UPFRONT
INSURER UPDATE NEWS BRIEFS Allianz buys Westpac’s general insurance business
Allianz is boosting its position in the Australian market with its $725m acquisition of Westpac’s general insurance business. Expected to close in the middle of 2021, the transaction includes an exclusive 20-year distribution deal that will allow Allianz to issue and service a range of personal insurance products under the Westpac brand. The acquisition builds upon the existing distribution relationship between Allianz and Westpac that has been in place since 2015. Allianz Australia MD Richard Feledy described the move as “a fantastic opportunity,” given the companies’ aligned values.
IAG completes $650m institutional placement
IAG has successfully completed a $650m fully underwritten institutional placement, issuing approximately 128.7m new fully paid ordinary shares at a price of $5.05 each. “IAG is pleased with the strong support shown for the equity raising from its shareholders,” the company said in a release, noting significant interest from both domestic and offshore institutional investors. “The success of the raise is an endorsement of the decisive action to maintain balance sheet strength. This positions the company well to execute on its strategic plan.”
HIF partners with medicinal cannabis pioneer
The Health Insurance Fund of Australia (HIF) has forged a partnership with Australian medicinal cannabis company Little Green Pharma (LGP), offering rebates of up to $105 per prescription to eligible policyholders. According to HIF,
this is the first time a major health fund in Australia has openly supported access to medicinal cannabis treatments. LGP’s medical-grade cannabis products, which it has been producing in Western Australia since 2018, are available nationwide by prescription.
Youi acknowledges “inadequate” response
In late November, the Federal Court found Youi in breach of good faith under the Insurance Contracts Act for the way it handled a 2017 claim that dragged on for nearly two years. Among the breaches was Youi’s failure to inform the policyholder that the contractor it proposed to carry out repairs to their property had been the subject of numerous complaints. “Youi acknowledges its response to the claim was inadequate and accepts the Federal Court judgement … and is disappointed that we didn’t meet our usual high level of service, which we pride ourselves on and is the cornerstone of our success,” the insurer said.
ICA elevates business interruption case to High Court
The Insurance Council of Australia (ICA) has elevated a COVID-19 business interruption test case to the High Court of Australia, appealing a judgement by the New South Wales Court of Appeal, which ruled that insurers can’t apply the Quarantine Act exclusion to COVID-19-related business interruption claims. “While the insurance industry is sympathetic to businesses … that have experienced hardship as a result of COVID-19 restrictions,” the ICA said, “it remains of the view that pandemics were not contemplated for coverage under most business interruption policies and that the Quarantine Act exclusion excludes COVID-19-related claims.”
New year, new home Zurich has moved its Australian headquarters to a North Sydney building with a five-star Green Star rating Last year was abound with seemingly endless changes – and one of the good ones was Zurich Financial Services Australia’s transfer to the newly constructed 29-storey Zurich Tower in North Sydney. The building was awarded a five-star Green Star rating by the Green Building Council of Australia. “In keeping with our commitment to sustainability, many features of our new workplace have been designed to support the building’s green credentials, including floor-to-ceiling windows and the installation of over 1,000 indoor plants,” says Caroline Hendra, the company’s head of communications and media relations. Known for its flexible work program, Zurich transitioned 95% of its Australian workforce into full-time remote work within weeks after the COVID-19 pandemic first emerged in the country, allowing the company to remain operational even during lockdown periods. “[Prior to the move], many of our teams started to transition to a blended or hybrid way of working, with a mix of office work and working from home for two or three days a week,” Hendra says. “We will continue to support the flexibility and informality of flexible working, while ensuring we are able to meet the needs of the business,
10 www.insurancebusinessonline.com.au
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22/01/2021 6:44:56 am