Insurance Adviser March 2023 issue

ACN 006 093 849

ABN 94 006 093 849

Insurance Adviser magazine

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

Insurance Adviser magazine is published by NIBA

Publisher Philip Kewin, CEO, NIBA

T: (02) 9459 4305

E: pkewin@niba.com.au W: niba.com.au

Communications Manager

Wendy Martin

Editorial enquiries

E: editor@niba.com.au

National Sales Manager

Tony May

E: tmay@niba.com.au

Design Citrus Media www.citrusmedia.com.au

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

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

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

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QUALITY OF ADVICE FINAL REPORT: UPDATE FOR MEMBERS

A summary of the Quality of Advice Final Report and what it means for members.

NIBA ANNOUNCES NEW PRESIDENT, VICE PRESIDENT

AND DIRECTORS

20 GOING FURTHER ON REPRESENTATION, PROFESSIONALISM AND COMMUNITY

New NIBA President Gary Okely discusses his priorities for the broking industry.

24 TIME TO LOOK FORWARD

Nick Cook on his appointment as NIBA Vice President.

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THE POWER OF SELF-REGULATION

The long-awaited Quality of Advice Review Report was released last month, and while the Government has indicated it wants an independent review of the recommendations, the signs from an insurance brokers’ perspective are very positive.

The independent review was conducted by Michelle Levy, a well-respected Partner at Allens, who specialises in trust law, financial services regulation, prudential standards plus tax advice on superannuation funds and life insurance companies.

While the review had a broad scope and primarily focused on the Quality of Financial Advice, the key issue for insurance was the reviews’ brief to address Recommendation 2.6 from the Royal Commission into Misconduct into the Banking, Superannuation and Financial Services Industry, otherwise known as the Hayne or Banking Royal Commission. The recommendation was to consider whether the exemption to the ban on conflicted remuneration under the Corporations Act, remains justified, i.e., should commissions continue to be allowed?

The response from Ms Levy, was yes! The report reads, “subject to one condition, I recommend that the conflicted remuneration provisions in the Corporations Act for benefits provided in respect of general insurance remain as they are.” The condition is that a person who provides personal advice to a retail client in relation to a general insurance product must explain to their client that they will be paid a commission if the client decides to buy the recommended insurance product and they must ask for the client’s consent. It is important to note that it is the record of consent that is to be in writing, not the consent itself, so a phone call or email is sufficient, though we know many brokers will insist on written consent for further protection.

Ms Levy acknowledged that like financial advisers, clients look to brokers for independent advice. “Where they provide personal advice to retail clients, they will have an obligation to provide good advice. In a perfect world, they would charge a fee for their advice and they would not be paid a product commission. And in some cases, they do. This is because commissions do create a conflict – they provide an incentive for the broker to sell a more expensive insurance product or more insurance than might be required by the consumer. However, I have not been able to find any real evidence of widespread misconduct and I am concerned that consumers who rely on brokers may not be willing or able to pay a fee for their advice”.

Other recommendations include an expansion of the application of personal advice to ensure the client fully understands whether or not their personal circumstances are being considered in the delivery

WHY NIBA MATTERS TO ME

Members share why NIBA is important to them, and how their involvement has enabled them to support the broking industry.

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.

Professionalism

NIBA SAYS CONGRATULATIONS

NIBA WELCOMES THE FOLLOWING PRINCIPAL MEMBERS ON BOARD:

Knightsbridge Insurance Group Pty Ltd

NIBA CONGRATULATES THE FOLLOWING MEMBERS FOR RECEIVING THEIR QPIB DESIGNATIONS:

Mark Elphick, Scott & Broad Pty Ltd

Yu (Spencer) Hon, Eternity Insurance and Financial Services Pty Ltd

Maria Minasi, Trans-West Insurance Brokers Pty Ltd

Miranda Kruger, Clear Insurance Pty Ltd

Karen Southwell, AEI Insurance Broking Group Pty Ltd

Kirsty Swan, Acumen Insurance Brokers

Matthew Whitley, Aviation Marine General Insurance Pty Ltd

Lauren Spice, Morgan Insurance Brokers Pty Ltd

Jillian Schnepf, AEI Insurance Group Pty Ltd

Tiffany Kearvell, Community Broker Network Pty Ltd

Nicole Hunter, Guardian Insurance Brokers Pty Ltd

Johnnie Macleod, Knightsbridge Insurance Group Pty Ltd

Michelle O’Connor, Oracle Group (Australia) Pty Ltd

Jaison Sebastian, Great Value Insurance Australia Pty Ltd

NIBA CONGRATULATES THE FOLLOWING MEMBERS FOR BECOMING AN ASSOCIATE MEMBER:

Tess Miller, Steadfast Taswide Insurance Brokers Pty Ltd

Samantha Raco, BrokersOnline

Yolanda Di Rosso, Marsh Pty Ltd

Emma Isbister, EBM Insurance Brokers

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 has brokers’ best interests at the core of everything we do. Find out what we can do to help benefit your business and your team at niba.com.au/membership

“Education and professional development are fundamental for achieving a bright future for the broking profession. NIBA plays a pivotal role in the development of the broking profession and offers its members many opportunities to achieve high standards of professionalism.”

SALLY COULTON

Account Director, Property and Casualty, WTW

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Go Further, Together.

NIBA EVENTS

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

UPCOMING EVENTS

2023 NIBA WA SEMINAR: PROPOSED WORKERS COMPENSATION ACT CHANGES AND WHS LEGISLATION AMENDMENTS

WHERE: QBE, Level 18/200 St Georges Terrace, Perth

WHEN: Thursday 16 March 2023

Join us for an insightful panel discussion focusing on Proposed Workers Compensation Act Changes and WHS Legislation Amendments and the potential impact of the upcoming legislative changes on the insurance industry. Our panellists will share their insights on how brokers can best advise their clients on these changes and help them navigate the evolving landscape of workers’ compensation and WHS regulation. The discussion will be informative and interactive, providing valuable insights for insurance brokers looking to stay up-to-date on the latest developments in the field.

Nikki Heald

Panel members include:

• Theresa Lewin, Financial Institutions Practice Leader, Professional & Financial Risks - Gallagher

• Matt Schinck, Head of Placement, National – Aon

• Callum Brown, Account Director –Comprehensive Insurance Solutions

• Mark Chisholm, National Underwriting Manager, Property – CGU

• Anita Lane, Director – Solution Underwriting

Panel facilitated by Kevin Baker, Aon –NIBA Vic/Tas Divisional Committee Chair

SAVE THE DATE FOR YOUR STATE’S 2023 GALA LUNCH AND THE NIBA CONVENTION!

2023 NIBA Vic Gala Lunch

2023

PROTECSURE

NIBA PRESENTATION SKILLS PROGRAM

WHERE: Aon, 201 Kent St, Sydney

WHEN: Wednesday 12 April, Thursday 20 April, Wednesday 26 April, Thursday 4 May.

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.

Program Structure

• Workshop 1 – Nikki Heald (an introduction to networking): Wednesday 12 April from 4:00pm – 6:00pm

• Workshop 2 – Michael Kelly (unspoken techniques to engage your audience): Thursday 20 April from 9:00am – 1:00pm

• Workshop 3 – Nikki Heald (building your hook and presentation): Wednesday 26 April from 9:00am – 1:00pm

• Workshop 4 – Final Presentations: Thursday 4 May from 4:00pm – 6:00pm

Nikki Heald is the Director of Corptraining, established to provide dynamic and modern presentations appropriate to the business needs of today. Her programs focus on developing interpersonal skills which enhance business relationships and professional visibility, resulting in increased credibility and sales.

Michael Kelly

Michael is a leading body language and speech expert and holds a Master of Science degree in Speech Pathology. Michael’s programmes help leaders communicate their ideas and vision with confidence, energy, and certainty. Leaders who work with Michael deliver influential presentations, win more pitches, and grow thriving careers.

2023 NIBA VIC SEMINAR: EYE ON THE HORIZON

WHERE: RACV City Club, 501 Bourke St, Melbourne

WHEN: Wednesday 19 April 2023

We will be hosting an engaging panel discussion on what brokers can expect to see in the market in 2023 and beyond. Our panellists will provide insights to changes and upcoming trends broker can expect to face over the coming year from experts in placements and broking, as well as insights from our insurer sponsor partners CGU and Solution Underwriting.

WHERE: Crown Aviary, Melbourne

WHEN: Friday 19 May 2023

2023 NIBA NSW Gala Lunch

WHERE: The Fullerton, Sydney

WHEN: Wednesday 12 July 2023

2023 NIBA WA Gala Lunch

WHERE: Crown, Perth

WHEN: Friday 14 July 2023

2023 NIBA Qld Gala Lunch

WHERE: Convention & Exhibition Centre, Brisbane

WHEN: Wednesday 19 July 2023

2023 NIBA SA Gala Lunch

WHERE: SkyCity, Adelaide

WHEN: Friday 21 July 2023

2023 NIBA CONVENTION

WHERE: The Star, Gold Coast

WHEN: Sunday 8 October to Tuesday 10 October 2023

Reimagine: Think Differently

SAVE THE DATE

8-10 OCTOBER 2023 THE

STAR, GOLD COAST

NIBA is delighted to be holding the 2023 NIBA Convention on the Gold Coast.

Please save the date and mark it in your calendar. It’s an event not to be missed.

NIBA CONVENTION 2023 REIMAGINE: THINK DIFFERENTLY

You create your own future, the old saying goes – and never has that been more true than it is today. The world around is changing, technology’s moving quickly, and new challenges keep coming at us at pace.

The reality is that what worked five years ago is unlikely to work in five years time, which is why this year’s NIBA Convention –the first ‘traditional’ convention for three years – is themed Reimagine: Think Differently.

Taking place on 8-10 October 2023 at The Star on the Gold Coast, this year’s NIBA Convention is a must-visit for brokers from across the country as the industry gets ready

to ‘think differently’ about the challenges it faces, and the many opportunities ahead.

“There’s opportunity to think differently about the way a broker’s business operates and how brokers work generally, but it’s extremely important to think differently because the financial services landscape has changed,” says Steven Hill, Director of Capital Innovation Insurance Group, NIBA Board Director and Chair of the 2023 NIBA Convention.

“We’ve had the outcome of the remuneration review, brokers having to disclose their income to clients, and the new Insurance Brokers Code of Practice. Together with everything else that’s

evolving in the world, brokers will need to learn new ways of doing business.

“Of course, people have to make their own choices around how they deal with things – for example, improving their technology,

The NIBA Convention, as we know it, is back! And, with so much going on in the profession and in the wider world, its return couldn’t be more timely. We caught up with Convention Chair Steven Hill to get a sneak preview of what’s in store when 2023 NIBA Convention hits the Gold Coast.

how they improve their use of AI, data management and data resources.

“However, we always have to keep in mind that the most important thing is our interaction with our clients. Because without our clients, there’s no business.”

Bringing the industry together

As well as a packed schedule of keynote and regular sessions from inspiring and educational speakers from across the country, the Convention will feature a revamped Marketplace where brokers will be able to find the best service providers as well as insurers from across the industry.

“The Marketplace is an essential part of the NIBA Convention, and we want to create energy and vibrancy there,” says Hill.

“It should be the place that people descend on to speak with service providers, insurers and underwriting agencies, as well as networking with each other.”

And that networking aspect is another hugely important part of proceedings we’ve all been missing over the past few years –and Hill is looking forward to the industry reconnecting on the Gold Coast.

“Of course, NIBA’s still had its own gala lunches, awards, and last year’s hybrid Convention and Summit, but this is getting back to the Convention the way that it should be done.

“Insurance is a highly collegial profession, and everybody who comes to the Convention will make new acquaintances with people in the industry, as well as new links to businesses that they will be able to use to help their clients.

“You can’t underestimate the importance of looking someone in the eye.”

The importance of networking

As well as the numerous networking opportunities during the formal part of the Convention itself, there will also be an outdoor opening function on the first day, and a Gala Dinner will officially close the event. As well as that, sponsor-hosted events will continue building those networks, which are invaluable in business.

Given the three-year gap since the last ‘traditional’ Convention, the challenges we’re all facing in our businesses, and the changing dynamics in both the world and

Reimagine: Think Differently

Getting to the Gold Coast

The Star is an approximate 35-minute drive from Gold Coast Airport and around 60-80 minutes if you’re driving from Brisbane Domestic Airport. Flights arrive at Gold Coast Airport from Sydney, Melbourne, Adelaide, Cairns and Canberra every day, while flights from Perth and an array of regional cities arrive daily at Brisbane Domestic Airport.

the industry, there’s rarely been a more important time for as many people as possible from the world of insurance to get together and begin to reimagine what the future may hold.

“There are a number of conferences and conventions across the year, but for me, the NIBA Convention is always the pinnacle. It’s brought to you by the representative body and has educational and informative content brokers can rely on.

“NIBA has consistently delivered a very high calibre of speakers, and this year will be no exception.”

WE ARE YOUR VOICE!

The following is an overview of some of the things NIBA has been examining on behalf of members.

2023-24 PRE-BUDGET SUBMISSION

In the lead-up to the 2023-24 Budget, the Federal Government called for submissions from individuals, businesses and community groups on their views regarding priorities for the upcoming Budget. NIBA provided a submission outlining measures that it believes would increase household resilience to natural disasters.

In its submission, NIBA called for the expansion of the newly established Disaster Ready Fund (DRF) to allow Australian homeowners in disaster-prone areas to undertake urgent household-level disaster mitigation projects.

While reiterating its support for the public mitigation measures that are proposed to be funded by the DRF, the submission highlighted that for many communities, public mitigation works will have little impact on improving resilience to natural disasters and that household-level mitigation works should be carried out in lieu of/ to complement community-level mitigation.

The submission proposed a number of private mitigation measures that could be funded by the scheme including:

• installing fire-proof window shutters

• raising windows to prevent water ingress

• installing sprinkler systems and/ or stand-alone water supply arrangements for fire defence purposes

• replacing external building materials with non-combustible and/or waterproof alternatives

• installing roof strapping (i.e., tying down roof battens to trusses and rafters)

• clearing land of vegetation to create an Asset Protection Zone, and

• raising buildings above predicted future flood levels.

The submission highlighted that such a program would have a number of benefits including reducing the risks and costs associated with recovery from natural disasters, contributing to the economy by creating jobs and stimulating investment in the construction and engineering sectors, promoting community resilience and reducing insurance premiums.

QUALITY OF ADVICE REVIEW

After more than 12 months of consultation, the long-awaited Quality of Advice Review Final Report was released by Treasury. The report made a number of recommendations aimed at encouraging the provision of affordable, quality financial advice. Among the recommendations was the expansion of personal advice, the introduction of a “good advice’ duty to replace the existing Best Interest Duty and the retention of general insurance commissions (with some minor changes).

The Minister for Financial Services, Stephen Jones, has indicated that Treasury will conduct further consultation on the

recommendations prior to announcing any reforms. For a more in-depth look at the Independent Reviewer’s final recommendations and what they could mean for insurance broking see our coverage on page 16.

SENATE SELECT COMMITTEE ON AUSTRALIA’S DISASTER RESILIENCE

Late last year, the Senate Select Committee on Australia’s Disaster Resilience was appointed by the Senate to inquire into Australia’s preparedness, response and recovery workforce models, as well as alternative models to disaster recovery.

NIBA’s submission to the Committee reiterated its call for increased investment in disaster mitigation through the expansion of the Disaster Ready Fund to enable homeowners in disaster-prone areas to undertake household-level disaster mitigation projects. The submission pointed to the success of the Queensland Government’s Household Resilience Program, which allowed homeowners in northern Queensland to undertake cyclone resilience works on their property.

NIBA’s encouraged the Federal Government to work closely with the general insurance industry to ensure that mitigation works would be recognised by insurers when determining premiums so as to encourage homeowner participation.

The Committee is to present a final report by 14 September 2023.

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

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QUALITY OF ADVICE FINAL REPORT: UPDATE FOR MEMBERS

The long-awaited Final Report by the Quality of Advice Review Independent Reviewer, Michelle Levy, has finally been released.

The financial advice landscape has changed significantly since the Review was first recommended by Justice Hayne during the Royal Commission into Misconduct in the Banking, Superannuation, and Financial Services Industry. Most notably, the introduction of reforms aimed at protecting Australians from poor advice and financial products including the design and distribution obligations, anti-hawking provisions and unfair contract terms.

Additionally, both the insurance brokers and general insurance codes of practice have been updated to include obligations to identify and support vulnerable clients

and the commission disclosure obligations set out in the Insurance Brokers Code of Practice will soon come into effect.

In light of these changes, the Review focused on whether the current regulatory regime supports the provision of quality, affordable advice and, if not, what changes can be made to ensure all Australians have access to advice when they need it.

The 257-page report offers a clinical examination of the current financial regulatory framework and the impact of this framework on the provision of advice. The report also rebukes many of the claims put forward by consumer groups, especially around commissions and the proposed ‘good advice’ duty. Michelle Levy says the 22 recommendations contained in the report will if accepted, improve the accessibility of personal financial advice.

HISTORY OF THE QUALITY OF ADVICE REVIEW

• December 2021 – Quality of Advice

Review Draft Terms of Reference released.

• February 2022 – NIBA provides submission to draft Terms of Reference.

• March 2022 – Review releases

Issues Paper and begins consultation.

• June 2022 – NIBA provides submission to Quality of Advice

Review Issues paper.

• August 2022 – Quality of Advice

Review Proposals Paper released.

• August 2022 – NIBA attends roundtable with the Independent Reviewer and stakeholders from the broader financial advice industry to discuss the proposals.

• September 2022 – NIBA provides submission to the consultation on the Quality of Advice Review Proposals Paper.

• November 2022 – Conflicted

Remuneration Proposals Paper released.

• November 2022 – NIBA attends roundtable to discuss conflicted remuneration proposals.

• November 2022 – NIBA provides submission to Conflicted Remuneration Proposals Paper.

• December 2022 – Final Report provided to Federal Government.

• February 2023 – Final Report released.

PERSONAL ADVICE DEFINITION

The Report recommends that the definition of personal advice be broadened so that all financial advice will be considered personal advice if, at the time of provision, the provider of advice

(or their related body corporate) has information about the client’s financial situation or one or more of their objectives or needs.

This differs from the current ‘personal advice’ definition which requires the adviser to consider one or more of the client’s objectives, needs and financial situation or where it is reasonable to assume the adviser has considered the same.

NIBA previously raised concerns about this proposal where general advice is provided in marketing materials. In light of this, the new proposed general advice definition has been altered to only apply when advice is provided in a ‘personal interaction or personalised communication’.

The new definition is intended to provide clarity to both clients and advisers as to what type of advice is being provided and prevents misuse of general advice warnings to circumvent personal-advice obligations.

The proposed definition would capture much of the advice currently provided by brokers. If implemented, brokers will need to carefully identify where such information is held and ensure that this information is made available to advisers. Brokers that currently provide both personal and general advice will need to carefully consider their options if the proposed definition is adopted.

NIBA will be seeking clarity from Federal Government, as to what types of information are intended to be caught by the new definition, as it is not yet clear if advisers will be able to delete all information pertaining to the client’s financial situation, needs and objectives to continue to operate under a general advice model.

While the Review recommended expanding the definition of personal advice, it also made a number of recommendations aimed at reducing the regulatory burden associated with providing personal advice.

REGULATION OF GENERAL ADVICE

In an earlier proposals paper, Michelle Levy proposed to deregulate general advice as a financial service. Following concerns about the potential consequences of such reform the proposal was scrapped.

However, some parts of the original proposal have been maintained, with the Review recommending that the obligation to provide a General Advice warning be removed. The Review highlighted that general advice warnings

are often not understood by clients and can instead lead consumers to believe their needs and objectives have been taken into consideration.

Importantly, this proposal does not mean that there are no circumstances where a general advice warning should be provided rather, the review recommends that advisers consider whether a warning should be provided on a case-by-case basis and if they determine a warning is necessary, use their discretion as to the content the warning should provide and what form the warning should take.

GOOD ADVICE DUTY

The report also recommends that the existing best interest duty and accompanying provisions (including the safe harbour provisions) be replaced in favour of a duty to provide ‘good advice’. In the report, Michelle Levy states that the existing best interests duty “does not guarantee good advice” and reiterates Justice Hayne’s view that the focus on the safe harbour steps rather than the primary best-interest duty has led to a “tick box approach to providing advice”.

‘Good advice’ is advice that would be reasonably likely to benefit the client, having regard to the information that is available to the provider at the time the advice is provided. This obligation would apply to any person who provides personal advice to a retail client including insurers and their agents.

This recommendation is a positive for brokers as it would enable them to exercise their professional judgement when providing advice to their clients. The recommendation would free brokers from the constrictive nature of the safe harbour steps that require brokers to follow the same steps regardless of the nature, scope or content of the advice being provided. Brokers build strong relationships with their clients. This recommendation would empower them to provide advice in a manner that most efficiently meets their duty to their client.

BROKER COMMISSIONS

While the review recognised that commissions may create a conflict of interest, ultimately the review found no evidence of widespread misconduct relating to broker commissions. The report also expressed concerns that banning commissions would prevent clients who rely on brokers from accessing advice.

In light of these findings, the Review recommended that the current exemption to the ban on conflicted remuneration for benefits given in connection with the issue or sale of a general insurance and consumer credit insurance products be retained with one key change – the provider of advice must obtain the informed consent of the client prior to accepting a commission. Noting that premiums and rates of commission vary across insurers, disclosing the commission as a percentage range (for example between 10-20 percent of the premium) would be sufficient to meet this obligation.

The Review did not prescribe what form the consent requirements should take, simply noting that the consent should be recorded in writing and obtained prior to the issue or sale of the general insurance product. The Review also highlighted that consent would not be required for subsequent renewals of the same type of cover provided the client’s original consent included commissions payable on renewal.

DISCLOSURE DOCUMENTS

The report recommends that providers of personal advice should either continue to provide a Financial Services Guide (FSG) or make information publicly available on their website about the remuneration and any other benefits the provider receives (if any) in connection with the financial services they provide and their internal and external dispute resolution procedures (and how to access them).

This recommendation will provide more flexibility to brokers when providing advice. Currently, clients receive a large amount of paperwork, much of which remains unread. The Terms of Engagement in the Insurance Brokers Code of Practice aims to address this by providing important information in a short, easy-to-read document.

NEXT STEPS

The Federal Government has announced that they will be undertaking further consultation and subjecting the recommendations to “expert analysis and stress-testing” prior to providing a response to the Final Report. NIBA has already indicated its support for the Review’s recommendations and will continue to advocate for reform during further consultation with Treasury.

NIBA ANNOUNCES NEW PRESIDENT, VICE PRESIDENT AND DIRECTORS

The NIBA Board welcomes the appointment of Gary Okely, of JLT Public Sector as the Association’s new President, effective from 23 February 2023.

Gary, who was previously Vice President, replaces Dianne Phelan, from BJS Insurance Group whose term as President concluded at this year’s Annual General Meeting held in Sydney on 23 February 2023. Dianne will remain on the NIBA Board as a Director.

“It is very humbling to be appointed as the President of NIBA. I feel privileged

to be able to work with Phil and the NIBA Board to continue the great work done by Di and Eric Harris before her,” said Okely.

NIBA also welcomes the appointment of Nick Cook, from Steadfast as the new Vice President. “I’m truly honoured to be appointed as the Vice President of NIBA. I’m looking forward to taking on a greater role working with Gary and the Board to help influence the future of broking,” said Cook.

Former President, Dianne Phelan, says she’s ready to “hand over the baton”.

“We’ve achieved a lot in the past few years, and we need to continue the work that began, not only in my time as President but from Eric Harris before me. Gary has great ideas to help our industry progress and I’m excited at the prospect of supporting him.”

NIBA CEO Phil Kewin congratulated Gary and Nick on their appointments, “I’ve been working closely with both Gary and Nick, along with the rest of the Board and look forward to continuing to deliver

Top: Adam Squire, Lynette Walsh, Philip Kewin (NIBA CEO), Stella Pruscino, Nick Cook, Gary Okely, Dianne Phelan, Tim Wedlock, Jordyn Gilbert and Steven Hill.

on our key commitments to provide the best outcomes for our members.

“On behalf of all NIBA members, I would also like to take this opportunity to acknowledge Di for her significant contribution to NIBA as President, and we remain thankful that she will retain her position on the NIBA Board.

The NIBA Board also welcomes the appointment of Steven Hill from Capital Innovation Insurance Group and Jordyn Gilbert from Lockton Companies Australia who were voted by members to

PROFESSIONALISM / NIBA Board appointments

be the Qld Divisional Director and WA Divisional Director, respectively.

Steven replaces Heather Peirano who has stepped down from the NIBA Board after six years. We thank Heather for her valuable contribution and insights during this time.

Jordyn has been appointed as the WA Divisional Director, a role previously held by Ward Dedman who retired from the Board in February 2022.

The NIBA Board also welcomes Lynette Walsh from Aon as an

International Director. Lynette replaces Eric Harris who retired from the Board in late 2022.

We thank Eric for the significant contribution he has made to the NIBA Board over the past 10 years, including serving as President from 2019 to 2021.

David Hosking from PSC Insurance Group joins in an additional position representing a listed network, in addition to the existing Steadfast and Austbrokers representatives.

Bottom: Lynette Walsh, David Hosking, Rebecca Wilson and Angie Zissis.

Going further on representation, professionalism and community

New NIBA President Gary Okely says the broking industry has a major opportunity to build on its advocacy and deliver the best client outcomes by further expanding our role as a trusted adviser to government.

Over the past decade, the broking industry has contended with considerable disruption, largely focused on an enhanced regulatory framework. New NIBA President Gary Okely says the work on the Hayne Royal Commission, NIBA’s review of its Code of Practice and delivery of the Quality of Advice Review (QAR) outcomes, underpins his vision for the future of the industry and the value it can continue to drive.

“The three pillars of NIBA’s strategy around representation, professionalism and community have come to the fore over the past few years,” Gary says. “From the representation perspective, the work that NIBA has done with the government has led to a very positive outcome from the QAR. NIBA’s leaders in Di Phelan and, before her, Eric Harris, have created a great foundation with the industry and governments that has been reflected in the very positive outcomes for brokers in Michelle Levy’s report.”

So, where to now? Gary believes there is a logical progression for NIBA. “We do a lot of excellent work in advocacy and the QAR report reinforces this with better broker and client outcomes,” he says. “The net stage of this that I’d like to see is for NIBA to become a trusted adviser to government from a client perspective. This will see governments reach out to NIBA more to work together to achieve better outcomes for our clients.

“There are plenty of challenges around affordability and availability of insurance that present a real opportunity for the broking industry to work with government and support vulnerable communities. We need to work towards an improved focus on mitigation rather than recovery and helping guide the government on longer term investments will be an important way we can deliver better outcomes for our clients.

“While the Federal Government controls our insurance legislation, state governments also have a key role in decision making and funding of the mitigation requirements that will assist the long-term availability and affordability of insurance for the clients of brokers right across the country.”

Outgoing NIBA President Di Phelan has started conversations in this area and she recently commented that “More innovative thinking is needed to find solutions where the market has shifted”. I believe that there is an opportunity for the NIBA Board to further engage with our state Committees, to support their focus on the local issues impacting brokers in their individual states. Some of these are the NSW Emergency Services Levy, impacts from flood and cyclone events in Queensland, workers’ compensation in Western Australia and flood insurance affordability in Victoria and South Australia. While these are state based issues, they have impacts beyond individual state borders and will impact the accessibility and affordability of insurance for our clients.

“Having been born and raised in the country, I have a genuine belief that amazing things come from regional Australia and smaller geographies, so it is vital that small regional brokers through to the large internationals have a voice through NIBA.”

“All brokers should look at these issues through a lens of creation and innovation; and a key part of that for NIBA is working with governments to bring a client lens to these discussions so that businesses, homeowners and broader communities have a voice. We need to encourage government to invest in the right way. NIBA has a strong and unique advocacy role that we can crystallise further and I see that there is a real opportunity for NIBA to do this over the next few years.”

Fostering collaboration

Gary believes the community of brokers will gain significant benefits from the return of an in-person NIBA Convention on the Gold Coast in October. “By our very nature, brokers are relationship driven, social people who thrive on continual learning and collaboration.”

The Head of Public Sector – Pacific, for JLT Risk Solutions, Gary says that as he moves around the country, he sees solid evidence of how the key broker skills of relationship building and engagement are rebounding from the effects of the pandemic.

“Being part of the community is very important. NIBA fosters that with our partners, including insurance partners through such initiatives as the Vero-sponsored Young Broker of the Year award and the QBE-sponsored Broker of the Year award. This is an industry that thrives on networking and personal development and being involved in these industry awards is a great opportunity to expand.

“There is little doubt that the pandemic was tough on those who entered the industry at that time. A number of the young and emerging talent that came into our industry didn’t have opportunities to meet and engage with each other and thankfully this is changing.

“That’s another reason why being able to get back together at the NIBA Convention is so important.

Future-proofing the industry

Adelaide-based, Gary says he is mindful that the NIBA Board is able to represent brokers from right across the country. “Having been born and raised in the country, I have a genuine belief that amazing things come from regional Australia and smaller geographies, so it is vital that small regional brokers through to the large internationals have a voice through NIBA.”

NIBA’s involvement in “Careers In Insurance” will promote more talent joining the industry.

“One area we want to focus on more is developing the story around broking being a career of choice,” Gary says. “We know what a rewarding career it can be; the challenge is to be able to promote that message in schools, and Universities and to school leavers. It’s early days but we have a committed group of volunteers championed by Cameron Sheilds in Victoria working with the NIBA team to build that storybook.”

Former President, Di Phelan from BJS Insurance Group, says she’s ready to “hand over the baton”. “We’ve achieved a lot in the last few years, and we need to continue the work that began, not only in my time as President but from Eric Harris before me. Gary has some great ideas to help our industry progress and I’m excited at the prospect of supporting him. The new Vice-President Nick Cook is another outstanding broker and the industry is fortunate to have both of them volunteering their time.”

Di believes NIBA’s “voice” is unique. “I have no doubt that government sees that as critical to building engagement,

confidence and trust. They can come to Phil as the NIBA CEO and ask questions, which they do on a regular basis, knowing he represents the broking community.

“That’s not to say we haven’t had our challenges; some things aren’t easy to get everyone on the same page. Both Phil and the NIBA Board are continuing to work to bring brokers on a journey of what we know has to be done, so we can make the industry strong and relevant for the future.

“We can be in a room with competitors, but we’re not scared to share our information for the betterment of broking. This philosophy of openness, transparency and having clients’ best interests ahead of our own, gets passed down through generations of brokers because we’re all batting for the same end.”

Di says there is a paramount need to retain representation across Australia on the NIBA Board. “Heather Peirano, from Rockhampton, represented both Queensland and the smaller brokerages admirably in her term on the NIBA Board. Her energy and passion were just extraordinary, particularly at a time when the challenges of northern Queensland have been, frankly, brutal.

“I also wanted to acknowledge Eric Harris – his presidency provided a huge benefit to the industry and what I’ve learned from him has been immeasurable.

“One thing I will say about the NIBA Board is that we don’t always agree and that’s a good thing – it’s something we need – but we have maintained our ability to work together and come up with the right solutions for the industry. That is something of which every Director should be proud.”

A changed expectation

Outgoing Director and former President Eric Harris says the role brokers play as client advocates in the mature Australian market is second to none. “We’ve been challenged by legislation, and regulation controls what we do, but NIBA has been first-rate in its ability to represent the industry and get the outcomes needed with regulators,” he believes. “Then, we leverage the learnings from the global environment so we can deliver for our clients. That was very evident to me from my work with the World Federation of Insurance Intermediaries.

“I’ve enjoyed every minute of my 10 years on the NIBA Board, particularly in the way we’ve been able to define the value proposition of broking. I did want to mention working with Dallas Booth; the way he represented our industry having never sold a policy as a broker was unbelievable and he was a key part of my journey on the Board. The transition to Phil Kewin was seamless –he stepped into big shoes and has done a fantastic job.”

The Head of Asia-Pacific Operations for Aon, Eric says the role and impact of NIBA have changed over his Board tenure. “When I joined the Board, the industry wasn’t as connected as it is today; the work we’ve done around the three pillars of our strategy, particularly representation, has brought the industry together and made it stronger – across all aspects of NIBA, from the staff to the state and Young Professionals Committees. We’ve approached every decision after we’ve taken off our individual company hats.

“But we still have ways to come together; much of our industry still hasn’t woken up to the fact that the expectation of brokers by their customers has changed. We all need to recognise this and adapt. We need to be confident in the value we bring to our clients.”

Broker of the Year 2023

The 11th annual Broker of the Year Awards, proudly sponsored by QBE, are now open for nominations. If you know a colleague or peer who is excelling within the industry, this is your time to show them the recognition they deserve. The Broker of the Year Awards are a fantastic opportunity for top performers with all state winners of the 2023 Broker of the Year Award receiving a prize towards their professional development of $1,500* with The Langley Group and a $500 prepaid Mastercard gift card.

State winners will also receive 1 x NIBA Convention pass and return flights from your nearest capital city to the Gold Coast plus accommodation for two nights to attend the NIBA Convention in October 2023.

The winner of the national 2023 Broker of the Year Award, announced at the NIBA Convention, is selected from the five state winners and will receive a travel experience of your choice valued at $10,000.

Don't miss this opportunity. Nominations close Wednesday 22 March 2023.

Visit the NIBA website for more details about the nomination process and eligibility criteria. niba.com.au/awards

*The personalised professional development packages will be crafted in consultation with each winner and may include a selection of one-on-one coaching sessions, strengths profiles, workshops, and/or online learning packages.

Time to look forward

New NIBA Vice-President Nick Cook says it’s time to stop looking in the rear-view mirror, to take the industry to new heights.

While Nick Cook has spent most of his career with larger broking firms and underwriters, he hasn’t forgotten his roots.

“My career started in Newcastle but then I moved to Tamworth, where it was just me and another person in the office on the high street there,” he remembers. “I went to see clients myself, out on their farms, and I got a strong sense of what regional and country people deal with day to day.”

The past 25 years have been in Sydney, looking at risk and solutions through a corporate lens, but Nick retains his appreciation for the endurance, resilience, and sense of community in rural Australia.

As Executive General Manager – Partner, Broker Services & Agencies for Steadfast, Nick maintains his connections to the bush. “Our Steadfast brokers aren’t centred in office towers around the capital cities, there are thousands of Steadfast brokers looking after their clients, in the main streets of country towns. We try never to lose sight of what our broker network needs and how we can help and support them.”

Having spent over 20 years on the underwriting side of insurance with Zurich, Nick says his appreciation of “both sides of the fence” is a key benefit he will bring to his role as Vice President of NIBA. “I give perspectives on how brokers interact with insurers and what insurers think about that interaction,” he says. “People often talk about the hard market, but for me, it’s just the market, and we need to know where insurers are positioned, what business they are looking for and how they are managing claims, so we can achieve the best for our clients.”

Looking at the major issues confronting the broking industry, Nick identifies the changing demographic of brokers as a concern. “A lot of baby boomers are now entering the retirement phase; they’re the ones who have built brokerage businesses and they are starting to step out, for the younger generation to come through.

“My focus is how NIBA can remain relevant and attractive to that changing demographic. How we can ensure our next generation of brokers stays engaged.”

Nick believes the industry has been distracted in recent years by regulation. “Now that Michelle Levy has released the Quality of Advice Review, for me the regulatory and compliance distraction is starting to ebb. My goal is for us to focus on the positive – to look through the windscreen, not the side or rear-view mirror.

“What is NIBA’s role in the future? How can we deliver on the strategy the NIBA Board puts in place to not only remain relevant but offer a compelling value proposition, across the generations? Each of these has different needs; the one coming through now consumes professional development and networks in a way distinct from the more mature generations. How do we ensure that more mature brokers can fully harness technology to benefit their jobs and their clients?

“We have to bridge the generations and one size does not fit all.”

Nick says NIBA and the Board need to continue to develop strategies that offer newer brokers the benefit of their experience but understand insights come from different and fresh perspectives.

“This is what is going to help build our brand and our profession. I think the focus on regulation has distracted us from painting a better picture of insurance broking. It’s the sort of thing you hear at job Expos; NIBA has a stand, with PwC on one side and Allens on the other. Kids walk in and go either way.

“Then there are the advertisements that show a chartered accountant jogging over Tower Bridge in London. This is something you can do as a broker. We have to find ways of capturing the imagination, of joining the dots in people’s minds that a professional career that offers a great lifestyle and remuneration is available in broking.”

But the conversation goes beyond remuneration. “When Steadfast talks to young people, the salary is not the major thing for them. They want to talk about how this career reflects on the 360 of their lives. Can they ride to work? What is the organisation doing on ESG? What is the position on diversity and inclusion?

“I wouldn’t have considered these things relevant when I joined the industry, but they are key to the conversation now, to get people attracted to insurance and the careers available in broking. And, for me, an important way of demonstrating that comes back to the regional focus, particularly when you look at the major natural catastrophe events we’ve seen, where the broker helps puts people’s lives back together.

“You can’t walk down the main street of Lismore without seeing the forefront of climate change; we need to communicate how cognisant brokers and insurers are in looking at solutions and strategies to really help customers. The next generation wants meaningful work, and this is a great example of how we make a valuable contribution to the community.”

“My focus is how NIBA can remain relevant and attractive to that changing demographic. How we can ensure our next generation of brokers stays engaged.”

Left to right: Lynette Walsh, Steven Hill, Jordyn Gilbert and David Hosking

Thinking fresh

Family is a common way that new generations of brokers enter the industry. For Lynette Walsh, her introduction was a little earlier than most.

“I’ve been in the industry since I was 11; my father owned a brokerage firm in Ireland and I started working for him in the afternoons, in the summer – for sweets,” she recalls, laughing. “I absolutely loved it and worked there all the way through my University degrees.”

Now the National Client Director – National at Aon, based in Sydney, Lynette remains a passionate advocate for the broking industry. Replacing her Aon colleague Eric Harris on the NIBA Board, Lynette says her focus will be on strategies to address what she terms an “undervalued” industry.

“My father, Pat Britton passed away in September last year and my sister now runs the firm,” Lynette says. “One of the reasons I wanted to join the NIBA Board, apart from wanting to help the industry get greater recognition and continue to improve, is that it would be a lovely legacy for my father, who was equally passionate about broking.”

Lynette sums up the value of broking succinctly. “When we do a good job, we are essential to the continuation of people’s livelihoods – and that is central to the economy as well.”

Demonstrating a shared passion for the industry and a willingness to share perspectives, four new Directors have joined the NIBA Board.

From Donegal, a rural part of Ireland’s northwest and close to the Northern Ireland border, Lynette says while broking as a profession is more highly valued in Australia there is still a major opportunity to improve the standing of the industry here. With a master’s degree in strategic management and her undergraduate degree in commerce, she’s keen to attract more tertiary-qualified recruits but says education is not the only factor that makes a successful broker.

“More firms here have graduate programs and internships, so we are starting to see a higher number of people join the industry who have pursued that third level of education,” she says. “It was something I thought was important for me before I joined the industry full-time. But, as part of the NIBA Board, I want to make sure we communicate the desirability of the industry – so that people know it is a great career choice whether they’re leaving school or University.

“A massive challenge for us is access to talent; I think we also need to look at how we can make it easier for people to come from overseas and work here. It’s much harder now to get a visa than when I arrived in Australia 12 years ago.”

Lynette believes diverse thoughts are invaluable in creating a successful Board. “Apart from my experience with big multinational brokerages, I bring perspectives from a small, remote brokerage in Ireland,” she says. “That taught me how crucial it is to get our job right. My father physically held fire hoses at houses he was also protecting through insurance. This is firsthand experience of how vital it is to do a good job before a loss and then ensure the right claims management.

“I have also worked with bigger entities in large and complex industries, and now, in my national role, I also have

the opportunity to collaborate with teams around the country, including Northern Queensland, for example, where there are big issues with affordability. I think it’s a great combination of experience to share with the NIBA Board.”

Jordyn Gilbert joins the NIBA Board from WA. Like Lynette, her introduction to the industry was early in her childhood through family connection and in 2008, she joined Zenith Insurance Services. Now a Senior Account Manager for Lockton Companies, forming part of the newly established division,

Lockton – Zenith Health & Community Services, she says she was shocked to be asked to nominate for the Board position.

“I never considered myself a suitable candidate and, when I got that phone call, that self-doubt immediately kicked in,” she recalls. “My mindset shifted quite quickly though when I realised I was being approached for a reason – to focus on what I could contribute to NIBA.”

Jordyn, the 2019 WA Young Broker of the Year got involved with the WA Young Professionals Committee initially, which was eventually rolled into the state’s Divisional Committee. Keen to

“A massive challenge for us is access to talent; I think we also need to look at how we can make it easier for people to come from overseas and work here. It’s much harder now to get a visa than when I arrived in Australia 12 years ago.”

– Lynette Walsh

“I’m proud to say I’m a broker; I’m passionate about what I do, and I very much value my clients. I believe that our industry is going through a transition period where experienced professionals are moving on and retiring. We need to ensure that their knowledge and skills are shared with the next generation of our ever-evolving workforce.”

– Jordyn Gilbert

change the public profile of broking, Jordyn says acknowledging the industry alongside other professions such as accountants and lawyers is crucial but also to demonstrate key values that resonate with the next generation of recruits.

choose it because they don’t know how fabulous a career it can provide. I’ve not done anything else and haven’t thought for a minute of making a change.”

Steven has had a 25-year association with NIBA, working in various Divisional and Young Professional Committees in Queensland and Victoria. “When I was 18, a family friend was the state manager for a small insurance brokerage, and he had a job available. Four months out of high school I hadn’t decided what I wanted to do but was just focused on being able to get to Australian rules football training. The brokerage’s specialty was sports insurance – that took something I was already interested in and gave it a commercial context. I was able to speak to people in my job, just like the ones I’d grown up with.”

After a couple of years focusing on sports, Steven moved into general insurance. “The same person who got me my first job, Geoff Herbert, taught me I couldn’t protect my client if I couldn’t see into their business. That’s something that has stuck with me my entire career.”

Steven, the 2018 Queensland Broker of the Year, now works remotely in Brisbane from most of the team at Capital Innovation Insurance Group, which is headquartered in Tasmania. “I would say 90% of my clients are in Brisbane but all our support colleagues are in Hobart and Launceston,” he says. “At this juncture of my career, it works well but if I didn’t have the opportunity to walk into my boss’ office and ask questions back then, I would not be the broker I am today.

“That passing on of experience only comes through leading, guiding and mentoring. I’d hate to be starting my career now if I didn’t get the chance to collaborate and I think it’s creating skills gaps that we will end up paying for at some point.”

Having always aspired to be a NIBA Director, Steven says his involvement in various State Committees was predicated on getting the right people involved, to ensure the best possible representation of the industry.

“I’m proud to say I’m a broker; I’m passionate about what I do, and I very much value my clients. I believe that our industry is going through a transition period where experienced professionals are moving on and retiring. We need to ensure that their knowledge and skills are shared with the next generation of our ever-evolving workforce.

“Recently in WA, the Divisional Committee has collaborated with St Georges College to hold an intimate dinner event where insurance professionals are invited to attend and share their experience of working in our industry. This has been extremely successful, with a number of attendees opting to join the industry in various positions post graduation. The event opened their eyes to how good a career in insurance can be and that a big range of skills are transferable and valuable”.

Another board addition is Queensland’s Steven Hill, who joined the industry in 1998. While he says the industry was different then, the profession faces the same challenges. “Far too few people

“I’m a working broker, so I think that will give some valuable insights for the Board. I also wanted to ensure that Queensland members have a voice at the table. We need to keep the conversation alive to try to solve the problems faced across the country in terms of access to cover, but the situation is atrocious in northern Australia. I’m not afraid to put my point of view across but I try to do it respectfully. That’s the hallmark of everyone getting involved at this level with NIBA.”

Former NIBA President Di Phelan says the new Board Directors represent an exciting future for the industry and is looking forward to working with them all, including PSC Insurance Group Chief Executive Officer David Hosking, who has significant broking and underwriting experience.

“I’d like to welcome Jordyn, Steven, Lynette and David and I’m looking forward to their fresh ideas and perspectives. It’s important to have a diversity of experience.”

“I’m a working broker, so I think that will give some valuable insights for the Board. I also wanted to ensure that Queensland members have a voice at the table. I’m not afraid to put my point of view across but I try to do it respectfully. That’s the hallmark of everyone getting involved at this level with NIBA.”

– Steven Hill

RAMPING UP CYBER RISK MANAGEMENT

By MARTIN WANLESS

If the threat of a cyber breach wasn’t firmly on every business’s radar prior to 2022, the Optus and Medibank breaches firmly planted it right in the centre of every Director and business owner’s consciousness.

But, while the widespread impact of those breaches made for significant media coverage, it’s a threat that’s been around for more than a decade – and shows no sign of abating.

“Cybercrime has been steadily increasing over the past 10-plus years,” says Troy Filipcevic, CEO of Emergence Insurance.

“Committing crime over the internet has proven to be both very lucrative and relatively safe, with most perpetrators never being caught. According to the Australian Cyber Security Centre (ACSC)’s Annual Cyber Threat Report, they received 76,000 cybercrime reports in the 12 months to July 2022, a 13 per cent increase compared to the previous year.”

What the Optus and Medibank breaches did do, however, was heighten awareness and scrutiny across the board – and with litigation to follow, it’s going to be a space to watch with interest.

With ASIC’s recent ‘Directors beware’ warning, the Privacy Legislation Amendment Bill, which increased the maximum penalties for serious or

repeated privacy breaches from $2.2m to $50m (or three times the value of any benefit obtained through the misuse of information, or 30 per cent turnover –whichever is greater) and the investigations into Medibank, it’s clear that businesses are expected to do far, far more than many were in previous years.

“The heightened awareness is positive, and the number of businesses enquiring about cyber insurance for the first time, has noticeably increased,” says Richard Smith, Head of Cyber and Regional Manager at Blue Zebra.

“The litigation that will follow the Optus and Medibank attacks will be closely observed by cyber insurers as it will probably lead to a more litigious environment in respect to cyber breaches.”

MANAGING TODAY’S RISKS

Cyber’s the most dynamic and evolving area of insurance, and as such, insurers, brokers and clients are having to continually ensure they’re managing the risk of today, and not last year.

Good risk management practices are now a non-negotiable, says Rob Collyer, Underwriting Development Manager at Nova Underwriting.

With the threat of cybercrime evolving by the day, it’s essential businesses’ cyber security, risk management, and training are fit for purpose.

FEATURE / Cyber Insurance

“Insurers now ask more detailed questions around current risk management practices in place. It is now a case of if they do not have minimum levels of risk management, then the insurer will not quote, rather than quote higher deductibles or premium loadings as they did in years past.

“As an underwriter, we need to see that a client is aware of their cyber exposure and is actively undertaking a certain level of risk management.”

Absolute minimum, says Collyer, is multi-factor authentication for remote access, adequate anti-virus protection, regular deployment of patches/updates, regular employee awareness training on information security and privacy and regular off-site backups.

“We need to see that the client has an incident response plan in place along with a written business continuity/disaster recovery plan.

“For larger businesses, we then start to look at intrusion detection and prevention, Endpoint Detection and Response (EDR), the use of Privileged Access Management (PAM) tools and the presence of a Security Operations Centre (SOC) – and if this is monitored 24/7.”

THE VALUE OF EMERGENCY RESPONSE

The hidden gem within a cyber insurance policy, says Blue Zebra’s Richard Smith, is the Emergency Response capability that most policies provide.

“This Emergency Response provides insureds 24/7 access to specialist cyber/privacy lawyers, expert IT forensic consultants and ransomware negotiation specialists. In reality, SMEs, without a cyber insurance policy, would not have access to such expertise.

“Imagine the scenario: your small business has just been hit with a ransomware attack, and the attacker has just sent you a sample of your most sensitive and confidential information (to prove they have it). You are being told you have 18 hours to pay 10 bitcoin, otherwise, all your information will be sold and also released publicly on the internet.

“Where would most SMEs start? Who are you dealing with? How do you know they have your data? Should you pay the ransom? How do you know you will get your information back, even if you pay? How do you send them 10 bitcoin? Will they accept a smaller amount? Is it legal to pay the ransom? Do you need to tell the police? Do you need to tell the OAIC (Office of the Australian Information Commissioner)? Do you need to tell all your customers? Are you and your staff safe? Are your customers safe?

“Emergency Response experts will help remove any current threats, secure your business against further compromise and provide priceless assistance and advice. Also, the Emergency Response has already been paid for within the insurance policy so it is far cheaper than a business trying to engage its own IT providers and lawyers, who may not be specialists in this field.”

“ACCORDING TO THE AUSTRALIAN CYBER SECURITY CENTRE (ACSC)’S ANNUAL CYBER THREAT REPORT, THEY RECEIVED 76,000 CYBERCRIME REPORTS IN THE 12 MONTHS TO JULY 2022, A 13 PER CENT INCREASE COMPARED TO THE PREVIOUS YEAR.”

TROY FILIPCEVIC, CEO, EMERGENCE INSURANCE

Jodie Piddington, Executive Director at 360 Cyber, agrees: “At a minimum, they need to have business-grade anti-virus and firewalls. They need to make sure their data is backed up every seven days and that their critical patches are deployed at least every 30 days.

“Two-factor/multi-factor authentication is moving from a ‘nice to have’ to an absolute necessity, while email security protocols like DKIM (Domain Keys Identified Mail), SPF (Sender Policy Framework) and DMARC (Domain-based Message Authentication, Reporting, and Conformance) are nice to see on any submission.“

The governance of IT security and privacy within an organisation is often telling, says Smith.

“Businesses should engage IT security expertise (either external or internal) to help guide their security requirements, and cyber risk should be a major consideration for Boards and Senior Management.

“Documentation, such as Incident Response and Notifiable Data Breach

Response Plans are usually a strong indication of a business’s focus on the risks, and detailed, compliant documentation is very favourably looked upon by insurers.”

THE NEED FOR CONTINUAL TRAINING

Of course, it’s well understood that people are often the weakest link in the cyber security chain, and awareness training remains an essential part of keeping a business safe. Prevention is, indeed, better than cure.

Collyer says, “Many of the losses we see arise from an employee clicking on an infected link or paying an invoice to a fraudulent account.

“These are easily preventable exposures. Even if the client has all the software protection and processes in place, it could all come down to an employee error that allows the cybercriminal access to their entire network.

“It is essential clients regularly educate their staff on what they should be looking out for.”

It is important to note, however, that oncea-year cyber security training is no longer considered adequate by many insurers.

Filipcevic says, “Training must include modules dedicated to both cyber security and privacy as separate and distinct domains. There is a strong move toward continuous training models with short five-ten minute targeted pieces of training per month, rather than one longer training each year.

“This new model ensures the training remains effective year-round rather than for only a few days once a year.”

And businesses are increasingly understanding their own role in keeping themselves cyber safe.

Collyer says, “We have seen a great deal of change over the past 18 months in the way businesses look at their cyber exposure. We see a lot more companies take increased levels of responsibility for their own risk management.

“This may be as a result of the very public data breaches of recent times but also

“THE HEIGHTENED AWARENESS IS POSITIVE, AND THE NUMBER OF BUSINESSES ENQUIRING ABOUT CYBER INSURANCE FOR THE FIRST TIME, HAS NOTICEABLY INCREASED.”

RICHARD SMITH, HEAD OF CYBER AND REGIONAL MANAGER, BLUE ZEBRA

FEATURE / Cyber Insurance

a result of the necessity to put processes in place to be eligible for cyber insurance. There are many more specialist firms around today to help clients through the cyber risk management process. Often as part of a cyber insurance policy, the client will have access to these services if they do not have a point of contact themselves.”

From an insurance perspective, Piddington says that it’s continually evolving, and greater awareness will equate to long-term sustainability.

“The product is still rapidly evolving as more business owners opt-in to the product, the premium pool is increasing, which will bring longer-term sustainability of the portfolios. With that, premiums will

shift and somewhat stabilise as the premium vs loss size ratio becomes more equitable.”

Smith says that greater levels of standardisation are needed to help mature what is still a young market.

“Due to the early stage development of the cyber insurance market here in Australia, wordings are not standardised and can vary enormously between one insurer and another,” he says.

“To add to this complexity, different terminology is used by different insurers in wordings and also underwriting applications. It is, therefore, imperative that brokers understand these differences, as the cover provided to their clients can vary significantly.

“I have seen a trend of brokers appointing a cyber “specialist” to ensure that their clients can navigate through the coverage differences, but also to maximise the opportunity that brokers have to distribute this relatively new insurance product to their clients. Many brokers still have very low take-up rates within their client base for cyber insurance, and this leaves both them and their clients exposed.” That exposure leaves businesses extremely vulnerable.

After all, as Piddington says, “It’s not a matter of if but when businesses fall victim to a cyber incident.”

And that hard-hitting dose of reality could see take-up rates increase dramatically.

“WE HAVE SEEN A GREAT DEAL OF CHANGE OVER THE PAST 18 MONTHS IN THE WAY BUSINESSES LOOK AT THEIR CYBER EXPOSURE. WE SEE A LOT MORE COMPANIES TAKE INCREASED LEVELS OF RESPONSIBILITY FOR THEIR OWN RISK MANAGEMENT.”

ROB COLLYER, UNDERWRITING DEVELOPMENT MANAGER, NOVA UNDERWRITING

Specialist Underwriter

YOUR CLIENT’S EXPOSURES IN CYBER ARE CONSTANTLY CHANGING AND SO TOO IS OUR COMPREHENSIVE CYBER PRODUCT.

Contact Rob Collyer to find out more about our coverage benefits including:

• Access to resources to help you prepare your business for a cyber incident.

• Access to an Incident Response Manager to guide you through the incident response process, providing additional resources if & when required.

• Access to 80+ fit-for-purpose & multi disciplinary vendors to ensure your needs are met.

• Access to global best practice cyber risk management experts to help you navigate the latest cybersecurity laws and regulations.

Experience and expertise that you and your clients deserve.

Nova Underwriting Pty Ltd novaunderwriting.com.au

rob@novaunderwriting.com.au

CASE STUDY: EMERGENCE INSURANCE’S TROY FILIPCEVIC SHARES A CASE STUDY FROM A RECENT RANSOMWARE ATTACK.

“We have seen a recent ransomware attack involving a professional services firm which demonstrates the need for effective and immediate incident response.

“The firm was notified by the Australian Cyber Security Centre (ACSC) of an imminent Lockbit ransomware attack. The firm then subsequently notified Emergence of the alert. Emergence began to provide immediate incident response assistance through our in-house Cyber Breach Coach.

“A Digital Forensics and Incident Response (DFIR) vendor was immediately engaged by Emergence.

“The immediate response helped to contain the threat actor from fully

deploying the ransomware. It was identified that the threat actor had access to the systems for at least one month prior and had exfiltrated a significant amount of data.

“A legal vendor was appointed to provide privacy/legal advice and conduct the notification obligation to the OAIC. This notification process all occurred within 30 days of discovery of the event, with the OAIC closing their file in near record time due to the thoroughness of the notification process.

“Approximately 3,000 individuals, including current and former clients, were notified of the data breach. Identity/credit

monitoring services were provided through IDCare. Public Relations/ Crisis Management costs were also covered, which helped mitigate the reputational impact on the firm and helped to manage some media reports of the breach.

“This claim shows the importance the Australian Government can play through the ACSC in alerting companies to imminent attacks, as well as demonstrating the need for companies to take these alerts seriously, immediately engage their incident response plan and advise their cyber insurer so that effective and immediate incident response assistance can be provided.”

“AT A MINIMUM, THEY NEED TO HAVE BUSINESSGRADE ANTI-VIRUS AND FIREWALLS. THEY NEED TO MAKE SURE THEIR DATA IS BACKED UP EVERY SEVEN DAYS AND THAT THEIR CRITICAL PATCHES ARE DEPLOYED AT LEAST EVERY 30 DAYS.”

JODIE PIDDINGTON, EXECUTIVE DIRECTOR, 360 CYBER

THE IT PROFESSIONAL CLAIMS LANDSCAPE IN 2023

10 tips to help IT professionals and their brokers

As we move into 2023, it appears claims against IT professionals following cyber events are following last year’s trend and continuing to increase. Although these claims arise in several ways, managed services providers (MSPs) and cloud services providers (CSPs) that are responsible for hosting the data of their clients continue to be common targets for cyber criminals. The pressure these IT professionals face from their clients to resolve the cyber incident (i.e. pay the ransom) often provides significant leverage in favour of the cyber criminals.

While MSPs and CSPs are not always the direct victims of a cyber incident, they can often be blamed when a client suffers a cyberattack. These allegations typically involve arguments that the MSP or CSP was responsible for the client’s cyber security posture and/or backup management, which can be crucial in minimising the impact of a cyber incident.

TYPICAL CLAIMS

Claims against IT professionals are typically founded on an allegation that:

• the MSP/CSP did not have adequate cybersecurity measures in place to prevent attacks against it in the case of direct cyberattacks against MSPs / CSPs, or

• the IT professional did not implement or recommend adequate cybersecurity measures in the case of cyberattacks against clients of IT professionals.

The claims are typically framed in negligence, breach of contract and/or breaches of consumer law, such as misleading or deceptive conduct or consumer guarantees. Affected clients typically seek compensation for the costs of responding to the incident, reconstituting and/or recovering their data, and business interruption.

We offer 10 tips to help IT professionals (with the assistance of their brokers) avoid being exposed to these type of claims and the associated legal defence costs.

Tip #1 – Get the contract right

In any contract imposing an obligation on the IT professional to provide, or advise on, cybersecurity, it is important to clearly define responsibilities and avoid any ambiguity. This should include specifying the obligations and limitations of the IT professional’s services, identifying any aspects of the client’s cybersecurity that are not the responsibility of the IT professional, and bringing any relevant terms and conditions (e.g. limitation of liability clauses) to the client’s attention.

It’s worth noting many insurers offer a limited number of contract reviews per policy year.

Tip #2 – Be careful and skilful

To state the obvious, if an IT professional is responsible for cybersecurity, they should exercise due care and skill in providing their services. That will likely include identifying, documenting and communicating any cybersecurity vulnerabilities, and ensuring that they do everything within their power (e.g. patching) to reduce the risk profile in line with their contractual obligations.

Tip #3 – Document all client conversations

IT professionals should document any recommendations or warnings they provide to clients around cybersecurity, to support any potential future argument regarding whether they properly discharged their obligations.

Tip #4 – Check automated security and retention processes

IT professionals should regularly check that automated security or retention processes are working as intended. It only takes one instance of failure to create a claim risk.

Tip #5 – Don’t rely on the limitation of liability clause

Often limitation of liability clauses are not the lifesaver that IT professionals

By Stephen Morrissey Special Counsel, Wotton + Kearney

expect. They can be vulnerable to the operation of the unfair contract terms regime in the Australian Consumer Law as liability clauses usually don’t apply to consumer law allegations, such as misleading or deceptive conduct.

Tip #6 – Respond proactively to an incident

IT professionals should consider third party claims mitigation during the incident response phases following a cyberattack. If an IT professional takes proactive steps to support its clients following an incident, experience tells us that this can significantly reduce claim risk.

Tip #7 – Take other mitigation steps

IT professionals should also consider taking other mitigation steps, including forensic investigations that focus equally on how clients have been impacted, as well as planned and periodic client communications in the immediate aftermath of an incident.

Tip #8 – Say no

If cybersecurity is not within an IT professional’s expertise, they should not pretend that it is. Only bad things can happen from doing so.

Tip #9 – Contact the broker and insurer quickly

It is important that IT professionals contact their broker as soon as they become aware of an incident. Brokers can assist in notifying the insurer and advising on the next steps.

Tip #10 – Plan for the worst Wotton + Kearney regularly assists brokers and their IT professional clients with risk mitigation strategies and breach management plans. These are designed to put IT providers in the best position possible to manage risks, guard against cybercrime and respond to third party claims.

ADVERTORIAL / Wotton + Kearney

THE EYE OF A PERFECT STORM

In the strata and landlord space, the issues that we’ve been facing across many categories of insurance are incredibly prominent – and have created something akin to a perfect storm. Rising inflation? Tick. Catastrophic weather events? Tick. Supply chain difficulties, labour shortages and scarcity of materials? Tick, tick, tick.

And as a result, claims costs have increased, resulting in upward pressure on premiums – causing concern for brokers and customers alike.

“There has been a lot of attention of late on inflation, and as we see interest rates on the rise and the cost of living increasing, we are also seeing the supply chain costs, including labour and materials, on the up and up,” says Andrew Robson, General Manager of SUU.

“As well as inflation, we’re contending with increased costs in re-insurance, which is a global market impacted by international events as well as local events, and both impact premiums. This weather event frequency, intensity and volatility,

both locally and globally, is driving strong increases in reinsurance costs. This, coupled with the increasing average claims cost, is putting pressure on portfolio performance resulting in premiums rising year on year.”

THE UNDERINSURANCE TRAP

Of course, when belts are being tightened, insurance is often the first thing to be reviewed. And for strata insurance and landlord insurance policyholders and their brokers, it’s essential to review sums

For strata insurance and landlord insurance, a perfect storm has hit. Have you reassessed your clients’ sums insured recently? If not, now’s the time.

BY MARTIN WANLESS

insured. After a number of years of serious property value growth followed by an inflationary environment in which the cost of goods and services (including tradies) has increased significantly, it’s likely those sums insured aren’t at the level they should be today.

Kimberly Jonsson, CEO at CHU, says, “As a result of the market forces, one of the key issues that has arisen is underinsurance.

“Before the pandemic, annual percentage changes in building sum insured (BSI) amounts at CHU had remained roughly in line with changes in CPI and actual building costs. However, building costs have been growing rapidly, creating an ever-increasing gap between building sums insured, and the actual costs of repairing or rebuilding, leading to underinsurance.

Jonsson says that, according to their data, a surprising number of clients have maintained their sum insured.

“CHU has seen this growing concern in the past 12 months with 42% of customers

maintaining their current sum insured and only approximately one-third adopting the suggested indexation on their sum insured,” she says.

“The likelihood that owners will find themselves underinsured is rising and will continue to rise as we continue to see inflationary pressures, material shortages and labour shortages tipping the balance of supply and demand of repair and maintenance products and services,” says Jonsson.

Underinsurance is a concern throughout the industry, and it’s something that’s particularly important to discuss with clients now, given the headline-grabbing inflation we’re witnessing.

Barnaby Williams, General Manager of Acerta, the intermediary division of Guild Insurance, says, “No one wants a customer to be underinsured. It is a bad situation for all parties involved.

“What we’ve seen in the last 18 months is increasing inflation, which has made

“AS WELL AS INFLATION, WE’RE CONTENDING WITH INCREASED COSTS IN RE-INSURANCE, WHICH IS A GLOBAL MARKET IMPACTED BY INTERNATIONAL EVENTS AS WELL AS LOCAL EVENTS, AND BOTH IMPACT PREMIUMS.”

– ANDREW ROBSON, GENERAL MANAGER, SUU

the reinstatement cost of a building – in this case, an investment property – increase.

“It’s really important that brokers encourage their clients to have adequate sums insured and do periodic assessments of what the insurance reinstatement cost valuation is. Because unfortunately, in many people’s minds, they confuse the sale value

of their property with the replacement value of their property, but the two things are completely different.”

RENTAL REPAYMENT TROUBLE AHEAD?

While total loss scenarios are the ones that often most impactfully illustrate the benefit of having the right insurance cover, the day-to-day reality often includes more everyday occurrences – and water damage is high up on that list.

“Burst pipes and water damage claims continue to play a major role in the loss ratio of strata portfolios, with many of these claims resulting from flexi-hoses that fail due to age or deterioration,” says Robson. “It’s a relatively inexpensive item in its own right, however, when they fail, the results are costly.

“Preventative maintenance and inspection of these types of exposures would assist with the reduction of claims,

therefore, reducing the pressure on portfolio performance.”

From a landlord insurance perspective, it’s a similar story.

“The most common, smaller claim type is water damage within a property due to some issue with the plumbing in the premises,” confirms Williams.

Another common claim with landlord insurance is tenants defaulting on rental payments. But, while we are seeing news reports emerge of mortgage holders missing repayments due to the soaring interest rates adding hundreds – if not thousands – of dollars to their monthly repayment, Williams says the environment today doesn’t directly correlate to the risk of tenants missing payments.

“The rental market is incredibly tight – there’s a low vacancy rate of properties across Australia – so while everybody is feeling the pinch with the increased cost of living, employment rates remain incredibly high in Australia.

“AS A RESULT OF THE MARKET FORCES, ONE OF THE KEY ISSUES THAT HAS ARISEN IS UNDERINSURANCE.”

– KIMBERLY JONSSON, CEO, CHU

Do less admin.

Our Momentum portal helps our partner brokers provide tailored solutions for property investors, while also automating the policy administration in the back end.

By partnering with our team of experienced underwriters and in-house risk management service, your brokerage can help take the stress out of investment property ownership for all of your clients, offering insurance solutions that provide:

> Customisable cover

> In-house risk surveying capabilities

> Full accidental damage cover

> Commercial property cover for multi-occupancy tenancy and resi-commercial properties

> Full flood cover (subject to underwriting)

> Risks covered for up to $20 million per location (Property and Liability Coverage)

> Residential Landlords Tenant Default coverage

“Tenant default tends to be linked more with unemployment rates, because when people lose their jobs, then they can’t pay for a roof over their heads. And right now, the unemployment rate is still near historic lows, and the available stock of rental properties are also at historic lows.”

For brokers, it’s an opportune time to have conversations with clients about the right levels of cover – and for strata clients, ensuring they have landlord cover, too.

Jonsson says, “It is more critical than ever to minimise risk as a landlord with an investment property. Landlord insurance is essentially a safety net for unforeseen events, including accidental or malicious damage, rental income loss and associated legal fees.

“Brokers should suggest more frequent inspections, ensuring the property is well maintained and keeping the lines of communication open between owner, agent and tenant.”

CASE STUDY: WHY LANDLORD AND STRATA IS A POWERFUL COMBINATION

Following a hailstorm, water leaked through a broken roof tile directly into the apartment underneath and into the owner’s main bedroom.

The owner rented out the apartment fully furnished, and water damage was sustained to the ceiling, walls, bedroom, carpet and television.

While the residential strata insurance policy covered the repairs to the ceiling, carpet and walls, the owners also had to replace the bed and television, which was not covered under the strata policy.

Luckily as the owner had landlord’s insurance, they were not left out of pocket due to the unforeseen incident.

CASE STUDY PROVIDED BY CHU

PROVIDING PEACE OF MIND TO THE AUSTRALIAN STRATA COMMUNITY SINCE 1999

“UNFORTUNATELY, IN MANY PEOPLE’S MINDS, THEY CONFUSE THE SALE VALUE OF THEIR PROPERTY WITH THE REPLACEMENT VALUE OF THEIR PROPERTY, BUT THE TWO THINGS ARE COMPLETELY DIFFERENT.”

– BARNABY WILLIAMS, GENERAL MANAGER, ACERTA

Delivering

Occupations Vacant Properties incl Heritage listed properties.

• EPS Risks / Food & Beverage Manufacture / Distribution

• Remote & Timber Pubs / Wineries / Distilleries

• Plastics / Timber Manufacturing

• High-hazard storage – Chemicals, Tyres

• North Australia – Traditional & Parametric options Waste & Recycling

• Renewable Energy Storage & Production

• CAR / Erection All Risks (+10M)

The difficult made

Target Liability Risks

• Asbestos Removal / Demolition / Earthmoving Contractors

• Abattoirs / Seafood Processing / Food & Beverage

• Civil Engineers & Construction (+10m t/o)

COMMUNITY HUB

Accommodation

Agistment

Animal & Petting Zoo

Breeding & Studs

Carriage Driving

Clinic Organisers

Clinics

Coaching

Dentists

Equine Assisted Learning

Equine Assisted Therapy

Equine Associations

Equine Events

Facility Hire Farriers

Horse Carriage Driving

Horse Trainers

Massage Therapists

Pe

Pony Parties

Pony Rides

Pre-training & Breaking Rehabilitation

Riding Clubs

Riding Schools

Saddle

Key Liability Occupations:

• Alternative & Complementary medicines

• Automotive

• Biotechnology

• Clinical Trials / Research

• Cosmeceuticals / Nutraceuticals

• Defence – machinery, weaponry & protective equipment

• Life Science / Pharmaceuticals

• Medical & Surgical Devices (including invasive implants)

• Medical Equipment / Products

• Medicinal Cannabis

• Mining

• Rail – Products, Maintenance, Locomotive Engineering, operators, Rolling Stocks & Engine Manufacturers

• Universities

• Veterinary Medicines

Key PI Occupations:

• Accountants

• Architects

• Engineers

• Environmental Consultants

• Insurance Brokers / Underwriting Agencies

• Law Firms

• Management Consultants

• Miscellaneous Risks

• Real Estate Agents

• Universities

• Valuers

At Newline Australia, we underwrite: Life Science, Clinical Trials, Public & Products Liability insurance, Professional Indemnity (PI) insurance, Financial Institutions insurance, Directors & Officers insurance and Crime insurance Will Clarke

Key FI Occupations:

• Fund Managers/Investment Managers

• Stock Brokers

• Managed Investment Schemes

• Excess lines for Financial Planners

Key D&O

• Insured firms can be not-for-profit, privately held or publicly traded

• Side A/DIC placements

• Medicinal Cannabis risks

• All industry sectors, both commercial and financial, are underwritten

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

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

• 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

QPIB – A STATEMENT OF PROFESSIONALISM

Apply online at niba.com.au or email NIBA

•

QUALIFIED PRACTISIN G INSURANCE BROKERQPIB

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

– CRAIG ANDERSON, 2018 YOUNG BROKER OF THE YEAR

INSURER STRENGTH RATINGS

BEST’S FINANCIAL STRENGTH RATINGS

The following is a list of AM Best Financial Strength Ratings (FSRs) assigned to insurance companies in Australia and New Zealand. Ratings as at 22 February 2023

Contact: Mr. Rob Curtis

Co-CEO & Managing Director

A. M. Best Asia-Pacific (Singapore) Pte Ltd.

Tel: +65 9633 6118

Email: rob.curtis@ambest.com

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.

The NEXT generation

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After 4 years of development, we are happy to introduce WinBEAT NEXT: A browser-based software program designed specifically for General Insurance Intermediaries.

WinBEAT NEXT combines a state-of-the-art software environment with a feature-rich processing environment.

You no longer have to rely on your IT provider to perform upgrades or updates. The Ebix Australia team takes care of everything. Register your interest for WinBEAT NEXT via the link below.

ebix.com.au/winbeatnext2023

Data security and integrity

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INSURER STRENGTH RATINGS

S&P GLOBAL INSURER FINANCIAL STRENGTH RATINGS

The following is a list of S&P Global Ratings insurer financial strength ratings assigned to insurance companies in Australia and New Zealand. Ratings as at 24 February 2023

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

NEW ZEALAND RATING

NON-LIFE INSURERS

AA Insurance Ltd.

AIG Insurance New Zealand Ltd.

Aioi Nissay Dowa Insurance Co., Ltd

Allianz Australia Insurance Limited

Berkshire Hathaway Specialty Insurance Company

Chubb Insurance New Zealand Ltd.

Factory Mutual Insurance Company

Great Lakes Insurance SE

Hallmark General Insurance Co. Ltd.

Hannover Life Re of Australasia Ltd.

IAG New Zealand Ltd.

Medical Insurance Society Ltd.

Mitsui Sumitomo Insurance Co. Ltd (New Zealand Branch)

QBE Insurance (Australia) Ltd.

Society of Lloyd’s

Southern Cross Benefits Ltd.

Southern Cross Pet Insurance Ltd.

Teleco Insurance (NZ) Ltd.

The North of England Protecting and Indemnity Association Ltd.

Tokio Marine & Nichido Fire Insurance Co. Ltd. (New Zealand Branch)

Vero Insurance New Zealand Ltd.

Vero Liability Insurance Ltd.

Zurich Australian Insurance Ltd.

HEALTH INSURERS

NIB NZ Ltd.

Southern Cross Medical Care Society

LENDERS MORTGAGE INSURERS

Helia Insurance Pty Ltd. (New Zealand Branch)

QBE Lenders’ Mortgage Insurance Ltd.

LIFE INSURERS

Asteron Life Ltd.

Hallmark Life Insurance Co. Ltd.

Medical Life Assurance Society Ltd.

NIB NZ Insurance Ltd.

REINSURERS

HDI

AA-/STABLE

A/NEGATIVE

A+/STABLE

AA-/STABLE

AA+/STABLE

AA-/STABLE

A+/STABLE

AA-/STABLE

BBB+/CreditWatch Negative

AA-/STABLE

AA-/STABLE

A/STABLE

A+/STABLE

A+/STABLE

A+/STABLE

A/STABLE

A/STABLE

BBB+/STABLE

A/STABLE

A+/STABLE

AA-/STABLE

AA-/STABLE

AA-/STABLE

A-/STABLE

A+/STABLE

A/STABLE

A/STABLE

AA-/STABLE

BBB+/CreditWatch Negative

A/STABLE

A-/STABLE

Hallmark Life Insurance Co. Ltd.

Insurance Ltd.

Aspen Insurance UK Ltd.

Insurance Company

General Reinsurance Australia Ltd.

General Reinsurance Life Australia Ltd.

Hannover Life Re of Australasia Ltd.

Hannover Rück SE

HDI Global SE

HDI Global Specialty SE

Munchener Ruckversicherungs-Gesellschaft (Munich Reinsurance Co)

Munich Reinsurance Co. of Australasia Ltd.

Pacific Life Re (Australia) Pty Ltd

QBE Blue Ocean Re Ltd.

RenaissanceRe Europe AG

RGA Reinsurance Co. of Australia Ltd.

SCOR Global Life Australia Pty Ltd.

SCOR Reinsurance Asia Pacific Pte Ltd.

Swiss Re Asia Pte. Ltd., (Australia Branch)

Swiss Re International SE

Swiss Re Life & Health Australia Ltd.

Transatlantic Reinsurance Company

AA-/STABLE

AA-/STABLE

AA-/STABLE

A+/STABLE

A+/STABLE

AA-/STABLE

A+/STABLE

A+/STABLE

AA-/NEGATIVE

AA-/NEGATIVE

AA-/NEGATIVE

AA+/STABLE

* See page 59 for S&P Global disclaimers and additional information

NIBA launched the 2022 Insurance Brokers Code of Practice on 1 March 2022, and it came into effect on 1 November 2022. It is important that all members have implemented the necessary policies and procedures to comply with their new Code obligations. A number of resources are available on the NIBA website to assist members in implementing the Code.

XXL PROPERTY COVER

Whether your clients are looking to insure a small commercial property or a large corporate risk, CGU has it covered. Backed by of one of Australia’s largest general insurers, coupled with a strong, sustainable approach to risk and long term stability, your clients can be confident that we have a commercial property solution that fits their needs.

For more information, contact your Broker Relationship Partner.