MAY 2022
DEALING WITH DISASTER Brokers share their experience with the recent floods
ROAD TO COBARGO A learning and charitable experience for young brokers
BUILDING FOR THE FUTURE
Construction, plant and equipment insurance
NAVIGATING THE STORMY SEAS
Import and export insurance
WE ARE YOUR VOICE
CONTENTS May 2022
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
Philip Kewin, CEO, NIBA T: (02) 9459 4305 E: pkewin@niba.com.au W: niba.com.au
Communications Manager Wendy Martin
Editorial enquiries
E: editor@niba.com.au
National Sales Manager Tony May E: tmay@niba.com.au
Design
Citrus Media www.citrusmedia.com.au NIBA gives no warranty and makes no representation that the information contained in this magazine is, and will remain, suitable for any purpose or free from error.
20
DEALING WITH DISASTER
Brokers share their experience in dealing with the recent floods
To the extent permitted by law, NIBA excludes responsibility and liability in respect of any loss arising in any way (including by way of negligence) from reliance on the information contained in this magazine or otherwise in connection with it. The contents of Insurance Adviser are protected by copyright and NIBA reserves its rights in this regard.
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ROAD TO COBARGO
A learning and charitable experience for young brokers NIBA.COM.AU / 3
CONTENTS May 2022
FEATURES
30 BUILDING FOR THE FUTURE
Current impacts on the construction, plant and equipment insurance sector
40 NAVIGATING
THE STORMY SEAS The importance of having the right level of import and export insurance
IN EVERY ISSUE
NIBA CEO Welcome ..................................... 6 Representation ............................................... 8 Why be a NIBA member? ........................... 10
NEWS
Industry Bulletin .......................................... 16
PROFESSIONALISM
Code of Practice Update ............................. 12 AFCA Case study.......................................... 14
EVENTS Forthcoming Events..................................... 54
REFERENCE
Community Hub .......................................... 48 Insurer Strength Ratings............................. 56 Insurance Journey: Pat McCole .................. 58
4 / INSURANCE ADVISER MAY 2022
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CEO / Welcome
LOOKING FORWARD
M
aybe it is just me, but more than ever I feel there is a sense of looking forward, but knowing there will be risks and challenges along the way. Firstly, we have been overwhelmed with the response to the 2022 Insurance Broker’s Code of Practice (Code) webinars and have been receiving some insightful questions to help us further expand the Implementation Guide. So far, our three webinars have been fully subscribed at 500 registered attendees, which is a great sign of the level of interest and desire to adopt the new Code. We recognise the implementation will have its challenges, both in the time to adopt new systems and processes, as well as the introduction of conversations that were not previously had with clients, particularly under a General Advice model. Importantly, this is about setting standards above the law and positioning the broking profession well into the future. Just as the Federal election campaign has been about “plans for the future”, this is part of our plan. Our response to the Quality of Advice Review Issues Paper is due on Thursday 2 June 2022, and I have been impressed with the enthusiasm with which our Regulatory Affairs Committee (RAC) has engaged with NIBA to help formulate a collective response, and I thank the members of the RAC for their ongoing support and contribution that benefits all brokers. Equally as impressive has been the response from our international colleagues. NIBA is a member of the World Federation of Insurance Intermediaries and has requested input from around the world to help formulate our response to the Issues Paper. The importance of this cannot be understated. When governments make policy decisions, they will look to successful or unsuccessful models in different industries or the same industry but different markets. Through our global relationships, NIBA has received input from developed markets such as the United Kingdom, Canada, the United States and South Africa. We will be sharing the learnings with members at a later date, but I can say the feedback to date reinforces that no developed insurance market exists without broker commissions. Australia is also well placed in terms of our professional standards, which are underlined by the new Code. While now out of the headlines, the northern NSW and south Queensland floods have etched a place in history as the most expensive flood event in Australia and the fifth most expensive natural disaster in our history. As an industry, we have responded well, but there is no doubt the cost and the ability to respond and help rebuild have been hampered by the added pressures of supply chain issues, cost of materials and shortages of labour.
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The NIBA Awards Program is well underway, and we look forward to showcasing the amazing talent in our profession at the State gala lunches. Highlighting the fact that these are not just one-off occurrences, is the amazing trip to Cobargo from our 2021 Young Broker of the Year alumni with Vero (see page 26). These members saw first-hand the impact the 2020 bushfires had on the community and how together, communities, governments and insurers are rebuilding after the devastating destruction. Speaking of amazing talent, it was a privilege and pleasure to be involved in the Protecsure NIBA Presentation Skills Workshop. These young professionals displayed a level of professionalism, knowledge and enthusiasm that tells me the future is in good hands. It’s not so long ago that the thought of face-to-face workshops and gala lunches seemed to be a distant memory, so it is wonderful to see the number of upcoming workshops and events where we can come together, learn and celebrate. Lastly, it is with sadness that we recognise the passing of one of NIBA’s great servants. Graham Stevens passed away on 6 May 2022. He was a NIBA Board member for 15 years and served as NIBA President for two years. Graham was also one of the few, if not the only Australian to serve as the President of the World Federation of Insurance Intermediaries. ‘Bear’, as he was known, will long be remembered for his positive attitude, his passion for looking after his clients and his generosity in spending time with and encouraging younger brokers to further their careers. As his fellow Director and past NIBA President Eric Harris said, “rest in peace Bear”.
PHILIP KEWIN Chief Executive Officer, NIBA
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NEWS / Representation
WE ARE YOUR VOICE!
The following is an overview of some of the things NIBA has been examining on behalf of members.
Request for Member Feedback: Quality of Advice Review
To support NIBA’s upcoming submission to the Quality of Advice Review, NIBA is working hard to gather success stories from members to use as case studies and examples in our submission. This may be a claim that was originally denied by the insurer, but through your advocacy and knowing the policy the claim was eventually accepted. Or a time you went above and beyond to assist your client during any stage of the insurance journey. These examples will assist NIBA in demonstrating the important role brokers play in assisting their clients and achieving outcomes that wouldn’t otherwise be possible in the direct market. If you would like to provide an example, please do so in writing to NIBA’s Policy and Research Manager at ahextell@niba.com.au
New South Wales Flood Inquiry Submission
NIBA has provided a submission to the New South Wales Floods Inquiry, highlighting the need for better land-use planning, significant investments in land-use planning and the abolition of the Emergency Services Levy (ESL) to reduce premiums and encourage a higher uptake of optional flood cover. NIBA’s submission highlighted the success of previous flood mitigation works in Queensland, as well as the need for urgent action on insurance affordability through the abolition of the ESL.
Quality of Advice Review
As part of the Quality of Advice Review, Treasury has released an issues paper seeking feedback on a range of issues affecting the general insurance, life insurance and financial advice sectors.
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draft bill late last year. During the meeting, NIBA discussed the progress of the Bill and issues surrounding the role of brokers in the worker’s compensation process. NIBA will continue to liaise with Workcover WA and the Western Australian Government as the Bill progresses.
NSW Emergency Services Levy In addition to considering whether the “exemption from the conflicted remuneration ban results in poor quality advice and consumer outcomes”, the review will also consider issues such as underinsurance, the impact of regulation and compliance on the provision of affordable advice, personal, scaled, and general advice models and whether current disclosure documents should be amended. NIBA has been working hard behind the scenes over the last few months, preparing for the review and engaging with Treasury to ensure the review is well-informed. Submissions to the issues paper close on 3 June, with a final report to be provided to the Government by 16 December 2022.
Workers Compensation and Injury Management Bill
Last month, representatives from NIBA met with Workcover WA to discuss the progress of the Workers Compensation and Injury Management Bill consultation draft. With the assistance of the WA Divisional Committee, NIBA provided feedback on the
Representatives from NIBA met with the office of the NSW Minister for Finance and Small Business to discuss the NSW ESL, as well as the implementation of the IPART recommendations in relation to the Home Building Compensation Fund (HBCF). NIBA has previously engaged the Minister’s Office to advocate for a review of the current model, as well as more immediate changes to the way the levy is collected when insurance brokers place NSW risks with foreign insurers. While NIBA continues to advocate for wholesale reform of the emergency services funding model, in the interim, the calculation of the ESL in relation to international placements by brokers needs to be addressed. The complicated nature of calculating these payments makes it difficult for brokers to accurately calculate the correct amount of ESL that needs to be collected and remitted to the NSW Government, leaving brokers to make up the arrears in the event of under-collection. NIBA’s proposal is to introduce a forward rate, based on averaging, to give brokers and their clients more financial certainty.
CONTACT NIBA
As always, brokers who have questions about these or any other government or regulatory matters should feel free to contact NIBA CEO Philip Kewin at: pkewin@niba.com.au
ANZIIF Membership ANZIIF is dedicated to supporting your professional development and career. With an ANZIIF membership you can access a wide variety of exclusive member benefits and premium resources, including: • industry wide recognition and use of the ANZIIF post-nominals • an ANZIIF CIP digital badge to verify and share with your network • 2,000+ online resources to support your CPD requirements • full archive of webinar recordings available On Demand • discounts on professional development events Membership Levels
CONTACT US For more information, visit anziif.com/membership or call +61 (3) 9613 7200.
Education
Recognition
Professional Development
Community
Industry Initiatives
80MEM_0422
Benefits of Membership
NIBA / Member Benefits
WHY NIBA MATTERS TO ME Members share why NIBA is important to them and the broking industry.
“NIBA represents a network of trusted insurance professionals and access to relationships which are pivotal in my day-to-day operations. Being a member of NIBA is a stamp of trust and professionalism.” LUKE CAMERON Managing Director – Albany District Insurance Brokers 2021 WA Young Broker of the Year award winner
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 a state and national level to ensure that your interests are represented.
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Professionalism
We set and promote high standards of professional practice for insurance brokers for the benefit of their clients and the community through the development of professional standards, QPIB, CPD accreditation and the Insurance Brokers Code of Practice.
Community
We provide members with opportunities to meet, share, grow and prosper, and build professional networks with the wider intermediated insurance community that will last throughout whole careers.
GET IN TOUCH!
Whatever your age, or level of experience, NIBA ha s brokers’ best interests at the core of everything we do. Fin d out what we can do to help be nefit your business and your tea m at niba.com.au/membe rship
ADVERTORIAL / AM&T
AM&T CELEBRATES 10 YEARS OF SUCCESSFUL BUSINESS
A
M&T (Allianz Marine and Transit Underwriting Agency) is a specialist in the Australian market. The team are considered the trusted partner for brokers in the complex world of marine. This year, AM&T celebrates 10 years of successful business operations. To commemorate this milestone, we look back on its history to celebrate the team and its success and look ahead to what’s in store for the insurer.
WHERE IT ALL BEGAN
The business began in 2012, when Allianz Australia Insurance Limited saw a gap in the market for niche business areas to be managed and developed by specialist staff with experience in, and passion for, their area of the industry. AM&T started out with a small portfolio and a start-up team of six, headed up by then CEO Stephen Ford. The agency structure allowed a unique point of difference in the market, offering clients specialisation and security thanks to the backing of Allianz Australia. Steve reflected that the success of the business really came down to the team. “Within the team, we have true experts, people who have a passion and an ongoing curiosity for everything marine,” he says.
CORPORATE AND SPECIALTY INSURER
In 2016, AM&T undertook the management and development of Allianz Global Corporate & Specialty’s portfolio in Australasia, handling large corporates and major projects. This was testament to the strong team who had earned the trust of the industry.
GOING DIGITAL
AM&T introduced an online system, AM&T Online, in 2016 via the Sunrise Exchange
platform, which provided an easy and flexible option for brokers to access their policies at their own convenience. Sydney broker, Samantha Bridger from All Solutions Insurance Services says: “We’ve been placing quite a lot of business with AM&T through their online system via Sunrise. The system is easy to navigate with a streamlined process, pricing is extremely competitive in the market, and turnaround times on referrals are exceptional. “The AM&T team are always helpful and open to looking outside the box, which gives us the opportunity to provide a great range of products to our clients, and why AM&T is our ‘go-to’ for our Marine & Transit needs. Can’t fault the team, keep up the good work guys!”
ALWAYS OPEN TO FEEDBACK
Whether working with a small business or a global freight company, AM&T believes it is important to take the time to truly understand each customer’s unique circumstance and to provide service that exceeds expectations. AM&T launched its annual broker survey in 2019 to monitor customer satisfaction. Using these insights, it continually revises its offering and services to meet client and customer expectations.
AWARD-WINNING TEAM
2020 was a challenging year for AM&T’s broker partners and their clients. COVID-19 created incredible pressures on the industry with a dramatic increase in shipping demand, significant changes in legislation and navigating challenges of working from home. The team continued to meet and exceed clients’ expectations and be responsive to customer needs in all aspects of the business – from underwriting to customer support and at claims time. This dedication was recognised at the 2020 Insurance Business Australia Awards, where the claims team received an excellence award for ‘Underwriting Agency Claims Team of the Year’.
A NEW ERA OF LEADERSHIP
In July 2021, AM&T announced the appointment of Ben Morgan (pictured above) as Chief Executive Officer. This was a natural progression for Ben, a member of the inaugural team and a shareholder in the business since 2017. Ben brings extensive industry and business-specific knowledge to the position, with almost two decades of marine insurance experience. Commenting on his appointment at the time, Ben said: “AM&T is a key part of the intermediated distribution strategy for Allianz in Australia; and the AM&T team and I look forward to sustaining our market position by continuing to enhance and adapt the successful business.”
2022 AND BEYOND
AM&T feels continued growth and success comes down to responsiveness. The team at AM&T are committed to always improving on their level of expertise and the business will continue to invest in their people, the depth of knowledge and strong connections with the broker community. Commenting on the future ahead, Ben is eager to chart the course: “Fostering our partner relationships will continue to be our priority. We look forward to continuing to provide the responsiveness and service that our brokers and customers need and expect, developing our people, and of course working closely alongside our One Allianz partners.”
NIBA.COM.AU / 11
PROFESSIONALISM / Code of Practice Update
2022 INSURANCE BROKERS CODE OF PRACTICE UPDATE
O
n Thursday 14 April 2022, NIBA announced some amendments to the 2022 Insurance Brokers Code of Practice. “Since the launch of the 2022 Insurance Brokers Code of Practice in March, I have been overwhelmed by the level of support for the new Code and the respective changes from our members,” said Philip Kewin, NIBA Chief Executive Officer. “The Code was originally conceived as a living document, one that upholds the professionalism of the industry and demonstrates brokers’ commitment to quality client outcomes. “Having had the opportunity to speak with members and review the feedback that NIBA has received so far, the NIBA Board has made some amendments to the Code that was published on 1 March 2022. These changes strengthen the commitment to transparency and professionalism that is ingrained within the Code,” Kewin added. The Code has been amended to reflect the following changes and Subscribers can access the most up-to-date version of the Code by visiting www.niba.com.au/code. In section 6.1, the remuneration disclosure requirements have been expanded to include all individual and small business clients, not just those that fall under the definition of retail clients (as defined under the Corporations Act). For the purposes of the Code, a small business means a business employing less than 20 people, or if the business involves the manufacture of goods less than 100 people. Section 7.2 has been amended to allow Subscribers who operate under
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a general advice model to comply with their obligations under the Code, while still providing general advice.
MEMBER IMPLEMENTATION GUIDE Accompanying the Code is a Member Implementation Guide that provides more information as to the intent of the Code obligations, as well as suggestions for Subscribers when deciding how to implement the Code in their respective businesses. This guide will be updated regularly to reflect changes to the Code, community expectations, industry best practices and feedback from Subscribers and other stakeholders. A copy of the Member Implementation Guide is available by visiting www.niba.com.au/code.
1
Published March 2022
INSURANCE BROKERS
CODE OF PRACTICE
CODE OF PRACTICE WEBINAR
NIBA held three webinars in April and May to provide members with an overview of some of the key changes to the Code including: • Code principles • terms of engagement • changes to disclosure • remuneration • v ulnerable clients, and • breach reporting obligations. Members who were unable to attend any of the webinar sessions will have the opportunity to watch the webinar on-demand via the NIBA website, www.niba.com.au. If you have any questions about the 2022 Insurance Brokers Code of Practice, Member Implementation Guide or webinar, please email info@niba.com.au
“The NIBA Board has made some amendments to the Code that was published on 1 March 2022. These changes strengthen the commitment to transparency and professionalism that is ingrained within the Code.”
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PROFESSIONALISM / AFCA Case Study
BREACH OF DUTY OF CARE BY MARK RADFORD
Principal, Radford Lawyers
KEY LESSONS
The broker was found to breach their duty of care by failing to post documents to the insured company’s address and failing to check what authorisation had been given by the company in regards to providing instructions and receiving advice, and the methods of communication with the complainant’s company. Sending information by email to a son authorised to arrange and enter cover for his father’s company (where this was done via the same email address) was not considered sufficient. Fortunately for the broker, the breach was not found to cause any loss. This is an interesting decision that should be of concern to brokers in some respects. The key lessons to take away from this case are that: • AFCA may apply a different duty of care between policies of a purely domestic or personal nature, and those of a commercial nature. • To avoid AFCA concluding a breach of duty of care in a similar situation, an insurance broker should: o check what authorisation has been given by a company for the purpose of giving instructions and receiving advice, as well as the appropriate address and means of communication with the complainant company and confirm this; o if the above is not done, at the very least, post documents to the company’s address; and
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o i deally follow all steps applicable to a new business client because without first obtaining such information, a broker is not in a position to know what the needs of the company are. In this case, whilst the broker had information on the vehicle from past dealings with the son, had received specific instructions regarding details to be noted on the policy from the son, and had arranged a new direct debit form for payment purposes and received instructions to complete the transaction from the son, it was not considered sufficient in this case.
BACKGROUND FACTS
The complainant’s son had contacted the insurance broker requesting a new policy for a truck, under the name of the complainant’s company. The son had emailed the broker stating, ‘It’s (my father’s) truck now. I sold it to him. I just recommended you for truck insurance and I’m helping out.’ The son and his company had been regular clients of the broker and the truck had previously been insured through the broker as a part of the son’s company vehicles, so the broker already held all relevant details. The broker had emailed a PDS and a quote addressed to the complainant, but sent it to the son’s company email through which the above email conversation had taken place. A week later, the son emailed the broker stating ‘(My father) accepts the quote.’ The subsequent invoice and certificate of insurance sent by the broker had been addressed correctly
to the complainant and his company. However, they were not posted to the company’s address, but instead emailed to the son’s company email he had received instructions through. The complainant’s son provided specific instructions regarding details to be noted on the policy and requested a new direct debit form for payment purposes. The son apparently had access to the bank details of his father’s company. The broker arranged monthly premium payments and obtained the complainant’s bank details to enable regular payments. The truck was damaged due to the use of incorrect fuel and a claim submitted. The insurer rejected the claim due to an exception in the policy for damages ‘caused by an incorrect fuel type or additive of the use thereof’. The complainant argued that the broker had breached their duty of care towards him and was liable to compensate him for this loss, alleging that: • the broker had failed to provide him with the cover he requested, namely, a comprehensive policy that would provide cover for all possible damages; • the broker had failed to provide him with a copy of the PDS documents so the complainant could check what the policy covered; and • had the complainant been aware of this exclusion, the complainant would have rejected the policy due to its exclusion for losses from incorrect fuelling and would have then shopped around for a policy that covered such a loss, as in fact occurred.
PROFESSIONALISM / AFCA Case Study
AFCA DECISION
AFCA found in favour of the complainant. Despite considering that the available evidence supported the view that the complainant had authorised his son to serve as an intermediary for the purpose of communications with the broker, AFCA relevantly concluded: • the complainant did not see the PDS on the basis that it seemed unlikely his son gave it to him and there was no suggestion the complainant requested this information from his son; • on the balance of probabilities, the broker had breached their duty of care towards the complainant by failing to take sufficient steps to ensure that the complainant’s company received copies of the PDS and Certificate of Insurance; and • the broker at the very least had failed to send a hard copy of the insurance documents to the address of the complainant’s company, which had been provided to the broker. Of note, AFCA stated in justification of the above: If the policy had been a purely domestic or personal policy, it is reasonable to accept that the son was properly authorised by his father to arrange the insurance. However, this policy was on behalf of a company to protect a commercial asset of that company. In these circumstances the broker’s duty was not simply to the father, but to the company that apparently was
the registered owner of the vehicle. Ideally more information should have been obtained and all steps applicable to a new business client should have been followed. At the very least the documents should have been posted to the company’s address. The Insurance Brokers Code of Practice Code (2014) reiterates the basic obligation of a broker to “provide advice that is appropriate to your needs”. Without first obtaining more information, the broker was not in a position to meet this obligation. The broker had no way of knowing what the needs of the company were nor how best to communicate with the company. The broker appears to have assumed there was no likelihood of conflict with the business operated by the son. Undoubtedly the broker’s existing client encouraged informality, but a more prudent approach was required. I am satisfied a breach of duty has occurred. The broker failed to check what authorisation was given by the complainant’s company for the purpose of giving instructions and receiving advice. The broker failed
to check the appropriate address and means of communication with the complainant company. An immediate consequence was that the company did not receive a copy of the PDS and related insurance documents. It is not clear from the decision on what basis AFCA decided that a person, who it concluded actually arranged and entered into the policy for the company via email, was not also authorised to receive information for the company regarding that policy by the same means. Despite the above, AFCA found that there was no loss suffered as there was no evidence to suggest that the complainant would have: • checked the detailed provisions of the PDS had he received it, as the complainant appeared to rely on his son as an intermediary in arranging the policy; • expressed concern or requested more research into alternative covers, had the relevant exclusion been brought to his attention; and • requested the broker change insurers to a company that provided indemnity for damages caused by the use of incorrect fuel, had he checked the PDS.
“Fortunately for the broker, the breach was not found to cause any loss. This is an interesting decision that should be of concern to brokers in some respects.” NIBA.COM.AU / 15
NEWS / Industry Bulletin
NIBA MEETS WITH THE OFFICE OF THE HON. DAMIEN TUDHOPE
I
n mid-April, NIBA CEO Phil Kewin, along with NIBA Directors Rebecca Wilson and Tim Wedlock, met with the office of The Hon. Damien Tudehope, the NSW Minister for Finance and Small Business to discuss the current status of the NSW Emergency Services Levy (ESL), as well as the implementation of the IPART recommendations in relation to the Home Building Compensation Fund (HBCF). NIBA has been a vocal advocate for reform of the current NSW emergency services funding model since the abolition of the ESL was postponed in 2017. NIBA has previously engaged with the Minister’s Office to advocate for a review of the current model, as well as more immediate changes to the way the levy is collected when insurance brokers place NSW risks with foreign insurers. NSW is the only state to fund its emergency services through a levy on insurance companies, which is ultimately
passed on to policyholders. Tasmania, which uses a similar model is in the process of reviewing the model with a view to transitioning to a more equitable property-based levy. NIBA has previously raised the inequities that exist within the current NSW model, including that not all those who benefit are required to contribute to the funding of the emergency services, as the levy only applies to those who take out insurance, excluding alternative risk financing mechanisms, such as mutual pools and captive insurance. The levy is then passed onto all insurance policyholders, increasing the cost of their insurance premiums which is compounded by the addition of GST and stamp duty. While NIBA continues to advocate for wholesale reform of the emergency services funding model, in the interim, a more urgent component and the primary topic of conversation was the calculation
of the levy in relation to international placements by brokers. The complicated nature of calculating these payments makes it difficult for brokers to accurately calculate the correct amount of ESL that needs to be collected and remitted to the NSW Government, leaving brokers to make up the arrears in the event of under-collection. NIBA’s proposal is to introduce a forward rate based on averaging to give brokers and their clients more financial certainty. An additional meeting topic related to the implementation of IPART recommendations to make the use of brokers optional for applying for and attaining home warranty insurance, under the Home Building Compensation Fund administered by icare. This is a very specialised area and the Minister’s Office and icare have agreed to close consultation over the course of the next 12 to 18 months as the proposed changes are being implemented.
For breaking news and updates curated specially for insurance brokers please visit: niba.com.au/articles
16 / INSURANCE ADVISER MAY 2022
ADVERTORIAL / Frontier Global Underwriting
F
THE NEW FRONTIER OF UNDERWRITING
rontier Global Underwriting is a global Financial Lines coverholder based in London, UK with a fully licensed ASIC regulated Australian subsidiary headquartered in Sydney. Frontier provides unique financial lines insurance solutions to a broad portfolio of clients located in over 50 countries across the globe. Frontier was founded by industry experts Joel Pridmore and Sophie Fraser in 2019. Using its deep understanding of the financial and investment management landscape in the regions in which it underwrites, Frontier provides a full-service financial lines offering spanning Directors & Officers Insurance (Financial and Commercial), Professional Indemnity Insurance (Financial Institutions), Investment Managers Insurance (IMI) and Crime (Financial Institutions and Commercial). Speaking on behalf of Frontier Global Underwriting from London, Managing Director Joel Pridmore says, “Frontier is a business focused on our clients. We look to provide solutions to our clients to enable them to deliver their stated goals and objectives and ultimately enable them to thrive.” With a major focus on Australia, Frontier Australia opened its doors in late 2021 with Simon Spencer joining the Group as Financial Lines & Cyber Underwriting Manager for Australia & New Zealand. “I was delighted to join Frontier as I have known Joel for many years and I share his enthusiasm for client focused technical underwriting working collaboratively with our broker partners,” Spencer says. “Another reason I joined is
our commitment to finding genuine solutions for emerging industry sectors, such as renewable energy, agricultural managed investment schemes and now the burgeoning blockchain/crypto industry.” Frontier has achieved an immense amount in the last three years, currently writing on seven binders on behalf of seven individual global re/insurers spanning Lloyd’s and Company markets. “Pleasing to us are the solutions we are able to bring to the Financial Lines market in Australia, four of our seven binders are written via our Australian entity which is something we are very proud of,” says Pridmore. Frontier prides itself on not being a ‘run of the mill’ underwriting agency, which is apparent when you talk to Pridmore and Spencer. “We don’t want to be everything to everyone, but for the clients we choose to partner with we are excellent. We are the best of anyone in the market,” Spencer says. Innovation is key to Frontier’s service offering having recently signed a deal with Relm Insurance Limited, a Bermudan domiciled global insurer providing insurance solutions for new and emerging businesses with a specific focus on crypto/blockchain and cannabis industries. Frontier and Relm have partnered to provide a solution for cannabis, crypto and digital assets businesses in the Asia Pacific region. “This is a game changer for the Asia Pacific market,” Pridmore says. “This now provides our loyal broker and client base with vital solutions in the crypto, digital asset and cannabis sectors.”
For further information on Frontier Global Underwriting, visit frontierglobaluw.com NIBA.COM.AU / 17
NEWS / Industry Bulletin
$350M MODULAR HOUSING PACKAGE FOR FLOOD-AFFECTED COMMUNITIES
T
he NSW Government has announced a $350 million investment in temporary modular housing to give people displaced by floods a place to call home while they rebuild their lives. Discussions are underway with local councils across Tweed, Byron, Ballina, Richmond Valley and Lismore Local Government Areas to identify suitable sites for the homes, with preparatory works due to start on the first location in the next week. The delivery of up to 2,000 temporary modular homes to approved sites across hardest hit regions comes in addition to
the NSW Government’s funding to assist around 25,000 households through rental support, Disaster relief programs and the Back Home program. The first confirmed location will be in Wollongbar, in partnership with Ballina Shire Council, with more sites expected to follow in coming days and weeks. It will be on the grounds of the Wollongbar Sports Fields and will initially include around 25 temporary accommodation pods with capacity to house up to 100 people. The pods come in various configurations which can accommodate one to four people and will be co-located with
supporting infrastructure and amenities. Site readiness and installation works are expected to take approximately four weeks, with community housing providers providing long-term site management. In addition to these modular homes, there are a range of other temporary housing options in place including motorhomes, accommodation in recreation camps, and 16-weeks rental support. Flood-affected community members seeking housing support are urged to contact Service NSW on 13 77 88 or visit nsw.gov.au/floods
For breaking news and updates curated specially for insurance brokers please visit: niba.com.au/articles
18 / INSURANCE ADVISER MAY 2022
NEWS / Industry Bulletin
RECORD 2022 FLOOD CLAIMS THE COSTLIEST IN AUSTRALIA’S HISTORY
T
he 2022 floods impacting Queensland and New South Wales across February and March is estimated to be Australia’s costliest ever flood event, according to updated data from the Insurance Council of Australia. The flood event is estimated to have cost $3.35 billion in insured losses across 197,000 claims, making this also the fifth most costly disaster in Australia’s history.
TOP 5 COSTLIEST DISASTERS IN AUSTRALIA’S HISTORY 1.
2. 3. 4. 5.
Eastern Sydney Hailstorm (1999, $5.57 billion) Cyclone Tracey (1974, $5.04 billion) Cyclone Dinah (1967, $4.69 billion) Newcastle Earthquake (1989, $4.24 billion) QLD and NSW Floods (2022, $3.35 billion)
“The rise in claims costs compared to previous floods is driven by increases in cost of materials and a challenging supply chain environment. Currently, more than 11% of claims have been closed and $580 million paid to insured clients ”
The rise in claims costs compared to previous floods is driven by increases in cost of materials and a challenging supply chain environment. Currently, more than 11 per cent of claims have been closed and $580 million has been paid to insured clients.
KEY STATISTICS OF 2022 FLOOD CLAIMS • • • • •
Total claims: 196,761 Estimated cost: $3,34 billion Property claims: 169,961 (86.4%) Motor claims: 25,642 (13%) Other claims: 1,158 (0.6%) For more information, visit www.insurancecouncil.com.au, or alternatively you can read the Council’s recently released report ‘Building a More Resilient Australia’.
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100 years and counting, we’re behind you for what’s ahead. Speak to your Account Manager today, or to learn more visit www.allianzengage.com.au/motorterms ^Based on 2021 Allianz Claims Data Terms, conditions, limits and exclusions apply. Before making a decision about motor insurance, please read the PDS. The PDS and Target Market Determination for this insurance are available from allianz.com.au. Allianz Australia Insurance Limited ABN 15 000 122 850.
COVER STORY / Dealing with Disaster
DEALING WITH DISASTER The insurance sector plays a crucial role in how our communities respond to natural disasters. BY MARTIN WANLESS
20 / INSURANCE ADVISER MAY 2022
NIBA.COM.AU / 21
COVER STORY / Dealing with Disaster
T
he recent floods in northern New South Wales and Queensland had a devastating effect on many individuals and families, homes, properties and businesses. Some people, of course, have been directly affected both personally and professionally. Jolyne Marks, Branch Manager at Westlawn Insurance Brokers in Ballina and resident of Coraki in northern NSW, had to try to protect and salvage her own home – while also trying to help her clients.
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Jolyne lost her family home, while the properties of her parents and her brother – all in close proximity – were also significantly damaged. Her husband’s business was also lost to the floods, which took everyone in the town by surprise. “Our family has owned property on this land for decades – my grandfather previously owned the property and our family had a dairy farm here – and there’s no history of flooding,” she says. “I was working from home and wondering whether to attempt to reach the office because
“WE WENT TO CHECK ON MY PARENTS AND EVENTUALLY, MY DAD HEARD US AND GAVE A WAVE. WE HAD 200 CATTLE THAT WERE STANDING IN WATER, AND HE’D BEEN OUT ALL NIGHT TALKING TO THEM TO TRY TO KEEP THEM CALM.” – JOLYNE MARKS, BRANCH MANAGER, WESTLAWN INSURANCE BROKERS
the roads were a bit flooded. I decided to go to have a look at the river levels and watched both arms of the river break their banks. “We had to move cattle and vehicles, and within 45 minutes our property was cut off.” Events proceeded at a rapid pace. Water continued to rise. At 2:00 pm power was lost and rain kept falling. “At that point, we didn’t think our house would be affected, but at 9.30 pm we were shining torches outside and could see our house was completely surrounded by water.”
In the early hours of the morning, water burst into the house and continued to rise while possessions were lifted higher and higher. Water reached knee height indoors, and depths of nine feet outdoors. “The SES boats came round in the morning to do a ‘proof of life’ check. We went with them to check on my parents and, eventually, my dad heard us and gave us a wave. We had 200 cattle that were standing in water, and he’d been out all night talking to them to try to keep them calm.” In the days that followed, the affected community congregated in the evacuation centre, which Jolyne describes as a “horrible experience.” But support was in ready supply in the form of the local community, as well as Jolyne’s employer, Westlawn Insurance. “Chris Dougherty [Westlawn’s General Manager] was very clear – take whatever time you need and we’ll do whatever we can to help. I didn’t really know what that meant, but teams of people came to help. It’s very overwhelming. In the early hours of Tuesday morning, the flood water came into the house – by Saturday the property had been stripped back.” As a broker in the local area, of course, Jolyne had not only her own situation to contend with, but also those of her clients. “My team in Ballina did a marvellous job, came to my home to help and lodged claims for two weeks straight,” she says. “I called in to all of my clients that I knew had been directly affected and tried to help as best I could. Some had flood cover, others didn’t, and I gave them options. For some we didn’t know whether they’d be covered or not, I lodged claims to be considered as it may have been storm affected, and we tried to push them through as quickly as possible.”
DEALING WITH CONTAMINATED WATER – COMMON APPROACH NEEDED From any natural disaster such as this, it’s important that, if possible, something positive emerges – something that builds our resilience to deal with future events. Jolyne Marks says that one of the overlooked things in dealing with the devastation caused by floodwater in the home is how to treat it – and suggests a common approach could and should be high on the agenda of authorities as we look to build our flood resilience and recovery strategies. “There needs to be education around what people should do after contaminated water such as flood goes through these houses. We all have an understanding you have to clean it, but there’s safety to consider as well,” she says. “There should be a clear standard on what to use, when and how, because people are living in contaminated conditions – they’re living and breathing in contamination, and guidance should be provided about how this should be treated. “Certain products are better for mould, there are so many gradings of bleach. “If some guidance was available, at least people whose homes have been affected could be given the right products to begin a successful cleaning process.”
NIBA.COM.AU / 23
COVER STORY / Dealing with Disaster
GOING THE EXTRA MILE
Postcode embargos are a common occurrence during major weather events, and Noel Kelly, Director of AEI Insurance Broking Group, was hugely grateful to Vero, who came to the last-minute rescue of a long-standing client. The client was on the cusp of completing the settlement of a $5.5 million commercial property in Queensland and had overlooked the insurance requirements needed to finalise the deal. “The client has 10 other properties with one insurer, and we hoped to be 24 / INSURANCE ADVISER MAY 2022
able to leverage their support given the circumstances of the embargo,” says Noel. “Despite AEI discussing the risk with the holding insurer for a week before the events, the flooding began, postcode embargos were put in place, and the insurer came back and, regardless of the fact we weren’t looking for cover for that event, they said, ‘there’s absolutely no way in the world we can offer cover’,” says Kelly. Faced with the very real prospect of his client losing a $500,000 deposit, Noel took the risk out to the wider industry and got little encouragement until he spoke with Vero.
“It was only Vero that was willing to look outside the box,” he says. “We weren’t looking for cover for that specific weather event and understand this was specifically the reason for the embargo being placed on the postcode. “The client was happy to exclude that specific event to finalise the settlement of the property. “I can’t express our gratitude for how supportive Vero was but also their dedication to providing assistance to a client in need. “The speed and delivery of their offering was incredibly powerful and demonstrates
“FINDING THE RIGHT SOLUTIONS FOR CUSTOMERS IS SOMETHING WE’RE PASSIONATE ABOUT, AND IT’S REALLY IMPORTANT FOR US TO FIND THAT SOLUTION IF WE CAN.” – CORINNE RICHARDSON, EXECUTIVE MANAGER NSW/ACT, UNDERWRITING COMMERCIAL INSURANCE, VERO
the value insurance companies can provide to clients in need. “They wanted to do the right thing by the client, be innovative and find a solution, which is rare particularly given the current state of the property market.” Corrine Richardson, Executive Manager NSW/ACT, Underwriting Commercial Insurance at Vero, says, “Finding the right solutions for customers is something we’re passionate about, and it’s really important for us to find that solution if we can. “In this scenario, we could look at the particular address and see the location of the property wasn’t affected. We were able to underwrite the risk to remove some of the concern we had, and still provide the customer with a good outcome and a solution.” Corrine says that, while it’s not always possible to find a solution, in this instance the depth of the information provided by the broker plus the overall quality of the risk helped to provide cover. “The industry has risk controls in place for good reason, but it’s important to assess the risk fully and take an individual approach to specific situations. “Noel was able to present us with detailed information to help us do that, and we were able to look at some sophisticated mapping, tailor the product and ultimately found a way to write the risk.” NIBA.COM.AU / 25
FEATURE / Road to Cobargo
2021 NIBA Young Broker of the Year Award winners, Vero Young Broker Alumni members and Vero senior leaders arrive at the village of Cobargo, NSW
‘Road to Cobargo’ wraps up a learning and charitable experience for young brokers T he 2021 Warren Tickle Young Broker of the Year Award Program concluded with four thrilling days in south-eastern NSW. Past and present Young Broker of the Year Award winners were joined by senior Vero leaders on a learning and community give-back experience. The destination was Cobargo, a small community hit hard by devastating bushfires in late 2019 and again by floods the following year. “Charity work and fundraising to support communities affected by severe weather events have become an integral part of the Vero-sponsored NIBA Warren Tickle Young Broker of the Year Award Program. Each year, we ask the state winners to work together to select a community or a local 26 / INSURANCE ADVISER MAY 2022
charity affected by a major weather-related event. They’ll then present the case to a panel of senior Vero executives for the opportunity to receive funding towards their revival,” said Anthony Pagano, Head of Intermediated Distribution at Vero. In 2020, the five state winners elected to support the Cobargo Community Bushfire Recovery Fund (CCBRF) with a grant of $25,000, courtesy of Vero. This year, the goal of the ‘Road to Cobargo’ journey was to meet with grant recipients and fund representatives to witness how the Vero Young Broker Alumni Grant helped the community through to recovery. “This first-hand experience challenged us on how we see our roles as insurance
professionals, and how the broking industry can more effectively give back to the community on individual and industry levels,” said Brad Dalton, Strategic Advisor, Commercial & Intermediated. After meeting with Director of the Little Yuin Pre-School, one of the recipients of funding from CCBRF, the whole group got their hands dirty helping with restoration and renovation projects throughout the children’s playground and garden beds. Travelling through the Yuin Country, the group met with many local heroes, including the Elders of the Yuin nation, who explained the immediate and long-term impact of the 2020 bushfires on the indigenous community. In and around Cobargo, there
“THE ADDITIONAL DONATION ANNOUNCED DURING THE VISIT WILL HELP US FURTHER DEVELOP OUR APPROACH TO RESILIENCE, ADAPTATION AND PREPAREDNESS AND TO TAKE PRACTICAL STEPS TO REDUCE OUR RISK.” Top Yuin nation Elder Garry Campbell and Little Yuin Pre school director Kim Cooke welcome the group Below The group meets with staff members of the Little Yuin Pre school
is no shortage of first-hand accounts of incredible bravery and resilience. From volunteers and firefighters to small business owners, they all risked their lives to save their community, businesses, farms, and even a wildlife park as the bushfire ravaged the land. With the original $25,000 grant allocated to rebuilding projects that are already underway, the group was inspired to raise additional funds through their personal and professional networks. Once Vero matched the raised amount dollar for dollar, the
group was incredibly proud to deliver an additional donation of $21,000 to further contribute to new recovery projects. “The additional donation announced during the visit will help us further develop our approach to resilience, adaptation and preparedness and to take practical steps to reduce our risk. Hand in hand with these major infrastructure projects, the fund is supporting around 35 other communityled projects focusing on the mental and emotional resilience of adults and children,
– ZENA ARMSTRONG, COBARGO COMMUNITY BUSHFIRE RECOVERY FUND
food security, a tool library, bushfire preparedness, environmental restoration and the creative arts, amongst many others,” said Zena Armstrong from the Cobargo Community Bushfire Recovery Fund. It was an exciting and unique broker development experience that had it all: meeting the local communities and its heroes, contributing to rebuilding efforts in the area while putting our young brokers’ resilience and leadership skills to the test. Vero hopes that the ‘Road to Cobargo’ NIBA.COM.AU / 27
FEATURE / Road to Cobargo
Firefighters and volunteers from the Narooma fire service station
“VERO HOPES THAT THE ‘ROAD TO COBARGO’ ENCOURAGED THESE YOUNG BROKERS TO STEP OUTSIDE OF THEIR COMFORT ZONE, WORK TOGETHER IN CHALLENGING CONDITIONS, AND REFLECT ON THEIR YOUNG PROFESSIONAL JOURNEY AND THE SKILLS NEEDED TO BE A SUCCESSFUL LEADER.” encouraged these young brokers to step outside their comfort zone, work together in challenging conditions, and reflect on their young professional journey and the skills needed to be a successful leader. Vero recognises the importance of investing in our young brokers and the future role they will play in supporting our communities. Later this year, Vero looks forward to bringing a group of young brokers, the upcoming 2022 Young Broker of the Year Award state winners, to Northampton, Western Australia. This community, located 480 km north of Perth, received a grant of $25,000, courtesy of Vero, after it was hit by a devastating tropical cyclone Seroja in early 2021.
ABOUT COBARGO
Cobargo, located in Yuin Country, halfway between Narooma and Bega, is a village with a diverse, yet tight-knit community, 28 / INSURANCE ADVISER MAY 2022
with a population just under 800. As the northern gateway to the Bega Valley, Cobargo has a long history as a working village and plays a vital role in servicing the surrounding localities as a centre for local agricultural industries and a highly acclaimed annual agricultural show. The village and surrounding area are home to a range of small businesses, artisans, arts and crafts businesses and its main street businesses support and connect rural residents in the Bega Valley and Eurobodalla shires.
ABOUT THE COBARGO COMMUNITY BUSHFIRE RECOVERY FUND
CCBR is a community-led fundraiser to help Cobargo and the local region contribute to its recovery. Donations are used to support community groups running projects that help the recovery of the communities of Cobargo and the local area. If you’d
like to make a donation, please visit cobargorecoveryfund.com.
ABOUT THE YOUNG BROKERS ALUMNI PROGRAM
The Young Brokers Alumni Program, bringing together the next generation of broking leaders across our industry for ongoing development and training, is an integral part of Vero’s commitment to our young brokers. Since its launch in 2019, the Program aims to foster strong bonds amongst the group and provide access to exclusive mentoring and professional development experiences. Last year, the Alumni welcomed their newest member – the 2021 winner of Vero-sponsored Warren Tickle Young Broker of the Year Award, Mitch Wight from Integral Insurance Services, PSC Connect in Victoria. * Content for this article was supplied by Vero
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BUILDING FOR THE FUTURE The triple whammy of catastrophic natural disasters, global pandemic and on-site theft has shaken the construction, plant and equipment insurance sector. And with supply-chain issues resulting in skyrocketing costs for new and replacement goods, it could be a long road back. BY SUE-ELLEN HORTON
FEATURE / Construction, Plant and Equipment Insurance
W
hile much talk of ‘long COVID’ has focused on the people who continue to suffer the after-effects of the virus long after the initial impact, the term could very validly be applied to the many areas of insurance, too. Lockdowns and construction site shutdowns have left the industry reeling. During the pandemic, supply chain issues caused massive price surges and lengthy delivery times for new or replacement items, which in turn sent second-hand prices for everything skyrocketing. As if that wasn’t bad enough, the Australian pandemic experience was
bookended by the twin natural disasters of fire and flood. The last fire of the devastating Black Summer bushfires of 2019-20 was officially extinguished in March 2020. This would turn out to be literally just weeks before the world succumbed to coronavirus. And at the other end of the pandemic, just as life was starting to creep out of lockdown and tentatively try to resume, the east coast of Australia was hit by once in a lifetime floods. Alongside the natural disasters, let’s not forget about on-site theft which was always a big problem for the industry.
“The building and construction sector continues to struggle with a huge increase in on-site thefts and this certainly isn’t helping the industry, which is already facing other significant challenges, including the cost of building materials going through the roof, as well as significant supply shortage,” says Angela O’Neil, General Manager Broking at Resilium Insurance. “It’s estimated that a whopping $650 million of high-cost construction machinery is stolen from work sites around Australia every year, so this is a huge issue for both construction businesses and their insurers.”
“It’s estimated that a whopping $650 million of high-cost construction machinery is stolen from work sites around Australia every year, so this is a huge issue for both construction businesses and their insurers.” – ANGELA O’NEIL, GENERAL MANAGER BROKING, RESILIUM INSURANCE
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For more information, speak to Milos Skopljak, National Claims Manager miloss@mecon.com.au or call 02 9252 1040 or contact your local office
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FEATURE / Construction, Plant and Equipment Insurance
“Insurers are paying higher settlements on ‘market values’ due to availability, however the premiums they collected on these risks aren’t suitable for these losses and therefore, they’re losing money.” – DANIEL WEBBER, DIRECTOR, WEBBER INSURANCE SERVICES
MASSIVE INSURANCE CLAIMS HITTING HARD
Together, all of these factors have combined to leave the industry facing some significant claims – a situation exacerbated by the recent floods in Queensland and New South Wales. Daniel Webber, Director of Webber Insurance Services, says, “This is straining insurers’ resources to review, assess, settle and pay claims.” The strain being placed on insurers, coupled with a lack of suitable replacements, means more claims are being cash-settled, explains Webber. “There is a massive shortage of plant, vehicles, materials, trades, repairers and so on, so clients with valid claims are either waiting or being cash-settled. 34 / INSURANCE ADVISER MAY 2022
“Cash settlements on total losses are challenging because clients are struggling to find anything available to buy – it’s either too expensive or not available.” While cash settlements for plant, vehicle and materials, for example, can help compensate a loss to some extent, replacements are genuinely preferred. However, with ongoing supply chain issues, replacement items are hard to come. As a consequence, the market value for items, including second-hand items, has increased significantly – which leads to an underinsurance issue if the equipment has been insured at a specific value. And, if it’s been insured at market value, that’s causing a problem for insurers – which, in turn, is having a knock-on effect for clients.
Webber says, “Insurers are paying higher settlements on ‘market values’ due to availability, however the premiums they collected on these risks aren’t suitable for these losses and therefore, they’re losing money. “Premiums are going up, capacity is going down, which is generating tough conditions where clients are ultimately paying more for less. “Underinsurance is a huge issue because the sums insured on vehicles and construction projects aren’t suitable to cover inflated costs. “Clients are sustaining massive uninsured losses due to things like liquidated damages (and) project delays for losses that are largely outside their control.”
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FEATURE / Construction, Plant and Equipment Insurance
“Some businesses have also looked at additional ways to reduce theft, including security patrols, CCTV cameras, and the installation of tracking devices implanted on key equipment.” – ANGELA O’NEIL, GENERAL MANAGER BROKING, RESILIUM INSURANCE
MINIMISING THE RISK FOR CLIENTS
Every good broker will review clients’ policies at least annually, and work on renewals with plenty of time to spare – however, it’s often the insurer who’s most influential when it comes to writing new or updated policies. Fortunately for this sector, there are potentially some options out there. Matt Cairns, Managing Director at Rensure Insurance & Risk, says, “We are finding new and current insurers in the
36 / INSURANCE ADVISER MAY 2022
market who are targeting certain industries and items, which allows us to negotiate rates.” And every insurer wants to see the right mitigation measures in place. “There are also some pretty easy and low-cost ways to minimise risks,” says O’Neil. “For instance, keep the construction site locked down tightly after hours. Keep the lights on at night, and ensure that the surroundings are continually monitored and deemed safe. Register the names and details of all visitors who come to the site as some
theft still takes place in broad daylight, and finally, ensure everyone who is on-site is protected from injury. “Some businesses have also looked at additional ways to reduce theft, including security patrols, 24-hour CCTV cameras and the installation of tracking devices implanted on key equipment.” For a sector that’s been turned upside down over recent years, the path back to some semblance of normality will be made of many small steps.
FEATURE / Construction, Plant and Equipment Insurance
The continued growth of mobile plant BY MARTIN WANLESS If you take a look around many places in Australia, it’ll come as no surprise to learn there’s significant growth occurring in many infrastructure segments – and it shows no signs of slowing down. Of course, while that’s good news for the sector in many respects, it causes ripple effects in terms of how that demand is managed. David Kidd, National Product Manager – Mobile Plant, at NTI, says, “With the infrastructure growth we’ve seen over the past few years, our customers and policyholders are starting to purchase more mobile plant items to meet the demands of this growing infrastructure trend. “As a result, the mobile plant hire industry is also really starting to grow momentum. Rather than committing to buying items, customers are now hiring mobile plant and equipment for projects that are coming on.
38 / INSURANCE ADVISER MAY 2022
“So from an insurance perspective, this means we’ve really got to be in tune with the mobile plant hire industry and make sure that when brokers do have hire accounts on their books the hire agreements are solid and protect the insured.” The increase in the mobile plant hire market is, of course, a consequence of global supply chain issues – Kidd says that three-year waiting lists aren’t uncommon for new equipment. This demand for equipment, in turn, also impacts the value of second-hand equipment – and is something brokers should be particularly aware of. “We’re starting to see an increase in appreciation on second-hand equipment due to the shortage of new equipment,” Kidd says. “This can lead to underinsurance on mobile plant and equipment noted on the policy schedules, so it is crucial that schedules are up-to-date and sum insureds are reviewed annually.”
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FEATURE / Import & Export Insurance
Navigating the stormy seas
With a sharp rise in shipping containers lost at sea, the enduring pandemic and the Russian-Ukraine war, the shipping and logistics industry remains volatile. So, what impact is this having on export and import insurance risk? BY CATH FOWLER 40 / INSURANCE ADVISER MAY 2022
NIBA.COM.AU / 41
FEATURE / Import & Export Insurance
A
ccording to the Organisation for Economic Co-operation and Development (OECD), around 90 per cent of global traded goods are carried over the seas, and the expectation is that the demand for global freight trade volumes is set to triple by 2050. On any given day, the World Shipping Council suggests 6,000 container ships traverse the ocean, moving 226 million containers annually from more than 200 ports around the world. Australians have never been busier exporting and importing goods for their businesses. As with most things, business always comes with risks. Those risks for importing and exporting businesses involve 42 / INSURANCE ADVISER MAY 2022
dealing with a complex mix of overseas companies, supply chain constraints due to the COVID-19 pandemic, and bottlenecks at some ports due to the Russian-Ukraine War. The importance of having the right level of import and export insurance has never been more apparent for your clients.
In most cases, businesses have limited control of their goods when on the high seas, giving way to the potential for serious bottom line risks if disaster strikes and goods are in transit. Through no fault of their business, their goods could be delayed, damaged or destroyed, resulting in financial losses.
“IN MOST CASES, BUSINESSES HAVE LIMITED CONTROL OF THEIR GOODS WHEN ON THE HIGH SEAS, GIVING WAY TO THE POTENTIAL FOR SERIOUS BOTTOM LINE RISKS IF DISASTER STRIKES AND GOODS ARE IN TRANSIT.”
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Heavy Motor Insurance Just got Better
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’), Target Market Determination (TMD) and Financial Services Guide (FSG). A copy of the PDS, TMD and FSG can be obtained by contacting HMIA on 02 9227 8400 or visiting www.hmia.com.au.
FEATURE / Import & Export Insurance
THE PERFECT STORM OF GLOBAL IMPACTS
From a global logistics perspective, it’s a challenging time for both insurers and their customers. The supply and logistics industry is currently facing delays and slowdowns in the movement of vessels globally as a result of both the COVID-19 pandemic and the Russian-Ukraine conflict. Daniel Morrison, Acting Head of Marine from NTI Limited, says, “While movements in and out of Australia aren’t too heavily affected right now, as recently as last month [April] Shanghai had hundreds of vessels sitting outside the port waiting. What that means is containers are stuck in transit, and the quality containers don’t make it to Australia – which then has a potential impact on how cargo can be appropriately packed for international transit.” He continues, “There are also issues around accumulations at port locations if vessels aren’t moving as quickly. You can have goods stuck at a port at a greater value and volume than is normally there, so there are risk factors around an increased potential of a large loss or increased potential of some breakages in the items going missing. “We’re also starting to see the impact of inflation, so values of goods are increasing and the Russian-Ukraine conflict has pushed the pricing of some agricultural commodities through the roof. “From an insurance perspective, we’re now seeing requests for much higher sums insured. Then from an insured customer perspective, if they’re not keeping up with these sharp rises, they could find themselves with a partially uninsured loss.”
“WE’RE ALSO STARTING TO SEE THE IMPACT OF INFLATION, SO VALUES OF GOODS ARE INCREASING AND THE RUSSIAN-UKRAINE CONFLICT HAS PUSHED THE PRICING OF SOME AGRICULTURAL COMMODITIES THROUGH THE ROOF.” – DANIEL MORRISON, ACTING HEAD OF MARINE, NTI LIMITED 44 / INSURANCE ADVISER MAY 2022
Australia’s Number 1 in Marine
#1 for Local Experts
#1 in Claims Management
We have Australia’s largest team of marine claims experts in local offices across the country.
#1 Wordings in market
partner.nti.com.au Insurance products are provided by National Transport Insurance, a joint venture of the insurers Insurance Australia Limited trading as CGU Insurance ABN 11000016722 AFSL 227681 and AAI Limited trading as Vero Insurance ABN 48005297807 AFSL 230859 each holding a 50% share. National Transport Insurance is administered on behalf of insurers by its manager NTI Limited ABN 84000746109 AFSL 237246. Terms and Conditions apply. NTI.M049.1.20092021.
FEATURE / Import & Export Insurance
CONTAINERS OVERBOARD
“UNDERWRITERS MUST FIRST UNDERSTAND THE NATURE OF CARGO, WHETHER IT BE RAW MATERIALS, REFRIGERATED GOODS, LIVESTOCK, BULK OIL OR MACHINERY.” – ROB CAIROLI, VICE PRESIDENT MARINE ASIA PACIFIC, LIBERTY SPECIAL MARKETS
MANAGING RISK FACTOR CONSIDERATIONS FOR IMPORT AND EXPORT INSURANCE
Rob Cairoli, Vice President Marine Asia Pacific for Liberty Specialty Markets, says there are a number of factors that need to be considered when it comes to managing risks associated with shipping and freight. “Underwriters must first understand the nature of the cargo,” he says, “whether it be raw materials, refrigerated goods, livestock, bulk oil or machinery. Different cargoes carry different risks during transportation. This is also what makes marine insurance quite interesting. The 46 / INSURANCE ADVISER MAY 2022
type of cargo may be fragile, perishable, prone to rust, contamination or susceptible to spontaneous combustion. There are so many aspects and risk factors to contemplate depending on the nature of the commodity. “Then underwriters need to consider how the cargo is shipped – be it bulk, palletised and containerised or stowed on deck exposed to the elements. Adequate preparation, packing and storage of the goods is fundamental to ensuring safety during the rigours of the voyage. An understanding of packaging and methodology of the handling of goods will influence decisions of underwriters.”
The world learned a great deal about the challenge of global shipping when a 1,300-foot container ship got stuck in the Suez Canal. But that wasn’t the only challenge the shipping industry has faced in recent times. Daniel Morrison, Acting Head of Marine from NTI Limited, says, “There’s been a general change in the industry, where we’re seeing much bigger vessels being used. So from an insurance perspective, we’ve got significantly larger values on-board vessels and in transit in one location. We’re also seeing more containers falling off ships than have done at any time in the past.” A well-known example here in Australia is when the APL England lost containers overboard in a storm back in 2020. As a result, earlier this year, formal charges against the captain were laid for operating the ship in an unseaworthy condition with key maintenance issues found with the ship. The ship lost 50 boxes overboard while a further 63 were damaged. Sadly, this is not a one-off incident, as we’ve seen more shipping containers fall overboard in the last two years than was seen in the decade combined before that.
“THE WORLD IS EXPERIENCING AN INCREASE IN CATASTROPHIC DISASTERS, AND WITH THE INCREASED COSTS OF GOODS AND FREIGHT, CLIENTS NEED TO REASSESS THEIR LIMITS ON THESE RISKS.” – MATT CAIRNS, MANAGING DIRECTOR, RENSURE INSURANCE & RISK
AN INSURANCE AND LOGISTICS-LED RISK APPROACH
Matt Cairns, Managing Director of Rensure Insurance & Risk, explains, “The world is experiencing an increase in catastrophic disasters, and with the increased cost of goods and freight, clients need to reassess their limits on these risks. The increase in limits causes higher losses if a claim was to occur. We will continue to see insurers increasing premiums and restricting covers to counter these effects. “In order to manage such risks, we have dedicated in-house risk engineers who help our underwriters understand the various perils and make informed decisions regarding risk selection,” says Cairoli. “With this comes the ability to tailor solutions. There are also a number of reputable service providers who can assist insurers with particular data, statistics and surveys to reduce the potential for loss for clients.” Morrison shares a similar sentiment. “As well as having regular communication to the market in terms of risk insights and updates on global logistics, we have also employed a logistics risk engineer,” he says. “He comes from the logistics industry rather than from an insurance background. His expertise is to advise our customers on how to get their goods from point A to point B in their original state and as efficiently as possible. “It goes without saying we’re there to support our customers in the event of a loss. But our overall aim is to help our customer get their goods to their final customer.” NIBA.COM.AU / 47
COMMUNITY HUB
COMMUNITY HUB MAY 2022
INDEX
The COMMUNITY HUB is your space to showcase your products and services to a specialist audience.
AB Phillips ......................................................48 ASR Underwriting.......................................49 AIBI....................................................................50 Australasia Underwriting.........................50 Tudor Insurance Brokers..........................50
Liberty Special Markets............................50 Moran Insurance Brokers.......................... 51 MGA Insurance Group............................... 51 Affinity Insurance Brokers....................... 52 Newline Group............................................. 52
Wellington Underwriting Agencies..... 53 NIBA advertising.......................................... 53 QPIB.................................................................. 53
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
COMMUNITY HUB
NIBA.COM.AU / 49
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
Property Liability Underwriting
03 9559 3316 03 9559 3310 03 9559 3317
Email Contact: firstname@australasiaunderwriting.com.au AIBI is a registered trading name of Capital Mutual Insurance Brokers Pty Ltd. Capital Mutual Insurance Brokers Pty Ltd is a Corporate Authorised Representative of McLardy McShane Partners Pty Ltd, Australian Financial Services Licence No 232987 ABN 14 064 465 309. McLardy McShane Partners Pty Ltd is a member of The Steadfast Group.
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
50 / INSURANCE ADVISER MAY 2022
tudorinsurance.com.au
COMMUNITY HUB
NIBA.COM.AU / 51
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
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
At Newline Australia, we underwrite: Life Science, Clinical Trials, Public & Products Liability insurance, Professional Indemnity (PI) insurance, Financial Institutions insurance, Directors & Officers insurance and Crime insurance
Key Liability Occupations:
Key PI Occupations:
Key FI Occupations:
• Alternative & Complementary medicines •A utomotive •B iotechnology •C linical Trials / Research •C osmeceuticals / Nutraceuticals •D efence – machinery, weaponry & protective equipment •L ife Science / Pharmaceuticals •M edical & Surgical Devices (including invasive implants) •M edical Equipment / Products •M edicinal Cannabis •M ining •R ail – Products, Maintenance, Locomotive Engineering, operators, Rolling Stocks & Engine Manufacturers •U niversities •V eterinary Medicines
•A ccountants •A rchitects •E ngineers •E nvironmental Consultants • I nsurance Brokers / Underwriting Agencies •L aw Firms •M anagement Consultants •M iscellaneous Risks •R eal Estate Agents •U niversities •V aluers
•F und Managers/Investment Managers • Stock Brokers •M anaged Investment Schemes •E xcess lines for Financial Planners
Will Clarke
Stephen Mullaly
Linda Sepala
Senior Underwriter – Liability
Underwriting Manager – PI
Underwriting Manager – D&O & FI
Phone: 03 9912 4021 Email: wclarke@newlinegroup.com.au
Phone: 03 9912 4017 Email: smullaly@newlinegroup.com.au
Phone: 03 9912 4010 Email: lsepala@newlinegroup.com.au
Key D&O • I nsured firms can be not-for-profit, privately held or publicly traded •S ide A/DIC placements • Medicinal Cannabis risks •A ll industry sectors, both commercial and financial, are underwritten
Key Crime Commercial Crime Insurance is also offered alongside other Financial Lines products
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 Newline Australia Insurance Pty Ltd is wholly owned by Newline Underwriting Management Ltd and 100% secured by Newline Syndicate 1218 at Lloyd’s (NWL1218)
COMMUNITY HUB
BE PART OF NIBA
Wellington Underwriting Agencies specialise in labour hire/recruitment, complex liability risks and niche property solutions.
Advertise with the most influential and trusted voice in the Australian intermediated insurance industry
Labour Force includes Broadform Liability, Professional Indemnity and Management Liability and has been developed for: • labour hire companies • recruitment companies • group training and registered training organisations
·Insurance Adviser
· NIBA website · Broker Buzz · Need a Broker website · Targeted eDMs · NIBA events
Our Combined General Liability wording has been tailored for complex risks including: • construction • manufacturing • rail • resource sector; and • other hard to underwrite risks
WE ARE YOUR VOICE
Wellington’s Property capabilities are focussed on niche exposures including: • catastrophe-exposed properties • mining sector
Contact our Underwriters today or visit our website at
Contact Tony May National Advertising Sales Manager E: tmay@niba.com.au
www.wellingtonu.com.au
IA0420.indb 55
1/4/20 11:16 am
“My QPIB designation gives my clients peace of mind that I’m a trusted professional.”
Apply online at niba.com.au or email NIBA Memberships Manager Audi Witsen – awitsen@niba.com.au
IN
RA
K
U
ER
QPIB
S
QPIB Campaign Print.indd 4
D PRAC IE T IF
ING IS
QPIB – A STATEMENT OF PROFESSIONALISM
• QUA L
– CRAIG ANDERSON, 2018 YOUNG BROKER OF THE YEAR
NCE BR
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25/1/22 12:48 pm
NIBA.COM.AU / 53
NIBA / 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.
2022 NIBA CGU LEARNING SERIES | AUSTRALIA’S CHANGING WEATHER
WHERE: On demand hosted by GoTo webinar WHEN: This webinar will give attendees on demand access until 20 July 2022. It also contains a supporting quiz. This webinar presents scientific data that shows how weather patterns are changing across Australia and the impact on insured properties, including rural assets and future proofing our communities. It includes key insights to advise clients on protecting their wealth and livelihoods including their homes, businesses, farms and communities.
2022 NIBA VIC BREAKFAST SEMINAR | THE WORK-LIFE BALANCING ACT WHERE: Crown Melbourne WHEN: Friday 20 May | 7:45 am – 9:30 am CPD: 1 CPD point Prior to the NIBA / UAC Expo, join us in the Garden Room for a light continental breakfast and panel discussion hosted by the Victorian Young Professional Committee. Come along for a discussion on the work-life balancing act and hear from members of the Victorian broking profession on their real-life experiences of diversity and inclusion in the workplace. Panel members include: • Emma Keegan, Branch Leader and Head of Strategic Sales Operations – Corporate, Gallagher • Prudence Chang, Executive Manager – Business Development and Partners, NCI • Facilitated by Catrina Galanti, Sales Executive, NCI This session offers 1 CPD point to attendees.
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.
2022 NIBA / UAC VIC UNDERWRITING EXPO
WHERE: Crown Melbourne WHEN: Friday 20 May | 9:00 am – 10:30 am or 10:30 am – 12:00 pm CPD: 2 CPD points After the breakfast concludes, head through to the River Room for the NIBA / UAC Vic Underwriting Expo. At the Expo, underwriters can exhibit their services to the local broker market and network with fellow industry colleagues. The exhibition is free to attend and offers 2 CPD points to attendees.
2022 NIBA VIC GALA LUNCH
WHERE: Crown Melbourne WHEN: Friday 20 May | 12:00 pm – 3:30 pm This year’s NIBA Vic Gala Lunch will return to Crown Melbourne and follow up on last year’s sold out lunch. The events keynote will be delivered by famed Australian Explored, James Castrission. James’ keynotes and workshops emotionally engage audiences through metaphor, creating a powerful platform to explore mindset, leadership, team dynamics and decision-making in a VUCA environment.
2022 NIBA WA GALA LUNCH
WHERE: Crown Perth WHEN: Friday 8 July The annual NIBA WA Gala Lunch offers a chance to celebrate and unwind after the end of financial year with up to 500 members of the WA insurance community.
2022 NIBA QLD GALA LUNCH
WHERE: Brisbane Convention and Exhibition Centre WHEN: Wednesday 13 July This years’ NIBA Qld Gala Lunch will offer brokers the chance to reconnect and celebrate the best talent in the Qld market. Prior to the lunch, kickstart your day at the NIBA breakfast before walking through the NIBA UAC Qld Expo.
2022 NIBA NSW GALA LUNCH
WHERE: Doltone House Hyde Park WHEN: Thursday 21 July Join us at Doltone House Hyde Park for a magical afternoon celebrating the industry’s best in broking. The events keynote will be delivered by Australian paralympic wheelchair racer and leading coach Louise Sauvage OAM, who is often regarded as the most renowned disabled sportswoman in Australia. She won nine gold and four silver medals at four Paralympic Games and eleven gold and two silver medals at three IPC Athletics World Championships.
2022 NIBA SA GALA LUNCH WHERE: Adelaide
WHEN: Friday 22 July NIBA’s SA Gala Lunch will bring together all facets of the intermediated insurance industry to celebrate the end of the financial year and look forward to the year ahead.
DISPLAY ADVERTISING INDEX – MAY 2022 CHU......................................................... IFC Vero................................................................5 CGU...............................................................7 ANZIIF......................................................... 9 Focusnet..................................................... 13
Allianz..........................................................19 SLE..............................................................29 MECON....................................................33 GT Insurance........................................... 35 QBE............................................................. 37
CBN............................................................39 HMIA..........................................................43 NTI...............................................................45 Ebix..........................................................IBC CGU...................................................... OBC
If you’d like to advertise your products and services through NIBA, please contact Tony May today on (02) 9459 4303
54 / INSURANCE ADVISER MAY 2022
NIBA / Events
PROTECSURE NIBA PRESENTATION SKILLS The Protecsure NIBA Presentation Skills Program returns face to face in Sydney for 2022! Workshop 1 saw participants learn about the art of networking with presenter Nikki Heald. Nikki returned for workshop 2 where they learnt how to write a speech
and develop a hook. Workshop 3 taught participants about the unspoken techniques of presenting with communication expert Michael Kelly. The final workshop involved participants presenting to their peers and a panel of judges.
Workshop 1
Workshop 2
Workshop 3
Final Workshop
NIBA.COM.AU / 55
INSURER STRENGTH RATINGS
S&P GLOBAL
INSURER FINANCIAL STRENGTH RATINGS
AUSTRALIA
RATING
NON-LIFE INSURERS AAI Ltd.
AA-/STABLE
Achmea Schadeverzekeringen N.V.
A/STABLE
AIG Australia Limited
A/NEGATIVE
The following is a list of S&P Global Ratings insurer financial strength ratings assigned to insurance companies in Australia and New Zealand. Ratings as at 1 May 2022.
Allianz Australia Insurance Ltd.
AA-/STABLE
Allied World Assurance Co. Ltd.
A-/POSITIVE
Berkshire Hathaway Specialty Insurance Company
AA+/STABLE
Contact: Craig Bennett, S&P Global Ratings, 03 9631 2197
BHP Marine & General Insurances Pty Ltd.
A/CreditWatch Negative
Chubb Insurance Australia Ltd.
AA-/STABLE
Factory Mutual Insurance Company
A+/STABLE
Great Lakes Insurance S.E (Australia Branch)
AA-/STABLE
Hallmark General Insurance Co. Ltd.
BBB+/STABLE
NEW ZEALAND
RATING
NON-LIFE INSURERS AA Insurance Ltd.
AA-/STABLE
Insurance Australia Ltd.
AA-/STABLE
AIG Insurance New Zealand Ltd.
A/NEGATIVE
Liberty Mutual Insurance Company Limited
A/STABLE
Medical Insurance Australia Pty Ltd.
A-/STABLE
Mitsui Sumitomo Insurance Company Limited
A+/STABLE
The North of England Protecting and Indemnity Association Ltd.
A/NEGATIVE
Aioi Nissay Dowa Insurance Co., Ltd
A+/STABLE
Allianz Australia Insurance Limited
AA-/STABLE
Berkshire Hathaway Specialty Insurance Company
AA+/STABLE
QBE Insurance (Australia) Ltd.
A+/STABLE
Chubb Insurance New Zealand Ltd.
AA-/STABLE
QBE Insurance (International) Ltd.
A+/STABLE
Factory Mutual Insurance Company
A+/STABLE
Society of Lloyd’s
A+/STABLE
Sompo Japan Insurance Inc.
A+/STABLE
Southern Cross Benefits Limited
A/STABLE
Tokio Marine & Nichido Fire Insurance Co., Ltd.
A+/STABLE
Great Lakes Insurance SE
AA-/STABLE
Hallmark General Insurance Co. Ltd.
BBB+/STABLE
Hannover Life Re of Australasia Ltd.
AA-/STABLE
XL Insurance Company SE
AA-/STABLE
IAG New Zealand Ltd.
AA-/STABLE
Zurich Australian Insurance Ltd.
AA-/STABLE
Medical Insurance Society Ltd.
A-/POSITIVE
LENDERS MORTGAGE INSURERS
Mitsui Sumitomo Insurance Co. Ltd (New Zealand Branch)
A+/STABLE
Arch Lenders Mortgage Indemnity Ltd.
A/NEGATIVE
Genworth Financial Mortgage Insurance Pty Ltd.
A/STABLE
QBE Lenders' Mortgage Insurance Ltd.
A/STABLE
QBE Insurance (Australia) Ltd.
A+/STABLE
Society of Lloyd’s
A+/STABLE
Southern Cross Benefits Ltd.
A/STABLE
AIA Australia Ltd.
A+/STABLE
Southern Cross Pet Insurance Ltd.
A/STABLE
Challenger Life Company Ltd.
A/STABLE
Teleco Insurance (NZ) Ltd.
BBB+/STABLE
Hallmark Life Insurance Co. Ltd.
BBB+/STABLE
A/NEGATIVE
MetLife Insurance Ltd.
A+/STABLE
Resolution Life Australasia Ltd.
A-/STABLE
Westpac Life Insurance Services Ltd.
A+/STABLE
The North of England Protecting and Indemnity Association Ltd.
Tokio Marine & Nichido Fire Insurance Co. Ltd. (New Zealand Branch) A+/STABLE Vero Insurance New Zealand Ltd.
AA-/STABLE
Vero Liability Insurance Ltd.
AA-/STABLE
Zurich Australian Insurance Ltd.
AA-/STABLE
HEALTH INSURERS NIB NZ Ltd.
A-/STABLE
Southern Cross Medical Care Society
A+/STABLE
LENDERS MORTGAGE INSURERS Genworth Financial Mortgage Insurance Pty Ltd. (NZ Branch)
A/STABLE
QBE Lenders’ Mortgage Insurance Ltd.
A/STABLE
LIFE INSURERS
LIFE INSURERS
REINSURERS Aspen Insurance UK Ltd.
A-/STABLE
Berkley Insurance Company
A+/STABLE
General Reinsurance Australia Ltd.
AA+/STABLE
General Reinsurance Life Australia Ltd.
AA+/STABLE
Hannover Life Re of Australasia Ltd.
AA-/STABLE
Hannover Rück SE
AA-/STABLE
HDI Global SE
A+/STABLE
HDI Global Specialty SE
A+/STABLE
Munchener Ruckversicherungs-Gesellschaft (Munich Reinsurance Co) AA-/STABLE Munich Reinsurance Co. of Australasia Ltd.
AA-/STABLE
Pacific Life Re (Australia) Pty Ltd
AA-/STABLE
QBE Blue Ocean Re Ltd.
A+/STABLE
RenaissanceRe Europe AG
A+/STABLE
RGA Reinsurance Co. of Australia Ltd.
AA-/STABLE
Asteron Life Ltd.
AA-/STABLE
Hallmark Life Insurance Co. Ltd.
BBB+/STABLE
Medical Life Assurance Society Ltd.
A-/POSITIVE
SCOR Global Life Australia Pty Ltd.
AA-/NEGATIVE
Resolution Life New Zealand Ltd.
A-/STABLE
SCOR Reinsurance Asia Pacific Pte Ltd.
AA-/NEGATIVE
A-/STABLE
Swiss Re Asia Pte. Ltd., (Australia Branch)
AA-/NEGATIVE
Swiss Re International SE
AA-/NEGATIVE
Swiss Re Life & Health Australia Ltd.
AA-/NEGATIVE
Transatlantic Resource Company
A+/CreditWatch Positive
Resolution Life Australasia Ltd. (New Zealand Branch)
REINSURERS HDI Global Specialty SE
56 / INSURANCE ADVISER MAY 2022
A+/STABLE
INSURER STRENGTH RATINGS
BEST’S
NEW ZEALAND
FINANCIAL STRENGTH RATINGS
The following is a list of AM Best Financial Strength Ratings (FSRs) assigned to insurance companies in Australia and New Zealand. Ratings as at 4 May 2022. 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
LIFE, ANNUITY AND ACCIDENT General Reinsurance Life Australia Ltd.
A++/STABLE
PROPERTY/CASUALTY
RATING
COMPOSITE Quest Insurance Group Limited
B/STABLE
LIFE, ANNUITY AND ACCIDENT American Income Life Insurance Company (New Zealand Branch)
A/STABLE
BNZ Life Insurance Limited
A u/NEGATIVE
CIGNA Life Insurance New Zealand Limited
A u/POSITIVE
Co-operative Life Limited
B++/STABLE
DPL Insurance Limited
B++/STABLE
Fidelity Insurance Limited
A-/STABLE
Fidelity Life Assurance Company Limited
A-/STABLE
Foundation Life (NZ) Limited
A-/STABLE
General Reinsurance Life Australia Limited (New Zealand Branch)
A++/STABLE
Kiwi Insurance Limited
A- u/DEVELOPING
Momentum Life Limited
B++/STABLE
Partners Life Limited
A- u/DEVELOPING B/POSITIVE
Ansvar Insurance Limited
A-/STABLE
First American Title Insurance Company of Australia Pty Limited
A/STABLE
General Reinsurance Australia Ltd
A++/STABLE
Pinnacle Life Limited
Guild Insurance Limited
A-/STABLE
PROPERTY/CASUALTY
Pacific International Insurance Pty Limited
B++/NEGATIVE
Accuro Health Insurance Society Limited
B+/NEGATIVE
The Hollard Insurance Company Pty Ltd
A-/STABLE
A+/STABLE
The New India Assurance Company Limited (Australia Branch)
Aioi Nissay Dowa Insurance Company, Limited (New Zealand Branch)
B++/STABLE
Beneficial Insurance Limited
B++/STABLE
Brightsideco Insurance Limited
B/STABLE
Consumer Insurance Services Limited
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
Mitsui Sumitomo Insurance Company Limited (New Zealand Branch)
A+/STABLE
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 Limited
A-/STABLE
Union Medical Benefits Society Limited
A/STABLE
Virginia Surety Company, Inc. (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.
S&P GLOBAL RATINGS (PAGE 56)
*For the S&P Global Insurer Financial Strength Ratings Definitions visit: https://www.niba.com.au/resource/standardandpoors.pdf Copyright © 2022 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 third-party 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 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.
NIBA.COM.AU / 57
INSURANCE JOURNEY / Pat McCole
A CAREER FOR LIFE
I
was set for a career in finance, working part time in an administration role for a family friend while studying at University. I got to a point though where I felt like I needed a break – and that showed me it wasn’t the right direction I wanted to take. Even though most of my family are employed in the medical profession, I was still drawn to something financial. One day I saw a broking assistant role advertised and I applied. That was how I got my start in broking and I’ve never looked back. Broking was just something I immediately enjoyed. I moved to a different broker after five months and shortly after I started having client interactions. That’s when I knew this was going to be more than a job. Things really took off for me then. I’ve been with Aon in Adelaide for nearly three years and was recently promoted to a senior role. My manager, Ian Furby, nominated me for the 2021 Warren Tickle Young Broker of the Year Award and it was amazing to be part of such a prestigious award. I felt honoured to be the finalist for South Australia and the Northern Territory. There were times I felt a bit awkward hearing people sing my praises, but the big thing for me about going through the awards process was learning more about the broking industry as a whole and how important our role is for our clients. That came through in the client testimonials and it was great to get that recognition and feedback. I think the experience reinforced to me that I’m confident in what I do and the value I can bring. Plain and simple, helping my clients is what I love about broking. Being able to get the best result for them, especially as things are difficult for so many industries is so rewarding – and that applies to finding cover for them, getting more competitive terms or premiums, or helping with claims. The diversity of my role is just great – not one client is the same as another, and I thrive on the different challenges every day. A growing area where I think we add value to our clients is ensuring the right
PROUDLY SUPPORTING
58 / INSURANCE ADVISER MAY 2022
“Plain and simple, helping my clients is what I love about broking.” public liability and professional indemnity cover is in place for them. We live in one of the most litigious countries in the world and it is imperative that we have this exposure adequately insured to protect clients in the event of any legal action. My clients are a mixture of small organisations and larger SME/mid-market clients, so the role we play is crucial for them. In terms of ambitions for my career, I don’t have a particular goal. I just want to grow my skills and knowledge as a broker and be the best I can be – not only for myself but for my clients. I’m fortunate to have mentors in and outside of the industry to help me be as well-rounded as I can. They give me insurance advice, career advice and life advice. Having that input from people
outside the industry gives me good and unique perspectives. COVID-19 has had an impact across the board, but there was a silver lining with working from home. I was able to be with my wife Phoebe while she was pregnant with our son Edward, who’s now 18 months old. It’s been great to be so close to all his firsts. My favourite thing outside of work is spending time with them. That, and being able to enjoy a quiet drink at the end of the day is the way I unwind. My favourite red is from McLaren Vale – SC Pannell Tempranillo. I’m also fond of IPAs – there’s a great one from a local brewer called Little Bang. I also love watching sport and playing golf. I probably shouldn’t admit to being an Essendon supporter rather than following one of our local teams, but it’s a big family tradition. Since we’ve had Edward, I don’t get to play much golf, but we did get him some toy clubs at Easter. He is legitimately obsessed with them. Having that time with them during the lockdowns kept me sane.
FOUR QUICK QUESTIONS What’s your favourite band? My favourite artist is Sia and she’s from Adelaide as well. What’s your fantasy sports moment? Play a round of golf with Tiger Woods. My last meal would be: Just a supreme pizza – I have pretty simple tastes. The most precious thing in the world to me is: My son Edward. He’s a very funny kid with a great personality and he cracks me up every day.
Share your insurance journey. Email editor@niba.com.au
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