that fall into Group 3 will not be required to issue the first sustainability report until annual reporting periods starting 1 July 2027.

WHO IS EXCLUDED?

• Small and medium-sized businesses that fall below the above thresholds or do not fulfil the above criteria; • Businesses that are not required to file annual financial reports under section 2M of the Corporations Act 2001 or have

been granted an exemption from the requirement to file an annual financial report by ASIC and registered Australian charities or not-for-profit organisations.

“The draft legislation gives companies the opportunity to build capacity to make high quality climate risk disclosures by providing early visibility of the proposed reporting requirements and expand the breadth of entities required to report over time,” Mr Chalmers said.

FURTHER OBLIGATIONS

The climate-related mandatory reporting obligations will be subject to the same assurance requirements that currently apply to financial reports under the Corporations Act 2001. Companies will be required to provide an assurance report from their auditors regarding the climate disclosures they have made.

You can find out more about the draft legislation on mandatory climate reporting on the Treasury website.

PROFESSIONALISM / Industry Bulletin

CYCLONE REINSURANCE POOL “FOUND WANTING”

N

orth Queensland economic development bodies – Advance Cairns, Greater Whitsunday Alliance and Townsville Enterprise – have united in a bid to reform the Cyclone Reinsurance Pool. As the Far North Queensland region braces for another cyclone which is expected to make landfall later this week, concerns are being raised as to the suitability of the Pool to respond to such events. “Ex-TC Jasper was the first event to test this framework and the pool has been left wanting” said Advance Cairns Chief Executive Officer Jacinta Reddan in a joint statement released last week.

In their statement, the groups called for a review of the Pool and the extension of the post-cyclone coverage period. Currently the pool provides cover for cyclone and related flood damage including wind, rainwater, rainwater run-off, storm surge, and riverine flooding from the time a cyclone event is

18 / INSURANCE ADVISER FEBRUARY 2024

declared by the Australian Reinsurance Pool Corporation (ARPC) until 48 hours after the cyclone ends.

Following reports of extensive flooding that occurred outside of the 48-hour period covered by the Pool, the peak bodies have called into question whether its design is fit for purpose. “Our concern from the beginning has always been that a 48-hour rule would not be sensible to address the unpredictability of weather events, including impacts from flooding,” said Townsville Enterprise CEO, Claudia Brumme-Smith.

Other stakeholders have expressed similar concerns over the 48-hour damage period’s ability to cover a high enough portion of claims to deliver the level of premium savings promised by the previous government.

In a submission to the 2022 Senate review of the Cyclone Reinsurance Pool legislation, NIBA noted that the 48hour damage period “fails to take into

consideration the extensive damage caused to other parts of Northern Australia by exCyclones as they move across the country” and recommended that the post-cyclone coverage period be extended.

In addition to the extension of the post-cyclone coverage period, the statement also calls for the extension of the Cyclone Reinsurance Pool to include non-cyclone related flood damages, insurance incentives for policyholders who undertake household mitigation works, greater investment in both community and household level disaster mitigation, improved building codes, and the removal of “unfair” government taxes and charges on insurance policies.

In response to the concerns raised, the Assistant Treasurer and Minister for Financial Affairs, Stephen Jones, announced he is open to the possibility of bringing the planned review of the Pool forward from 2025 to later this year.

PROFESSIONALISM / Industry Bulletin

GOVERNMENT DELIVERS $100 MILLION BETTERMENT FUND FOR DISASTER-HIT QUEENSLAND

A

$100 million ‘Betterment Fund’ has been announced to support disasteraffected communities, to recover from severe flooding and monsoons in the aftermath of ex-Tropical Cyclone Jasper.

This new injection of funding is part of a larger $119 million recovery and resilience package for Queensland that will be jointly funded by the state and federal governments.

This latest round of emergency funding is over and above previous assistance already announced and is targeted at rebuilding infrastructure and the long-term economic, community and environmental recovery of the region.

The $119 million recovery and resilience package comprises of the below components: • $100 million Betterment Fund: to help rebuild public infrastructure such as roads and bridges to a more resilient standard; • $15 million Environment Recovery Package: to assist in environmental

investigations, clean-up and recovery of waterways, biodiversity and invasive species management, and national park recovery efforts; • $2.2 million Human and Social Recovery Package: to provide Community Recovery and Resilience Officers in targeted Local Government Areas (LGAs) and; • $1.4 million Economic Recovery Package: to support recovery of the regions’ tourism and livestock industries.

This funding is provided as per the Disaster Recovery Funding Arrangements (DFRAs).

Federal Minister for Emergency Management Murray Watt outlined how the new Betterment Fund will support long term disaster resilience in the area.

“Considering many of impacted areas were also hit by the 2019 Monsoon event, investment in Betterment – ensuring infrastructure is built back to a more resilient standard – is crucial to better

protecting these disaster-prone regions in the future,” he said.

Queensland Premier Steven Miles highlighted the support that the state’s transport infrastructure urgently needs, as this new round of investment will go a long way in providing that support.

“Our regional transport network was particularly battered, further isolating what are already some of our most remote communities,” Premier Miles said.

“That’s why we’re making a $100 million investment in Betterment projects for impacted communities, to ensure these Queenslanders are reconnected sooner when future disasters strike.”

Further challenges lie on the horizon, as Queensland is also currently recovering from another recent storm – ex-Tropical Cyclone Kirrily – which has also caused devastation across the state.

NIBA.COM.AU / 19

KEEP AN EYE OUT The new Insure Your Future website will launch later this month.

The website hosts information on career pathways, details about different jobs within insurance broking, interviews with brokers about their roles and their answers to common questions. Importantly, there are clear next steps for people to take from this information, with an Employer Directory of NIBA members complete with links and contact information. In addition to providing information and resources to prospective talent, representatives from the Insure Your Future Committee and other interested NIBA members will attend career expos and conventions around the country under the initiative’s banner.

This will allow us to build a recognisable brand and engage with a wider range of people to bring the profession to the forefront of people’s minds as a career of choice. The website also has information for careers advisors or departments to get in touch with organisers, enabling Insure Your Future to provide them information packs and physical collateral to help them educate prospective talent on the options within the broking profession.

Visit insureyourfuture.com.au for more information

Visit the Insure Your Future website, where you can explore the content and watch interviews with your colleagues from across the profession.

If your business has not registered to feature on the Employer Directory, please do so by visiting

insureyourfuture.com.au/directory-submission If you have any questions or would like to get involved with IYF, please contact

info@insureyourfuture.com.au

COVER STORY / 2024 NIBA Awards: A World of Possibilities

2024 NIBA Awards: A World of Possibilities

With the nominations for the 2024 NIBA Awards opening soon, Insurance Adviser caught up with past winners of the Broker of the Year and Young Broker of the Year awards. The past winners shared their insights on what sets the NIBA Awards apart, and how getting nominated was a transformative experience for them. Hear from the best of the best and discover where the NIBA Awards can take you.

An emotionally overwhelming feeling Recalling the time their names were announced, last year’s winners of the Young Broker of the Year Taylor Burstow, and the Broker of the Year Barry Sonter, both expressed feeling emotionally overwhelmed in the moment.

“When my name was announced as the winner of the Young Broker of the Year, my immediate reaction was a mix of surprise and shock,” said Taylor Burstow, winner of the 2023 Young Broker of the Year.

“As the realisation sank in, my emotions shifted towards sheer joy. The overwhelming feeling of being acknowledged for my dedication and contributions to the industry was an indescribable high. Walking up to accept the award, a wave of humility washed over me, especially as I exchanged congratulations with my accomplished peers.

“Their recognition magnified the emotional significance of the achievement, turning the moment into a profound and humbling experience that I will carry with me always.”

Barry Sonter, the 2023 Broker of the Year agrees. In fact, the intensity of the emotion was so immense, that he forgot where he’d kept his notes for his speech that he had considered preparing in case he was announced as the winner.

“As I was walking up the stage, I was looking for my notes but couldn’t find them, so I had to basically wing the whole thing,” said Mr Sonter.

“It was quite funny because I had just watched the Young Broker of the Year make a really good speech. And here I was, just having to wing it. I think it’s the sheer emotion of the actual acknowledgement that you are selected which takes a hold of you.”

22 / INSURANCE ADVISER FEBRUARY 2024

“After participating in a career-changing eightweek journey with my exceptional fellow state winners, we had created a bond of mutual respect, and it was clear that any one of us could have claimed the title.”

2023 Young Broker of the Year Taylor Burstow, Head of Client Services, East West Insurance Brokers

COVER STORY / 2024 NIBA Awards: A World of Possibilities

NIBA.COM.AU / 23

COVER STORY / 2024 NIBA Awards: A World of Possibilities

Point of difference The fact that you can’t self-nominate and are recognised by your peers were two important factors that set the NIBA Awards apart from other forms of recognition for our previous winners.

“For me, this award is incredibly important to our industry as you are nominated, judged and awarded by your peers,” said Shelley Hymas, the 2020 Broker of the Year.

“It is a great way for the top performing senior brokers in each state to be recognised for their contributions locally and nationally. I believe that this award differentiates itself from the abundance of industry-related awards now in existence, as you are unable to self-nominate or utilise an external company to put together a submission, which seems to be growing in popularity.

“The nomination process is based purely on your individual professionalism, integrity, commitment to your professional development and contribution to our industry and the wider community.”

24 / INSURANCE ADVISER FEBRUARY 2024

“For me, this award is incredibly important to our industry as you are nominated, judged and awarded by your peers.”

2020 Broker of the Year Shelley Hymas, Director, Phoenix Insurance Brokers

COVER STORY / 2024 NIBA Awards: A World of Possibilities

“It’s the industry award that to me sits on a pedestal above the others. It covers right across the whole spectrum of all the different insurance groups. And if you’re a broker, that’s the one you want to win.”

2023 Broker of the Year Barry Sonter, Head of National Accounts, Finsura Insurance Broking

Adam Ware, winner of the 2017 Young Broker of the Year, highlighted the rigorous process and methodology in selecting the winners and giving them a platform, which was a key factor that made the NIBA Awards different.

“The award criteria and the process involved in determining the finalists and overall winner is what sets the NIBA Awards apart from all the others,” said Mr Ware.

“It is an extensive process and at times it can be quite daunting, especially the interview component.

“For me, the NIBA awards continue to remain the standout simply because of the methodology that goes into selecting the winners, which to my knowledge is unmatched elsewhere.”

When considering the Young Broker of the Year award, Mr Burstow noted the tailored program that longtime sponsor Vero puts together revolving around professional and personal development.

“What distinguishes the Young Broker of the Year award is the unique set of experiences it offers,” said Mr Burstow.

“Sponsored by Vero, the award comes with an exceptional eight-week program dedicated to both professional and personal development. This program not only fosters a strong bond with fellow state winners but also imparts lasting lessons crucial for one’s entire career.

“Additionally, the award includes an opportunity to contribute to a community impacted by a weather event, providing a perspective shift on personal values and priorities.

“The engagement with peers, combined with the community service component, creates a multi-faceted experience that sets this recognition apart. It goes beyond personal achievement, emphasising the broader impact and connections forged throughout the transformative eight-week journey.”

For Dr Bunmi Ajayi, winner of the 2015 Broker of the Year award, the recognition was more than just a title. Winning the award meant that as a broker, you were helping to set a high benchmark for the industry.

“Broker of the Year isn’t just about individual achievement,” said Dr Ajayi.

“It represents a standard of excellence that transcends personal success. It highlights the commitment to elevating the industry by showcasing best practices, fostering innovation, and inspiring others to strive for greater heights of professionalism and client dedication.

“This award is a beacon that illuminates the path toward redefining excellence in insurance brokerage, setting a benchmark for the industry’s future trajectory.”

Due to a combination of these factors, Mr Sonter highlighted the coveted position that the NIBA Awards hold in the minds of brokers across the industry.

“It’s the industry award that to me sits on a pedestal above the others,” said Mr Sonter.

“It covers right across the whole spectrum of all the different insurance groups. And if you’re a broker, that’s the one you want to win.”

NIBA.COM.AU / 25

COVER STORY / 2024 NIBA Awards: A World of Possibilities

“Being a country boy from Victoria living in an area not overly populated, winning the award allowed me to meet people from all over the world, that I never expected to encounter in my day-to-day work otherwise.”

2017 Young Broker of the Year Adam Ware, Director, BJS Insurance Brokers

A national platform

Past winners from regional areas noted how becoming an award winner helped thrust them on to the big stage, opening new doors and opportunities they had not previously imagined.

“Being a country boy from Victoria living in an area not overly populated, winning the award allowed me to meet people from all over the world, that I never expected to encounter in my day-today work otherwise,” said Mr Ware.

“This included previous award winners, subsequent years’ finalists and winners, influential people from NIBA, Vero and abroad. I was lucky to meet the British Insurance Brokers Association team in London and spend time at Lloyd’s.”

Luke Chrzanowski, 2015 Young Broker of the Year, shared how the professional development opportunities he got as a result of the award were invaluable for his career.

“When I did win the award, I was able to use the money to travel overseas,” said Mr Chrzanowski. “I went to Lloyd’s and Munich Re. It was extremely eye-opening for a young insurance professional.

“Back in 2015, I had been a broker for 7-8 years. Being able to have the chance to go to Munich Re and learn some skills in

26 / INSURANCE ADVISER FEBRUARY 2024

reinsurance was not something I had ever imagined I would be able to do, particularly as a young broker.

“I thought maybe when I’m 50 or 60 years old, I would be able to participate in a study tour. I just never imagined that before the age of 30 I’d be going over to do reinsurance at Munich Re for a few days. That was an amazing opportunity.”

What’s more, being from a regional area like Mr Ware, Mr Chrzanowski admitted he had never participated in a professional photo shoot before. Becoming a state finalist and winning the award shone the spotlight on him and put him on the national stage in more ways than one.

“Being a young regional broker, I’d never had a professional photo shoot in a corporate setting,” shared Mr Chrzanowski.

“I don’t think I’d ever been formally interviewed before and I had never been featured in a broker magazine before.

Winning the award opened me up to things I hadn’t experienced before, such as public speaking. The support, training and guidance you receive is fantastic and helps develop confidence and professionalism.

“The world of insurance opens this whole other realm for you.

It’s a mixture of exciting and occasionally scary. But that’s a good

COVER STORY / 2024 NIBA Awards: A World of Possibilities

“The world of insurance opens this whole other realm for you. It’s a mixture of exciting and occasionally scary.

But that’s a good thing because if you weren’t nervous, you wouldn’t care about it.”

2015 Young Broker of the Year Luke Chrzanowski, Associate Director, Tresidder Insurance Brokers

thing because if you weren’t nervous, you wouldn’t care about it.

It’s okay to be nervous, it means you care.”

Mr Chrzanowski also noted how the finalists come from all walks of life and having a good mix of brokers – with their varied backgrounds and experiences – means that everyone is exposed to the diversity of the broking profession.

“I was a volunteer firefighter for about 13 years and heavily involved in the community because I’m from a regional background and where we are, all we have is the community,” said Mr Chrzanowski.

“I think different brokers have different communities, for example, a city broker might contribute to the community differently to a regional broker.”

A trusted leader of the industry

Alan Wilson, the inaugural winner of the Broker of the Year award back in 2012, reflects on the decade since he became the very first recipient. Over the course of his illustrious career, he’s become a Coverholder at Lloyd’s and was recently awarded the

“It’s hard to put a monetary value on it but it’s nice to see that people around the world recognise you.”

2012 Broker of the Year Alan Wilson, Director, Alan Wilson Insurance Brokers

NIBA.COM.AU / 27

COVER STORY / 2024 NIBA Awards: A World of Possibilities

Medal of the Order of Australia (OAM) in 2023 for service to the community through a range of organisations.

“It [the award] was something new and it was a pretty surreal experience to actually be chosen,” said Mr Wilson. “[Since winning the award] I’ve moved on and become a Coverholder at Lloyd’s and I think that has helped in some of my work that I’ve done. It’s hard to put a monetary value on it but it’s nice to see that people around the world recognise you.

“To be recognised by the National Insurance Broker Association, which is the peak body for the broking profession, and the and the people involved in all of that has been great. And I think that’s one of the things that’s probably – you can’t measure it – but it does help you along the way,” Mr Wilson highlighted.

“Personally, I was honoured that someone thought highly enough of me to nominate me, which made me think that perhaps I was having an impact,” said Ms Hymas.

“It has provided me with more networking opportunities and chances to speak at a number of events. Winning has expanded my network both inside and outside of our industry in some amazing ways. It has allowed me to further invest in my professional development, which in turn has helped to grow our business.”

Taylor Burstow shared how winning the Young Broker of the Year last year has helped raise his professional profile.

“The recognition has provided unparalleled access to senior figures in insurance companies and underwriting agencies, fostering valuable connections,” Mr Burstow said.

“Now, colleagues seek my advice and perspective on industry trends, seeking insights into our direction and strategies for cultivating an engaged talent pipeline.

“The award has not only opened doors for professional collaboration but also positioned me as a thought leader within the field. The overwhelming support and commendations from industry peers have been humbling, reinforcing the impact of this accolade on my career trajectory, and emphasising the importance of continued contributions to the insurance profession.”

Dr Ajayi noted that winning the award helped position him as a thought leader in the industry and changed the perspective regarding how his clients saw him.

“From a client perspective, this recognition has transformed [my clients’] perception of me and the services I provide,” said Dr Ajayi.

“Clients now view me as a symbol of trust and excellence, reinforcing their confidence in my ability to deliver tailored, highquality solutions. It has deepened the bond of trust, allowing for more meaningful and enduring client relationships built on the foundation of demonstrated expertise and dedication.

“On a personal level, winning Broker of the Year has been a validation of my commitment to professionalism and excellence.

“It serves as a constant reminder of the responsibility that comes with this acknowledgment, motivating me to continuously enhance my skills, stay updated with industry trends, and uphold the highest standards of integrity and service.”

Mr Sonter shared that winning the award was an opportunity for him to self-reflect and recognise that the work he had been doing was indeed making a real difference in people’s lives.

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“Clients now view me as a symbol of trust and excellence, reinforcing their confidence in my ability to deliver tailored, high-quality solutions.”

2015 Broker of the Year Dr Bunmi Ajayi, Founder & CEO, Megalines Insurance & Risk Advisers

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COVER STORY / 2024 NIBA Awards: A World of Possibilities

“I started getting emails and people started reaching out to me,” said Mr Sonter.

“I certainly think there’s a reflection process in the fact that a lot of the clients thank you for the journey that they have gone with you, which in my case, has been over 30 years.

“They [my clients] tell me that you’ve always been that reliable source of information or that person that’s been there. Some of the nicest comments highlighted that insurance is one of the things we don’t need to worry about because that’s your domain.

“There was a long-standing client that I dealt with in North Queensland who wrote me a significant email that went for a couple of pages. It was just to thank me. It feels really nice when people take time to write those type of emails.”

Mr Ware agrees with this sentiment, noting that one of the key takeaways from becoming a winner was the fact that his professional relationships strengthened, and he was able to have an impact on people’s lives.

“From a career perspective specifically, most of the impact has again come through the people I’ve met, where the connections made have helped both myself and our brokerage when we have encountered an issue or a problem,” said Mr Ware.

“Insurer contacts that I have been introduced to have occasionally received a call when necessary, such as when a claim has gone off track or where there might have been an issue with underwriting.

“Due to the relationships formed, they are all too happy to help, or at least provide a thorough and reasonable explanation when they are unable to which is equally appreciated.”

A life-changing experience

With nominations for the NIBA Awards opening soon, the past winners highlighted the life-changing opportunities that awaited anyone who was nominated.

“Don’t hesitate to apply for the Young Broker of the Year if you’re nominated,” said Mr Burstow.

“The experience offers invaluable opportunities, providing real-time client feedback and insights from insurers, fostering self-reflection on your career. Engaging with senior industry figures and meeting talented peers from state awards is a unique aspect, broadening your network and perspectives.

“Successful candidates gain access to a transformative program, supported by Vero, shaping both personal and professional development. The nomination alone opens doors, allowing you to connect with influential individuals and reflect on your career path. The chance to join a community of like-minded professionals and be part of a life-changing experience makes this an unmissable opportunity.”

“If someone has taken the time to personally nominate you then I would recommend accepting the nomination,” said Ms Hymas.

“Compiling your submission is a fun way of reflecting on your career to date and your own personal achievements (some of which you may have forgotten). It is also an opportunity to share how you have had an impact outside of our industry. The award process allows you to expand your network and be involved in further professional development.”

Mr Ware echoes a similar sentiment to Ms Hymas, highlighting that going through the process of being nominated and applying was innately rewarding, irrespective of the outcome.

“The process can be almost as valuable as winning the award itself,” Mr Ware said.

“If you can be honest with yourself and know that the work you are doing is of the highest quality, you hold yourself to a high professional standard, and have respectful dealings with all of your colleagues, underwriting partners, and claims personnel, then go-ahead and back yourself to have a crack at the NIBA Awards.”

Dr Ajayi asserted that the goal isn’t necessarily to win. Rather, participating in the process was a great opportunity for personal development and professional growth.

“It’s not merely about winning an award; it’s a transformative journey that offers invaluable benefits,” said Dr Ajayi.

“In my experience, it would provide a unique opportunity to showcase their expertise, innovation, and dedication to the insurance brokerage landscape.

“It’s a chance to put your best foot forward, not only in terms of achievements but also in demonstrating a commitment to client-centricity, innovation, and professional excellence.

“Embracing this opportunity offers unparalleled exposure within the industry, solidifies your reputation as a trusted expert, and fosters meaningful connections with peers.

“Even beyond the award, applicants gain immeasurable insights, exposure to industry trends, and the chance to set new benchmarks while contributing significantly to the industry’s advancement.”

Mr Sonter unabashedly claimed that winning the Broker of the Year in 2023 would always rank as one of his career highlights that he will look back on fondly.

“When I hang up my hat eventually, I think it’ll be one of those career milestones that I will look back and say, you know what, I actually achieved something pretty significant,” said Mr Sonter.

“And the fact that it’s appreciated by an industry body [NIBA] makes it pretty special. If anyone gets the opportunity to do it, they should, because I think it’s gratifying.”

For anyone who feels a bit scared or unsure if they would be the right person for such a recognition, Luke Chrzanowski has this pearl of wisdom.

“You miss 100% of the shots you don’t take.”

Nominations for the 2024 NIBA Awards open soon!

Nominations for the 2024 NIBA Awards shall open shortly. If you’re considering nominating an outstanding broker or young broker, you can review the eligibility criteria at www.niba.com.au/niba-awards.

30 / INSURANCE ADVISER FEBRUARY 2024

ADVERTORIAL / HMIA

A DECADE OF EXPERTISE – SPECIALIST HEAVY MOTOR UNDERWRITING AGENCY HMIA TURNS 10!

Specialist heavy motor underwriting agency Heavy Motor Insurance Australia (HMIA) reflects on a decade servicing heavy motor fleet brokers and their clients.

T

he year 2024 marks a special milestone for heavy motor fleet insurance specialist underwriting agency HMIA. From humble beginnings in 2014 with a team of four, the specialist heavy motor underwriting agency is now over 30 staff strong and services more than 300 brokerages across Australia.

“Ten years is a long time, but I also cannot help but feel that it has gone by so quickly,” says CEO Michael Zaknic. “A lot has happened in that time, including some turbulent years during COVID, where the critical nature of heavy vehicle logistics was all the more punctuated.”

HMIA is one of the largest underwriting agencies specialising in heavy motor fleet insurance. A brand level mantra of “Putting Brokers in the Driver’s Seat” combined with a boutique product means the focus of the business is clear.

“One thing that has been a constant in our business is a relentless focus on what we excel at; and that is bringing smart, easy solutions to brokers in the heavy motor fleet space. This means, internally, our staff have a crystal-clear view of the vision and product understanding and how it can work to help solve problems for brokers and their customers. All that remains is working to deliver world-class service to support our brokers and their clients, whether it be when quoting, or at claim time when the rubber hits the road.”

A growing head count isn’t the only thing that has changed over the last decade. There has also been a focus on ensuring everyone

in the business has a clear line of sight of the business’s objectives, and more importantly, their role in getting there.

“What I am most proud of over the last 10 years is our people. It’s simply not possible to run a successful business if you don’t have the right staff, or the appropriate culture embedded to support your vision and goals.”

The business has taken a prudent approach to recruitment and selection to not only ensure that the right staff are attracted and employed, but also to maintain a flat structure where accountability and empowerment can thrive.

“Bringing to life our mantra of putting the broker in the driver’s seat requires a team that can think on the fly and support the broker not only with accuracy and completeness, but also in a timely manner.

Something we have worked very hard toward is simplification of unnecessary complexity in delegations. Rather, we empower our staff to make the decisions required to keep things moving, while providing a truly personalised service. We like to do things differently here, and this is a unique element of our offering I am most proud of.”

While celebrating the last decade, there is no sign of slowing down for the business, with strategic investment in three key pillars: geographic expansion, technology and people.

“2024 and beyond will see us continuing to build on our key strength; our people.

Mid-last year we also commenced a

technology-focused transformation project that will further improve our service by removing non-value-added work from the team. This change will help to free them up for growth, allowing us to focus on expanding our reach geographically.”

The business looks forward to interacting with existing and new brokers alike over the course of 2024.

“Expect to see more of us this year and into the future.”

To find out more about HMIA’s offering, go to www.HMIA.com.au, or scan the QR code.

Important Note

This document is intended for Insurance Intermediaries only. HMIA Pty Ltd (ABN 11 169 198 323, AR 462126) is an Authorised Representative of SGUAS Pty Ltd (ABN 15 096 726 895, AFSL 234437) and acts under a binding authority as agent for the insurer of the product, HDI Global Specialty SE – Australia (ABN 58 129 395 544 AFSL 458776). Terms, conditions, limits and exclusions apply to the product referred to above. Any advice that may be contained in this document is general advice only and does not take into account your client’s objectives‚ financial situation or needs. Before making a decision to purchase the product we recommend that your client consider whether it is appropriate for their circumstances and read the Product Disclosure Statement, Target Market Determination and Financial Services Guide, which can be obtained by contacting HMIA on 02 9227 8400 or visiting www.hmia.com.au.

NIBA.COM.AU / 31

FEATURE / Heavy Motor Insurance

ON THE

RIGHT ROAD After some significant challenges over recent years, the heavy vehicle sector is still tackling some lingering issues – while facing up to some new ones, too.

By MARTIN WANLESS

A

t the risk of delving straight in with a pun, the heavy vehicle sector is at something of a crossroads.

It was an industry that was greatly impacted by the pandemic, with demand, vehicle and part availability, and workforce all affected. Some of those issues still linger.

Add into the mix the seemingly inevitable transition to alternatively fuelled vehicles and rising costs due to inflation, and there’s plenty for brokers working with heavy vehicle and fleet clients to consider.

“It is certainly a dynamic environment at the moment, with several factors causing significant challenges simultaneously,” says Frances de Sanary, Senior Fleet Risk & Sustainability Engineer at Zurich Resilience Solutions.

“Many businesses are facing pre-COVID demand levels, while also dealing with driver shortages and supply chain challenges.”

Those supply chain challenges have seen repair jobs blow out considerably compared to pre-pandemic levels, which has a consequential impact on clients’ businesses.

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NIBA.COM.AU / 33

FEATURE / Heavy Motor Insurance

“A repair job that used to take one week is now stretching out to two or three weeks, if not longer, due to staff and part shortages, so our clients’ trucks are off the road for a longer period of time, which impacts their service delivery requirements,” says Loretta Hartley, Senior Account Manager at Cornerstone Risk Group.

Nick Dendrinos, Head of Motor at NTI, says rising costs, both in terms of repairs as well as people, merely compound this.

“The cost of labour, parts and ongoing supply chain challenges are key issues for customers and insurers alike,” he says.

“On average, the cost of labour and parts have jumped by around 20-30 per cent on internal combustion engine (ICE) vehicle configurations since COVID. “Operational costs such as fuel and vehicle maintenance remain high, and parts availability – albeit improving – is still challenging, especially across the more specialised vehicle configurations. The wait times and cost for repairs place more stress on operational costs.”

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THE PEOPLE CHALLENGE

Businesses across multiple sectors are grappling with people challenges. And, while the remote work situation many are dealing with isn’t an issue when it comes to heavy vehicle and fleet driving, another challenge – namely finding skilled workers in the first place – is proving problematic.

It was an issue that really came to a head during the pandemic, due to experienced staff retiring and international arrivals halted, and it continues to challenge the sector – having, of course, insurance repercussions.

Dendrinos says, “Driver risk has increased due to a number of factors, one of them being the skilled labour shortage. We’ve seen this gap reducing with the increase of migrant workers, but the industry is also faced with the reality of an existing ageing workforce.

It’s vital to recognise the importance of upskilling new workers and supporting and encouraging the next generation.”

Ensuring driver training comprises part of a risk management strategy is essential, says Hartley.

“DEPENDING ON OPERATION SIZE AND CAPABILITY, IT IS IMPORTANT THAT, TO SOME EXTENT, HEAVY TRANSPORT OPERATORS BEGIN LOOKING AT THEIR ALTERNATIVE FUEL JOURNEY.” – FRANCES DE SANARY, SENIOR FLEET RISK & SUSTAINABILITY ENGINEER AT ZURICH RESILIENCE SOLUTIONS

FEATURE / Heavy Motor Insurance

“Our clients really need to focus on making sure drivers are competent to complete the task rather than appropriately licensed. A well-trained driver with a proper risk management process in place should reduce the claims occurrence and costs, which will flow on to the rest of the business operations.”

A major benefit of that established broker-client relationship is that risk management aspect, and de Sanary says, “There is a greater requirement to understand each individual customer’s operation and their inherent exposures to these emerging risks.

“This increases reliance on risk engineering services to help customers mitigate these risks, for example, by facilitating driver training programs.”

Hartley says, “If a client has a well-run business with robust risk processes in place, then we can present a stronger case to the insurer when negotiating their renewal

terms. If we can show the insurers that the client is a good solid risk with processes in place, we are much more likely to obtain better terms from the market.”

PREPARING FOR NEXT-GEN

Electric vehicles (EVs) are a continual topic of discussion, with many eyes on Europe and the US to fully understand both the complexities of transition and the insurance implications.

“There is still a lot to unpack with EVs, and advances in technology are rapidly moving in this space, especially in light vehicles.

Heavy EV take-up remains slow but it is increasing in momentum,” says Dendrinos.

“Learning from some developed EV countries in Europe, they are experiencing up to 25-30 per cent higher claims repair costs than ICE vehicles, and a 10-15 per cent increase in parts delay availability.

“In this light, insurers generally might think more about pricing EVs as they

“THE COST OF LABOUR, PARTS AND ONGOING SUPPLY CHAIN CHALLENGES ARE KEY ISSUES FOR CUSTOMERS AND INSURERS ALIKE.” – NICK DENDRINOS, HEAD OF MOTOR AT NTI

CASE STUDY

ELECTRIC SCOOTER BLAZE HIGHLIGHTS NEED FOR FREIGHT COVER “I recently had a client’s B-double combination catch fire with a load of electric scooters containing lithium batteries on board. The client had no hope of controlling the blaze as it was all burnt to the ground in a very short period. It’s important to ensure our clients have adequate freight insurance in place as we’re going to see more of these lithium batteries on board our trucks.

Thermal runaway is an increasing problem for transport operators and also the towing and recovery industry as they are required to clean up and provide recovery for these accidents as well.”

Cornerstone Risk Group’s Loretta Hartley shares a recent claims example that highlights the need for adequate freight insurance.

NIBA.COM.AU / 35

FEATURE / Heavy Motor Insurance

become a greater share of portfolios – taking into consideration the higher costs of repairs, parts, and how this might impact insurance cost.”

While it may be a daunting task, de Sanary says it’s important for operators to begin considering how that transition may happen.

“Depending on operation size and capability, it is important that, to some extent, heavy transport operators begin looking at their alternative fuel journey,” he says.

Hartley says she expects to see a lot of movement in the next 18 to 24 months with EVs in the heavy motor space.

“We’re only just seeing what EVs can do for light vehicles, so heavy motor is really where the growth will happen.

“The CBD or local truck operators with trucks on the smaller scale are already implementing EVs with great success.

However, EV manufacturers are currently fine-tuning their offerings to be able to service customers who operate long-haul trucks – this is an exciting time for the transport industry as it will really shake it up and reinvent the industry to a degree.”

NEW SAFETY REQUIREMENTS INTRODUCED FOR HEAVY VEHICLES IN AUSTRALIA The use of technology in heavy vehicles is rapidly increasing, and there will be significant changes to the Australian Design Rules (ADRs) this year that will require new vehicles to be fitted with the latest technology.

On announcing its plans last year, the Australian Government said: “The additional safety measures introduced through the Safer Freight Vehicles package include increasing the overall width limit for new trucks that are fitted with a number of safety features.

“The new safety features include devices to reduce blind spots, electronic stability control, advanced emergency braking, a lane departure warning system, better reflective markings and side guards to stop pedestrians and cyclists from being caught under the rear wheels of trucks.”

36 / INSURANCE ADVISER FEBRUARY 2024

Driving fleets further.

Helping brokers and clients to optimise their fleet. ●

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Local empowered underwriters make it easy to tailor a solution, with all vehicle types on one policy.

Risk management advice through Zurich Resilience Solutions that can help to improve risk and driver safety.

A Priority Repair Service to get sedans and light commercial vehicles back on the road faster.

Contact your local Zurich motor underwriter today.

Meet tomorrow prepared.

Information is general advice only and does not take into account your objectives, financial situations or needs. Obtain and consider the relevant Product Disclosure Statement and Policy Wording (as applicable) available from your broker or at zurich.com.au before making a decision.

Target market determinations are available from your broker, at zurich.com.au/GI-TMDs or by calling us on 132 687. Insurance issued by Zurich Australian Insurance Limited ABN 13 000 296 640, AFSL 23250.

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FEATURE / Professional Indemnity Insurance

38 / INSURANCE ADVISER FEBRUARY 2024

FEATURE / Professional Indemnity Insurance

WAITING GAME The flow-on effects of inflation may not have been fully felt by the professional indemnity (PI) market, meaning timely and detailed renewal preparation is key.

By MARTIN WANLESS

O

ver recent years, the PI market has seen rates increasing at – for some professions at least – a seeming rate of knots. Certain professions, particularly those related to construction, have been challenging for clients, brokers, underwriters and insurers alike, while cyber risk has added further complexity.

Throw the current economic climate into the mix, and PI is still a somewhat volatile area of insurance to be navigated – although new capacity coming into the market is easing some pressure.

Todd Woodard, Head of Underwriting for Professional and Financial Risks for Asia Pacific at Liberty Specialty Markets, says, “I don’t think we have seen all of the flow-on effects of inflation, nor has it been fully contemplated by the market.

In the next 12 to 18 months, the impact of inflation on claims might surprise some participants.

“While many think that the US has achieved the near-impossible soft landing, global economic and political risks are still elevated, and recessions lead to claims. Like musical chairs, it’s only an issue if the music stops and you’re left standing.”

Market stability and the consequential impact on claims that recession can have is something that’s on the mind of Tony Wheatley, CEO of Berkley Insurance Australia, too, who also underlines the importance of separating out D&O price increases when thinking about PI. “The primary issue in the PI market currently is stability, while separating what is happening in the large corporate D&O market from the day-to-day PI market is important.

“A lot has been written about the substantial increases in D&O pricing in Australia and the world during the COVID period, and the same amount of attention has been given to the more recent reductions in pricing.

“This level of volatility creates a huge amount of uncertainty for insureds. The issue we see is that this sentiment is extending to other parts of the PI market that have not seen such wild fluctuations and that is putting downward pressure at a time when costs are increasing at an unprecedented rate.”

Good news, however, comes in the form of increased capacity, which, says NIBA.COM.AU / 39

FEATURE / Professional Indemnity Insurance

Christian Garling, CEO of FTA Insurance, is seeing supply return to ‘normal’ levels.

“Lloyd’s have loosened the reins on the annual GWP a syndicate can write, so this increases supply and thus prices ease,” he says.

“Insureds in vanilla professions can now expect premium increases in line with fee/ turnover increases while those insureds with higher exposures can at least obtain terms now.”

BUILDING CONSTRUCTION CONCERNS

Construction is one area of PI that has been the standout in terms of ‘problematic professions’ and that continues to be the case, with rising insolvency and the associated financial pressures causing concern.

Wheatley says: “In NSW, substantial concerns have been raised about the poor standards of construction being unearthed by the NSW Building Commission investigations – that should concern most insurers.

“We have started to assess the financial statements of any building and construction-related risks and have taken a harder line on those that are showing poor financial results or have been under-declaring revenues.

“On more than one occasion, risks we have declined due to poor financials have been placed in receivership within 12 months. While that may not necessarily

THE EVOLVING CONSTRUCTION RISK Todd Woodard says: “Regulation and the case law around it is continuing to evolve and impact construction clients.”

A recent example is The Owners – Strata Plan No 84674 v Pafburn Pty Ltd, where a claim for breach of the duty of care imposed by s37 of the Design and Building Practitioners Act 2020 was found to not be an apportionable claim within the meaning of Part 4 of the Civil Liability Act 2002.

“The finding is contrary to previous decisions and highlights some of the uncertainty and risk facing construction clients.”

40 / INSURANCE ADVISER FEBRUARY 2024

NIBA is proud to present a first-of-its-kind initiative to promote insurance broking as a career of choice, Insure Your Future.

The aim of the initiative is to promote insurance broking as a career, attract more people into the profession and increase resources and information available about the profession.

Over the coming months, you will receive updates from NIBA’s dedicated Insure Your Future Committee on the project’s progress, with our website launching in early 2024.

Do you have ideas or thoughts on what we should include?

Have you seen something similar being done well elsewhere?

Or do you just want to find out more about the initiative and how you can get involved?

Please email info@insureyourfuture.com.au or contact your state NIBA Committee representative.

insureyourfuture.com.au

FEATURE / Professional Indemnity Insurance

result in PI claims, it does represent a significantly higher risk of issues arising, especially if you include management liability in those considerations.

“To obtain cover, construction companies need to be able to demonstrate a history of strong financial management.

This includes retaining capital in the business to support them in difficult times and pricing for margins that are more aligned with sustainable profits.”

Woodard says that the cover available for construction clients varies widely.

“Contractual covers for fitness for purpose and novated contracts are not always available but are also not requested as frequently as we would expect. While infrequent, we have seen pollution claims put clients into liquidation.

“The cover is often excluded, but policies are available without exclusion.

Sometimes clients focus solely on price when they should look more closely at their coverage. If clients prepare a detailed submission and send it well in advance of renewal, they may then find that all they need to do to obtain better cover is ask.”

42 / INSURANCE ADVISER FEBRUARY 2024

Woodard identifies anyone with touchpoints in construction as being at risk, “particularly where there are insolvencies – property-related risks continue to look vulnerable in this regard.” `Wheatley says, “The availability and inflationary impact on the cost of replacing flammable cladding claims is likely being underestimated and will have a flow-on effect to builders, architects, certifiers, and fire engineers.”

Outside of construction, Garling says cyber exposure is a source of risk.

“IT-managed service providers, cyber consultants or those with government contracts remain difficult to find markets for,” he says.

“This is due to the cyber exposure faced by these insureds and their clients.”

RENEWAL TIME

PI renewals are anything but straightforward, and getting in early with the right information is essential for brokers.

Garling says, “The first step is getting the proposal completed and also completed accurately.

“IN NSW, SUBSTANTIAL CONCERNS HAVE BEEN RAISED ABOUT THE POOR STANDARDS OF CONSTRUCTION BEING UNEARTHED BY THE NSW BUILDING COMMISSION INVESTIGATIONS – THAT SHOULD CONCERN MOST INSURERS.” – TONY WHEATLEY, CEO OF BERKLEY INSURANCE AUSTRALIA

QPIB demonstrates to my clients that I care about their risks as well as my selfdevelopment by staying aware, relevant and being able to deal with their risk issues as and when they arise in a fastpaced world.

CAMERON SHEILD

Strategic Risk Advisor, Lockton Australia National Chairman, Insure Your Future

Q P I B – A S TAT E M E N T OF PROFESSIONALISM

Apply online at niba.com.au or email NIBA Memberships Engagement Manager, Scott Raymond at sraymond@niba.com.au

FEATURE / Professional Indemnity Insurance

“CONTRACTUAL COVERS FOR FITNESS FOR PURPOSE AND NOVATED CONTRACTS ARE NOT ALWAYS AVAILABLE BUT ARE ALSO NOT REQUESTED AS FREQUENTLY AS WE WOULD EXPECT. WHILE INFREQUENT, WE HAVE SEEN POLLUTION CLAIMS PUT CLIENTS INTO LIQUIDATION.” – TODD WOODARD, HEAD OF UNDERWRITING FOR PROFESSIONAL AND FINANCIAL RISKS FOR ASIA PACIFIC AT LIBERTY SPECIALTY MARKETS

“Whether it is IT or construction, brokers need to review the proposal, make sure the questions are answered and answered correctly. We often see work splits that don’t add up to 100 per cent or add up to more than 100 per cent.

“In addition, largest contracts are not disclosed, or the insured discloses old contracts from many years ago, or doesn’t provide details of what the insured’s responsibilities are for those contracts.

“For builders, brokers often haven’t come to terms with whether the insured is responsible for design or not. This makes a significant price difference. Without a properly completed proposal form, underwriters can’t quote accurately, meaning the broker isn’t getting the right premium for their client. It can also lead to issues with claim acceptance if the information disclosed is inaccurate and misleading.”

Wheatley says that the lessons learnt – and actions taken – from past claims also strengthens a proposal.

“Brokers should put together a good case for what they have learned from the claim, what they have done to mitigate the loss and what changes they implemented to the business to reduce the likelihood of a claim occurring again,” he shares.

“Providing a detailed explanation of these actions reassures not only that the potential for future issues is reduced, but also shows a proactive attitude to risk management.

This level of diligence goes a long way when insurers are looking at renewal.”

FORWARD OUTLOOK

Looking ahead, are we likely to see more PI volatility or will the market continue to settle? Woodard believes it’s a bit from column A, a bit from column B. “The next couple years look bumpy and uncertain, but the market will be more stable than it has been,” he says.

Wheatley says that we should see 2024 follow a similar pattern to 2023, albeit with claims from the economic downturn coming through. Data, however, should help insurers more than ever.

“The market is anticipated to follow similar trends to those of 2023, with some new capacity entering to stabilise rate increases,” he says.

“We expect the impact of inflation on claims reserves to become more prevalent as claims arising from the economic downturn start to flow through. I think the insurance industry is in a better place with more available and reliable data than ever before. Insurers who have good databases will continue to thrive and offer competitive products in areas where they can identify good returns.

“New markets often have a tougher time of this and are, to a degree, relying on market sentiment rather than making data-driven decisions.”

RENEWAL TIPS FOR BROKERS • Begin preparations early.

• Double-check work splits.

• Ensure larger contracts are disclosed.

• For builders, make sure that design responsibility is disclosed.

• An overview of what action has been taken after previous claims is beneficial.

44 / INSURANCE ADVISER FEBRUARY 2024

INSURANCE BROKERS

CODE OF PRACTICE NIBA launched the 2022 Insurance Brokers Code of Practice on 1 March 2022, and it came into effect on 1 November 2022. It is important that all members have implemented the necessary policies and procedures to comply with their new Code obligations. A number of resources are available on the NIBA website to assist members in implementing the Code.

For a copy of the Code, visit niba.com.au/code S&P GLOBAL RATINGS

*For the S&P Global Insurer Financial Strength Ratings Definitions visit: https://www.niba.com.au/resource/standardandpoors.pdf

Copyright © 2023 S&P. This material is reproduced with the permission of S&P. Reproduction of this the S&P Information in any form is prohibited without S&P’s prior written permission. Neither S&P, its affi liates 25/7/2022 1:40 pm nor any of their third-party licensors: (a) guarantee the accuracy, completeness or availability of the S&P information, or (b) make any warranty, express or implied, as to the results to be obtained by Insurer Financial Strength Ratings or any other person from the use of the S&P information or any other data or information included therein or derived therefrom, or (c) make any express or implied warranties, including any warranty of merchantability or fitness for a particular purpose or use, or (d) shall in any way be liable to Insurer Financial Strength Ratings or any recipient of the S&P information for any inaccuracies, errors, or omissions, regardless of cause, in the S&P information or for any damages, whether direct or indirect or consequential, punitive or exemplary resulting therefrom.

IA0722p58-60 Events Pictorial.indd 59

For a copy of the Code, visit niba.com.au/code

Ratings are statements of opinion, not statements of fact or recommendations to buy, hold, or sell any securities. S&P Global (Australia) Pty. Ltd. holds Australian financial services licence number 337565 under the Corporations Act 2001. S&P Global credit ratings and related research are not intended for and must not be distributed to any person in Australia other than a wholesale client (as defined in Chapter 7 of the Corporations Act). Ratings are based on information received by Ratings Services. Other divisions of S&P Global may have information that is not available to Ratings Services.

NIBA / Events

NIBA Tasmania Member Update and Networking Function Towards the end of 2023, NIBA CEO, Philip Kewin, Vice President Nicholas Cook, and representatives from the Vic/Tas Committee gathered with Tasmania members for an exclusive evening of celebration and networking. During the event, NIBA's executive team shared valuable insights into the strategic priorities for 2024.

46 / INSURANCE ADVISER FEBRUARY 2024

NIBA / Events

48 / INSURANCE ADVISER FEBRUARY 2024

COMMUNITY HUB

COMMUNITY HUB FEBRUARY 2024

The COMMUNITY HUB is your space to showcase your products and services to a specialist audience.

INDEX QPIB..................................................................................................................49 Affinity Insurance Brokers.......................................................................50 Newline Group.............................................................................................50 Moran Insurance Brokers.......................................................................... 51 MGA Insurance Group............................................................................... 51

Australasia Underwriting......................................................................... 52 Wellington Underwriting......................................................................... 52 QPIB.................................................................................................................. 52 NIBA Advertising......................................................................................... 53

WANT TO ADVERTISE IN THE INSURANCE ADVISER? If you’re a NIBA member with a product or scheme you’d like to promote to a broker audience in our Community Hub section, please contact Tony May E: tmay@niba.com.au

I am proud of my QPIB qualification and the lifetime of learning that it represents and strongly recommend it to all my insurance broking colleagues.

GARY SEYMOUR

Chairman, Edgewise Insurance Brokers Lex McKeown Trophy Recipient 2023

Q P I B – A S TAT E M E N T O F P R O F E S S I O N A L I S M

Apply online at niba.com.au or email NIBA Memberships Engagement Manager, Scott Raymond at sraymond@niba.com.au

NIBA.COM.AU / 49

SPECIALISTS IN EQUINE LIABILITY

COMMUNITY HUB

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1300 130 535 www.affinityib.com.au Affinity Insurance Brokers is an Authorised Representative (No 1288354) of Aon Risk Services Australia Limited AFSL 241141

Untitled-3 1

24/6/2022 12:24 pm

At Newline Australia, we underwrite:

Life Science, Clinical Trials, Public & Products Liability insurance, Professional Indemnity (PI) insurance, Financial Institutions insurance, Directors & Officers insurance and Crime insurance

Key Liability Occupations:

Key PI Occupations:

Key FI Occupations:

• Alternative & Complementary medicines • Automotive • Biotechnology • Clinical Trials / Research • Cosmeceuticals / Nutraceuticals • Defence – machinery, weaponry & protective equipment • Life Science / Pharmaceuticals • Medical & Surgical Devices (including invasive implants) • Medical Equipment / Products • Medicinal Cannabis • Mining • Rail – Products, Maintenance, Locomotive Engineering, operators, Rolling Stocks & Engine Manufacturers • Universities • Veterinary Medicines

• Accountants • Architects • Engineers • Environmental Consultants • Insurance Brokers / Underwriting Agencies • Law Firms • Management Consultants • Miscellaneous Risks • Real Estate Agents • Universities • Valuers

• Fund Managers/Investment Managers • Stock Brokers • Managed Investment Schemes • Excess lines for Financial Planners

Will Clarke

Stephen Mullaly

Linda Sepala

Head of Liability

Head of Professional Indemnity

Head of Financial Lines

Mobile: 0477 222 534 Phone: 03 9912 4021 Email: wclarke@newlinegroup.com.au

Mobile: 0400 051 712 Phone: 03 9912 4017 Email: smullaly@newlinegroup.com.au

Mobile: 0499 504 185 Phone: 03 9912 4010 Email: lsepala@newlinegroup.com.au

Key D&O • Insured firms can be not-for-profit, privately held or publicly traded • Side A/DIC placements • Medicinal Cannabis risks • All industry sectors, both commercial and financial, are underwritten

Key Crime Commercial Crime Insurance is also offered alongside other Financial Lines products

Newline Australia Insurance Pty Ltd ABN 81 118 089 651 ADVISER FEBRUARY 2024 PH: 03 9999 1901 newlinegroup.com.au quotes@newlinegroup.com.auNIBA.COM.AU / 43 PO 50 Box/ INSURANCE 16208 Collins St West VIC 8007 Newline Australia Insurance Pty Ltd is wholly owned by Newline Underwriting Management Ltd and 100% secured by Newline Syndicate 1218 at Lloyd’s (NWL1218)

COMMUNITY HUB

NIBA.COM.AU / 51

COMMUNITY HUB

The difficult The The Thedifficult difficult difficult made easy made easy made madeeasy easy

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Target Property Risks Liability Risks •Target Asbestos RemovalRisks / Risks Demolition / Target Property Property Risks Risks Target Target Liability Liability •Target Distressed or Difficult Target Property Risks

Contractors • Vacant Properties incl Heritage •• Earthmoving Asbestos Removal • Distressed ororDifficult Occupations Asbestos • Asbestos Removal Removal / /Demolition /Demolition Demolition / // • Distressed • Distressed or Difficult Difficult Occupations Occupations • Abattoirs / Seafood Processing / Target Propertyincl Risks Target Liability Risks listed properties.

Earthmoving Contractors • Vacant Properties Heritage Earthmoving Earthmoving Contractors Contractors • Vacant • Vacant Properties Properties incl incl Heritage Heritage & Beverage •• EPS Risks / or Food & Beverage ••• Food Asbestos Removal / Demolition / / // Abattoirs Seafood Processing Distressed Difficult Occupations listed properties.

Abattoirs • Abattoirs //Seafood / Seafood Processing Processing listed listed properties. properties.

• Civil Engineers & Construction Manufacture / Distribution Earthmoving Contractors • Vacant Properties incl Heritage Food & Beverage Beverage Food Food & & Beverage • EPS Risks / Food & Beverage • EPS • EPS Risks Risks / Food / Food & Beverage & Beverage (+10m t/o) • Remote & Timber Pubs / Wineries / •• Abattoirs / Seafood / listed properties.

Civil Engineers Construction Civil • Civil Engineers Engineers &&Construction &Processing Construction Manufacture / Distribution Manufacture Manufacture / Distribution / Distribution • Plumbing & Electrical Contracting Food & Beverage •• Distilleries EPS Risks / Food & Beverage (+10m (+10m t/o) t/o) (+10m t/o) • Remote Remote Timber & Timber Pubs Pubs Wineries / Wineries • Remote && Timber Pubs / /Wineries // / • Plastics / Timber Manufacturing • Service to Mining Industry • Civil Engineers & Construction Manufacture / Distribution Distilleries Distilleries storage – Chemicals, Plumbing • Plumbing &&Electrical &Electrical Electrical Contracting Contracting Plumbing Contracting Distilleries •• High-hazard •• Welding & Fabrication (+10m t/o) Remote & Timber Pubs / Wineries / • Plastics • Tyres Plastics / Timber / Timber Manufacturing Manufacturing Service • Service to to Mining Mining Industry Industry Service to Industry • Plastics / Timber Manufacturing •••• Chemicals Fertiliser Distilleries Plumbing &&Mining Electrical Contracting • High-hazard High-hazard storage storage Chemicals, – Chemicals, Welding • Welding &&Fabrication & Fabrication ••• North – Manufacturing Traditional & •••• Railside exposure Welding Fabrication • High-hazard storage – –Chemicals, PlasticsAustralia / Timber Service to Mining Industry Tyres Tyres Chemicals • Chemicals &&Fertiliser &Fertiliser Fertiliser •••• Waste && Recycling Chemicals Tyres • Parametric High-hazardoptions storage – Chemicals, Welding Fabrication • North • North Australia Australia – Traditional – Traditional & & • Railside • Railside exposure exposure • Waste & Recycling Railside exposure • North Australia – Traditional & Tyres •• Chemicals & Fertiliser •• Renewable Energy Storage && Parametric Parametric options options Waste • Waste &exposure & Recycling North Australia – Traditional ••• Railside Waste &Recycling Recycling Parametric options • Waste • Production Waste & Recycling & Recycling Parametric options • Waste & Recycling • Waste &/Recycling ••• CAR Erection All Risks (+10M) • Renewable Renewable Energy Energy Storage Storage && Waste &Energy Recycling • Renewable Storage & Production ProductionEnergy Storage & • Renewable Production • CAR / Erection AllAll Risks (+10M) • Production CAR / Erection Risks (+10M) • CAR / Erection Risks (+10M)today on 1300 988 643 or visit our website: Contact ourAllunderwriters • CAR / Erection All Risks (+10M)

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Wellington Underwriting Agencies specialise in labour hire/recruitment, complex liability risks and niche property solutions.

Labour Force includes Broadform Liability, Professional Indemnity and Management Liability and has been developed for: • labour hire companies • recruitment companies • group training and registered training organisations Our Combined General Liability wording has been tailored for complex risks including: • construction • manufacturing • rail • resource sector; and • other hard to underwrite risks Wellington’s Property capabilities are focussed on niche exposures including: • catastrophe-exposed properties • mining sector

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My QPIB designation showcases my commitment to professional excellence and continuous learning, adding to my credibility as a trusted advisor.

TAY L O R B U R S T O W Young Broker of the Year 2023

Q P I B – A S TAT E M E N T O F P R O F E S S I O N A L I S M

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COMMUNITY HUB AUGUST 2023

Reimagine: Think Differently

REGIS TER YOUR PLAC

TODA E JUNE 202 3Y

AT THE 2023 NIBA Neet the st M CONVENTIO ate fi ly:

the 2023 You nalists of ng Broker of the Year aw ards

Thin k Different t About Attracting Talen er About the Role of a BrokTHE FUT

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Features:

RECAPPING NIBA GALA LUNCHES

FINANCIAL CLIMATE HITS SUPPLY CHAIN

Advertise with the most influential and trusted voice in the Australian intermediated insurance Industry - NIBA

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COMMUNICAT Also CHANGING OF THE GUA ION’ THE MIC IS YOU S NEVER BEEN SO IMPO RD Energy Insurance RTANT Profession 2:19 PM RS Patrick8/8/23 Tiernan, al IA0823p01 Cover.indd

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Who we are

Our print and online publications are the official source for industry news, events and information for members of the National Insurance Brokers Association (NIBA).

Who we reach

Our publications reach four core audiences: insurance brokers, senior executives at major insurers, underwriters and financial services professionals and loss assessors.

What we do for your brand

Through integrated packaging we set your brand apart from the rest. We break through the clutter to provide you with prime positioning and special advertising opportunities, placing you directly in front of NIBA members. THIS IS NIBA

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INSURER STRENGTH RATINGS

BEST’S

NEW ZEALAND

FINANCIAL STRENGTH RATINGS

The following is a list of AM Best Financial Strength Ratings (FSRs) assigned to insurance companies in Australia and New Zealand.

Ratings as at 18 January 2024.

Contact: Mr. Rob Curtis Co-CEO & Managing Director A. M. Best Asia-Pacific (Singapore) Pte Ltd. Tel: +65 9633 6118 Email: rob.curtis@ambest.com

AUSTRALIA

RATING

LIFE, ANNUITY AND ACCIDENT General Reinsurance Life Australia Ltd.

A++/STABLE

PROPERTY/CASUALTY

RATING

COMPOSITE Quest Insurance Group Limited

B/STABLE

LIFE, ANNUITY AND ACCIDENT American Income Life Insurance Company (New Zealand Branch)

A/STABLE

Chubb Life Insurance New Zealand Limited

A/STABLE

Co-operative Life Limited

B++/STABLE

DPL Insurance Limited

B++/STABLE

Fidelity Life Assurance Company Limited

A-/STABLE

Foundation Life (NZ) Limited

A-/STABLE

General Reinsurance Life Australia Limited (New Zealand Branch)

A++/STABLE

Momentum Life Limited

B++/STABLE

Ansvar Insurance Limited

A-/STABLE

Partners Life Limited

A/STABLE

First American Title Insurance Company of Australia Pty Limited

A/STABLE

Pinnacle Life Limited

B+/STABLE

General Reinsurance Australia Ltd

A++/STABLE

PROPERTY/CASUALTY

Guild Insurance Limited

A-/STABLE

Accuro Health Insurance Society Limited

B u/DEVELOPING*

Pacific International Insurance Pty Limited

B++/STABLE

A+/STABLE

The Hollard Insurance Company Pty Ltd

A-/STABLE

Aioi Nissay Dowa Insurance Company, Limited (New Zealand Branch)

The New India Assurance Company Limited (Australia Branch)

Beneficial Insurance Limited

B++/STABLE

B++/STABLE

First American Title Insurance Company of Australia Pty Limited (New Zealand Branch)

A/STABLE

FMG Insurance Limited

A/STABLE

General Reinsurance Australia Ltd (New Zealand Branch)

A++/STABLE

Mitsui Sumitomo Insurance Company Limited (New Zealand Branch)

A+/STABLE

New Zealand Medical Indemnity Insurance Limited

B+/STABLE

Pacific International Insurance Pty Ltd (New Zealand Branch)

B++/STABLE

Police Health Plan Limited

A-/STABLE

Provident Insurance Corporation Limited

B/POSITIVE

Rating Disclosure: Use and Limitations: A Best’s Credit Rating (BCR) is a forward-looking independent and objective opinion regarding an insurer’s, issuer’s, or financial obligation’s relative creditworthiness. The opinion represents a comprehensive analysis consisting of a quantitative and qualitative evaluation of balance sheet strength, operating performance and business profile or, where appropriate, the specific nature and details of a security. Because a BCR is a forward-looking opinion as of the date it is released, it cannot be considered as a fact or guarantee of future credit quality and therefore cannot be described as accurate or inaccurate. A BCR is a relative measure of risk that implies credit quality and is assigned using a scale with a defined population of categories and notches. Entities or obligations assigned the same BCR symbol developed using the same scale, should not be viewed as completely identical in terms of credit quality. Alternatively, they are alike in category (or notches within a category), but given there is a prescribed progression of categories (and notches) used in assigning the ratings of a much larger population of entities or obligations, the categories (notches) cannot mirror the precise subtleties of risk that are inherent within similarly rated entities or obligations. While a BCR reflects the opinion of A.M. Best Rating Services, Inc. (AMBRS) of relative creditworthiness, it is not an indicator or predictor of defined impairment or default probability with respect to any specific insurer, issuer, or financial obligation. A BCR is not investment advice, nor should it be construed as a consulting or advisory service, as such; it is not intended to be utilised as a recommendation to purchase, hold or terminate any insurance policy, contract, security, or any other financial obligation, nor does it address the suitability of any particular policy or contract for a specific purpose or purchaser. Users of a BCR should not rely on it in making any investment decision; however, if used, the BCR must be considered as only one factor. Users must make their own evaluation of each investment decision. A BCR opinion is provided on an “as is” basis without any expressed or implied warranty. In addition, a BCR may be changed, suspended, or withdrawn at any time for any reason at the sole discretion of AMBRS. *Denotes FSR is under review with developing implications.

54 / INSURANCE ADVISER FEBRUARY 2024

The Hollard Insurance Company Pty Ltd (New Zealand Branch) A-/STABLE The New India Assurance Company Limited (New Zealand Branch)

B++/STABLE

Tokio Marine & Nichido Fire Insurance Company Limited (New Zealand Branch)

A++/STABLE

Tower Limited

A-/STABLE

Union Medical Benefits Society Limited

A/STABLE

Veterinary Professional Insurance Society Incorporated

B/STABLE

Virginia Surety Company, Inc. (New Zealand Branch)

A+/STABLE

S&P GLOBAL

AUSTRALIA

INSURER FINANCIAL STRENGTH RATINGS

The following is a list of S&P Global Ratings insurer financial strength ratings assigned to insurance companies in Australia and New Zealand. Ratings as at 19 January 2024.

Contact: Craig Bennett, S&P Global Ratings, 03 9631 2197

NEW ZEALAND

RATING

NON-LIFE INSURERS AA Insurance Ltd.

AA-/STABLE

RATING

NON-LIFE INSURERS AAI Ltd.

AA-/STABLE

Achmea Schadeverzekeringen N.V.

A/STABLE

AIG Australia Limited

A/STABLE

Allianz Australia Insurance Ltd.

AA-/STABLE

Allied World Assurance Co. Ltd.

A/STABLE

Berkshire Hathaway Specialty Insurance Company

AA+/STABLE

BHP Marine & General Insurances Pty Ltd.

A-/STABLE

Chubb Insurance Australia Ltd.

AA-/STABLE

Factory Mutual Insurance Company

A+/POSITIVE

Great Lakes Insurance S.E (Australia Branch)

AA-/POSITIVE

The Hollard Insurance Co. Pty Ltd.

A/STABLE

Insurance Australia Ltd.

AA/STABLE

Liberty Mutual Insurance Company Limited

A/NEGATIVE

Mitsui Sumitomo Insurance Company Limited

A+/STABLE

NorthStandard Ltd.

A/STABLE

QBE Insurance (Australia) Ltd.

A+/STABLE

AIG Insurance New Zealand Ltd.

A/STABLE

Aioi Nissay Dowa Insurance Co., Ltd

A+/STABLE

Allianz Australia Insurance Limited

AA-/STABLE

QBE Insurance (International) Ltd.

A+/STABLE

Berkshire Hathaway Specialty Insurance Company

AA+/STABLE

Society of Lloyd’s

AA-/STABLE

AA-/STABLE

Sompo Japan Insurance Inc.

A+/STABLE

Southern Cross Benefits Limited

A/STABLE

Tokio Marine & Nichido Fire Insurance Co., Ltd.

A+/STABLE

XL Insurance Company SE

AA-/STABLE

Zurich Australian Insurance Ltd.

AA-/STABLE

Chubb Insurance New Zealand Ltd. Factory Mutual Insurance Company

A+/POSITIVE

Great Lakes Insurance SE

AA-/POSITIVE

Hannover Life Re of Australasia Ltd.

AA-/STABLE

IAG New Zealand Ltd.

AA-/STABLE

Medical Insurance Society Ltd.

A/STABLE

Arch Lenders Mortgage Indemnity Ltd.

A/STABLE

Mitsui Sumitomo Insurance Co. Ltd (New Zealand Branch)

A+/STABLE

Helia Insurance Pty Ltd.

A/STABLE

NorthStandard Ltd.

A/STABLE

QBE Lenders' Mortgage Insurance Ltd.

A+/STABLE

QBE Insurance (Australia) Ltd.

A+/STABLE

LIFE INSURERS

Society of Lloyd’s

AA-/STABLE

AIA Australia Ltd.

A+/STABLE

Southern Cross Benefits Ltd.

A/STABLE

Challenger Life Company Ltd.

A/STABLE

MetLife Insurance Ltd.

A+/STABLE

Southern Cross Pet Insurance Ltd.

A/STABLE

Teleco Insurance (NZ) Ltd.

BBB+/STABLE

Tokio Marine & Nichido Fire Insurance Co. Ltd. (New Zealand Branch) A+/STABLE

LENDERS MORTGAGE INSURERS

REINSURERS Aspen Insurance UK Ltd.

A-/STABLE

Berkley Insurance Company

A+/STABLE

General Reinsurance Australia Ltd.

AA+/STABLE

Vero Insurance New Zealand Ltd.

AA-/STABLE

Vero Liability Insurance Ltd.

AA-/STABLE

General Reinsurance Life Australia Ltd.

AA+/STABLE

Zurich Australian Insurance Ltd.

AA-/STABLE

Hannover Life Re of Australasia Ltd.

AA-/STABLE

Hannover Rück SE

AA-/STABLE

HDI Global SE

A+/STABLE

HDI Global Specialty SE

A+/STABLE

HEALTH INSURERS NIB NZ Ltd.

A-/STABLE

Southern Cross Medical Care Society

A+/STABLE

LENDERS MORTGAGE INSURERS Helia Insurance Pty Ltd. (New Zealand Branch)

A/STABLE

QBE Lenders’ Mortgage Insurance Ltd.

A+/STABLE

LIFE INSURERS Asteron Life Ltd.

AA-/STABLE

Medical Life Assurance Society Ltd.

A/STABLE

NIB NZ Insurance Ltd.

A-/STABLE

REINSURERS HDI Global Specialty SE

A+/STABLE

Munchener Ruckversicherungs-Gesellschaft (Munich Reinsurance Co) AA-/POSITIVE Munich Reinsurance Co. of Australasia Ltd.

AA-/POSITIVE

Pacific Life Re (Australia) Pty Ltd

AA-/STABLE

QBE Blue Ocean Re Ltd.

A+/STABLE

RenaissanceRe Europe AG

A+/STABLE

RGA Reinsurance Co. of Australia Ltd.

AA-/STABLE

SCOR Global Life Australia Pty Ltd.

A+/STABLE

SCOR Reinsurance Asia Pacific Pte Ltd.

A+/STABLE

Swiss Re Asia Pte. Ltd., (Australia Branch)

AA-/STABLE

Swiss Re International SE

AA-/STABLE

Swiss Re Life & Health Australia Ltd.

AA-/STABLE

Transatlantic Reinsurance Company

AA+/STABLE

* See page 45 for S&P Global disclaimers and additional information

NIBA.COM.AU / 55