9 minute read
Industry bulletin
BROKING IN 2025: GEARING UP FOR THE FUTURE
The 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
NIBA SUBMISSION TO THE REVIEW OF THE TERRORISM INSURANCE ACT 2003
NIBA 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
The 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
CONSULTATION ON WA WORKERS’ COMPENSATION LAWS
The 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
NIBA 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. 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.
For breaking news and updates curated specially for insurance brokers please visit: niba.com.au/articles
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