Insurance Adviser February 2022

FEBRUARY 2022

DRIVING WITH INTELLIGENCE

For heavy vehicle and fleet insurance

THE ULTIMATE CAREER MOVE The 2022 NIBA Awards

INSURANCE BROKERS Code of Practice update

WEATHERING THE DECLARED VALUES STORM

For agriculture insurance

WE ARE YOUR VOICE

2021

Thanks for honouring us with this recognition

Lines of Business: ► Professional & Financial Risks ► Casualty ► Energy, Property & Construction ► Crisis Management ► Accident & Health ► Financial Risk Solutions ► Marine ► Global Transaction Solutions ► Surety ► War & Terrorism ► Treaty Reinsurance (LM Re)

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Exploration & Production Renewable Energy Oil, Gas, Petrochemical & Chemical Marine General Liabilities Hull & Cargo Product Recall Parametric Weather Index Solutions

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The independent NIBA Broker Market Survey was conducted from July to September 2021 and compared 18 general insurers and insurance agencies in Australia.

Liberty Specialty Markets is a trading name of Liberty Mutual Insurance Company, Australia Branch (ABN 61 086 083 605) incorporated in Massachusetts, USA (the liability of members is limited).

CONTENTS February 2022

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FEATURES

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

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YOUR GUIDE TO THE 2021.2 NIBA CONVENTION Where the industry comes together

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

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

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22

THE ULTIMATE CAREER MOVE – THE 2022 NIBA AWARDS Recent winners reflect on the impact of winning the Broker of the Year or Young Broker of the Year award

NIBA.COM.AU / 3

CONTENTS February 2022

FEATURES 28

DRIVING WITH INTELLIGENCE For heavy motor and fleet insurance

IN EVERY ISSUE NIBA CEO Welcome...................................... 6 Representation................................................. 8 Why be a NIBA member?............................. 10

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

PROFESSIONALISM AFCA case study........................................... 18 Code of Practice update................................ 19 Digital marketing........................................... 20

36 WEATHERING

THE DECLARED VALUES STORM In preparation of increasing CAT events

4 / INSURANCE ADVISER FEBRUARY 2022

EVENTS

Forthcoming events....................................... 52 Event pictorials.............................................. 53

REFERENCE Community hub............................................ 44 Insurer strength ratings................................. 56 Insurance journey: Don Shields.....................58

CEO / Welcome

WELCOME TO 2022 – A YEAR THAT PROMISES CHALLENGES, UNCERTAINTY AND ALSO OPPORTUNITY

I

t may seem counterintuitive, but I do feel a sense of optimism and opportunity, not necessarily tomorrow or the next day, but into the future.

Don’t get me wrong, there is no doubt the current environment is extremely challenging. Business confidence over the past few months has plummeted, and while I would have preferred not to refer to it, the Omicron strain of COVID-19 has seen us reset our expectations and our risk tolerance. Now that the COVID-19 restrictions in some states have relaxed, it becomes a matter of personal choice as to how one interacts in the community, and how we prioritise where we go and with whom.

We saw this come to fruition at Christmas time when many of us had the choice to visit friends or travel interstate or overseas, and yet many stayed home, choosing not to be in a position to miss out on pre-planned family get togethers, or possibly stuck in isolation far from home.

So, while for the most part the attitude is ‘we need to live with this’, there is also an overriding concern about when it is and isn’t important to meet face-to-face. And this has played out in our registrations for the Gala lunches and the NIBA 2021.2 Convention, deferred from last year. We wanted to deliver a face-to-face Convention, and then limit it to each state so delegates didn’t have to travel interstate.

I want to say a big thank you to those of you who have registered for the 2021.2 Convention, and to those who haven’t, the virtual option is still available.

At the moment, there is still a sense of great uncertainty for some, while others just want to get on with it. However, the silent lockdown that we are now experiencing is having a debilitating effect on the economy in many states, and without the government support that was in place last year, many businesses are struggling, and brokers are seeing this first-hand.

From a business perspective, one of the upsides of the past two years, I believe, has been an acceleration in the use of technology.

This has increased efficiencies in delivering faster transactions, and in some cases, improved claims processes. This has been somewhat offset by a lack of staff, as many experienced professionals employed in our industry returned overseas, and not a lot of new talent was able or wanting to come to Australia. This should ease as border and travel restrictions become more relaxed around the world.

Looking further ahead, recent inflation increases are hinting at interest rate rises earlier than originally expected, with some experts predicting rises as early as August this year. Inflation pressures are certainly coming from some unlikely sources. The used car market is just one example where the semi-conductor shortage and supply chain disruptions have reduced the world supply of new cars. As a relatively small and more remote market, Australia would not be top of the list for many manufacturers. As a result, many used cars are selling for the same price they were bought, some even higher.

One upside from a rise in interest rates may be the easing of price pressures in the insurance market, as the reliance on premium increases for profit margins may ease somewhat.

I also believe the industry seems to be more committed to working collaboratively to find more innovative and relevant solutions to

6 / INSURANCE ADVISER FEBRUARY 2022

make insurance more affordable, while it will be interesting to see how net zero emissions targets play out through the year, as more businesses focus on social and climate responsibility.

The Federal election is due no later than mid-May 2022, and it will be interesting to see what sweeteners the pre-election budget delivers. This also means there is unlikely to be any major Federal legislation impacting our industry introduced before May. That said, as has been the case for the past number of years, Christmas time delivered some key reports including the Australian Law Reform Commission’s first interim report on the Review of Legislative Framework for Corporations, which will also work in tandem with the Quality of Advice Review. The Terms of Reference for the Quality of Advice Review will follow through with recommendations from the Banking Royal Commission, including Recommendation 2.6, which calls for a review of General Insurance Remuneration.

It must be emphasised that the reference was remuneration, not just commission, as many people suggest. So, understandably, the terms of reference for the review that also looks at financial advice and life insurance commissions are extremely broad.

We will continue to play our role as we prepare our submissions, as well as our involvement and ongoing interactions with Government and the regulators.

The new Code of Practice has passed through the critical consultation process, and the independent reviewer has provided the final report. The NIBA Board has signed off the independent reviewer’s report and we expect the Code of Practice to be formally launched on 1 March 2022, with an implementation date of 1 November 2022.

This is a critical milestone and a credit to the NIBA Board and all stakeholders who provided feedback on the Code of Practice. The Code sets higher standards of transparency and accountability that are essential to our professionalism and integrity of reputation.

As the final report for the Quality of Advice Review is not due until 16 December 2022, it is unlikely that any potential changes won’t be announced until 2023. This gives us some certainty and stability about remuneration throughout 2022.

One thing certain about the year ahead is uncertainty. For this reason, I am confident the role of the broker will be more important than ever. The Vero SME index showed that the number of people looking to use a broker was increasing, as people realise more and more the importance of having the right insurance for their needs.

You only have to look at the exponential growth in queries relating to travel insurance, as most people don’t know what is and isn’t covered. The only way to ensure your risks are adequately protected is through a trusted professional insurance broker.

PHILIP KEWIN Chief Executive Officer, NIBA

Much more than truck insurance.

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We work closely with customers to optimise business processes and driver behaviour.

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Contact your Zurich representative today.

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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.

Quality of Advice Review

Late last year, the Federal Government released draft terms of reference for the Quality of Advice Review.

Building on from ASIC’s consultation paper, Promoting access to affordable advice for consumers, the Treasury-led review will predominately focus on issues relating to the affordability and accessibility of advice post the Royal Commission.

In particular, the review will consider how the regulatory framework could better enable the provision of high quality, accessible, and affordable financial advice. The review will consider a number of important areas for insurance brokers including the concepts of general and personal advice, safe harbour provisions, disclosure requirements, the exemption to the ban on conflicted remuneration for general insurance brokers, and the process by which retail and wholesale clients are defined.

NIBA has already begun engaging with Treasury and key stakeholders within government, enlisting the help of our members to brief Federal MPs on the role insurance brokers play in ensuring all Australians have access to quality risk advice.

ALRC Review of Financial Services Legislation

NIBA has begun preparing its submission to the Australian Law Reform Commission’s interim report on the Review of the Legislative Framework for Corporations and Financial Services Regulation.

The report, which was tabled in Parliament late last year, seeks feedback on 16 proposals, and eight questions for reform. The report also made a number of recommendations relating to relatively technical matters, which the Government could begin implementing immediately.

8 / INSURANCE ADVISER FEBRUARY 2022

A second interim report, focusing on regulatory design, regulations, class orders, and standards, is due by 30 September 2022, with a third interim report and a consolidated final report both due in 2023.

ASIC CP 550 Consumer remediation: Update to RG 256 NIBA is currently preparing a submission on behalf of members to ASIC’s further

consultation paper on an updated regulatory guide for client remediation by AFSL holders.

The guide sets out ASIC’s guidance for Financial Services Licensees who provide personal advice to retail clients and who seek to remediate clients who have suffered loss or detriment, as a result of misconduct or other compliance failure to the licensee (or its representatives).

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

ADVERTORIAL / Blue Zebra

OVERCOMING THE EFFECTS OF THE HARD MARKET AND PANDEMIC THROUGH INNOVATION AND SERVICE FOCUS

C

olin Fagen, Managing Director of Blue Zebra Insurance, had thought he had seen it all in his 32 years in the industry. He and his team are talking about navigating uncertainty, turning crisis into opportunity and overcoming challenges.

The pace of change that the world has seen in the past two years is unprecedented – global pandemic, massive business and supply chain interruptions, travels bans, talent shortage and extreme weather events. These are only a few of the things that have been shaking the insurance industry. A lot of underwriters responded with reducing capacity and coverage reductions, placing further strain on brokers.

“At Blue Zebra we saw the challenge as the opportunity more than ever to step in and innovate”

Colin Fagen, Managing Director of Blue Zebra Insurance

Digital first is paying off for Blue Zebra as it has built its offering around efficient digital systems, a strong and experienced internal and external facing team and consistent product and system feedback loops to continually adapt and stay ahead of the market. The market is suffering from a combination of insurers with legacy

systems which are not able to be readily changed to meet brokers’ needs while reducing staff that service intermediaries.

This has made insurers review their position with respect to participating in the intermediary market in personal lines products and we believe there will be further reduction in participation over time. The “partners of the past” for brokers may not be the partners of the future.

“The Zebra Lounge has now become a platform of choice for brokers that want to transact in a digitally efficient manner with great product options”

Matt Hodson, Chief Operating Officer, Blue Zebra Insurance

Brokers are looking for digital and efficient transaction capability with new and innovative markets they can trust.

Throughout 2020 and 2021, Blue Zebra has increased its product offering to six essential products to cover the core suite of Personal and Commercial clients, as well as establish its technology as the “platform of choice” for the broker market. BZI has almost 15,000 registered users for its platform and on any day more than 1,000 of them will consistently quote and bind

business on the Zebra Lounge. During 2021, BZI delivered more than 1 million quotes to brokers, leveraging more than 10 million external data points in the process.

“The momentum in our SME offering comes after a strategic and steady expansion of our industries covered and consistently responding to system and product feedback. We see 2022 as a big year for our SME offering and we are ideally placed to support brokers to protect and grow their businesses.”

Mark Polglase, Chief Underwriting Officer (SME), Blue Zebra

Blue Zebra remains committed to support the broker market growth through the hard market conditions. For SME, Blue Zebra has steadily built a presence, moving from a pilot with 20% of industries to now offering cover for up to 80% of Australian small businesses.

By responding to broker and industry feedback about system, product and coverage, BZI is now well placed to deliver on its bold plans for SME insurance. This will include participation on the Steadfast Client Trading Platform later this year.

NIBA.COM.AU / 9

NIBA / Member Benefits

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

“NIBA membership is an essential part of demonstrating your commitment to maintaining professional standards and qualifications. Being a NIBA member also provides the platform for advocacy, training, and collaboration with other likeminded professionals. There is an ever-increasing demand for our profession to demonstrate to clients our knowledge, expertise, and experience. There is no better way to do this than being a QPIB with NIBA.” TONY VENNING Managing Director, Crucial Insurance and Risk Advisors

WELCOME TO NIBA NIBA is thrilled to have the following new Principal member on board: • Australian Broker Management Pty Ltd – SA

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

NEWS / Industry Bulletin

EUROPEAN UNION PRIVACY LAW UPDATES

T

his is a general update to remind insurance brokers of the European Union (EU) General Data Protection Regulation (GDPR) requirements which came into effect in 2018 and a recent decision impacting the previous ‘US Privacy Shield’ certain entities could rely on.

GDPR BACKGROUND

By way of background, the GDPR requirements are in effect privacy obligations, similar in parts to those under the Australian Privacy Act 1988 (Cth).

The GDPR applies to the data processing activities of businesses, regardless of size, that are data processors or controllers with an establishment in the EU. Generally speaking, a controller says how and why personal data is processed and a processor acts on behalf of the controller. Where a business has ‘an establishment’ in the EU, activities of the business that involve processing personal data will need to comply with the GDPR, regardless of whether the data is actually processed in the EU. The GDPR also applies to the data processing activities of processors and controllers outside the EU, regardless of size, where the processing activities are related to: • offering goods or services to individuals in the EU (irrespective of whether a payment is required); or • monitoring the behaviour of individuals in the EU, where that behaviour takes place in the EU. Insurance brokers can refer to the OAIC guidance on these requirements for Australian entities for further information.

The OAIC provides the following examples of Australian businesses that may be covered by the GDPR: • an Australian business with an office in the EU • an Australian business whose website targets EU customers for example by enabling them to order goods or

• •

services in a European language (other than English) or enabling payment in euros an Australian business whose website mentions customers or users in the EU an Australian business that tracks individuals in the EU on the internet and uses data processing techniques to profile individuals to analyse and predict personal preferences, behaviours, and attitudes.

RECENT DECISION AFFECTING EU-US PRIVACY SHIELD

On 16 July 2020, the European Court of Justice issued its judgement in the case of Data Protection Commissioner v Facebook Ireland and Maximillian Schrems (Schrems II case).

The decision in the Schrems II case has impacted on US-based entities in particular (and in the case of locallybased insurance brokers that are USowned, in most cases their subsidiaries) who previously relied on the ‘EU-US Privacy Shield’ which allowed companies to self-certify their data practices for the purposes of GDPR adequacy.

The Schrems II case ruled that the EU-US Privacy Shield is inadequate and standard contractual clauses (SCCs), by which the sender and recipient of data agree that their data processing meets GDPR standards should now instead be used (which should have been the case in any event for Australian based insurance brokers that are non-US owned entities).

Some countries have been determined by the EU Commission to have adequate privacy regimes for the purposes of the GDPR standards, meaning data can flow between such countries without the need for additional requirements, such as SCCs. However, Australia does not have adequacy status and this means that insurance brokers dealing with EU client information will need to

separately agree on SCCs with the data provider/processor.

This has been the case for Australian insurance brokers in any event, unless they are part of a US group and have been relying on the former EU-US Privacy Shield.

Therefore, the main impact of the Schrems II case is on US-owned entities that previously relied on the EU-US Privacy Shield and which should now have their privacy measures aligned with any SCCs or to the GDPR when transferring to, receiving, or collecting personal information on EU individuals to or from the EU. Insurance brokers that deal with EU individuals or transfer data to or from the EU relating to individuals in the EU are therefore reminded to check that their privacy processes meet any applicable EU GDPR requirements, where applicable.

In terms of applicability, Australian businesses of any size may need to comply if they have an establishment in the EU, if they offer goods and services in the EU, or if they monitor the behaviour of individuals in the EU. The issues can be complex and if in doubt, NIBA recommends you seek independent legal advice on your obligations regarding any EU privacy requirements relevant to your business.

IMPORTANT NOTICE

This document is designed to provide helpful general guidance on some key issues relevant to this topic. It should not be relied on as legal advice. It does not cover everything that may be relevant to you and does not take into account your particular circumstances.

It is only current as of the date of release. You must ensure that you seek appropriate professional advice in relation to this topic as well as to the currency, accuracy, and relevance of this material for you.

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

12 / INSURANCE ADVISER FEBRUARY 2022

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NEWS / Industry Bulletin

PRUDENTIAL AND REPORTING STANDARDS

T

he Australian Prudential Regulation Authority (APRA) has proposed updates to the capital and reporting frameworks for insurance in response to the introduction of Australian Accounting Standards Board 17 Insurance Contracts (AASB 17).

After seeking industry feedback on proposals published in November last year, APRA has now released a number of draft prudential and reporting standards aimed at integrating AASB 17 into the insurance capital and reporting frameworks. APRA’s life and general insurance capital (LAGIC) framework and reporting framework based on the current accounting standards will be replaced when AASB 17 comes into effect on 1 January 2023.

Failing to update the frameworks in response to the introduction of AASB 17 would require insurers to maintain two different valuation, actuarial, accounting and reporting systems, and might result

in unintended and unnecessary changes to capital levels. APRA is also updating other aspects of LAGIC, which has not been substantively reviewed since it was implemented in 2013.

APRA’s approach to integrating AASB 17 into APRA’s capital and reporting frameworks is based on the following principles: • maintain the resilience of APRA’s capital and reporting frameworks; • not seek to generally increase or reduce capital levels; • minimise the regulatory impact for industries; and • align the frameworks to AASB 17 where appropriate.

For the capital framework, the majority of the existing requirements for the regulatory capital calculation for general insurers and life insurers will be maintained. For the reporting framework, APRA has confirmed that insurers will be able to use the AASB 17

accounting policies and principles to report financial statement information to APRA. Additional data requirements are proposed to ensure that APRA continues to have appropriate data for capital assessments and profitability monitoring.

The proposals are also relevant for private health insurers, given APRA’s intention to align the private health insurance capital framework to LAGIC. Given the close linkages, private health insurers should also refer to APRA’s review of the private health insurance capital framework consultation.

Consultation on the draft standards is open until 31 March 2022 and APRA intends to release the final standards in the second half of 2023.

Copies of an information paper, a more detailed response paper to last November’s consultation, and draft capital and reporting standards are available on the APRA website (www.apra.gov.au/new-accountingstandard-–-aasb-17-insurance-contracts).

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

14 / INSURANCE ADVISER FEBRUARY 2022

COMMUNITY / #NIBA2021

YOUR GUIDE TO THE 2021.2 NIBA CONVENTION Join us at the 2021.2 NIBA Convention this month for first-hand exclusive insights, exciting networking opportunities, and word-class speakers.

MELBOURNE

8 FEBRUARY 2022 CROWN MELBOURNE, 8 WHITEMAN STREET, SOUTHBANK PRESENTATION AND SPEAKER HIGHLIGHT Details of one presentation and speaker are outlined below.

Meet the key players from the regulatory environment: Insurance Broker Code Compliance Committee (IBCCC) – Oscar Shub, Chairperson, IBCCC: Oscar Shub has been appointed to the position of Independent Chair of the Insurance Brokers Code Compliance Committee (IBCCC), effective January 2022.

His presentation will include an overview of the current work undertaken by the IBCCC in monitoring compliance with the 2014 Insurance Brokers Code of MELBOURNE

Practice (the Code), as well as a snapshot of what lies ahead.

He will address current challenges and opportunities faced by the insurance broking sector. This will include risk areas identified via the 2020 breach and complaints data which was self-reported by Code subscribers to the IBCCC. Oscar will also address the work ahead for the upcoming transition to and implementation of the revised Code which will become effective this year. This includes work regarding governance arrangements, review of operational procedures and providing guidance to Code subscribers to improve compliance.

For full details of all speakers, please visit www.niba.com.au/convention.

TOPIC SPEAKER

8-FEB-22

1:00pm – 3:00pm Welcome from the Master of Ceremonies Jordana Borensztajn (AEST) Future of Financial Services Regulation Dr. Rhys Bollen, Senior Executive Leader, Insurers, Australian Securities and Investments Commission (ASIC)

Meet the key players from the regulatory environment: Dr. Rhys Bollen, Senior Executive Leader, Insurers, ASIC

Australian Securities and Investments Commission (ASIC) Meet the key players from the regulatory environment: Emma Curtis, Lead Ombudsman Insurance, AFCA Australian Financial Complaints Authority (AFCA)

Meet the key players from the regulatory environment: Oscar Shub, Chairperson, IBCCC Insurance Broker Code Compliance Committee

Working practices post COVID-19, an HR perspective David Thompson, Principal, Hunt & Hunt Lawyers

Working practices post-COVID-19 Mark Carter, Presenter, Author, Trainer, Coach, Igniting Human Potential 3:00pm – 5:00pm Exhibition hall open 5:00pm – 7:00pm Networking drinks in the exhibition hall

NIBA.COM.AU / 15

COMMUNITY / #NIBA2021

ADELAIDE 11 FEBRUARY 2022, ADELAIDE CONVENTION CENTRE, NORTH TERRACE, ADELAIDE PRESENTATION AND SPEAKER HIGHLIGHTS Details of some of the presentations and speakers are outlined right. For full details of all speakers, please visit www.niba.com. au/convention

ADELAIDE

President’s Address and a new Insurance Brokers Code of Practice: NIBA President Dianne Phelan will provide her perspective on the current environment and the NIBA strategic priorities. Dianne Phelan and NIBA CEO Philip Kewin will unveil the new Insurance Brokers Code of Practice and what this means for Brokers.

State of the Industry – John Trowbridge: This presentation will be based on an independent investigation and report prepared for the ICA last year and will explain concepts of affordability, availability, market failure, and government intervention in insurance markets. It’ll outline 16 options that are not mutually exclusive for responding to questions of affordability and availability and will discuss the report’s 13 recommendations.

TOPIC SPEAKER

7-FEB-22

9:00am – 11:00am Welcome from the Master of Ceremonies ACDT NIBA President’s address Dianne Phelan, President, NIBA

Introducing technology to streamline claims Jake Carter, Head of Forensic Accounting, Sedgwick

State of the Industry 2021 John Trowbridge

Panel discussion on the State of the Industry Dianne Phelan, John Trowbridge, Andrew Hall, Philip Kewin, facilitated by Dallas Booth

2022 General Insurance Remuneration and the Code of Practice Dianne Phelan and Philip Kewin 11:00am – 1:00pm Exhibition hall open

PERTH 14 FEBRUARY 2022, CROWN PERTH, GREAT EASTERN HIGHWAY, BURSWOOD PRESENTATION AND SPEAKER HIGHLIGHT Details of one presentation and speaker are outlined right. For full details of all speakers, please visit www.niba.com.au/convention

PERTH

Keynote speaker – Professor Fiona Wood AM is the Director of the Burns Service of WA and leads multi-disciplinary clinical and research teams at Perth Children’s Hospital, Fiona Stanley Hospital, and is the Director of the Fiona Wood Foundation. In the insurance industry, as in health, there is an expectation from the community. People expect

high levels of professionalism, integrity, honesty, good information, and processes that are well-governed. Fiona will give her perspectives on how to approach challenges to come up with solutions, how we can learn from the past to move forward and meet community expectations. Fiona’s mantra – “Learn from today to make tomorrow better”.

TOPIC SPEAKER

14-FEB-22

1:00pm – 3:00pm Welcome from the Master of Ceremonies Christina Morrissy AWST Keynote – Professionalism + Resilience = Opportunity Professor Fiona Wood

Insurance brokers and workers’ compensation system Chris White, Workcover WA, CEO; Rebecca Harris, Workcover WA, General Manager; Ian Maybury, Lockton, National Manager

COVID-19 related Business Interruption claims and test cases Adam Squire, Head of Claims, Gallagher & Ken Wise, Managing Principal, Marsh 3:00pm – 5:00pm Exhibition hall open 5:00pm – 7:00pm Networking drinks in the exhibition hall

THE MARKETPLACE

#NIBA2021 will bring the Convention Expo Hall experience across Australia, presenting a great opportunity to learn about the latest cutting-edge products and services. Some of the wonderful businesses exhibiting at the conference include: • Allianz • Ansvar • ANZIIF • ARAG • Axis Underwriting • Back2work solutions • BAIS • Berkley Insurance • BizCover • Blue Zebra Insurance • BOQ Finance • CGU • CHU • Community Underwriting • DriverCare • Dual • Elantis Premium Funding

• Executive Mentoring • Financial Education • FTA Insurance • Gallagher Bassett • GT Insurance • HMIA • Hollard • iQumulate • Kaplan Professional • Liberty Specialty Markets • Lion Underwriting • Manser Fire and Marine • Martinminett • Mecon Insurance • MSM • NSRA • Next Health

16 / INSURANCE ADVISER FEBRUARY 2022

• NTI • OrganiseIt • Pointinsurance • QBE • Sedgwick • SLE • SUU • Steamatic • Sura • Tego • The Barn • UAA • Vero • Virtual Broking • We are_savvy • Ydr • Zurich

SPONSOR OR EXHIBIT AT #NIBA2021

To discuss sponsorship and exhibition opportunities, please contact us:

Helen McGowan

Waldron Smith Management T: 03 9645 6311 E: helen@wsm.com.au

Tony May

NIBA National Advertising Sales Manager T: 02 9459 4320 M: 0401 485 188 E: tmay@niba.com.au

BRISBANE 16 FEBRUARY 2022, SOFITEL BRISBANE CENTRAL, 249 TURBOT STREET, BRISBANE PRESENTATION AND SPEAKER HIGHLIGHT Details of one presentation and speaker are outlined right. For full details of all speakers, please visit www.niba.com.au/convention

BRISBANE

Storms, floods, fires: insurance for weather-related incidents – Stephen McShane: Not all property risks reach the quote stage, making it critical for insurance brokers to effectively engage with underwriters and provide the information necessary to consider the risk.

In this session, Northern Region Technical Property Specialist Stephen

McShane will share key tips and pointers to educate brokers on what underwriters look for in a submission. Important details such as timing, history, surveys, risk management, client motivation, and communication will be explored in detail to help insurance brokers present risks with the best possible approach to ensure the best possible outcome for the insured.

TOPIC SPEAKER

16-FEB-22

1:00pm – 3:00pm Welcome from the Master of Ceremonies Bill Mcdonald AEST Storms, floods, fires: insurance for weather related incidents Ryan Crompton, Risk Frontiers

incidents | on the nature and trends on major risks from an insurance perspective

Storms, floods, fires: insurance for weather related incidents David Henderson Chief Engineer, Cyclone Testing Station,

incidents | on mitigation and resilience measures for domestic, James Cook University

strata and SME

Storms, floods, fires: insurance for weather related incidents Stephen McShane, Northern Region Technical Property Specialist, CGU

Northern Australia Cyclone reinsurance pool: Presented by Suncorp perspective from insurers

Northern Australia Cyclone reinsurance pool: Steven Hill, Qld Director, Capital Innovation Insurance Group

perspective from brokers interview with Ron Bellert, Director, North Queensland insurance brokers 3:00pm – 5:00pm Exhibition hall open 5:00pm – 7:00pm Networking drinks in the exhibition hall

SYDNEY 21 FEBRUARY 2022, INTERNATIONAL CONVENTION CENTRE SYDNEY, 14 DARLING DRIVE, SYDNEY PRESENTATION AND SPEAKER HIGHLIGHTS Details of one presentation and speaker are outlined below. For full details of all speakers, please visit www.niba.com.au/convention

SYDNEY 21-FEB-22

Keynote speaker – Chris ‘Boo’ Boucousis is a big believer in keeping your head in the clouds and your feet on the ground. Literally.

A former fighter pilot, a business founder, and entrepreneur, Boo will share the lessons he learned in the cockpit and applied in business to always be the best and to dig deep when the going gets tough. He has personally transferred

the skill of turning his jet at Mach 2.0 to his first successful business venture, a humanitarian business turning over $200 million within four years. Boo continues to apply his fighter pilot mindset to assure success. Today he defines his success by the success of those he works with. His keys to success? Doing the small things right and never giving up.

TOPIC SPEAKER

1:00pm – 3:00pm Welcome from the Master of Ceremonies Andrew Klein AEST Personal advice vs Financial advice: The Future of Mark Radford, Dianne Phelan, Ward Dedman Insurance Broking Closing Keynote Chris ‘Boo’ Boucousis Convention Close Phil Kewin, NIBA 3:00pm – 6:00pm Exhibition hall open 7:00pm – 11:00pm NIBA 2021.2 QBE Convention Dinner Theme: ‘Celebration’ – It’s been a long challenging 2 years and it’s Location: Cockle Bay Room, ICC Sydney time to bring the celebrations back. Join us for dinner to celebrate Dress: Business/lounge suit or cocktail dress the beginning of bringing the party back. A memorable evening awaits Cost: $220pp including GST, tickets to be purchased in addition you offering fantastic surroundings, food, wines, and entertainment

to the registration fee and available to Sydney attendees that you won’t want to miss. Bring the Convention to a close as well

as well as 2020 and 2021 by celebrating on all levels.

WITH THANKS TO OUR PRINCIPAL SPONSORS

NIBA.COM.AU / 17

PROFESSIONALISM / AFCA Case Study

OBTAINING SUFFICIENT EVIDENCE This determination involved an alleged failure of an insurance broker to ensure that the complainants’ claims for a broken washing machine and a ruptured solar hot water unit (in respect of a home and contents policy) were accepted by the insurer, where sufficient proof of the cause of the damage was not provided.

Key lessons

The insurance broker was successful, but key lessons from the determination are: • consider expressly warning clients not to replace damaged items without obtaining sufficient evidence of the cause of damage, as this can result in an insurer’s rejection of a claim; • act promptly in advising insurers of a claim once made (as the broker did in this case); • if an insurer provides evidence of damage supporting denial of a claim, the client must then counter this, and consideration should be given as to how this can be done; • before withdrawing a claim, obtain clear instructions to do so and evidence of this from the client; • generally, a broker will not be responsible for unfavourable findings of an unrelated party appointed by an insurer, such as a loss adjuster; • consider very carefully whether it is appropriate to tick any insurer form regarding the ‘vulnerability’ status of a client, if this is wrong, it may have an impact; and • a broker will not be liable to compensate a client for legal costs incurred unless their actions or lack thereof cause the client’s loss.

Background facts

The complainants’ washing machine stopped working and two months later they advised the insurance broker, who immediately lodged a claim with the insurer. The insurer asked for an electrician’s report as to why the washing machine had stopped working, but the complainants were unable to provide one as they had replaced the washing machine and disposed of the old one.

The broker later informed the insurer that the complainants had decided to withdraw the claim, however, the complainants stated that they had not instructed the broker to withdraw the claim but acknowledged they had decided not to pursue it.

18 / INSURANCE ADVISER FEBRUARY 2022

Later that same year, the complainants informed the broker that their solar hot water unit had ruptured, and the broker lodged a claim with the insurer the subsequent day.

The insurer appointed a loss adjuster who reported that the complainants had said that they noticed water leaking from the solar hot water unit and had contacted a plumber to investigate.

The complainants provided a plumber’s invoice dated 24 September 2020 for the replacement of a solar hot water unit. The invoice did not include a reason for the replacement of the old unit. Both the loss adjuster and the broker contacted the plumber, but the plumber was unable to give a reason as to why the unit had ruptured or how old it was.

The loss adjuster inspected the ruptured unit and concluded that it had ruptured due to ‘normal gradual deterioration’. Based on this report, the insurer denied the complainants’ claim as the policy had provided an exclusion for such damage. The complainants said that the loss adjuster had only spent a few minutes inspecting the hot water unit and that the report was of a poor standard. However, the complainants did not produce evidence to refute the findings.

The claim form included a field labelled ‘vulnerability client?’ and the broker entered ‘no’ in this field. The complainants alleged the broker should have entered ‘yes’, because they were elderly and had difficulty communicating in English, and that if the insurer was told they were ‘vulnerable’, it may have influenced the loss adjuster’s assessment of the hot water unit.

The complainants appear to have sought compensation from the broker on the basis that the broker should have taken steps to convince the insurer to pay the washing machine and solar panel claims including: • convincing the insurer that the damage to the complainants’ hot water system was not caused by gradual deterioration; and • identifying the complainants as ‘vulnerable’ which may have influenced the loss adjuster’s assessment of the hot water unit.

The complainants were represented by a lawyer and sought to recover their legal costs.

BY MARK RADFORD

AFCA decision

Principal, Radford Lawyers

AFCA held in favour of the broker, finding that there had been nothing that the broker could have done to get the insurer to accept the complainants’ claims as: • the complainants had only informed the broker about the broken washing machine after they had disposed of it, and so there was nothing the broker could have done regarding the complainant’s inability to obtain an expert report as to why it had broken.

• although the complainants had not explicitly instructed the broker to withdraw the claim regarding the washing machine, the complainants had said that they had decided not to pursue the claim any further.

• the complainants provided no evidence to refute the loss adjuster’s findings, and even if the findings of the loss adjuster regarding the hot water system were incorrect in respect of the ‘normal gradual deterioration’ of the solar hot water unit, the broker did not influence the loss adjuster.

• in terms of vulnerability, the loss adjuster had conversed with the complainants for half an hour at the complainants’ residence and the loss adjuster would have been aware of the complainants’ supposed vulnerability.

As this had not appeared to influence the report, there was no reason to think that the loss adjuster’s findings would have changed, even if the broker had marked ‘yes’ in the ‘vulnerability client’ field.

AFCA noted that the broker had acted for the complainants for more than 20 years and the complainants acknowledged that they never had any issues with the broker’s service prior to the two aforementioned claims.

The complainants had made two previous insurance claims, and with the broker’s assistance, both claims were accepted.

AFCA also refused to require the insurance broker’s insurer to contribute to the complainants’ legal costs, noting it would be unfair given the circumstances.

PROFESSIONALISM / Code of Practice Update

INSURANCE BROKERS CODE OF PRACTICE UPDATE The NIBA Board has approved the independent reviewers final draft of the new Insurance Brokers Code of Practice (the Code).

T

he Code, which will be officially launched in March, has been the culmination of extensive engagement with members, consumer groups, regulatory bodies, and other industry groups.

The Code is designed to go beyond the law, setting higher standards for the industry and providing additional protections to broker clients.

The Code is built around three core principles, professional commitment, ethical behaviour, and transparency and accountability. These principles complement brokers’ existing duty to act in the best interests of the client.

Professional commitment

The Insurance Brokers Code of Practice represents the industry’s commitment to professionalism. A key part of the new Code is ensuring that those who provide services to clients have the appropriate qualifications, experience, and training to support clients through the insurance journey.

This also means ensuring that staff have the necessary skills to identify vulnerable clients and respond to complaints when they arise.

Ethical behaviour

Ethical behaviour is at the core of most industry Codes of Practice. The Insurance Brokers Code of Practice is no exception.

The Code assures clients that their broker will act honestly and with integrity in all dealings and will comply with all relevant laws and obligations, including those set out in the Code.

Transparency and accountability

Much of the work done by regulators post-Royal Commission has been aimed at improving transparency within the financial services market. The Code has introduced a number of new obligations aimed to improve transparency and accountability.

“The Code assures clients that their broker will act honestly and with integrity in all dealings and will comply with all relevant laws and obligations, including those set out in the Code”

While brokers already have a duty to act in the best interest of their clients, increasing transparency reassures clients that there are no hidden conflicts, and makes the value brokers provide to their clients even clearer.

While the Code will be officially launched in March, it will not take effect until 1 November 2022. Given the significant changes made to the Code, NIBA has also prepared an accompanying guide to help subscribers implement the new obligations.

We are incredibly proud of the work that has been done to finalise a new Insurance Broking Code of Practice. We look forward to sharing the Code with you next month.

NIBA.COM.AU / 19

PROFESSIONALISM / Digital marketing

MAXIMISE YOUR SOCIAL MARKETING PLATFORMS IN 2022

The last two years have seen a big uptick in online activity and turned even the biggest technophobes into competent mouse drivers. This means social media activity has an even better chance of helping your business grow this year.

I

f you’ve been publishing on social media for a while, the new year is a great time to audit your results, refine, and update your approach. So, what should insurance brokers being doing to make the most of social media? Spoiler – it is not just about getting likes!

Here are my top five tips: 1. Focus on the right channels – have a plan and focus on the channels that will work best for your business. For example, LinkedIn is great if you are targeting specific industries and larger organisations (it’s really good at finding the right individuals to prospect too) and Facebook is better if you are chasing smaller, family businesses in specific geographical areas.

2. Build your audience first – if you do not have a company/personal following of 200+ (ideally more) focus on growing your audience before publishing lots of content. According to data provided by LinkedIn, pages with at least 150 followers typically get five times more page views than those that don’t. To boost followers, you could ask your employees to follow the company, incentivise your clients with a prize/competition, or advertise with a reason to follow you.

3. Update your profiles – when was the last time you looked at your company/

personal profile, especially on Linkedin?

Did you know that for people selling a complex service, like insurance broking, prospective clients are more likely do an online search focusing on your name, rather than the business name? Top of the Google search will likely be your LinkedIn profile (test it). You may have spent lots on your website, but isn’t it about time that you made sure your LinkedIn profile is set up to attract opportunities? Write your profile content from the client’s perspective. So, less, “I’ve been an insurance broker for 20 years,” and more, “I help business owners navigate the insurance small print to keep their businesses protected.”

4. Educate, don’t just sell – the rule of thumb is 80% education, 20% sales. Video content gets much more traction too – if you are using LinkedIn, upload the videos directly rather than sharing a YouTube link, as LinkedIn will give it more prominence.

Look to create engaging content using images, interesting facts, relevant alerts/ information and insights about your team.

Aim to post regularly, not just when you ‘get a moment’. With your sales posts, offer more than just a free quotation, think about an event, gift or diagnostic type survey.

5. It’s not about likes – many business owners waste far too much time on

“LinkedIn is better if you are targeting specific industries and larger organisations, and Facebook is better if you are chasing smaller, family businesses” 20 / INSURANCE ADVISER FEBRUARY 2022

NICK HILL

Director of Hillster Marketing

social media just seeking the ‘buzz’ when a stranger likes a post, and nothing else. Building your networks, engaging authentically, and responding to comments with your audience is important, but never forget you are using social media to have a meeting, speak to people, add people to your prospect database and ultimately get paying clients!

If you’ve covered the basics, then it’s time to start looking at some of the new technology options that are constantly being developed. Examples include live streaming an event/industry update (LinkedIn live), book appointments direct with you online (calendly.com), schedule posts to multiple channels using Hootsuite or working with someone who can help you make the most of your social channels.

Lastly, social media can suck up a huge amount of resources, often with little return. You need to make sure you have a targeted plan and integrate it with your broader online and offline activity. This will mean you devote the appropriate resources and have the best chance of boosting your business in 2022.

Need a hand? Nick is offering a free 30-minute social media diagnostic session for all insurance industry organisations.

Nick Hill is the Director of Hillster Marketing with 20 years’ experience of marketing within the insurance industry.

Hillster Marketing is a Partner Service Provider for Steadfast and works with companies from all areas of the insurance industry. He can be contacted on 0419 371 018 or email nick@hillster.com.au.

YOUNG BROKER OF THE YEAR Empowering emerging talent to become tomorrow’s insurance leaders for over three decades

Help us recognise the amazing young talent our industry has to offer Nominate today for the 2022 NIBA Young Broker of the Year Award. Focus on high achievers in your business and submit their names for this prestigious award that celebrates their commitment to the insurance broking profession.

Take a few minutes to nominate your choice on the NIBA website: niba.com.au/awards

COVER STORY / The Ultimate Career Move – the 2022 NIBA Awards

ultimat career move The

Recent winners of the Stephen Ball Broker of the Year and the Warren Tickle Young Broker of the Year awards reflect on the impact on their careers and why taking part is its own reward.

BY MICHELLE DUNNER

22 / INSURANCE ADVISER FEBRUARY 2022

A

e

r

n ‘unrivalled platform’ for raising your profile. The ‘highest accolade’ in our industry. A ‘mark of integrity’. These are just some of the sentiments expressed by previous winners of NIBA’s Stephen Ball Broker of the Year and the Warren Tickle Young Broker of the Year awards.

With the 2022 awards now open for nomination, there was a clear consensus among recent winners. If you have the opportunity to participate, grab it with both hands to drive not only some very gratifying personal recognition, but heightened business and career opportunities.

Kate Martin, the 2020 Warren Tickle Young Broker of the Year, is a Senior Sales Executive at Marsh in Brisbane. “Writing the personal statement for the awards and doing that level of reflection wasn’t easy, but what came through is that what we do is all about service – not just to clients, which is at the core, but that insurance services the whole community. It makes the world go round.”

“There are three reasons why I would recommend going through the process. The first is obvious – it’s such a good opportunity to acknowledge someone’s awesomeness.

Secondly, it’s also important for people to recognise their own abilities and this is a good time to take stock.”

“And finally, this is an unrivalled platform for getting your name out there. Since I won, people have introduced themselves and they already know who I am, which has blown me away a bit!

It can be hard for young brokers to get that kind of recognition, and I would have no hesitation in putting up someone I think deserves it.

Even without progressing through to further stages, it’s a thought provoking and valuable exercise for both the nominator and nominee.”

“I was very humbled to receive the award, but it’s not a reflection just of me as an individual, but more our team and our culture.”

MITCH WIGHT, 2021 WARREN TICKLE YOUNG BROKER OF THE YEAR WINNER

“This is an unrivalled platform for getting your name out there. Since I won, people have introduced themselves and they already know who I am.”

KATE MARTIN, 2020 WARREN TICKLE YOUNG BROKER OF THE YEAR WINNER

Mitch Wight, the 2021 Warren Tickle Young Broker winner agrees. “As I went through the process, I had no preconceptions and didn’t think for a moment I’d win in Victoria, let alone the national Warren Tickle Young Broker of the Year award. It was pretty surreal.”

A Senior Broking Executive at Integral Insurance Services in Geelong, Mitch said the recognition reflects client confidence of being ‘trusted professionals’. “It adds to our integrity; I was very humbled to receive the award, but it’s not a reflection just of me as an individual, but more our team and our culture, and the way we go about things.”

“Now, at the age of 31, I’m in a position where I’m mentoring other team members and contributing to their development. As I see the way they’re progressing, I’d have no hesitation nominating them in the future.”

NIBA.COM.AU / 23

COVER STORY / The Ultimate Career Move – the 2022 NIBA Awards

“One of the most surprising things about taking part was how excited some of my clients were. One kept calling me regularly for updates.”

CAITLIN CARSON, 2019 WARREN TICKLE YOUNG BROKER OF THE YEAR WINNER

Professional development is a major theme underpinning Warren Tickle Young Broker of the Year nominations. The 2019 honouree, Marsh’s Caitlin Carson, parlayed her win into completing a Women’s Leadership Program at the Yale School of Management. The Queensland winner that year, Caitlin is now based in Melbourne as the State Practice Leader FINPRO. She said the awards process entails getting out of your comfort zone. “We’re used to talking about what we do in a professional sense, but it’s quite another thing to talk about yourself, so you have to learn to put yourself out there.

“One of the most surprising things about taking part was how excited some of my clients were. One kept calling me regularly for updates; I’d been helping him with a particularly challenging regulatory investigation and he included that work as part of my reference.”

“I would most definitely encourage my colleagues to take part in the awards.

It’s a great opportunity regardless of the outcome. I found it valuable to observe what areas I could improve upon, including giving back to the industry community by mentoring colleagues and other pursuits.”

24 / INSURANCE ADVISER FEBRUARY 2022

“The feedback from clients alone made it all very worthwhile. I couldn’t recommend taking part enough.”

CRAIG ANDERSON, 2018 WARREN TICKLE YOUNG BROKER OF THE YEAR WINNER In 2018, Austbrokers ABS Divisional Manager SME Schemes and Affinity Craig Anderson took out the Warren Tickle Young Broker of the Year award. “I’d been in the industry about 15 years, but having seen the calibre of people put up for these things, I didn’t think I was at that level. Going through the process was my first real indication that I was on the right track. The feedback from clients alone made it all very worthwhile.

I couldn’t recommend taking part enough.”

Also the Chair of NIBA’s NSW Young Professionals Committee, Craig said the nomination gave him confidence that he was an emerging leader. “I jumped at the chance to manage people and I now have a team of nine. It’s great to have such a good young team of brokers to mentor and train and work alongside.”

“The feedback and recognition has gone a long way in adding to our credentials when we compete against larger brokers.”

TONY VENNING, 2021 STEPHEN BALL BROKER OF THE YEAR WINNER With over 20 years’ experience in Australia and internationally, Tony Venning took out the 2021 Stephen Ball Broker of the Year award, describing it as the most prestigious honour in the industry. After establishing Crucial Insurance in Queensland in 2013, Tony said the nomination was a great way to reflect how his business was ‘punching above its weight’.

“We have a team of seven, with a base on the Sunshine Coast, but have clients across Australia, including listed companies.

Being such a small team, it was a massive commitment to go through the process.

Two of us did it – our account manager Alishia Oliver also won the Queensland Young Broker of the Year award. The feedback and recognition has gone a long way in adding to our credentials when we compete against larger brokers.”

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COVER STORY / The Ultimate Career Move – the 2022 NIBA Awards

“I think a key aspect of going through this process is that you need to be ready to give back to the industry and help create the future generation of advisers.”

LISA CARTER, 2019 STEPHEN BALL BROKER OF THE YEAR WINNER

“This is a very rewarding process because through the participation, it really benefited my staff.

It made us reflect on what we’ve achieved and where we want to go.”

KIM GILBERT, 2018 STEPHEN BALL BROKER OF THE YEAR WINNER

The 2019 Stephen Ball Broker of the Year, Clear Insurance’s Lisa Carter has used the recognition from her award to amplify the role of women in the industry. “I’m a mum of three girls and the eldest of four sisters.

I’m passionate about improving gender balance in our industry and challenging the status quo from transactional broking to specific risk advice.”

“A lot of great women don’t have the confidence to step up into a client-facing or management role, but I think we

bring something extra to the client relationship as we are genetically nurturers and carers. Having said that, I have fantastic male colleagues in the industry and have also been mostly mentored and championed by men.”

“If you love what you do, you shouldn’t be afraid to put your hand up and be recognised. I think a key aspect of going through this process is that you need to be ready to give back to the industry and help create the future generation of advisers.”

The founder of Zenith Insurance Services in WA, Kim Gilbert, said his 2018 Stephen Ball Broker of the Year award reflects his long held belief of helping everyone connected with his business to push their horizons. “If you ‘talk the talk’ you need to ‘walk the walk’. This is a very rewarding process because through the participation, it really benefited my staff. It made us reflect on what we’ve achieved and where we want to go. I was able to demonstrate that it doesn’t matter where you start in life, it’s the journey. I think the award was a validation of what we’ve always tried to do with our people and that’s foster their own development – with a focus on commonsense and communication skills that will always steer you right in the broking profession.

“I think senior people in broking have a responsibility to promote our industry and encourage people to reach the highest standards. To do that, we need to lead by example and that’s why I got involved in the awards. They also offer the ability to network with industry people and learn other perspectives.”

Nominations for the 2022 round of NIBA’s Broker of the Year award and Young Broker of the Year award are now open. Anyone in the industry can nominate a top professional in the insurance broking industry. Simply register your nomination by completing the form at www.niba.com.au/niba-awards/ by 28 February 2022.

26 / INSURANCE ADVISER FEBRUARY 2022

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FEATURE / Driving with Intelligence

WITH 28 / INSURANCE ADVISER FEBRUARY 2022

DRIVING Technology in vehicles can help driver safety significantly.

But training is the key to reducing driver incidents and reducing fleet claims.

BY MARTIN WANLESS

INTELLIGENCE NIBA.COM.AU / 29

FEATURE / Driving with Intelligence

HO IS W R E A DRIV H A GOOD E B S WAY NCED WIT D DAY L A N A BA NT” E CA ERIE “THERRWISE EXP WHO HAS LE ACCIDE ANCE B D OTHE G RECOR NAVOIDA ICER, ATL INSUR U N DRIVI CURS AN XECUTIVE OFF E N AND I SMITH, CHIEF AN – ALL

T

electronic stability – are common too in most heavy goods vehicles.

“Used correctly, the technology will reduce accidents,” says Steven Hamilton, Executive Director at Fleetsure.

But their mere presence alone isn’t something that automatically leads to an increase in safety.

“We’ve still got that human element in there to contend with,” says Allan Smith, Chief Executive Officer of ATL Insurance.

“There is some wonderful technology out there. But we’ll need to gather data and compare loss profiles across businesses with and without various technologies to see the real impact that technology has on improving safety and lowering accident rates.

“There can always be a driver who is otherwise experienced with a good driving record who has a bad day and incurs an unavoidable accident.”

VEHICLE TECH – NOT AN EXCUSE TO ABDICATE RESPONSIBILITY

Reducing the number of those bad days, however, is key to reducing incidents – but from our own experiences driving newer vehicles, it’s easy to appreciate how reliant on technology you can become. However, the technology is only effective if it’s used to supplement driver awareness, not replace it.

And this is why training and education is a fundamental part of any fleet business’s risk mitigation strategy.

“I believe the best course of action for businesses would be to implement robust training and onboarding programs for their drivers,” says Needs.

“Once onboard, yearly refresher courses will ensure that skills do not decline.

Utilising services such as defensive driving courses is an option to explore further to maintain or even upskill drivers.”

GT Insurance’s Chief Executive Officer, Tony Dodd says, “Many companies are employing driver trainers who have skills across a variety of vehicles, but also have an understanding of how vehicles are going to react, and what it’s going to do in different scenarios.

“We are really seeing an emergence of driver trainers coming back in. Companies are putting a lot more effort into different methods of training on site, whether it be toolbox training with manufacturers

he global pandemic has shone a harsh light on many things over the past two years – our world’s reliance on transport and drivers included.

With many people left locked down and either unable or unwilling to venture far from their door, demand for the delivery of goods has increased. And that has brought with it a need to recruit an increased number of, often inexperienced drivers.

As we migrate to a ‘living with COVID-19’ state that sees borders reopen and restrictions ease, the volume of traffic on the road will only increase.

“We will see more people on the road in general,” says James Needs, Senior Business Development Manager, Gallagher Bassett.

“For example, they will travel during school holidays, which means congestion increases.

“Pair this with increasing fleets and heavy vehicles on the road, and the 1. The pandemic has resulted in some companies increasing chance of vehicles on the road and recruiting inexperienced drivers. incidents 2. While technology can help improve driver behaviour, it must taking be complemented by a robust training and review program. place 3. Technology, such as facial recognition and telematics, greatly is being used increasingly to provide drivers and employers increases.” with real-time insights into driver behaviour, which can It’s no prompt immediate improvement. surprise, 4.

The reduction in some traffic on the road hasn’t therefore, While technology is helping improve driver safety, it necessarily brought with it a drop in claims. that insurers can also seriously increase the cost of repair. No longer is Gallagher Bassett report as many claims and businesses a bump only a bump. during COVID-19 as pre-pandemic. alike are focusing Whereas in previous years, a small bump may have been on safety. fixed rather inexpensively, today a modern vehicle will “It is imperative that need recalibrating and reprogramming. The technology businesses invest in training that modern vehicle badges house can cost four their drivers and investing in figures alone to replace. The need to attend to the technological advances to improve technology, as well as the physical repair will driver safety,” continues Needs. add significant cost to the claim, which is Safety technology that is included another reason for businesses to in most new cars today – think strive to keep incidents autonomous emergency braking down. systems, lane departure warnings and

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THE EVERINCREASING COST OF REPAIR

30 / INSURANCE ADVISER FEBRUARY 2022

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BEWARE THE PHOENIX

FEATURE / Driving with Intelligence

or training that’s specifically tailored to their different sites, such as unloading requirements.”

Hamilton agrees: “Training staff, as well as regular maintenance programs for vehicles, will help minimise incidents and maximise the effect of technology.”

By running regular training programs, with measurable data and outcomes, companies can help increase driver awareness, improve driving overall, and ultimately help reduce the number of accidents, and consequently the number of claims they are making.

It can also help pinpoint individual drivers who are causing issues.

“We have seen new technologies which track driver behaviour and enable greater coaching and management of drivers with a view to improve safety for drivers and all road users,” says Smith.

Tech can play a part in the education side, too.

Dodd uses the example of facial recognition technology, which while increasingly commonplace, takes risk mitigation up a notch or two.

“These machines detect distractions and fatigue in real time and alert the driver, as well as providing back to base alerts, meaning they’re working in a proactive, preventive manner, as opposed to a reactive manner,” he says.

THE IMPORTANCE OF DATA Another technology that is used increasingly by businesses to improve driver safety is telematics, which identifies mistakes individual drivers make in real time. Typically revolving around accelerating and braking, cornering,

While the high majority of all businesses operate as compliantly as possible, Allan Smith, Chief Executive Officer of ATL Insurance Group, says they see a small number of clients behave in a way that places pressure on broker and insurer systems, including extra resources required to deal with matters relating with non-disclosure, both intentional and unintentional.

“We have seen ‘Phoenix’ businesses close and reopen under different company names,” he says.

“This may be done after a transport company incurs high frequency and quantum of accidents and becomes uninsurable. The same equipment then becomes insured under a new company name with common directors.

“By becoming a ‘Phoenix’ company, previous claims may not be declared in order to secure a new insurance policy as a ‘New Venture’ – ‘No this company has not incurred claims before…’”

Smith says some ways to identify this are:

•

Common directors: conduct a company search for director’s names. This may identify someone as having been a director of other companies described as transport.

• Underwriters can search by registration or VIN to see if they have been quoted or insured before under a different company name.

• Addition of extra insured parties • Whilst this is most often a case of merged businesses or a new shareholder or partner joining the business, care must be taken to understand who the extra parties are and whether they have had previous ownership of transport businesses and previous incurred claims.

• In some cases, this can be a way of a ‘Phoenix’ business reinstating old assets of a previous transport company.

• Careful questioning and disclosure should be sought and presented to the insurer as if this were a new risk.

changing direction and lane changing, these systems give instant feedback to the driver, as well as providing data-based feedback to the business.

Dodd says: “The data businesses can collect about driver behaviour can be recorded and discussed with the driver on an individual basis as opposed to a company basis and taking this approach can be extremely effective.”

By making those conversations factual and individual, rather than generic and theoretical, businesses can have a significant impact on the behaviour of individual drivers and, as a consequence, on the whole of the company.

Getting the education piece marrying up to the tech is critically important

“TEC H DRIV NOLOGY I DRIV NG EXPER IS CREAT ER, T HEIR IENCE FO ING A SAF OTHE PASS ER R MO ENGE R THE T O R – JAM I R STS O ES N E N TH S AND E DS , S EN I O E ROA M AN R B U S I N E D” AGER SS DE , GALL V AGHEELOPME R BAS NT S ET T

32 / INSURANCE ADVISER FEBRUARY 2022

and, done well, can impact on a number of levels.

“Technology is creating a safer driving experience for the driver, their passengers and other motorists on the road,” says Needs.

“Where technology is being implemented by businesses and their fleets, insurers are welcoming these advances and rewarding these businesses by reducing basic excess, increased liability limits and removal of driver restrictions just to name a few.”

THE TRUE COST TO BUSINESS

There are many other benefits to be found in reducing accidents, however.

Every incident requires hours spent on investigation and paperwork, time off work, injuries and, in the worst-case scenarios fatalities.

THE CHANGING FACE OF SAFETY With driver fatigue and distraction major causes of fatal accidents on Australian roads, GT Insurance actively encourages the use of Facial Recognition Technology (FRT).

FRT means inward facing cameras that are specifically designed to detect driver distraction and/or fatigue and provide real time in-cabin alerts.

What are some of the potential benefits of FRT? •

• • • • •

HELPS drivers stay focused and alert ALERTS if the driver is showing signs of fatigue DETECTS if the driver becomes distracted IMPROVES driver habits ASSISTS in compliance with Chain of Responsibility legislation ENHANCES workplace safety practices and culture

Increased safety. Reduced costs.

GT Insurance offers significant additional policy benefits and potential savings to transport Clients and motor vehicle fleet customers who install approved FRT systems in their vehicles.

For eligible customers, these may include: •

• • • • •

REMOVAL of driver restrictions REDUCED basic excess AMENDED age or inexperienced driver excesses ENHANCED replacement vehicle hire INCREASED limit for non-owned trailer liability 3 YEAR vehicle replacement from original registration date

If you're interested in learning more about the potential benefits and savings of FRT, please contact us today or visit our website gtins.com.au Insurance products are issued by Global Transport & Automotive Insurance Solutions Pty Ltd trading as GT Insurance ABN 93 069 048 255 AFS Licence No 240714 as agent for the Insurer Allianz Australia Insurance Limited ABN 15 000 122 850 AFS Licence No 234708. Neither we nor the Insurer provide any advice on this insurance based on any consideration of your objectives, financial situation or needs. Policy terms, conditions, limits, exclusions and underwriting criteria apply. Before making a decision about it please refer to the relevant Product Disclosure Statement or Policy wording available from our website (www.gtins.com.au) or by calling us. A Target Market Determination for each product is available from our website (www.gtins.com.au). If you purchase this insurance, we will receive a commission that is a percentage of the premium. Ask us for more details before we provide you with any services.

FEATURE / Driving with Intelligence

“Operators also lose time from reallocating resources to satisfy contracts and can suffer brand damage as a result of an accident attracting detailed media attention,” says Smith.

“Current shortages of drivers and available equipment can compound the impacts on the business.

Of course, that figure can blow out depending on how the business is managing those incidents. And tech can also play a key role here, too.

“Where a lot of these incidents may only be minor, how does the business manage them effectively and efficiently to minimise disruption?” asks Needs.

“Depending on the size of the business and the size of the fleet, is there a software platform they can utilise at a cost-effective rate?

“In some instances, these platforms come at a significant cost, which means they resort to recording these incidents in outdated systems, often recording them in a simple spreadsheet.

“As a result, it limits the ability to apply an effective risk management

CLAIMS: PAID Steven Hamilton, Executive Director of Fleetsure, shares three unusual paid claims examples from the vehicle world.

“A truck was badly damaged after hitting a cow on the road in the middle of the night. The driver wasn’t expected to cut off the dead animal’s ear with a pair of pliers, but the tag did help identify the farmer who owned the cow. A recovery can be made against the farm’s public liability policy if the fence was down, unrepaired or a gate left open, but probably not if the cow simply jumped the fence!”

“A driver fell asleep and rolled a truck – blaming the melodic chirping of the 50,000 chickens he was towing. The owner suggested turning the radio up in future, but stricter adherence to driving hours and rest breaks is a better course of action.”

“The tipper body of a truck extends and takes out the roof of an airport tunnel. Allegedly the tipping body just suddenly extended, the driver did not accidentally knock the (admittedly badly placed) on/off switch while lighting a cigarette.

Still, claim paid.”

process and a potential lack of visibility to the original cause. So, when it comes to renewal each year and these businesses begin shopping their policies around, it can result in difficulty placing the policy and difficulty for the insurer in applying an appropriate risk management process that could improve their claims performance.”

For brokers, there’s a large opportunity to work with fleet managers to understand their strategies to reduce accident rates.

From safety and training programs to feedback and incident management, there are many aspects to consider.

And, with traffic volume on roads increasing consistently, the need is only going to get greater.

digital transport underwriting agency

Transport Package available for 10 Powered Units includes GIT & Liability

Open for business 24/7 with self service for our Broker Partners via Sunrise Australian Transport and Logistics Insurance Group Pty Ltd | ABN 33 133 273 631 | AFSL 333234 34 / INSURANCE ADVISER FEBRUARY 2022 Products underwritten by The Hollard Insurance Company Pty Ltd |ABN 78 090 584 473 |AFSL 241436 Please read and consider the relevant Product Disclosure Statement and Target Market Determination before you make any decisions about insurance products.

Covered by Orange

1300 667 178

www.atlinsurance.com.au

CASE STUDY EVENTS INSURANCE CANCELLATION

Let’s take the journey together.

The final day of a food and wine festival was rained out, resulting in a significant loss of income for the organiser.

The event was scheduled to run over four days, with two ticketed sessions per day. The first three days proceeded without incident.

But on the last day of the event, severe weather conditions resulted in the event being abandoned due to safety concerns for vendors and patrons.

The event organiser provided refunds to ticketholders for the cancelled session, which led to its net profit earned from the event being significantly less than it would have been had the event proceeded as planned.

However, the organiser held an Event Cancellation policy, which was purchased to cover the costs and expenses and the net profit associated with the event, putting the insured back in the same position that they would have been in had the event not been affected by weather.

In 2022 we’re driving innovation in the heavy motor industry, by delivering a new era of technology-enhanced support and claims management, enabling superior service and value for your clients.

Enjoy: Faster claims.

Better service.

Direct access to the decision-maker.

SOURCE: MARSH ADVANTAGE INSURANCE

At HMIA we put brokers in the driver’s seat.

Let us know what you need this year, so together we can make it a smooth road for you, and your clients in 2022.

Find out how at HMIA.COM.AU

HMIA Heavy Motor Insurance Australia

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.

HMIA

FEATURE / Agriculture Insurance

Weathering the declared values storm With CAT events increasing in frequency across Australia, it’s imperative that farmers’ declared values are reviewed as a matter of urgency.

BY MARTIN WANLESS

36 / INSURANCE ADVISER FEBRUARY 2022

NIBA.COM.AU / 37

FEATURE / Agriculture Insurance

“Farming areas are increasingly experiencing storm events such as hail, which have never been recorded in these areas before.”

– TIM STANFORD, DIRECTOR AND BROKER AT FASSIFERN INSURANCE SERVICES

T

he weather’s a continual challenge for farmers across Australia, but it seems that challenge is getting greater and greater. No longer a series of events that may be relatively predictable in their occurrence if not timing, CAT events are prompting insurers to review their coverage for farmers.

“Farming areas are increasingly experiencing storm events such as hail, which has never been recorded in these areas before,” says Tim Stanford, Director and Broker at Fassifern Insurance Services based in Boonah, Beaudesert, Queensland.

38 / INSURANCE ADVISER FEBRUARY 2022

“These intense hail events are causing significant damage to farm infrastructure and crops.”

As a result, capacity and premiums are under scrutiny.

“Expectations would be for further capacity restrictions in those regions [that are prone to extreme weather] along with pressure on premiums expected to occur throughout 2022 and beyond,” says Shane Wilkins, National Practice Leader – Agriculture at Aon. “As we are well aware, tropical cyclones continue to be of concern and tropical cyclone Seroja in April 2021 crossed the WA

coastline in a region that was not accustomed to the impacts of tropical cyclones.

Therefore, there was much infrastructure that was not suited to such high winds, and also an area that the insurance industry would not have been completely prepared for and had not priced accordingly for risks only traditionally seen in Northern Australia.”

At the same time, of course, a global pandemic has affected the world in many ways – not least impacting global supply chains. Shortages of timber, for example, as well as new vehicles, have led to prices increasing – causing another insurance headache.

Farm Pack Insurance

Flexible cover tailored for your farmer

Every farm is unique, from the back paddock to a shed full of machinery, it’s both a home and a livelihood.

That’s why we offer specialist protection that covers your customers’ home, vehicles, shed, machinery, livestock and supplies – all under one policy. When things go wrong, our claims specialists act quickly to resolve a claim, using our regional network with local connections and suppliers to help your customers get back on their feet.

QBE’s farm Pack offers 15 sections of cover including Commercial Motor, Home, Farm Property and Liability.

Focused farming industries

Hobby and leisure farms

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For Farm Pack solutions, contact your QBE representative today qbe.com/au/farm QBE Insurance (Australia) Ltd. ABN 78 003 191 035. AFSL 239545. Consider the PDS to see if a product is right for you.

Sugarcane

Fruit and Vegetables

FEATURE / Agriculture Insurance

TIME TO REVIEW INSURED VALUES

Underinsurance has been a perennial issue across many categories for a number of years. We regularly see the impact in the aftermath of CAT events, however that risk is now significantly extenuated by rising replacement costs.

“When it comes to replacing items, whether it’s anything from machinery or to contents, we’re seeing costs go up, and the value of those items going up quite significantly, and I suspect we may see some more increases around that,” says Paul George, Managing Director at MGA Insurance Group.

Sheds are often something that are frequently left unconsidered from a value perspective, particularly if they’ve been there for a while and/or were self-built.

“Shearing sheds are another item that I tend to see some level of under insurance,” says Wilkins.

“With the original shearing shed still standing since the 1960s or earlier, some can generally be unaware of the true costs of rebuilding a modern shearing shed.”

Stanford agrees: “Building costs have increased substantially over the past 12 months, therefore clients will need to look closely at their sums insured to make sure the sums adequately reflect true replacement values.”

Sometimes, farmers may have no intention to rebuild a larger shearing shed and may choose to insure for what they plan to rebuild.

“However, in the event of a partial loss, there is the chance they leave themselves short when it is repairable rather than a rebuild,” says Wilkins.

40 / INSURANCE ADVISER FEBRUARY 2022

“Shearing sheds are another item that I tend to see some level of underinsurance.

With the original shearing shed still standing since the 1960s or earlier, some can generally be unaware of the true costs of rebuilding a modern shearing shed.”

– SHANE WILKINS, NATIONAL PRACTICE LEADER – AGRICULTURE AT AON

THE CHALLENGE OF CONTRACT HARVESTING In terms of frustrating experiences, having a strong crop but no means of harvesting it is right up there for farmers. And rising insurance costs have led to contract harvesters stepping away from the industry, and leaving farmers in a challenging spot.

Increasing rates for liability and a contraction of insurers no longer offering cover has led to harvesting challenges.

“This challenge for contract harvester operators came as a result of the 2016 winter crop harvest where there was a large increase in harvester losses,” says Shane Wilkins, National Practice Leader – Agriculture at Aon. “Further contraction of insurance capacity, especially this year, has seen these premiums increase along with greater deductibles has led to some operators reconsidering their future in the industry.”

This has led to farmers reviewing their risk mitigation strategies, with arrangements with fellow farmers increasingly being put in place as a fall back.

2020 2019 2018 2017 2016 Technical Aid to the Disabled changes lives of people living with a disability by providing personalised technology, equipment and services.

Their grant gives the gift of freedom to children to cycle for the first time.

Just one of the fabulous Not for Profit organisations that we have been able to assist with funds from our annual Small Grants Program.

FEATURE / Agriculture Insurance

CASE STUDY: DO YOUR CLIENTS KNOW TODAY’S COST OF FENCING?

“Farmers know their farms better than anyone else and are some of the best risk managers you’ll ever find. These businesses and farmers are acutely aware of what their risks are.”

– PAUL GEORGE, MANAGING DIRECTOR AT MGA INSURANCE GROUP

THE TRUE COST OF SECOND-HAND REPLACEMENTS

When replacing machinery, a number of external factors have led to the value of second-hand equipment increasing, which again can have implications if and when a claim is made.

“A return to good seasonal conditions, low interest rates, Federal Government incentives via instant asset write off and tax incentives, and the overall global supply chain issue have caused a delay of new machinery hitting our shores, and has led to the second-hand market to be quite buoyant and an increase in prices,” says Wilkins.

“This does lead to a possible under insurance scenario if farmers haven’t reviewed the sum insured values for tractors, sprayers, harvester equipment and the like, to ensure that in the event of a total loss, that their current sum insured value reflects the true market value of the item. They need to be able to replace their item, like-for-like, wherever possible and 42 / INSURANCE ADVISER FEBRUARY 2022

continue on farming without too much of a financial impact to their operation.”

Farmers generally have a very good sense of the risks they face, says George.

“Farmers know their farms better than anyone else and are some of the best risk managers you’ll ever find. These businesses and farmers are acutely aware of what their risks are.”

However, the issue of increasing premiums and sums insured offers brokers and advisers an ideal opportunity to demonstrate significant value.

“Brokers and advisers should be on the front foot and having early discussions with clients about the likely increases to their farm policy premiums in the future,” says Stanford.

“They should also be discussing with their clients the need to have adequate replacement sums insured on their building and farm infrastructure.”

And with CAT events becoming ever more frequent, there’s never been a better time to do so.

In 2019, the Boonah/Beaudesert area experienced large bushfires burning out of control through the state forest along the Great Dividing Range. The farms bordering this area sustained significant damage to not only their pastures, but kilometres of burnt-out fence lines.

A client of Fassifern Insurance Services (FIS) suffered damage to their fences and called their broker to assist in making an insurance claim. FIS attended the property and took photos of the damaged fences and worked closely with the client and their fencing contractor to assess damage and the potential replacement cost of the fences. A claim was then lodged for consideration and was accepted by their insurer.

The insurer’s assessment was that the cost to replace the damaged fences on the property would be in excess of $48,000.

“We had previously discussed with the client about the need to have adequate sums insured to cover replacement values for farm infrastructure and thankfully our client took our advice and had a sum insured of $50,000 for fences,” says Tim Stanford, Director and broker of Fassifern Insurance Services based in Boonah, Beaudesert, Queensland.

“In contrast, we’ve since become aware of other farming properties insured in the immediate vicinity of the bushfire and discussions with their insurance advisers assessed their potential risk exposure to their fences burning to be minimal.

Unfortunately for them, they subsequently decided to self-insure this particular risk which has now left them significantly out of pocket.”

Something like fences might not be the very first thing you would consider with farm insurance, but when you consider that many farms are surrounded by fences, the cost of fixing or replacing them can be substantial.

COMMUNITY HUB

COMMUNITY HUB FEBRUARY 2022

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

INDEX AB Phillips ..................................................... 44 ASR Underwriting...................................... 45 Newline Group............................................ 46 Affinity Insurance Brokers...................... 46 AIBI................................................................... 47

Australasia Underwriting........................ 47 Tudor Insurance Brokers.......................... 47 Liberty Special Markets............................ 47 Moran Insurance Brokers.........................48 MGA Insurance Group..............................48

All Parks Insurance......................................49 NIBA advertising..........................................49 Wellington Underwriting.........................50 Pollard Insurance Brokers........................50 QPIB..................................................................50

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

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

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

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

Commission is paid on placements.

For more information please contact Rose Dee on:

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

COMMUNITY HUB Key Liability Industries:

Key PI Occupations:

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

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

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

Chief Executive Officer / Underwriting Manager – Liability

Underwriting Manager - PI

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

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

Linda Sepala Underwriting Manager – D&O & FI

PH: 03 9998 1900

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

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Untitled-2 1 NIBA_Newline_Sep20.indd 1

17/5/21 15/9/2012:40 3:54pm pm

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46 / INSURANCE ADVISER AUGUST 2021

1300 1300 130 130 535 535 1300 1300 130 130 535 535 www.affinityib.com.au www.affinityib.com.au www.affinityib.com.au www.affinityib.com.au Affinity Affinity Insurance Insurance Brokers Brokers is an is Authorised an Authorised Representative Representative (No 1288354) (No 1288354) of Aon of Risk Aon Risk Services Services Australia Australia Limited Limited AFSLAFSL 241141 241141 Affinity Affinity Insurance Insurance BrokersBrokers is an Authorised is an Authorised Representative Representative (No 1288354) (No 1288354) of Aon Risk of Aon Services Risk Services Australia Australia Limited Limited AFSL 241141 AFSL 241141

COMMUNITY HUB

�aibi

Adult Industry Business Insurance

WE TOUGH INSURANCE For hard to place business we offer a solution Our Favourite Property Risks • Vacant Properties • EPS Risks / Distressed or Difficult Occupations • Remote and Timber Pubs • North Australian Risks • Wineries / Woodworkers • Waste Recyclers / Plastics Manufacturing o Lead / Follow / First Loss / Excess of loss.

Our Favourite Liability Risks • Asbestos Removal/Demolition Contractors/Earthmoving • Abattoirs / Seafood Processing / Food & Beverage • Services to the Mining Industry / Welding & Fabrication • Chemicals & Fertiliser Manufacturing • Railway Equipment / Industrial Machinery & Equipment

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

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

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 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

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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)

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Tudor Insurance Australia Cameron McKerchar tudorinsurance.com.au

NIBA.COM.AU / 47

COMMUNITY HUB

48/ INSURANCE ADVISER FEBRUARY 2022

COMMUNITY HUB

Advertise with the most influential and trusted voice in the Australian intermediated insurance industry · Insurance Adviser · NIBA website · Broker Buzz · Need a Broker website · Targeted eDMs · NIBA events (Annual Convention) Contact Tony May National Advertising Sales Manager T: 02 9459 4303 E: tmay@niba.com.au NIBA.COM.AU / 49

COMMUNITY HUB Wellington Underwriting Agencies specialise in labour hire/recruitment, complex liability risks and niche property solutions.

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 Our Combined General Liability wording has been tailored for complex risks including: • construction • manufacturing • rail • resource sector; and • other hard to underwrite risks Wellington’s Property capabilities are focussed on niche exposures including: • catastrophe-exposed properties • mining sector

Contact our Underwriters today or visit our website at

www.wellingtonu.com.au

“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

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50 / INSURANCE ADVISER AUGUST 2021

D PRAC IE T F I

ING IS

QPIB – A STATEMENT OF PROFESSIONALISM

• QUA L

– CRAIG ANDERSON, 2018 YOUNG BROKER OF THE YEAR

NCE BR

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NIBA / Forthcoming Events

STAY UPDATED!

NIBA EVENTS

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

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

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

2021 NIBA NSW GALA LUNCH

NIBA 2021.2 PERTH

WHERE: Doltone House, Jones Bay Wharf WHEN: Thursday 3 February 2022 The rescheduled NSW Gala Lunch will take place on 3 February 2022 and is held in conjunction with Wheelchair Sports NSW.

WHERE: Crown Perth WHEN: Monday 14 February 2022 Join us in Perth for a keynote speech from Professor Fiona Wood and to hear more on workers’ compensation and business interruption claims.

NIBA 2021.2 MELBOURNE WHERE: Crown Melbourne WHEN: Tuesday 8 February 2022 The hybrid NIBA 2021.2 Convention’s first day offers brokers an opportunity to further their understanding of industry regulators and how working practices will change in a post-COVID-19 world.

NIBA 2021.2 BRISBANE WHERE: Sofitel Brisbane Central WHEN: Wednesday 16 February 2022 This session of the Convention zeros in on insurance for weather-related incidents and discusses the Northern Australia Cyclone reinsurance pool.

NIBA 2021.2 ADELAIDE

NIBA 2021.2 SYDNEY

WHERE: Adelaide Convention Centre, North Terrace WHEN: Friday 11 February 2022 Join us on the second day of NIBA 2021.2 to hear from experts on the state of the industry and how new technology can be leveraged to streamline claims.

WHERE: International Convention Centre Sydney WHEN: Monday 21 February 2022 The final day of our hybrid Convention will examine the future of broking and features a closing keynote speech from former fighter pilot Chris ‘Boo’ Boucousis.

2021 NIBA SA GALA LUNCH

NIBA 2021.2 QBE CONVENTION DINNER

WHERE: Panorama Ballroom, Adelaide Convention Centre WHEN: Friday 11 February 2022 The rescheduled luncheon heads to the Panorama Ballroom at the Adelaide Convention Centre and will bring together the SA insurance community for an afternoon of celebrations and live entertainment from comedian Amos Gill.

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

WHERE: International Convention Centre Sydney WHEN: Monday 21 February 2022 After the Convention closes, join us for an evening of networking and entertainment at the NIBA 2021.2 QBE Convention Dinner.

PROTECSURE NIBA PRESENTATION SKILLS PROGRAM WHERE: Sydney CBD WHEN: Wednesday 6 April, Tuesday 12 April, Thursday 28 April, Tuesday 3 May 2022 The Protecsure NIBA Presentation Skills Program offers a holistic approach to presentation skills, promoting technical awareness of the art of communication, and the importance of effective networking.

The program, presented by Nikki Heald and Michael Kelly, aims to develop young professionals’ skills and performance in the art of verbal and non-verbal communication.

Save the date for your state’s 2022 Gala Lunch!

2022 NIBA VIC GALA LUNCH WHERE: Melbourne WHEN: Friday 20 May 2022

2022 NIBA WA GALA LUNCH WHERE: Perth WHEN: Friday 8 July 2022

2022 NIBA QLD GALA LUNCH WHERE: Brisbane WHEN: Wednesday 13 July 2022

2022 NIBA NSW GALA LUNCH WHERE: Sydney WHEN: Friday 15 July 2022

2022 NIBA SA GALA LUNCH WHERE: Adelaide WHEN: Friday 22 July 2022

DISPLAY ADVERTISING INDEX – FEBRUARY 2022 Liberty..................................................... IFC Vero................................................................5 Zurich............................................................7 Blue Zebra.................................................. 9 Kaplan.......................................................... 11 Focusnet..................................................... 13

ANZIIF....................................................... 25 Innovations Group................................ 27 NTI................................................................ 31 GT................................................................33 ATL..............................................................34 HMIA.......................................................... 35

QBE.............................................................39 Community Underwriting...................41 SLE..............................................................43 Ebix.............................................................. 51 CBN.........................................................IBC CGU...................................................... OBC

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

52 / INSURANCE ADVISER FEBRUARY 2022

NIBA / Events

NIBA SA CHRISTMAS COCKTAILS The NIBA SA Christmas Cocktails brought members of the local insurance community together on Friday 12 November to celebrate the tremendous work done by the industry over the past year.

FEBRUARY 2022 INSURANCE ADVISER / 53

NIBA / Events

NIBA QLD CHRISTMAS BOWLS The NIBA Qld Christmas lunch was held on Thursday 25 November at The Boo. Fun was had by all members who attended and celebrated the end of the year with the intermediated insurance industry.

54 / INSURANCE ADVISER FEBRUARY 2022

NIBA / Events

NIBA.COM.AU / 55

INSURER STRENGTH RATINGS

S&P GLOBAL

AUSTRALIA

INSURER FINANCIAL STRENGTH RATINGS

RATING

NON-LIFE INSURERS AAI Ltd.

AA-/STABLE

AIG Australia Limited

A/CreditWatch Negative

Allianz Australia Insurance Ltd.

AA-/STABLE

BHP Billiton Marine & General Insurances Pty Ltd.

A/CreditWatch Negative

Chubb Insurance Australia Ltd.

AA-/STABLE

Great Lakes Insurance S.E (Australia Branch)

AA-/STABLE

Hallmark General Insurance Co. Ltd.

BBB+/STABLE

Insurance Australia Ltd.

AA-/STABLE

AA-/STABLE

Society of Lloyd's

A+/STABLE

AIG Insurance New Zealand Ltd.

A/CreditWatch Negative

Medical Insurance Australia Pty Ltd.

A-/STABLE

Chubb Insurance New Zealand Ltd.

AA-/STABLE

QBE Insurance (Australia) Ltd.

A+/STABLE

QBE Insurance (International) Ltd.

A+/STABLE

Zurich Australian Insurance Ltd.

AA-/STABLE

The following is a list of S&P Global Ratings insurer financial strength ratings assigned to insurance companies in Australia and New Zealand. Ratings at 1 January 2022.

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

NEW ZEALAND

RATING

NON-LIFE INSURERS AA Insurance Ltd.

Hallmark General Insurance Co. Ltd. (NZ Branch) BBB+/STABLE IAG New Zealand Ltd.

AA-/STABLE

Society of Lloyd's

A+/STABLE

Medical Insurance Society Ltd.

A-/POSITIVE

Arch Lenders Mortgage Indemnity Ltd.

A/NEGATIVE

Southern Cross Benefits Ltd.

A/STABLE

Genworth Financial Mortgage Insurance Pty Ltd.

A/NEGATIVE

Southern Cross Pet Insurance Ltd.

A/STABLE

QBE Lenders' Mortgage Insurance Ltd.

A/STABLE

Teleco Insurance (NZ) Ltd.

BBB+/STABLE

LIFE INSURERS

Vero Insurance New Zealand Ltd.

AA-/STABLE

AIA Australia Ltd.

A+/STABLE

Vero Liability Insurance Ltd.

AA-/STABLE

AMP Life Ltd.

A-/STABLE

Challenger Life Company Ltd.

A/STABLE

Hallmark Life Insurance Co. Ltd.

BBB+/STABLE

MetLife Insurance Ltd.

A+/STABLE

Westpac Life Insurance Services Ltd.

A+/STABLE

QBE Insurance (Australia) Ltd. (New Zealand Branch) A+/STABLE

HEALTH INSURERS Southern Cross Medical Care Society

A+/STABLE

NIB NZ Ltd.

A-/STABLE

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

LENDERS MORTGAGE INSURERS

REINSURERS A/NEGATIVE

General Reinsurance Australia Ltd.

AA+/STABLE

LIFE INSURERS

General Reinsurance Life Australia Ltd.

AA+/STABLE

Asteron Life Ltd.

AA-/STABLE

Hannover Life Re of Australasia Ltd.

AA-/STABLE

Hallmark Life Insurance Co. Ltd. (NZ Branch)

BBB+/STABLE

Munich Reinsurance Co. of Australasia Ltd.

AA-/STABLE

Medical Life Assurance Society Ltd.

A-/POSITIVE

RGA Reinsurance Co. of Australia Ltd.

AA-/STABLE

Westpac Life-NZ-Ltd.

A+/NEGATIVE

SCOR Global Life Australia Pty Ltd.

AA-/STABLE

Resolution Life New Zealand Ltd.

A-/STABLE

Swiss Re Life & Health Australia Ltd.

AA-/NEGATIVE

*For the S&P Global Insurer Financial Strength Ratings Definitions visit: https://www.niba.com.au/resource/standardandpoors.pdf Copyright © 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 thirdparty licensors: (a) guarantee the accuracy, completeness or availability of the S&P information, or (b) make any warranty, express or implied, as to the results to be obtained by Insurer Financial Strength Ratings or any other person from the use of the S&P information or any other data or information included therein or derived therefrom, or (c) make any express or implied warranties, including any warranty of merchantability or fitness for a particular purpose or use, or (d) shall in any way be liable to Insurer Financial Strength Ratings or any recipient of the S&P information for any inaccuracies, errors, or omissions, regardless of

56 / INSURANCE ADVISER FEBRUARY 2022

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

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

INSURER STRENGTH RATINGS

NEW ZEALAND

BEST’S

FINANCIAL STRENGTH RATINGS

RATING

COMPOSITE Quest Insurance Group Limited

B/STABLE

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

A/STABLE

BNZ Life Insurance Limited

A u/NEGATIVE

CIGNA Life Insurance New Zealand Limited

A u/POSITIVE

Co-operative Life Limited

B++/STABLE

DPL Insurance Limited

B++/STABLE

Fidelity Life Assurance Company Limited

A- u/DEVELOPING

Foundation Life (NZ) Limited

A-/STABLE

General Reinsurance Life Australia Limited (New Zealand Branch)

A++/STABLE

LIFE, ANNUITY AND ACCIDENT

Kiwi Insurance Limited

A- u/DEVELOPING

General Reinsurance Life Australia Ltd.

Momentum Life Limited

B++/STABLE

Partners Life Limited

A- u/DEVELOPING

Pinnacle Life Limited

B/STABLE

The following is a list of AM Best Financial Strength Ratings (FSRs) assigned to insurance companies in Australia and New Zealand. Ratings as at 10 January 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 A++/STABLE

PROPERTY/CASUALTY Ansvar Insurance Limited

A-/NEGATIVE

First American Title Insurance Company of Australia Pty Limited

A/STABLE

General Reinsurance Australia Ltd

A++/STABLE

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

A+/STABLE

Guild Insurance Limited

A-/NEGATIVE

Beneficial Insurance Limited

B++/STABLE

Pacific International Insurance Pty Limited

B++/NEGATIVE

Brightsideco Insurance Limited

B/STABLE

The Hollard Insurance Company Pty Ltd

A-/STABLE

Consumer Insurance Services Limited

B+/STABLE

The New India Assurance Company Limited (Australia Branch)

B++/STABLE

First American Title Insurance Company of Australia Pty Limited (New Zealand Branch)

A/STABLE

FMG Insurance Limited

A/STABLE

General Reinsurance Australia Ltd (New Zealand Branch)

A++/STABLE

Health Services Welfare Society Limited

B+/NEGATIVE

Mitsui Sumitomo Insurance Company Limited (New Zealand Branch)

A+/STABLE

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

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

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

PROPERTY/CASUALTY

New Zealand Medical Indemnity Insurance Limited B+/STABLE Pacific International Insurance Pty Ltd (New Zealand Branch)

B++/NEGATIVE

Police Health Plan Limited

A-/STABLE

Provident Insurance Corporation Limited

B /STABLE

The Hollard Insurance Company Pty Ltd (New Zealand Branch)

A-/STABLE

The New India Assurance Company Limited (New Zealand Branch)

B++/STABLE

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

A++/STABLE

Tower Insurance Limited

A-/STABLE

Union Medical Benefits Society Limited

A/STABLE

Virginia Surety Company, Inc. (New Zealand Branch)

A/STABLE

NIBA.COM.AU / 57

INSURANCE JOURNEY / Don Shields

A COMMITMENT TO SERVICE

Geelong’s Don Shields talks about the three passions that have underpinned his career.

“W

hen I finished high school in 1981, I got into an engineering course at Melbourne University, but decided to defer. I saw a job advertised for insurance, so before I applied my dad took me to meet his friend Harry who worked in insurance, and after talking to him, I applied and got the first and only job I have ever applied for, with Mercantile Mutual in Geelong. I was earning a good wage and enjoying my life, even if it took a couple of years before I felt comfortable in the industry and thought it could be a career.

“I joined the Army Reserve when I was 18 and Mercantile Mutual was supportive with the leave I needed. I was doing officer training and they could see the potential benefit of the leadership and management skills I was being taught. It was a happy collision of worlds. Funnily enough, I applied to go to the Royal Military College when I was 16 and was rejected. A lot of years later, I went back as an Army Reserve Captain to instruct there.

“After six years I was poached by NZI insurance as a Commercial Underwriter which took me to Mildura and Bendigo. But I wanted to get back home, so I started my own business in December 1993, which became Geelong Insurance Brokers.

“One of the people who finished his 50+ year insurance career working for me was my dad’s friend Harry – the same man who’d explained the industry to me. I had quite a few staff in the latter stages of their career. Some of them had started at 15 in the mail room and spent 55 years in insurance. They had great interpersonal skills and excellent client relationships, but lacked computer skills.

“I’m a firm believer that, if you look after people, they look after you. Right from day one, I’ve used a holistic approach, particularly with clients.”

PROUDLY SUPPORTING

58 / INSURANCE ADVISER FEBRUARY 2022

“I had to leave the army after 21 years when I was diagnosed with cancer, retiring with the rank of Major. At that point, there were four of us in the insurance business.

The end of my military career allowed me to spend more time in the business and it tripled in size. It was a big shift for me – up to that point I’d thought of myself as an Army Officer first and an insurance person second.”

FOUR QUICK QUESTIONS Tell us something most people don’t know about you? I was a good-looking baby, and I won the Women’s Weekly baby contest in 1964.

Favourite sports team? Geelong Cats in the AFL. When I reflect on my Scottish heritage, their win-loss ratio and number of finals appearances in the past 15 years is extraordinary. They are definitely good value for money.

Bucket list holiday? I’ve ticked off a lot of that. One place I’d like to go is Mexico to see the history and culture.

Three people you’d love to sit down and have dinner with?

Paul Harris, founder of Rotary.

Mahatma Gandhi – he’d be fascinating.

Maybe General Sir John Monash.

“I’m a firm believer that, if you look after people, they look after you. Right from day one, I’ve used a holistic approach, particularly with clients. One client in construction fell from a height and broke his neck. Without the right covers in place, there would have been a fire sale of his assets and he would have ended up in an aged care home. His cover meant he could keep his business, modify his house and his car.

“When he woke up from his coma, I was the first person he saw, with the forms so he could get his insurance payout. There’s an old saying that people don’t care how much you know until they know how much you care.”

“I joined Rotary not long after starting my business. Initially it seemed to be a lot of old men and barbecues, but I was converted quickly when I saw the projects they were involved with and the service to the community.”

“My club put a kitchen into a centre that has been feeding the homeless for the past 30 years. It funded a start-up training disabled kids in hospitality and catering. We built schools in East Arnhem Land and in Fiji.

“Rotary’s new area of focus is the environment. We have a program called ‘Donations in Kind’ which takes secondhand medical and education items otherwise heading for landfill and sends them to developing countries. Another project involves playgrounds. In Victoria, around 1000 playgrounds a year are ripped out because they don’t meet a changing specification. Around 120 of these have been sent over the last five years to places like Sri Lanka, East Timor, Papua New Guinea, Fiji, Nepal, Philippines – where playgrounds are rare.”

“I grew up on a farm, so I’ve always been very family and community minded, and Rotary fits in very well with that. I’m a Rotary district insurance and risk management officer and provide free advice and assistance to all Rotarians throughout my region.

“From here, who knows? I’d love it if Geelong Insurance Brokers continued to thrive after I’m long gone. That, and my work with Rotary, I hope will be my legacy.”

Share your insurance journey. Email editor@niba.com.au

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Always consider the Product Disclosure Statement and Target Market Determinations available from the product issuer, Insurance Australia Limited, ABN 11 000 016 722, AFSL 227681, trading as CGU Insurance. This advice is general advice only and does not take into account a customer’s individual objectives, financial situation or needs (‘personal circumstances’).