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ALUCA TurksLegal Scholarship 2013

Applications close 5.00pm (Sunday) 4 August 2013


Having worked in other personal insurance settings prior to life insurance, I didn’t come across the ALUCA TurksLegal Scholarship until 2012. I was encouraged by the opportunity to submit an application based on the variety of topics available all of which were relevant to our industry. I chose to write on the topic of early intervention and return to work, something I am extremely passionate about and as rehabilitation professional, we very much promote the philosophy that work is good for you!

Carly Van Den Akker

Claims Medical Specialist Assistant Vice President Claims, Accounting & Liability Management 2012, Swiss Reinsurance Company 2012 ALUCA TurksLegal Scholarship Winner

To win first prize and travel to New York for the Eastern Claims Conference was absolutely brilliant. I really enjoyed the variety of conference sessions available to attend – it was difficult to choose a favourite however ‘The Economy and/ or Psychological Impairment?’ was an excellent session that highlighted the global challenges of mental illness claims and the impact of the economic environment on prevalence and return to work. In addition, working for Swiss Re meant I was able to visit some of our US offices to meet and network with life and health colleagues and to share research from my paper on early intervention. My trip wasn’t all business – I got to stay at the iconic Waldorf Astoria, cheer on the New York Knicks at Madison Square Garden, shop up a storm and check out one of the world’s most exciting cities from the ‘Top of the Rock’ … and that’s just to name a few highlights! I can’t thank TurksLegal and ALUCA enough for this opportunity and for inspiring thought leadership in our industry. Don’t miss out this year – I encourage everyone to get involved and enter the 2013 ALUCA TurksLegal Scholarship.

ALUCA TurksLegal Scholarship 2013

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About the Scholarship

Prizes

The ALUCA TurksLegal Scholarship is designed to support the professional growth of ALUCA and its members by providing a significant career development opportunity for professionals working in the life insurance industry.

Winner

2013 Judging Panel The judging panel for the ALUCA TurksLegal Scholarship comprises senior industry professionals who have a broad wealth of knowledge and industry experience. This year’s judges are: • Duncan West, Executive General Manager of Insurance, MLC and NAB • Paul Rayson, Managing Director, CommInsure • Simon Swanson, Managing Director, ClearView • Phil Hay, Head of Life Insurance, BT Financial Group • Brian Sussman, President, ALUCA • Tony O’Leary, Executive Officer, ALUCA • John Myatt, Partner, TurksLegal • Alph Edwards, Partner, TurksLegal • Darryl Pereira, Partner, TurksLegal

Entry criteria Your submission (word limit of 2,500 words) will be assessed on: • • • • •

understanding and insight of the chosen topic research foundation and conclusions supported by sound evidence clarity of thought commercial insight presentation.

The winner of the Scholarship receives a package valued up to AU$8,000 including return travel, accommodation, $1,000 cash and registration to one of the following overseas conferences of their choice: 2014 Eastern Claims Conference 16 - 19 March 2014, Indianapolis, IN

2014 LOMA Life Insurance Conference 7 - 9 April 2014, Chicago, Illinois

2014 DI & LTC Insurers’ Forum Date TBC, Location TBA

2nd Prize Winner of 2nd prize will receive a AU$1,000 Visa pre-paid gift card. 3rd Prize Winner of 3rd prize will receive a AU$250 restaurant voucher.

Announcement of winners The winners will be announced at MiniLuca in Sydney on Wednesday 4 September 2013. Applications for the ALUCA TurksLegal Scholarship open on Tuesday 18 June 2013 and close at 5:00pm on Sunday 4 August 2013.

Who can enter The Scholarship is open to all members of ALUCA regardless of country of residence. Each entrant must be a current financial member of ALUCA and work in the life insurance industry. Lawyers, accountants or medico-legal consultants who meet the above criteria are eligible to enter provided they are direct employees of life insurance companies, life reinsurance companies, superannuation trustees or superannuation administrators.

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Questions Answer ONE of the following 10 questions. The content of your submission must be no more than 2,500 words. Q1:

Insurance Management Framework

The Stronger Super reforms place an increased emphasis on the role of insurance in superannuation and require trustees to have a documented insurance management framework including a fully considered insurance strategy appropriate to their fund. How will these reforms affect the relationship between group life insurers and trustees and what opportunities exist for group insurers in the context of these new reforms? How will insurers be able to assist trustees build a strategy that is best for their fund? Q2:

Too Many Bells and Whistles?

APRA member Ian Laughlin recently complained that non-essential product features were hampering the life insurance industry’s chance of remaining profitable for the future. Are ancillary benefits unnecessary and costly to consumers or do they have a useful role to play in making sure the policy provides adequate cover? Do you agree with recent observations made by APRA that there too many ‘bells and whistles’ in modern policies which adversely impact on profitability? Your answer should be supported whenever possible by publically available data or relevant public health information. Is there a place for plain and simple products? If so, how could they be rated in a way that is meaningful for consumers? Q3:

TPD But Still Able to Work?

Australian courts have recently been grappling again with the vexing issue of retraining. In particular, the courts are considering the question, when does a course of re-training become so extensive that it effectively qualifies a claimant for a different occupation and not return them to one that was already within their knowledge, training or experience? Please review the relevant legal decisions and comment on how the issue of potential capacity for work and present knowledge, training or experience have been handled by judges. Have the courts got this right yet, or is there still further work to be done? Your answer can also evaluate the current state of the case law in relation to a claimant’s capacity to perform part-time work. Q4:

The National Disability Insurance Scheme

The word ‘insurance’ in the title of the National Disability Insurance Scheme (NDIS) is used to reflect the fact that the community is pooling its resources to help people with disability cover the cost of long-term support. However, in many respects it is a misnomer. In a recent paper for the Centre for Independent Studies, Policy Analyst Andrew Baker notes that, unlike normal insurance arrangements, the NDIS does not typically require individual financial contributions from beneficiaries through copayments for services or excesses. These co-contributions generally ‘reduce the overall cost of insurance, discourage the overconsumption of services, and reduce risk-taking behaviour.’

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Questions (continued)

How will the life industry work with the NDIS? Does the industry have anything to fear either in terms of confusion that everyone is going to be ‘covered’ under this new plan or devaluation of what it has to offer through this communityfunded, “no cost” model? On the other hand, what, if any, are the opportunities the NDIS will create for the life industry? Q5:

Training for Claims Professionals

You are designing a course for claims professionals in the life industry. Present a detailed outline of the areas of knowledge your course would teach. How would you teach it? Would it be through on the job training, mentoring or class room studies and written exams? What core values should your students understand and live by once they have graduated from your course? Is the industry doing enough to address training? How would you change the current approach if given the chance? Q6:

Product Affordability and Lapse Rates

Recent statistics have shown the Australian life industry to be much more severely affected than other comparable markets by high lapse rates. Explain this problem in terms of class of business and customer demographics and how do our statistics compare with other countries’ data? How can life insurance companies address this problem to keep more of our people covered? One reason for high lapse rates considered at the recent FSC life insurance conference was the challenge presented by affordability and pricing issues which directly affected profitability. Assuming just increasing price is not the answer, as products need to remain affordable for consumers, your answer should examine the issue of product affordability and address how the industry could achieve better efficiency to achieve sustainable profit levels. You may answer this question specifically from the point of view of distribution, underwriting and new business processes, claims processes and product design, or from all four perspectives. Q7:

A New Decision Maker in the Insurance Contracts Act - the prudent insurer?

The long-awaited changes to the Insurance Contracts Act (1984) look like they may soon finally come to fruition. One of the changes may require an insurer, seeking to vary a policy because of non-disclosure to make a decision that is consistent with what other reasonable and prudent insurers would have done in response to the risk when underwriting similar contracts. What challenges will this bring to life insurers and how may they be overcome? Your answer should explore the legal issues presented by this new remedy, the nature of the “prudent insurer’ test and discuss the practical problems that will be faced by insurers using the remedy and how they might be resolved.

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Questions (continued)

Q8:

Workplace Bullying – a cause of disability?

Workplace bullying features very strongly in current Disability Income Protection claims. Is workplace bullying a valid claim under a policy that covers disability from accident and illness? Where is the responsibility divide between the employer and the insurer? Discuss the principles involved and the challenges and solutions for the claims assessor.

Q9:

Mental Illness Claims – where are we? Where are we going?

The industry is currently paying more claims arising from mental illness, anxiety and depression, than ever before. Using publically available data, please discuss the actual parameters of claims on the life insurance industry in respect of claims arising from mental illness. Has there actually been an increase in claims incidence and/or duration? If so, what are the reasons for this and are any of them capable of being addressed at an industry or governmental level? How has the industry responded to mental illness claims and what must it do to ensure product profitability so that the cost of cover remains affordable for everyone?

Q10:

Making Pre-Disability Income Simpler

The financial assessment of Disability Income Protection claims in respect of the self-employed/business owner is a complex task, particularly in respect of the calculation of pre-disability income. The use of ‘best 12 month income periods’ and the concept of ‘add-backs’ mean that the process can be lengthy with much financial evidence being required. There is also the potential for disputes between the insurer and the claimant. Discuss how the insurance industry could simplify this process, make it more transparent and enable a speedy claims payment with less potential for disputes whilst still retaining a reasonable level of risk management.

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Terms & conditions Definitions A. TurksLegal: means the legal practice partnership operating under that registered business name. B. ALUCA: means Australian Life Underwriters and Claims Association. C. Major Prize: means an overseas package valued up to $8,000 (inclusive of GST). It includes registration to one of the following overseas conferences: 2014 Eastern Claims Conference, 16 - 19 March 2014, Indianapolis, IN; 2014 LOMA Life Insurance Conference, 7 - 9 April 2014, Chicago, Illinois; DI & LTC Insurers’ Forum, date and location to be confirmed; return economy airfares for one person to one of the above locations valued up to $3,000; four nights accommodation valued up to $2,000 for one person at a hotel to be confirmed by the organisers; and $1,000 spending money. The package does not include: transfers to and from the airport, any insurances, taxes, additional spending money, charges, levies, hotel incidentals, tours and activities or meals not included in conference registration (except where specified). Dollars ($) means Australian dollars. D. 1st Runner-up Prize: means the Scholarship 1st runner-up will be awarded a Visa pre-paid gift card to the value of $1,000AU (inclusive of GST). E. 2nd Runner-up Prize: means the Scholarship 2nd runner-up will be awarded a $250AU (inclusive of GST) restaurant voucher. F. Term: means the entire period of the Scholarship commencing on 18 June 2013 and concluding on 4 August 2013 at 5pm. G. Judging Panel: means the Judging Panel constituted to judge the 2013 ALUCA TurksLegal Scholarship. H. Scholarship: means the ALUCA TurksLegal Scholarship. Rules 1. This Scholarship is open to all members of ALUCA regardless of country of residence. Each entrant must be a current financial member of ALUCA. Entrants must work in the life insurance industry. Lawyers, accountants or medico-legal consultants who meet the above criteria are eligible to enter provided they are direct employees of life insurance companies, life reinsurance companies, superannuation trustees or superannuation administrators. Entry is not open to members of the ALUCA National Committee. 2. As a condition of entry, an entrant accepts these terms and conditions and any rules, policies or procedures that may be adopted by TurksLegal or ALUCA from time to time. TurksLegal or ALUCA may change, amend or vary these terms and conditions and may extend the period of, or cancel, the Scholarship without notice. 3. Entry forms for the Scholarship can be found on the TurksLegal website. Members of ALUCA who wish to participate in the Scholarship must complete the official entry form and send it with a copy of their paper by email to the Marketing & Business Development Manager at scholarships@turkslegal.com.au by 4 August 2013 at 5pm. Only entries accompanied by an official application form will be accepted. Only one entry per ALUCA member will be accepted. 4. Entrants in the Scholarship must submit a written paper (not exceeding 2,500 words in length) on one of 10 questions selected by the Judging Panel and notified to entrants. The judges may nevertheless, at their absolute discretion, direct that over-length papers be returned to entrants prior to judging and subsequently accept those papers for judging if they are modified to comply with the word limit. 5. The entrant must certify that they meet the conditions and that their employer has no objection to their paper being entered. 6. At the conclusion of the Term all entries will have personal information removed so that entrants’ papers are considered anonymously by the Judging Panel; the winner and the 1st and 2nd runners-up will be officially announced at MiniLuca in Sydney on 4 September 2013. 7. The entrant whose paper is determined by the Judging Panel to be the best response (“the winner”) will be awarded the Major Prize. The entrant whose paper is determined by the Judging Panel to be the next best (“the 1st runner-up”) will receive the 1st runner-up Prize. The entrant whose paper is determined by the Judging Panel to be the next best (“the 2nd runner-up”) will receive the 2nd runner-up Prize. 8. The Judging Panel will determine the winner, 1st and 2nd runner-up by simple majority. Where there is no clear majority in favour of any one entrant, the person

elected by the Judging Panel as its Chairman must exercise a casting vote which will determine the winner and runner-up. In determining the winner and 1st and 2nd runner-up the Judging Panel will utilise the marking criteria that it has agreed to apply to all entries. 9. Notification will be given to the winner, 1st and 2nd runner-up as soon as practicable after the conclusion of the judging. Notice may be given by ordinary post, electronic mail, courier or personally. 10. The winning entry and 1st and 2nd runner-up papers will be published on the TurksLegal and ALUCA websites, in the ALUCA e-newsletter, RiskeBusiness and other potential media sources. By signing the application form the entrant accepts these conditions and gives permission for publishing of the name and/or photos. Under the conditions of entry the copyright in all entries will vest in TurksLegal and ALUCA. 11. Entrants are responsible to ensure that their contact details with TurksLegal and ALUCA are up to date. 12. Prizes are not transferable or exchangeable and no prize can be taken solely in cash. 13. If for any reason the winner, 1st and 2nd runner-up are unable to utilise their prize once booked (including flights, accommodation, conference, restaurant and pre-paid visa gift card) and the date cannot be changed without penalty (of any kind, including financial charges) the winner, 1st or 2nd runner-up will not receive an alternative prize. 14. All entries are expected to be original work of the entrant, based on their own research. Reference to supplementary material must be clearly acknowledged in the paper. TurksLegal and ALUCA reserve the right to make whatever enquiries each consider necessary to ensure the work attributed to an entrant is that person’s own work. All claims for prizes are subject to TurksLegal’s and ALUCA’s verification procedures as determined by TurksLegal and ALUCA in their absolute discretion. 15. TurksLegal’s and ALUCA’s decision in relation to all aspects of the Scholarship, including but not limited to any dispute as to the identity of an entrant, eligibility to participate in the Scholarship and determination of an entrant’s eligibility to receive a prize, is final and binding and no correspondence will be entered into. These terms and conditions may be changed, amended or varied at any time by TurksLegal or ALUCA in their absolute discretion without notice and without assigning any reason therefore. TurksLegal and ALUCA reserve the right to cancel or vary the Scholarship in whole or in part in their absolute discretion at any time without prior notice. Any such cancellation shall not effect any entrant’s entitlement to any prize that has accrued at the time of the cancellation. 16. Entrants accept these terms and conditions as amended from time to time and agree to be bound by them. Entry in the Scholarship is subject to these terms and conditions. In the case of any inconsistency between these terms and conditions and any promotional material, these terms and conditions prevail. TurksLegal and ALUCA reserve the right to cancel an entrant’s participation in the Scholarship without assigning any reason therefore where TurksLegal and/or ALUCA, in their absolute discretion, consider that the entrant has not acted honestly, fairly, in good faith or in the spirit of the Scholarship. 17. Liability for any tax on any benefits provided to entrants pursuant to the Scholarship is the sole responsibility of the entrant. It is recommended that entrants contact their own accountant or taxation advisor in this regard. 18. TurksLegal and ALUCA accept no liability for late, lost or misdirected entries. 19. To the extent permitted by law, TurksLegal and ALUCA are not liable for and shall be kept harmless from any loss or damage to property or person including but not limited to direct or consequential loss and including loss from personal injury as a result of any person participating in the Scholarship or making use of a prize. 20. TurksLegal and ALUCA collect entrants’ personal information in order to conduct the Scholarship. If the information requested is not provided, the entrant may not be permitted to participate in the Scholarship. By entering the Scholarship, unless otherwise advised, each participant agrees that TurksLegal and/or ALUCA may use this information in any media for future promotional, marketing and publicity purposes without any further reference, payment or other compensation to the entrant, including sending the entrant electronic messages. A request to access, update or correct any promotion should be directed to TurksLegal and/or ALUCA.

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ALUCA TurksLegal Scholarship 2013

Application form Entrants must submit this application form together with a paper, answering one of the 10 questions listed. A word limit of 2,500 words applies and will be strictly enforced. The judges may nevertheless, at their absolute discretion, direct that over-length papers be returned to entrants prior to judging and subsequently accept those papers for judging if they are modified to comply with the word limit. Please also read the terms and conditions in this application form before submitting an entry. Entrants must submit by email their paper and a completed application form by 5.00pm on Sunday 4 August 2013 to: Jessica Thomas Marketing & Business Development Manager Email: scholarships@turkslegal.com.au Further information about the scholarship is available at www.turkslegal.com.au and www.aluca.com

Applications must be received no later than 5.00pm (Sunday) 4 August 2013 Full Name Position Organisation Email Address Direct Phone Mobile Question Answered Word Count (max 2,500 words)

By signing this application form and submitting your entry you confirm that you have read and understood the terms and conditions of the Scholarship, you agree to be bound by these terms and conditions, and the organisation you work for has no objection to your entry being submitted: Signed:

Current member of ALUCA (please tick): Yes

ALUCA TurksLegal Scholarship 2013

No

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2013 ALUCA TurksLegal Scholarship Application Form