SEPTEMBER 2021
FACILITATING HUMAN INTERACTION
Embracing technology for better client support
DISRUPTER OR ENABLER
Insurtech makes inroads into broking
#NIBA2021
Bringing the industry together despite uncertainty
MINDSETS ALIGNED
NIBA’s outgoing and incoming CEOs discuss the Association’s future
WE ARE YOUR VOICE
CELEBRATING 25 YEARS
CONTENTS
September 2021
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 Wendy Martin
NIBA Editor Tanaya Das
Editorial enquiries
E: editor@niba.com.au
National Sales Manager Tony May E: tmay@niba.com.au
Front cover image supplied by the Association of Financial Advisers
Design
Citrus Media www.citrusmedia.com.au NIBA gives no warranty and makes no representation that the information contained in this magazine is, and will remain, suitable for any purpose or free from error. To the extent permitted by law, NIBA excludes responsibility and liability in respect of any loss arising in any way (including by way of negligence) from reliance on the information contained in this magazine or otherwise in connection with it. The contents of Insurance Adviser are protected by copyright and NIBA reserves its rights in this regard.
22
COLLABORATION IS KEY NIBA’s incoming and outgoing CEOs discuss strategy
26
COME TOGETHER AT #NIBA2021 Refuel your passion, retool your skills and reconnect with your peers
NIBA.COM.AU / 3
CONTENTS
September 2021
FEATURES 30 CONNECT
BETTER WITH CLIENTS
Technology that enables human interaction
38 INSURTECHS GALORE
Digital offerings that are available to brokers
IN EVERY ISSUE NIBA CEO Welcome.................................... 6 Representation............................................. 8 Why be a NIBA member?......................... 10 Insurance Journey: Alishia Oliver ........58
NEWS
Industry bulletin........................................ 12 Regulatory reminders............................... 16
PROFESSIONALISM
AFCA case study...............................................18 IBCCC Tip of the Month................................19 Communicating with clients..........................20
EVENTS
Forthcoming events..................................... 53 Pictorials......................................................... 54
REFERENCE
Community hub..........................................46 Insurer strength ratings............................56
4 / INSURANCE ADVISER SEPTEMBER 2021
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CEO / Welcome
A CELEBRATION OF INSURANCE BROKING
I
am pleased to report on very positive developments. Firstly, despite all the issues and challenges arising from COVID-19, including lockdowns and border closures, NIBA was able to hold our Gala Lunch for Western Australia on 6 August 2021. Very sadly, the Sydney lockdown kept me from travelling to the West, but I am told the event was a major success. One factor I like to look for is the number of people still talking after the event has concluded. Once again (typical for Perth), the conversations continued well into the afternoon. This is not surprising, given we had not held this event for two years. I would like to extend my special thanks to our Director for Western Australia, Ward Dedman, and the Chair of our WA Divisional Committee, Clint Jeuring, for hosting the event on behalf of NIBA. Secondly, and more importantly, and again despite lockdowns, border closures, and the like, we have now announced the state winners of the Broker of the Year (BOTY) and Young Professional Broker of the Year (YP BOTY). I would like to offer my sincere congratulations to each of the winners:
support of the Warren Tickle Memorial Award for Young Professional Insurance Broker of the Year.
NIBA Stephen Ball Memorial Award (BOTY)
Convention
SA/NT: Karen Skinner, MGA Insurance Brokers WA: Jeff Booth, GSK Insurance Brokers NSW/ACT: Craig Claughton, Marsh Qld: Anthony Venning, Crucial Insurance and Risk Advisors Vic/Tas: Ian Goninon, Capital Innovation Insurance Group
NIBA Warren Tickle Memorial Award (YP BOTY) NSW/ACT: Megan Farmer, Markey Insurance and Risk Qld: Alishia Oliver, Crucial Insurance and Risk Advisors SA/NT: Patrick McCole, Aon WA: Luke Cameron, Albany District Insurance Brokers Vic/Tas: Mitchell Wright, Integral
I am so pleased that NIBA has been able to recognise and celebrate excellence in insurance broking this year and the last, in the midst of huge uncertainty as to what was happening with COVID-19, the economy, the insurance industry, and again this year as the challenges continue. Despite the uncertainty and challenges, insurance brokers have continued to serve their clients to the best of their ability, and it is wonderful to see the dedication and professionalism of our award finalists and indeed all insurance brokers. The judging of the national winners is now underway, and I look forward to the announcements that will be made revealing this year’s winners. Sincere thanks to QBE for their ongoing support of the Stephen Ball Memorial Award for Insurance Broker of the Year, and to Vero for their long-term
6 / INSURANCE ADVISER SEPTEMBER 2021
Lockdowns
At the time of writing, Sydney remains in lockdown with significant COVID-19 diagnoses being reported daily, Melbourne remains in lockdown, and lockdowns are being announced for the ACT and all of regional New South Wales. It is clear to me that JobKeeper and other government support programs managed to keep businesses together during 2020, with most clients renewing their insurance programs during the year. There are signs that 2021 may have a different outcome. The support programs are more limited in scope, and the ongoing lockdowns in Sydney and Melbourne appear to be having a dramatic impact on many areas of economic activity. I hope brokers do not lose too many clients as a result of these lockdowns. I suspect the experience of insurance brokers will be an early warning signal to the Federal and State Governments regarding the economic impact of COVID-19 this year. I hope the experience is not too negative or distressing. Based on the current COVID-19 outbreak and lockdowns, we have decided to postpone the 2021.2 Convention to a later date (details on page 26). In pushing the conference back, we aim to continue to celebrate the work insurance brokers are doing for their clients despite the issues and challenges of the pandemic. Please don’t forget to register for the reconfigured 2021.2 NIBA Convention. You can attend the Convention in a mainland capital city, and access the remainder of the convention program virtually, or you can access the whole convention program virtually.
DALLAS BOOTH Chief Executive Officer, NIBA
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NEWS / Representation
WE ARE YOUR VOICE!
There is a lot happening at the present time. The following are a few key developments that insurance brokers need to be aware of.
Compensation Scheme of Last Resort
NIBA has provided a submission to Treasury on the Compensation Scheme of Last Resort (CSLR). The CSLR will provide compensation to retail and SME clients with unpaid Australian Financial Complaints Authority (AFCA) determinations, if a financial firm goes into liquidation or ceases trading. The CSLR was recommended by both the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry and the Ramsey Review. NIBA has raised several concerns about the proposed CSLR, including the expansion of CSLR to include services that were out of scope of the original recommendation by the Ramsey Review. The expansion has been proposed despite a lack of evidence to suggest that a significant problem on unpaid compensation exists within these areas. NIBA also questioned why other areas of the Ramsey Review were ignored in the design of the CSLR, in particular greater regulatory oversight and data collection by the Australian Securities and Investments Commission (ASIC) regarding professional indemnity insurance. NIBA argued that effective regulatory oversight, combined with the new intervention powers granted to ASIC, would significantly decrease demand for a CSLR. NIBA also highlighted that the proposed CSLR does not adequately address the issue of moral hazard. The current design provides an incentive to dishonest firms to use the CSLR to underwrite poor governance practices or unethical conduct, safe in the knowledge that the CSLR will ‘pick up the tab’.
Emergency Services Funding in New South Wales and Tasmania
Brokers with clients in New South Wales or Tasmania are encouraged to visit the
8 / INSURANCE ADVISER SEPTEMBER 2021
Emergency Services Funding page on the new-look NIBA website: niba.com.au/ government-policy/affordable-insurance/ Members can find a range of materials on this page including an ESL factsheet that brokers can provide to their clients and a template letter that brokers and their clients can send to their local state MP, calling for the abolition of insurance-based taxes and a more equitable system for the funding of state fire and emergency services. NIBA encourages members to share these resources with their clients and use the template letter to contact their local state MP.
Australian Reinsurance Pool Corporation Triennial Review
NIBA has provided a submission to the Treasury’s Triennial Review of the Terrorism Insurance Act 2003 and the design and operation of the Australian Reinsurance Pool Corporation (ARPC). Under the Act, the scheme is subject to a review every three years to determine whether government intervention in the terrorism insurance market remains necessary, and whether the scheme meets the needs of the market. In particular, the review focused on if physical damage caused by a cyber-terrorist attack should be covered under the scheme. In their submission, NIBA stated that while the risk of such events occurring remains low, the rise of the Internet of Things (IoT) makes attacks such as these increasingly attractive. NIBA also noted
that while the number of connected devices has increased significantly over the past few years, levels of awareness and cyber security have not always kept pace, with almost 50 per cent of SMEs rating their cyber security understanding as ‘average’ or ‘below average’. NIBA noted that several commercial insurers offer cover for physical damage and business interruption losses stemming from a cyber attack, as part of their standard property and casualty (P&C) policies. However, most of these policies exclude acts of terrorism. The submission argued that it is unlikely that cover for physical cyber attacks would be able to be sourced from the commercial market and in NIBA’s view, the CSLR is best placed to facilitate this cover to market.
Royal Commission Legislation
NIBA continues to engage with ASIC and Treasury on a number of outstanding issues relating to the Royal Commission Reforms, including breach reporting obligations, anti-hawking, deferred sales model, and design and distribution obligations. All of which will commence in October this year. NIBA has previously provided members with guidance on a number of Royal Commission Reforms scheduled to commence later this year, with more guidance expected to be released shortly, pending the outcome of these discussions. Members can access materials outlining these reforms and actions they will need to take to remain compliant via updates on the NIBA website: niba.com.au/niba-hub/
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 / Member Benefits
WHY NIBA MATTERS TO ME Members share why NIBA is important to them and the broking industry.
“NIBA sets great standards for our industry in promoting the valuable and professional role of insurance brokers. The focus on professional development and high ethical standards ensures the continual positive progression of our industry and supports brokers, insurers, clients, and the community.” MEGAN FARMER Markey Insurance & Risk The 2021 Young Professional of the Year for NSW/ACT
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.
10 / INSURANCE ADVISER SEPTEMBER 2021
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
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NEWS / Industry Bulletin
BROKING IN 2025: GEARING UP FOR THE FUTURE T he National Insurance Brokers Association (NIBA) President, Dianne Phelan, Vice-President Ward Dedman, CEO Dallas Booth, and incoming CEO Philip Kewin discussed NIBA’s latest strategic project; Broking in 2025, which is being undertaken to ensure the intermediate insurance market remains strong and viable into the future. Booth said at the start of the discussion, “This is not a strategy for NIBA, this is a strategy for insurance brokers in Australia. It primarily began with us trying to gauge where is insurance broking is heading and what direction we want to steer it to.” Phelan questioned if intermediaries might refuse to call themselves insurance brokers by 2025, because their role already encompasses so much more than brokering insurance deals. Developed with assistance from Stanford’s Professor Steven Callandar and industry leaders, the NIBA Board’s vision for Broking
in 2025 sets out steps the industry can take with the Association’s support to engage with government and regulators to secure brokers’ professional standing. Booth made a note of the current challenging market conditions, the technological advancements, and the general environment that risk management professionals work in alongside the sweeping regulatory changes that are coming in. He urged brokers to read the Deloitte Access Economics Report on The Economic Value of Insurance Broking, which describes and quantifies the elements that comprise the industry’s value: to customers, insurers, the economy, governments, and broader society. The goals highlighted during the discussion included increasing levels of professionalism across the industry, solidifying brokers’ positions as trusted risk advisors to clients, trusted partners to underwriters and capital providers as well
as trusted advisors to the government on general insurance and risk. It was made clear during the discussion that it is absolutely crucial that insurance brokers are widely regarded as competent, professional, ethical and people who act with high integrity. Phelan added that to be a trusted advisor and partner it was essential that insurance brokers self-regulate to a high degree and be qualified beyond the current minimum standards. She said, “We want brokers to be regarded as having unique skills to provide the services that they do. We are very wellplaced for this but there is still work to do.” She also stressed the importance of the Qualified Practising Insurance Broker (QPIB) designation and why intermediaries must strive to proudly display it as the mark of their professionalism. Booth concluded that NIBA will keep its members informed of the progress on this project.
For breaking news and updates curated specially for insurance brokers please visit: niba.com.au/articles
12 / INSURANCE ADVISER SEPTEMBER 2021
NEWS / Industry Bulletin
NIBA SUBMISSION TO THE REVIEW OF THE TERRORISM INSURANCE ACT 2003
N
IBA has provided a submission to the Treasury’s Triennial Review of the Terrorism Insurance Act 2003 (the Act). The Act established the Australian Reinsurance Pool Corporation (ARPC) as a statutory authority to administer the terrorism insurance scheme. Under the Act, the scheme is subject to a review every three years to determine whether government intervention in the terrorism insurance market remains necessary, and whether the scheme meets the needs of the market. In particular, the review focused on whether physical damage caused by a cyber terrorist attack should be covered under the scheme. In its submission, NIBA stated that while the risk of such events occurring remains low, the rise of the Internet of Things (IoT) makes attacks such as these increasingly attractive. NIBA also noted that while the number of connected devices has increased significantly over the past few years, levels of awareness and cyber security have not always kept pace. A survey of SMEs conducted by the Australian Cyber Security Centre found that almost 50 per cent rated their cyber security understanding as ‘average’ or ‘below average’. NIBA noted that a number of commercial insurers offer cover for physical damage and business interruption losses stemming from a cyber attack as part of their standard property and casualty
(P&C) policies. However, most of these policies exclude acts of terrorism. NIBA argued that given the low capacity currently within the commercial terrorism market, it is unlikely that cover for physical cyber attacks would be able to be sourced from the commercial market and that the scheme is best placed to facilitate this cover. NIBA highlighted a number of examples internationally where government and
co-insurance schemes provide cover for physical cyber attacks, including the Terrorism Risk Insurance Program (TRIP) in the United States and the Gestion de l’assurance et de la réassurance des risques attentats et actes de terrorisme (GAREAT) in France. You can view the full submission on the NIBA website: niba.com.au/ government-policy/submissions/
NEW INDUSTRIAL MANSLAUGHTER LAWS IN ACT
T
he Australian Capital Territory (ACT) Legislative Assembly has passed legislation to establish industrial manslaughter as an offence under the ACT Work Health and Safety laws. Industrial Relations and Workplace Safety Minister Mick Gentleman said “the new offence will provide a strong deterrent against unsafe work practices.” NIBA CEO Dallas Booth said, “Brokers need to explain the changes to their clients and ensure that their
cover remains suitable. This will be increasingly important as there have been two prosecutions for industrial manslaughter offences in other states.” Gentleman added, “Every workplace fatality is a preventable tragedy that devastates families, friends, co-workers and the wider community.” “Everyone has the right to return home safely, and employers have an important role to play in this. Workplace safety is a right that must be protected at all costs.
“The new offence carries an imprisonment penalty of up to 20 years for individuals and $16,500,000 for corporations who cause the death of a worker through the continued disregard of safe work practices and breaches of work safety obligations. These penalties reflect the extreme serious of the offence. “These laws will provide more avenues to address poor workplace safety practices and systemic non-compliance.”
For breaking news and updates curated specially for insurance brokers please visit: niba.com.au/articles
NIBA.COM.AU / 13
NEWS / Industry Bulletin
CONSULTATION ON WA WORKERS’ COMPENSATION LAWS
T
he Western Australian Minister for Industrial Relations, Bill Johnston, has released the Workers’ Compensation and Injury Management Bill 2021 for public consultation. The draft Bill will be available for public comment until 10 November 2021 before being introduced into the WA State Parliament. The draft Bill is set to modernise WA’s workers’ compensation system and is based on recommendations from WorkCover WA’s 2014 Review of the Workers’ Compensation and Injury Management Act 1981: Final Report.
NIBA and its WA Divisional Committee will be providing a submission to WorkCover WA on behalf of members. The NIBA WA Divisional Committee has established a working group to consider the proposed legislation and its impacts on the intermediated insurance market. The working group includes brokers from across the WA broking community, all of whom have considerable experience in the workers’ compensation space. Interested members are invited to provide their feedback on the draft bill to NIBA’s Policy and Research Manager, Allyssa Hextell at ahextell@niba.com.au.
A copy of the draft Bill, along with explanatory materials, can be found at on the WorkCover WA website: workcover.wa.gov.au/ resources/modernising-was-workerscompensation-laws
MENTAL HEALTH SUPPORT SERVICES FOR YOUR EMPLOYEES
N
IBA CEO Dallas Booth has acknowledged the toll that the uncertainty of the ongoing COVID-19 pandemic, as well as the lockdowns, are taking on insurance broking professionals across Australia. He said, “Without a doubt, it is a very difficult time for many of our members and their employees at present. The ongoing COVID-19 lockdowns and restrictions across multiple regions in Australia have affected many businesses and have highlighted the need for additional mental health and wellbeing services for staff, especially while working remotely from home.” “Fortunately, there are numerous resources and useful tips and tools that our members can access free of charge to assist their employees during this time.” The Black Dog Institute has a free online clinic that provides a mental health assessment tool and other support services including how to support your staff during COVID-19
and working from home checklist. These resources can be accessed at www.blackdoginstitute.org.au. The National Mental Health Commission, www.mentalhealthcommission.gov.au, has also developed a resource guide for sole traders, small businesses, medium to large businesses on how to create a mentally healthy workplace during COVID-19, and HeadsUp, www.headsup.org.au, provides free resources for employers and managers on how to adopt mentally healthy practices in your workplace.
• • •
•
For breaking news and updates curated specially for insurance brokers please visit: niba.com.au/articles
14 / INSURANCE ADVISER SEPTEMBER 2021
SafeWork or WorkSafe in your state or territory also has resources for creating mentally healthy work practices during COVID-19, which you can access on their respective websites. Booth added, “Our thoughts are with our members during this time. Please stay safe and if you or your employees are experiencing difficulties, the following support services are also available.” Lifeline (13 11 14 – operates 24/7) provides crisis support and suicide prevention services. Beyondblue (1300 224 636 – operates 24/7) provides mental health and wellbeing support services. RUOK?, www.ruok.org.au, inspires and empowers everyone to meaningfully connect with people and support anyone who may be struggling with life. Head to Health, www.headtohealth. gov.au, can help you find digital mental health and wellbeing resources.
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NEWS / Upcoming Regulatory Changes
UPCOMING REGULATORY CHANGES
October is fast approaching and with it a raft of sweeping regulatory changes that all brokers need to be aware of. These changes will affect almost every broker, so it is critical that NIBA members have a thorough understanding of the changes and the impact they will have on their business.
Reference checking and information sharing: The new provisions will require AFS licence holders to comply with new reference checking and information sharing protocols which will shortly be released by ASIC. These requirements will apply to authorised representatives of life risk brokers, and do not apply to representatives giving advice only in relation to general insurance products. The new rules take effect on 1 October 2021. Hawking of financial products: Complex new provisions relating to the “hawking” of insurance products will take effect on 5 October 2021. The provisions do not apply when an insurance broker is giving personal advice to a retail client, but they will apply to insurance brokers operating under a general advice model. The provisions will prevent the unsolicited marketing and sale of financial products to retail clients. The definitions and concepts are difficult and complex, NIBA is currently seeking clarity from Treasury on a number of issues relating to the proposed provisions and will provide further information to members once these matters are resolved. Duty to take reasonable care not to make a misrepresentation: These reforms relate to a newly defined category of “consumer insurance contracts”. They apply to insurance obtained wholly or predominantly for the personal, domestic, or household purposes of the insured. Where the new definition applies, the insured only has a duty to take reasonable care not to make a misrepresentation to the insurer before entering the consumer insurance contract. The
16 / INSURANCE ADVISER SEPTEMBER 2021
changes relate to insurance contracts entered into on or after 5 October 2021. For non-consumer insurance contracts, the existing provisions in sections 21 and 22 of the Insurance Contracts Act (duty of disclosure obligations and misrepresentation provisions) apply. NIBA will provide more information on these reforms to members. Design and distribution legislation: The new legislation requires every financial services product covered by the regime to have a corresponding ‘target market determination (TMD)’. The products captured under the regime include all products that currently require a Product Disclosure Statement. It is crucial that broker 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, 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. NIBA strongly encourages firms to obtain legal assistance for this process, in order to ensure they are meeting the new legislative obligations. There is no room for complacency, the legislation will take effect on 5 October 2021. ASIC has released a regulatory guide, RG 274 Product design and distribution obligations, outlining their interpretation of the obligations, compliance expectations and its approach to administering the obligations.
Deferred sales model for add-on insurance products: These reforms implement an industry-wide deferred sales model for add-on insurance products. The legislation introduces a complex array of obligations which defer the insurance transaction for a period of four days. The legislation applies to any insurance product sold incidentally to a primary good or service – e.g. insurance sold in conjunction with the rental of a motor vehicle or travel insurance sold after the sale of a travel product. The reforms do not apply to comprehensive motor insurance, or products recommended by financial advisers in a very limited personal advice situation. NIBA is currently liaising with Treasury to seek exemptions for a number of broker products where the immediate supply of cover provides genuine protection for consumers. The legislation is due to take effect on 5 October 2021. ASIC 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. ASIC has issued a new regulatory guide, RG 271 Internal dispute resolution, setting out its dispute resolution standards and requirements. A number of the standards and requirements set out in the RG are enforceable, so it is critical that members are aware of the new obligations. NIBA has previously provided information to its members on this issue, which can also be accessed from the media hub on the new NIBA website under “Members only content”.
NEWS / Upcoming Regulatory Changes
The requirements only apply to complaints received on or after 5 October 2021. For complaints received by firms before 5 October 2021, Regulatory Guide 165 Licensing: Internal and external dispute resolution applies. New Breach Reporting Obligations These changes strengthen the breach reporting regime for financial services licensees, by replacing the current reporting obligations. Under the new licences, licensees will be required to notify ASIC within 30 days after the AFS Licensee first knows, or is reckless with respect to whether, there are reasonable grounds to believe a reportable situation has arisen. A reportable situation arises when; • the licensee or its representative has breached/ or is likely to have breached a core obligation and the breach is significant;
•
the licensee has commenced an investigation into whether the licensee or representative has breached a core obligation and the breach is significant and the investigation has continued for more than 30 days; or • in the course of providing a financial service, the AFS licensee or representative has engaged in conduct constituting gross negligence; or committed serious fraud. The test for significance has also changed. A breach of a core obligation is deemed to be significant if: 1. the provision breached is an offence that may involve imprisonment (3+ months for dishonesty offences, 12+ months for others); 2. the provision breached is a civil penalty provision, or s1041H(1) of the Corporations Act or s12DA(1) of the ASIC Act (misleading or
deceptive conduct in relation to a financial product or service); or 3. the breach results, or is likely to result, in material loss or damage to clients or members. The legislation also introduces new obligations on AFS Licensees to investigate reportable situations that may cause loss or damage to retail clients who received personal advice, to notify those potentially affected clients, and to pay compensation to affected clients within 30 days of completing the investigation. Members will need to assess their breach reporting practices in light of the new regime and, if necessary, seek advice on how to build practices into their business that comply with the new regimes. ASIC has released draft Regulatory Guide 78, to help members understand and comply with the new changes. The changes are scheduled to take effect on 1 October 2021.
NIBA.COM.AU / 17
PROFESSIONALISM / AFCA Case Study
CHECK THE ACCURACY OF WHAT YOU TELL A CLIENT
If you make an error, try and remedy it as soon as possible and let the customer know what options exist and obtain their instructions (also apologise). Even if it can’t be fixed you may not be liable if, as in this case, the complainant could not prove there was an alternative policy available.
The broker’s case
The broker submitted that: • it had made a mistake, but this had been an honest mistake and it had already apologised to the complainant. • following the detection of the error, it had immediately attempted to negotiate with the insurer to reduce the excess, but the insurer had refused and had instead offered the complainant 14 days to find an alternative policy. • on 8 December 2020, the complainant had instead instructed the broker not to seek alternative cover on 8 December 2020. • the renewal report was merely a summary of offers made by various insurers and the broker’s recommendation and was not a legally binding offer by the insurer. • even if the broker had known of the correct excess, it still would have recommended the policy to the complainant. • even if it had been in breach of its duty of care, the complainant had not suffered any loss as there was no better policy available. • email correspondence between the broker and the complainant was submitted as evidence.
The complainant’s case
The complainant submitted that the broker had been in breach of their duty of care because: • the complainant would suffer a loss if an excess more than $250 was charged at the location with the $5,000 excess. • the insurance contract was based on the offer in the insurance renewal report. • the renewal contract was finalised on 26 November 2020 and so, any action taken by the broker on 1 December 2020 in providing the Schedule was irrelevant. • the premium had been deducted on 1 December 2020, which was indicative of the accepted policy being the current one.
18 / INSURANCE ADVISER SEPTEMBER 2021
• •
•
•
the 14 day period to find alternative cover was irrelevant. the broker had engaged in misleading and deceptive conduct by suggesting the complainant could not rely on the renewal report to conclude the renewal. the complainant had relied on the insurance renewal report to bind cover as the broker had not provided anything else by way of a renewal offer. even if the complainant had not suffered loss yet, the broker had not acted in good faith and so, the complainant sought indemnity from the broker for $4,750 per claim, if the quantum exceeds $5,000, for any and all claims that may be made at the location in question.
BY MARK RADFORD
Principal, Radford Lawyers
•
•
The AFCA decision
AFCA confirmed its position regarding the duty of care owed by an insurance broker. • An insurance broker owed a duty of care when acting on a client’s behalf, with the standard of care being that of a competent and experienced broker. • A broker must ensure that the policy being arranged for their client protects the client against relevant risks, and the broker must use reasonable care and skill in determining the needs of the clients, with this including obtaining client instructions. • When a policy exclusion or limitation impacts a client’s needs, the broker must properly inform the client of this, so long as it would be reasonable to do so in the circumstances. o In determining reasonableness, the AFCA will consider the requirements in the Insurance Brokers Code of Practice and good industry practice. • The onus of proof is on the complainant to establish that a broker has breached duty of care, and if established, the broker will
•
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be liable to compensate the complainant for any losses arising from the breach. In determining whether a broker’s breach caused a complaint’s loss, the AFCA will consider the loss to be the amount necessary to restore the complainant to the position it would have been in had the breach not occurred. o However, the complainant will not be awarded compensation if the complainant is found to be no worse off than if the failure had not occurred. AFCA concluded that: the broker had an obligation to provide correct information to the complainant regarding the excess, and it had failed to do so by failing to communicate the correct excess to the complainant prior to the renewal period of 1 December 2020. o It was also clear the complainant had brought the error to the broker’s attention. it was not satisfied a valid contract existed between the complainant and the insurer with the $250 excess applicable, as this had not been offered by the insurer themselves. however, the complainant had failed to establish a loss based on the broker’s error, because it had failed to show that it would have done anything differently had it been aware of the correct excess, as the provided information indicates that there was no alternative policy options available to the complainant. although the broker did make an error, its actions in attempting to remedy its mistake by attempting to negotiate a lower excess with the insurer were reasonable in the circumstances. thus, the complainant was not entitled to any compensation from the broker as the complainant could not establish it had suffered any loss due to the broker’s actions.
PROFESSIONALISM / IBCCC Tip of the Month
BREACHES SHOULD GUIDE THE WAY FORWARD Code breaches and complaints should prompt subscribers to seek out root causes and act to prevent similar instances. Here, we share examples of good practices found in the latest Annual Compliance Statement.
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onsumer expectations evolve, laws change, mergers occur, IT systems are updated, products develop, and staff come, go, and move. Mistakes and problems in this everchanging industry are inevitable, but when responded to meaningfully, Code breaches and complaints should drive improvements that lead to better practice and greater consumer trust. Every year, the Insurance Brokers Code Compliance Committee (the Committee) seeks data about complaints and breaches of the Insurance Brokers Code of Practice (the Code) from subscribers. At its best, this self-reported information should reflect robust compliance frameworks and a culture that regards breach and complaint reporting as triggers for ongoing improvement. What do the examples demonstrate? • The subscribers involved had multiple systems in place for detecting breaches. • They routinely analyse breach and complaint data to identify the root cause (and the main Service Standard breached). • Most importantly, they had addressed underlying issues as well as fixing the problem in each case. • However, some of the 1,700-plus instances reported in the 2020 Annual Compliance Statement (ACS) were miscategorised by Service Standard and showed little evidence of rectification beyond an immediate fix, such as an apology or reimbursement. The Committee has urged all subscribers to use the examples from 2020 to spark discussions about areas that could be improved and to consider
“At its best, this self-reported information should reflect robust compliance frameworks and a culture that regards breach and complaint reporting as triggers for ongoing improvement”
whether any of the long-term remediations, could be of value. While the examples deal with specific cases, the Committee draws attention to a few broader points: • Consider all potential sources of breach data, rather than relying too heavily, or exclusively, on complaint and incident registers. Breaches can be identified through audits (targeted internal audits, spot check audits by managers, and internal and external audits); reviews of policies, procedures, and products; monitoring and quality assurance; and, thirdparty feedback. • Institutions should record all complaints, including dissatisfaction with a third party’s product or service (these can provide useful information about arrangements with that party). A culture and framework that supports complaintreporting is essential; as is staff training and communication. • Privacy protections are important, yet breaches were common – and mostly attributed to human error or a failure to follow procedures. In many cases, they
•
were reported as being isolated incidents requiring no broader remediation. Such breaches flag the need for ongoing and refresher training, as well as routine alerts and reminders for staff. Privacy breaches involving a system error show that regular system checks and testing are essential. When privacy is breached, affected clients should be advised and, to maintain trust, this advice should state how the breach was rectified.
You can access a range of breach examples from the 2020 ACS by Service Standard on the IBCCC website at insurancebrokerscode.com.au or by scanning the QR code below.
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PROFESSIONALISM / Communication
GREAT CUSTOMER SERVICE DOES NOT HAVE TO BE FACE-TO-FACE
As some areas of the country find themselves in an extended lockdown and everywhere else appears to have the potential for being in and out of lockdowns, ensuring effective communication with your clients is more important than ever.
NICK HILL
Director, Hillster Marketing
Be mindful
Everyone has different circumstances. If you know someone’s circumstances, you can communicate with them more effectively. Remember that just because you may be calm on the home front, others may be up to their necks in home schooling and chaos. So, think about the time you call and whether it is the right time to be calling for a sales pitch, instead of checking in to see if they are coping okay.
Look at digital transformation options
The pace of digitalisation has increased substantially. If you haven’t looked at options to improve your team and your clients’ access to information, then you should. For example, it may be improved claims management, reducing the double entry of data through an updated insurance system, developing client portals for 24-hour access, or utilising a CRM effectively so you know who has said what to whom. People are more comfortable with using digital solutions than ever before and every hour of data entry/data search you can save, is an hour you can use to deliver greater service to your clients.
Keep communicating respectfully
There is a strong argument to boost the amount of communication you are giving to your clients. You may just need to refocus on what you are saying to move away from purely sales communications. Last year, one of my clients decided to refocus their messaging and pull back some of the more general information to focus on delivering important information to clients.
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Have a light-hearted moment
We all need a bit of light relief from time to time, so, whether it is a daily dad joke, sharing photos of your pets, or a more extensive video, it is a great time to put a smile on people’s faces.
Don’t forget your team
It is easy to focus on clients and forget to make sure your employees are doing okay. It is part welfare and part checking they have everything they need to keep delighting the client. One of the most successful changes made by a business I work with was to create a daily rhythm of 15-minute zoom calls every morning
for the executive team. This boosted team morale during a long period of time working from home and increased the effectiveness of client service through everyone being better informed. These tips are always relevant and if you are already doing all of this then great. If not, think about how you can make some changes to give your clients, and your employees, the best possible experience from working with you during a difficult time. Work together with your teams, underwriters and clients to get through this. Savour every face-to-face moment you do have and, above all, take care.
ADVERTORIAL / HMIA
THE HEAVY MOTOR TRANSPORT INDUSTRY IS CHANGING
T
he pressures of the pandemic have led to the digital transformation of the HMIA team and their clients. For the heavy motor transport industry, the necessity to provide Australians with the supplies they need has never been greater. At HMIA, while we’re very thankful not to have been an industry in decline, we recognise that the increased volume of transport work, and subsequent pressure on everyone in our industry, has meant making some key changes to our own business. This has included hiring key staff, investing further in technology, and expanding our on-theground presence in several states. We are also increasing our support for the mental health of the workforce that is truly keeping Australia’s wheels in motion right now through our sponsorship of Healthy Heads in Trucks & Sheds. If you’ve been following us on LinkedIn, you would have seen that Healthy Heads in Trucks & Sheds have launched their free National Mental Health and Wellbeing Roadmap for the road transport, warehousing, and logistics industries. We’re proud to support this incredible not-for-profit as it continues to address one of the biggest challenges facing the health and wellbeing of our industry’s most important resource: its people. To meet the growing demands for our services, our team has grown too. Cameron Smith has relocated from Sydney to Queensland to work closely with our Queensland partners as their dedicated Client Relationship Manager. We’re particularly excited to have the highly regarded Client Relationship Manager Meaghan Dell join our team in Victoria. And our very own Kathleen Richards has been promoted to Claims Manager in Sydney. We congratulate
all three on their recent appointments and wish them well in the future. Like many of you, our team is currently working remotely through various lockdowns. Rather than let it get us down, it’s been a wonderful reminder of just how agile and innovative our team has become. Thanks to our ongoing investment in digital transformation, we’re proud to say our team is still here for you whenever you need them. Given the increased pressures on heavy motor transport, our ability to not just maintain our service, but also increase it, is something we’ve been especially proud of over the past few months. We’re glad to see so many more of our clients recognise the benefits of risk management, particularly in these uncertain times. We’ve seen a strong growth in the demand for our risk management services
to assist in managing operational risks and reducing occurrences of claims. If you haven’t yet taken advantage of our technology excess discount, be sure to raise it with your Client Relationship Manager. If you want to stay ahead of industry news, make sure you follow us on LinkedIn at linkedin.com/company/ heavy-motor-insurance-australia or scan the QR code below.
This document is intended for Insurance Intermediaries only. HMIA Pty Ltd (ABN 11 169 198 323, AR 462126) is an Authorised Representative of SGUAS Pty Ltd (ABN 15 096 726 895, AFSL 234437) and acts under a binding authority as agent for the insurer of the product, HDI Global Specialty SE – Australia (ABN 58 129 395 544 AFSL 458776). Terms, conditions, limits and exclusions apply to the products referred to above. Any advice that may be contained in this document is general advice only and does not take into account your client’s objectives‚ financial situation or needs. Before making a decision to purchase the product we recommend that your client consider whether it is appropriate for their circumstances and read the Product Disclosure Statement and Policy Wording (‘PDS’). A copy of the PDS can be obtained by contacting HMIA on 02 9227 8400 or visiting www.hmia.com.au.
NIBA.COM.AU / 21
COVER STORY / Interview
A continuation, not a shift On 16 August 2021, Philip Kewin began his journey as NIBA’s new Chief Executive Officer working alongside the outgoing Chief Excutive Officer, Dallas Booth. They discuss the legacy of NIBA and the regulatory groundwork they plan to continue building on. INTERVIEW BY TANAYA DAS
A
fter 10 years leading the team at the National Insurance Brokers Association (NIBA) in the role of Chief Executive Officer, Dallas Booth is now ready to hand over the reins to his successor, Philip Kewin. Insurance Adviser caught up with them to discuss their plans for NIBA going forward. Booth and Kewin’s visions for the future of NIBA are remarkably similar. They both believe that in a world defined by multiple challenges faced by insurance brokers, an industry body like NIBA exists to equip members with the tools for the future and to ensure that their interests are well represented. They both view the vital role that insurance brokers play as absolutely crucial to the health of the economy.
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THE ROLE AND VALUE OF INSURANCE BROKERS
Booth believes the key accomplishment that he is most proud of during his long tenure is The Economic Value of Insurance Broking Report, developed by Deloitte Access Economics about the role and value of insurance brokers. It is a report that is the first of its kind in the world, and has been received enthusiastically by equivalent associations in Europe and North America. He says, “In some ways, we have struggled for a long time to find ways to communicate the real value of brokers and the immense benefit that they provide to their clients and the community. Then Deloitte Access Economics came in and did a thorough analysis of what brokers
do, how they work, how they interrelate with their clients and insurers, and how that process benefits individuals, businesses, communities, and the economy. I think it is a really important report that provides a foundation statement of the true value of intermediaries and insurance broking in Australia. “Most of the literature about insurance is either technical, with a focus on underwriting or actuarial insights, or it is legal or insurance law analysis. But there’s very little, if any literature on the value brokers bring from an economist’s perspective.” In absolute sync with Booth, Kewin adds, “Even though insurance generally has a poor public perception, there is an opportunity
“Dallas and the Board have done an excellent job in the planning and preparation of the NIBA Strategy which we have started to share with our members. My role is to further implement that strategy, in conjunction with all key stakeholders. I am confident that together we will forge a strong future for insurance brokers.” – PHILIP KEWIN to help change the narrative, so people see the good experiences and not the fewer bad ones that tend to get more publicity.” “More people seeking insurance, particularly through a broker, is better for individuals, businesses, the community and the government. The Economic Value of Insurance Broking Report absolutely backs up the phenomenal benefits that insurance intermediaries bring to the table. Now is the time to create public awareness of the value of a broker and this report is going to help us do that.”
ONE VOICE FOR BROKERS
Kewin observes that NIBA’s biggest strength right now is that generally all stakeholders are working together and NIBA is a
credible and trusted representative for the insurance broker community. “Right now, we have a great opportunity to set minimum education standards, introduce an updated Code of Practice and establish ourselves as a true profession,” he says. Booth adds that he has massive confidence in insurance brokers and their commitment to their clients. This had made him proud to serve the membership for the last decade. Kewin expresses the same sentiment and adds that his immediate plans are to continue to strengthen NIBA’s mission of being the one voice for representing insurance brokers and the value they provide to Australian consumers. He says, “I aim to build on the goals and objectives of representation, professionalism and community.
Right now, we have the opportunity to future proof broking by establishing intermediaries as the trusted advisers to clients, government and regulators.” The only blip on the horizon that Booth is concerned about is the policy processes over the past five years which have placed an incredible legislative and regulatory burden on the broking and insurance professions. He says, “This overwhelming burden will have very little benefit for the clients. I hope that the current Australian Law Reform Commission project will find ways to simplify the law, particularly chapter seven of the Corporations Act, which is beneficial to financial services clients.” Kewin adds that he wants to try and be ahead of any other regulatory
NIBA.COM.AU / 23
“I have offered to the Board and Phil my support as required to help NIBA continue to meet its challenges. There are some big projects that will go into 2022. There are other things that will happen beyond 2022, especially the ongoing implementation of the new Code of Practice. Phil is the new Chief Executive Officer of NIBA, he sits in the hot seat, but I will give him every support I can.” – DALLAS BOOTH and legislative curveballs coming in the general direction of brokers, “and the way to do that is by implementing the Code of Practice and preparing for the upcoming remuneration review. Minimum education standards are also a good way to ensure that insurance brokers remain future proof.”
WORKING IN CONJUNCTION
Even after he steps away from the dayto-day responsibilities of leading the association, Booth will continue his involvement with NIBA and consult on regulatory and legislative matters. He says, “I have offered to the Board and Phil my support, as required to help NIBA continue to meet its challenges.
24 / INSURANCE ADVISER SEPTEMBER 2021
There are some big projects that will go into 2022. We’re doing a lot of work to prepare for those projects. There are other things that will happen beyond 2022, especially the ongoing implementation of the new Code of Practice. Phil is the new Chief Executive Officer of NIBA, he sits in the hot seat, but I will give him every support I can.” Kewin believes that the current transition is more of a continuation of what NIBA has stood for, not a radical shift towards a major change. “Dallas and the Board have done an excellent job in the planning and preparation of the NIBA strategy, The Future of Broking 2025, which we have started to share with members. My role is to further implement that strategy,
in conjunction with all key stakeholders. I am confident that together we will forge a strong future for insurance brokers,” he says. “We are uniquely placed to provide true market intelligence directly from clients to the insurers, so that they can adapt to changing market needs. If we implement the Code, minimum education standards, retain commissions and provide certainty, we can also define a clear career path and attract more talent to the broking profession.” “Importantly, rather than waiting to see if the further change is forced upon us, the NIBA strategy is about getting on the front foot and proactively shaping the future for the insurance broking profession,” Kewin concludes.
opportunities bids
acquisitions claims Before & after
challenges insights catastrophes big decisions learnings
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COMMUNITY / NIBA Convention
N
#NIBA2021: A note from Dallas Booth
IBA has made the difficult decision to postpone the 2021.2 NIBA Convention currently scheduled to take place from 28 September – 28 October 2021. The Convention will now be held from 7–21 February 2022. We have been monitoring the COVID-19 situation and advice from health authorities closely to ensure that we protect the health, safety, and wellbeing of our staff, delegates, sponsors, exhibitors, and suppliers. With the ongoing COVID-19 lockdowns and border closures, it is very unlikely that NIBA will be able to hold a face-to-face event in Sydney in October. Similarly, the situation in Melbourne and Brisbane is uncertain, and a face-to-face event may not be feasible during September and October. This uncertainty is likely to be reduced in the new year as the community reaches higher levels of vaccination, and as such, travel and events will hopefully become more feasible. NIBA has considered proceeding with the Convention in Perth and Adelaide, however, it would be logistically challenging and delegates from COVID-19 lockdown areas do not have the opportunity to attend in person at this time. NIBA believes that this decision will enable our members, sponsors, and exhibitors to have the best opportunity to connect and enjoy the Convention faceto-face, while also maximising the online virtual component of the Convention. I encourage you all to register for #NIBA2021 on the website: niba.com.au/convention/. The new dates are provided below, and full program details are available on the convention page above. Conference delegates will still have the option of attending one day face-to-face and four days virtually, or all five days virtually. Please mark the relevant date(s) in your calendar now.
7 FEBRUARY – ADELAIDE 8 FEBRUARY – MELBOURNE 14 FEBRUARY – PERTH 16 FEBRUARY – BRISBANE 21 FEBRUARY – SYDNEY, WITH A CONCLUDING DINNER. If you have any questions about the 2021.2 NIBA Convention, please contact us at events@niba.com.au
26 / INSURANCE ADVISER SEPTEMBER 2021
NIBA Convention / COMMUNITY
A GUIDE TO #NIBA2021 This year we are bringing the NIBA Convention to you. Delegates will have the option of attending one day face-to-face and four days virtually, or all five days virtually. BY TANAYA DAS
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he following is a tête-àtête with #NIBA2021.2 convention speaker; John Trowbridge – insurance industry expert and a previous APRA Member. John is conducting an independent review for the Insurance Council of Australia (ICA) on tackling the availability and affordability of commercial lines of insurance, particularly for small and medium-sized enterprises (SMEs). Insurance Adviser: Based on your study of the insurance landscape, what are your thoughts on the state of the industry in Australia in 2021? John Trowbridge: The industry is attempting to recover from some past losses and previous under-pricing in several classes of business that affect SMEs in particular. Insurance companies are also grappling with what they see as claim costs that continue to show increasing frequency or increasing settlements. In longtail business, that is a difficult assessment. Some market segments are also becoming regarded as inherently higher risk, e.g., southern New South Wales and into Victoria as a result of the 2019 bushfires.
It is not surprising then that most insurers are acting defensively in making their underwriting assessments of many types of risk, particularly
professional indemnity, public liability and, where weather events are seen to generate risk. Hence, capacity is reduced, with most Lloyd’s syndicates and some local insurers withdrawing from some market segments and others imposing major price increases, larger deductibles, and/or more restrictive terms and conditions. IA: So far in your independent review, what are your findings in regard to the availability and affordability of insurance for SMEs in Australia? JT: The outcome in some market segments is, as we all know, a lack of availability or else awkward affordability problems for many buyers of insurance. We have even seen businesses close where insurance cannot be obtained at a price that is economic for the business or just not obtainable at all. The nature of insurance, whereby businesses transfer risk to insurers, and the structure of the insurance market, whereby individual insurers are free to underwrite and price their offerings according to their own business strategies and commercial considerations, make these affordability and availability problems difficult to solve. Insurers NIBA.COM.AU / 27
COMMUNITY / NIBA Convention
are also of course banned from colluding on price and other matters. As a result, we have not yet seen collective industry initiatives aimed at solving these problems. In many cases, the buyers are calling for government intervention of some kind but in most market segments that is not justifiable, is not happening, and is not likely to happen. There are also buyer groups looking for alternatives to conventional insurance, such as through Discretionary Mutual Finds (DMFs). Some of these kinds of initiatives may come to fruition, but mostly they are difficult to orchestrate and do not suit all buyer groups. IA: Can you make any comments on the recommendations based on your findings? JT: My recommendations are based around the idea of bringing insurance buyers, and particularly buyer groups, to the table with insurer representatives. Together, they need to seek an improved mutual understanding of each side’s difficulties, goals and assessments of the circumstances, and to be followed by more efforts on both sides to find workable solutions. I am encouraging insurers to recognise the economic and social importance of responding to the market problems, living up to the industry’s social licence if you will, and to invest in responding in constructive ways. I am also encouraging buyers, and particularly buyer groups, to explore in-depth their risk management and risk transfer goals in efforts to find better ways of approaching insurers and dealing with them. Both sides should be thinking broadly and innovatively.
“Insurers have become more cautious, such that the vibrant competitiveness of softer markets has given way for the time being to greater risk averseness and protection of capital, with less concern about competitive market positions.” – JOHN TROWBRIDGE, INSURANCE INDUSTRY EXPERT IA: What role do you see insurance brokers playing in the current scenario? JT: Insurance brokers can and do play a key role in this marketplace. Buyers need to be able to rely on them for their expertise regarding the types of cover they want or need, and also for their market knowledge: the right underwriter for a specific risk and the best way to ensure proper cover. In hard markets, as we have now, the broker’s role is more valuable than ever. In the context of group schemes and overcoming the market problems, brokers can also take on a consultative role, on their own or with independent specialists, regarding the introduction of new group schemes and the restructuring of existing ones. IA: What do you think the recent natural calamities and the COVID-19 pandemic have revealed about the insurance industry in Australia? JT: The natural calamities have been costly to many insurers and have led to predictable consequences of higher prices, reduced capacity or risk appetite, and greater scrutiny of many risks. Insurers have become more cautious, such that the vibrant competitiveness of softer markets has given way for the time being to greater risk averseness and protection of capital, with less
concern about competitive market positions. The pandemic has opened everyone’s eyes to types and levels of risk that were not foreseen, or not on many people’s radars. This includes cyber risk and other commercial risks that emerge as our economy and our society take on some new characteristics to which we all must adapt.
SPONSOR OR EXHIBIT AT #NIBA2021 To discuss sponsorship and exhibition opportunities, please contact us:
Helen McGowan Waldron Smith Management T: 03 9645 6311 E: helen@wsm.com.au
Tony May NIBA National Advertising Sales Manager T: 02 9459 4320 M: 0401 485 188 E: tmay@niba.com.au
REGISTRATION FEES REGISTRATION TYPE EARLY BIRD RATE INC GST STANDARD RATE INC GST Available until 20 December 2021 Available from 21 December 2021 Member $385 $495 Non Member $495 $605 Virtual Only – Member $285 $395 Virtual Only – Non Member $395 $505
WITH THANKS TO OUR PRINCIPAL SPONSORS
28 / INSURANCE ADVISER SEPTEMBER 2021
2021.2 NIBA Convention
PROFESSIONALISM + RESILIENCE = OPPORTUNITY
This year we are bringing the NIBA Convention to you. Delegates will have the option of attending one day face-to-face and four days virtually, or all five days virtually.
7 February Adelaide 8 February Melbourne 14 February Perth 16 February Brisbane 21 February Sydney THANKS TO OUR PRINCIPAL PARTNERS
FEATURE / Technology
30 / INSURANCE ADVISER SEPTEMBER 2021
Creating time with tech
Ensuring that tech creates more time for human interaction – rather than replaces it – is key to a successful broking tech launch. BY MARTIN WANLESS
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FEATURE / Technology
“D
igital transformation” has been on the tips of insurance brokers’ tongues for a few years now, and the need for robust, reliable and secure systems and processes has been highlighted with a vengeance during the global pandemic. As well as needing reliable, portable technology simply to keep the business ticking over, brokers also need to meet the needs and desires of their customers. The face-to-face (or Zoom-to-Zoom) contact is still vitally important for many – if not most – broker-client relationships. And that’s never going to change. However, as general consumers, those same clients expect a stellar digital
experience with the businesses they deal with – the change in consumer behaviour as a consequence of COVID-19 underlines this notion. They expect to be able to log on at any time of day or night and see their information. They want to be able to interact with a business on their terms. They want to receive relevant information that’s personal to them. “A lot of brokers have a good understanding of what technology could do to their business,” says David Hampton, CEO at BAIS insurance technology. “One of the limiting factors that they run up against is the lack of integrated data in their computer system – simple systems
record simple data and limit what can be done. Data is the key.” The prospect of implementing technology in a business can be a daunting one. While brokers may know what could be achieved – and would like to achieve that outcome – the sizeable task of undergoing a tech implementation can be off-putting. The notion that some of the broker-client relationship might have to be sacrificed is also jotted down in the ‘against’ column. Gurbaj Pawar, who has an extensive background in consulting, finance and insurance, is the Head of Strategy at AUB Group, parent entity of Austbrokers,
BE WARY OF THE CYBER RISKS While many brokers are wellversed in the cyber risks their clients face, their own digital platforms may leave something to be desired. An evolution of software in a number of businesses has resulted in a patchwork quilt of solutions, with a number of consequential vulnerabilities. “Many brokers have a few different pieces of technology – a server, some cloud-based solutions – and often when you look at it I could pick holes through it in minutes,” says Andrew Barbara, Managing Director of FocusNet. “If they were targeted by a cyberattack they would be in serious trouble.” Barbara advises that, even if brokers aren’t in a position to invest in new technology at present, investing in cybersecurity is a requirement.
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FEATURE / Technology
and a business that has multiple digital initiatives underway with a focus on enhancing the client and broker proposition across its network of brokerages in Australia and New Zealand. “How would the insurance broking industry be impacted if Google or Apple came to play? How would the client and broker experience change? That’s the ‘North Star’ I keep in the back of my mind when thinking about our response,” he says. “Brokers will continue to evolve to meet the needs of clients but the pace of change will only get faster… client expectations may force our hand to change the way we do things, including processes that have served us well historically. “A ‘don’t fix something that ain’t broke’ will be fine in the near term but in due time, we’ll likely need to adopt more technologydriven digital ways of working – processes that lead to better client experiences, reduced cost, and an even stronger ‘trusted partner’ client relationship.”
FORCED INTO A FIX
The pandemic has, in some cases, fast-tracked the appetite for change – after all, you cannot mobilise huge filing cabinets and servers too readily. “We’ve spoken with a lot of brokers over the past 18 months, and that realisation has hit them very hard,” says Irene Kendall, Director of Technosoft Solutions. “They’ve quickly realised they can’t operate very effectively as there’s only one person who can take a file home, so it’s really forced people to think about their systems and processes.” The benefits of operating at a group level with over 60 brokerages across the country, however, means Pawar has test cases at his fingertips. And, when it comes to taking the plunge, it turns out data-based evidence – rather than a theoretical notion of potential benefit – can be rather compelling. “Access to quality data and the ability to analyse and drive insight from the data is critical,” says Pawar. “Without data, we tend to rely on instinct and personal experiences, which are important, but make it difficult to create broad alignment. “If I go out and show brokers how much effort they’re spending and what they’re getting in return, as well as a business case for how that could be improved, the discussion becomes real, and people are interested. Using real-life examples is key, so showing how a process could be faster,
34 / INSURANCE ADVISER SEPTEMBER 2021
better, and putting a dollar value behind the benefit helps,” he says. “Once we’re on the same page about the benefits, having a chat about the ‘how’ and talking about technology, digitisation, bots, process improvement becomes much easier.”
RELINQUISHING THE REPETITIVE
By automating the mundane, day-to-day tasks, brokers’ time can be invested in what really matters – those face-to-face relationships that truly add value to the business. For example, says Andrew Barbara, Managing Director of FocusNet, automation
can save hours that can be reinvested into other areas of the business. “We’ve recently worked on a project to automate refunds linked to policy cancellations,” he says. “By automating that laborious process, which is typically a manual one, the brokerage was able to save a lot of time, as well as ensuring it was doing the right thing from a compliance perspective.” And that compliance aspect is something that brokers need to keep in mind too, because while tech can help keep an audit trail, it has to adhere to the same stringent requirements as any other aspect of the business.
“HOW WOULD THE INSURANCE BROKING INDUSTRY BE IMPACTED IF GOOGLE OR APPLE CAME TO PLAY? HOW WOULD THE CLIENT AND BROKER EXPERIENCE CHANGE? THAT’S THE ‘NORTH STAR’ I KEEP IN THE BACK OF MY MIND.” – GURBAJ PAWAR, AUB GROUP
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FEATURE / Technology
THREE STEPS TO A SMOOTH TECH IMPLEMENTATION David Hampton of BAIS insurance technology says three things are critically important when introducing new technology into your brokerage.
“IF YOU WANT TO ENCOURAGE YOUNG PEOPLE IN THE INDUSTRY TO JOIN YOUR BUSINESS, YOU HAVE TO HAVE THE TECHNOLOGY – YOU SIMPLY HAVE TO HAVE IT.” – IRENE KENDALL, TECHNOSOFT SOLUTIONS “AFS licensing is designed to be technology-neutral,” says Samantha O’Brien, Partner at DLA Piper. “The same obligations and measures that you’d put in place for a non-technological solution must be in place for a technological solution.” And this becomes particularly pertinent when you’re licensing technology from a provider – as most businesses today do. “As far as the regulation goes, that doesn’t change your responsibilities – something you outsource is treated as though you were doing it. So you need to manage the risks that tech creates, including data protection.” Overall, however, technology is critically important to simply do business today – and a well-planned, strategic implementation can deliver numerous benefits. As well as making broking businesses more robust and efficient
36 / INSURANCE ADVISER SEPTEMBER 2021
today, and attracting new clients tomorrow, having a strong tech platform in the business also serves a longer-term purpose, too. “If you want to encourage young people into the industry and to join your business, you have to have the technology – you simply have to have it,” says Kendall. Young professionals are used to using the best technology out there, and the reality is that they’re not going to choose to work in an environment with second-class digital solutions. Ultimately, the technology is out there to help create significant efficiencies in your business, and enable you to invest in doing what you do best – spending time with your clients, analysing their risks, and being there when they need you to be. Technology should complement the way you work – not compete against it.
Understand what you want: If you haven’t got a clear idea of what you want the technology to do (for example, automate certain processes, and provide a portal for clients to log in to self-serve) then the project will not deliver the business benefit you need it to. Allocate your best resources: Often a tech project is allocated to someone who has the capacity to take it on, or even someone who’s exiting the business. Your best people know the business, have ideas and will help make the project happen. Find a partner you can form a relationship with: You need to work with people who can quickly learn about your business, get to know it and be there to evolve the tech you have over time. Insurance is a complex industry, and your tech partner needs to understand the intricacies of insurance broking.
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FEATURE / Insurtech
HOW INSURTECHS ARE RESHAPING BROKING
38 / INSURANCE ADVISER SEPTEMBER 2021
Insurtechs are taking the insurance sector on a journey of rapid transformation. BY NINA HENDY
I
nsurance brokers are turning to insurtechs to help with some of the heavy lifting, resulting in better service and greater efficiencies. There are over 1,000 insurtechs operating around the world, and around 80 insurtech startups in Australia are counted as members of Insurtech Australia. Growth has been evident across all six key insurance spaces where insurtechs offer their digital solutions. This includes claims, smarter loss prevention, pricing and underwriting agility, efficient insurance administration, innovative marketing and distribution, and new products for better customer value. Rita Yates, co-founder and CEO of Insurtech Australia, said in a recent interview that insurers have always had a lot of data at hand, but have not had
the tools to analyse it effectively and to drill down into the granular detail. This is where insurtechs come in, she says. Meanwhile, the huge amount of regulatory change post-Royal Commission in the insurance sector could be more conductive to insurtechs, she says. “On a positive, there is a regulatory sandbox, which was developed some time ago, where essentially insurtechs and fintechs can test their
NIBA.COM.AU / 39
FEATURE / Insurtech
“THERE IS A REGULATORY SANDBOX, WHICH WAS DEVELOPED SOME TIME AGO, WHERE ESSENTIALLY INSURTECHS AND FINTECHS CAN TEST THEIR INNOVATIONS. IT WOULD BE GREAT TO SEE THAT EXPANDED, BECAUSE IT’S QUITE LIMITED AT THE MOMENT.” – RITA YATES, INSURTECH AUSTRALIA innovations. It would be great to see that expanded, because it’s quite limited at the moment,” Yates says. Blue Zebra Insurance’s Chief Technology Officer, Amar Roomi, predicts that in the near future, collaboration with insurtechs will be decisive right across the value chain.
40 / INSURANCE ADVISER SEPTEMBER 2021
Innovation opportunities will extend far further than the usual paradigm of saving time and money – the advent of the Internet of Things (IoT) devices can create change in the way the insurance industry helps to manage and mitigate risks for individuals and businesses, he says. “Large incumbents continue to struggle with deeply embedded legacy systems and processes. Successful insurtechs are unencumbered by this baggage, and coupled with a clear strategy, are able to drive innovation at pace,” he says. Blue Zebra Insurance has understood the significant value that intermediaries provide to policyholders, leveraging data, robotics and artificial intelligence (AI) to reduce transaction friction.
“Technology, in this context, serves to augment and allow brokers to focus on articulating risk at the point of acquisition and provide their invaluable expertise and support at the moment of truth – claim time,” he says. “Whether as private individuals or business owners, clients appreciate expertise in a subject that is not always well understood,” he says. Cover Genius Co-Founder and CEO, Angus McDonald, agrees. Innovative solutions co-created with partners such as eBay, Booking Holdings and Skyscanner have enabled the firm to expand operational capabilities across more verticals and create fully customisable embedded insurance solutions. Research by Cover Genius reveals that 70 per cent of Australian digital bank customers would be highly interested in receiving embedded insurance offers based on their transaction data, he says.
FEATURE / Insurtech
“TECHNOLOGY, IN THIS CONTEXT, SERVES TO AUGMENT AND ALLOW BROKERS TO FOCUS ON ARTICULATING RISK AT THE POINT OF ACQUISITION AND PROVIDE THEIR INVALUABLE EXPERTISE AND SUPPORT AT THE MOMENT OF TRUTH – CLAIM TIME.” – AMAR ROOMI, BLUE ZEBRA It also revealed interest in receiving offers for property insurance such as renters, homeowners and landlords – keen for travel insurance, auto insurance and a range of warranties for highvalue personal and household items. “Rather than providing insurance as a ‘second step’, the survey points to the opportunities for brokers to find ways of harnessing data to deliver real-time opportunities that
42 / INSURANCE ADVISER SEPTEMBER 2021
fit with clients’ current needs,” McDonald says. This approach would deliver relevant offers to customers and free up more time for brokers to provide further personalised support. Cover Genius has customer-centric tech solutions that help deliver a digitalised customer experience. For example, its XClaim platform applies AI to reduce end-to-end claims
ACCORDING TO A REPORT BY EY, THE INSURTECH SECTOR IS RIPE FOR INNOVATION The report found that: • Partnership is the way forward • There are major opportunities for future value creation • Insurers will move beyond alliance models and develop the infrastructure to create true ecosystems • Deploying insurtech at scale is the only way to keep up with the pace of change. Source: EY Australia insurtech ecosystem
FEATURE / Insurtech
SEPTEMBER
handling to three days, compared to the traditional average of 22 days. “Through XClaim, we are also able to assess items via video, which not only lets us provide speedy resolutions, but also helps us cater to the end customer, by making things more convenient for them,” McDonald says. “While much of the world was experiencing lockdown and strict stay-at-home measures, this feature ensured we were able to provide safe service to customers while keeping warranty claims moving quickly.” These solutions have helped Cover Genius improve its processes and guarantee customer satisfaction. “Brokers need to start embracing digital transformation and shouldn’t fear all insurtechs. By utilising the strength and shininess of those
44 / INSURANCE ADVISER SEPTEMBER 2021
insurtechs aimed at the broker market, they should be able to provide significant value-adds and improve their own efficiency in the process.” But a big part of the challenge when implementing insurtech solutions is working out how to ensure they mesh seamlessly, according to David Hampton, CEO of BAIS Insurance Technology. BAIS has been in the market for two decades. “One of the major challenges faced by insurtechs looking to provide value to insurers is the clash of cultures. After all, some insurance companies are over 300 years old, while some insurtech startups are less than 300 days old. They can be strange bedfellows,” Hampton says. Given each one has its own niche, you could end up with a patchwork quilt of solutions, which has the potential to get
messy and lead to a loss of data integrity, Hampton says. “Also, many insurtechs would benefit from a robust chassis to showcase their bling. In other words, utilising proven back-office technology to support their product service or offering.” For example, BAIS has a partnership with claims management technology firm Wilbur. “It gives clients, brokers and underwriters a virtuous circle of data and analytics, to deliver a complete view of their key data, from policy information and general ledgers through to granular claims detail in real time.” Whether through mergers and acquisitions or strategic partnerships between insurtechs, similar to that between BAIS and Wilbur, working together offers brokers and the insurance industry broader, more valueadding solutions, Hampton says.
FEATURE / Insurtech
AUSTRALIAN INSURTECHS TO WATCH Cover Genius: Uses machine learning to optimise insurance pricing Flamingo: The AI Insurance chatbot can remove friction by guiding consumers through the complexity of choice
“BROKERS NEED TO START EMBRACING DIGITAL TRANSFORMATION AND SHOULDN’T FEAR ALL INSURTECHS. BY UTILISING THE STRENGTH AND SHININESS OF THOSE INSURTECHS AIMED AT THE BROKER MARKET, THEY SHOULD BE ABLE TO PROVIDE SIGNIFICANT VALUE-ADDS AND IMPROVE THEIR OWN EFFICIENCY IN THE PROCESS.” – ANGUS MCDONALD, COVER GENIUS
Huddle: Promises straight through claims processing Manner: A matchmaking service that connects brokers and underwriters to improve efficiency Evari: Online business insurance for cafes, restaurants and retailers. Source: Macquarie
Healthcare businesses are under extreme pressure Give your clients the protection and support they deserve: • Compensation and defence costs for claims made by patients • Limits of cover available from $1m to $20m1 with one automatic reinstatement • Competitive premiums geared to their practice type • Free medico-legal advice and support available to the practice (24/7 in emergencies). All from an insurer specialising in medical professional indemnity.
Call our Broking team for more information 1800 777 156 miga.com.au/brokers 1 Subject to the Policy terms and conditions © MIGA August 2021
COMMUNITY HUB
COMMUNITY HUB SEPTEMBER 2021
The COMMUNITY HUB is your space to showcase your products and services to a specialist audience.
INDEX AB Phillips ..................................................... 46 ASR Underwriting...................................... 47 Newline Group............................................ 48 Affinity Insurance Brokers...................... 48
AIBI................................................................... 49 Australasia Underwriting........................ 49 Tudor Insurance............................................49 MGA Insurance Brokers...........................50
Moran Insurance Brokers.........................50 Marsh & McLennan Agency................... 51 All Parks Insurance...................................... 51 NIBA advertising.......................................... 51
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 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
Untitled-2 1 NIBA_Newline_Sep20.indd 1
17/5/21 15/9/2012:40 3:54pm 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 Initiatives Kayaking
48 / INSURANCE ADVISER AUGUST 2021
Mountain Biking Orienteering/Rogaining Paddle Boarding Pony Rides Paintball & Skirmish Riding Schools River Rafting Rock Climbing Ropes Course Rowing Sailing
Sports Associations Sea Kayaking Scuba Snorkelling Snow Skiing Surfing Swimming Trail Running
1300 130 535 www.affinityib.com.au Affinity Insurance Brokers is an Authorised Representative (No 1288354) of Aon Risk Services Australia Limited AFSL 241141
COMMUNITY HUB
�aibi
Adult Industry Business Insurance
WE TOUGH INSURANCE For hard to place business we offer a solution Our Favourite Property Risks • Vacant Properties • EPS Risks / Distressed or Difficult Occupations • Remote and Timber Pubs • North Australian Risks • Wineries / Woodworkers • Waste Recyclers / Plastics Manufacturing o Lead / Follow / First Loss / Excess of loss. Our Favourite Liability Risks • Asbestos Removal/Demolition Contractors/Earthmoving • Abattoirs / Seafood Processing / Food & Beverage • Services to the Mining Industry / Welding & Fabrication • Chemicals & Fertiliser Manufacturing • Railway Equipment / Industrial Machinery & Equipment The AU Team Alan Mackay Frank Van Rooy Simon Bidey
AIBI is a registered trading name of Thurston Insurance Brokers Pty Ltd. Thurston 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.
Property Liability Underwriting
03 9559 3316 03 9559 3310 03 9559 3317
Email Contact: firstname@australasiaunderwriting.com.au For full appetite details please visit our website: AustralasiaUnderwriting.com.au
Benefits of dealing with LSM:
Demolition and Asbestos Removal Liability Insurance Contact us for a confidential review of your clients insurance needs.
$20M Asbestos Liability now available Security of dealing with local office of a major 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
service@tudorinsurance.com.au
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)
(03) 9707 3033
15% commission of all placements
Tudor Insurance Australia Cameron McKerchar tudorinsurance.com.au
NIBA.COM.AU / 49
COMMUNITY HUB
50 / INSURANCE ADVISER SEPTEMBER 2021
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 enquiries@marshmc.com
Advertise with the most influential and trusted voice in the Australian intermediated insurance industry · Insurance Adviser · Insurance and Risk website · Broker Buzz · Need a Broker website · Targeted eDMs · NIBA events (Annual Convention)
Marsh and McLennan Agency Pty Ltd ABN 33 000 668 584 / AFSL 238984
517-3776
Contact Tony May National Advertising Sales Manager T: 02 9459 4303 E: tmay@niba.com.au
NIBA.COM.AU / 51
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
NIBA / Forthcoming Events
STAY UPDATED!
NIBA EVENTS
NIBA stages a variety of educational and social events across Australia for the whole intermediated insurance community. EVENTS UPDATE Mark your calendar to meet, share, learn and grow with your industry peers at NIBA events across the country.
Check out what’s happening close to yo u and registe r via the events cale ndar at niba.com.a u/ events
Please note in light of COVID-19, NIBA will continue to follow and implement national and state health authorities’ recommendations.
LOOK OUT FOR YOUR STATE’S RESCHEDULED GALA LUNCH 2021 NIBA AILA BROKER NEGLIGENCE IN COURT WHERE: Mayfair Hotel, Adelaide WHEN: Thursday 9 September Join the NIBA SA Committees and members of AILA and NIBA for an invigorating mock trial featuring the Hon. Justice Livesey as judge.
2021 NIBA QLD GALA LUNCH WHERE: Royal International Convention Centre, Brisbane WHEN: Wednesday 22 September Celebrate your state’s best brokers at the rescheduled Qld Gala Lunch on 22 September at the Royal International Convention Centre. SAVE THE DATE FOR OTHER UPCOMING EVENTS...
2021 NIBA DIVE IN NURTURING DIVERSE TALENT & ENDING DISCRIMINATION WHERE: Videoflex WHEN: Tuesday 21 September Abdullahi Alim’s journey is a remarkable one; from a refugee at age five, to a finalist
of the Young Australian of the Year in 2017 and recipient of the Young Leaders Award by Queen Elizabeth. Alim will speak on his experience as someone from a refugee background and how institutions can take tangible actions around recognising talent from diverse communities.
2021 NIBA SA CHRISTMAS COCKTAILS
2021 NIBA DIVE IN ACTIVE ALLYSHIP AND EMPOWERMENT
2021 NIBA QLD CHRISTMAS BOWLS & BBQ
WHERE: The Grove Rooftop, Brisbane WHEN: Thursday 23 September Join us for an afternoon of canapés and drinks with a panel of three industry leaders discussing their role and NIBA’s in active allyship.
WHERE: The Boo, Newstead WHEN: Thursday 25 November Come along to celebrate the end of the year with the intermediated insurance industry. Featuring a friendly tournament of lawn bowls and a BBQ inclusive of drinks, this event is not to be missed.
PROTECSURE NIBA PRESENTATION SKILLS PROGRAM WHERE: Sydney CBD WHEN: 9, 16, 23 and 30 November The Protecsure NIBA Presentation Skills Program is inclusive of four workshops aimed to empower your speaking skills for boardroom pitches, meetings and client consultations.
WHERE: Peter Rabbit, Adelaide WHEN: Friday 12 November The highly anticipated NIBA SA Christmas Cocktails couldn’t proceed in 2020, but is sure to return in 2021 with a bang to celebrate the end of the year.
2021 NIBA NSW CHRISTMAS COCKTAILS WHERE: Sydney CBD WHEN: Friday 26 November The NIBA NSW Young Professionals Committee is planning an intimate cocktails function to celebrate the end of the year. Save the date for this not-to-be-skipped event.
DISPLAY ADVERTISING INDEX – SEPTEMBER 2021 Insurance Advisernet........................ IFC Vero................................................................5 CGU...............................................................7 QBE............................................................... 9 Community Underwriting.................... 11 CBN............................................................. 15
HMIA........................................................... 21 QBE............................................................. 25 #NIBA2021 Convention.......................29 BAIS............................................................33 Technosoft................................................ 35 Focusnet.................................................... 37
UAC..............................................................41 Ebix.............................................................43 Miga............................................................45 NIBA Mentoring..................................... 52 QPIB........................................................IBC NTI......................................................... OBC
If you’d like to advertise your products and services through NIBA, please contact Tony May today on (02) 9459 4303.
NIBA.COM.AU / 53
NIBA / Events
CONGRATULATIONS TO OUR AWARD WINNERS ACROSS THE COUNTRY
2021 NSW/ACT Awards
Broker of the Year Winner: Craig Claughton of Marsh Finalists: Leo Driessen of Driessen Insurance Brokers and Amanda Morris of Arma Insurance Brokers Hunter Valley Young Professional Broker of the Year Winner: Megan Farmer of Markey Insurance & Risk Finalists: Kayla Smith of Ian Jones Insurance Brokers Newcastle and Lindsay Turner of Warren Saunders Insurance Brokers
2021 Qld Awards
Broker of the Year Winner: Tony Venning of Crucial Insurance and Risk Advisors 54 / INSURANCE ADVISER SEPTEMBER 2021
Finalists: David Kimber of Austbrokers Comsure and Tamara Trotman of Aon Young Professional Broker of the Year Winner: Alishia Oliver of Crucial Insurance and Risk Advisors Finalists: Taela Bloemers of CorpSure Insurance Broking, Lachlan Hastings of Aon and Scott Mitchell of Cornerstone Risk Group
2021 WA Awards
Broker of the Year Winner: Jeff Booth of GSK Insurance Brokers Finalists: Sarsha Neal of Marsh and Sumit Sopori of Imperium Insurance & Financial Solutions
Young Professional Broker of the Year Winner: Luke Cameron of Albany District Insurance Brokers Finalists: Joel Middleton of Knightcorp Insurance Brokers and Robbie Gibbs of Risk Guidance Insurance
2021 SA/NT Awards
Broker of the Year Winner: Karen Skinner of MGA Insurance Brokers Finalist: Kate Edgar of CBD Insurance Services Young Professional Broker of the Year Winner: Pat McCole of Aon Finalists: Jasmine Miller of PSC Insurance Brokers and Nikia Goers of Webber Insurance Services
NIBA / Events
SNAPSHOTS FROM THE PERTH GALA LUNCH
On Friday 6 August, the insurance broking community came together for a sold-out NIBA Western Australian Gala Lunch at the Grand Ballroom in Crown, Perth. This year’s event continued to support NIBA’s chosen charities, the Children’s Leukaemia and Cancer Research Foundation and Cystic Fibrosis WA. To view the entire gallery of photos, visit the NIBA website by scanning the QR code below.
NIBA.COM.AU / 55
INSURER STRENGTH RATINGS
S&P GLOBAL
AUSTRALIA
INSURER FINANCIAL STRENGTH RATINGS
The following is a list of S&P Global Ratings insurer financial strength ratings assigned to insurance companies in Australia and New Zealand. Ratings at 1 August 2021. Contact: Craig Bennett, S&P Global Ratings Telephone: 03 9631 2197
RATING
NON-LIFE INSURERS AAI Ltd.
A+/POSITIVE
AIG Australia Limited
A/CreditWatch Negative
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
Hallmark General Insurance Co. Ltd. (NZ Branch) BBB+/STABLE
Zurich Australian Insurance Ltd.
AA-/STABLE
IAG New Zealand Ltd.
AA-/STABLE
LENDERS MORTGAGE INSURERS
Society of Lloyd's
A+/STABLE
Genworth Financial Mortgage Insurance Pty Ltd.
A/NEGATIVE
Medical Insurance Society Ltd.
A-/POSITIVE
QBE Lenders' Mortgage Insurance Ltd.
A/STABLE
Southern Cross Benefits Ltd.
A/STABLE
Southern Cross Pet Insurance Ltd.
A/STABLE
Westpac Lenders Mortgage Insurance Ltd.
A/CreditWatch Negative
Teleco Insurance (NZ) Ltd.
BBB+/STABLE
LIFE INSURERS
Vero Insurance New Zealand Ltd.
A+/POSITIVE
AIA Australia Ltd.
A+/STABLE
Vero Liability Insurance Ltd.
A+/POSITIVE
AMP Life Ltd.
A-/NEGATIVE
Challenger Life Company Ltd.
A/STABLE
Hallmark Life Insurance Co. Ltd.
BBB+/STABLE
MetLife Insurance Ltd.
A+/STABLE
Westpac Life Insurance Services Ltd.
A+/STABLE
NEW ZEALAND
RATING
NON-LIFE INSURERS AA Insurance Ltd.
A+/POSITIVE
AIG Insurance New Zealand Ltd.
A/CreditWatch Negative
Chubb Insurance New Zealand Ltd.
AA-/STABLE
QBE Insurance (Australia) Ltd. (New Zealand Branch) 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)
REINSURERS A/NEGATIVE
General Reinsurance Australia Ltd.
AA+/STABLE
LIFE INSURERS
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 © 2021 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
56 / INSURANCE ADVISER SEPTEMBER 2021
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
NEW ZEALAND
BEST’S
FINANCIAL STRENGTH RATINGS
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 u/NEGATIVE
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- u/DEVELOPING
Foundation Life (NZ) Limited
A-/STABLE
General Reinsurance Life Australia Limited (New Zealand Branch)
A++/STABLE
LIFE, ANNUITY AND ACCIDENT
Kiwi Insurance Limited
A-/STABLE
General Reinsurance Life Australia Ltd.
Momentum Life Limited
B++/STABLE
Partners Life Limited
A- u/DEVELOPING
Pinnacle Life Limited
B/STABLE
The following is a list of AM Best Financial Strength Ratings (FSRs) assigned to insurance companies in Australia and New Zealand. Ratings as at 6 August 2021. Contact: Mr. Scott Ryrie Managing Director & Co-CEO A. M. Best Asia-Pacific (Singapore) Pte Ltd. Tel: +65 9636 3678 Email: scott.ryrie@ambest.com
AUSTRALIA
RATING A++/STABLE
PROPERTY/CASUALTY Ansvar Insurance Limited
A-/NEGATIVE
First American Title Insurance Company of Australia Pty Limited
A/STABLE
General Reinsurance Australia Ltd
A++/STABLE
Aioi Nissay Dowa Insurance Company, Limited (New Zealand Branch)
A+/STABLE
Guild Insurance Limited
A-/NEGATIVE
Beneficial Insurance Limited
B++/STABLE
Pacific International Insurance Pty Limited
B++/NEGATIVE
Brightsideco Insurance Limited
B/STABLE
The Hollard Insurance Company Pty Ltd
A-/STABLE
Consumer Insurance Services Limited
B+/STABLE
The New India Assurance Company Limited (Australia Branch)
B++/STABLE
First American Title Insurance Company of Australia Pty Limited (New Zealand Branch)
A/STABLE
FMG Insurance Limited
A/STABLE
General Reinsurance Australia Ltd (New Zealand Branch)
A++/STABLE
Health Services Welfare Society Limited
B+/NEGATIVE
Mitsui Sumitomo Insurance Company Limited (New Zealand Branch)
A+/STABLE
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
New Zealand Medical Indemnity Insurance Limited B+/STABLE Pacific International Insurance Pty Ltd (New Zealand Branch)
B++/NEGATIVE
Police Health Plan Limited
A-/STABLE
Provident Insurance Corporation Limited
B /STABLE
The Hollard Insurance Company Pty Ltd (New Zealand Branch)
A-/STABLE
The New India Assurance Company Limited (New Zealand Branch)
B++/STABLE
Tokio Marine & Nichido Fire Insurance Company Limited (New Zealand Branch)
A++/STABLE
Tower Insurance Limited
A-/STABLE
Union Medical Benefits Society Limited
A/STABLE
Virginia Surety Company, Inc. (New Zealand Branch)
A/STABLE
NIBA.COM.AU / 57
INSURANCE JOURNEY / Alishia Oliver
IT IS ABOUT THE SERVICE, NOT THE NUMBERS
The 2021 Queensland Young Professional Broker of the Year, Alishia Oliver from Crucial Insurance and Risk Advisors, is all about providing great service with care and empathy.
“I
started as an administration assistant in 2009 and was not really sure what an insurance broker did, or even what one was. I quickly found out what brokers do for their clients and I fell in love with the industry. Within a year, I was given the opportunity to start as a Domestic Account Executive and I leapt at the chance. From there, I have continued to grow my professional development and am now an Account Manager with a largemixed portfolio and amazing clients. Many people question why I chose a career in insurance, and I always say the same thing. Where else do you find a place or an industry where you are able to learn so much about businesses and various innovations in this ever-changing world? But not only that, to be able to help people understand the options available to protect their businesses, homes and the lives they have each built. To get to be there for the highs of their wins, and then to help, as much as possible, while genuinely caring when there is a loss. Mentorship plays a huge role in this profession. I believe I am the broker I am today because of the amazing people who have taken the time to provide guidance in my career. I also find mentors help you to find confidence within yourself and your abilities – and of course provide valuable feedback, so I know what I need to work on, and how to continue to get better every time. At the start of my insurance broking career, I had clients affected by the Brisbane floods. Not only was this
PROUDLY SUPPORTING
58 / INSURANCE ADVISER SEPTEMBER 2021
situation a very steep learning curve when it came to the claims side of things, but there was also an emotional toll that I was not prepared for. I knew that insurance brokers played an important role in easing their clients’ stress and worry, but I think those flood claims reinforced that insurance brokers are not only there for the ‘insurance claim’, but are also there as human beings with empathy and a shoulder to cry on in some of our clients’ most critical times of need. I have also been challenged to find different ways to assist my clients who have been hit by COVID-19, and its
far-reaching effects. I think my main learning from this experience so far is that you always need to keep thinking outside the box, and where there is a will, there is usually a way. To encourage others into the industry, I always highlight the various different fields within insurance. There is a career for almost everyone. I look back now, and at every stage of my career, I have taken away or learnt something to help me become a better broker. So, I don’t think I would change anything about my career journey, as it has led me to who I am today.”
SEVEN QUICK QUESTIONS Tell us something most people don’t know about you? I don’t eat the bottom bun of my cheeseburgers from McDonald’s. Secret ambition? To find a way to live off Ice Break coffee instead of air. Favourite film? Hunt for the Wilderpeople Favourite book? I don’t really have a favourite book, more a series of books, but I’d have to say the John Marsden series – Tomorrow, When the War Began. Favourite tipple? Extra Shot Ice Break Coffee. Favourite pastime? Gaming – usually PS4 or PC. Favourite food? Schnitzel.
Share your insurance journey. Email editor@niba.com.au
“QPIB represents competence and the will to strive for excellence.”
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
– CAITLIN CARSON, 2019 YOUNG PROFESSIONAL BROKER OF THE YEAR
NCE BR
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