Insurance Adviser - October 2020

OCTOBER 2020 INSIDE:

A NIBA Brokers’ Guide to Mental Health & Wellbeing

2020 NIBA VIRTUAL CONVENTION Brave New World: Navigating the Winds of Change

WE ARE YOUR VOICE

CONTENTS October 2020

ACN 006 093 849 ABN 94 006 093 849

FEATURES

Insurance Adviser magazine is the monthly magazine of the National Insurance Brokers Association (NIBA).

Insurance Adviser magazine is published by NIBA

Publisher

Dallas Booth, CEO, NIBA T: (02) 9964 9400 E: dbooth@niba.com.au W: niba.com.au

Communications Manager Tiffany Eastland

NIBA Editor Tanaya Das

Editorial enquiries

E: editor@niba.com.au

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

Design

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

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#NIBA2020: AN EXTRAORDINARY VIRTUAL SPECTACLE Designed just for you

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

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

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THE 2020 NIBA YOUNG PROFESSIONAL BROKER OF THE YEAR REGIONAL WINNERS Resilience and professionalism during adversity

NIBA.COM.AU / 3

CONTENTS October 2020

FEATURES

27 THE VALUE OF BROKERS

Deloitte Access Economics report

28 WORKERS COMPENSATION Challenges in a new era

36 PROFESSIONAL INDEMNITY What does the future hold?

IN EVERY ISSUE NIBA CEO welcome.................................... 6 Why be a NIBA member?.......................... 8 Representation........................................... 10 Forthcoming events...................................50

NEWS

Industry bulletin........................................ 12

PROFESSIONALISM

Clearly communicating broker fee .............14 COVID-19 accelerates roll-out of General Insurance Code of Practice......... 16

REFERENCE Community hub .........................................42 Insurer strength ratings ..........................48

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BROKERS’ GUIDE TO MENTAL HEALTH & WELLBEING This guide is brought to you through a partnership of Allianz and NIBA

FEATURES

A Culture of Mental Health................ 4 Battling Social Isolation in a Global Pandemic............................ 6 Champions of Mental Resilience.......8 A Roadmap to Workplace Wellbeing...............................................10

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CEO / Welcome

THE FUTURE OF INSURANCE BROKING

Y

ou may have seen a post on LinkedIn recently where Michael Duncan, Group Head of Underwriting Excellence at Zurich, responded to our promotion of the NIBA Virtual Convention by stating: “The industry is going through its first industrial revolution and the impact over the next three to five years is going to be extraordinary. I can personally see a world where up to 80 per cent of all transactions are effectively automated, we have pre-underwritten products for large swathes of customers that includes services. Distribution will be primarily digitised. How will insurance brokers provide insurance advice to their customers in the future?”

I responded to Michael’s post by confirming that these very issues and challenges will certainly be on the agenda for the Convention. I am really delighted we have a number of excellent speakers who will address these matters, including some tremendous external presenters and a range of industry professionals who are willing to share their experience and observations.

I have been thinking about the challenge of digital disruption for a while now. The fear has always been that some new player would come out of the woodwork and bring a whole new operating model that would seriously challenge the role of insurance brokers and seriously disrupt the insurance broking industry. So far at least, I am not seeing that happen.

But putting aside the idea of the big new player, there is no doubt that technology has been advancing rapidly in recent years and will continue to do so.

The first area where this is having an impact is in transaction processing. I do agree with Michael Duncan that a very significant number of transactions will be effectively automated, reducing the role of manual processing in the office. Many insurance broking firms are already adopting smarter, more efficient ways of processing transactions, and this will continue to occur as technology continues to develop and new processes are introduced.

The smart insurance broking firms will also be working towards developing the best possible Customer Relationship Management processes and systems, so they can understand their clients thoroughly, and be ready to anticipate the client’s needs before the client comes to the broker! This will also involve very smart adoption of data analytics – the gathering, processing and analysis of all relevant information on anything that could impact on the client’s risks and their risk financing needs.

I am sure these new systems and processes will also have an impact on the relationship between the insurance broker and the underwriter, but I am not close enough to that action to have a good feeling of how things might develop.

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I do believe, however, that it will be important for insurers and underwriters to have the capacity to discuss and negotiate the exceptional, the special, the different, and the factors that take many clients outside the standard underwriting process.

There will always be a need to sit down and discuss and agree the underwriting approach for a proportion of clients, and it will be interesting to see how that process develops. I hear suggestions that underwriting agencies have been more popular in recent times simply because they are prepared to have a good discussion with the broker about the client, their risks, and the preferred insurance program that is needed to finance those risks.

Ultimately, though, I do agree that significant change is happening at the present time and that technology is driving much of that change.

But I also see an important role for the insurance broker in the future – one of being the Trusted Adviser of clients in relation to their risks, risk management and risk financing, including insurance.

From everything I am seeing and hearing, clients will continue to want to have a personal relationship with their insurance broker and will want to work closely with their broker on risk and insurance challenges facing their business.

This is important when the insurance markets are difficult, but it is particularly important when a major event occurs, and the insurance policy is called upon to respond. That is when the insurance broker comes to the fore, to help the client gain the coverage and benefits that were agreed when the policy was taken out.

These and many other topics will be covered in detail at the 2020 NIBA Virtual Convention. I do hope you get a chance to experience our new approach – all from the convenience of your own home or workplace. I hope you can join me at #NIBA2020.

DALLAS BOOTH Chief Executive Officer, NIBA

NIBA / Member benefits

WHY NIBA MATTERS TO ME Members share why NIBA is important to them and the broking industry.

“Having an industry body that offers assistance for training and career progression, along with important industry news and updates, is incredibly essential to insurance brokers.”

KRISTY TEH Unicorn Risk Solutions WA Young Professional Broker of the Year Finalist

ABOUT NIBA OUR MISSION

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

OUR OBJECTIVES Representation

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

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Professionalism

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

Community

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

GET IN TOUCH!

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

NEWS / Representation

WE ARE YOUR VOICE!

NIBA is the voice of insurance brokers in Australia. We work with governments and regulators and we do our very best to promote the interests of NIBA members and their clients.

FEDERAL

New Insurance Inquiry

The Australian Small Business and Family Enterprise Ombudsman has commenced a new Insurance Inquiry.

The Inquiry will look into the availability and coverage of insurance provided to small businesses, the affordability of small business insurance, and the role of brokers in getting the right coverage.

NIBA has provided a detailed submission to the Inquiry and has outlined the role of insurance brokers, acting for and on behalf of clients. We have also explained the impact of insurance taxes and levies on insurance premiums, especially in New South Wales and Tasmania where the emergency services levies significantly increase the cost of insurance for small businesses.

More information about the Insurance Inquiry is available at: asbfeo.gov.au/ current-inquiries/insurance-inquiry

Design and Distribution Legislation

As previously advised, legislation to implement new obligations on insurers and distributors of insurance products has been passed by the Federal Parliament. ASIC has indicated that commencement of the new rules has been put back to October 2021. This is welcome, but there is no room for complacency here: the new rules will apply to every product that currently has a PDS attached to it.

NIBA is continuing to work with the Insurance Council of Australia to develop an understanding of how the legislation will work. This has been a slow process, but there has been progress. We are also aware that a number of insurers are making contact with brokers to discuss these matters directly. It will be unfortunate if insurers take a range of approaches to these matters.

The crucial thing for insurance brokers to

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consider at the present time relates to those firms who use “broker wordings�, or their own schemes - where the broker has been involved in the design of the policy and the development of the cover that is provided.

In these cases, the broker will need to work closely with the insurer/underwriter to determine how the Design and Distribution obligations will operate in respect of those policies, who will be responsible for the preparation of the Target Market Determination, and how the product review obligations will be implemented. You will most likely need to get legal support for this process, in order to ensure you are meeting the legislative obligations.

We continue to urge all members with broker wordings to look closely into these matters now.

the relevant underwriter. We also note that these are technical legal questions, and we strongly urge brokers to get legal support for this purpose.

Unfair Contracts Terms Legislation

Add-on Insurance Reforms

As previously advised, legislation which will apply existing unfair contracts terms legislation to insurance contracts has been approved by the Federal Parliament. These reforms were recommended by the Royal Commission and by the ACCC Interim Report on Insurance Issues in Northern Australia.

It is important to note that implementation of this legislation has NOT been deferred by the Federal Government.

The reforms will take effect in early April 2021. By that time all retail policies will need to be reviewed to identify and remove any potential unfair terms.

As noted above in relation to Design and Distribution obligations, where brokers have policies with their own wordings and cover, they will need to review the terms of cover and the wording of the policies to determine whether the policies might be caught by the Unfair Contract Terms legislation.

This should be done in collaboration with

Claims Handling as a Financial Service

NIBA provided a submission to Treasury earlier this year in response to draft legislation designed to implement the Royal Commission recommendation to make claims handling a financial service.

The draft legislation will make those handling claims under insurance policies on behalf of insurance companies to operate under an Australian Financial Services (AFS) licence. NIBA is pleased that the legislation will not apply to insurance brokers acting for and on behalf of their clients in relation to claims and related matters.

The government has undertaken consultation on Royal Commission proposals to ban virtually all forms of general insurance sold at the same time as a non-insurance product (for example, travel insurance sold when a customer purchases an air ticket or an overseas holiday, or insurance taken out when a rental car is hired).

NIBA has provided a detailed submission to Treasury indicating the proposed approach is far too wide. We have spoken with Treasury on this recently, and have been given an assurance that the main concerns have been taken into account in the drafting of the legislation.

NIBA will review the matter further when the bill is tabled in parliament.

Anti-hawking Reforms

One of the Royal Commission recommendations was to prohibit the hawking of financial products. The government has released draft legislation to implement this proposal.

NEWS / Representation

NIBA is concerned that the recommendation as drafted is likely to seriously impair the ability of insurance brokers to properly advise their clients on their business or other risks, and their insurance needs and cover more broadly.

NIBA has made a strong submission to the government to urge further consideration of this matter.

Proposals to Restrict the use of the Terms ‘Insurance’ and ‘Insurer’

The Royal Commission recommended clarification of the ability for ASIC to fully regulate funeral insurance, where serious misconduct had been identified. However, the government has taken a broader approach to extend restrictions on the use of the words ‘insurance’ and ‘insurer’.

NIBA has provided a submission to Treasury to challenge the government’s proposals, as they are not consistent with the Royal Commission recommendation in this area.

Last Resort Compensation Scheme

The Federal Government has published a consultation paper on the Royal Commission recommendation to establish a last resort compensation scheme.

This scheme is designed to respond to circumstances where AFCA makes an award against a financial services provider, but the provider has gone out of business and is unable to satisfy the award in favour of the client.

NIBA has provided a submission to the government indicating our preferred approach for the funding of the scheme. We will provide further information when it comes to hand.

ASIC

Product Intervention Powers

ASIC has released a consultation paper on the proposed exercise of its Product Intervention Powers in relation to add-on insurance products sold by motor dealers.

NIBA continues to have discussions with ASIC in relation to a number of aspects of the product intervention powers.

Internal Complaints and Disputes

ASIC recently issued Regulatory Guide 271 – Internal Dispute Resolution. It is a condition of every AFS licence that the licence holder have a system for managing and resolving complaints and disputes, preferably before they are elevated to AFCA. RG 271 reviews and updates ASIC’s requirements in this area. The new requirements take effect on 5 October 2021.

NIBA is carefully reviewing the new

Regulatory Guide, and we have written to ASIC to clarify a number of matters. We will provide information to members as soon as these issues have been resolved.

APRA

We again remind members that the person in every insurance broking firm responsible for providing data to APRA must review the new procedures set out on their website: apra.gov.au/apra-replacing-d2a Every insurance broking firm should by now have made arrangements for a key manager to have myGovID credentials and to appoint a Relationhship Authorisation Manager, in order to be able to continue to provide relevant reports to APRA. Information about myGovID is available at: ato.gov.au/General/Gen/myGovID/ Please note that the existing AUSkey arrangements were due to expire on 31 March 2020. New arrangements should have been in place prior to that date.

We again strongly urge all members to become familiar with the new requirements, and start to develop procedures to implement the new system.

NEW SOUTH WALES

The NSW Parliament has conducted an inquiry on the operation of the workers compensation scheme in July 2020. NIBA did not make a submission to the inquiry on this occasion.

NIBA has been very active in recent weeks making submissions to a number of Federal and State inquiries into the summer bushfires.

This included appearing before a Senate Committee looking into the bushfires, where we took the opportunity to stress the inequitable and unfair nature of the Emergency Services Levy in NSW. More broadly, our goal has been to point out the unfair and inequitable impact of the emergency services levy on insurance premiums, and the resulting impact on underinsurance and non-insurance.

This constitutes a massive loss for the people involved, and for their communities.

General Insurance Code of Practice The Insurance Council of Australia has released the new 2020 General Insurance Code of Practice, which is available at:

codeofpractice.com.au The new General Insurance Code was formally launched in February 2020. Code subscribers were required to implement a family violence policy by 1 July 2020, and the Insurance Council of Australia announced that insurers were aiming to implement vulnerable persons and distressed client provisions from 1 July 2020. The remainder of the new Code will formally take effect on 1 July 2021.

Any insurance broker operating under a binder on behalf of insurers will need to undertake training on the new Code of Practice and to implement procedures to adopt the General Insurance Code in respect of those operations. This is particularly important for the new Code provisions relating to vulnerable persons and clients in distress.

The new General Insurance Code also contains new provisions dealing with insurance and mental health, disclosure of information and the sale of insurance products through motor dealers.

A summary of key features of the new General Insurance Code of Practice is available at: insurancecouncil.com.au/assets/media_ release/2019/311019%20Key%20features%20 of%20the%20new%20General%20 Insurance%20Code%20of%20Practice.pdf

Insurance Brokers Code of Practice

The review of the Insurance Brokers Code of Practice is continuing. The NIBA Board of Directors has had detailed discussions in relation to the content of a new Code of Practice for insurance brokers, and these discussions will continue in the near future.

NIBA will then seek the views of members on the operation of the Code of Practice, and the future development of the Code, taking account of what is happening in other areas of financial services, the recommendations of the Royal Commission, and the work done by the Insurance Council of Australia in its review of the General Insurance Code of Practice.

AFCA Datacube

AFCA is now publishing quite detailed information about the complaints and disputes it receives, including information regarding complaints to specific companies.

The AFCA Datacube is available at: data. afca.org.au/at-a-glance

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

NIBA.COM.AU / 11

NEWS / Industry bulletin

JUDGEMENT IN UK COVID-19 BUSINESS INTERRUPTION TEST CASE

T

he British High Court has ruled in favour of the arguments advanced for policyholders on the majority of key issues raised by the Financial Conduct Authority’s (FCA)’s business interruption insurance test case.

Christopher Woolard, Interim Chief Executive of the FCA, said, “We brought the test case in order to resolve the lack of clarity and certainty that existed for many policyholders making business interruption claims and the wider market.”

The British Insurance Brokers Association’s official statement read, “Looking forwards, it is important that we have a solution so that customers can be protected in the event of another pandemic.

It is our belief that a public-private partnership would be the best means.”

Paul Lewis, Partner and Global Head of Insurance Disputes at Herbert Smith Freehills, who led the case believes that this is a really significant judgment.

He said, “The decision should bring welcome news to a significant number of policyholders who will need to read the judgment carefully and see how the principles laid down by the Court apply to their particular policy wording.”

Woolard added, “Insurers should reflect on the clarity provided here and, irrespective

of any possible appeals, consider the steps they can take now to progress claims of the type that the judgment says should be paid.

They should also communicate directly and quickly with policyholders who have made claims affected by the judgment to explain next steps.”

Association of British Insurers DirectorGeneral, Huw Evans, said, “This is a complex judgment spanning 162 pages and 19 policy wordings and it will take a

little time for those involved in the court case to understand what it means and consider any appeals. Individual insurers will be analysing the judgment, engaging with the regulator, taking account of the appeal process and keeping their customers informed in the period ahead.”

“Insurers always regret any contract dispute with their customers and will continue to reflect on feedback from recent events.”

AUSTRALIAN BUSINESS INTERRUPTION TEST CASE HEADS TO THE NSW COURT OF APPEAL

A

test case launched by the Insurance Council of Australia (ICA) to examine the application of certain infectious diseases exclusions in business interruption policies will be heard by the NSW Court of Appeal.

ICA CEO Andrew Hall, said, “ICA legal representatives and the plaintiffs’ solicitors provided a joint motion that the combined test case be moved to the NSW Court of Appeal and expedited.

The test case consists of two separate small business claims that were lodged with the Australian Financial Complaints

Authority (AFCA) as part of its dispute resolution process. NSW Supreme Court Justice David Hammerschlag granted a joint motion by legal counsels to move the case to the Court of Appeal. The Court of Appeal hearing is due to start on Friday, 2 October.

The ICA has indicated that AFCA will use the outcomes of the test case in determining complaints arising in respect of business interruption claims with the infectious disease exclusion.

Hall added, “The pandemic and resulting uncertainty have had a

devastating impact on Australia, so we are pleased the test case hearing is progressing as quickly as possible, and a judgment can be delivered that provides greater clarity to customers, insurers and regulators in the treatment of pandemicrelated claims.”

“In most cases, pandemic exclusions are a threshold issue in Australia given that most insurers have never contemplated coverage for pandemics, have not priced the risk or collected premiums for this risk. Globally, insurers generally regard pandemics as uninsurable risks.”

For breaking news and updates curated specially for insurance brokers please visit: insuranceandrisk.com.au/category/news/

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NEWS / Industry bulletin

NIBA CALLS ON MEMBER SUPPORT FOR NSW EMERGENCY SERVICES LEVY REFORM

NIBA MAKES SUBMISSION TO AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN INSURANCE INQUIRY

T

he National Insurance Brokers Association (NIBA) has made a submission on behalf of the intermediated insurance industry to the Australian Small Business and Family Enterprise Ombudsman Insurance Inquiry (ASBFEO).

In its submission, NIBA focused on the important services brokers provide to their small business clients. The submission highlighted that the role of the insurance broker is to act for and on behalf of the client, to help the client understand their risks and insurance needs, to prepare a recommended insurance program to cover those risks, and to access the insurance markets to get the best possible coverage for the client at the most cost effective price. Acting in this way, the insurance broker acts as a purchaser of insurance cover on behalf of their client, not a seller of insurance cover.

NIBA CEO Dallas Booth said, “There are number of indicators which suggest when a client has an insurance broker acting on their behalf, their insurance recovery is much more successful, and a higher

proportion of the loss is recovered from the relevant insurer.”

The submission also pointed to the low incidence of AFCA complaints and disputes by consumers and small businesses regarding insurance brokers, the sound operation of NIBA’s self-regulatory Insurance Brokers’ Code of Practice and lack of significant consumer complaints, as evidence that brokers are operating in the interests of their clients.

NIBA also noted that a robust protection regime applies for consumers in relation to the conduct of insurance brokers at general law, the Corporations Act (2001) Cth and other relevant legislation.

The submission also clarified that insurance brokers also become the advocate of the client when an insured event occurs, and a claim has to be made under the policy.

NIBA has offered to meet with members of the inquiry to provide further insight into the intermediated insurance industry and ensure that the inquiry has a thorough understanding of the important role brokers play, especially in the small business space.

The Emergency Services Levy (ESL) has been under heavy scrutiny since the NSW state government postponed the transition to a property based tax in 2017. Since then, the contribution amount set by the government has continued to increase, resulting in NSW paying some of the highest premiums in Australia, behind Far North Queensland.

This year alone, policy-holders in NSW will contribute over $1.1 billion to fund the fire and emergency services.

The National Insurance Brokers Association (NIBA) has heard from its members that the levy is not understood by clients. To help brokers educate clients about the ESL and its impacts on insurance affordability NIBA has created the NSW Emergency Services Levy Hub where members can access factsheets to help explain the levy to their clients: niba.com.au/html/ emergency-services-levy-hub.cfm.

NIBA also encourages members and their clients to download our template letter and voice their concerns to their local NSW MP, details of which are also available on the NIBA ESL hub page: niba.com.au/html/ emergency-services-levy-hub.cfm.

Insurance affordability is an issue that affects all of us, together we can ensure that our voice to government is heard.

For breaking news and updates curated specially for insurance brokers please visit: insuranceandrisk.com.au/category/news/

NIBA.COM.AU / 13

PROFESSIONALISM / AFCA case study

CLEARLY COMMUNICATING BROKER FEE

To be able to charge and retain placement commission after a midterm cancellation, a broker must clearly set out its entitlements in relevant documents provided to the insured.

Lessons

The key lessons from this Determination are: • If systems prevent a broker from listing placement commission it will retain on cancellation as a commission (in this case it was described instead as a broker fee), a broker should clearly communicate this to the insured to avoid confusion (as the broker did in this case).

• A broker should seek to rectify any such system issues or in the absence of an option to update/enhance the system to meet its business needs, include information of the issue with an explanation clarifying the shortcomings of its system.

The Broker’s Case

The broker arranged a commercial comprehensive motor vehicle insurance policy for vehicles utilised in the course of the complainant’s business.

Due to the COVID-19 pandemic, the complainant stopped operating its business and instructed the broker to cancel the policy mid-term and this was done and a refund provided.

The broker complied with the complainant’s request and provided the complainant with a refund but on the cancellation notice, there was a specific amount noted as ‘broker’s fee’.

The broker submitted that: • the refund amount was correct and in line with the terms of the agreement between the parties.

A notice had been provided to the complainant by the broker when the policy was arranged which stated: CANCELLATION / POLICY ALTERATIONS Please note that in the event of cancellation or alteration of this policy before the expiry date commission and fees earned in the marketing and placement of your insurance will not be refunded. Note also that premium refunds are not provided when the sum involved is less than $50. In some cases minimum, annual non-refundable premiums may be part of policy conditions.

• it had explained to the complainant that the ‘broker’s fee’ in the cancellation notice was actually its commission for placement of the insurance with the insurer; and • the reason why the commission would appear in the broker fee category was due to the inadequacy of its documentation generation system.

The Complainant’s Case

The AFCA Decision

Facts

The complainant submitted that: • the broker applied the broker’s fee twice, once at renewal of the policy and then again at cancellation of the insurance cover; and • as a result, the broker should be required to increase the refund amount by a further $173.98 as the broker was only entitled to charge a broker’s fee once.

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AFCA: • confirmed that the broker had fulfilled its duties regarding arrangement of the insurance and that the complainant had received the above insurance notice from the broker.

• was satisfied that the broker notice clearly informed the complainant of the broker’s entitlements in terms of fees and commissions relating to the

BY MARK RADFORD

Principal, Radford Lawyers

service provided to its customers.

• acknowledged the complainant’s opinion that the broker has applied broker fees twice, and accepted that the complainant’s concerns in this regard reasonably arose from the format of the insurance cover renewal and cancellation notices.

• concluded that available information showed that when this was raised with the broker, it explained to the complainant that this was not the case and that the amount noted as broker fee in the cancellation notice, was actually the broker’s commission for placement of the insurance with the insurer.

• accepted that a broker fee was not charged twice and instead, the amount was actually commission the broker was entitled to for placement of the insurance cover with the insurer.

• determined that the broker’s calculation of refund was correct.

• noted: o its concern that the broker’s systems did not allow for or cater to its requirements and that this had the clear potential of resulting in confusion at times for mid-term cancellations. o its concern that the broker was aware of this and yet the issue had not been addressed or rectified. o that in the absence of an option to update/enhance the system to meet its business needs, there were options available to the broker to help address this issue, notably, the broker could easily include information of this issue with an explanation clarifying the shortcomings of its system.

2018 & 2019 WINNER Authorised Representative Group of the Year

PROFESSIONALISM / General Insurance Code of Practice

COVID-19 ACCELERATES ROLL-OUT OF GENERAL INSURANCE CODE OF PRACTICE Changes to the implementation of the GI Code of Practice require insurers to fast-track their support for vulnerable customers.

S

ince the formal launch of the new General Insurance Code of Practice early this year, vulnerability has taken on a whole new meaning in the face of a global pandemic.

In response to the unprecedented impact of COVID-19, the Insurance Council of Australia (ICA) has made changes to the new Code’s implementation, including expediting key consumer provisions in Parts 9 [Supporting customers experiencing vulnerability] and 10 [Financial hardship].

Fast-tracking support for vulnerable consumers

The GI Code of Practice was one of the first of its kind in the country and continues to set the benchmark for self-regulation in Australia. It aims to strengthen the entire sector’s reputation – both insurers and brokers - with customers, regulators and governments.

Recommendations in the new Code reflect a growing awareness of the complex social issues faced by vulnerable people. It contains a commitment to accommodating the needs of the vulnerable when they inform insurers that they require particular support or assistance, and also provides guidance to address the rights and the needs of people with a mental health condition.

The new Code also features enhanced protections for consumers experiencing financial hardship. This includes the requirement of insurers to have internal policies and to train relevant employees to help with the identification of consumers who may be experiencing financial hardship.

Campbell Fuller, ICA’s Head of Communications & Media Relations, says changes to the new Code’s implementation are a response to the

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unparalleled impact COVID-19 has had on the industry and its customers.

“Key consumer provisions in parts 9 and 10 of the new Code were implemented six months early, from 1 July this year,” he says. “Signatories also have family violence policies available on their websites.”

“The Insurance Council Board decided insurers should direct urgent resources to customers experiencing vulnerability and hardship during COVID-19, and the board resolved that all remaining new Code provisions would now start from 1 July, 2021, which is a six-month extension.”

Responding to disruption

Fuller notes that, like all industries, insurance has been navigating uncharted waters in 2020.

“Even during a pandemic, customers lodge claims and need the industry’s support, but it is far from business as usual,” he says. “The insurance industry is being disrupted by the COVID-19 pandemic in similar ways to most other businesses.”

Adapting to change

Transitioning to the new Code may present teething problems for some insurers. The Code Governance Committee’s 2018–19 annual report shows the number of reported breaches jumped to 31,186, compared with 13,668 in the previous 12 months. The two code standards most consistently contravened related to the handling of claims and complaints.

Paul Muir, Founder and Director of Compliance Advocacy Solutions, says that insurers can face challenges with compliance.

“The Code, together with regulatory

BY SUSAN MULDOWNEY ANZIIF

reform arising from the Financial Services Royal Commission, has resulted in a complex regulatory landscape. It’s important that the human element is not lost when complying with obligations.”

Muir adds that this is especially the case when dealing with vulnerable customers.

“Customers experiencing vulnerability have unique needs, with those needs changing over time and in response to particular situations,” he says. “Insurers compliance frameworks must be flexible enough to recognise and adapt to meet these unique needs.”

“Customers will only tell insurers about their vulnerability when the customer feels safe to do so,” he says. “This is ongoing, and includes how insurers will manage, use and store the customers confidential personal information. Compliance can result in rigid, one-size-fits-all processes.”

“We need to ensure that front-line staff have the right training and education to enable them to operate within the regulatory framework,” says Muir. “We also need to ensure that such staff have management approval to be human and genuinely focus upon customers’ needs and expectations - and not feel shackled by internal processes and procedures.”

“Consistently dealing with customers in an honest, efficient, fair, transparent and timely manner will play a significant role in restoring community trust in the insurance sector.”

To help members demonstrate excellence in customer care and meet key requirements of the new Code, ANZIIF, in partnership with the ICA, has developed a series of learning solutions (anziif.com/education/gicop) that include vulnerability training and recognition of current competence (RCC).

COMMUNITY / NIBA Virtual Convention

A GUIDE TO #NIBA2020

26-30 OCTOBER, ONLINE The 2020 NIBA Virtual Convention is just around the corner, here’s what delegates can expect…

THE PROGRAM The Convention Committee has carefully designed a program that will inspire, challenge and prepare brokers for the uncharted waters ahead.

Special thanks to the following program sponsors: • Opening Keynote Sponsor – CFC Underwriting • Closing Keynote Sponsor – ATC Insurance Solutions • Concurrent Sponsor - Macquarie Business Bank

MONDAY, 26 OCTOBER 1.30 – 2.00pm (AEDT)

Convention Welcome

2.30 – 3.30pm (AEDT)

Opening Keynote, Gihan Perera

4.00 – 4.30pm (AEDT)

Future of the Economy, Bernard Salt

4.45 – 5.00pm (AEDT)

Parametrics, Arun Mehta, Swiss Re

TUESDAY, 27 OCTOBER 1.00 – 1.45pm (AEDT)

Leading in Uncertain Times, Dr Kirstin Ferguson

2.05 – 2.25pm (AEDT)

Mental Health & Personal Resilience, Dr Jodie Lowinger

2.30 – 2.47pm (AEDT)

Mental Health & Personal Resilience, Dr Jodie Lowinger

2.52 – 3.15pm (AEDT)

Mental Health & Personal Resilience, Dr Jodie Lowinger

3.25 – 3.40pm (AEDT)

The Future of Broking, Insurance Broking Leaders Panel Discussion

3.40 – 4.40pm (AEDT)

NIBA National Award Ceremony

4.40 – 5.40pm (AEDT)

Virtual Cocktail Evening

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COMMUNITY / NIBA Virtual Convention

WEDNESDAY, 28 OCTOBER 1.40 – 2.00pm (AEDT)

The Future of Broking, Insurance Broking Leaders Panel Discussion

2.00 – 3.00pm (AEDT)

Meet the NIBA Board of Directors

3.45 – 4.00pm (AEDT)

Broker Code of Practice: What it means for you, Mark Radford Building Trust as a Trusted Adviser, Jenny Haddad The Future of the Workplace: Building resilient leaders, Nikki Heald

4.00 – 4.15pm (AEDT)

Case Study: Broking Code of Practice with Edgewise Insurance Brokers Best Practice Broking: A case study in trust, Richard Crawford, CBN Case Study: Resilient Leaders, Jodi Sharman, Marsh

4.30 – 4.45pm (AEDT)

Navigating Risk in a Time of Change, Steve Hamill, Comsure Diversity & Inclusion, Bobby Lehane, CHU The Future of the Workplace: Building resilient businesses, Eoghan Trehy, Macquarie Business Bank

4.45 – 5.00pm (AEDT)

Case Study: Risk management control, Mark O’Reilly, Austbrokers Countrywide Diversity & Inclusion: Broker case study, Erica McLoughlin, Steadfast Case Study: Resilient Businesses, Andrew Broughton, Network Insurance Group

THURSDAY, 29 OCTOBER 1.40 – 2.00pm (AEDT)

The Future of Broking, Insurance Broking Leaders Panel Discussion

2.00 – 3.00pm (AEDT)

The Future of Regulation in Broking, Dallas Booth & Mark Radford

4.00 – 5.00pm (AEDT)

Meet the Regulators, ASIC, AFCA, IBCCC

6.00 – 7.00pm (AEDT)

Virtual Cocktail Evening

FRIDAY, 30 OCTOBER 1.00 – 1.30pm (AEDT)

Deloitte Access Economic Report Outcome: The Role & Value of Brokers, John O’Mahony, Deloitte & Dallas Booth, NIBA

1.50 – 2.05pm (AEDT)

YP Discussion: What Matters to You How has the World of COVID-19 Changed Workers Compensation? Vivienne Toll, Gallagher Market Update, Chris Mackinnon, Lloyds Australia

2.05 – 2.20pm (AEDT)

Young Professional Guidance from Other YP’s Workers Compensation Case Study: WA Workers Comp System, Christian Lombardo, Gallagher Market Update: Product Class Predictions, Andrew Cohen, Finity

2.35 – 2.50pm (AEDT)

A Difference in Perspective: YP and Senior Broker Workers Compensation: A Way Forward, Gary McMullen, Aon

3.05 – 3.22pm (AEDT)

The Future of Broking, Insurance Broking Leaders Panel Discussion

3.30 – 4.30pm (AEDT)

Closing Keynote, Ben Crowe

4.30 – 4.45pm (AEDT)

Convention Close NIBA.COM.AU / 19

COMMUNITY / NIBA Virtual Convention

THE SPEAKERS

Current challenges will be addressed by an outstanding line up of speakers:

ANDREW KLEIN, #NIBA2020 MC

BEN CROWE, Global Expert in Connection & Storytelling

BERNARD SALT AM, Social Commentator & Business Analyst

BOBBY LEHANE, CEO of CHU Underwriting Agencies

CHRIS MACKINNON, Regional Head of Australia & New Zealand & Lloyd’s General Representative in Australia

DALLAS BOOTH, CEO of NIBA

DAVID LOCKE, CEO & Chief Ombudsman of AFCA

EOGHAN TREHY, National Head of Insurance Broking at Macquarie Business Bank

ERIC HARRIS, NIBA President & Service Delivery Leader APAC at Aon

GARY MCMULLEN, Director of WorkPlace Risk at Aon

GIHAN PERERA, Futurist & Author

DR JODIE LOWINGER, CEO & Founder of the Sydney Anxiety Clinic and High Performance Coach to business leaders

JODI SHARMAN, Managing Director of JLS Insurance Consulting (an AR of Marsh)

JOHN O’MAHONY, Partner at Deloitte Access Economics

KAREN CHESTER, Deputy Chair & Commissioner of ASIC

DR KIRSTIN FERGUSON, Deputy Chair of the Australian Broadcasting Corporation

MARK RADFORD, Principal Solicitor at Radford Lawyers

20 / INSURANCE ADVISER OCTOBER 2020

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We can provide you and your clients with: • Fast, easy and safe claims lodgement via our online claims portal • Flexible packages including ‘Laid Up’ cover if business activities reduce* • Expertise to assist you with carefully-designed policy options • Comprehensive claims reporting to support effective risk management • Experienced independent Assessors supported by an efficient Claims & Recovery team • Free access to GT Accident Assist with 24/7, Australia-wide support for all GT clients • Simple and efficient online quoting for non-fleet risks via Transportal@GT.* Speak to your GT Relationship & Development Manager today or visit gtins.com.au to see how we can assist with your clients’ transport insurance needs. *Specific vehicle classes only

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COMMUNITY / NIBA Virtual Convention

NIKKI HEALD, Managing Director at Corptraining

RICHARD CRAWFORD, CEO of Community Broker Network

THE PLATFORM NIBA is excited to be working with Spaces to deliver delegates a truly unique Convention experience – Spaces is a collaboration of Mirk and Designteam, two independently owned Australian creative and technology studios.

A dedicated team of designers, developers, technologists and producers have reimagined NIBA Convention in a virtual context, and the outcome is a spectacular immersive experience that facilitates interactions virtually.

We can’t wait for you to join us on the journey.

THE AWARDS Get ready to celebrate the best in broking at the 2020 NIBA Convention. The QBEsponsored Stephen Ball Memorial Award for Insurance Broker of the Year, will be awarded to a highly regarded senior broker, while the Vero-sponsored Warren Tickle Memorial Award for Young Professional Broker of the Year will acknowledge a rising star under 35.

NIBA President Eric Harris will present the Lex McKeown Trophy to a broker that has made a tremendous contribution to the profession, and announce the General Insurer of the Year, as decided by you.

VIVIENNE TOLL, National Head of Workplace Risk at Gallagher

THE MARKETPLACE

#NIBA2020 will take the Convention Expo Hall into a whole new dimension, presenting a great opportunity to learn about the latest cutting-edge products and services. We’re thrilled to have the following businesses exhibiting at #NIBA2020: • Advanced Buildings • Agile Underwriting • Allianz • Ansvar • ANZIIF • ATC Insurance Solutions • BAIS • Brooklyn • CGU

• CHU/Flex Insurance • Dual • Elantis • GT Insurance • iQumulate • JBHiFi • Liberty Specialty Markets • MECON • NTI • OrganiseIT

• Point Insurance • Principal Finance • QBE • Sedgwick • Sura • Technosoft Solutions • TravelCard • Vero • Virtual Broking • Zurich

REGISTRATION FEES TYPE

MEMBER

NON-MEMBER

The works

$396

$451

Bulk price - registering 20 brokers or more?

Speak to NIBA

$305

$305

Exhibition only

FREE

FREE

THANKS TO OUR PRINCIPAL PARTNERS

22 / INSURANCE ADVISER OCTOBER 2020

STEVE HAMILL, Managing Director of Comsure

2020 NIBA VIRTUAL CONVENTION

26-30 OCTOBER 2020

BRAVE NEW WORLD

NAVIGATING THE WINDS OF CHANGE

www.nibavirtualconvention.com.au

THANKS TO OUR PRINCIPAL PARTNERS

COMMUNITY / NIBA Awards

Professionalism and resilience through adversity 2020 has presented a number of challenges and this year’s regional winners of the Vero-sponsored NIBA Young Professional Broker of the Year Award, have knocked it out of the park when it comes to displaying extraordinary levels of professionalism.

BY TANAYA DAS

Adapting quickly to a new world David Harry, NSW/ACT

Insurance Adviser: What has the current crisis taught you about resilience and supporting clients through tough times?

David Harry: We have witnessed our profession adapting quickly to ensure our colleagues are safe and well, while we continue to provide services to our clients who need us in these extraordinarily trying times.

COVID-19 has served us with several challenges including organisations having staff work from home, the need to ensure safe working environments, maintaining work output and importantly managing the mental health challenges that colleagues and clients may be facing during this time. This has also meant expanding our knowledge from general insurance to people risk exposures as clients and staff may face more mental health challenges than ever before.

Coupled with the personal adjustments we have all had to make and learn to deal with, as insurance brokers we have also had to manage expectations around policy coverage for clients with regards to COVID-19 related matters. It has been a

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steep learning curve for us all and while under unfortunate circumstances, it has shown me why we must support each other and continue to adapt to ensure we are supporting our clients as best we can.

IA: What are the biggest challenges facing the broking profession today and how do you think these challenges will evolve going forward?

DH: The challenges I see are how we can maintain relevance and relationships with clients when unable to provide services or advice face-to-face. This has meant changing our own perceptions of how we deal with clients as well as their expectation that an intermediary must be on site in order to look after their insurance.

Brokers will need to maintain relevance by staying connected with clients, their boards of management and form a presence at virtual conferences and webinars.

While certain items may be a challenge at present, it is definitely providing new opportunities in how we deliver services and connect with clients and contacts remotely.

IA: What is the most important lesson you have learnt in your career so far?

DH: It would have to be the realisation about how valuable relationships are both internally and externally. As digital platforms develop we cannot afford to hide behind technology, broking is still very much a people-based industry and we need to main connectivity between underwriting partners, staff and clients at all times to maintain relevance.

Building a wide network gives us the resources to assist in our career development and establish a long-term relationship with people.

COMMUNITY / NIBA Awards

Self-awareness is key Kate Martin, QLD

Insurance Adviser: What are your takeaways from the past few months?

Kate Martin: Through this crisis I have learned that resilience is not a static state. Each day is different and to adapt successfully to working in isolation, separation from family, a barrage of bad news globally and a hardening market, I need to be honest with myself and with others when I am struggling.

This self-awareness has allowed me to build my resilience through prioritising some simple self-care and reaching out to people when I needed support. By doing this I have become more attuned to recognise when others, including clients, are also struggling.

Pandemic or no pandemic I am always considering my client’s needs but now I am taking extra time to reach out.

Also, a smile goes a long way. When so much body language is lost over Zoom I feel a big smile is always reassuring to my

colleagues and clients if they are personally or professionally stressed.

IA: What do you think the insurance broking profession will look like in the future?

KM: There is often chatter about automation taking over lots of different jobs. I think that there will be increased integration of technical and automated services but I do believe a robot or portal can’t replace insurance brokers entirely. Client’s will always be human and the connection and trust that we innately desire will mean that there will always be the need for a friendly person to deliver service.

IA: What is the most important lesson you have learnt in your career so far?

KM: To ask questions. As a young broker I will always prefer to ask a question than to continue in ignorance or make a mistake.

Exploring outside her comfort zone Kelly Qualmann, SA/NT

Insurance Adviser: What has the current crisis taught you about resilience and supporting clients through tough times?

Kelly Qualmann: The current crisis has taught me to not take things for granted.

Communication is key to all relationships and is more important than ever during times of hardship.

IA: What are the major technical advancements you have seen in the profession and what current trend do you think will have an impact on insurance brokers?

KQ: It’s incredible to see the way businesses are interacting with each other over the last six months with Zoom, Facetime, Webex and other similar video platform meetings becoming the norm and an essential part of doing business.

I am sure this way of interaction will continue with the years to come, especially with the safety fear and cost savings of not

having to travel. Accessibility is another major technical advancement over the last few years. Be it emails on your mobile phone, being able to access relevant applications on a mobile phone or tablet, laptops and wifi mean we can pretty much work from anywhere. Not to mention the easy access to taking HD photos, be it for a survey, providing risk information or assisting with a claim.

IA: What is the most important lesson you have learnt in your career so far?

KQ: Don’t be afraid to jump in to the deep end and be out of your comfort zone, it often pays off in the long run. Ask questions and remember that we are the insurance professional so we must ensure that we offer risk management advice and educate our client.

Communicating effectively with clients and industry contacts is still as important as ever and I will continue to have this as a strong focus moving forward.

NIBA.COM.AU / 25

COMMUNITY / NIBA Awards

The art of nurturing relationships Patrick Selle, VIC/TAS

Insurance Adviser: What are the biggest challenges facing the broking profession today and how do you think these challenges will evolve going forward?

Patrick Selle: There will always be challengers facing our industry and certainly these are tricky times we are experiencing presently. I personally believe that the challenge of compliance will be quite substantial going forward.

Insurance brokers will need to evolve and develop action plans to ensure they keep high standards of regulatory compliance and good record keeping for all transactions. We also should continue to have a clear pathway for working with clients and to understand their requirements and develop appropriate cover options to suit accordingly.

within a new normal environment.

I also find we are in a level of uncertainty for the future which personally gives me determination to accommodate changes and utilise it for best practice in order to service my clients better. Insurance brokers will need to continue to be professional but also sensitive to clients’ needs whilst providing clear and concise advice and ensure they are being proactive with all interactions with their clients.

The pathway for change in our industry commenced prior to the recent pandemic crisis and in my opinion has given brokers a plan to formulate adjustment in their business models and better adapt for the future of insurance broking and the changes it brings along with it.

IA: What do you think the insurance broking profession will look like in the future?

PS: Insurance broking professionals will likely, if not already need to adapt to a brave new world of change and accept that we are

IA: What is the most important lesson you have learnt in your career so far?

PS: The most important lesson I have learnt during my career is to just be me. Building relationships with clients are like building friendships.

Agile businesses are most resilient Tryan Christos, WA

Insurance Adviser: What has the current crisis taught you about resilience and supporting clients through tough times?

Tryan Christos: This year has been an extreme stress test on our flexibility and business agility and has forever changed the landscape that we operate in. It was a very proud moment to know that our team pulled together and rose to the occasion and that our clients did not feel the effect of our remote workforce.

IA: What are the biggest challenges facing the broking profession today and how do you think these challenges will evolve going forward?

TC: There are always challenges facing every industry, however the biggest challenge facing the insurance broking profession today would be the potential

26 / INSURANCE ADVISER OCTOBER 2020

impact that COVID-19 claims may have.

In the long run this could severely impact insurers causing price increases due to risk that were not catered or rated for. If insurance pricing is impacted significantly due to losses, brokers may have to find new and innovative ways to mitigate, avoid and/ or transfer their clients risks and make sure that clients are adequately protected.

IA: What is the most important lesson you have learnt in your career so far?

TC: The training and mentoring I have received has allowed me to see that we can only be as good as the people around us. I have learnt that helping people grow, assisting with career progression, enabling people wherever possible, empowering them and ensuring that we maximise their potential for their own satisfaction is the most important thing for an organisation.

It is always important to act with honesty and integrity whilst demonstrating leadership as a risk adviser and continue to evolve into an exceptional insurance professional.

MENTAL HEALTH & WELLBEING

A NIBA BROKERS’ GUIDE ISSUE 3 – OCTOBER 2020

CONTENTS ISSUE 3 FEATURES 4 A Culture of Mental Health 6 Battling Social Isolation in a Global Pandemic 8 Champions of Mental Resilience 10 A Roadmap to Workplace Wellbeing

The NIBA Broker Guides are brought to you through a partnership of Allianz and NIBA. We hope the knowledge of our subject matter experts, coupled with Allianz’s industry expertise, helps you and your clients prepare for the future. We welcome ideas for future subjects - please email your suggestions to editor@niba.com.au.

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In our third edition of A NIBA Brokers’ Guide, subject matter experts highlight the important role brokers can play in helping their clients identify, assess and manage workplace risks to mental health.

WELCOME

Over the past decade, psychological injury claims have increased by 80 per cent1. An Allianz study also revealed that 93 per cent of Australian full-time workers have experienced symptoms of a mental health condition at work2.

The impacts of impaired mental health in the workplace are varied and significant, contributing to a ‘triangle of risk’ where employer obligations under Workplace Health and Safety, Employment Law practices and Workers Compensation intersect.

As advisers of risk mitigation and management, brokers can help clients improve worker mental wellbeing.

This supplement provides guidance on identifying and nurturing an optimal workplace culture.

DALLAS BOOTH Chief Executive Officer, NIBA

DAVID HOSKING Chief General Manager, Broker and Agency, Allianz

In a pre-COVID-19 world, one in four Australians aged 15 and over reported experiencing an episode of loneliness, while one in two felt lonely for at least one day a week3.

When the World Health Organisation declared the outbreak of COVID-19 a pandemic, the global population was met with the challenge of staying connected and maintaining social networks during lockdown. In this guide, discover how to establish socially-distanced connections to mentally arm your workforce, now and into the future.

One critical component of mentally arming a workforce, is building mental resilience, as it enables one to adapt well in the face of adversity, trauma, tragedy, threats or significant sources of stress. As Official Insurance Partner of the Australian Olympic and Paralympic Teams, Allianz introduced journalist Nina Hendy to Olympian surfer Owen Wright and Paralympian Madison de Rozario. The Olympic and Paralympic ambassadors share their inspiring stories of mental resilience in this issue of the guide.

The opportunities for brokers to provide unquestionable value to their clients, who face a gamut of risks, is evident on each page of this guide - we hope it’s a beneficial resource for you and your clients.

If you or someone you know needs support, you can contact Beyond Blue Support Services 24/7 on 1300 224 636, or Lifeline 24/7 Crisis Support on 13 11 14.

1 M. Pittman – see page 10 2 https://www.allianz.com.au/images/internet/aalaus/Allianz_Awareness_Into_Action.pdf 3 https://psychweek.org.au/wp/wp-content/uploads/2018/11/Psychology-Week-2018Australian-Loneliness-Report-1.pdf

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A CULTURE OF MENTAL HEALTH Vital to fostering mental wellbeing, how can brokers help clients drive the right workplace culture?

Michelle Dunner reports.

The impacts of impaired mental health in the workplace are not limited to absenteeism and decreased productivity – they are a major contributor to a ‘triangle of risk’ where employer obligations under Workplace Health and Safety, Employment Law practices and Workers Compensation intersect.

Allianz research, published in its ‘Awareness into Action’ report, paints a disturbing picture; 93 per cent of Australian full-time workers surveyed have experienced symptoms of a mental health condition at work. The report quotes SafeWork Australia figures showing work-related psychological claims each year cost $543 million in workers’ compensation payouts and that claims for mental injury have far greater residual impact than physical injuries in terms of cost to an organisation.

So, what can organisations do to improve worker mental wellbeing and how can brokers effectively advise clients on risk mitigation and management? It boils down to identifying and nurturing an optimal workplace culture.

David Hosking, Chief General Manager Broker and Agency at Allianz says, “A positive workplace culture doesn’t occur by accident. It requires a clear corporate vision and framework that is brought to life through its leaders, who lead by example and provide tools and frameworks for employees to access. It requires consistent, open and regular dialogue, where people are being treated with empathy and respect.

“Leaders must take time to understand staff needs at an individual level, so that the right tools and resources can be provided.

“Over the last few months, we’ve moved from normal, to crisis, to consolidation, to the ‘new normal’. Remaining open and authentic with my own experience and even simply acknowledging when times are challenging, have been some of the tools I have adopted to support my team during COVID.” While many workers and organisations have thrived after

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COVID-19 forced them into remote working, it has also been a time of intense uncertainty and stress.

Heightened awareness by leaders during this period is key to ensuring workplace culture remains strong, according to Anya Johnson, Associate Professor in Work & Organisational Studies at the University of Sydney Business School.

“Remote working strips away a lot of the cues we rely on that tell us what’s going on in the workplace,” she says. “We miss the informal catch ups, the corridor conversations – they’re things we don’t have over Zoom.”

As a result, Johnson says, workplace culture needs to be developed in a much more explicit way. “We need to state what the expectations are, particularly around such things as balancing work and life.”

PSYCHOLOGICAL SAFETY Johnson says leaders can enhance worker psychological safety by creating opportunities where they can express what they’re finding challenging.

“Working remotely has changed the way we work quite radically. We have a lot more autonomy but a lot less connection. Having discussions about the way our roles are designed can also facilitate good mental health, avoid feelings of being overwhelmed and promote collaboration.

“When we’re working in isolation it’s a lot harder to be able to create that shared sense of purpose,” Johnson says.

Hosking adds: “If culture is defined as the standards we accept and expect when no-one is watching, then there is no greater test than during this ‘new normal’ where we see large teams separated and working remotely. A poor culture will see significant underperformance – not being there for our customers, the community, our people at a time when they need us the most.

“Embedding a strong sense of trust and unity is crucial. This comes from having a healthy workplace culture.”

Heightened awareness by leaders during this period is key to ensuring workplace culture remains strong.

A TRIANGLE OF RISK Employers can use a number of strategies to promote a mentally healthy workplace, according to Sparke Helmore Partner and Senior Employment Lawyer Roland Hassell.

“One of these is designing and managing work to minimise harm,” he says. “Involving workers in decision-making processes can be empowering, giving them the opportunity to control their work schedules.

“It’s also important to support recovery from mental illness and that not only includes elements such as modifying work, supporting people’s absence, or managing the return to work. An effective workplace culture helps increase awareness of mental illness and reduce stigma as part of a holistic approach to wellbeing.

“Traditionally, mental health is something we’ve approached as being something we deal with by ourselves and not as a matter for our employer’s involvement. Increasingly though, state and federal regulators are making it clear that mental health is a known hazard and the risk needs to be controlled and eliminated in the same way as any other workplace risk.”

WHAT CAN EMPLOYERS DO? Hassall believes facilitating the ability for workers to seek early assistance is key. Apart from access to Employee Assistance Programs, he says a good workplace culture also includes: • Employers undertaking wellness checks – particularly important for workplaces with known issues or disputes about culture.

• A welfare audit – to gauge where an organisation is at in its approach and culture around mental health.

• External facilitators – to resolve issues among individuals or in departments.

A key success indicator for culture is the creation of a psychologically safe workplace. “It must be possible to have a free exchange of ideas, ensuring people understand that does not mean bullying or harassment.”

WHAT CAN BROKERS DO? Hosking believes when there is so much dislocation in the economy, people often reflect on the resilience of insurance.

"It's more important than ever that brokers are checking in on their clients and their clients’ needs. Financial stress, a major cause of mental health issues, may be somewhat alleviated by an empathetic conversation and providing some relief.

"Allianz has introduced financial hardship support measures to support a variety of customer needs. During this time, we have spoken to several broker partners who have commented on how important it is to be mindful of changing client needs, in order to offer the right support measures available.

"At Allianz we also recognise that for customers experiencing vulnerability, we must handle each interaction with flexibility, dignity and care, recognising when we may also need to recommend other specialised mental health and wellbeing assistance outside our organisation."

Hassall says brokers need to understand the gamut of risks their clients might be faced with. “Employers face the risk triangle of workplace health and safety, workers’ compensation and employment law obligations. Culture and mental health plays into that triangle in a very significant way. If a broker can understand that, they can be of immense assistance to their client.”

If you or someone you know needs support, you can contact Beyond Blue Support Services 24/7 on 1300 224 636, or Lifeline 24/7 Crisis Support on 13 11 14.

THE EXPERTS’ GUIDE TO OPTIMAL WORKPLACE CULTURE 1. Lead by example

“Culture is the glue that holds an organisation together and leading by example is key to developing culture that supports mental wellbeing,” says Hosking.

2. Encourage workers to prioritise wellbeing

“From the top down, it’s critical that messaging is clear and consistent… There must be regular communication that encourages such aspects as diet, exercise, a good routine and how to recognise signs of exhaustion,” Hosking adds.

3. Develop culture in an explicit way

“If leaders are sending emails at 11 at night, that might not be a good signal. Be cognisant of the way you’re communicating, what may be implied and have a way of gauging how your messages are being received,” Johnson suggests.

4. Create a safe space

“Managers need to recognise that everyone experiences situations differently and face their own challenges – none are right or wrong. A leader’s goal is to create a space where it is safe for individuals to make choices,” Johnson explains.

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BATTLING SOCIAL ISOLATION IN A GLOBAL PANDEMIC In a pre-COVID-19 world, one in four Australians aged 15 and over reported experiencing an episode of loneliness, while one in two felt lonely for at least one day a week1.

Since COVID-19 struck, those who remain employed find themselves in a strange new world of staggered office schedules, working from home, or an unpredictable combination of the two.

So what are the best ways to engage and connect with employees, in and out of the workplace?

Steph Wanless reports.

The sudden loss of connection since COVID-19 came into our lives may undoubtedly trigger feelings of loneliness for people everywhere. That’s why it’s more important than ever for businesses to have a robust mental health program in place to offer support, boost connection and prepare for the future as we navigate this pandemic together.

KNOW THE SIGNS Lonely people the world over experience significantly worse mental and physical health to those who are connected. Social isolation has been linked to mental

illness, emotional distress, the development of dementia, poor health behaviours, suicide and premature death2.

“Being socially connected with our community, with our friends, with our family, is our lifeline,” says mental health and wellbeing advocate Matthew Johnstone.

While lockdown and social distancing measures have given some of us time to stop and contemplate what’s really necessary in our lives, others are struggling.

“If you notice people starting to withdraw from meetings or catch-ups – be it in person or virtually – if you know someone isn’t sleeping well, if they’re eating a lot of foods that are high in saturated fat or sugar, drinking alcohol more frequently or partaking in gambling, these are all telltale signs that they may not be coping right now,” says Johnstone.

“Being socially connected with our community, with our friends, with our family, is our lifeline.”

GT INSURANCE JOINS HEALTHY HEADS IN TRUCKS & SHEDS INITIATIVE IN SUPPORT OF MENTAL HEALTH Healthy Heads in Trucks & Sheds (HHTS) – a collective national approach to tackle ‘driver and shed’ mental health – launched on Tuesday 18 August with one overarching objective: to create a single national mental health plan for truck drivers, distribution and warehouse staff.

The launch saw a panel of industry leaders, drivers, government and leaders within the mental health space join in a candid conversation around mental health and wellbeing in the road transport and logistics industry.

The not-for-profit has been built on three key pillars: 1. An increase in the number of people trained in mental health at transport and logistics facilities.

2. Standardisation of policies and regulation at these facilities.

3. Helping the individual be healthier from a diet and mental health perspective.

Founding members include leading road transport operators Woolworths, Coles, Linfox, Toll, Qube and Ron Finemore Transport, in partnership with the National Heavy Vehicle Regulator (NHVR) to fund the inception and development of the initiative.

To find out more about the initiative, visit healthyheads.org.au

1 https://psychweek.org.au/wp/wp-content/uploads/2018/11/Psychology-Week-2018-Australian-Loneliness-Report-1.pdf 2 https://www.aihw.gov.au/reports/australias-welfare/social-isolation-and-loneliness

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MENTALLY ARMING A WORKFORCE According to Heads Up, the workplace mental health offshoot of Beyond Blue, in order to promote positive mental health and wellbeing, it’s crucial to: • Develop manager capability in positive, proactive leadership. For example, promoting employee growth, matching employee skills and strengths with tasks, and providing recognition and constructive feedback.

• Encourage staff to work on tasks together, discuss ideas, share skills and take part in social activities.

• Emphasise the value of the work employees do, celebrate achievements and praise effort, as well as results.

When Allianz Australia mobilised their entire workforce to work from home in two and a half weeks, they sent out a survey asking people how they were feeling, and what they needed in terms of support.

In response to feedback, Allianz pushed the button on several programs sitting in the business’ mental health and wellbeing strategy earlier than planned.

"First we focused on 'Red-Zone Care' and ensured every single employee was aware of the support available through our EAP and heavily promoted the Mental Health First Aid Officer network,” says Rebekka Squire, Employee Engagement and Experience Manager at Allianz.

TOP THREE TIPS FOR CREATING A THRIVING WORKPLACE 1. Prevent Harm

Firstly, you have to design work in a way that minimises harm (physically and psychologically).

Crucial to that is inclusive leadership and culture.

Having a network of trained mental health and wellbeing officers can also help team members when the going gets tough, sometimes a conversation is all you need.

2. Promote the Positive

Ultimately, reducing the health risk profile of your employees is the best course of action you can take.

Invest in the initiatives aligned to health coping and encourage participation. Have employees focus on balance - quality sleep, good food and exercise. We all know when these things are maintained, we all cope much better - even in extreme situations.

3. Reach out

Being compassionate and empathetic is crucial.

Don’t be afraid to reach out to people, ask how they are and if you suspect they’re not okay, listen to them and help them create the space they need to work through that.

Source: Rebekka Squire, Employee Engagement and Experience Manager, Allianz

“This is an accredited group of employees who are trained to have a conversation and offer either emotional, mental or triage support depending on the situation,” explains Squire.

Of those who took part in the program, 98 per cent said it had a positive impact on their wellbeing.

Allianz also offered additional training to their leaders to recognise the signs and symptoms of mental health concerns, and upskill on how to provide support.

Squire says Allianz will continue to build on the approach to flexibility across the organisation once COVID passes.

"We communicated a strong message around wellbeing and reassured them that we did not expect the same level of productivity or performance in these circumstances," adds Squire.

BUILDING SOCIALLY-DISTANCED CONNECTIONS In an effort to counteract the loss of physical contact, Allianz hosted a two-week ‘Dare to Care’ connectedness campaign, which rewarded employees with points when they shared wellbeing behaviours such as exercise, healthy eating, rest and sleep on an intranet page.

“Those points could then be redeemed in Allianz’s appreciate marketplace, where you can choose a voucher, an experience, even a blender – or you could donate your points to a paralympic committee, which is what our winner ultimately did,” says Squire.

A MORE FLEXIBLE FUTURE

“We have now given people much more flexibility in the way they work and this has created a very positive response as seen in our engagement scores. We’re looking very carefully at how we can continue the approach as we develop our future work model.”

Johnstone agrees that the way of work has changed forever, as well as our approach to mental health and wellbeing. “This has to be viewed as a long game, an ongoing conversation where leaders and companies everywhere introduce regular programs and seminars, invite employees to share their ideas and experiences and are armed with the tools we need to move through these troubling times."

If you or someone you know needs support, you can contact Beyond Blue Support Services 24/7 on 1300 224 636, or Lifeline 24/7 Crisis Support on 13 11 14.

7

CHAMPIONS OF MENTAL RESILIENCE Mental illness is more common than you might think.

Almost half of all Australians aged 16 to 85 years – 7.3 million people – will experience mental illness at some point in their life1. While these conditions can be serious, workplaces can play a huge role in supporting individuals back to good mental health. Nina Hendy reports.

Official figures2 from Safe Work Australia reveal that mental stress counted for seven per cent of all Australian Workers’ Compensation statistics in 2017/18. Now as the pandemic puts unprecedented pressure on all of us, looking after the mental health of our colleagues has never been more important.

WORKPLACE SUPPORT Adam Lloyd, General Manager of Workers’ Compensation, Allianz, believes that corporate leaders can play an important role in supporting their teams’ mental health.

“Every job involves a level of stress, and a comfortable level can create great outcomes for teams to solve complex business problems. But the concern is when it’s excessive and sustained,” Lloyd says.

“Every job involves a level of stress, and a comfortable level can create great outcomes for teams to solve complex business problems. But the concern is when it’s excessive and sustained.”

“So it’s important for leaders to constantly set realistic targets that can be broken down into achievable chunks of work.

“Effectiveness within the workplace can come from helping teams establish boundaries, so to avoid the ‘always on’ virtual working environment,” he adds.

“It’s about making sure there is clear communication to what is, and equally what is not, expected from the team, and having this conveyed right from the top.

“Even the simple message of asking your teams to be conscious of having regular ‘tools down’, instead of replacing saved travel with work, given we are no longer commuting two hours a day, can have a powerful impact on employee mental health,” he says.

Lloyd says remote working can be isolating, so we all need to find ways to orchestrate social interactions, and look for new ways to connect with each other, even if it’s via regular video calls.

As a leader, he’s very focused on the team’s mental health, spending more time preparing for meetings so he can be sure he’s asking the right questions to the team to understand how things are really going.

“Leaders of new virtual teams, where employees were used to having team support physically around them, should recognise the risk that their teams may be frozen still at home. So unscheduled virtual check-ins to see if they’re coping OK with the job is a new leadership norm,” Lloyd explains.

8

CHAMPIONS OF WELLBEING Since 2011, Allianz has been a proud partner of Paralympics Australia and, since 2019, the Australian Olympic Committee.

As the Official Insurance Partner of the Australian Olympic and Paralympic Teams, Allianz embraces the opportunity to promote Olympic and Paralympic values, and appreciates the social, physical and mental benefits it can spread to communities everywhere.

Daniel Kowalski, the Olympian Services Manager for the Australian Olympic Committee, believes there hasn't been a time in recent memory where wellbeing was as important as it is now.

“Whilst there are a lot of things that are out of our control, we’re providing our Olympic family with a number of initiatives that they can control and engage with, most notably Wellbeing Week.”

This year, Allianz was thrilled to partner with the Australian Olympic Committee to present Wellbeing Week 2020, which was held in September and comprised of a series of Lunch & Learn sessions with industry experts and Olympians, streamed live on Facebook.

“The initiative gave the athletes a strong foundation across a number of wellbeing areas so they can grow and prosper and ensure they maintain a positive state through these trying times,” Kowalski adds.

MENTAL RESILIENCE Australian professional surfer, Owen Wright, says he has an entirely new perspective on mental strength since he suffered a serious head injury while surfing overseas in 2015..

The current world number nine and Olympic hopeful says sheer determination and mental strength enabled him to get back out into the ocean and continue surfing big waves.

Owen’s experience is arguably one of the most incredible comeback stories ever told. He believes, ”Mental strength means riding the waves of emotion and life like he rides the waves out in the ocean.”

“Recovering from my accident gave me a new perspective on mental strength. Fear is always present, but for me, it’s about embracing and acknowledging it, rather than wishing it away,” he says.

“If you listen to fear, it can be a good thing; it can teach you to be more patient and to see things in a new light. It’s been a journey; I didn’t gain this perspective overnight,” Owen says.

Paralympian Madison de Rozario says she’s also been more proactive about her mental health in recent months.

She may be an elite athlete, but negative thoughts still creep in sometimes. “When I compete I often think, what if I let people down, what if it’s not enough, what if I don’t perform my best? The bigger the stage I’m competing on, the louder these thoughts get.”

But she’s determined to stop negativity in its tracks and come back stronger than ever.

“I’ve been working on stopping negative thoughts and giving more airtime to the positive ones. By speaking up, I hope to show that even athletes are vulnerable; it’s OK to have fears, but we can’t let our fears stop us from progressing,” she says.

If you or someone you know needs support, you can contact Beyond Blue Support Services 24/7 on 1300 224 636, or Lifeline 24/7 Crisis Support on 13 11 14.

To find out more about Allianz’s ambassadors, as well as its role as the Official Insurance Partner of the Australian Olympic and Paralympic Teams at allianz.com.au/aboutus/olympics-and-paralympics.

HOW TO STRENGTHEN RESILIENCE Stress and setbacks are a part of life, and you can’t avoid them. Mental resilience is the ability to cope with unexpected changes and challenges in your life. You may already have skills and support networks that help you to be resilient. However, you may be able to strengthen your resilience even further, making it easier for you to face difficult situations and maintain good mental health.

Here are a few steps you can take to strengthen your resilience: • Knowing your strengths and keeping them in mind • Building your self-esteem – have confidence in your abilities and the positive things in life • Building healthy relationships • Knowing when to ask for help • Managing stress and anxiety levels • Working on problem solving skills and coping strategies

1 https://www.health.gov.au/health-topics/mental-health 2 https://www.safeworkaustralia.gov.au/collection/australian-workers-compensation-statistics

Source: healthdirect.gov.au

9

A ROADMAP TO WORKPLACE WELLBEING Tiffany Eastland shares expert insights on helping clients identify, assess and manage workplace risks to mental health.

and James Tutton, two senior and successful entrepreneurs that were reaching burnout.

Over the past decade, Mark Pittman has observed an 80 per cent increase in psychological injury claims. The General Manager of Government Services (Workers Compensation) at Allianz, says one in every 1400 workers in Australia place a mental health related claim each year.

Kate Perkins, Head of Workplace Programs at Smiling Mind, says mindfulness is paying attention to the present moment with openness, curiosity and non-judgement.

“By being more present we foster a calmer mind and nervous system, as we are spending less time caught up in unhelpful rumination about the future and the past, a key driver of stress and anxiety” she adds.

“The major factors that we see are stress, lack of sleep and a loss of motivation or interest in work, but when you drill down further to see what’s actually causing those factors, you’re looking at unrealistic workloads, real or perceived, not feeling valued or engaged, and for some, financial pressure at home.”

Pittman believes that brokers have an important role to play in helping clients identify, assess and manage workplace risks to mental health, especially now.

IDENTIFYING AND ASSESSING THE RISKS According to Pittman, a lot of employers understand how important it is to have a healthy workplace, but when it comes to how to assess the mental health of their workforce, many are at a loss.

He believes brokers can help the employer identify what some of the challenges are, because there is going to be a financial impact that is clearly visible. “Has your client noticed a drop off in productivity? Is there a high turnover rate? How engaged are their employees?”

Pittman says, there’s not a one size fits all approach, so a broker, who has insight into their client’s business, is in a great position to identify and assess factors that may be cause for concern.

WHAT IS MINDFULNESS?

Through practising mindfulness and meditation, research shows people can reduce symptoms of stress, anxiety and depression. It can also boost working memory and help improve performance, resilience and increase self-esteem.

From a business perspective, this can translate into reduced absenteeism and presenteeism, Perkins explains. “It can also help to increase retention of skilled staff. Importantly, mindfulness and meditation is a proactive, preventive tool for managing our mental health, so has relevance for all of us.”

HOW COVID-19 IS ADAPTING THE WAY WE WORK Since the outbreak of COVID-19 Pittman says the concept of work-life integration has taken over from work-life balance. The mentality is, “I can still achieve what I would achieve in the workplace, but I’m going to do it in a flexible way, in a way that suits me, and still give the business the outcomes that it expects from me,” he explains.

For Lisa Carter, Director of Clear Insurance and Stephen Ball Memorial Award recipient, work-life integration has played a crucial role in her success.

The role of the broker doesn’t stop there, in fact Pittman believes there’s a great opportunity for brokers to be a part of the solution by facilitating the implementation of a suitable workplace mental health program.

As a mother of three children, she says her work and home life are deeply intertwined. “I’m fortunate that I can put my children’s schedule first and not miss any of their essential school, extra-curricular or sporting events, while still enjoying a highly rewarding insurance career and delivering excellent service to our Clear Insurance clients.”

One workplace program seeing phenomenal results is Smiling Mind, a 100 per cent Australian not-for-profit organisation that was established in 2012 by Jane Martino

If you or someone you know needs support, you can contact Beyond Blue Support Services 24/7 on 1300 224 636, or Lifeline 24/7 Crisis Support on 13 11 14.

MANAGING THE RISKS

10

RESOURCES & TOOLS

NIBA GUIDES

Beyond Blue beyondblue.org.au/healthy-places

Member Helpline: Tel: 02 9459 4300 niba@niba.com.au www.niba.com.au

Healthy Heads in Trucks & Sheds healthyheads.org.au

National Insurance Brokers Association Level 11, 20 Berry Street North Sydney NSW 2060 Allianz Australia Insurance Limited Level 12, 2 Market Street Sydney NSW 2000

For the latest product news and information from Allianz, visit www.allianzengage.com.au/nibabrokerguide and connect with us on Linkedin.com/showcase/AllianzBrokerandAgencyAU Allianz and NIBA gives no warranty and makes no representation that the information contained in this publication is, and will remain, suitable for any purpose or free from error.

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

The contents of this guide are protected by copyright. © Allianz Australia Insurance Limited and National Insurance Brokers Association 2020.

Black Dog Institute Australia blackdoginstitute.org.au/ education-services/workplaces

Smiling Mind smilingmind.com.au/mindfulness-workplace SuperFriend superfriend.com.au The Mentally Healthy Workplace Alliance headsup.org.au/general/about-us/ mentally-healthy-workplace-alliance

CPD ENTITLEMENT NIBA Members can gain ½ a point per hour engaged in reading the substantive content of an issue of A NIBA Brokers’ Guide. For more information and to download a CPD reading record sheet, visit niba.com.au/html/unstructured-cpd.cfm#reading *Members can claim a maximum of 7.5 points annually for unstructured training (professional reading and individual research activities)

11

REPRESENTATION / The Value of Brokers

DELOITTE EXAMINES THE VALUE OF BROKERS

Over the past few months, Deloitte Access Economics has been preparing a report on behalf of the National Insurance Brokers Association (NIBA), examining the economic value of the intermediated insurance industry.

T

he report aims to demonstrate the economic value brokers provide to their clients, general insurers, government and the broader community.

Research for the report took place over many months with the Deloitte team pulling together data from overseas markets such as the United Kingdom as well as data from industry regulators, academic journals, information provided by brokers, net promoter scores and interviews conducted with NIBA members and their clients.

From this data, Deloitte were able to identify a number of key areas where brokers provide real, measurable value.

While the value that brokers provide to the clients and the general insurance industry is easy to quantify, the report also highlights other areas outside of the

This report confirms what NIBA and its members have known all along, that the service brokers provide has enormous value not just to their clients but to the general insurance industry more broadly, and that brokers deserve fair compensation for this service.

industry where brokers are able to provide value, including benefits to the economy, natural disaster recovery and funding, consumer advocacy, government risk management and many more.

This report confirms what NIBA and its members have known all along, that the service brokers provide has enormous value not just to their clients but to the general insurance industry more broadly, and that brokers deserve fair compensation for this service.

This report will provide the framework for a long-term campaign

by NIBA to ensure that governments, regulators and other industry groups are aware of the important work brokers do for both their clients and the broader community prior to the ASIC inquiry into broker remuneration as part of their 2022 review. As part of this campaign, NIBA will also be engaging with consumer groups, media and the broader community to better promote the role of brokers.

Interested members are encouraged to keep an eye out for further information in future editions of Broker Buzz.

The report will be released to stakeholders later this month, with attendees to the 2020 NIBA Convention able to remotely attend a session where they can hear about the report and its findings directly from the Deloitte project lead.

For more information on the 2020 NIBA Virtual Convention visit, www. nibavirtualconvention.com.au NIBA.COM.AU / 27

FEATURE / Workers Compensation

THE FUTURE OF WORKERS COMPENSATION While some states have their workers’ compensation schemes running pretty smoothly, in others it’s made headlines for all the wrong reasons. But there’s a potential sucker punch coming, of which brokers and businesses need to be aware.

BY MARTIN WANLESS

28 / INSURANCE ADVISER OCTOBER 2020

FEATURE / Workers Compensation

W

orkers’ compensation has always been a complex area of insurance, surrounded by differing layers of red tape, depending on which state you’re in.

And, thanks to COVID-19, it could become a whole lot more complex.

“It’s going to get interesting over the coming months and years because the definition of work is going to be challenged,” says Georgie Ahern, National Workers Compensation Manager at Marsh.

“Where does work stop and start?” she asks. “The whole of the country has had to mobilise its workforce, especially in the corporate sector, and the obligations on employers now extend into an employee’s home; making sure they’ve got the right ergonomics and other pieces of equipment.”

“It’ll raise questions in the future about what constitutes a workers’ comp claim, says Ian Goninon, Chairman of Capital

Innovation Insurance Group in Tasmania.

“Someone might be doing work on a weekend or ‘after hours’, or they may have a break during the traditional working day if they have a visitor. All of these scenarios need to be considered.”

PROACTIVITY IN ACTION

Employers need to take responsibility to ensure workers have a safe environment to work in, and brokers can play a role in that by alerting clients to their responsibilities, as well as the preventative measures they can put in place.

“Employers should encourage workers to create a safe work environment while working remotely and establish a routine that helps maintain a healthy work-life balance by setting realistic goals each day,” says Andrew Ziolkowski, Group Executive Prevention and Underwriting at icare, the NSW state insurer.

“It’s also important to ensure employees are working at a location that is appropriate ergonomically and, in an area, free of trip hazards with adequate lighting,” he says.

“A big challenge is the need for dayto-day COVID exposure risks to be managed effectively,” says Gary McMullen, Director, Workplace Risk at Aon. “This is particularly relevant in critical industries such as health, aged care and manufacturing. The COVID risks and expectations change daily and when a positive case is detected, the pressure on the business to contact trace and manage this is intense.

“This, combined with the legal obligations on officers, particularly those laws relating to Industrial Manslaughter Laws, creates a cocktail of risks that need to be managed effectively.”

There is also an increased risk of psychosocial claims, with stress and

NIBA.COM.AU / 29

FEATURE / Workers Compensation

anxiety about being at work and travelling on public transport, for example, looming.

Each year, icare manages around 85,000 workers’ compensation claims for NSW businesses and government agencies, and among the most complex is a small but growing number of mental health claims.

Ziolkowski says, “Psychological claims currently account for around six per cent of all workers’ compensation claims.

“However, they have some of the most complex return to work and health issues, and [need] ongoing customer support, in addition to training and resources for case managers across the scheme, with a particular focus on those managing these sensitive claims.”

For brokers, preparedness is vital.

“We’ve prepared reports for our larger

clients detailing everything they’ve done to prevent the likelihood of COVID-19 spreading in their workplace, and what their policies and procedures are,” says Goninon.

PREMIUM RAISES

This year businesses have felt the pinch. And from government down, that’s been recognised, in the form of handouts and freezes.

“Most of the regulators and insurers have been hugely positive this year in terms of not moving rates, but their scheme jurisdictions, particularly in a regulatory environment, aren’t performing,” says Ahern.

“When they aren’t performing in terms of premiums they collect and the claims they’re paying out. The ratio is out of tilt.

“The only way they’re going to correct that is by raising premiums.

Pre-COVID, for example, icare said it’d need to raise premiums, but because of COVID that didn’t happen. So you can see a perfect storm coming.” icare’s Ziolkowski says, “It’s critical we do everything we can to support NSW businesses during the pandemic.

By keeping premiums for the Nominal Insurer unchanged from 30 June 2020, we’ve saved businesses across the state more than $325m.”

In Tasmania, there have been some significant premium increases. “Sometimes you get a quote on a workers’ compensation account and maybe the rates might vary 10 or 20 per cent, but now we see a huge variation in premiums. For example, one of our clients was paying $300,000, and the renewal went to $600,000.”

“A big challenge is the need for day-to-day COVID exposure risks to be managed effectively” Gary McMullen, Director, Workplace Risk at Aon

30 / INSURANCE ADVISER OCTOBER 2020

FEATURE / Workers Compensation

Specialist Underwriter

NIBA.COM.AU / 31

FEATURE / Workers Compensation

ICARE IN THE NEWS

Of course, in any coverage of issues in workers’ compensation, it would be remiss to mention the scrutiny that icare has been under over recent months.

The difficulties at icare were, of course, spotlighted in a Four Corners expose.

One of the contributors to that program was Peter McCarthy, retired actuary and former senior partner at EY, who says, “The problems at icare have been around for a number of years, but they’re now exposed in the media and parliament.

McCarthy believes icare’s claims management strategy has been a complete failure. “They need to split the icare business into two parts – firstly the existing claims to mitigate the damage to claimants and to mitigate the huge financial damage, and secondly to implement a new and much better claims management strategy for future claims.”

McCarthy continues, “While I am agnostic about private or public

management of workers compensation schemes, given obvious and terribly poor management of the icare scheme by successive governments over the last 30 years, a serious case can now be made to privatise the icare scheme.”

The appointment of John Robertson late last month as chair could herald a new era, and for icare, it has its eyes firmly on the future.

“Looking ahead, the future encompasses a new business approach to process, delivery and transparency and dedication to supporting people to get back to work after an injury,” Ziolkowski says.

“We don’t have any plans to privatise the workers’ compensation scheme, but icare is committed to developing a fairer, [more] sustainable and customercentric workers’ compensation scheme.

Following a regulatory review in 2019, the State Insurance Regulatory Authority (SIRA) in conjunction with icare, formed a 21-point improvement plan.”

WORKING WITH CLIENTS

While COVID-19 brings with it some new challenges that brokers need to explore with clients, discussions should also explore where health and safety responsibilities lie within clients’ organisations.

“Outside of the top ASX-listed companies, you often see the HR officer wearing many hats,” says Ahern.

“Brokers can help by educating them on how they should approach health and safety, and how they manage the return to work process.

“Also, they won’t necessarily understand the drivers of premiums, or how to review a policy notice – but brokers do. In our last renewal cycle, 95 per cent of the renewals were incorrect. Classifications were incorrect, wages were incorrect – and a decimal point out of place can be extremely costly.”

The key message for brokers is, this is still an ever-evolving area of insurance – one that, over coming months and years will continue to shape-shift in terms of coverage at the very least.

“Psychological claims currently account for around six per cent of all workers’ compensation claims.”

Andrew Ziolkowski, Group Executive Prevention and Underwriting at icare

32 / INSURANCE ADVISER OCTOBER 2020

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FEATURE / Workers Compensation

STATING THE DIFFERENCE: THE WA APPROACH Over in Western Australia, Stephen Psaila-Savona, General Manager of WorkCover WA, oversees the regulation of workers’ comp. And, while there are technical and structural differences between WorkCover WA and other state workers’ comp systems, some similar ‘frontline’ issues often arise.

The issues in NSW and Victoria – as well as the recent Royal Commissions – have prompted Psaila-Savona and his team to review how they operate.

“Although we already have an excellent workers’ comp scheme in WA, there is always

34 / INSURANCE ADVISER OCTOBER 2020

room to learn and improve.

The jurisdictional reviews have given us a great opportunity to self-assess – what type of regulator are we? What type of regulator do we want to be?”

“We’ve taken particular notice of three things that have emerged. Firstly, that regulators sometimes go missing in action; secondly regulators sometimes provide an informal response to what are formal issues, and thirdly we need to keep in mind the injured workers, employers and the broader community.”

To this end, Workcover WA has published Principles and

Standards of Practice for Insurers and Self-Insurers, which commenced on 1 July 2020. The Principles and Standards set out 42 clear expectations across six priority areas for insurers and selfinsurers to comply with.

“We’ve built a lot of the findings from NSW, Victoria and the Royal Commissions into our standards, including the importance of proactive communication, making decisions in a timely manner, keeping claims going, not getting bogged down in unnecessary bureaucracy, transparent underwriting, and proactive injury management.”

FEATURE / Professional Indemnity

PROFESSIONAL INDEMNITY: WHAT DOES THE FUTURE HOLD?

36 / INSURANCE ADVISER OCTOBER 2020

FEATURE / Professional Indemnity

Providing professional indemnity cover is particularly complex for brokers, with an already hardened market showing no signs of abating any time soon.

BY NINA HENDY

NIBA.COM.AU / 37

FEATURE / Professional Indemnity

P

rofessional indemnity (PI) insurance is mandatory for a number of industry sectors, but providing cover has emerged as a hot potato, and market hardening is likely to be in place for a while yet.

One of the big issues has been the increasingly litigious environment we live in, with legal cases increasingly common.

Meanwhile providing cover is costly, prompting a number of high-profile players to exit the market in recent years. These include DUAL Australia, Vero, Axis and then Lloyd’s pulling their offering in 2019.

The industry’s fate was sealed when the country’s largest broker of professional indemnity insurance for building surveyors and certifiers, London-based HDI Speciality, quit the Australian market last year.

HDI Speciality stopped issuing new policies or renewing existing policies, creating a bottleneck that left brokers scrambling to find a replacement underwriter. The company told the media that it’s a fight for every renewal, and the costs and excesses make the sector unsustainable.

It is a story that plays out across the PI sector, forcing insurers to be increasingly selective on risks and reduce capacity. On the plus side, the market exits have provided a chance for

THE INDUSTRY’S FATE WAS SEALED WHEN THE COUNTRY’S LARGEST BROKER OF PROFESSIONAL INDEMNITY INSURANCE FOR BUILDING SURVEYORS AND CERTIFIERS, LONDON-BASED HDI SPECIALITY, QUIT THE AUSTRALIAN MARKET LAST YEAR. some players to step up and pick up the body of clients left without cover given the high demand for the product.

The COVID-19 pandemic has also solidified the need for the PI cover, with the British Insurance Brokers’ Association even taking the step to remind brokers not to forget about their own insurance policies.

HIGHER PREMIUMS

PI policies are tailored to specific professions, making them a timeconsuming market play. Market specialisations are needed across a range of sectors including finance, health providers, legal, engineering, architecture and so on.

Therefore, some circles wonder whether PI will remain an industry loss leader for the long term.

Regulatory change could be on the cards too, after Federal Treasurer Josh Frydenberg revealed it will pursue a Compensation Scheme of Last Resort. How

FIVE KEY TRENDS BROKERS SHOULD KEEP AN EYE ON: 1. Segmentation Brokers will increasingly specialise in one industry type.

4. Technology A tech play that helps win deals is expected.

2. Shrinkage

COVID-19 has hardened the market further.

5. Minimising exposure Insurers want to minimise exposure to one industry sector.

3. Higher premiums

Higher costs are inevitable.

38 / INSURANCE ADVISER OCTOBER 2020

this might impact the PI sector for financial advisers isn’t yet fully understood, but it could add further financial burdens to the already struggling sector.

A NUMBER GAME

Data from the Australian Prudential Regulatory Authority reveals that the average premium increase between year-end March 2019 and year-end March 2020 for professional indemnity cover was 42 per cent, with an 8 per cent increase in incurred claims.

The uplift in premiums means that the gross loss ratio has decreased from 108 per cent in 2019 to 98 per cent in 2020. This is unsustainable for insurers and requires correction, according to an insights report released by Aon. “Noting the focus on underwriting profitability, insurers will still be looking to get this number lower, as a two per cent margin is not viable,” it reads.

“Hard insurance market conditions inevitably lead to a more centralised decision-making process for some insurers. Underwriting authority becomes centralised to control the balance of the portfolio. And where insurers have focused on particular industries in the past, they’re now looking to minimise their overall exposure to any one industry,” Aon’s report explains.

A TIME-CONSUMING PLAY Roxy Zeb is the Strategic Risk Advisor for Marsh. The issue with the PI sector can be summarised in four words – less capacity, higher premiums, she says.

The Top-Up PI insurance market was already presenting significant

“My QPIB designation gives my clients peace of mind that I’m a trusted professional.”

ING IS

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QPIB

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Apply online at niba.com.au or email NIBA Memberships Manager Audi Witsen – awitsen@niba.com.au

D PRAC IE T F I

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QPIB – A STATEMENT OF PROFESSIONALISM

• QUA L

– CRAIG ANDERSON, 2018 YOUNG PROFESSIONAL BROKER OF THE YEAR

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FEATURE / Professional Indemnity

challenges for the sector approaching the 30 June, 2020 renewal season, with a number of markets no longer writing Australian law firms, for example, Zeb says.

“These challenges have been developing in the local market for some time now, where the appetite for the insurance layers immediately above the Statutory PI policy (i.e $2 million) has become restricted. In some cases, larger law firms buying significant limits of indemnity have not been able to continue to purchase those same limits because of

‘book rate’ now, so insureds will likely have to choose between much higher premiums or reduced capacity, or, most likely a combination of both.

“Some of the more significant players such as Newline have experienced continued poor performance of their Australian PI book, which has been problematic for the syndicate as there have been large claims and there have been many of them,” Zeb says.

But the issues facing the sector could lie in a technology play, Client

ONLY TIME WILL TELL WHAT WILL BECOME OF THE PI SECTOR. BUT ONE THING IS FOR SURE – THE INDUSTRY IS RIPE FOR DISRUPTION. this contraction in capacity,” she says.

“On top of these already challenged market conditions, law firms are finding themselves having to manage an additional layer of complexities caused

by COVID-19, as they navigate this year’s insurance renewal,” Zeb says.

“There is little appetite from the underwriters to deviate from their

40 / INSURANCE ADVISER OCTOBER 2020

Director for FSG Global and Corporate, Commercial Risk Solutions at Aon, Mary-Catherine Thomas says.

“Corporate PI clients are today looking for fast technical advice to assist in negotiating and winning new deals. There is an opportunity for brokers to step outside of the traditional manual review and response model

and adapt technology to assist in the delivery of risk and insurance advice.

MARKET SEGMENTATION ON THE HORIZON

Only time will tell what will become of the PI sector. But one thing is for sure – the industry is ripe for disruption.

Thomas believes that the PI market is on a journey of differentiation by market segment.

“More and more insurers are gravitating to the SME/mid-market segment after incurring considerable losses in the corporate space. Insurers and brokers are largely fighting for the same market in an era where technology continues to evolve and threaten to replace the need for human interaction,” Thomas explains.

Meanwhile, alliance contracting models are becoming popular again for some sectors, Thomas says. “The appetite from insurers to provide first party cover varies with very few insurerbased forms available in the market. Aon has created its own Alliance wording which we tailor by alliance to address the specific contracting requirement of each owner,” Thomas says.

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COMMUNITY HUB

COMMUNITY HUB OCTOBER 2020

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

INDEX AB Phillips ..................................................... 42 ASR Underwriting ..................................... 43 MGA Insurance Brokers ........................ 44

Moran Insurance Brokers ..................... 44 Newline Group ............................................ 45 Affinity Insurance Brokers ..................... 45 AIBI .................................................................. 46

Tudor Insurance .......................................... 46 Trident Marine Insurance......................... 47 Marsh & McLennan Agency.................. 47 All Parks Insurance...................................... 47

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

Exclusive timber and sawmill insurance facility AB Phillips has been insuring the Timber and Sawmilling industry for more than 25 years. We have an exclusive underwriting facility which is available to select brokers.

Our insurance facility is for clients in the following sectors: • • • • •

Timber yards Timber storage Timber processors Sawmills Roof truss and wall frame manufacturers

Commission is paid on placements.

For more information please contact Rose Dee on:

Phone: 1800 819 394 | Direct: 03 8586 9316 | Email: rose@abphillips.com.au AB Phillips Pty Ltd. Australian Financial Services Licence No. 234457. ABN: 91 007 075 934. PO Box 832 Moorabbin VIC 3189. 445 Warrigal Rd Moorabin VIC 3189. e: info@abphillips.com.au t: 03 8586 9333 f: 03 8586 9394 w: www.abphillips.com.au

COMMUNITY HUB

44 / INSURANCE ADVISER OCTOBER 2020

COMMUNITY HUB Key Liability Industries:

Key PI Occupations:

Key FI Occupations:

• Alternate & Complementary medicines • Automotive • Biotechnology • Clinical Trials / Research • Defence – machinery, weaponry & protective equipment • Life Science / Pharmaceuticals • Medical & Surgical Devices (including invasive implants) • Medical Cannabis • Medical Equipment / Products • Mining • Rail, Products, Maintenance, Locomotive Engineering, operators, Rolling Stocks & Engine Manufacturers • Tyres – new, re-threading, lugging, repair & sales • Universities • Veterinary Medicines

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

• Fund Managers/Investment Managers • Insurance Companies • Managed Investment Schemes • Excess lines for Financial Planners

Chief Executive Officer / Underwriting Manager – Liability

Underwriting Manager - PI

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

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

Linda Sepala Underwriting Manager – D&O & FI

PH: 03 9998 1900

Newline Australia Insurance Pty Ltd ABN 81 118 089 651 PO Box 16208 Collins St West VIC 8007 PH: 03 9999 1901 FAX: 03 9670 0045 newlinegroup.com.au info@newlinegroup.com.au

NIBA_Newline_Sep20.indd 1

15/9/20 3:54 pm

AFFINITY EQUINE, ADVENTURE & LEISURE LIABILITY Abseiling Accommodation Agistment Animal & Petting Zoo Archery Bush Walking Camping Campsites Canyoning Caving Team Building

Equine Associations Equine Events Equine Therapists Farriers & Dentists Fishing & Boat Cruises Four Wheel Driving Flying Fox Horse Carriage Driving Horse Trainers Horse Riding Schools Initiatives

Kayaking Mountain Biking Orienteering/Rogaining Paddle Boarding Pony Rides Paintball & Skirmish Riding Schools River Rafting Rock Climbing Ropes Course Rowing

Sailing Sea Kayaking Snorkelling Snow Skiing Surfing Swimming Trail Running

1300 130 535 www.affinityib.com.au

NIBA.COM.AU / 45

AFS License No. 214 185

COMMUNITY HUB

BE PART OF NIBA

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Advertise with the most influential and trusted voice in the Australian intermediated insurance industry

Adult Industry Business Insurance

Insurance Adviser · Insurance and Risk website Broker Buzz · Need a Broker website · Targeted eDMs · NIBA events (Annual Convention)

WE ARE YOUR VOICE Contact Tony May National Advertising Sales Manager T: 02 9459 4303 E: tmay@niba.com.au

AIBI is a registered trading name of Capital Mutual Insurance Brokers Pty Ltd. Capital Mutual Insurance Brokers Pty Ltd is a Corporate Authorised Representative of McLardy McShane Partners Pty Ltd, Australian Financial Services Licence No 232987 ABN 14 064 465 309.

McLardy McShane Partners Pty Ltd is a member of The Steadfast Group.

Demolition and Asbestos Removal Liability Insurance Benefits of dealing with LSM:

• • • • •

$20M Asbestos Liability now available Security of dealing with the local office of a major global insurer Local claims and underwriting service working closely with you to meet your clients business needs Automatic addition of Errors & Omissions coverage when Asbestos Liability is purchased You can also apply for enhancements when you purchase this policy - Coverage for Statutory Fines & Penalties, Coverage for Shoring & Underpinning and Coverage for Transportation of Asbestos (clean-up costs) • 15% commission on all placements Tudor AFS License Number: 243 299

please contact:

Untitled-2 1

TUDOR INSURANCE AUSTRALIA t: (03) 9707 3033 f: (03) 9707 4568

46 / INSURANCE ADVISER OCTOBER 2020

Tudor ABN: 19 876 513 568

Cameron McKerchar e: service@tudorinsurance.com.au

26/10/18 2:49 pm

COMMUNITY HUB

MARSH& MCLENNAN A G E N C Y OUR INSURANCE PRODUCTS INCLUDE:

■ ■ ■ ■ ■ ■ ■

Demolition & Asbestos Liability - demolition, asbestos removal and transport, asbestos and environmental consultancies and similar occupations Kidnap, Ransom & Extortion Personal Accident & Illness Income Protection Motor Trades - public and products liability Tyre Retailers - property Window Cleaners - public and products liability

PLEASE VISIT OUR WEBSITE, AND CLICK ON "PRODUCTS AND SERVICES" FOR MORE DETAILS www.marshmc.com.au

CONTACT Michael Beveridge

08 8385 3630 or

Tara Nadge

08 8385 3583 newbusiness@marshmc.com Marsh and McLennan Agency Pty Ltd ABN 33 000 668 584 / AFSL 238984

517-3776

NIBA.COM.AU / 47

INSURER STRENGTH RATINGS

S&P GLOBAL

INSURER FINANCIAL STRENGTH RATINGS

The following list of S&P Global Ratings insurer financial strength ratings assigned to insurance companies in Australia and New Zealand. Ratings at 1 September, 2020.

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

NEW ZEALAND

RATING

NON-LIFE INSURERS

AUSTRALIA

RATING

NON-LIFE INSURERS AAI Ltd.

A+/POSITIVE

AIG Australia Limited

A/STABLE

Allianz Australia Insurance Ltd.

AA-/STABLE

BHP Billiton Marine & General Insurances Pty Ltd. A/STABLE Chubb Insurance Australia Ltd.

AA-/STABLE

Great Lakes Insurance S.E (Australia Branch)

AA-/STABLE

Hallmark General Insurance Co. Ltd.

BBB+/STABLE

Insurance Australia Ltd.

AA-/STABLE

Society of Lloyd's

A+/STABLE

Medical Insurance Australia Pty Ltd.

A-/STABLE

QBE Insurance (Australia) Ltd.

A+/STABLE

QBE Insurance (International) Ltd.

A+/STABLE

Zurich Australian Insurance Ltd.

A+/POSITIVE

AA Insurance Ltd.

A+/POSITIVE

AIG Insurance New Zealand Ltd.

A/STABLE

Chubb Insurance New Zealand Ltd.

AA-/STABLE

Hallmark General Insurance Co. Ltd. (NZ Branch)

BBB+/STABLE

IAG New Zealand Ltd.

AA-/STABLE

Society of Lloyd's

A+/STABLE

Medical Insurance Society Ltd.

A-/POSITIVE

Southern Cross Benefits Ltd.

A/STABLE

Southern Cross Pet Insurance Ltd.

A/STABLE

LIFE INSURERS

Teleco Insurance (NZ) Ltd.

BBB+/STABLE

AIA Australia Ltd.

A+/STABLE

Vero Insurance New Zealand Ltd.

A+/POSITIVE

AMP Life Ltd.

A-/NEGATIVE

Vero Liability Insurance Ltd.

A+/POSITIVE

Challenger Life Company Ltd.

A/STABLE

Colonial Mutual Life Assurance Society Ltd. (The)

A+/STABLE

Hallmark Life Insurance Co. Ltd.

BBB+/STABLE

MetLife Insurance Ltd.

A+/STABLE

Westpac Life Insurance Services Ltd.

A+/STABLE

HEALTH INSURERS Southern Cross Medical Care Society

A+/STABLE

NIB NZ Ltd.

A-/STABLE

LENDERS MORTGAGE INSURERS Genworth Financial Mortgage Insurance Pty Ltd. (NZ Branch)

A/NEGATIVE

LIFE INSURERS

LENDERS MORTGAGE INSURERS Genworth Financial Mortgage Insurance Pty Ltd.

A/NEGATIVE

QBE Lenders' Mortgage Insurance Ltd.

A/STABLE

Westpac Lenders Mortgage Insurance Ltd.

AA-/NEGATIVE

REINSURERS General Reinsurance Australia Ltd.

AA+/STABLE

General Reinsurance Life Australia Ltd.

AA+/STABLE

Asteron Life Ltd.

A+/POSITIVE

Hannover Life Re of Australasia Ltd.

AA-/STABLE

Hallmark Life Insurance Co. Ltd. (NZ Branch)

BBB+/STABLE

Munich Reinsurance Co. of Australasia Ltd.

AA-/STABLE

Medical Life Assurance Society Ltd.

A-/POSITIVE

RGA Reinsurance Co. of Australia Ltd.

AA-/STABLE

Westpac Life-NZ-Ltd.

A+/NEGATIVE

SCOR Global Life Australia Pty Ltd.

AA-/STABLE

Resolution Life New Zealand Ltd.

A-/NEGATIVE

Swiss Re Life & Health Australia Ltd.

AA-/NEGATIVE

*For the S&P Global Insurer Financial Strength Ratings Definitions visit: https://www.niba.com.au/resource/standardandpoors.pdf Copyright © 2020 S&P. This material is reproduced with the permission of S&P. Reproduction of this the S&P Information in any form is prohibited without S&P’s prior written permission. Neither S&P, its affiliates nor any of their thirdparty licensors: (a) guarantee the accuracy, completeness or availability of the S&P information, or (b) make any warranty, express or implied, as to the results to be obtained by Insurer Financial Strength Ratings or any other person from the use of the S&P information or any other data or information included therein or derived therefrom, or (c) make any express or implied warranties, including any warranty of merchantability or fitness for a particular purpose or use, or (d) shall in any way be liable to Insurer Financial Strength Ratings or any recipient of the S&P information for any inaccuracies, errors, or omissions, regardless of

48 / INSURANCE ADVISER OCTOBER 2020

cause, in the S&P information or for any damages, whether direct or indirect or consequential, punitive or exemplary resulting therefrom.

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

INSURER STRENGTH RATINGS

BEST’S

NEW ZEALAND

FINANCIAL STRENGTH RATINGS

The following list of AM Best Financial Strength Ratings (FSRs) assigned to insurance companies in Australia and New Zealand. Ratings as at 4 September, 2020.

Contact: Scott Ryrie, Co-CEO A. M. Best Asia-Pacific (Singapore) Pte Ltd. Board Member and Commercial Director for Asia Pacific Tel: +65 6303 5007 Email: scott.ryrie@ambest.com

AUSTRALIA

RATING

LIFE, ANNUITY AND ACCIDENT General Reinsurance Life Australia Ltd.

A++/STABLE

PROPERTY/CASUALTY

RATING

COMPOSITE Quest Insurance Group Limited

B/STABLE

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

A/ STABLE

BNZ Life Insurance Limited

A/STABLE

CIGNA Life Insurance New Zealand Limited

A/STABLE

Co-operative Life Limited

B++/STABLE

DPL Insurance Limited

B++/STABLE

Fidelity Life Assurance Company Limited

A-/STABLE

Foundation Life (NZ) Limited

A-/STABLE

General Reinsurance Life Australia Limited (New Zealand Branch)

A++/STABLE

Kiwi Insurance Limited

A-/STABLE

Lifetime Income Limited

B/STABLE

Momentum Life Limited

B++/STABLE

Partners Life Limited

A-/STABLE

Pinnacle Life Limited

B/STABLE

Ansvar Insurance Limited

A-/NEGATIVE

First American Title Insurance Company of Australia Pty Limited

A/STABLE

General Reinsurance Australia Ltd

A++/STABLE

Guild Insurance Limited

A-/STABLE

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

A+/STABLE

Pacific International Insurance Pty Limited

B++/STABLE

Beneficial Insurance Limited

B++/STABLE

The Hollard Insurance Company Pty Ltd

A-/STABLE

Brightsideco Insurance Limited

B/STABLE

B++/STABLE

Consumer Insurance Services Limited

B+/STABLE

The New India Assurance Company Limited (Australia Branch)

Rating Disclosure: Use and Limitations: A Best’s Credit Rating (BCR) is a forward-looking independent and objective opinion regarding an insurer’s, issuer’s, or financial obligation’s relative creditworthiness. The opinion represents a comprehensive analysis consisting of a quantitative and qualitative evaluation of balance sheet strength, operating performance and business profile or, where appropriate, the specific nature and details of a security. Because a BCR is a forward-looking opinion as of the date it is released, it cannot be considered as a fact or guarantee of future credit quality and therefore cannot be described as accurate or inaccurate. A BCR is a relative measure of risk that implies credit quality and is assigned using a scale with a defined population of categories and notches. Entities or obligations assigned the same BCR symbol developed using the same scale, should not be viewed as completely identical in terms of credit quality.

Alternatively, they are alike in category (or notches within a category), but given there is a prescribed progression of categories (and notches) used in assigning the ratings of a much larger population of entities or obligations, the categories (notches) cannot mirror the precise subtleties of risk that are inherent within similarly rated entities or obligations. While a BCR reflects the opinion of A.M. Best Rating Services, Inc. (AMBRS) of relative creditworthiness, it is not an indicator or predictor of defined impairment or default probability with respect to any specific insurer, issuer, or financial obligation. A BCR is not investment advice, nor should it be construed as a consulting or advisory service, as such; it is not intended to be utilised as a recommendation to purchase, hold or terminate any insurance policy, contract, security, or any other financial obligation, nor does it address the suitability of any particular policy or contract for a specific purpose or purchaser. Users of a BCR should not rely on it in making any investment decision; however, if used, the BCR must be considered as only one factor.

Users must make their own evaluation of each investment decision. A BCR opinion is provided on an “as is” basis without any expressed or implied warranty. In addition, a BCR may be changed, suspended, or withdrawn at any time for any reason at the sole discretion of AMBRS.

PROPERTY/CASUALTY

First American Title Insurance Company of Australia A/STABLE Pty Limited (New Zealand Branch) FMG Insurance Limited

A/STABLE

General Reinsurance Australia Ltd (New Zealand Branch)

A++/STABLE

Health Services Welfare Society Limited

B+/STABLE

The Hollard Insurance Company Pty Ltd (New Zealand Branch)

A-/STABLE

Mitsui Sumitomo Insurance Company Limited (New Zealand Branch)

A+/STABLE

The New India Assurance Company Limited (New Zealand Branch)

B++/STABLE

New Zealand Medical Professionals Limited

B+/STABLE

Pacific International Insurance Pty Ltd (New Zealand Branch)

B++/STABLE

Police Health Plan Limited

A-/STABLE

Provident Insurance Corporation Limited

B /STABLE

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

A++/STABLE

Tower Insurance Limited

A-/STABLE

Union Medical Benefits Society Limited

A/STABLE

Virginia Surety Company, Inc. (New Zealand Branch)

A/STABLE

NIBA.COM.AU / 49

NIBA / Events

NIBA EVENTS

STAY UPDATED!

NIBA stages a variety of educational and social events across Australia for the whole intermediated insurance community.

EVENTS UPDATE Mark your calendars to meet, share, learn and grow with your industry peers at NIBA events across the country.

Please note that in light of COVID-19, NIBA will continue to follow and implement national and state health authorities’ recommendations.

As we work through the second half of 2020 a program of virtual and where possible physical networking event opportunities will be held. Unfortunately, due to the changing situations we all face, NIBA has cancelled the Qld Christmas Lawn Bowls and the NIBA/ UAC WA Underwriting Expo.

NIBA CONVENTION

WHEN: 26 – 30 October 2020 WHERE: NIBA’s Convention has gone virtual, promising a whole new experience for NIBA members. www.nibavirtualconvention.com.au

DISPLAY ADVERTISING INDEX – OCTOBER 2020

Check out what’s happening close to yo u and registe r via the events cale ndar at niba.com.a u/ events

LAST MONTH NIBA WA CELEBRATED DIVERSITY AND INCLUSION IN AN ALL ACCESSIBLE EVENT AS PART OF LLOYD’S DIVE IN FESTIVAL

The NIBA WA Young Professional Committee, in conjunction with Dive In, hosted an afternoon with Amna Karra-Hassan on 23 September 2020. Karra-Hassan founded the first ever AFL Women’s team in Western Sydney and is widely recognised for the diversity she brought to the game and for taking the code to Western Sydney.

In this session we heard from her on the broad issue of gender equality; hard work vs. luck, courage vs. compliance, resistance vs. status quo, visibility vs. silence and bold vs. ‘behaving like a girl’.

Thank you to everyone who made it possible!

Allianz...................................................... IFC QBE................................................................5 Vero................................................................7 CGU.............................................................. 9 Insurance Advisernet............................ 15 BAIS............................................................. 17 GT Insurance............................................ 21 NOVA.......................................................... 31 Emergence...............................................33 Ebix............................................................. 35 QPIB...........................................................39 World Business Forum.........................41 NIBA Mentoring..................................IBC CHU...................................................... OBC

If you’d like to advertise your products and services through NIBA, please contact Tony May today on (02) 9459 4303.

50 / INSURANCE ADVISER OCTOBER 2020

MENTORING

NIBA Mentoring – Promoting Professional Development for 10 Years

WHAT WILL THE PROGRAM DO FOR YOU? For more information and to express interest visit www.niba.com.au/mentoring

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