Insurance Adviser magazine is the monthly magazine of the National Insurance Brokers Association (NIBA).
Insurance Adviser magazine is published by NIBA
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Richard Klipin, CEO, NIBA
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E: rklipin@niba.com.au W: niba.com.au
NIBA Editor
Virat Nehru
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FEATURES
ELEVATING PROFESSIONALISM
As you all would be aware, earlier this month, ABC’s Four Corners program released an investigation into the strata industry in an episode called ‘The Strata Trap’. The episode discussed a range of strata-related issues, including a focus on insurance.
NIBA acknowledges, with concern, issues about misconduct within the strata industry raised in the Four Corners episode. NIBA supports professional standards that enhance transparency and disclosure within the strata industry, including the reforms currently before the New South Wales Parliament.
Brokers are committed to professionalism, transparency, and ethical behaviour; values that are at the heart of the Insurance Brokers Code of Practice. As part of NIBA’s commitment to efective self-regulation and promoting professionalism and good client outcomes across the insurance broking profession, we have developed additional guidance materials for Subscribers to the Insurance Brokers Code of Practice. This guidance clarifies the obligations of Subscribers and their representatives when arranging or providing advice on strata insurance products.
We are committed to working constructively with government, regulators, and other key stakeholders to ensure the highest standards of practice and professionalism are maintained, reinforcing public confidence in insurance brokers serving the strata sector.
Looking ahead, we will be shortly commencing our Code review, and work for it is already underway. Our Code, which has been on an evolutionary journey, is a really important signal for consumers, for stakeholders, and for our members.
In this issue, you can get to know more about our five state winners who are in the running to be crowned the national CGU-partnered Broker of the Year, as we recognise those broking leaders who are upholding the highest standards of professionalism. My warmest congratulations to all the five state winners and I wish each of them the very best of luck as we wait to find out who will win at the 2024 NIBA Gala Dinner & Awards night at the Adelaide Convention Centre from 20-22 October.
And finally, speaking of awards and professional recognition, that brings me to the much-anticipated 2024 NIBA Convention, which is less than a month away! Over
the course of two-and-a-half days, the entire broking profession and the wider insurance industry will come together to learn, share, connect, celebrate and unpack the key future trends facing our profession and the wider insurance sector of Australia.
At the NIBA Gala Dinner, we will shine a spotlight on the best of our profession from the past year, honouring the 2024 Broker of the Year and Young Broker of the Year winners. We will also showcase industry excellence by revealing the winners of the 2024 Insurer Awards –Large General Insurer, Specialty Insurer, and Underwriting Agency of the Year. NIBA thanks the record participation of almost 1,000 brokers in the Broker Market Survey, underscoring the importance of broker insights in establishing a truly independent and syndicated overview of the industry.
We look forward to welcoming you to Adelaide next month for the Convention.
RICHARD KLIPIN Chief Executive Officer, NIBA
WE ARE YOUR VOICE!
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.
DELIVERING BETTER FINANCIAL OUTCOMES AND OTHER MEASURES BILL
Early last month, the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Bill 2024 passed in Parliament. The passing of this Bill marks a significant step in addressing the recommendations of the Quality of Advice Review.
The Bill introduces commission disclosure and consent provisions for insurance brokers who provide personal advice to retail clients. This obligation will commence from 10 July 2025. NIBA will work with members over the coming months to support the transition.
Following the passing of the legislation, Assistant Treasurer and Minister for Financial Services, Stephen Jones (pictured), issued a statement on the progress of tranche two of the reforms which includes the modernised best interests duty, changes to Statements of Advice, and the introduction of a new class of financial adviser. In the statement, the Minister advised that
disclosure requirements, and ban agents from receiving a commission on insurance products when they are not actively involved
NIBA provided a submission to the consultation supporting the reforms. The legislation is expected to be introduced to
CONTACT
As always, brokers who have questions about these or any other government or regulatory matters should feel free to contact Head of Policy & Advocacy Allyssa Hextell at ahextell@niba.com.au
NIBA’S UPCOMING STATE EVENTS
NIBA hosts various educational and social events across Australia for the intermediated insurance community.
CHECK OUT NIBA’S UPCOMING EVENTS
Scan the QR Code to register for the upcoming state events.
EVENTS IN THE SPOTLIGHT - LET’S REFLECT
NIBA Qld Cyber Seminar
Leading experts gave Industry Professionals in Queensland a deeper understanding of cyber risk using an integrated, comprehensive approach with data-driven, insight-led solutions.
NIBA Townsville Meet and Greet
Townsville’s premier destination, City Lane hosted regional professionals as they connected, shared ideas and discussed hot topics in this informal Meet and Greet designed to gauge interest in regional Queensland events.
NIBA Vic It’s Okay Not to be Okay Seminar
In recognition of R U OK? Day, the NIBA Vic Committee hosted a seminar by mental health charity “Walk With Me”. Participants heard from former AFL player, Corey McKernan as he told his empowering story.
NIBA Vic Workers Compensation Seminar
Young professionals joined for this insightful Workers Compensation seminar, delivered by a panel of distinguished experts to cover key topics, including claims, broking, and underwriting.
2024 NIBA Mentoring Program
NIBA Wollongong Member Update
Wollongong hosted a Member Update & Networking Function to bring together industry professionals in regional New South Wales to connect and hear from NIBA CEO on the latest updates on key initiatives in this profession.
We are now half-way through the 2024 NIBA Mentoring Program and what a journey it has been.
Over 150 people joined from across Australia to celebrate professional development in our industry. Participants heard from past Mentors and Mentees who spoke about how this program helped shape their careers. Next was a webinar on ‘High-Performing Teams’ which covered key ingredients in all successful teams, adapting communication styles, finding common ground, and more. The next workshop, took the form of a panel discussion, consisting of a diverse panel of industry experts who shared their insights and experiences and brought a wealth of knowledge to the table.
Mentors and Mentees connected through valuable networking opportunities, perfect for expanding professional circles.
We are delighted to welcome the Assistant Treasurer and Minister for Financial Services, the Hon Stephen Jones MP, as a speaker at the 2024 NIBA Convention.
Join Minister Jones from 20-22 October at the Adelaide Convention Centre, as he shares his insights about what the upcoming 12 months will look like for the Australian economy and businesses, as part of a Keynote Speech.
Minister Jones was first elected to the Federal Parliament in 2010 representing the Southern Illawarra seat of Throsby. He was re-elected at the 2013 election and elected to the re-named seat of Whitlam in the 2016 election.
OTHER PROGRAM HIGHLIGHTS ASSISTANT TREASURER HON STEPHEN JONES MP TO ADDRESS THE 2024 NIBA CONVENTION
Prior to entering the Federal Parliament, he worked as a community worker for various front line disability services, youth and health services and as a lawyer with the Australian Council of Trade Unions (ACTU) and as the Secretary of the Community and Public Sector Union (CPSU).
Hear from leading politicians, entrepreneurs, and industry thought leaders as part of our program. With 51 speakers, 21 sessions, and 800 delegates, you will have the chance to learn, share, connect, celebrate, and explore the key future trends impacting our professionand the broader insurance sector in Australia.
TACKLING THE KEY CHALLENGES FACING THE GENERAL INSURANCE INDUSTRY
Shane Fitzsimmons AO AFSM joins a panel of industry leaders, including Jennifer Richards, CEO, Aon Australia and Andrew Hall, CEO, ICA to explore the key challenges and opportunities facing the general insurance industry. This session will explore strategies to ensure insurance remains available and afordable for all Australians, discuss initiatives for building, nurturing, and developing new talent within the industry, and highlight best practices for resilience, risk management, and risk mitigation.
Jennifer Richards CEO, AON AUSTRALIA
Shane Fitzsimmons AO AFSM
Andrew Hall CEO, ICA
Hon Stephen Jones MP ASSISTANT TREASURER AND MINISTER FOR FINANCIAL SERVICES
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ker of the winners
From adapting to thriving in an evolving broking landscape
Technological disruption is transforming the way we live our lives, impacting every sector, and insurance broking is no diferent. From navigating new and emerging risks to changing consumer expectations, the landscape is rapidly evolving. In the lead up to the 2024 NIBA Convention next month, where we are urging the insurance broking community to leave behind old ways of thinking and go ‘Beyond the Status Quo’, Insurance Adviser caught up with the 2024 Broker of the Year award state winners to get their view on the future of broking and the changes ahead, including the transition of the broker as a ‘trusted partner’ for their clients.
LEFT TO RIGHT: Chelsey Harris, Will Laundy, Abbie Wilson, Matthew Bates
NOT PICTURED: Kieran Volpe
Will Laundy
‘The role of a broker will be diferent in the next decade what it is today.’ Do you agree/disagree with this statement?
I agree.We have seen a huge increase in the use and reliance on technology and AI and this will only continue over the next decade. This technology expansion will continue to change the way brokers interact with their insurer partners, and it is likely that many homogenous products and transactions will go from ‘person to computer’ to ‘computer to computer’. At the corporate and risk-managed end of the profession, my expectation is for higher levels of broker qualification and industry specialisation as risk advice and risk transfer evolves and becomes more complex. I believe the role of the general insurance broker will transition from being one of managing process driven tasks, to tailored risk advice and risk management based on the client’s industry. As our world continues to become more complex, the need for specialist product and industry knowledge will become even greater.
What is your broking philosophy?
Our broking philosophy, and what sets us apart from others, is our ability to build true ‘tri-partisan relationships’ – between client, broker and insurer. At the heart of our philosophy is our prerogative to comprehensively understand the client and their business by becoming embedded in their project and leadership teams. It is essential to understand the client’s key priorities, attitude to risk transfer and their operational nuances to create truly tailored insurance programs. With this deep knowledge base, we can facilitate greater information sharing and build genuine tri-partisan relationships. Ultimately, our unique approach helps to foster open communication and greater trust between all parties and leads to better outcomes all round.
Insurance broking is facing a challenge when it comes to addressing the knowledge and skills gap. What are your thoughts on this?
There is no doubt we have seen a widening knowledge and skills gap in our industry over the past 2 decades. Many brokers have sought to reduce operational costs through the development of technology and the growing use of ofshoring. Whilst this has reduced operational costs, it has led to a fundamental shift in how a broking team operates. When I first joined the industry in the mid-2000s, it was common for a broking team of five or six to have one or two assistant brokers. These were entry-level positions designed to support client-facing brokers through a range of tasks, from file creation and renewal information requests to report preparation and claims support. These assistant brokers were part of the entire insurance cycle and were able to learn fundamentals from senior team members. These roles are now largely performed by technology or ofshoring meaning
the usual entry point for broking roles no longer exists. This is a problem because the knowledge isn’t being passed down.
Anecdotally, I would say there is more ‘on the job’ training in insurance broking than other professionals who may learn their industry fundamentals at university. Because of this, there needs to be a greater emphasis on formal and informal training. Many insurers have seen the value that broker training courses can provide to their businesses, as well as the benefit it has to the broking profession. I would encourage those younger brokers to take initiative and engage with groups like ANZIIF, NIBA, Steadfast, YIPS, APIG, and AILA. I feel it is also the responsibility of the broking house to ensure junior brokers are aware of these organisations and have access to them.
Mentoring is another way knowledge and skills can be passed down, be it through formal programs like NIBA’s Mentoring Program or through informal relationships built with colleagues and your broader network.
What are some lessons that you’ve learnt along the way that you wish someone told you about on day 1 of the job? One of the biggest lessons I’ve learnt in my career is that you don’t need to have all the answers or solve all the problems yourself. When I started in my first role in the insurance industry, I thought I needed to know everything, and have all the answers for clients, especially for very technical queries. Given the enormous scope of the insurance sector and numerous diferent industries that we service, this is unrealistic. A better approach is to be a good communicator and build a solid network of people around you to help you find the answers and solutions. The key is to listen to your clients’ needs carefully and ask questions to clarify your understanding. You should have a network of people who you can trust to provide you with accurate and up-to-date information, including colleagues, brokers and underwriters.
If you were to be crowned the national Broker of the Year winner, what would that recognition mean to you? I am extremely passionate about the insurance broking industry, so to be named a finalist for the 2024 national Broker of the Year award is very humbling. As insurance brokers, it’s a great honour to know that clients put their complete trust in us to manage their risk and, as such, we need to ensure we’re continually providing exceptional service and outcomes. Similarly, I believe it’s the role of all insurance brokers to advocate for our industry and the critical role we play in business. Winning this award would serve as motivation to continue to deliver outstanding service to clients and promote the benefits of the broking industry more widely. I am grateful to be considered for this award and to represent SA/NT at the NIBA Convention in my hometown of Adelaide.
The Broker of the Year awards are proudly partnered by CGU
WINNER OF THE SA/NT BROKER OF THE YEAR AWARD Director, Pillar Brokerage
WINNER OF THE VIC/TAS BROKER OF THE YEAR AWARD
Owner and Director, National Insurance Brokers
The Broker of the Year awards are proudly partnered by CGU
Abbie Wilson
‘The role of a broker will be diferent in the next decade what it is today.’ Do you agree/disagree with this statement?
I firmly agree that the role of a broker will evolve in the next decade, but the essence of our work – providing quality advice and advocacy – will remain more crucial than ever. As the landscape of insurance continues to change, our clients and communities will increasingly rely on the expertise we bring to the table. In a world where technology is becoming more integrated into every aspect of life, the role of a broker will expand beyond just being a facilitator of transactions to becoming a trusted advisor and advocate for our clients. Technology will undoubtedly shape the future of insurance, ofering efciency, accessibility, and data-driven insights. However, it will also amplify the need for personalised, humancentric advice. People need people, especially when navigating the complexities of insurance, which is inherently personal. Technology, no matter how advanced, cannot replicate the warmth, empathy, and understanding that come from human interaction. When things go wrong, it’s not algorithms that clients turn to for support—it’s the genuine, compassionate assistance of a broker who understands their unique situation.
What is your broking philosophy?
My broking philosophy centres on one guiding principle: putting my clients first in every decision I make. I believe that to truly serve my clients, I must put myself in their shoes, understanding their unique needs, concerns, and goals as if they were my own. This empathetic approach allows me to provide tailored advice and solutions that go beyond the basics, ensuring that my clients are not only covered but truly protected.
One of the core principles of my philosophy is prioritising coverage over price. While it’s tempting to focus on cost, I firmly believe that the value of an insurance policy lies in the protection it ofers, not just its price tag. My goal is to ensure that my clients have the right coverage for their specific circumstances, so that when the unexpected happens, they have the peace of mind knowing they are well-protected. This approach often involves educating clients on the importance of comprehensive coverage and guiding them away from decisions that might save money in the short term but leave them vulnerable in the long run.
Communication is another key element of my broking philosophy. I strive to maintain strong, open communication lines with my clients, ensuring they are informed, confident, and comfortable with every step of the insurance process. This transparency builds trust and fosters long-lasting relationships, which I believe are the foundation of successful broking.
Insurance broking is facing a challenge when it comes to addressing the knowledge and skills gap. What are your thoughts on this?
One of the most efective ways to bridge this gap is by actively engaging with schools and educational institutions. The future of our industry is currently sitting in classrooms, often
undecided on their career paths. Unfortunately, many students are unaware of the opportunities that insurance broking can ofer, with their only exposure to the industry being the negative portrayals in mainstream media. By introducing insurance broking as a viable and rewarding career option early on, we can tap into this raw talent and ignite a passion for the field among young people who might otherwise never consider it. Moreover, it’s essential to reach out to individuals who may be in disadvantaged positions or those seeking a new path in life. These individuals often have unique perspectives and life experiences that can be invaluable in the broking industry. By welcoming them into our profession and providing the necessary support and training, we can help them turn over a new leaf while also enriching our industry with diverse talents and viewpoints. To ensure knowledge is efectively passed on from senior brokers to newcomers, we must create more structured mentorship programs (like NIBA) that pair experienced professionals with those just entering the industry. This hands-on approach allows for sharing of practical insights, industry nuances, and invaluable advice that cannot be learned in a classroom.
What are some lessons that you’ve learnt along the way that you wish someone told you about on day 1 of the job? As brokers, we often find ourselves in situations where we have to deliver difcult news, navigate complex client expectations, or address misunderstandings. These moments can be daunting, especially when you’re just starting out, but they are also some of the most crucial aspects of our role. I have learned that these tough conversations are not just inevitable but essential to being an efective broker. It’s in these moments that trust is built, credibility is established, and true client advocacy is demonstrated. Clients rely on us to be honest, transparent, and straightforward, even when the news isn’t what they want to hear.
If you were to be crowned the national Broker of the Year winner, what would that recognition mean to you?
If I were to be crowned the national Broker of the Year winner, it would be an incredibly humbling and meaningful recognition. To me, this accolade would symbolise the culmination of years of dedication, hard work, and passion for an industry that I truly believe in. It would be a testament not just to my eforts but to the support and trust of my clients, colleagues, and the communities I’ve had the privilege to serve. Winning this award would mean more than just personal achievement – it would represent the collective success of everyone who has been a part of my journey. From my CBN family, the mentors who guided me when I first entered the industry to the team members who work tirelessly alongside me, and especially to the clients who have entrusted me with their most valuable assets, this recognition would be a shared victory. It would afrm that the values I’ve always stood by – putting clients first, emphasising coverage over cost, and maintaining open, honest communication – are not just words but principles that truly make a diference.
Matthew Bates
‘The role of a broker will be diferent in the next decade what it is today.’ Do you agree/disagree with this statement?
I agree that the role of a broker will evolve in the next decade, but the core of what we do—putting our clients’ best interests first—will remain unchanged. While technology will certainly enhance how we operate, improving efciency and access to information, it should be seen as an enabler rather than a replacement for the relationships we build with our clients. Brokers will still be expected to lead conversations around risk, ofer proactive advice, and tailor insurance programs to mitigate risks based on each client’s unique needs.
The human element of broking—listening to clients, understanding their concerns, and providing personalised risk management solutions—will continue to be critical. Technology can help streamline processes, but it won’t replace the trust and expertise that clients rely on brokers for.
Another key area that will evolve is the focus on compliance and regulatory requirements, which will likely increase in importance. The professionalism of our industry is steadily improving, and I’m proud of the work being done to elevate standards through education and our Code of Practice. This trend will continue, but the broker’s role in building strong, long-term relationships and providing tailored advice will remain as vital as ever.
What is your broking philosophy?
My broking philosophy is best reflected through our company values we built as a team a few years ago: deep, long-lasting relationships, always putting myself in the client’s shoes, continuous learning, teamwork and delivering on promises. At Bell Partners Insurance, our values drive everything we do, from client service to team collaboration.
What sets us apart is our relentless focus on service, not just during policy inception but throughout the entire relationship. We pride ourselves on being there for our clients, from the very start when we’re advising on risk management through to standing shoulder-to-shoulder with them during claims. Communication, technical expertise, and proactive client engagement are the pillars of our service.
I also believe in fostering a culture of learning and development within our team. By creating an environment where everyone, from the most senior to the newest entrant, can be the best version of themselves, we’re able to ofer our clients the best advice and support. Our approach is one of collaboration, where we build relationships that matter and work as a trusted advisor for the long term, not just at renewal time.
Insurance broking is facing a challenge when it comes to addressing the knowledge and skills gap. What are your thoughts on this?
I’m proud to be a mentor with the NIBA Mentoring Program, a fantastic platform for passing on knowledge to emerging talent. Sharing experiences and providing real-world guidance
can make all the diference to someone starting out. I have been blessed in attracting some wonderful younger talent to my business and have thoroughly enjoyed having a progressive career path for them. We invest in all our team’s development through regular training, workshops, and attending industry events, ensuring everyone is continually learning and growing. I believe more can be done to foster mentoring programs, formal training, and hands-on learning opportunities, but it’s also about creating a culture where senior brokers are encouraged to share their knowledge with the next generation. This approach not only addresses the skills gap but also ensures that the future of our industry remains strong and well-equipped to meet new challenges.
What are some lessons that you’ve learnt along the way that you wish someone told you about on day 1 of the job? Having come from a previous 17+ year career in advertising and media, one of the biggest lessons I’ve brought into insurance is to always be proactive, not reactive. The most successful brokers are those who are constantly thinking ahead—anticipating clients’ needs and being one step ahead when it comes to managing risks.
Another lesson is the importance of relationships. Building strong connections with both clients and industry partners is crucial—spend the time at training days, insurer events, NIBA events, UAC events. We’re in a service-driven industry, and exceptional service can make all the diference. Clients remember how you treat them, especially in tough situations, and being a reliable, knowledgeable advisor is key.
If you were to be crowned the national Broker of the Year winner, what would that recognition mean to you? To be crowned National Broker of the Year would be an incredible honour and a career milestone I never imagined when I first transitioned into insurance. Winning the NSW/ ACT Broker of the Year was already one of the proudest moments of my life (except for my beautiful family), but to achieve national recognition amongst such tough competition would be a deeply humbling experience.
This award would mean so much, not just to me but to my entire team at Bell Partners Insurance. I can’t do what I do without my superb team and our great clients that push us to be our best every day. More importantly, I’d want to use this recognition to continue mentoring and encouraging new talent to enter the industry. Our profession needs fresh energy and perspective, and I’d love to play a role in attracting and nurturing the next generation of brokers. It would also provide an amazing platform to highlight the importance of our profession, and the value brokers bring to their clients.
On a personal note, my late grandfather, Michael R. Bates, would be incredibly proud of this achievement. Winning the National Broker of the Year would feel like a tribute to my Pop, and it would be a moment of immense personal pride for me.
The Broker of the Year awards are proudly partnered by CGU
WINNER OF THE NSW/ACT BROKER OF THE YEAR AWARD Managing Director, Bell Partners Insurance
WINNER OF THE QLD BROKER OF THE YEAR AWARD Area Manager, North Queensland Insurance Brokers
The Broker of the Year awards are proudly partnered by CGU
Kieran Volpe
‘The role of a broker will be diferent in the next decade what it is today.’ Do you agree/disagree with this statement?
Having been in the sector for just over a decade, I’ve seen the role of a broker change, and I see it continuing to change over the next decade. The advancement of technology will play a huge part in this. Historically, brokers have played the ‘middleman’ – filling out quote various slips, putting together proposals, obtaining options, reviewing them, and presenting the best option to our client – all very time consuming. Today, we can obtain up to 10 instantaneous quotes using various platforms, so you could say the advancement of such technology has left us brokers with a little extra time on our hands.
This additional time I feel can be spent getting to know our clients’ needs better – sitting down with them, getting to know their business and understand their needs. Additionally, and I think most importantly, the role of a broker is growing to become more of a ‘risk manager’ as well. The tools we have at our hands – Sum Insured and BI Calculators, virtual surveys, even something as simple as Google Maps – we can use them to make recommendations to our clients on improving their risk profile.
What is your broking philosophy?
When I first started in a broking support role, my mentor – a gentleman by the name of Peter Costanzo – gave me a piece of advice I follow to this day – ‘Do it right or don’t do it at all’. I get out of the ofce as much as I can and visit my clients. Sometimes, this involves going to remote areas of northern Queensland. Theres a small town called Chillagoe – about a 5-hour drive from my main ofce – and some of it is still a dirt road – that I service and travel to several times a year. These people love the fact they can do their reviews face to face – it’s something they’ve never had before. I’ve met some true characters during these trips and formed some great professional relationships. Other days, it’s a simple walk down the main street of town and dropping by a client’s business just to say hello. Sometimes an impromptu review is undertaken during these visits. And finally, giving back to the community that supports you is a must in any business – big or small. Whether its participating in the local Chamber of Commerce or volunteering time to deliver for Meals on Wheels –something I have also instilled in my team – all help with the positive impact our brokerage can have on the community.
Insurance broking is facing a challenge when it comes to addressing the knowledge and skills gap. What are your thoughts on this?
Earlier, I mentioned my mentor who worked in our ofce for a number of years. He was in the semi-retirement phase of his career and had been in business for over 30 years. The knowledge and wisdom he passed on to both me and other staf within the ofce was something money could not buy. This mentoring was not in any way formal – sometimes knowledge
was passed down in general conversation, sometimes over a knock-of beer, other times during staf meetings. However, to have given it a name and called it a formal ‘mentorship’ would have been strange as it didn’t seem like it was happening at the time. Maybe he knew he was doing it at the time, maybe he didn’t realise, but on reflection, that’s what made it ‘real’ –the fact that it was informal. This kind of knowledge transfer, the ‘informal mentorship’ if you’d give it a name, The biggest skill I see in broking is that of dealing with people, and that is also where I see a gap. The younger generation are all about communicating electronically, whereas sometimes a simple phone call will achieve much more than an email that takes 10 minutes to write. Perhaps it’s a confidence issue, with the advent of technology, the younger generation is used to communicating electronically rather than in person.
What are some lessons that you’ve learnt along the way that you wish someone told you about on day 1 of the job? A lesson that probably took me longer to learn then it should have in the broking industry was that ‘you won’t make everyone happy 100% of the time’. Sure, aim for it, but be prepared for days where you fall short. There will be times where you simply can’t seal the deal or find a solution, you’ll feel like you’ve failed both your client and yourself. I turn these ‘failures’ into lessons – what could I have done better, what could I have done diferent? Sometimes, the answer to those two questions is nothing – everything was done that could have been. Prepare yourself for these hard discussions. Leave the negative experience of the day at the ofce – never take it home. I’ve recently been watching some online content surrounding ‘The Third Space’. Everyone in business, especially those who might be in a stressful role – should look into it (specifically clips by Dr Adam Fraser). These has been a huge help to my personal development, my work/home life, and I am now sharing these insights with my team to assist them as well. If you have a spare 5-10 minutes on your way home from work one day, give these clips a listen, they are fantastic!
If you were to be crowned the national Broker of the Year winner, what would that recognition mean to you?
I’m not one to like taking credit for the work of my team. I have 15 in my team – each and every one of them, as well as our management team, ensure the business runs smoothly and allow me to get on with my job. They are also very patient with me whenever I’m of doing something not work related – Chamber of Commerce meetings, Maraka Festival meetings, board meetings at the local Community Support Centre – so any award given to be is really a reflection on the overall NQIB team, as without them, I wouldn’t be in a position to eve be writing this article. If only I could add all their names to the nomination! Having said that, many years of hard work, particularly in an industry where the job can at times be thank-less, in a region where the market is incredibly tough, would be a proud moment.
Chelsey Harris
‘The role of a broker will be diferent in the next decade what it is today.’ Do you agree/disagree with this statement?
I agree, the role of an insurance broker will definitely evolve in the next decade. The challenge will be to adapt and evolve as technology influences the way insurance is transacted. We will see greater automation and reliance on technology which will likely increase productivity.
With a larger number of markets and policy options, individuals and businesses will find it complex and difcult to navigate alone. A broker will have the challenging role of manoeuvring through these options to proactively tailor the best solution for each individual client with improved service models to support clients as their needs change over time. Flexibility and innovation will be the key to retaining clients. Educating clients on new risk exposures and how to protect against them will be an ongoing concern into the next decade.
Risk prevention and avoidance will be a priority rather than claims management following a loss. Brokers will need to partner with a whole network of resources to collaborate and support clients with an importance on risk management. These will focus on Work Health and Safety, critical incident support, legal advice, etc to ensure that the changes to a client’s business including ESG, AI and workforce related challenges are addressed and managed. We will need to ensure that the solutions we provide will help clients meet (or exceed) their corporate, policyholder and ESG goals.
What is your broking philosophy?
I’ve had 30 years’ experience in the insurance industry and throughout my career, I have worked in all areas of the industry; underwriting, broking and the role of Group Insurance Manager for a large national transport client. Through my various experiences, I have gained a vast knowledge and understanding of a client’s needs and the benefits of positive interactions with insurers and other stakeholders to fully comprehend a business’s exposures and risks.
I understand the importance of trust in a broker/client relationship and to do this you need to gain an understanding of each client in their own environment. I am genuinely interested and invested in my client’s business, and I enjoy being part of their success as they grow. I believe that face to face interactions with clients plays a really important role in building strong, long-lasting relationships. Understanding a client’s operations, risks and insurance appetite ensures that I provide the best protection for their business, people and assets.
Insurer relationships are also pivotal in broking; staying up to date with insurance markets and products as part of my personal development ensures that I find the best solution for my clients in collaboration and partnership with the insurers.
Insurance broking is facing a challenge when it comes to addressing the knowledge and skills gap. What are your thoughts on this?
Many people enter insurance broking new to the industry and with very little experience. Once established, they quickly gain an understanding of the career opportunities the industry ofers and like me, many brokers end up having a long successful career. It is our role as experienced brokers to showcase the industry as a career and provide education, mentoring and training to the next generation of upcoming brokers. We need to provide guidance, mentoring and on the job training to build a resilient generation of brokers who will be qualified to face the future challenges in our industry. How to interact with a client or network with an insurer and other key stakeholders can’t be learnt from a textbook. These are skills that an experienced broker can only teach a young inexperienced assistant through shadowing them during these interactions. On the job training plays a pivotal role in a broker’s development therefore mentoring programs are an important key to a person’s development and having a successful career in our industry.
What are some lessons that you’ve learnt along the way that you wish someone told you about on day 1 of the job? An important skill I have learnt along the way is to understand your audience especially when it comes to clients. For a broker, clients are your number one priority, and you should always advocate and support them. Another lesson I’ve learnt is the importance of building insurer relationships. It’s vital for insurers to have confidence in your broking abilities so you can work together to find the best solution for your client. With strong insurer connections you can negotiate and work with them to provide your clients with the best outcome and you never know when you will need that favour such as priority claims management!
Having strong connections with clients, team members, insurers and other industry stakeholders is key to a successful career as a broker.
If you were to be crowned the national Broker of the Year winner, what would that recognition mean to you?
I am deeply grateful for winning the WA state award and I am immensely thankful for the recognition. To win the national Broker of the Year award would be overwhelming and an incredible achievement and acknowledgement of my service to the industry. The whole experience has been incredible. I have enjoyed reflecting on my 30-year career in the insurance industry and the successful broker that I have become.
On a personal note, it’s also proof to myself and others that, as a single mum, you CAN raise a family AND have a successful career. I always strive to be the best role model for my two daughters, and I hope that this achievement inspires them to be ambitious and successful women, and that they can overcome any obstacles in life. I hope winning this award and my success as an insurance broker will encourage other women to make insurance broking a career of choice and achieve their goals in this fantastic industry.
The Broker of the Year awards are proudly partnered by CGU
WINNER OF THE WA BROKER OF THE YEAR AWARD
Regional Director, EBM Insurance & Risk
Welcome note
RICHARD KLIPIN Chief Executive Officer, NIBA
PHUONG LY Chief General Manager, Allianz Commercial
Understanding the evolving EV landscape
At the last count, electric vehicles (EVs) – which throughout this guide encompass battery electric vehicles (BEV) and plug-in hybrid vehicles (PHEV) – accounted for almost 10% of all new vehicle sales in Australia, edging towards the ratios we currently see in Europe and the US. Appetite is increasing as the technology evolves, and with greater supply and choice, EV take-up is rising steadily.
We’ve written about EVs in previous Broker Guides, however, this is a continually evolving space – and it’s one that provides huge opportunity for both brokers and businesses.
Throughout this guide, we delve into EVs from a number of different angles, providing a rounded and realistic view of EVs, and their potential in business terms, too.
We explore the current state of EVs globally and here in Australia, and look at what a transition to EVs could look like for businesses.
For some organisations, now isn’t the right time – for others, there is a significant opportunity. However, it’s not as straightforward as introducing some new petrol or diesel vehicles into a fleet – there’s a lot of groundwork to cover, including policies, procedures and driver familiarisation.
There are a number of concerns people have about EVs, too – including range and charging, the availability of repairers, as well as battery fires and what the environmental impact of an EV actually is.
In this guide, we bring together experts from national organisations and the world of academia – as well as Allianz’s dedicated EV and sustainability people – to tackle some of these conversations head-on.
As a broker, you need a realistic view of EVs and the role they can play for your clients. It’s not our role to promote or sell EVs; it’s our role to help businesses understand the opportunities and risks, the challenges and the potential benefits, and weigh them up.
One thing is for certain, however – transport is one of only three sectors in which emissions are still increasing in Australia, and action is needed.
Collectively, we have an opportunity to do something about that right now – and EVs are undoubtedly part of that solution.
Electric vehicles: The transition so far
EVs represent a significant opportunity for businesses and therefore brokers. However, while take up is increasing, there’s a lot of work to be done.
Electric vehicles (EVs) have long been talked about as being the long-term successor to internal combustion engine (ICE) vehicles as the world moves towards a sustainable transport solution with little to no environmental impact.
Proponents of EVs point to lower emissions, reduction in greenhouse gases and energy efficiency as being compelling reasons in the ‘for’ camp, while the more sceptical highlight range, charging issues and battery safety among the items in the ‘against’ column.
Globally, including here in Australia, the take up of EVs is growing by the year. In 2023, almost 14 million EVs were sold across the world – a 35% increase on 2022. This brought the number of EVs on the road to 40m.1
Today, EVs account for 18% of all vehicles globally, 2 and in 2023, more than one in three new car registrations in China was electric, as was more than one in five in Europe and one in 10 in the US. 3
In Australia, EV take-up is increasing too, albeit a little more slowly. At the end of April 2024, EVs represented 9.4% of new vehicle sales, compared to 8.4% in 2023 and 3.8% in 2022,4 with more than 180,000 on the road at the end of 2023. 5 EVs are forecast to make up 30% of the Australian market by 2027. 6
Samantha Johnson, CEO of the Electric Vehicle Council, says, “We are observing a steady rise in demand for EVs, particularly for battery electric vehicles (BEV), as more models become available at different price points, charging infrastructure continues to expand, and government policies such as the FBT exemption on novated leases makes EVs more affordable and supports take-up.
“Australians are making the switch to electric vehicles because they know it can save them thousands of dollars in fuel and maintenance costs, and they know it’s good for the environment.”
Supporting the transition process
Over the past few years, however, EV take-up is trending up – and it’s the right time for many businesses to begin the process of transitioning to EVs.
Because, while Federal Government statistics show that Australia’s emissions peaked in 2007 and have been declining since, one of the three areas in which emissions are not declining is transport.7
“A lot of businesses are approaching the deadlines for meeting sustainability targets, so now’s the right time to be having conversations about helping businesses to transition to EVs,” says Chris Wood, Emerging Risks Manager at Allianz Risk Consulting.
As Johnson identifies, authorities are doing their bit to help growth, too – both at home and overseas. In Britain, for example, 22% of manufacturers’ sales this year must be electric, with a fine of £15,000 per sale payable for each car sold under that figure. That percentage figure rises to 25% next year and 80% by 2030. 8 In the EU, there are stringent CO2 regulations for cars and vans which push manufacturers towards producing EVs, while China’s New Energy Vehicle mandate requires a certain percentage of new vehicle sales to be electric or hybrid.9
In Australia, there are a number of federal and state subsidies and grants available to help reduce the cost of EVs, while in August 2024 the government announced it had doubled the $250 million ‘Driving the Nation Fund’, which is supporting the national rollout of EV charging stations, as well as the hydrogen refuelling infrastructure.
Johnson says, “Electric vehicle uptake continues to grow in Australia despite broader economic pressures. The total number of BEVs and plug-in hybrid vehicles (PHEV) on Australian roads now exceeds 180,000. As of mid-2024, nearly 60,000 EVs have already been sold this year alone. BEV/PHEV sales represented 9.6% of new light vehicles sold in the second quarter of this year.”
Those economic pressures, however, are potentially slowing down the take-up of EVs. Data shows that in May 2024, 34% of people in Australia were considering buying an EV, compared to 56% in June 2022.10
EVs are forecast to make up 30% of the Australian market by 2027.
Add to that some of the common challenges and questions businesses have – including range anxiety, charging infrastructure and the policies and procedures that are required – and it’s clear that businesses need help, guidance and assistance to develop and implement pilot projects to begin their EV transition in earnest.11
Insuring EVs and getting back on the road
Insurance plays an important role in creating a sustainable future for EVs. Ensuring the vehicle is both protected and can be repaired and back on the road in good time, via a strong network of repairers that specialise in EVs, is critical.
While EVs effectively perform similar tasks to ICE vehicles, they’re very different under the bonnet – and require high voltage qualifications to fix and repair.
Fewer moving parts mean there are fewer things to go wrong, however, repairing EVs requires different skills.
Increasingly, repairers are developing their EV repair capabilities, and within Allianz’s Selected Repair Network a large proportion of repairers are equipped to work on EVs.
On average, EV repairs cost around 20% more than those for ICE vehicles ($8472 vs $7077). While both have a write-off rate of around 9%, EVs were found to require frame repairs less frequently.
The EV opportunity for brokers
Just as EVs present opportunities for businesses – which we explore further in the articles that follow – they present opportunities for brokers to advise and guide businesses to ensure they’re considering all aspects.
To date, there has – in some quarters – been a ‘wait and see’ position taken by businesses in regard to their EV transition. Sometimes this has been born out of necessity, sometimes out of choice.
Statistically, however, we’re trailing behind other Western countries – and there’s a real risk in doing so when it comes to EVs.
With transport one of the three areas in which Australian emissions are still rising, EVs should be high up the priority list of every business.
Chris Jones, President of the Australian Electric Vehicle Association, says, “It’ll probably take until 2030 or 2035 until 100% of all new vehicle sales are EVs – and then it’ll take another 15 years for the fleet to become mostly electric as vehicles stay on the road for at least 15 years in Australia – so we’re already looking at 2050 before we start making genuine dents in the transport emissions budget.
“That’s why we all need to do a lot more than just electrify our cars – but electrifying our cars needs to happen, and it might as well start now.”
Summary for brokers
1. Transport is one of three areas in which emissions are still rising in Australia.
2. EVs are forecast to make up 30% of the Australian EV market by 2027.
3. Federal grants and subsidies are incentivising businesses to transition.
4. There are challenges however, and brokers need to be aware of these to have informed conversations.
7. National Greenhouse Gas Inventory Quarterly Update: March 2021 - DCCEEW
8. Pathway for zero emission vehicle transition by 2035 becomes law - GOV.UK (www.gov.uk)
9. Policies to promote electric vehicle deployment – Global EV Outlook 2021 – Analysis - IEA
10. The current state of EV consideration among Australian consumers - business.carsales.com.au
11. Damning figures expose inflated EV repair costs | CarExpert
Transitioning to an EV fleet: the business case
Moving to EVs requires careful planning – and it begins with a pilot project.
Today’s business environment – both in Australia and globally – is tough.
From supply chain difficulties and labour shortages to inflation affecting consumer spending and price rises making almost everything more expensive, margins are tight and challenges are plentiful.
Add to that an increasingly litigious business landscape, and it’s easy to understand why projects that don’t appear day-to-day urgent – such as the transition to an EV fleet –can fall down the list of priorities.
However, the role of a business and risk adviser is to keep a focus on the medium-long-term, too – and for businesses with fleets, that includes the transition to new energy vehicles.
Not every business will be ready to transition right now, so it’s important to identify the most opportune organisations in the portfolio.
“There are definitely businesses that are easier transitions and those that are more difficult to transition right now,” says Georgina Turner, Divisional Sustainability Manager –Customer and Operations at Allianz.
“For example, businesses that drive locally every day, and return the vehicles back to base every night, are prime candidates to transition now.
“However, businesses that rely on light commercial will find it difficult as the right vehicles aren’t necessarily available yet, as will businesses that have vehicles that travel long distances each day and don’t return to one central location every night.”
The transition to EVs
The use of EVs in Australian businesses is growing, with a 2023 report finding 40% of business fleets are now ranked as ‘mature’ on the EV adoption index.1 While making a positive contribution to the planet is a great motivator, there’s also customer demand to consider.
Research shows that when Gen Z and Millennial customers believe a brand cares about its impact on people and the planet, they are 27% more likely to purchase it than older generations. 2
“We are in an increasingly conscientious marketplace, and the customer sentiment to brands and businesses that prioritise ESG is extremely positive,” says Anastasia Martinez, Senior Environmental Specialist at Allianz.
“Consumers are becoming more aware regarding the impact of their purchasing decisions, and are actively seeking out companies that demonstrate a commitment to sustainability.”
Of course, there are other factors at play, too, with government incentives and disincentives across the globe encouraging individuals and businesses to transition to EVs.
In Australia, the EV Discount policy – pending eligibility – means EVs purchased by companies and/or through salary sacrifice are exempt from Fringe Benefits Tax (FBT). 3
“We are in an increasingly conscientious marketplace, and the customer sentiment to brands and businesses that prioritise ESG is extremely positive.”
“Bringing electric vehicles into the vehicle fleet makes sense for businesses that are looking for ways to lower costs and reduce their environmental footprint,” says Samantha Johnson, CEO of the Electric Vehicle Council.
“EVs have significantly lower fuel and maintenance costs compared to petrol and diesel vehicles, and attract government financial incentives that can offset upfront costs. EVs also produce lower carbon emissions, helping businesses demonstrate their commitment to sustainability.
“On top of this, offering EVs as company vehicles can be an attractive perk for workers that can help businesses differentiate themselves.”
The EV sector continues to evolve rapidly, so businesses that are prime for transition would be smart to start making plans.
There’s a lot to consider, and a pilot scheme can help identify issues, evolve thinking and establish policies and procedures for the future.
Preparing for change
At Allianz Australia, Turner has been heavily involved with Allianz’s own transition to EVs, and says there are a number of key considerations for every business.
Choosing the right EVs for the business
While over recent years the EV market in Australia has been relatively slim pickings when it comes to variety, availability and affordability, things are changing. More than 40 new models are becoming available in Australia during 2024,4 adding to the 99 that were available at the end of 2023. 5 By trialling different vehicles with drivers, businesses can identify the models that will best suit the needs of both the company and the drivers themselves.
Neil Parker, Head of Automotive at Allianz, says that supply is still an issue for certain types of businesses.
“At the moment, there’s very low supply of commercial EVs in comparison to, for example, sedans, and that’s something to be mindful of when speaking with businesses.”
Identify your ambassadors
A select group of drivers should be invited into the pilot scheme – and these drivers should be the most likely advocates. For a successful EV transition, businesses need EV ambassadors when the vehicles are introduced more broadly, and by bringing key people ‘along for the journey’, businesses recruit the ambassadors that can help make the project a success.
Driver familiarisation
While EVs are vehicles and driving them is a largely similar experience, the torque and the lack of engine noise are two significant differences, which require familiarisation. Having a structured program in place to ensure drivers are comfortable behind the EV wheel is important.
The charging network
Many of the questions businesses need to answer about introducing EVs revolve around charging. Is the business a ‘back-to-base’ operation with shorter, more local journeys? If so, an on-site charging network where vehicles can be charged overnight is straightforward.
It becomes more complex when employees have vehicles full time, or take them home overnight – or travel and have overnight stays. Do you install chargers at employees’ homes? What happens if they move to another company? What about if they rent, or they live in a strata building, or an inner city home with no off-street parking?
From an insurance perspective, where does indemnification start and end?
Clients should start with the more easily solvable scenarios. For example, build policies for full-time employees that own their own home and have been with the company for more than 12 months, and recruit the pilot team from that cohort.
Once those policies have been established, more complex scenarios can be tackled.
The key here is incremental transition.
Reimbursement policies
Similarly, how do businesses track and reimburse employees that charge at home?
Making the business case
The business case for introducing EVs has to be linked to environmental, social and governance (ESG) targets and reduced emissions, and these will differ from business to business.
Upfront costs (once the sale of the fleet vehicles the EVs are replacing are taken into account) need to be offset against:
• savings in fuel costs
• maintenance savings
• other costs, including insurance.
When it comes to fuel, it costs the average Australian driving a petrol or diesel car around $0.20/km, while fuelling an EV costs $0.04/km. If travelling 12,000km per year, it would cost an EV driver $500, in comparison to the $2500 for a petrol or diesel vehicle.6
That means that with a fleet of 10 vehicles, a business could immediately save $20,000 on fuel alone.
Turner says, “As time goes on, things will become easier, and the opportunity now is to tackle all of these little challenges so by the time we get to 2030 we’re actually in a great position, and we’re only just having to transition the last few really hard use cases, rather than starting the transition process.”
Part of the business case is telling the sustainability story – and businesses need to be careful to avoid accusations or perceptions of greenwashing, as things aren’t always as linear as they may seem.
Chris Jones, President of the Australian Electric Vehicle Association, says, “The emissions savings in operation are
vast, and it only takes about three years for the EV and the petrol or diesel vehicle to come out equal in terms of emissions – and then from there the EV is better.
“It’s important, however, to also consider the emissions associated with manufacturing the vehicles. Like anything in modern life, it takes emissions and energy to produce something, and to produce EVs, the emissions are up to about 40% higher than a petrol equivalent.”
For brokers, the opportunity is to help those clients who have not started their EV journey to identify opportunities for a pilot EV project.
For those that have begun, the challenge is to learn, evolve and plan the next steps of EV transition.
1. Australian Business Fleets Driving the Transition to Electric Vehicles - AfMA
2. Research: Consumers’ Sustainability Demands Are Rising (hbr.org)
6. Will I save money by owning an electric vehicle in the long run? - Electric Vehicle Council
Tips for brokers
1.
Help clients start with a small pilot project –covering about 5-10% of their fleet.
2. Select users based on ease of transition – for example, those who return the vehicle to base every night, or those who own a property with off-street parking.
3. Consider which employees will be the best ambassadors for the pilot project.
4. Form a working group to establish policies and procedures, and identify any aspects that need to be addressed as the pilot progresses.
Addressing EV concerns
While there are many positives to EVs, there are still concerns about batteries, range and repairs. How big a problem are these issues in reality? And what are some of the other blockers?
Formany businesses, introducing EVs into their fleet will make sense.
Prices are coming down, running costs are more efficient, and then there’s the positive ESG story to tell to customers, stakeholders and shareholders alike.
However, there are some concerns which, regardless of where you are on the EV spectrum, need to be addressed.
Common risks that lie ahead
One of the most-talked about risks linked to EVs – and consequently one of the talking points broker clients and their teams will likely raise – is surrounding battery fires.
Statistics show that from 2010 to June 2024, there have been 511 verified EV traction battery fires globally,1 and in Australia there have been six EV battery fires from the 120,000 EV vehicles on the road as of 2023 – three of which were due to ignition from a fire nearby. None of the fires occurred when the vehicles were charging. 2
Chris Jones, President of the Australian Electric Vehicle Association, says, “I think our current battery technology is very good. It’s also quite mature in that we know how to make it work. We know how to get the most out of it.
“The battery of an EV is incredibly tough. You would have to have a very serious, life-threatening crash for the battery to be genuinely traumatised. At that point, you’ve got a whole bunch of other problems that are more important than the battery.
“Now the only exception is driving over a very large metal object – there is a genuine risk that the battery will be permanently damaged when that happens. There’s also a very genuine risk that your regular petrol car might be seriously damaged if you did exactly the same thing.
“They put six-millimetre bash plates, solid metal bash plates, underneath the batteries, to ensure that it would have to be a very extraordinarily, exceptional intrusion for a fire to start.”
A different driving experience
Another concern for drivers revolves around a different driving experience, as well as range and charging anxiety.
As far as driving experience goes, however, it’s limited to subtle differences.
“Electric vehicles are as simple and intuitive to drive as petrol and diesel vehicles,” says Samantha Johnson, CEO of the Electric Vehicle Council.
“They are not complicated and do not require specific knowledge other than how to charge, which is very simple. Basic training on charging and owning an EV should be part of any EV handover.”
Matthew Millener, Head of SME and Dealer Commercial at Allianz, agrees, and highlights the need for familiarisation sessions when introducing EVs into a fleet.
“While EVs are very similar to ICE vehicles in terms of driving experience, there are some subtle differences.
“The lack of noise, for example, can take people by surprise, as can the instant torque – while regenerative braking is a different experience to driving an ICE vehicle.”
Chris Wood, Emerging Risks Manager at Allianz, says that according to anecdotal evidence from across the global Allianz Group, EVs are most likely to be in a collision within the first three months of ownership.
“However, it’s often not the primary driver who’s behind the wheel when an event occurs,” explains Wood. “It’s typically someone else from the business who’s not familiar with the vehicle, and they’ve experienced a different reaction to what they’re used to when they’ve put their foot on the accelerator.”
Range and charging anxiety
Range and charging anxiety are very real issues for drivers contemplating an EV purchase – however, a number of studies show that anxiety decreases with ownership.
Johnson says, “Range anxiety and upfront costs are often cited as hurdles to EV adoption, but these concerns are easing as average commutes are well within the range of all EVs available, charging networks have expanded, access to home solar and time-of-use tariffs have improved, and more models at more affordable prices have become available.”
“Electric vehicles are as simple and intuitive to drive as petrol and diesel vehicles.”
The charging infrastructure in Australia continues to grow – there was a 75% increase in charging locations from 2022 to 20233 – and by focusing on those businesses whose fleet does shorter journeys and returns to base every day, those issues can be managed effectively.
One challenge that will need to be addressed is a common one affecting many businesses across the country. Namely, the skills shortage, which is impacting EV repairs.
Jones says, “The difficulty right now is also when it comes to getting a repair done, you might be waiting six months because we’ve got a shortage of skilled workers who can panel beat any vehicle, never mind workers who’ve done the EV depowering and repowering course.”
Millener says that’s a key reason to partner EV clients with insurers who have a reliable repair network.
“Getting vehicles back on the road quickly and safely after an incident is a key part of the insurance value proposition, and by partnering with an insurer with knowledgeable assessors and a reliable, quality repair network, brokers can help clients manage that element of risk.”
In general, there is misinformation circulating about EVs, and Johnson says, “Misinformation is hampering the electric vehicle transition. The facts are that EVs are cheaper to own and run than petrol and diesel vehicles, they reduce air pollution and they’re essential to reducing our carbon emissions.”
1. JUNE 24 EVFS Stats (evfiresafe.com)
2. How many EVs have caught fire in Australia? (youtube.com)
The Electric Vehicle Council helps us bust some EV myths.
Myth Reality
EVs don’t have enough driving range
EVs are not more environmentally friendly than petrol or diesel-powered cars
Today’s EVs have enough battery range to meet the average Australian’s driving needs for over a week.
Background: Current EVs have an average battery range of around 400km but the technology is advancing so rapidly that some new models can drive for over 600km on a single charge.
The average Australian drives 38km per day, so an EV owner can go for at least 10 days without a recharge. Unlike petrol cars, you can recharge at home or anywhere with access to electricity.
When considering the entire lifecycle emissions of making, owning and recycling a car, EVs produce fewer emissions than petrol, diesel or hybrid vehicles.
Background: There are emissions associated with the making of any vehicle. Emissions from building EVs is generally higher than petrol and diesel vehicles, when including the battery. Despite not having a combustion engine and all the other related components, batteries are energy-intensive to produce. These processes continue to improve and these additional emissions are more than offset over the life of the vehicle.
Unlike petrol, diesel or hybrid vehicles, EVs have zero exhaust emissions, and even when charged using the current electricity grid in Australia, produce fewer lifecycle emissions. The emissions from EVs sold today will continue to improve over their lifetime as more renewables are introduced to the electricity grid.
It’s also important to recognise that EV batteries can be used after their useful life in a vehicle (expected to be around 15 years). EV batteries can find a second life powering homes, buildings or even the grid, and are expected to last around another 10 years in these applications. After around 25 years in total, these batteries can then be recycled to create brand-new batteries, moving us closer to a circular economy.
Check out the EVC’s Life Cycle Emissions Calculator Tool to compare emissions from different vehicles.
In the long run, motorists can save thousands of dollars in fuel and maintenance costs when they own a fully electric vehicle compared with petrol or diesel cars.
EVs won’t save people money
There isn’t enough charging infrastructure to support EVs in Australia
Background: Battery EVs don’t need any petrol or diesel but are instead charged with electricity. The average Australian drives around 12,000km per year and spends around $2500 on petrol. This equates to around $0.20/km.
On average, an EV travelling 12,000km each year would cost around $500 to charge ($0.04/km). Further savings can be made by an EV user with access to home solar or off-peak tariffs, which could reduce annual energy costs to as little as $200.
It is important for prospective EV owners to consider their driving habits, government incentives, taxes and charging availability to fully understand the savings of driving an EV compared to a petrol or diesel vehicle.
EVs have lower running costs than petrol, diesel or hybrid vehicles since they have fewer moving parts, and have fewer components that require servicing.
For some EV models, owners are estimated to save between $300-$400 every year in maintenance costs compared to an equivalent combustion engine vehicle.
While most charging generally takes place at home or work, there is still an important need for public charging infrastructure so it’s encouraging to see the national network is rapidly expanding.
Background: Most people do the majority of their charging at home, but access to public EV charging is necessary for most drivers some of the time, and for some drivers all of the time.
Private companies and Local, State and Federal Governments are investing in and co-funding the construction of an expansive charging network right across the country.
The number of high-power charging locations increased from about 800 at the end of 2023 to over 1,000 by mid-year 2024. This represents an increase of 25% in six months and a deployment rate averaging better than one new high-power charging site every day.
Based on continued investment from the public and private sectors, we are confident that the rollout of public charging equipment will keep pace with the uptake of the vehicles and that the EV driver experience of public charging will continue to improve.
To get further insight into where public chargers have already been installed around Australia, take a look at PlugShare.
EVs are incredibly safe to operate and charge, with tens of millions of EVs being driven globally.
EV fires are very rare, with global evidence showing that petrol/diesel vehicles are at least 20 times more likely to be involved in a fire.
EVs are not safe
Background: EVs contain high-quality lithium-ion battery cells and sophisticated battery management systems. Importantly, most EVs have also been awarded five stars under Australia’s ANCAP crash testing program.
The path forward –and the roadblocks to overcome
There are still questions that we need to find answers to – and businesses across Australia have a key role to play.
Australia’s New Vehicle Efficiency Standard comes into effect on 1 January 20251 and in some respects, marks the beginning of the next chapter of electric vehicles in Australia.
The standard will reduce emissions from new passenger vehicles by more than 60% by 2030, and roughly halve the emissions from new light commercial vehicles, too. It will also provide $95 billion in fuel cost savings, and reduce CO2 emissions by approximately 321 million tonnes by 2050. (Globally, the widespread use of EVs is projected to eliminate 2 Gt of CO2 by 2035. 2) “The New Vehicle Efficiency Standard will provide Australians with more fuel-efficient car options,” says Samantha Johnson, CEO of the Electric Vehicle Council.
“By 2050, motorists are projected to save about $95 billion in fuel costs, and greenhouse gas emissions are set to reduce by about 321 million tonnes.”
With the new standard being introduced, availability of EVs – which has been growing significantly over recent years – is expected to increase, while public charging stations have almost doubled in just 18 months.
Building that infrastructure is crucial, as is incentivising people and businesses to use EVs as opposed to the petrol or diesel alternative, if the desired environmental benefits are to be realised.
Where does the power to power EVs
come from?
One of the big questions that needs to be answered to achieve the projected benefits of mass EV adoption surrounds energy: namely, the capacity of the grid – and production of the power.
Each year, an average EV travelling 12,000km per year will use 2000kWh of energy. Every house uses around 4000-8000kWh per year. With more than 20 million vehicles on the road3 – and a growing population4 – it’s a major challenge.
“By 2050, motorists are projected to save about $95 billion in fuel costs, and greenhouse gas emissions are set to reduce by about 321 million tonnes.”
“There’s going to need to be significant consideration with regards to stabilising the infrastructure for electricity in this country,” says Andy Doran, General Manager –Underwriting at Allianz.
“Every country will face that challenge, but it may not be as problematic elsewhere given the appetite for renewable energy elsewhere in the world.
“In Australia, we’re still attached to coal-fired power generation, which isn’t going to help realise the environmental benefits of using EVs. It’s going to take strong alignment between federal, state and local governments to resolve.”
Chris Jones, President of the Australian Electric Vehicle Association, says it’s important to remember vehicles are only as clean as the energy that supplies them.
“The good news is that our energy is becoming increasingly renewable, but the government does have a large role to play in making sure that future grid generation is coming from zero or low-emission sources.
“Businesses and households have some control over that, too, in that they can have solar on the roof, or choose to charge their car during the middle of the day when we know that the grid is dominated by renewables.”
A dual fuel future?
For those businesses that rely on large vehicles undertaking significant journeys, electric vehicles may not prove a solution. Although manufacturers – notably Toyota and Hyundai – have developed hydrogen models, they’re yet to make an impact here in Australia. However, they
could play a major role for many businesses in the future.
Professor John Rose from the University of Sydney, says one of the missing key policy areas is around freight.
“At the moment, we don’t have battery technology to be able to move long-distance trucks. The larger the vehicle, the bigger the batteries you need, the heavier the vehicle, the less distance it can travel. The likelihood of seeing electric heavy articulated trucks going from Sydney to Melbourne or Brisbane to Melbourne anytime soon is near zero.
“If you look at the bus industry, they’re split 50/50 between hydrogen buses and electric vehicles.
“So the question then becomes, are we getting into a position where we’re going to be having two sets of infrastructure? We need to set up infrastructure around charging for electric vehicles, and infrastructure around hydrogen for some passenger vehicles, but also heavier vehicles.”
Given the government’s investment in the national charging network has also seen it announce plans for ‘hydrogen highways’, the government seems to believe this is a more than likely scenario. However, CSIRO’s Rapid Decarbonisation scenario assumes more than half (56%) of long-haul road transport is electrified by 2050, with the remainder using low or zero-emission hydrogen. 5
Can we access the data to make the transition successful?
Data is critical for many things in the world today, and it’s critical to the evolution of EVs.
Independent research into EV usage is relatively scarce, says Rose.
While manufacturers collect and harvest every last fragment of information from each EV, it’s closely guarded. This makes it challenging for other stakeholders to deeply understand certain aspects, which consequently has implications for many stakeholders – owners, businesses, repairers, manufacturers and insurers alike.
Rose says, “The companies that have all the data are the manufacturers, so they monitor every movement, but they never release it.
“We have very, very limited data on EV usage, which is going to pose a potential challenge as EVs evolve. We could see a scenario in the future where you pay as you drive on an individual level, for example, because the manufacturer understands the driver’s risk profile, when and where you travel, and everything about how you are and what you do behind the wheel.”
Do businesses have a moral obligation to switch to EVs?
The general public often takes cues from businesses. By seeing more EVs on the road, the concept is normalised, demand is increased and subsequently so is production.
And, while governments and authorities have a major part to play in achieving mass adoption, businesses have an opportunity to take the lead.
But do they also have an obligation – albeit a moral one –to help the EV transition build further momentum?
Quite possibly.
“In years gone by, a strong environmental, social and governance (ESG) policy and the achievement of ESG goals was a nice to have – today it’s a must-have.
“Businesses are now a lot more deliberate around how they build their businesses – good businesses make sure they’re doing the right thing, and act as a good corporate citizen, in terms of how they treat employees, treat stakeholders and treat customers.
“So, yes, I do think businesses have a moral obligation to start this transition, because the general public will see businesses moving that way and see that it’s probably a good thing to follow them, too.”
Generating revenue through EVs
Professor Rose says a number of trials are in progress that put power from EVs back into the grid – potentially turning every company into an energy company.
“A lot of the electric vehicles today enable you to take power from the electric vehicle and put it back into the grid – you can set it up so it draws power from the grid when it’s off-peak and cheap, and when it’s peak and more expensive, it can put energy back into the grid.
“For example, a winery in South Australia had a simple electric vehicle. Their electricity bill was $6000 a year, and by using their EV to put electricity back into the grid, they went from a $6000 spend to making a profit of $50 per week.”
The implications for transport companies, for example, could be significant.
“If you think about a bus company, where you might have buses sitting in a depot not doing anything for a significant period of time, they could actually be putting energy into the grid and providing income sources.
“In five years time, they may no longer be a bus company – they will be an energy company.”
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CHALLENGES EQUAL OPPORTUNITIES IN THE WORLD OF MERGERS AND ACQUISITIONS
Emerging risks are pushing out timelines, pushing down prices – and creating more opportunities for brokers to add significant value in the mergers and acquisition (M&A) process.
By MARTIN WANLESS
From mortgage increases and rent rises to the inflated cost of a trolley of groceries at the supermarket, we’re all experiencing the impact of the current economic crisis. And, in the world of mergers and acquisitions, things are no diferent. Throw into the mix political uncertainty, market volatility and regulatory changes and compliance, and M&A is a challenging area for brokers, insurers and businesses alike.
That hasn’t halted M&A activity – in fact, far from it – but it has increased the risks that are attached. And, while in the supermarket we’re seeing costs increase, a higher cost of debt is pushing valuations down.
“While the current broader market for M&A transactions in Australia has
seen considerable resurgence from the drop-of that occurred in 2023, we have seen valuations and purchase prices in transactions reduce compared to a few years ago,” says Johann Spies, Principal at McCabes Lawyers.
“Higher interest rates make M&A more difcult than during periods of low interest rates, given that low interest rates reduce the cost of debt, and cheap debt fuels M&A activity.
“The comparatively higher interest rate environment impacts the cost of debt for acquirers and has the knock-on efect of increasing the cost of transactional insurance.”
As well as the economic challenges the world’s facing, there’s also significant market volatility, including geopolitical
tensions, supply chain issues and general uncertainty and instability. Given the potential and real impact on businesses, this can all lead to a misalignment in valuations, which may prompt strategic hesitations.
“Economic instability often leads to market volatility, making it challenging for companies to predict future performance, which heightens the risks associated with M&A transactions,” says Anita Vivekananda, Client Director and National Practice Leader –Transaction Solutions, Pacific at Aon.
“This also afects buyers – they become more cautious and seek lower prices, while sellers may hold out for higher valuations, leading to a potential mismatch in expectations.”
These challenges mean that there’s a greater deal execution risk than there has been in recent times, says Geofrey Lee, Regional Manager Liberty Global Transaction Solutions for Asia Pacific.
“Deals are either falling over or being delayed for extended periods, with
commercial issues including price, a significant sticking point,” he says.
“There have been a number of new entrants into the market at a time of depressed M&A activity, and deal execution risk is putting significant pressure on rates and coverage.”
MORE REG LATION, MORE RISKS
An increasing challenge for insuring M&A activity comes thanks to recent changes to the regulatory environment, with any potential acquisition needing to pay close attention to the impact of the regulation on the target business, and risks relating to how it has been implemented.
Mathew Kaley, Principal at McCabes Lawyers, says, “ASIC has materially increased its enforcement activity on these changes in the last 12 months and, in its recently released Corporate Plan, signalled a particular focus on the design and distribution of insurance products, claims handling services and complaints management.
“HIGHER INTEREST RATES MAKE M&A MORE DIFFICULT THAN DURING PERIODS OF LOW INTEREST RATES, GIVEN THAT LOW INTEREST RATES REDUCE THE COST OF DEBT, AND CHEAP DEBT FUELS M&A ACTIVITY.”
– JOHANN SPIES, PRINCIPAL AT MCCABES LAWYERS
“We’ve been looking at these points early on in the transaction for clients, given the potential impact they can have on the deal.”
Environmental, social and governance (ESG) is another challenge that is pushing timelines, introducing additional risks and increasing due diligence and costs.
“With more regulations and pushes for transparency and companies required to meet strict ESG guidelines, it means more research and verifications need to be undertaken to ensure everything is aligned from an ESG perspective,” says Vivekananda.
“As a result, M&A transactions take longer as buyers need to make sure the target is up to the ESG standards within their investment guidelines, in terms of environmental impact, social responsibility and governance practices.”
An additional challenge related to ESG, says Robert Speed, Principal at McCabes, is that many ESG issues are likely to be qualitative, rather than quantitative.
“ESG issues are likely to, on balance, extend transaction timelines as acquisition due diligence places greater emphasis on ESG-related risks of target businesses. This is probably exacerbated by the fact that ESG by its nature involves qualitative assessments more often than quantitative, requiring ‘judgement calls’ to be made, which are generally more time-intensive.
“ESG matters also flow through into the transaction documentation, where identified risks become the subject of specific contractual protection and/or carve-outs, which inevitably leads to more protracted negotiations. The overall result is that ESG matters are another headwind facing M&A activity right now.”
All of this combines, says Lee, to give buyers more power in negotiations.
“We are seeing significantly more bargaining power with buyers over sellers at present compared to the M&A boom in 2021. This has resulted in more varied negotiated outcomes where buyers have been able to obtain seller indemnities and earn-outs more often than before.”
THE BROKER ADVANTAGE
Brokers are playing an ever-more integral role in the M&A process, says Spies.
“Helping clients with the right insurance solution can be crucial to ensure not only that the client minimises their exposure posttransaction, but these solutions can often be critical to parties coming to a commercial agreement where risks are identified.
“Brokers should keep in mind that not all parties to M&A transactions are always fully aware of the potential insurance solutions that are available in these transactions, and while a party may be aware of traditional warranty and indemnity insurance, they
TOP 10 BREACHES
ACCOUNTING & FINANCIAL
CONDITION OF ASSETS
* From Liberty Global Transaction Solutions’ 2023 M&A Claims Briefing 1 2 3 4 5 6 7 8 9 10 TAX COMPLIANCE WITH LAWS
MATERIALS CONTRACTS LITIGATION IP
EMPLOYEE RELATED
ENVIRONMENTAL PERMITS, LICENCES & CONSENTS
may not be aware of bespoke insurance –for example, contingent risk insurance –that could benefit the transaction.”
Vivekananda agrees, and says it’s important for brokers to work closely with clients to identify potential risks early in the process.
“This includes conducting thorough due diligence, assessing regulatory compliance, and evaluating the impact of market volatility on the transaction. By anticipating potential issues, brokers can help clients develop strategies to mitigate these risks and ensure a smoother transaction.”
And it’s important to remember that the completion of the deal marks only the end of chapter one.
“Successfully integrating two companies post-merger is another significant challenge,” says Vivekananda.
“Clients often need assistance in managing the risks associated with combining operations, cultures, and technologies. This is where insurers can ofer tailored solutions to protect against potential disruptions, while brokers can help clients plan and execute a smoother integration process.”
BREAKDOWN OF MEDIUM AND HIGH-SEVERITY CLAIMS BY BREACH TYPE
New risks emerge AS CAPACITY OPENS UP IN D&O
How are insurers responding to new risks in the Directors & Ofcers (D&O) market?
By MARTIN WANLESS
Roll the clock back five years, and the D&O market in Australia was very diferent to the one you find today.
Back then, shareholder class actions were providing a major headache, and many insurers had exited the market after sufering serious portfolio losses.
Publicly listed companies were struggling to find cover, and the conversations brokers were having were difcult – the choice was reducing cover or wearing significant rate rises.
Today, however, the D&O landscape is very diferent – with insurers and capacity returning to write Australian D&O risks.
“As is always the case in D&O insurance, the environment is constantly evolving, and there has been a change in the tide of shareholder class actions,” says Meredith Lieu, Australian Commercial D&O and Crime Portfolio Manager, Liberty Specialty Markets.
However, Lieu warns things could be about to change once more.
“Recent changes to continuous disclosure laws by the Australian Government, which remove the requirement for ASIC to prove fault elements in civil penalty proceedings, we may see a more aggressive regulatory approach taken,” she says.
FACING UP TO NEW RISKS
Businesses in Australia – and around the world – are facing a wave of new risks, and those risks won’t come as a surprise to anyone who reads Insurance Adviser or any other business publication regularly. Cyber security, AI, and ESG – as well as the general financial uncertainty – are all risks that are increasingly impacting D&O.
“Over the past 6-12 months there has also been an increase in coverage required on D&O policies to include increased cyber and AI cover,” says Corey Cavanough, Senior Claims Consultant, Crawford TPA/HBA Legal.
“With the rapidly growing use of AI and increasing cyber attacks on businesses of all sizes, a challenge for D&O insurance is to stay attuned to these risks to ensure the D&O policy maintains relevance and provides appropriate coverage terms, but balances sustainable practices.”
Kate Greaves, General Insurance Director, Goldsworthy, says pressure from multiple sources is leading to big adjustments.
“In the past six months it’s been tough for companies – they’re continuing to face tough challenges and economic uncertainty, and the changing markets and
inflation makes decision-making harder. They’ve had to keep up with new rules on corporate governance and environmental issues, while also boosting cyber security to prevent attacks. There’s more pressure to meet expectations on environmental and social responsibility, which often means big adjustments.”
Wendy Finianos, Guardian and Principal at ATKA Insurance Brokers, has concerns about how prepared the industry is to face these emerging risks.
“Insurers, as it stands, may be ready for a few of the risks, but others may fall under the exclusion section due to unpredictability, the speed of change and the slow reactions and updates from insurers.”
Insurers, in response, are taking a more cautious and compliance-focused approach, says Melanie Schulties, National Underwriting Manager – Commercial Institutions, Zurich Australia & New Zealand.
“Companies are increasingly investing in robust risk management and governance practices to reduce potential claims and enhance their attractiveness to insurers.
“The insurance industry is adapting D&O policies to cover these evolving risks, ofering specialised endorsements, standalone products, and comprehensive
risk management and advisory services. This proactive approach aims to provide better protection and support for directors and ofcers navigating the complex risk landscape.”
Lieu says that while there are more options for clients of D&O carriers, there are also considerable diferences in market understanding, cover and claims handling across the diferent insurers – which is important for brokers to be aware of.
“For example, Liberty has been writing the Australian D&O market consistently for more than 20 years, and this brings a depth of experience in our data and actuarial analysis. This helps us accurately price and forecast the market and respond to the latest threats and regulatory dynamics.”
As well as ensuring brokers partner with insurers who understand the market, it’s important to help clients understand their responsibilities, too.
Finianos says, “There is a lack of understanding of the directors and ofce bearers of their legal and reporting obligation.
“A number of claims rising from shareholders against the directors are due to mismanagement, failure to act in
“AS IS ALWAYS THE CASE IN D&O INSURANCE , THE ENVIRONMENT IS CONSTANTLY EVOLVING, AND THERE HAS BEEN A CHANGE IN THE TIDE OF SHAREHOLDER CLASS ACTIONS.”
– MEREDITH LIEU, AUSTRALIAN COMMERCIAL D&O AND CRIME PORTFOLIO MANAGER, LIBERTY SPECIALTY MARKETS
the best interest of the company and inaccurate reporting which leads to misleading financial results.”
INSURING DIRECTORS AND OFFICERS
Within the industry, there are difering opinions on whether the increased capacity and insurers entering – or reentering – the market have resulted in reduced premiums.
“Recent market dynamics have in some cases led to reduction in D&O insurance premiums,” says Schulties. “Key factors include heightened competition among insurers, improved risk management practices by companies, a slightly more favourable claims environment, tailored coverage options, and technological advancements.”
On the broker side of the fence, however, the market’s viewed diferently.
Greaves says, “Clients are facing higher premiums, potentially reduced coverage, and insurers are tightening their policy terms, making it more expensive and harder to get the protection they need. Insurers are being more cautious, often scrutinising policies more closely and raising prices to cover potential losses.
“Premium increases are forcing clients to look at their policies in detail, often opting for higher deductibles to keep premiums afordable, self-insuring and reducing coverage limits to lower costs, and moving cover to more afordable options. This makes it difcult to ofer quality advice, as our recommendations aren’t always afordable for our clients. We are noticing insurers are also adding more exclusions, meaning certain risks or claims may no longer be covered.”
Cavanough says, “There has been an increase in insurers structuring the policy to reduce the ofering of Side C coverage i.e., coverage for securities claims against the company.
“In fact, with the increase in premiums, clients themselves are beginning to seek policies that would provide Sides A and B coverage and would allocate the risk in alternative methods with respect to Side C coverage.”
THE EVER-EVOLVING AI THREAT
In terms of the emerging threats facing businesses and subsequently D&O, one of the most rapidly changing comes from the world of tech.
CASE STUDY CLAIM PAID, CLAIM NOT PAID
Claim paid: A company’s director is sued by shareholders because they believe the director made a poor decision that caused the company’s stock price to drop significantly. The shareholders claim that the director failed to properly manage the company’s risks, leading to financial losses. The director’s legal defence costs, as well as any settlement or judgement, could be very expensive. If the company has D&O insurance, the policy may cover these costs, protecting the director from personal financial loss. This allows the director to focus on the company without worrying about personal bankruptcy due to the lawsuit.
Claim not paid: A director was involved in a cyber breach but failed to implement the required security measures. The claim was denied because the policy excluded coverage for negligence in cyber security practices.
Case studies supplied by Goldsworthy
“With the ever-increasing use of AI and possibility of cyber attacks, insurers want to see that clients are developing and implementing appropriate safety measures relating to the use of AI, as well as processes to safeguard the confidential information of individuals,” says Cavanough.
“The reforms to the Privacy Act 1988 (Cth) are likely to present a further challenge to D&O insurance. The proposed amendments include changes to the civil penalties for privacy breaches with the introduction of low, medium and high tiers, based on the severity of the breach. There is also a new right for individuals to bring claims against organisations – and their directors – for serious or repeated privacy violations.”
CHALLENGES TO KEEP IN MIND
Lieu says that another important area of coverage that brokers should be mindful of is the insurability of fines and penalties – and subsequently, the extent of coverage under D&O insurance policies.
“INSURERS, AS IT STANDS, MAY BE READY FOR A FEW OF THE RISKS, BUT OTHERS MAY FALL UNDER THE EXCLUSION SECTION DUE TO UNPREDICTABILITY, THE SPEED OF CHANGE AND THE SLOW REACTIONS AND UPDATES FROM INSURERS.”
– WENDY FINIANOS, GUARDIAN AND PRINCIPAL AT ATKA INSURANCE BROKERS
“There appears to be a diference in opinion of coverage, particularly by overseas insurers, to paying civil fines and penalties within the scope of the policy. The vast majority of the insurability of fines and penalties fall within a grey area.”
Finianos says it’s vitally important to be as thorough as possible when assessing D&O risks, as is working in partnership with a good underwriter.
“Make sure to ask all the questions in one hit and don’t leave any stone unturned,” she says. “If in doubt, or you have an uneasy gut feel, let the underwriter know. With their experience and checks they can rule it out.”
One key to successful D&O coverage, however, is understanding – something which brokers can play a huge role in addressing. This applies to both their responsibilities, as well as their insurance coverage.
“Brokers can ensure their clients are well-protected by helping them to understand their risk profile and explaining the details of a policy such as its scope, limits and exclusions,” says Schulties.
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