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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
Communications Manager
Wendy Martin
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.
the 2023 NIBA Convention
Vero is proud to have received the Gold Mansfield award for claims excellence 3 years in a row.
Receiving this in a year marked by unfortunate weather events, is a great reflection on our team’s responsiveness and the adaptable claims experience they provide.
It is great recognition of the focus and dedication Vero has on delivering claims excellence. But most importantly, on the support we are providing Brokers and their clients during the moments they need us most.
Our claims support includes:
• Dedicated locally based claims officers
• The ability to rapidly scale for Event response
• Online lodgement and Vero OneTouch* claims
All designed so you can feel confident in recommending Vero to your valued clients.
We would like to thank our broker partners for their feedback, and we look forward to continuing to support businesses together.
Looking ahead, we encourage everyone to submit their nominations for the 2023 Mansfield Awards, which are open until 30 June.
vero.com.au /broker/claims
claim
We are now in the middle of the busy June renewal period. The many brokers I talk to are looking forward to the challenge, but they are also preparing for some di cult conversations. Like every expense, the cost of insurance is not going down, and the pressures of increasing interest rates, power bills and day-to-day essentials are starting to bite on the average consumer and business owners. The value proposition of the broker is paramount.
In this month’s Insurance Adviser, Patrick Tiernan, Chief of Markets at Lloyd’s of London, shares his views on the challenges and opportunities presented by cyber, acknowledging that our industry is yet to be tested by a truly major event. Patrick also acknowledges the important role of technology, but at the same time, reinforces the value of relationships and the fact that at the end of the day, this is still a relationship business.
The value of building strong relationships is highlighted in our feature on professional indemnity insurance, in which we explore the complexities of an ever-evolving market where clients no longer fit into one occupation code, and the evolving risk of cyber-attack highlights the need for brokers to recommend stand-alone cyber policies on top of existing cyber endorsements.
Meanwhile, in our energy insurance feature, we explore the change in risk profile between traditional energy production and renewable assets whereby renewable assets have significantly more exposure than their traditional counterparts due to extreme weather exposure, remote locations, and challenging topography. Australia, while behind many other developed nations, is starting to embrace the move to alternative energy sources and the role of the broker is highlighted here in the need to be proactive in identifying the emerging risks in the energy sector.
Communication, networking, engagement and education are key factors to assist brokers to understand the myriad of challenges and the solutions available. This was no more evident than our recent NIBA/UAC Expo in Melbourne, where there were 116 exhibitors and over 500 registered brokers, making the most of the opportunity to have meaningful conversations with underwriters and key decision makers who will play an important role in the successful placement of business. This is extremely important and well exemplified in the fact that many underwriters send their key people to ensure there is a valuable knowledge exchange. The next opportunity will be
Brisbane on 19th July, where like in Melbourne, the NIBA/ UAC Expo will be held in conjunction with the YP Breakfast and NIBA Gala Lunch.
By the time this issue hits your desk, we should have seen the Government’s response to the Quality of Advice review, and hopefully, there will be no surprises. The latest AFCA data, while recording a significant increase in complaints about general insurance, still shows a minimal number of complaints in relation to brokers. And those complaints that do progress, are primarily settled in favour of the broker. While this is no reason to be complacent, it still indicates that brokers are doing the right thing, and our research shows clients are better o as a result of the expertise of a broker.
So, as we enter the busy renewal season, those clients with a broker in their corner will be able to navigate the many challenges being faced.
PHILIP KEWIN Chief Executive Officer, NIBA
A simpler broker experience. That’s what you can expect from CGU Workers’ Compensation. You’ll deal with our specialised team end-to-end, across all functions including underwriting and claims. With reduced touchpoints, our process is less complex so together we can reach efficient outcomes for you and your clients.
To chat about Workers’ Compensation for your clients, contact your Broker Relationship Partner.
Members share why NIBA is important to them, and how their involvement has enabled them to support the broking industry.
“As we move into increasingly complex economies and environments, both locally and globally, the voice of industry has never been more important.
For our industry, NIBA is that voice. Championing reform, legislation, advocacy, learning and professional development. All the elements that support our community and help us to grow as we navigate uncertainty – li ing standards of quality counsel and service we can provide for clients.
Having been involved with NIBA directly via various state committees and awards for over a decade, I can vouch that this is a community that strives to better position our industry for the future. An industry I am proud to be a part of, and proud to be supported by NIBA, its cause, and its members.”
ADAM HINES, ANZIIF (SNR ASSOC), CIP, QPIB Director, Aether Insurance & Risk Pty Ltd
NIBA is the one voice for insurance brokers in Australia, representing their interests and promoting high standards of professionalism and competence.
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.
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.
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.
Whatever your age, or level of experience, NIBA has brokers’ best interests at the core of everything we do. Find out what we can do to help benefit your business and your team at niba.com.au/membership
Lisa’s Kangaroo Retreat rescues, rehabilitates and releases wildlife, including injured and orphaned joeys, kangaroos, wallabies and possums in the Port Headland region of Western Australia.
assist with funds from our annual Small Grants Program.
NIBA stages a variety of educational and social events across Australia for the whole intermediated insurance community.
niba.com.au/
2023 NIBA NSW GALA LUNCH
WHERE: The Fullerton Hotel, Sydney
WHEN: Wednesday 12 July 2023
Enjoy a two-course plated lunch, live entertainment, and an opportunity to connect with industry peers at the 2023 NIBA NSW Gala Lunch, held at the prestigious Fullerton Hotel Sydney. The event highlights the very best in NSW/ACT broking and will see the announcement of the NSW/ACT Broker of the Year, sponsored by QBE and NSW/ACT Young Broker of the Year, sponsored by Vero.
2023 NIBA WA GALA LUNCH
WHERE: Crown Perth
WHEN: Friday 14 July 2023
Join us for the 2023 NIBA WA Gala Lunch and unwind a er the end of financial year. Enjoy a two-course plated lunch and opportunity to connect with industry peers.
The event also celebrates the very best in WA broking and will see the announcement of the QBE-sponsored WA Broker of the Year, and the Vero-sponsored WA Young Broker of the Year state winners.
This event is a sell-out every year, so be sure to secure your tickets early.
2023 NIBA / UAC BRISBANE UNDERWRITING EXPO
WHERE: Brisbane Convention & Exhibition Centre
WHEN: Wednesday 19 July 2023 Showcase your latest products and services at the 2023 NIBA/UAC Brisbane Underwriting Expo at Brisbane Convention & Exhibition Centre.
This event offers an exciting opportunity for underwriters to connect with key local decision-makers and generate new business leads.
Are you a member of UAC and interested in exhibiting? Register today to showcase your people and capabilities while connecting with important local decision-makers and creating new business leads.
2023 NIBA QLD GALA LUNCH
WHERE: Convention & Exhibition Centre, Brisbane
WHEN: Wednesday 19 July 2023
Registrations are now open for 2023 NIBA Qld Gala Lunch on
Wednesday, 19 July at Brisbane Convention & Exhibition Centre.
Indulge with a two-course plated meal and live entertainment while networking with industry professionals and make lasting connections.
The event highlights the very best in Queensland broking and will see the announcement of the Qld Broker of the Year, sponsored by QBE and Qld Young Broker of the Year, sponsored by Vero.
NIBA CONGRATULATES THE FOLLOWING MEMBERS FOR RECEIVING THEIR QPIB DESIGNATIONS
Mansur Bobokialonovolim, M&O Insurance Services Pty Ltd
Lisa Shanta, SB Protect Pty Ltd
Veronika Karatovic, Arthur J Gallagher
Helen J Bullock, Gow-Gates Insurance Brokers Pty Ltd
Matthew Brady, Australian Insurance and Financial Group Pty Ltd
Lambros Moschoyiannis, LJM Insurance Pty Ltd
Katherine Fitt, Countrywide Insurance Group Pty Ltd
NIBA CONGRATULATES THE FOLLOWING MEMBERS FOR BECOMING ASSOCIATE MEMBERS
Taylor Raymon, Honan Insurance Group Pty Ltd t/a Honan Insurance
Dimitrios Moschoyiannis, LJM Insurance Pty Ltd
NIBA CONGRATULATES THE FOLLOWING MEMBER FOR BECOMING A FELLOW
Judith Doddridge, Guardian Insurance Brokers Pty Ltd
2023 NIBA CONVENTION
WHERE: The Star, Gold Coast
WHEN: Sunday 8 October to Tuesday 10 October 2023
2023 NIBA SA GALA LUNCH
WHERE: SkyCity, Adelaide
WHEN: Friday 21 July 2023
UAC EXPO – SAVE THE DATES
9 AUGUST 2023
UAC Norwest Sydney Underwriting Expo
14 SEPTEMBER 2023
UAC Adelaide Underwriting Expo
18 OCTOBER 2023
UAC Wollongong Underwriting Expo
15 NOVEMBER 2023
NIBA UAC WA Underwriting Expo
More information is available on the UAC website, www.uac.org.au/events/
NIBA is excited to reveal that one of the guest speakers at the NIBA Convention will be Patrick Tiernan, Chief of Markets at Lloyd’s of London. Insurance Adviser caught up with Mr Tiernan to get his thoughts about where the industry is headed and what he is most looking forward to at the Convention.
The program for the upcoming NIBA Convention promises to have a lineup of inspiring speakers that will get you to think di erently about the profession, the industry and how you approach your clients. Previously, we shared that you would hear from speakers such as Dr Jordan Nguyen, CEO, Psykinetic, Dr Bronwyn King AO, and Gus Balbontin, former CTO, Lonely Planet. And now, joining this esteemed list of speakers, we have Patrick Tiernan, Chief of Markets at Lloyd’s of London. Mr Tiernan shared his insights about the changes he sees in the industry and why you cannot put a price tag on the value of an event like the NIBA Convention.
The theme for this year’s Convention is “Reimagine: Think Di erently”. Mr Tiernan considers this theme to be a fantastic opportunity for the industry and the broking profession to be more innovative in approaching challenges and not rely on methods that may have worked in the past.
“In today’s world – where stability and certainty are hard to come by – insurance has never been more critical,” he said.
“The power of our industry to understand societal concerns and customer aspirations, and to navigate a path that allows companies and communities to accomplish their goals without being paralysed by uncertainty, is unparalleled.”
“That’s why we need to think di erently about what our industry and the broking profession can do at this critical juncture, execute it, and tell our story well.
We have been guilty of being insular in the past. Now is the time to be confident in our value. Underpinning this is the need to innovate: doing things as we’ve done them won’t equip us for the challenges we know are ahead.”
Mr Tiernan believes that the industry can, at times, sell itself short because of how it is perceived through the lens of public discourse. Brokers need to have self-belief and confidence in what they do because the value they o er their clients is critical and essential, especially in a world that is becoming increasingly disruptive.
“In a stable, prosperous and peaceful environment, insurance is often seen as another cost of doing business or living our everyday lives,” he said.
“As an industry, we were not always a orded an equal seat, with other areas of finance having a voice in the corridors of government or in corporate decision making.
The industry is undergoing significant and exciting changes. We need to think di erently about our customers’ needs and how we address these going forward. Filling existing protection gaps in the market is critical to ensure insurance stays relevant.”
As brokers look at new and more e ective ways adding value to their clients, staying ahead of the curve by being an early adopter of digital practices can reap rewards.
“Brokers also have a key role to play around data and digitalisation,” said Mr Tiernan.
“They have access to such rich and comprehensive data that utilising it across the value chain will allow us to develop better and more targeted products for customers.”
It is important to remember that the digital revolution isn’t something that will take place in the near future, rather, it is happening right now as we speak. Technologies such as artificial intelligence and machine learning have changed the way business is conducted.
“We are already starting to see the emergence of artificial intelligence and machine learning as tools in the underwriting and claims processes,” said Mr Tiernan.
“Looking ahead, algorithmic or machine augmented underwriting will only become more and more in focus for the industry. We have always relied on data to make underwriting and pricing decisions, but advances in analytics and big data are taking this to the next level.”
Looking forward, how the industry responds to the cyber challenge will be one of the key things to look out for. The continuously evolving nature of cyber threats make them a unique challenge to tackle successfully.
“Cyber is one of the hottest topics in our industry at the moment,” said Mr Tiernan.
“In 2021, the estimated economic loss due to cyber-attacks was $6 trillion. Global premium was less than $15bn. The first challenge is to develop solutions and products that increase take-up, so we can start to mutualise the risk.
While there is huge opportunity in the class, it’s not without challenge. Cyber threats themselves are constantly evolving and our industry is yet to be tested by a truly major event. This makes it di cult to assess risk and understand aggregations.”
The job is still about people and building relationships
While the digital revolution has impacted how brokers conduct their business, at its core, the nature of the job was, is, and will continue to be, all about people and the relationships you build with them. This fundamental aspect of insurance broking has not changed.
Mr Tiernan goes down memory lane, sharing with us that it was his love and curiosity of being around people that confirmed for him that this industry was where he wanted to be.
“I probably came to insurance because it suited my love of being around people, and for leaving legacy,” he said.
“Unlike my siblings and parents, I lacked the patience to teach and was too squeamish for medicine – but I had a desire to serve and make a di erence.
“There are probably many areas that could give folks that opportunity, but if I’m honest, I just liked the people I worked with along the way.
“And the harder you work in insurance, the more opportunities seem to come along.”
In October, the industry will converge on the Gold Coast for three days to discuss some of the most critical challenges that lie ahead, while also taking the time to reflect and celebrate. Mr Tiernan believes that you cannot put a price tag on the value of people coming together under one roof.
“Having the industry come together for an event like this is invaluable in my opinion,” he said.
“It’s a unique opportunity to share knowledge and deepen our understanding on the key issues we are collectively facing. The best and brightest in the industry are going to be at the event so it will be an incredible opportunity to learn from one another and collaborate.”
The Convention will also be an opportunity for many to catch-up with their colleagues and peers face-to-face after a considerable hiatus. For an industry that is heavily people-focused, the return to a more traditional form of interaction is a welcome breath of fresh air.
“While I think collectively we’ve done a great job of adapting to this new way of working, there’s no substitute for getting together in person, face to face,” said Mr Tiernan.
“There’s a lot to be excited about in our industry right now, but also a lot of challenges to address – and some of those complex problems can only be solved when you’re in the room together. So, I’m really excited to get together and hear about all of the wonderful things everyone is working on.”
we need to think differently about what our industry and the broking profession can do at this critical juncture, execute it, and tell our story well
NOW!
Be quick to secure your full NIBA Member Convention registration ticket at the early the standard price. Group tickets of eight or more delegates are available. Conditions apply.
Register at: www.2023nibaconvention.com.au/registration
The following is an overview of some of the things NIBA has been examining on behalf of members.
Last month, the Australian Financial Complaints Authority (AFCA) released the latest round of complaints data for the sixmonth period ending 31 December 2022.
This data provides a snapshot of the complaints landscape and highlights some of the challenges faced by consumers and brokers in the current climate.
In the six-month period to 31 December 2022, AFCA received a total of 43,516 complaints. Of these, 10,639 or almost 25% related to general insurers. In comparison, AFCA only received 80 complaints about general insurance brokers.
Last financial year, AFCA received 15,406 complaints against general insurers, putting general insurers on track for their highest number of complaints since AFCA’s inception.
Of the 80 complaints relating to general insurance brokers, approximately 50% progressed to case management, while only two complaints reached the decision stage. Both complaints were found in favour of the broker.
The latest round of data suggests that insurance brokers are generally providing good service to their clients and acting in their best interests.
However, the complaints that progressed to the case management as well as the high percentage of complaints that received no response on referral indicate that there are still steps brokers can take to improve their internal dispute resolution processes.
Of the 10,639 general insurer complaints received by AFCA, 60% progressed to case management, with 17% of those moving to the final decision stage. Of the complaints that required a determination
by AFCA, only 29% were found in favour of the complainant.
The most common reasons for complaints were delays in processing claims, disputes over policy coverage and the amount paid under the policy.
The high number of complaints highlights the need for insurers to improve their claims handling processes and communication with customers to ensure timely and satisfactory resolution of claims.
Likewise, the high number of complaints that progressed to case management indicates that many complaints are not being resolved at the initial referral stage, resulting in delays in resolution and dissatisfaction among consumers.
The most commonly complained about products for general insurance brokers were:
1. credit insurance
2. home building insurance
3. sickness and accident
4. small business/farm insurance
5. home contents.
This is a change from last year’s top five, which included:
1. small business/farm insurance
2. home building insurance
3. motor vehicle
4. professional indemnity
5. credit insurance.
The shift in the top five indicates the impact of recent events such as the COVID-19 pandemic and natural disasters. For general insurers, the most complained-about products were:
1. home building insurance
2. motor vehicle
3. home contents
4. third-party motor vehicle
5. credit insurance.
AFCA continues to receive record numbers of complaints each month, earlier this year, the dispute resolution body announced that the increased number of complaints was placing pressure on AFCA’s complaints handling operations.
To combat this, AFCA increased the capacity of their Registration and Referral team to ensure complaints are processed and referred back to firms in a timely manner as well as increasing the size of Dispute Resolution Specialist teams.
The data highlights the important role of brokers as trusted advisers to their clients and advocates in the event of a claim.
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
As one of the world’s largest insurers with over 100 years’ experience in Australia, Allianz is here to help when you need it most. With state-based sales and underwriting experts working alongside our dedicated claims team, we’re ready to assist you and your customers, no matter where you are.
For more information, speak to your Account Manager today or visit www.allianzengage.com.au
Go Further, Together.
Federal Treasurer the Hon Jim Chalmers handed down his second Federal Budget as part of the Anthony Albanese-led Labor Government last month, prioritising cost-of-living relief measures that would help ease the financial pressure on Australians –while at the same time – put downward pressure on inflation.
We dig deeper into the 2023-24 Budget to find out how it’s going to impact insurance brokers and the wider industry.
Some of the most important measures in the Budget are around better preparedness of Australian communities for future natural disasters. In 2023–24, the Government will provide $200 million through the Disaster Ready Fund to support projects like levee upgrades, seawalls and bushfire risk reduction projects.
More than $236 million has been set aside over the next 10 years to address critical, long-standing risks in Australia’s flood gauge network. This will
be done in partnership with state and territory governments, to ensure communities, emergency services and businesses have reliable access to flood forecasts and warnings.
Further to this, $8.6 million will be invested to generate a National Emergency Management Stockpile (NEMS) of life-saving resources. This will provide state and territory governments with rapid access to critical disaster resources. A new cell broadcast National Messaging System (NMS) will be rolled out, which will use state-of-the-art technology to significantly enhance how emergency messages are to be delivered.
Andrew Hall, the CEO of Insurance Council of Australia has welcomed this investment.
“We know that communities across the east coast are still recovering from the floods in 2022, which were the costliest in history, so it is welcoming to see the Government continue its commitment to fund disaster resilience and measures to protect Australian communities from extreme weather,” he said.
The Federal Budget has set aside over $100 million to boost Australia’s cyber security capabilities. The Government’s cyber security focus is welcome, especially because it coincides with the industry taking important steps to embrace a culture of self-reporting Code breaches, as outlined in the Insurance Brokers Code Compliance Committee’s (IBCCC) Annual Data Report.
Finally, the Government has also outlined a commitment to introduce legislation that will help ensure that current taxation laws are amended such that it helps minimise the regulatory burden on general insurers.
NIBA CEO Philip Kewin has welcomed the measures focusing on disaster resilience and tackling the increasing threat of cybercrime, while recognising that reducing the regulatory burden on insurers may help alleviate the burden of rising insurance premiums which is impacting on brokers and their clients.
Ebix Australia celebrates our 30th year this July and we would like to extend our gratitude to all clients and partners, past and present.
Without all of you, we would not be celebrating this milestone!
Back in 1993 we were a small private business, today we are part of a global software company with a primary focus on insurance technology.
We cannot wait to see what the next thirty years bring and we look forward to many more years of success together.
The Australian Financial Complaints Authority (AFCA) and the Australian Prudential Regulation Authority (APRA) have signed an MoU that sets out the basis for engagement between the two organisations, including information sharing and other forms of cooperation and coordination.
The MoU has been signed by APRA Chair John Lonsdale and AFCA’s Chief Ombudsman and Chief Executive O cer David Locke.
Although AFCA and APRA have distinct mandates and responsibilities, they both have a common role in protecting and delivering benefits for all Australians. Supporting a fair and e cient financial system is a key focus of both organisations.
The authorities recognise the importance of mutual consultation and cooperation in
the e ective discharge of their respective responsibilities. As per the MoU, both AFCA and APRA will:
• Inform – proactively provide appropriate information and documents that are relevant to the other authority and respond promptly to information and document requests;
• Consult – where one authority is considering or undertaking an activity that has an impact on the other authority’s responsibilities;
• Collaborate – seek input from, or collaboration with, the other authority to achieve or improve regulatory outcomes, particularly in policy development and consultation with industry and statistical collections; and
• Engage e ectively – seek to improve the e ciency of its interaction with the other authority and, in areas
of common interest, the e ciency and e ectiveness of interaction with industry participants.
Both organisations acknowledge the benefits of sharing information that will assist each other in performing their functions and exercising their powers. To further this aim, the organisations may share, to the extent possible, information relevant to the financial or prudential soundness of regulated financial institutions, with each other.
This is subject to any statutory secrecy and non-disclosure obligations, other confidentiality and information-sharing obligations, or any other constraints including, where applicable, privacy legislation obligations. Both organisations agree to adhere to any conditions imposed by the disclosing authority, or any other terms required.
Last month, the Victorian broking community came together at the Crown Melbourne to network and celebrate their achievements over the past twelve months. The day started with a breakfast seminar which featured an engaging panel discussion on the impacts of inflation and underinsurance facilitated by the members of the Young Professionals Committee.
Special thanks to our panellists: Cillian Browne, Senior Loss Adjuster at McLarens, Marty Sadlier, Director, MCG Quantity Surveyors, Jeff Williams, Broker Claims Manager, Gallagher and Peter Hopkinson, Senior Property Underwriter, QBE and also to Oliver Ward and Jasmin Gabrielli who facilitated the discussion on the day. A er the breakfast seminar, attendees headed to the NIBA / UAC Vic Underwriting Expo. It was an extremely positive turnout, with 116 Exhibitors and a total of over 500 registered brokers who attended the Expo.
The Young Broker of the Year awards are proudly sponsored by Vero
MEET THE FUTURE OF THE INSURANCE BROKING PROFESSION.
THE 2023 YOUNG BROKER OF THE YEAR AWARD, SPONSORED BY VERO, SHINES A SPOTLIGHT ON THE YOUNG TALENT WHO ARE EXCELLING IN THE PROFESSION. GET TO KNOW THIS YEAR’S STATE FINALISTS BETTER AND DISCOVER WHAT INSIGHTS THEY HAVE TO SHARE.
INTERVIEWS BY VIRAT NEHRU
How did you get started in the insurance broking profession? After years of working in accounting, enterprise risk management, and the public sector, I no longer had the desire to be an employee, and wanted to start my own business. I remember performing in depth reviews of several di erent industries; however, insurance was not one of them. My father, who has been working with WFI for 25 years, convinced me insurance was the best industry for hard working and motivated individuals, and that I had the skill set to really make a go of it.
What is the most important lesson you have learnt in your career so far?
You should meet people face-to-face, to really build the rapport that is required for a successful business relationship. Authenticity and passion can really be lost in the words of a text message or email. As much as we are in the digital age, pounding the pavement to get in front of prospects, clients and insurers is a great way to ensure these traits are shown, and more importantly, believed.
What does becoming a finalist of the 2023 Young Broker of the Year award mean to you?
The esteem in which the industry holds this award is certainly not lost on me, and I am extremely grateful to be a finalist. I always appreciate any chance to develop personally or professionally, which this process has certainly o ered. I am looking forward to meeting others that share the same passion for the industry as myself, along with building my network and continually improving all facets of my business.
Principal – Corporate, Marsh
How did you get started in the insurance broking profession?
My entrance into the insurance industry was a fortunate turn of events facilitated by an introduction through a dear friend. At the time, I was enrolled to go back to school to study fashion. It was certainly a fork in the road scenario, and although ‘falling into the industry’ is not exactly unique in insurance, I’m so glad I’ve chosen this path in which I’ve spent the past 12 years building my career.
What truly brings me joy is the ability to make a di erence by helping people. Guiding clients through the complex insurance landscape, providing them with tailored solutions, managing them through claims, all while building relationships. There is such a wide variety of opportunities in the insurance industry, and I highly recommend this as a career to anyone wanting to forge a strong path for their future – there really is something for everyone.
What is the most important lesson you have learnt in your career so far?
The most important lesson I have learned throughout my insurance career is the importance of building and maintaining strong relationships that are built on trust. In this industry, relationships are the foundation upon which success is built.
Insurance is a deeply personal and trust-based business. Clients rely on their brokers to protect their assets, manage their risks, provide support during times of crisis, and ultimately protect their livelihood. Establishing trust and credibility is paramount. Your clients need to know that your biggest goal is to have their back. Being genuine, transparent, and responsive is essential in developing and nurturing longterm relationships with clients.
What does being a finalist and winner of the 2023 Vic/Tas 2023 Young Broker of the Year mean to you?
Becoming a finalist and winner of the Vic/Tas Young Broker of the Year award means so much as it recognises my hard work and growth over the last 12 years of my career, as well as my commitment to the association, having volunteered as a member of the NIBA Young Professionals Committee for the last 10 years.
On a personal level, I have so much passion for this industry, my work, and relationships with clients, insurers and colleagues. It reflects my hard work and dedication and serves as a motivating factor to continue striving for excellence, improving my skills and making a di erence in the insurance industry.
NIBA provides a platform for brokers in Australia, and it’s truly an honour to be recognised by an association that advocates for us and provides so many opportunities for professional and educational development.
How did you get started in the insurance broking profession?
I started in the industry when I was 17, working a part-time job while also studying commerce at university. I started out doing admin and data entry. After approximately six months of doing this, I started my tier 2 in broking and eventually went on to my tier 1 and diploma.
What is the most important lesson you have learnt in your career so far?
I have learnt to always prioritise the needs and best interests of my clients. This means being transparent, honest, ethical, providing sound advice and guidance, and striving to achieve the best possible outcomes for my clients. Additionally, I have learnt that you must stay up-to-date with market trends, regulations, and industry developments to better serve clients.
What are some of the attributes essential to be a good broker?
I believe that building trusted relationships is essential to being a good broker and being honest and upfront with clients is the best way to do this. It is also important to take the time to learn about your clients and their business. Over my nine years in the industry, I have built close relationships with both, my clients and underwriters.
What does becoming a finalist of the 2023 Young Broker of the Year mean to you?
It’s an honour just to be nominated. Being recognised as a finalist motivates me to continue to improve and develop. It makes me proud to be in the industry that recognises and celebrates young professionals.
Broking Operations Manager, South Coast Insurance Brokers WA
How did you get started in the insurance broking profession?
I’m one of those people who fell into insurance. After deferring university studies for a second year, a friend’s father reached out to o er me a reception and broker assistant position at his brokerage. Being in a regional location, I was attracted by the idea of an alternative career path which included professional development, career progression and formal qualifications, all without the need to move to a major city centre. I’ve since proven that was a great decision, earning the position of Account Manager in my third year and becoming a Qualified Practising Insurance Broker as soon as my fourth anniversary in the industry came around. Now seven years in, I sit in the position of Broking Operations Manager and have recently completed a bachelor’s degree in insurance and finance.
What are some of the attributes essential to be a good broker?
I believe the essential attributes to being a good broker include empathy, patience and being an educator. Within our roles we act as advocates and negotiators for our clients. These positions are vastly aided by a sound understanding of our clients’ circumstances and values, and having empathy allows us to connect with and best support those clients. I believe showing patience and acting as an educator for our clients are invaluable tools in building strong relationships and a mutual understanding of the work involved by all parties to protect our clients’ assets. Being well organised is also key to keeping across growing workloads and regulatory requirements.
What does becoming a finalist of the 2023 Young Broker of the Year mean to you?
Being selected as a finalist is an absolute honour. It feels like recognition for the hard work I’ve put in over the past seven years, building strong relationships with my clients, developing my own skills, and now supporting the other sta in our brokerage to thrive and provide the highest quality of advice to our valued clients. This award recognises leaders in our industry, and it is humbling to be seen by my peers to fit into this category. Regardless of the result, this has been a great experience and has provided more credibility to my name for all future dealings with clients and colleagues.
How did you get started in the insurance broking profession?
There are two main ways most people get started in the insurance industry: falling into it accidentally or being introduced to it through family. In my case, I fall into the latter category. My father was an insurance broker, and I often joke I was raised to be an insurance broker against my will. Even as a young child, I knew what ISR stood for, and my dad would often quiz me on how to handle and resolve motor claims during dinner. Although my initial introduction to the industry was through family ties, I quickly fell in love with the work, and it has been a perfect fit for me. I am passionate about helping people and businesses manage risks and find the right insurance solutions for their needs. The industry’s diversity and flexibility also mean that there is always something new to learn and discover, making it an exciting and fulfilling career path.
What is the most important lesson you have learnt in your career so far?
In my experience, the most critical lesson I have learnt in my insurance broking career is that the only limit to your success in this industry is the limit you put on yourself. The insurance broking industry is incredibly dynamic and versatile, o ering a vast array of opportunities for growth and
development. It is almost like a real-world “choose-your-own-path” adventure, where you can craft a career that aligns with your passions and interests.
The most successful insurance brokers are those who are self-driven, always seeking out new challenges and opportunities for growth. They are not afraid to take risks, and they have a thirst for knowledge that drives them to constantly improve and innovate. The key is to remain open-minded and flexible, always looking for new ways to develop your skills and expand your horizons.
What does becoming a finalist of the 2023 Young Broker of the Year mean to you?
Becoming a finalist carries profound meaning for me. With 15 years of experience in the insurance industry and active involvement in the NIBA Qld Committee, I have witnessed the exceptional opportunities that the Young Broker of the Year program o er to nominees and finalists.
This prestigious platform provides me with the privilege of engaging with industry leaders, representing my profession and colleagues, and forging connections within the wider community. Embarking on this journey is an unparalleled experience that has already deepened my knowledge and honed my skills.
How did you get started in the insurance broking profession?
Like many others in our industry and as the cliché goes, I fell into insurance broking in 2016 at the age of 26. My best mate who was working for one of the large global corporates at the time suggested that I apply for a role in their SME team as a Client Executive. I literally had no idea what an insurance broker was before applying, nor had I even heard of the profession. All I knew about insurance was what a premium and excess were. Thankfully, I decided to apply for the role where I managed a portfolio of SME clients for about 3.5 years. Here I am seven years later, thoroughly enjoying my broking career and more importantly, I still begin each day as motivated as I was the previous day. I just wish I had started my career earlier.
What are some of the attributes essential to be a good broker?
As brokers, we all have our own individual strengths and weaknesses, but I think it is absolutely non-negotiable that we keep our clients’ best interests at the forefront of what we do. Insurance broking is being both: an expert in our field and providing excellent customer service. With clients, good brokers take the time to learn about their business and connect with them as individuals, as this is one of the most e ective ways of becoming their trusted adviser. Another simple yet e ective way of demonstrating this is by returning calls and responding to queries as soon as possible and always delivering on agreed timeframes. With insurers, good brokers take the time to connect and get to know who is on the other side of the phone or email, which goes a long way to earning their respect and building strong and meaningful relationships.
What does becoming a finalist of the 2023 Young Broker of the Year mean to you?
Just being nominated by a fellow colleague for this award, let alone becoming a finalist is such an overwhelming achievement. I have always strived to represent myself at the highest standard through my integrity, commitment and strong work ethic and will continue to do so for the rest of my career. Whilst I don’t need my name to be put up in lights to feel like I am good at and enjoy what I do, I can’t deny the feeling that comes with this nomination. It is humbling and really does mean a lot to me.
How did you get started in the insurance broking profession?
My insurance career started all the way back in 2006, as a fresh faced 16-year-old high school graduate. I was unsure what it was that I wanted to do after leaving school and after a brief stint in the hospitality industry, my parents, who had worked in the insurance industry for over 30+ years, suggested that it would be beneficial for me to get a job at a broking house. The transition into the industry felt so natural for me. I got my start at Horsell International as an Administration Assistant and worked my way up to a Brokers Assistant, where I stayed until I moved across to Aon, Marsh & now Network Insurance Group.
What are some of the attributes essential to be a good broker?
There are three main attributes that I not only pride myself on but that I look for in my team. The first one is communication. Communication is imperative in our industry and the most successful communicators can articulate clearly, the value they add, as well as creating better relationships and building trust which is one of the most important things in our industry.
The second one is time management. We are all busy in our jobs, but if you’re able to e ectively manage your time and get the most out of what you have available, you’re able to deliver a greater focus, a higher level of productivity and, most importantly, reduced stress levels. The last one is trust/reliability. A broker’s reputation is solely based on how trustworthy and reliable they are. As a service and relationship-based industry, providing excellent customer service is imperative, however, a trustworthy and reliable broker will be able to work independently and be part of a team, and consistently deliver on their obligations and promises, and be counted on to be there when they are truly needed.
What does becoming a finalist of the 2023 Young Broker of the Year mean to you?
Firstly, it has been such an honour to have even been nominated for the Young Broker of the Year award. The day I was notified that I was one of the finalists, I was quite shocked. I am proud of myself and happy that I have been recognised for all my hard work over the last 15 years.
How did you get started in the insurance broking profession?
When I finished my university degree, I didn’t really know what I wanted to do or where to start looking for a job.
I got my start in insurance through the mighty Forest Rugby Club. Michael Donaldson, one of our directors, is a long-time player and manager up there who I met while playing at the club.
What started as two weeks’ work experience has turned into five-and-a-half years at AEI. In that time, I have progressed from being an Account Executive in Sydney to an Account Manager and more recently establishing our Melbourne operation. I can’t thank the business enough for the opportunity they have given me.
What are some of the attributes essential to be a good broker?
The most important attributes are knowing your clients and knowing your product. Spending the time to get to know your clients and how their business runs is vital to ensuring you are tailoring the right insurance program for their needs, and to ensure you have covered their exposures.
This also allows you to develop a great relationship with them as you build trust, and the client has confidence that you understand what they need. Most importantly, it helps you to convey the risk to the underwriters, as you are well versed in the businesses operation and can ensure the correct policies and extensions are included to protect your client.
What does becoming a finalist of the 2023 Young Broker of the Year mean to you?
To be nominated for this award is extremely humbling. I would like to firstly thank the directors: Noel, Tim and Michael, for the opportunity they have a orded me within our business. Currently, there is quite a vast age and knowledge gap across the industry with fantastic mentors and brokers coming to the end of their careers within the next 5-10 years.
These leaders have so much knowledge and expertise to pass on to young brokers but there are not enough young people within our industry to absorb the knowledge and mentoring available. I want to use this platform to encourage young people to get into our industry and ensure that there isn’t a great knowledge gap when these experienced professionals retire.
How did you get started in the insurance broking profession?
Like many, insurance wasn’t a thought when I graduated high school. I went on to study at university, completing a commerce degree. I found my way into insurance updating a PDS library – creating a digital database for the o ce to use. My father had asked me to help and in my first week, I was given the opportunity to work with a client.
What are some of the attributes essential to be a good broker?
Being open and honest with clients and insurers. It’s important to explain things to them in a language they can understand and process. By doing this, it allows clients to successfully communicate with me and become a trusted adviser for them. My communication lines are always open, and I treat clients the way I would want to be treated as a client.
What does becoming a finalist of the 2023 Young Broker of the Year mean to you?
For me, being a finalist is an awesome reward for years of hard work. I love this industry and the people, and to be acknowledged by my peers really makes me feel warm and fuzzy. I like to avoid the main stage, but in this case I’m extremely happy to represent our profession and am grateful for my nomination.
Associate Director, Financial & Executive Risks (Australasia), WTW
How did you get started in the insurance broking profession?
Prior to starting in the industry, I had limited knowledge of the industry as my tertiary studies were in the legal and human resource sectors. Upon migrating to Australia from my home country New Zealand in 2011, I was given the opportunity to join WTW as a junior Account Broker within the FINEX team.
The opportunity appealed to me as I enjoyed the interpersonal skills associated with the role, together with the opportunities to grow and develop in an industry which is vast, dynamic and ever changing.
What is the most important lesson you have learnt in your career so far?
The most important lesson I have learnt in my career, is not to be afraid to step out of your comfort zone. As a young professional, it’s common to feel like you lack experience or knowledge due to your age. This can mean that at times clients can perceive you as not having the skill set of an older peer. I have learnt to adapt to this by building confidence in my abilities, surrounding myself with colleagues and mentors who support me and by embracing learning opportunities provided.
By not being afraid to take calculated risks and pushing myself out of my comfort zone, I have learnt to grow as a broker and have found I have gained the appreciation and respect for my work ethic from both peers and clients.
What does becoming a finalist of the 2023 Young Broker of the Year mean to you?
I am extremely humbled to be recognised by my peers for this nomination and my contribution to WTW and the wider insurance industry. This nomination also presents the opportunity to meet and learn from experienced market leaders and peers, and to gain further knowledge which can set me up for the future. This award provides so much opportunity to young professionals that they would not otherwise be exposed to.
Account Executive, Guardian Insurance Group
How did you get started in the insurance broking profession?
I began my career a little over four years ago and was quick to develop a passion for the industry. Coming from a predominantly retail background, I was familiar with the dynamics of a customer service role. However, it was the diversity of the products and the technical knowledge required that I found both challenging and exciting, which fuelled my drive to succeed.
I see the insurance broking industry as a great career pathway for a young professional looking for an opportunity to forge a career for themselves. It is both a very challenging, but very rewarding industry to work in, and I am a strong advocate for promoting the industry.
What is the most important lesson you have learnt in your career so far?
Being able to have di cult conversations with people and setting them realistic expectations by being honest, upfront and empathetic is so important to having a successful career in this industry, especially with how hard the market is at the moment. Learning to not only be empathetic, but also making sure you are empathetic
in the right way has been a very important learning curve throughout my career. Dealing with people that have had poor past experiences with brokers that have left them scarred, or dealing with businesses that are at the make-or-break stage, it is critical for me as a broker to get it right in ensuring I am sensitive and able to empathise with any situation.
What does becoming a finalist of the 2023 Young Broker of the Year mean to you?
Being nominated in the first instance for this award is an honour in itself. To then be further considered as a finalist for the award is not only a recognition of my e orts; it is reflective of my commitment to the industry.
Being a finalist also provides me with an opportunity and a platform to educate and motivate industry newcomers, the same way fellow brokers have inspired me, as well as promoting the industry to others outside of it. Being recognised as a finalist for such a prestigious award is the proudest moment of my career, and it leaves me with both anticipation and excitement in my career moving forward.
How did you get started in the insurance broking profession?
I started my career in insurance via the 2013 Suncorp internship program. This included six weeks at GIO and six weeks at Vero. I was completing my commerce degree at the time and wanted some real-world work experience to put myself in the best position of getting a job in insurance.
In 2015, I was fortunate enough to join the family business as an insurance broker. I’d always had my sights set on the insurance industry where my father Bruce Richards had started RSM Group in 1985 before I was born! The great thing about the RSM Group is that I get to work closely with Bruce and my brother Tom, which brings a sense of accomplishment in being able to continue the family legacy.
What is the most important lesson you have learnt in your career so far?
My biggest learning personally has been pushing myself from a reactive space to being more proactive. I enjoy picking up the phone and connecting with the clients that I work with. The most important part of my role is understanding the client’s workplace and individual needs. I want to understand them as a person first and business second.
What does becoming a finalist of the 2023 Young Broker of the Year mean to you?
I found out that I was a finalist a couple of days after I was married, so fair to say, there was a bit of excitement. The past few years have been a challenge for everyone facing the impacts of COVID-19 and lockdowns and to have so much to celebrate was staggering.
I felt a great deal of pride in myself and my team in all the hard work we’ve put in to build a strong brand and reputation. It’s really sunk in more as I’ve shared the news with my family, colleagues at work and across the industry –their reaction has been moving. We’re a team and I couldn’t have accomplished so much or come so far without their support and encouragement.
While artificial intelligence may be taking over the world, in professional indemnity insurance, good old-fashioned person-to-person conversations are more important than ever.
By MARTIN WANLESSEven taking construction out of the equation altogether, professional indemnity insurance has been a fractious area for a while now, with challenging occupations and industries continuing to be hard to place for brokers, with uncertain capacity and economic challenges creating uncertainty.
“The severe ups and downs of the economy are putting everyone under pressure,” says Wade Cadman, Underwriting Manager – Professional Risks at Brooklyn.
“This is changing underwriting approaches to a number of industries as we need to keep in mind how the industry will weather the storm.”
While Cadman says the re-entrance of Lloyd’s is now smoothing out some of the big bumps in the market, capacity has been tight – meaning brokers need to work with multiple insurers to place a risk – which in turn, causes issues.
“The shrinking capacity of insurers means there has been a greater need for excess layers at a much smaller level than ever before,” says Ange O’Neil, GM of Broking at Resilium Insurance Broking.
“This increases premiums, and what was considered to be SME businesses are now having similar conversations and premiums to what was considered to be midmarket in the past. Explaining to a small business why they need two insurers can often be confusing for a client.”
Such deals often rely on person-toperson discussion. However, in an era of artificial intelligence and automation, that can be increasingly challenging to come by.
Insurance has, of course, always been very much a relationship-based profession, but in today’s world, it can sometimes be easier to default to what the algorithms determine – particularly where di cult-to-place risks are concerned.
“The main challenge over the last six months in the professional indemnity market has been the lack of importance insurers place on resourcing their underwriting units appropriately and the
increased reliance on online systems, says Christian Garling, Managing Director of FTA Insurance.
“The lack of experienced underwriters often leads to a ‘computer says no’ response from insurers and ine cient internal processes mean insurers are taking a week or longer to turn quotes around and brokers are often getting renewal quotes a day or two before expiry.
“You can’t negotiate with an online system as you can with an underwriter. It is the negotiation on behalf of clients where brokers really add value. If the broker is merely getting an online quote, then clients can do this themselves.”
As a consequence, there’s a thirst and desire for robust communication.
“Communication is key,” says Anita Lane, Director at Solution Underwriting.
“Underwriters need to communicate e ectively with brokers at each stage of the renewal process to ensure that all stakeholders are aware of how an insurer plans to manage challenging occupations.
“If insurers are considering restricting coverage, increasing excesses, adding
endorsements, or reducing capacity lines, they need to communicate this to their brokers with enough time for brokers to discuss these changes to their clients and to reconsider their marketing of the risk.”
Of course, when sta ng shortages are a reality of business – as they currently are –this causes problems of its own.
“I don’t think I have spoken to anyone in the insurance industry over the last 12 months who has not commented on sta ng challenges,” says Cadman.
“Sta movement, and skills shortage have put a huge burden on the industry. With all the sta movement, relationships, and ‘ambient’ company knowledge is lost. Larger companies can shoulder and redistribute the workload, but smaller enterprises are doing it tough.
“We are needing to change the approach we take in hiring sta . Companies are having to pivot slightly to ensure that sta
needs are being met and establish a strong training and mentoring plan.
“While it requires some investment, it will pay o in spades as we will have a far more skilled and engaged workforce, and can develop individuals to continue to grow. I think the industry as a whole needs to do a better job of putting insurance careers up in lights and promoting the opportunities within universities.”
The argument for people investment is absolutely valid, because relationships between broker, client, underwriter and insurer are critically important, and Garling says the profession needs to focus on what clients want.
“Clients want consistency, transparency, flexibility and prompt service,” he says. “The challenge is providing these.”
Anita Lane, Director, Solution Underwriting has the following tips for brokers working with PI clients.
1. Explain to clients the importance of returning completed proposal forms in a timely manner. Limited capacity means that placement can now include one or two excess layers which inevitably slows the process.
2. Fully understand your client’s professional services before you go to market.
3. Ensure the submission truly reflects the professional exposure of your clients. The worst submissions are those that are simply an email from a broker with a client’s website, and no other underwriting information (and trust me, they exist!).
4. While websites are an effective tool, a risk cannot be written based purely on a client’s website. Sometimes they are detrimental to the risk, highlighting activities the client thought they might do but never got into – a website, after all, is a marketing tool, so many have some level of embellishment.
5. Understanding the client’s PI exposure is essential to creating a PI submission for underwriters to consider. Give underwriters as much information as you can to ensure they make informed decisions.
6. Follow up your submissions with a phone call or, even better, a face-to-face meeting, to discuss the client and the risk. If you can make underwriters feel comfortable, you’re guaranteed a better outcome for your client.
“ THE SHRINKING CAPACITY OF INSURERS MEANS THERE HAS BEEN A GREATER NEED FOR EXCESS LAYERS AT A MUCH SMALLER LEVEL THAN EVER BEFORE .”
– ANGE O’NEIL, GM OF BROKING AT RESILIUM INSURANCE BROKING
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Of course, the professional indemnity sector is changing, with new ways of working, meaning there are often more layers to reveal before truly understanding the risk.
O’Neil says ‘consultants’, while not new by any stretch of the imagination, continue to be challenging given the shifting nature of their potential role and the sectors they’re working in – particularly post-pandemic and with work often spanning globally.
Again, communication is critically important to understand the extent of a client’s business.
O’Neil says, “With businesses now expanding into very di erent styles of incomeearning business, many clients do not fit into one occupation code, and so verbal discussion with clients is more important than ever.
“Emails can be glossed over, websites out of date, but a client will usually be more than happy to discuss which direction they are taking their business and how they intend on growing.”
In terms of emerging risks, Cadman identifies ‘recurring issues in industries that have no PI exposure (cleaners,
trades-based risks), research and development risks that are in alternate areas, renewable energy risks, crypto, fintech, and blockchain, while Garling says the provision of online services is something that presents new risks and challenges – and, again, is an area brokers should delve into.
“These services are particularly vulnerable to cyber attack either by holding the insured to ransom or using the insured’s IT systems to access the IT systems of the insured’s clients,” he says.
“The professional indemnity market excludes cyber risk and brokers need to ensure they have o ered their clients a standalone cyber policy. Brokers should be very wary of providing cover via Cyber Endorsements, nor should they rely on combined policies to cover all exposures. Having two policies is always the best option as often there will be crossover between the two, which maximises cover for the insured.”
All of which simply serves to illustrate once more that, when you’re writing professional indemnity, it’s certainly good to talk.
A real estate agent was the subject of a claim when a tenant sustained an injury when stepping on an unsecured brick while crossing the driveway of his rental property, which the agent was managing.
The claimant alleged the insured was negligent in failing to maintain the driveway in reasonable repair, and no action was taken when he reported the defects on multiple occasions.
Once the claim was notified to Brooklyn via the broker, it was quickly identified the insured had acted appropriately by identifying the defects, reporting defects to the owners at regular intervals prior to the incident via routine condition reports; recommending the owners obtain a property/safe risk assessment report; replaying previous tenants’ complaints to the owners; and taking steps to arrange quotes for the repair of the driveway prior to the incident.
Brooklyn, via its panel lawyers, issued a notice denying the claim and issued a Contribution Notice to the owners, claiming indemnity/contribution from them, which was denied.
The claim progressed to a compulsory conference, where eventually, the claim was settled between the claimant and the owner, with no contribution from the insured.
“THE SEVERE UPS AND DOWNS OF THE ECONOMY ARE PUTTING EVERYONE UNDER PRESSURE.”
– WADE CADMAN, UNDERWRITING MANAGER –PROFESSIONAL RISKS AT BROOKLYN
As the number of renewable energy projects increase, the challenges continue to evolve for energy companies, brokers, underwriters and insurers.
MARTIN WANLESS
In recent times, Australia has seen the largest growth in renewable energy projects globally. In some respects, it’s not a surprise. The space and climate have made the country a prime location for renewable projects, although a number of factors – including weather events, topography and geography – mean it’s a sector that creates significant challenges for insurers, underwriters and brokers.
It’s a quickly evolving space too, with technology developing at a proverbial rate of knots, while the move to new facilities and the transition of traditional assets means sound risk management is needed as we transition from traditional energy production to more sustainable methods.
“Existing and emerging clients need our help as they transition to achieve their net zero goals,” says Sara Sampaio Soares, National Manager, Energy & Power Australia, Liberty Specialty Markets.
“We are thinking about the resiliency of our customers in terms of the mitigation of climate risks, the adaptation to those risks, and insurance accessibility.
“This relies upon the importance of sound risk management practices, recapitalisation, and investment in human capital to make sure that both existing and new infrastructure being built is sustainable and reliable.”
The challenges are many – and the profession is constantly working to adapt and evolve.
“The transition to more sustainable fuel sources presents several new challenges for insurers,” says Daniela Zaccone, Principal at Marsh.
“There are new risks to consider, the regulation is evolving, and consequently, there’s an uncertainty in underwriting because of the limited historical data involved and the evolving industry standards.
“To overcome these challenges, insurers are actively working on developing specialised expertise in renewable energy and sustainability – they are investing in research, collaborating with industry stakeholders, and leveraging technology and data analytics to improve risk assessment and underwriting practices.”
Matt Langham - Placement Director, National Power & Utilities Practice Leader at Aon, believes the energy transition is the largest shake-up of business models in a generation – and as a consequence presents a vast array of risks, as well as opportunities.
He says, “It presents an array of physical, financial and people risks, which are wide and varied, and from a physical perspective include the construction of new renewable facilities (in many cases where technology does not have the track record of previous generation sources), and protecting assets against the increasing risk of climate change.”
Langham identifies too that significant people risks are among those that consequently emerge.
“Organisations are needing to retrain employees for jobs of the future and those supporting the transition, be it as operators of wind, solar and battery generation projects through to potential hydrogen export facilities as a fuel that has the potential to revolutionise the energy and transport industries. Financial risks can also arise from obtaining financing to progress ambitious prototypical renewable projects to the intermittency of generation and revenue of renewable energy generation facilities.”
While our climate o ers a lot of positives for renewables in Australia, it is important energy clients understand the change in risk profile between traditional energy production and renewable assets, which
Sara Sampaio Soares, National Manager, Energy & Power Australia, Liberty Specialty Markets, says, in the energy insurance space, relationships are still key.
“From our perspective, brokers need to be speaking to their clients about the need for a transparent, tripartite relationship between client, broker and insurer. This sounds quite straightforward, and some do it very well. But the transition, combined with the current socio-economic situation in the world, including conflicts, strain in financial markets and increased uncertainty, creates some very difficult conditions that need to be traversed.
“The best way to do this is through partnership and dialogue that increases understanding of risk from both the client side, but also the insurer’s perspective.
“Inflationary pressures and supply chain disruption are putting pressure on values, skilled labour and resources and rebuild times, and these all need to be factored into business planning on the client side but also into the underwriting process around pricing, deductibles/ retentions and applicable sub-limits to certain perils and exposures.
“Where coverage constraints begin to emerge in the renewable energy sector, brokers need to engage with their clients to fully understand the levels of cover their clients require and what they are actually willing to retain. Where clients are uncomfortable with retaining more risk around natural perils and require additional capacity from the market, brokers could look into structuring placements differently, looking at layered placements rather than focusing on full value/quota share large limit deployment.”
Liberty Specialty Markets is part of a community of committed people and organisations supporting the adoption of renewable energy.
Every technological advancement brings new challenges, and we’re pleased to have helped ensure the smooth implementation of Australia’s hydrogen” facility at Hydrogen Park South Australia.
We look forward to being part of where green energy goes from here.
have significantly more exposure than their traditional counterparts.
“This extreme weather exposure, coupled with remote location of assets on often challenging topography, changes the risk profile,” says Kristine Vale, Partner at Wotton + Kearney.
“For example, insurers are seeing solar losses from weather events where, in addition to damage to the PV modules themselves, roads and accessways have washed away. This leads to significant cost and delay escalations.”
And, says Sampaio Soares, it increases loss potential too.
“We are now facing greater loss potential from natural peril exposures such as hail, bushfire and flood. Renewable energies are a di erent risk profile and don’t generate the same amount of premium due to their comparative lack of size, but carry significant exposure from the increasingly unpredictable weather patterns this country is facing. Renewable energies also introduce volatility into the electricity grid, and increased expenditure,
upgrade, and grid asset development is required to manage this significant change in the industry.”
While physical risks can be mitigated through traditional insurance products, Langham says, “Managing people risks is incredibly important to ensure a workforce remains engaged throughout what will be a turbulent time.
“Initiatives such as employee assistance programs, retraining programs through to alignment of key executive KPIs to transition measures are areas we are working on with our clients to help foster a dynamic culture to support their transition.”
No matter what industry or profession you’re involved in, it’s likely to have been impacted by supply chain challenges over the past few years – and renewable energy is no exception.
Given our geographic position and subsequent relative isolation, as a country, we’re reliant on the global supply chain to
help our transition to renewable energy – and this is a vulnerability.
“The Australian renewables sector is vulnerable to supply chain pressures, and this is widely recognised as one of the key transition risks in the Australian market,” says Vale.
“In addition to the worldwide competition for scarce renewable components and resources, Australian businesses and projects are particularly susceptible due to their relative isolation, reliance on shipping, and existing skill shortages.”
And the emerging risks don’t stop there –in fact, there’s plenty for brokers to consider outside of the immediate.
“Brokers should proactively identify and address emerging risks in the energy sector,” says Zaccone.
“As well as supply chain risks, these could include cyber risks, climate change-related risk or emerging liabilities associated with new technologies.”
Of course, as new facilities are built, legacy facilities are still in operation – and careful management is vital to an orderly transition, says Sampaio Soares.
“EXISTING AND EMERGING CLIENTS NEED OUR HELP AS THEY TRANSITION TO ACHIEVE THEIR NET ZERO GOALS. WE ARE THINKING ABOUT THE RESILIENCY OF OUR CUSTOMERS IN TERMS OF THE MITIGATION OF CLIMATE RISKS, THE ADAPTATION TO THOSE RISKS, AND INSURANCE ACCESSIBILITY. ”
– SARA SAMPAIO SOARES, NATIONAL MANAGER, ENERGY & POWER AUSTRALIA, LIBERTY SPECIALTY MARKETS
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“Existing oil and gas risks (including refining, petrochemical and gas) carry high vertical risk exposures presenting high volatility and vertical loss potential,” she says.
“Challenges from conventional energy industries include high volatility from fire, explosion and mechanical breakdown exposure. The resultant business interruption has become increasingly problematic over the last few years and needs to be mitigated.”
The energy sector is certainly one that needs careful and considered management –and for brokers, there’s plenty to consider.
Vale says, “Brokers should be talking to their clients about Australia’s unique
weather/climate-related exposures and the pressure points for cost/delay escalations in major weather events. Investigating supply networks to ensure adequate business interruption and delay in start-up cover, as well as working with traditional power and energy companies about how their claims experience might change.
“Most traditional power accounts experience low-frequency high-value claims. Renewables are often the opposite.”
Langham says it’s important to collectively tackle the challenge of the energy transition.
“Brokers need to be aware of the energy transition landscape, what it is made up
of and the potential risks or hurdles in achieving it in a safe and timely manner.
“We believe advising our clients on emerging financing, technology and physical risk factors are crucial elements in shaping their business plans for the future, while connecting our clients together to share learnings, and to help brainstorm and group solve challenges of the future is also something that cannot be underestimated.
“It will take a variety of public and private stakeholders working consultatively if we are to achieve decarbonisation targets.”
And the insurance profession as a whole has a significant role to play.
One of the key challenges around the energy transition is meeting ESG targets – and a major risk within that is greenwashing.
“Greenwashing poses a significant threat in the context of the energy transition and sustainability efforts,” says Daniela Zaccone, Principal at Marsh.
“Greenwashing refers to the deceptive or misleading marketing or communication practices used by businesses to portray a false or exaggerated sense of environmental responsibility. The consequences of greenwashing are significant. It can result in reputational damage, loss of consumer trust, and potential legal implications. Moreover, greenwashing undermines the broader goals of the energy transition and sustainability by diluting the impact of genuine efforts and diverting resources and attention away from meaningful actions.”
Kristine Vale of Wotton + Kearney agrees it’s an issue that needs careful consideration.
“Australian regulators such as ASIC and the ACCC have identified ‘greenwashing’ as a particular focus for their supervisory and investigation powers this year. It’s a regulatory and reputational risk, with governments, activists and shareholders holding businesses accountable for ESG targets.”
And it’s not just energy companies that are at risk here – it’s an industry-wide challenge, believes Zaccone.
“Insurers also need to consider their own reputational risks associated with the energy transition. Customers, investors, and regulators increasingly expect insurers to align their underwriting and investment practices with sustainability goals. Failure to do so may lead to reputational damage and the loss of business opportunities.”
“ THIS EXTREME WEATHER EXPOSURE , COUPLED WITH REMOTE LOCATION OF ASSETS ON OFTEN CHALLENGING TOPOGRAPHY, CHANGES THE RISK PROFILE . ”
– KRISTINE VALE, PARTNER AT WOTTON + KEARNEY
Accommoda on Agistment
Animal & Pe ng Zoo
Breeding & Studs
Carriage Driving
Clinic Organisers Clinics
Coaching
Den sts
Equine Assisted Learning
Equine Assisted Therapy
Equine Associa ons
Equine Events
Facility Hire
Farriers
Horse Carriage Driving
Horse Trainers
Massage Therapists
Pe
Pony
At Newline Australia, we underwrite: Life Science, Clinical Trials, Public & Products Liability insurance, Professional Indemnity (PI) insurance, Financial Institutions insurance, Directors & O cers insurance and Crime insurance
Key Liability 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
Key PI Occupations:
• Accountants
• Architects
• Engineers
• Environmental Consultants
• Insurance Brokers / Underwriting Agencies
• Law Firms
• Management Consultants
• Miscellaneous Risks
• Real Estate Agents
• Universities
• Valuers
Key FI Occupations:
• Fund Managers/Investment Managers
• Stock Brokers
• Managed Investment Schemes
• Excess lines for Financial Planners
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 o ered alongside other Financial Lines products
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
Contact
QPIB – A STATEMENT OF PROFESSIONALISM
Apply online at niba.com.au or email the NIBA Membership Team at info@niba.com.au
“My QPIB designation gives my clients peace of mind that I’m a trusted professional.”
– CRAIG ANDERSON, 2018 YOUNG BROKER OF THE YEAR
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.
The much-anticipated NIBA Vic Gala Lunch took place in the Crown Aviary on the roo op of Crown Melbourne. Olivia Hancock, from Marsh, claimed the Vero-sponsored 2023 Vic/Tas Young Broker of the Year Award. Nick Hodges, from Marsh, claimed the QBE-sponsored 2023 Vic/Tas Broker of the Year Award. The award ceremony was followed by an engaging keynote speech from Dr Dan Pronk, former war doctor and a leading medical expert on building resilience. Thank you to all our valued event sponsors, in particular our platinum and gold sponsors: Solution Underwriting, CGU and 360 Underwriting.
The following is a list of AM Best Financial Strength Ratings (FSRs) assigned to insurance companies in Australia and New Zealand. Ratings as at 22 May 2023
Contact: Mr. Rob Curtis
Co-CEO & Managing DirectorA. M. Best Asia-Pacific (Singapore) Pte Ltd.
Tel: +65 9633 6118
Email: rob.curtis@ambest.com
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.
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 23 May 2023
Contact: Craig Bennett, S&P Global Ratings, 03 9631 2197
NON-LIFE INSURERS
AA Insurance Ltd. AA-/STABLE
AIG Insurance New Zealand Ltd. A/NEGATIVE
Aioi Nissay Dowa Insurance Co., Ltd A+/STABLE
Allianz Australia Insurance Limited AA-/STABLE
Berkshire Hathaway Specialty Insurance Company AA+/STABLE
Chubb Insurance New Zealand Ltd. AA-/STABLE
Factory Mutual Insurance Company A+/STABLE
Great Lakes Insurance SE AA-/STABLE
Hallmark General Insurance Co. Ltd. BBB/STABLE
Hannover Life Re of Australasia Ltd. AA-/STABLE
IAG New Zealand Ltd. AA-/STABLE
Medical Insurance Society Ltd. A/STABLE
Mitsui Sumitomo Insurance Co. Ltd (New Zealand Branch) A+/STABLE
NorthStandard Ltd. A/STABLE
QBE Insurance (Australia) Ltd. A+/STABLE Society of Lloyd’s
Southern Cross Benefits Ltd. A/STABLE
Southern Cross Pet Insurance Ltd. A/STABLE
Teleco Insurance (NZ) Ltd.
Tokio Marine & Nichido Fire Insurance Co. Ltd. (New Zealand Branch)
Vero Insurance New Zealand Ltd.
Vero Liability Insurance Ltd.
Zurich Australian Insurance Ltd.
HEALTH INSURERS
BBB+/STABLE
AA-/STABLE
AA-/STABLE
AA-/STABLE
NIB NZ Ltd. A-/STABLE
Southern Cross Medical Care Society
LENDERS MORTGAGE INSURERS
Helia Insurance Pty Ltd. (New Zealand Branch)
QBE Lenders’ Mortgage Insurance Ltd.
LIFE INSURERS
Asteron Life Ltd.
Hallmark Life Insurance Co. Ltd.
Medical Life Assurance Society Ltd.
NIB NZ Insurance Ltd.
REINSURERS
HDI Global Specialty SE
NON-LIFE INSURERS
AAI
A+/STABLE
A/STABLE
A/STABLE
AA-/STABLE
BBB/STABLE
A/STABLE
A-/STABLE
A+ /STABLE
Insurance Company
General Reinsurance Australia Ltd.
General Reinsurance Life Australia Ltd.
Hannover Life Re of Australasia Ltd.
Hannover Rück SE
HDI Global SE
HDI Global Specialty SE
Munchener Ruckversicherungs-Gesellschaft (Munich Reinsurance Co)
Munich Reinsurance Co. of Australasia Ltd.
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.
Swiss Re Asia Pte. Ltd., (Australia Branch)
Swiss Re International SE
Swiss Re Life & Health Australia Ltd.
Transatlantic Reinsurance Company
A+/STABLE
AA-/NEGATIVE
AA-/NEGATIVE
AA-/NEGATIVE
AA+/STABLE
* See page 55 for S&P Global disclaimers and additional information
A stronger and simplified solution for brokers
We are thrilled to share that GT & AM&T have merged to be "better together". We're committed to forming stronger, simpler and unified solutions to enhance our services to you and your clients.
How will this benefit you?
• Access to combined expertise and skills.
• Improved quality and innovation across products and service.
• Improved customer relationships and experience.
• Simplified processes, support and services.
• Increased competition.
You can continue to engage with your local GT or AM&T representative for dedicated support. The GT and AM&T integration is underway with a focus on system consolidation, a review of our value proposition and branding, distribution planning, and collaboration across industry events. We look forward to regularly sharing our progress along the journey.
