Insurance Business 10.02

insurancebusinessonline.com.au Issue 10.02

BUILDING RELATIONSHIPS How Construct Services is combining insurance and construction expertise to make the property claims process smoother

WELLBEING IN THE SPOTLIGHT

What the industry is doing to address COVID-19’s mental health fallout

REIMAGINING THE TRANSPORT SECTOR

The latest technology that can make trucking clients smarter, safer – and even greener

NAVIGATING ROUGH WATERS

What obstacles will 2021 present for the marine insurance market?

ELITE BROKERS 2021

Find out who made IB’s annual list of the best brokers in Australia

00_Spine_OFC_OBC-SUBBED.indd 2

19/03/2021 9:22:35 am

A decade of insight

Discover what SMEs really want from their broker SME Insurance Index Report Understanding small businesses is vital when it comes to maintaining success. Vero’s 10th annual SME Insurance Index Report is packed with key insights to help you improve your client satisfaction. You’ll find 10 years of analysis that provides a fascinating insight into emerging trends and the unchanging fundamentals of the insurance industry.

vero.com.au/broker Insurance issued by AAI Limited ABN 48 005 297 807 trading as Vero Insurance.

IFC-01_TOC-SUBBED.indd 1

19/03/2021 9:37:46 am

ISSUE 10.02

CONNECT WITH US Got a story or suggestion, or just want to find out some more information?

CONTENTS

@InsuranceBizAU facebook.com/InsuranceBusinessAU

27

UPFRONT 02 Editorial

What’s behind the recent hunger for insurance M&As?

04 Statistics

Key data that should be on your radar

06 News analysis

How the industry is addressing the pandemic-driven mental health crisis

FEATURES

GREEN LIGHT FOR RENEWABLES

19

As the tide turns toward renewable energy sources, what are the major hurdles for insurers in this space?

36

ELITE BROKERS

PEOPLE

THE ART OF BUILDING TRUST Construct Services’ Darren Trott and Aeron Rowe explain how they’re working to deliver a superior customer experience in property claims

Beazley rolls out coverage for film productions

10 Insurer update

Allianz addresses the actions that led to its current court case

12 Underwriting agencies update The motor trades segment welcomes a new player

18 Opinion

COVID-19 has brought out Australian mateship at its finest

SPECIAL REPORT

This year’s Elite Brokers didn’t let COVID-19 slow them down – find out how they managed to thrive during an extremely tough year in the Australian insurance industry

08 Intelligence

FEATURES FEATURES

NAVIGATING THE STORMS

In a marine market that’s facing challenges from all sides, business as usual won’t cut it anymore

40

32 View from the top

New CHU CEO Kimberley Jonsson discusses her rise in the industry – and her agency’s ambitious plans

44 Cultivating strong relationships in the digital age Follow these four steps to maintain good connections in a virtual world

46 When to go for good enough How to stop wasting time on the fruitless pursuit of perfection

PEOPLE 30 Redefining client relationships Broker Bunmi Ajayi on how COVID-19 has transformed customer service

14

FEATURES

THE WHEELS OF INNOVATION

As technology rapidly transforms the transport sector, what do brokers need to know to stay on top of the latest changes?

48 Other life

A long walk with brokerage head Dale Hansen

INSURANCEBUSINESSONLINE.COM.AU

CHECK IT OUT ONLINE www.insurancebusinessonline.com.au

IFC-01_TOC-SUBBED.indd 1

1

19/03/2021 9:38:09 am

UPFRONT

EDITORIAL

In with the new

A

s the world eagerly anticipates the day it can give COVID-19 the cold shoulder, global insurers are busy prepping their businesses for success in the post-pandemic era. Over the past 15 months, insurance organisations worldwide have been using mergers and acquisitions to streamline their businesses, simplify their operations, shed legacy books of business and redeploy capital with renewed focus. As Bain & Company explained in its latest Global M&A Report, there are multiple factors driving divestitures, including the pressure put on profit pools by low rates, increasingly complex capital requirements and an urgent need for investment in technology.

A good example is AIG, which announced in October 2020 its intention to separate its life and retirement (L&R) business from its P&C business in order to create “two independent, market-leading companies.” According to the insurer’s executive management team and board, a “simplified corporate structure” will “unlock significant value for shareholders and other stakeholders.” In February 2021, AIG revealed it had been fielding inquiries from parties interested buying a minority stake in the L&R business.

Insurers are using M&As to streamline their businesses, simplify their operations and redeploy capital with renewed focus There are several drivers of interest in M&A deals at present. Premiums are increasing in many lines of P&C business, and the hardening market promises a fairly high return on investment. Buyer capacity is also there. In North America especially, large legacy carriers are using the low interest rate environment to build up their funding for potential deals.

Finally, buyers are looking to double down on what they know. Aon’s US$30bn bid for Willis Towers Watson is a prime example of this. In creating the world’s largest insurance broker, the two firms could generate close to US$1bn in costsaving synergies, giving them more opportunities to drive innovation and deliver more value. If approved, the deal will likely trigger further M&A opportunities as the brokerage behemoth divests assets and removes overlap.

This heightened M&A activity seems to be part of the ‘fresh start’ mentality that’s spreading around the insurance industry as it looks to strengthen its armouries in preparation for the post-pandemic boom.

The team at Insurance Business

www.insurancebusinessonline.com.au

EDITORIAL Managing Editor Paul Lucas Senior Editor Bethan Moorcraft Journalists Brendan Day, Alicja Grzadkowska, Maria Hoyle, Ryan Smith, Ksenia Stepanova, Mia Wallace News Writers Lyle Adriano, Terry Gangcuangco, Roxanne Libatique, Gabriel Olano Copy Editor Clare Alexander

CONTRIBUTORS Stefan Feldmann, Mark Carter, Lynne Cazaly

ART & PRODUCTION Designer Joenel Salvador Production Coordinators Kat Guzman, Loiza Razon Customer Success Coordinator Isabella Concepcion Traffic Coordinator Kristine Jamir

SALES & MARKETING General Manager Peter Smith Commercial Development Manager Sophie Knight Global Head of Media Marketing Lisa Narroway

CORPORATE Chief Executive Officer Mike Shipley Chief Operating Officer George Walmsley Managing Director Justin Kennedy Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil Editorial Enquiries paul.lucas@keymedia.com Subscription Enquiries subscriptions@keymedia.com.au Advertising Enquiries sophie.knight@keymedia.com.au peter.smith@keymedia.com.au

Key Media Regional head office, Level 10, 1–9 Chandos St, St Leonards, NSW 2065, Australia tel: +61 2 8437 4700 • fax: +61 2 9439 4599 www.keymedia.com Offices in Sydney, Auckland, Denver, London, Toronto, Manila

Insurance Business is part of an international family of B2B publications, websites and events for the insurance industry Insurance Business America cathy.masek@keymedia.com T +1 720 316 0151 Insurance Business Canada john.mackenzie@kmimedia.ca T +1 416 644 874O Insurance Business NZ peter.smith@keymedia.com.au T +61 2 8437 47OO Insurance Business UK gemma.powell@keymedia.com T +44 20 7193 0935 Insurance Business Asia peter.smith@keymedia.com.au T +61 2 8437 47OO Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as the magazine can accept no responsibility for loss.

2

www.insurancebusinessonline.com.au

02-03_Editorial-SUBBED.indd 2

19/03/2021 9:57:42 am

B y

out s the

02-03_Editorial-SUBBED.indd 3

19/03/2021 9:57:47 am

UPFRONT

STATISTICS CONSUMERS’ INSURANCE NEEDS SHIFT

70%

of consumers are interested in usage-based car insurance

US AND CANADA 3.03%

AVERAGE M&A INSURANCE PREMIUM RATES (% OF INSURED LIMITS)

2.55%

2.65%

2019

2020

2018

M&A ACTIVITY SPRINGS BACK TO LIFE

62%

are interested in insurance for home services such as a smart thermostats and water sensors

70%

are interested in a product that pays three months of income in the event of a job loss

Global M&A activity came to a sudden halt in March 2020 due to the COVID-19 pandemic, but the market is now on the rebound, especially in sectors that were relatively unaffected (or even helped) by the pandemic, such as technology, renewable energy and healthcare/ pharmaceuticals. According to Gallagher, M&A insurance premium rates for Europe and Australasia decreased slightly in 2020, while those in North America and the rest of the world have started to increase. The US market is showing signs of hardening, Gallagher said, and Europe is likely to follow this year due to the resumption of deal-making, as well as the increasing frequency of claim payouts. Demand for cover for distressed M&A and public-toprivate transactions also grew in 2020, Gallagher expects this trend to continue into 2021.

NAT CAT LOSSES SURGE ABOVE AVERAGE IN 2020 After a below-average year in 2019, insured losses for natural catastrophes reached US$78bn in 2020, blowing past the 10-year average of US$66.5bn. Last year had the fourth highest annual total for insured catastrophe losses over the past decade.

NATURAL CATASTROPHE INSURED LOSSES 10-year average

$160bn $140bn $120bn $100bn $80bn

65%

are interested in policies that could pay credit card bills Source: EY Global Insurance Consumer Survey, February 2021

4

$60bn $40bn $20bn $0

$120bn

$60bn

$35bn

$33bn

$23bn

$39.5bn

2011

2012

2013

2014

2015

2016

$143bn

$80.5bn

$53bn

$78bn

2017

2018

2019

2020

Source: Summary of Natural Catastrophe Events 2020, Willis Re; all figures in US$

www.insurancebusinessonline.com.au

04-05_Stats-SUBBED.indd 4

19/03/2021 9:24:04 am

FRAUD AND IDENTITY THEFT CLAIMS SURGE There was a sharp rise in identity theft cases in 2020, mostly attributed to the COVID-19 pandemic, according to data from Generali Global Assistance. Employment-related fraud cases also skyrocketed due to the high volume of unemployment benefits being distributed.

UK AND EUROPE

1.11%

1.06% 0.96%

2018

2019

YEAR-OVER-YEAR INCREASE, 2019–2020

80%

2020

Identity theft resolution cases

REST OF WORLD 1.28% 1.47% 2018

2019

2.15% 2020

5,630%

Employment-related fraud cases

AUSTRALASIA 1.32%

1.32%

2018

2019

220%

1.18%

ID monitoring inquiries

2020

Source: Gallagher Global Mergers & Acquisitions Outlook Report, January 2021

WOMEN EXPAND PRESENCE IN INSURANCE LEADERSHIP Insurance and reinsurance companies still have a long way to go in achieving gender diversity in leadership positions, but the latest figures from the Swiss Re Institute suggest progress is being made: In 2010, only 58% of insurance and reinsurance companies had women in C-suite roles; by 2019, that figure had ballooned to 75%.

MOST REGIONS SEE UPTICK IN INSURANCE M&A The COVID-19 pandemic didn’t put a huge dent in insurance companies’ M&A appetite in 2020, according to Clyde & Co., which reported 407 deals completed globally in 2020, compared to 419 in 2019. However, overall deal size did decrease in 2020, as there were 25% fewer ‘mega deals’ exceeding $1bn.

FEMALE REPRESENTATION AT INSURANCE/REINSURANCE COMPANIES With women

C-SUITES 42% 58%

75%

9%

91%

181

2020

2020

75

22% 78%

2019

192 EUROPE

2019

2010

2019

Source: Gender Diversity in the Re/insurance Industry: For a Sustainable Future, Swiss Re Institute

2019

155 2020

2010

AMERICAS

2019

69 BOARDS

25%

ASIA-PACIFIC

2019

Without women

Source: 2020 Identity & Cyber Protection Recap, Generali Global Assistance

MIDDLE EAST AND AFRICA

12 2020

103

32 Source: Finding Opportunity in Adversity, Clyde & Co.

www.insurancebusinessonline.com.au

04-05_Stats-SUBBED.indd 5

5

19/03/2021 9:24:14 am

UPFRONT

NEWS ANALYSIS

Tackling the mental health crisis Health organisations and charities are warning of a ‘second pandemic’ evolving behind the scenes of COVID-19 – a mental health crisis. Insurance companies are increasingly realising they must act now to protect their staff

MENTAL WELLBEING in the insurance industry has taken on a new urgency over the last year. A recent report from the World Health Organisation revealed that the COVID-19 pandemic has disrupted crucial mental health services in 93% of countries worldwide – at the same time that demand for these services is spiking. The crisis is also shining a spotlight on the need for organisations to really consider the pressing issue of mental wellbeing.

needed to help break the stigma historically attached to mental health issues, thus encouraging people to seek help as early as possible.

“We do see that multiple factors have contributed to a decline in mental health,” Gill says. “Post-traumatic stress syndromes are on the rise. People fear for their health, their families and livelihood. The measures taken to prevent the virus from spreading forced people into isolation and put addi-

“[Our] aim at Allianz is to introduce binding global minimum health requirements to better respond to the demands of the new way of working” Stefan Britz, Allianz There is no doubt that the pandemic has massively influenced awareness around how important mental health is, says Natasha Gill, head of human resources for reinsurance at Swiss Re, who adds that it’s a positive sign that mental health is increasingly becoming part of the conversation. This is

6

tional burdens on those who had to juggle home, office and family duties.”

The pandemic has shown everyone how dramatically our lives can change overnight, says Stefan Britz, chief human resources officer at Allianz. From remote working to homeschooling and social distancing,

pandemic-mandated processes are having a significant impact on the psyche of those affected. As an employer, Britz says, Allianz is now being asked more than ever to provide employees with the best possible support.

Beyond the clear social responsibility companies have to protect the wellbeing of their staff, the economic cost of mental health to organisations is substantial. The latest Lancet Commission report on mental health estimates that 12bn working days are lost due to mental illness every year, while mental disorders are projected to cost the global economy $16trn by 2030.

“We are working assiduously to support the mental health and wellbeing of our employees in the current situation,” Britz says. “To this end, [we] have defined a global framework that includes the dimensions of mental and physical resilience, motivation and engagement, and work effectiveness.

[Our] aim at Allianz is to introduce binding global minimum health requirements to better respond to the demands of the new way of working and to adapt global and local health initiatives to the new normal.”

Gill says that by acknowledging how COVID-19 has forced the evolution of working patterns, Swiss Re has been able to

www.insurancebusinessonline.com.au

06-07_News Analysis-SUBBED.indd 6

19/03/2021 9:24:48 am

FAST FACTS: MENTAL HEALTH IN AUSTRALIA

$10.6bn was spent on mental-health-related services in Australia during 2018–19

41% of financial services employees believe there is a stigma attached to mental illness

implement a variety of innovative wellbeing solutions. The reinsurer recently celebrated Swiss ReSilience Day, an additional free day of annual leave to thank its staff for their hard work in 2020. In addition, Swiss Re’s getTOGETHER initiative over the holiday season encouraged staff to reach out to each other or local charities in a bid to ensure no one had to spend time alone unwillingly.

“I can positively say that Swiss Re has done a lot to support the wellbeing of our

get a pulse on the wellbeing of their people.

Britz says Allianz uses an annual employee survey to monitor its Work Well Index Plus (WWi+), which measures the success of all health and wellbeing initiatives. Over the last three years, this score has improved from 64% to 70%, he says, signalling that Allianz is on the right path.

A key takeaway from both companies’ success in protecting the mental wellbeing of their employees is that many of their

“We can’t expect our people to live up to our vision of making the world more resilient without being resilient on a personal level first” Natasha Gill, Swiss Re people,” Gill says. “We know that we can’t expect our people to live up to our vision of making the world more resilient without being resilient on a personal level first.”

A common theme in the approaches taken

by Swiss Re and Allianz is the use of data, such as that gathered from employee surveys, to

initiatives have not been precipitated by the current crisis. The speed and breadth of their COVID-19 response, therefore, was facilitated by the structures they had in place prior to the pandemic.

But as the saying goes, while the best time to plant a tree is 20 years ago, the

37% believe there is no clear process for identifying mental illness in the workplace

32% said disillusioned or disinterested employees are the biggest barrier to prioritising mental health in the workplace Sources: Australian Institute of Health and Welfare; Future Thriving Workplaces, Allianz Australia

second best time is now. Mental wellbeing considerations are more important than ever, Gill says, adding that companies that create an environment of inclusion and psychological safety – and understand that mental resilience is key to a healthy performance culture – will win in the long run.

“It will be a differentiator in attracting talent and key for people to bring the best version of themselves to work,” she says.

“And frankly, who wouldn’t want to work in a company that is human-centred?”

www.insurancebusinessonline.com.au

06-07_News Analysis-SUBBED.indd 7

7

19/03/2021 9:24:53 am

UPFRONT

INTELLIGENCE CORPORATE ACQUIRER

TARGET

PRODUCTS COMMENTS

The Ardonagh Group

Resilium Insurance Broking

The British brokerage giant has secured a majority stake in Resilium, which split from Suncorp in 2019

Charles Taylor

Otak

Charles Taylor has acquired full ownership of the technology platform, which specialises in delegated authority solutions

Network Insurance Group

Australian Insurance Solutions

The acquisition of the Gold Coast brokerage will further expand Network Insurance Group’s presence in Queensland

Pemba Capital Partners

Premium Funding; Principal Finance

The two premium funding businesses will continue to operate under their respective names until they are merged under a new brand identity

The Riverside Company

Altius Group

The $57m sale marks AUB Group's exit from the health and rehabilitation market, in line with its effort to refocus on insurance broking and underwriting agencies

Stone & Chalk

AustCyber

AustCyber will become a wholly owned subsidiary of the innovation hub, but will retain its brand, staffing structure and national network of cybersecurity innovation nodes

Health insurer forays into home and car insurance

Private health insurer ahm has expanded into the world of car and home insurance via a partnership with digital insurance platform Open.

The new car and home insurance products will be administered by Open, which will manage everything from quoting to claims, while ahm will promote the products to its existing customers and the wider Australian market. Both policies are being underwritten by Open investor Hollard Insurance.

Existing ahm and Medibank health insurance customers will receive up to 15% off car policies and up to 30% off home and contents policies.

Resilium secures British backing

Resilium Insurance Broking – which became a standalone business in 2019 after it was sold by Suncorp Group through a management buyout led by Adrian Kitchin – has come under the umbrella of another brokerage giant.

The Ardonagh Group, a major British brokerage, has acquired a majority stake in Resilium for an undisclosed sum. With offices in Sydney, Melbourne and the Gold Coast, Resilium connects more than 150 corporate authorised representatives to over 100 insurers globally and has more than $500m worth of gross written premium under management.

“This strategic backing from Ardonagh will turbo-charge Resilium’s trajectory, giving us access to the capital and resources to explore strategic, complementary acquisitions across the country while also continuing to grow organically,” said Kitchin, who will remain managing director of Resilium.

8

WTW and Liberty introduce reputational crisis insurance

Willis Towers Watson and Liberty Specialty Markets have launched a new insurance product designed to help organisations deal with reputational crises. In addition to providing insurance that transfers the financial risk associated with certain types of reputational crises, the product offers clients access to a suite of non-insurance capabilities, including reputational data and intelligence analysis from Polecat Intelligence. The insurance solution is available globally and will initially be offered to clients in the leisure and hospitality, manufacturing, retail, and transportation sectors.

www.insurancebusinessonline.com.au

08-09_Intelligence-SUBBED.indd 8

19/03/2021 9:25:16 am

PEOPLE Beazley unveils suite of policies for production companies

Specialist insurer Beazley has launched a suite of contingency policies designed to protect media producers and production companies from a range of risks that can cause productions to be delayed or called off. Beazley’s film production offering is available for various operations, including feature films, television, animation, photographic shoots and commercials.

It provides coverage for cast member injury, sickness, death, bereavement or kidnapping; faulty media or equipment; property; money; employer’s liability; public liability; products liability; death and disgrace; and terrorism.

Aon rolls out new fuel insurance product

Aon has launched a new fuel insurance product designed to protect companies in various industries from rising fuel costs and help them weather significant price spikes. The coverage, backed by AAA-rated credit insurance, will be activated if the cost of fuel rises above an agreedupon limit. It will cover the difference between the agreed-upon price and the higher price, paid out monthly. Targeted to industries such as marine, aviation, construction and mining, the coverage is among the first of its kind commercially available in the sector, according to Aon.

Zurich adds tool for international programs

Zurich Insurance Group has rolled out a new global placement support tool designed to simplify the process of structuring international insurance programs. Building on Zurich’s existing Multinational Insurance Application, the new Global Placement Support (GPS) Tool provides large multinational businesses with valuable information to assist in the design of international programs. It gives clients access to independent and accurate legislative and regulatory data and insights, allowing them to make informed decisions when selecting insurance coverage across different jurisdictions.

NAME

LEAVING

JOINING

NEW POSITION

Craig Drummond

Medibank

N/A

Retiring

David Greig

HBF

GMHBA

CEO

Richard Harding

Tower Insurance

icare

CEO and managing director

Sue Houghton

Westpac

QBE Insurance Group

CEO, Australia & Pacific

Mary Maini

State Insurance Regulatory Authority

icare

Group executive, nominal insurer

Dianne Phelan

N/A

NIBA

President

Michael Rogers

Bushell & Cornish

MLC Life Insurance

Chief life insurance officer

Wayne Tower

N/A

IQumulate Premium Funding

CEO

New chief executive and MD joins icare

Following an extensive search and recruitment process, NSW workers’ compensation insurer icare has appointed Richard Harding as chief executive and managing director. Harding has more than 35 years of financial services experience, spanning both short- and long-tail insurance, as well as statutoryregulated schemes. He most recently served as CEO of New Zealand-based Tower Insurance, where he’s credited with transforming the general insurer into a fast-growing digital leader.

“There’s no doubt it’s been a turbulent time for icare, and I look forward to working with the board and the executive to ensure we restore public confidence and deliver on key remediation activities,” Harding said. “I’m heartened by the positive approach of the people of icare, who every day show their passion and dedication to their customers.”

Medibank announces CEO’s retirement

Private health insurer Medibank is on the hunt for a new chief executive to succeed Craig Drummond, who recently announced he is retiring at the end of June. Drummond has been in the top job at Medibank since 2016; looking back at his tenure, he said leading Medibank through a time of transition has been incredibly rewarding.

“We have worked hard to provide our customers with greater value; we have built a health and wellbeing platform and have driven change to ensure greater resilience and choice in the private healthcare system,” Drummond said. “While there will always be more to do, I am very proud of what we have achieved over my tenure at the company.”

www.insurancebusinessonline.com.au

08-09_Intelligence-SUBBED.indd 9

9

19/03/2021 9:25:19 am

UPFRONT

INSURER UPDATE NEWS BRIEFS Federal Court takes up second industry-led BI test case

The insurance industry has lodged a second COVID-19 business interruption test case with the Federal Court of Australia; participating insurers include Allianz, IAG, Chubb, Guild and Swiss Re Corporate Solutions. While the test case heard in 2020 specifically looked at the application of the Quarantine Act exclusion, the new test case will examine the application of further issues in relation to pandemic coverage, including the meaning of policy wordings as they relate to the definition of a disease, the proximity of an outbreak to a business and the prevention of access to premises due to a government mandate.

Suncorp reveals exits from key insurance markets

Suncorp Group has announced two new simplification initiatives in line with its aim to focus on sustainable growth.

Suncorp revealed that Vero will exit from Australian consumer and construction policies via Australian intermediated partners, although it specified that this move will have no impact on its New Zealand business. Suncorp also said it plans to “permanently cease underwriting travel insurance under all brands” but offered assurances that existing travel insurance policies would not be affected by the decision.

QBE hit with billion-dollar net loss for 2020

QBE Insurance Group has reported an underwriting loss of US$869m, insurance loss of US$727m and net loss after tax of US$1.52bn for the full year that ended December 31, 2020. In light of the subpar 2020 performance, QBE’s board elected not to declare a

final dividend. QBE group chief financial officer Inder Singh noted that “2020 proved to be a very challenging year, and we are disappointed with our financial result. In addition to COVID-19, the result was impacted by above-average catastrophe claims and prior accident year claims development.”

IAG reports $460m net loss for last half of 2020

IAG has posted a net loss after tax of $460m for the half year that ended December 31, 2020 – a significant drop from the $283m profit it reported for the same period a year ago. While IAG saw growth in GWP, underwriting profit and insurance profit over the period, MD and chief executive Nick Hawkins explained that “our profitability was affected by the pre-tax $1.15bn expense we announced in November for potential business interruption claims relating to COVID-19 … Following the Supreme Court of NSW Court of Appeal decision on the COVID-19 business interruption test case, we conducted a detailed review to determine our potential exposure and took action to strengthen our balance sheet.”

Hiscox and Brit latest to rule out insurance for Adani coal mine

Hiscox has become the latest insurer to ‘cancel’ Adani’s controversial Carmichael coal mine project in Queensland. In early March, Hiscox told climate campaigners that it would not renew risks involving works directly associated with the Adani Carmichael coal mine and rail project, making it the 32nd insurer to do so. The move

by Hiscox comes a week after another global insurer, Brit, confirmed it would distance itself from the project and would not renew any risks involving other elements associated with it.

Allianz owns up to missteps As its court case gets underway, the insurer is highlighting the action it has taken to address the issues February 23 marked Allianz Australia Insurance’s appearance at the Downing Centre Local Court in Sydney, where the insurer was charged with seven counts of making false or misleading statements. The criminal case, which relates to the sale of travel insurance products, is being prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC. ASIC has alleged that online information published by Allianz between 2016 and 2018 misrepresented the characteristics or level of travel insurance coverage being sold at the time. The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry initially brought the concerns to light for review by the regulator.

In response to the charges, a spokesperson for Allianz told Insurance Business: “Allianz has acknowledged the shortcomings in relation to the sale of travel insurance products on some websites, as identified during the royal commission. A review undertaken by Allianz in 2018 highlighted issues relating to the identification or description of the limits, sub-limits and exclusions that would apply to particular policies. The website content has since been addressed.”

The maximum penalty for each of the charges is the greater of $8.1m, three times the total value of the benefits obtained,

10 www.insurancebusinessonline.com.au

10-11_Insurer Update-SUBBED.indd 10

19/03/2021 9:25:54 am

or 10% of the company’s annual turnover during the 12-month period in which the offence was committed.

“Allianz worked with ASIC to remediate any customers who may have been impacted,” the insurer’s spokesperson said.

“This resulted in the payment of $10.1m to 31,482 customers, an average of $321 per customer. We have also made a charitable donation through a community benefit payment of around $400,000.”

“Allianz has undertaken a comprehensive program to strengthen our organisational governance” ASIC, which undertook a range of regulatory responses in addition to the criminal charges filed, previously pointed out that the customer remediation, which was announced in October 2020, is not an admission that Allianz indeed violated the law.

The Allianz representative added: “Since the royal commission, Allianz has undertaken a comprehensive program to strengthen our organisational governance, including further investing in risk and compliance and refining our product offerings, with the aim of achieving the best outcomes for our customers.”

Q&A

Damien Bray

Caravans on the up

Portfolio manager CIL

Years in the industry 20+ Fast fact An experienced product manager, Bray spent time at HCF and CGU Insurance before joining CIL, a caravan specialist brand that’s part of Suncorp

How have COVID-19 travel bans impacted caravan use – and, in turn, insurance?

International and local travel restrictions have affected the caravan and recreational vehicle [RV] industry in varying ways. The first round of local state-based restrictions impacted many existing caravaners who had to sadly put their travel plans on hold. For those customers who told us they had been financially impacted by COVID-19, CIL implemented temporary premium relief to support them during this time.

As the domestic travel restrictions started to ease mid-2020, Australians sought new and local ways to holiday, take a break and escape with their loved ones, with many turning to the benefits of touring on land to fill this need. This trend resulted in a notable increase in new and existing caravan and RV customers looking to buy or upgrade.

Our CIL team has heard from many new customers who have recently purchased a caravan or motorhome. With more customers being new to caravan or motorhome ownership, we are enjoying taking the time to walk them through the insurance process so they can get themselves on the road and safely enjoying their new holidaying lifestyle.

Moving forward, what trends do you expect to see?

The Caravan Industry Association of Australia registration data shows a 4.2% increase in caravan and campervan registrations in 2020. With international travel not yet back to existing levels and Australians still wanting to experience quality holidays, we’re confident domestic touring will remain an attractive option in 2021.

We have seen a visible increase in domestic travel campaigns encouraging all Australians to explore their own backyard. These campaigns will further drive the already strong preference we are seeing for Australians to enter the caravan and RV lifestyle.

We believe we will continue to see increases in caravan sales, particularly new caravans, in 2021, with ownership and registrations set to increase further this year.

What are your priorities for 2021?

CIL is focused on delivering our customers the best caravan and RV experiences and encouraging our customers to be safe when on the road. We also want to continue to connect our customers with great locations and the best experiences.

We offer a range of useful information, articles and videos on our website to help everyone get the most out of their caravanning or RV experience. We offer caravan and RV owners important advice about how to get the most out of their travelling experience, including safety tips and reviews on popular destinations.

We will also continue to monitor the impacts COVID-19 is having on the industry to ensure we continue to support our customers and the community.

www.insurancebusinessonline.com.au

10-11_Insurer Update-SUBBED.indd 11

11

19/03/2021 9:25:57 am

UPFRONT

UNDERWRITING AGENCIES UPDATE

A new option in the motor trades space ShieldCover’s expansion into the competition-starved segment has been warmly received by brokers

the product launched, ShieldCover received at least three times the amount of quote submissions it typically gets in a day.

So how does this play out in the hard insurance market? In O’Hagan’s view, in such a specialised line of business, it’s always going to be a benefit to the broker to have another player in the market. And to be able to add in a new class of business at a time where there’s limited capacity is only going to be a positive for ShieldCover as well, she adds.

“Having another market there to offer capacity to brokers is only going to be a positive”

Brisbane-based underwriting agency ShieldCover has widened its portfolio to offer liability coverage within the motor trades space – a specialised niche where ShieldCover underwriting manager Suzie O’Hagan estimates there are currently fewer than five companies providing insurance to businesses such as auto dismantlers, boat dealerships, car/auto detailers, mechanics and panelbeaters. Sensing the opportunity, ShieldCover

NEWS BRIEFS

decided to expand its blue-collar specialty to include motor trades, and the response from brokers has been great, O’Hagan says.

“It’s been really positive. We sent out a marketing email to our database on February 25 about the launch, and we just did some organic LinkedIn posts on it. And the phone didn’t stop ringing on that day.

“The best response you can get is a quote submission,” O’Hagan adds, noting that when

AUB launches new placement venture

AUB Group has unveiled Austplacements, a new placement venture for members of the Austbrokers and Austagencies networks. Specialising in complex placements in both local and international markets, “this new enterprise will enable us to improve the placement of almost $1bn in premium that falls into this [complex risks] category,” said Austbrokers and AUB Group chief executive and MD Michael Emmett. AUB has tapped former Millennium Underwriting Agencies MD Heath Amber to serve as CEO of Austplacements.

12

“Having another market there to offer capacity to brokers is only going to be a positive,” she says, “whether it’s for someone who hasn’t dealt with us before or the brokers who have enjoyed working with us in the past and can now continue to do that with other clients of theirs.”

Moving forward, ShieldCover’s aim is to make good on its promise. “The priority for motor trades, from a market point of view, is to make sure that we deliver on what we’ve said we can deliver,” O’Hagan says, “so that’s offering quick quote turnarounds to our brokers, competitive policy coverage, and trying to keep the premium and deductibles as competitive as possible.”

ProRisk rolls out cyber and privacy liability

ProRisk has unveiled a new cyber and privacy liability insurance product on its ProBind platform. Designed for Australia-based organisations with a maximum of 500 employees and up to $25m in turnover, the Swiss Re-backed policy includes cover for cyber extortion and ransom payment, privacy statutory liability, social engineering, and data and application restoration costs. ProRisk executive director Hamish McDonald Nye said the product is “ripe for our current environment, where the likelihood of cybercrime … has increased.”

www.insurancebusinessonline.com.au

12-13_Underwriter Update-SUBBED.indd 12

19/03/2021 9:26:22 am

Q&A

Liz Peach

Trends and challenges in professional indemnity

Portfolio manager ABOUT UNDERWRITING

Years in the industry 38 Fast fact A second-generation insurance veteran, Peach spent two decades working as a broker before moving into underwriting

What trends are you currently noticing in professional indemnity insurance?

We are continuing to see a deterioration in the market appetite for professional indemnity insurance generally, but with particularly marked effects on construction and design professionals. In New South Wales, for example, the new Design and Building Practitioners Act 2020 is throwing up challenges for insurers, including a statutory duty of care for economic loss, which applies for a retrospective period of 10 years. The market is still adjusting to these changes, and we expect the market to continue to harden in this area.

In addition, the COVID-19 pandemic has seriously affected insurers generally, and business revenues are unpredictable. This said, the effects are not the same for all insurers, and at About Underwriting, we are actually looking to expand our offering in the professional indemnity space and are very much open for business.

Moving forward, what’s your outlook for this line of business?

It is likely the market for professional indemnity will continue to harden in the medium term. I would expect to see more insurers reducing limits and increasing premiums and deductibles. Brokers will more often need multiple layers to make up a required limit, and this will mean excess of loss policies and co-insurance arrangements will become more important. We expect

Howden Group invests in DUAL’s reinsurance unit

Howden Group Holdings has made its first underwriting capital investment, injecting US$84m into Tamesis DUAL, the reinsurance division of underwriting agency DUAL. The additional capacity has been in place since January 1; the capital was provided by Howden Group and a third-party investor. CEO David Howden said the investment represents what Howden Group can do when it uses expertise from across its companies, which include Howden Reinsurance, Howden Capital Markets, Tamesis and DUAL.

Blue Zebra moves into the cyber market

to see more opportunities for our excess of loss capacity, and at About Underwriting, we are actively looking to utilise this capacity.

During this time, insurers and Lloyd’s coverholders need to work more collaboratively to ensure appropriate cover can be achieved, and we are keen to be a part of this effort. Eventually, we will see a stabilisation, although saying exactly when is difficult.

I have been through several hard market cycles in my career and have always come out a better underwriter on the other side.

In your experience at About Underwriting, what has been the impact of the hard market?

While the hard market has caused disruption to many, it has also presented opportunities in areas we are still able to write business. For example, we hold a significant book of structural and civil engineers, and this has been a successful line for us, even as several other insurers have significantly rolled back their offerings or exited writing business in this space altogether.

We also write a large recruitment services/labour hire portfolio, and while COVID-19 has impacted some businesses, many others have flourished during the pandemic. This is due to the very nature of labour hire and shows that Australian businesses are resilient and will bounce back.

For insurers, the current market just shows we have to stick to our principles and underwrite in a disciplined way while adapting to the changing market.

Blue Zebra Insurance has rolled out a new cyber insurance product that features liability limits from $250,000 to $2m, a potential criminal financial loss sub-limit of up to $250,000, a business interruption indemnity period definition based on normalisation of income, innovative customer phishing theft cover, and default service provider coverage. Blue Zebra cyber head Richard Smith said the agency has “a broad appetite across sectors to ensure we can accommodate both established and new buyers of cyber insurance”.

HMIA reveals new website and branding

Heavy Motor Insurance Australia (HMIA) has unveiled a new website and branding. In addition to an updated aesthetic that HMIA chief executive Michael Zaknic described as a “clean, simple and modern”, the updated website was designed to be easier for brokers to navigate. “By keeping it simple, smart and focused, we believe we can put you in the driver’s seat when it comes to navigating the best insurance program for your clients,” Zaknic said in a message to brokers.

www.insurancebusinessonline.com.au

12-13_Underwriter Update-SUBBED.indd 13

13

19/03/2021 9:26:26 am

PEOPLE

THE BIG INTERVIEW

THE ART OF BUILDING TRUST What do you get if you think like an insurer, deliver like a builder and put yourself in the shoes of the insured? The best possible outcome for a property claimant, say Construct Services’ Darren Trott and Aeron Rowe

ASK DARREN TROTT to share a defining moment in his 35-year insurance career, and it would likely be this: standing in the driveway of a home that’s been completely destroyed by bushfire, hugging the owner, both of them in tears. When Trott, Construct Services’ national manager clients and relationships, talks about customercentricity, it’s more than a brand aspiration.

It’s a deeply entrenched belief born of years at the coalface of loss and disaster.

As for Construct’s national operations manager, Aeron Rowe, his understanding of policyholder and client needs is founded on a lifetime of roles in the building industry, from carpenter through to project manager and building supervisor. As Construct’s registered builder, with a licence across all states and territories, Rowe quite literally knows the nuts and bolts of delivering an exceptional customer experience.

It’s the marriage of these two different backgrounds and expertise that defines what Construct Services – the only national builder in Australia dedicated soley to the insurance industry – is all about.

“Our CEO, Andrew Annand, had the foresight to build a robust executive team, bringing together insurance building experience and claims management experience, so we have a deeper understanding of the challenges our clients and their customers face,” Trott says.

14

Great expectations Construct Services deals with jobs big and small – across residential, strata, commercial, and major and complex claims. Trott was brought in 18 months ago in a national sales role, with a brief to help double the size of the business over the next couple of years.

“Quite quickly, I saw the opportunity to work in partnership with Aeron,” he says, adding that his goal was “to turn Construct

with “a more empathetic view, more aligned with what the customer expectations are”.

Those expectations, unfortunately, aren’t always being met across the wider insurance industry. “Whether you are at the front of the queue, being treated promptly and with fairness, or left languishing waiting for days or weeks for help shouldn’t depend on which insurer you’ve chosen or the builder they appoint,” Trott says. “There should be the

“Our industry focuses on costs, quality and claim life cycle, which are all very important, but dealing with property repairs is not just a process, not just a building job. Property damage impacts people’s lives” Darren Trott, Construct Services into the insurance builder I always wanted during my time as an insurance claims manager”. In other words, a builder he could trust to deliver a quality job, on time, but who would also work to minimise the impact of loss on the policyholder.

“Darren’s insurer focus has been pivotal in the way I have set things up,” says Rowe, who adds that he’s come to see claims not purely through a lens of getting the job done, but

ability for a broker to go, ‘I’m going to get a good outcome on any property claim because I’m going to use someone I can trust, someone focused on my client.”

Brokers are an integral part of the claims process, yet they’re all too frequently left out of the communication loop, Trott says.

Partly to address this, Construct took an active role in the development of EnsureFlow software, which prepares and sends work orders

www.insurancebusinessonline.com.au

14-17_Big Interview-SUBBED.indd 14

19/03/2021 9:27:39 am

PROFILE

PROFILE

Name: Darren Trott Title: National manager clients and relationships Company: Construct Services Based in: Melbourne Years in the industry: 35

Name: Aeron Rowe Title: National operations manager Company: Construct Services Based in: Perth Years in the industry: 23

www.insurancebusinessonline.com.au

14-17_Big Interview-SUBBED.indd 15

15

19/03/2021 9:27:47 am

PEOPLE

THE BIG INTERVIEW to tradespeople.

“It allows the customer to be directly involved – they can send photos if they have concerns,” Trott says. “They can see their file.

We allow brokers access to the software, which is live, so they can see that the carpenter has been assigned, the painter is next and so on. It gives them an element of control.”

But no amount of technology – or competitive pricing – can substitute for what Trott believes is central to the process: compassion.

“Our industry focuses on costs, quality and claim life cycle, which are all very important, but dealing with property repairs is not just a process, not just a building job,” he says. “Property damage impacts people’s

it’s not a ‘one size fits all’ remedy. “What about when you’re dealing with an 80-year-old who doesn’t have email? Or someone who will only communicate via text? We have to adapt to what people need with multiple communication channels. We have SMS, people on site, a customer care flipbook we send to every new insured customer when they make a claim that sets out what is going to happen next.”

FAST FACTS: CONSTRUCT SERVICES

YEAR FOUNDED 1989

Smart growth With tools like virtual inspection technology ideally suited to pandemic-ravaged areas overseas, why not expand beyond the domestic market? The answer is not just that Construct doesn’t need to, but that doing so would

“You can’t automate everything. We need to know how people are feeling or what they’re wanting, so if something isn’t right, they can pick up the phone and speak with someone”

REPAIRS COMPLETED More than 360,000

STATES COVERED All states and territories

Aeron Rowe, Construct Services lives. Being able to take a day off work when the tradespeople arrive, maybe having to find alternative accommodation, getting the kids to school … all that stuff that I think, historically, the insurance industry has been pretty poor at recognizing.”

So how do you eliminate these shortcomings, especially as natural disasters continue to become more frequent? For Construct, the key has been a business model that is adaptable, agile and future-focused. Virtual inspection technology, already a part of the company’s operations, came into its own during lockdown.

“Insurers and builders were scrambling and saying, ‘Oh no, how are we going to inspect property damage when we can’t send people out?’” Trott says. “They had to find the technology, trial it, but we were already using it. Virtual inspection is rapid, safe and efficient, and insured customers have really enjoyed the interactivity – it’s put them in control of showing us the trouble spots.”

Communication is also vital, Trott says, and

16

undermine its very strengths.

“Insurers want the level of service the mum-and-dad builder can deliver, but they want that across the country,” Trott explains.

“Traditionally, no one has been able to do that.

That’s our sweet spot – we are nimble enough to adapt quickly to our clients’ needs, yet large enough to provide consistent quality outcomes anywhere in the country. We don’t want to be so big that quality and service get compromised.”

This is all part of “thinking like an insurance company”, Trott says, and giving the market choice. Construct aims to grow relationships with brokers and underwriters and to continue its investment in major and complex claims, an area where the company now has experts in each state.

Construct is also continuing to invest in technology – in addition to EnsureFlow and virtual inspections, another innovation due for release soon is an Uber-style insured customer care app.

“It’s a great communication tool which

SPECIALTIES Emergency make-safe, burglary, storm, flood, fire, impact, major and complex claims enables the policyholder to see what the next step in their claims process is,” Trott says. “It’s something we’d love to see brokers be able to offer their customers.”

But while tech advances like these are “fantastic”, Rowe says, there’s a line that gets blurred sometimes. “You can’t automate everything. We need to know how people are feeling or what they’re wanting, so if something isn’t right, they can pick up the phone and speak with someone. Our make-safe call centre is there 24/7. We are trying to expand all those pathways – make them bigger and faster with better touchpoints.”

It’s all part of building a reputation as a trusted problem-solver – and, says Trott, “doing that in a way that takes the insured customer on that journey, supports the broker and preserves that relationship”.

www.insurancebusinessonline.com.au

14-17_Big Interview-SUBBED.indd 16

19/03/2021 9:27:45 am

Emergency make safe repairs Domestic repairs Commercial repairs Strata repairs

Catastrophic response Major and complex claims

14-17_Big Interview-SUBBED.indd 17

Australia’s trusted insurance repair specialists

1300 266 787 24 hours construct@constructservices.com www.constructservices.com Servicing all metropolitan, regional and rural areas across Australia

19/03/2021 9:27:51 am

UPFRONT

OPINION

GOT AN OPINION THAT COUNTS? Email ibo@keymedia.com.au

She’ll be right, mate Australia’s secret weapon in fighting COVID-19 has been a spirit of mateship that can also be seen in the insurance sector, writes Stefan Feldmann IN THE COVID-19 pandemic, Australia and New Zealand can both be considered the lucky countries. We counted significantly fewer COVID-19 infections and deaths than other nations. A recent analysis by the Lowy Institute in Sydney confirmed that our region is among the most successful in containing the virus. Whilst New Zealand tops the list globally, Australia also made it into the top 10, next to Vietnam, Taiwan, Thailand, Rwanda and Iceland.

As island nations, New Zealand and Australia were able to close borders to international travellers early on and establish a quarantine system for returnees. New Zealand managed to eradicate the disease in the community, thanks to a tough sevenweek-long lockdown. Australia also locked the country down, noticeably with fewer and less severe restrictions.

In the end, both countries achieved elimination, although our good fortune here was interrupted by Melbourne’s major COVID-19 outbreak, hampering Australia’s recovery.

Since then, single cases or clusters in the community that slipped through quarantine have been contained via a strong contact tracing system and snap lockdowns.

Looking at the enviable life we lead again – visiting food venues, art exhibitions, the theatre and even sports events – I started to question why Europe, and particularly my home country of Germany, have not achieved the same. At the same time, I noticed that the German press were looking to Australia and

18

New Zealand as examples. The “zero-COVID strategy”, as they dubbed it, became a desirable option, and scientists, commentators and parts of the public demanded a strengthening of lockdown restrictions, which reduced daily infections but has not yet made a significant impact on death numbers, which still range in the hundreds in Germany every day.

eties”, explaining that this made a strict lockdown and quarantine much harder to accept in Europe. The introduction of QR codes, for example, is unthinkable for many Europeans, who have experienced suppressive regimes before. “If this was implemented here in Europe, it would remind me of the communism that I grew up in when I lived in Hungary,” an old friend told me when I counted out the measures that work for our region.

However, in my opinion, there’s another aspect that sets us apart, and it’s the one I am most proud of: Australian mateship. In the past months, I have witnessed countless acts where people sprang into action to help neighbours, looked after the elderly, took in and provided support to stranded backpackers, and supported struggling local businesses.

Although experiencing certain hurdles ourselves due to the disruption of the global supply chain, the HDI Global SE team has so far coped extremely well, and I attribute this to our embracing of the true spirit of mateship. By distributing UberEats vouchers,

“I have witnessed countless acts where people sprang into action to help neighbours, looked after the elderly, took in and provided support to stranded backpackers, and supported struggling local businesses” By studying experts’ opinions, I’ve learnt that we are indeed lucky. Catherine Bennett, an epidemiologist at Deakin University in Geelong, explained in an interview in The Age that autumn and winter in Europe created more favourable conditions for COVID-19, and a lack of sunlight also meant the virus could survive longer on surfaces. William Rawlinson, a virologist from the University of NSW in Sydney, told the German paper Die Welt that the “large number of border crossings” in Europe made the Australian and New Zealand strategy (closed border plus quarantine) basically impossible there.

Rawlinson also commented on the “very long history” of “open and transparent soci-

booking cooking sessions and cocktail-making classes, and hiring magicians and musicians for virtual shows, we not only supported the community and hard-hit industries, but also helped raise our own spirits and those of our staff, broker partners and clients.

As a result, I can truly say that I have never felt more engaged in this community.

The popular saying “She’ll be right, mate” has really hit home.

Stefan Feldmann is the managing director and regional head for ASEAN and Australasia at industrial insurer HDI Global SE. He joined the company in 2010 and has considerably expanded its business engagement in the region.

www.insurancebusinessonline.com.au

18_Opinion-SUBBED.indd 18

19/03/2021 9:30:45 am

SPECIAL REPORT

BROKERS

2021

This year’s Elite Brokers tell Insurance Business how they managed to find incomparable success during one of the most difficult years Australia’s insurance sector has seen

CONTENTS

PAGE

Feature article .............................................. 20 Methodology ................................................ 21 Elite Brokers 2021 list .................................. 23 Profiles .......................................................... 24 Last year’s winners ..................................... 26

www.mpamagazine.com.au

19-26_IBW EliteBrokers 2021-SUBBED.indd 19

19

19/03/2021 10:20:10 am

SPECIAL BUSINESSREPORT STRATEGY

ELITE BROKERS 2021

ELITE BROKERS:

Rising above the challenges TO SAY it’s been a challenging time in Australia’s insurance industry would be an understatement. A surge in claims arising from natural disasters – including bushfires, hailstorms and floods – has ripped through the sector and conspired with a global pandemic to severely test insurers’ resilience.

According to a KPMG survey, the Australian general insurance market saw an almost 50% year-on-year drop in profits during the first six months of 2020.

Higher reinsurance costs, changes in legislation, threats to cybersecurity and a consequent hike in cyber risk premiums,

unfavourable investment results, reduction in capacity, and the battle to stay relevant and ahead of the game in an increasingly digitised world – these are just some of the challenges in a rapidly evolving insurance sector. Add to this an ongoing lack of suitably skilled staff, and the obstacles can start to seem insurmountable.

Yet the 20 men and women who made Insurance Business’ 2021 Elite Brokers list have shown that it’s not only possible to ride the waves of these unprecedently difficult times, but to thrive, innovate, grow and even give back while doing it.

SMEs’ TOP 5 REASONS FOR CONSIDERING A BROKER

“Only provide to your clients what you would present to your own family. It’s the one defining rule of our business” David Summers, Ausure Horizon Insurance Above and beyond

Getting cheaper prices

For David Summers, managing director of Ausure Horizon Insurance and this year’s number-one Elite Broker, the bottom line is simple: “Only provide to your clients what you would present to your own family,” he says. “It’s the one defining rule of our business. I follow it, and every member of our team – from the brokers to the night cleaners – follows it.”

Communication with clients is also key – especially the face-to-face interactions that were put on pause during COVID-19.

Six-time Elite Broker Dale Hansen, CEO of Austbrokers Coast to Coast, says that although the majority of lockdown restrictions have been lifted, many brokers are continuing to call clients rather than visit them and have become used to sending

53% Expert knowledge and advice

26% Guidance on insurance issues

25% Personalised service

25% Knowing a broker will provide the correct coverage

20% Source: SME Insurance Index 2020, Vero

20

www.insurancebusinessonline.com.au

19-26_IBW EliteBrokers 2021-SUBBED.indd 20

19/03/2021 10:19:49 am

premium invoices electronically.

“Brokers need to engage with their clients more and really understand their clients’ business in a much better way than they have done in the past,” Hansen says. “We must do things differently than the direct-to-market insurers, because if we are not value-adding, the broker will lose to the direct-to-market insurer on price each and every time.”

Maria Tepelidis, operations manager at Scott Winton Insurance Brokers, says talking clients through the data is pivotal in helping them understand why their premiums have gone up.

“Data is important: having the facts in front of you, showing clients the reporting, explaining the hard market and the effect of catastrophes,” she says. “It’s important that this data is understood and that visualisation is there.”

community, and to improve the image of insurance brokers at any and every opportunity we have.”

Amid COVID-19 restrictions, many of this year’s Elite Brokers strived to support team members, providing guidance, mentoring, leadership and an interest in their team’s overall wellbeing. Elite Broker Lisa Carter, managing director of Clear Insurance, says she actively encourages every member of her team to stay fit and healthy, as it enables them to perform their best.

“My team and I enjoy giving each other a hard time when working out with our trainer; it’s wonderful camaraderie building in our team,” she says. “The team that trains together stays together!”

In their unrelenting drive to deliver an exceptional product, this year’s Elite Brokers are also continually upskilling, learning and

“The best results will be achieved in the market by cultivating strong relationships with both clients and insurers and operating with a risk advice focus” Lisa Carter, Clear Insurance Also evident among this year’s Elite Brokers was a clear duty of care to the wider community, to the industry itself and to the next generation of brokers. For these brokers, it’s not just about managing risk for their clients, but about protecting the future of an industry they’re all passionate about.

“We should not see our main purpose as making a profit year on year for our shareholders and other stakeholders,” Hansen says. “While this is clearly important, we need to contribute to and educate the

gaining new qualifications to present themselves as trusted, professional risk advisers who are on the same level as a client’s accountant or solicitor.

“COVID has reinforced my view that our brokers need to be much better educated than was previously the case,” Hansen says.

Elite Broker Adam Ware, partner of BJS Insurance Brokers in Gippsland, agrees.

Because insurance is a complex product that is forever evolving, he says, it’s important to take time to understand and digest the

METHODOLOGY To develop the Elite Brokers list, Insurance Business uses an objective means of ranking the best-performing insurance brokers in Australia – not just those with the biggest portfolios or the largest clients. Each broker was required to send their own details to be eligible, along with details of a contact who could verify those figures.

The criteria included:

• Number of policies written • Total revenue • Revenue per policy • Number of clients • New clients • New client revenue • Client retention Each broker was ranked in each of these measurements, and the sum of their rankings was calculated to determine their final placement on the list.

9th Consecutive year of IB’s Elite Brokers list

1,019 Average number of policies written by this year’s Elite Brokers

21%

Average revenue generated by this year’s Elite Brokers

www.mpamagazine.com.au

19-26_IBW EliteBrokers 2021-SUBBED.indd 21

21

19/03/2021 10:19:55 am

SPECIAL BUSINESSREPORT STRATEGY

ELITE BROKERS 2021

TOP INSURANCE CHANGES SMEs ARE CONSIDERING 20%

15%

Broker clients

20%

16%

Direct buyers

15%

11%

10%

6%

5%

7%

6%

3%

2%

0%

Reducing or removing insurance

Pushing back for a better deal

Changing insurers and/ or brokers

Making payment changes

0%

Moving to direct Source: SME Insurance Index 2020, Vero

“If we are not value-adding, the broker will lose to the direct-tomarket insurer on price each and every time” Dale Hansen, Austbrokers Coast to Coast changes rather than learning everything on the go.

“The likely move to the Diploma of Insurance Broking being the base-level qualification for brokers is a really good start and appears to be strongly supported from most in the industry,” Ware says.

A blot on the landscape?

When it comes to emerging trends in the industry, Summers identifies one that causes him concern: major insurance companies completely withdrawing from coal mines

22

and any companies associated with the mining industry simply because it is seen as an environmental ‘dirty business’.

“Businesses now have trouble obtaining insurance should more than 30% of their services or clientele be to the coal mining industry,” Summers says. “Car dealers, real estate, clothing retail, food or whatever else will find it very hard to obtain insurance in the near to present future.”

He says he would rather see higher rates rather than straight declines. “The insurance company spin on supporting green and

the mass exodus will hurt all Australians,” he says. “Should support to an industry be removed, it should be done so in a responsible manner. While I support green energy, consider this: Australia has the cleanest coal in the world. In stopping production, countries that rely on Australian coal will look elsewhere, and the emissions and energy expended abroad to produce the coal are far more detrimental to the environment.

It is almost irresponsible to discontinue the Australian supply right now, when you consider the net global effect.”

As for emerging trends that will bring opportunities for brokers in 2021, Ware notes that operational changes prompted

by COVID-19 have opened the door to new insurance requirements.

“For example, hospitality venues now offering home delivery may require transit or commercial motor insurance,” he says, “and professional practices with equipment in the private homes of employees working remotely may require extensions to their contents/stock and theft coverage.”

Carter believes the hard market is here to stay for some time yet, which she feels will give brokers an opportunity to move away from a purely transactional approach and instead position themselves as advisers who can deliver solutions for their clients’ specific risk mitigation needs.

“The best results will be achieved in the market by cultivating strong relationships with both clients and insurers and operating with a risk advice focus,” Carter says.

Maria Tepelidis likewise sees nothing but positives ahead in the post-COVID-19 world.

“If anything, this pandemic has given our brokers a window, an opportunity where they can explain to the client how important it is to be adequately covered,” she says. “Insurance has sometimes been at the bottom of the list, but with the interruption of business during COVID, now everyone is realizing how much we need it.”

www.insurancebusinessonline.com.au

19-26_IBW EliteBrokers 2021-SUBBED.indd 22

19/03/2021 10:19:48 am

BROKERS

2021

1 David Summers

11 Lisa Carter

Director Ausure Horizon Insurance

Managing director Clear Insurance

Phone: 1300 639 000 Email: horizon@ausure.com.au Website: ausurehorizon.com.au

Phone: 07 3174 5013 Email: lisa.carter@clearinsurance.com.au Website: clearinsurance.com.au

2 Gavin Doherty

Principal, strategic risk Marsh 3 David Smith

Senior account manager Scott Winton Insurance Brokers 4 Michael Pham

Client manager Aon Risk Solutions 5 Dale Hansen

CEO Austbrokers Coast to Coast Phone: 07 5586 9944 Email: dale@abc2c.com.au Website: abc2c.com.au 6 Bonni Gordon

Director Global Risks 7 Gary Sim

Founder/director CCM Insurance Group 8 Simon Gray

State manager, NSW/ACT Planned Cover 9 Ken Dixon

Director/insurance broker Dixon Insurance Services 10 Dean Bowen

Managing director DLB Insurance and Risk

12 Michael Stewart

Director Stewart Insurance Group 13 Evan Jackson

Owner/managing director Guardian Insurance Brokers 14 Schalk van der Merwe

Director Ominsure 15 Adam Ware

Partner BJS Insurance Brokers (Gippsland) Phone: 03 5671 3634 Email: adam.ware@bjsib.com.au Website: bjsib.com.au 16 Daniel Webber

Managing director Webber Insurance Services 17 Luke McMahon

Founder & CEO Bespoke Insurance Services Phone: 1300 513 612 Email: luke@bespokeinsure.com.au Website: bespokeinsure.com.au 18 Peter Thompson

Director Thompson Insurance

19 Eli Tatarka

SME Manager Scott Winton Insurance Brokers

20 Harpal Singh

Client relationship manager/director Insure Today

www.insurancebusinessonline.com.au

23

SPECIAL BUSINESSREPORT STRATEGY

ELITE BROKERS 2021

DAVID SUMMERS Managing Director

1

Ausure Horizon Insurance

W

ith a long-burning desire to build a brokerage that would educate clients, could grow, could change rapidly and would take great care of its people, David Summers left his old firm of 15 years and started Ausure Horizon. The formula was simple, he says: “Let’s do whatever it takes to have every client feeling like we are right beside them in their business.”

Three years on, that formula has paid off. Not only has Summers been a regular fixture on the IB Elite Brokers list, but he was recently awarded Advisr’s 2020 Authorised Representative of the Year Award. He attributes these successes to his outstanding team and Ausure’s rock-solid support network.

Summers also has a long-held belief that any policy going out to a client needs to be one he would be comfortable giving to his own family. Whether that client is a billion-dollar multinational or a sole trader, it’s the same treatment for all – an undeniable reason why his clients stay with him for decades.

What does Summers love so much about this work? “The ability to continually move the goalposts,” he says. “Our system is proven, and I now have a voice in the industry that allows me to speak my mind and assert only the best outcomes for our clients. Changing the way we do things in our industry is a very exciting place to be.”

24

DALE HANSEN CEO

5

Austbrokers Coast to Coast

D

ale Hansen has been a director at Austbrokers Coast to Coast since 2012. During that time, he has turned the company on its head, resulting in it becoming the most awarded insurance brokerage in the country, winning ANZIIF Small Broker of the Year in 2016 and 2017 and Brokerage of the Year at the Insurance Business Australia Awards in 2018, 2019 and 2020.

Additionally, in 2016, Hansen received the NIBA Queensland Insurance Broker of the Year Award, along with the coveted NIBA Australian Insurance Broker of the Year Award. These awards are the result of the high level of customer service he provides to clients, in conjunction with his outstanding technical knowledge and experience.

Hansen has more than 30 years of experience in the insurance industry and is also a renowned speaker and industry mentor. He regularly speaks at industry events on topics including relationshipbuilding, customer experience, quality service and advice, dealing with objections, and leadership and team development.

Hansen is passionate about setting the standard for excellence in the insurance industry; throughout his career, he has mentored many young brokers to build their careers. He believes that continuing education and professional development are the keys to success in the insurance industry.

www.insurancebusinessonline.com.au

19-26_IBW EliteBrokers 2021-SUBBED.indd 24

19/03/2021 10:20:24 am

LISA CARTER Managing Director

11

Clear Insurance

L

isa Carter has more than 25 years of experience as an insurance adviser. During her long and productive career, which includes 11 years with insurance broking giant Aon, Carter has delivered friendly, prompt and professional service while building solid relationships with her clients.

Carter founded Clear Insurance in 2010 as a sole director.

She specialises in designing bespoke insurance and risk programs, with a particular interest in complicated and hard-to-place accounts, and she mentors and engages her staff with regular team meetings and team-building days and activities.

Carter also serves as a mentor for young insurance brokers in the Insurance Advisernet network, as an industry expert for risk and insurance at Queensland Leaders, and as an activator at SheEO, a global community that supports and celebrates female entrepreneurs. In addition, she holds monthly mentoring sessions and educational presentations for Queensland businesses and leaders.

Carter has received several awards for her exceptional work, including an Excellence Award for Brokerage of the Year (1–5 Staff ) at the 2020 Insurance Business Australia Awards. She is also a two-time member of IB’s Elite Women list and was a finalist for Advisr’s Top Australian Insurance Broker Award in 2020.

ADAM WARE Partner and Branch Manager

15

BJS Insurance Brokers (Gippsland)

A

dam Ware is the co-owner and branch manager of BJS Insurance Brokers in Gippsland, where he leads a dynamic team of 30 while also managing his own portfolio of clients.

He is also the founder of Holiday Rentals Insurance, a major component of the BJS Group, which he continues to grow via networking within the property management industry.

Ware kickstarted his broking career in 2008 with a traineeship at BJS. A year later, he became an assistant account manager and was promoted to account manager in 2011. In 2015, he joined the BJS Gippsland branch as joint office manager, tasked with the day-to-day operation of the branch; in 2016, he was offered the opportunity to become a shareholder/partner of BJS Gippsland – an impressive feat for someone so young.

Ware has always been among the top performers at BJS. His achievements include winning NIBA’s Warren Tickle Memorial Award for Young Professional Broker of the Year in 2017, scooping Young Gun of the Year at the Insurance Business Australia Awards in 2018 and coming in fifth on IB’s 2020 Elite Broker list.

Passionate about education and professional development, Ware holds an Advanced Diploma of Insurance Broking and a NIBA fellowship and is a senior associate of ANZIIF.

www.insurancebusinessonline.com.au

19-26_IBW EliteBrokers 2021-SUBBED.indd 25

25

19/03/2021 10:20:13 am

SPECIAL BUSINESSREPORT STRATEGY

ELITE BROKERS 2021 THE 2020 ELITE BROKERS

1

Russell Bresland, Principal/managing director Bresland Insurance Group

2

Victor Dabrowski, Director Securitex Financial Services

3

David Smith, Senior account manager, SME division Scott Winton Insurance Brokers

4

Bonni Gordon, Principal Global Risks

5

Adam Ware, Partner and branch manager BJS Insurance Brokers (Gippsland)

tie

5 tie

7 tie

7 tie

7 tie

LUKE MCMAHON Founder & CEO

17

Bespoke Insurance Group

B

espoke Insurance Group’s Luke McMahon is an experienced corporate and SME account manager with a demonstrated high level understanding of the insurance market, both domestically and internationally.

McMahon specialises in ensuring his clients remain a pivotal part of the decision-making process, and he operates with an “answer the phone, do it now” approach. He is dedicated to ensuring his team sets the bar for service in insurance broking, always going above and beyond to provide clients with the right solutions for their general insurance needs.

McMahon is also an outstanding networking professional who assists his clients in growing their businesses and networks by connecting them with like-minded companies, as well as the best services and resources.

McMahon believes his success comes primarily from his strong family unit, but also from the strong support he receives the team at Australian Broker Network. He credits the ABN team as the key component to the success of Bespoke Insurance Group.

26

Eli Tatarka, Account manager and SME division manager Scott Winton Insurance Brokers Simon Gray, State manager, NSW/ACT Planned Cover Zoe Evans, Senior account executive Gallagher Vishal Kapoor, Director McLardy McShane Kapoor

10

Ken Dixon, Director/insurance broker Dixon Insurance Services

11

Evan Jackson, Owner and managing director Guardian Insurance Brokers

12

Gary Sim, Principal/director CCM Insurance

13

Lara Morgan, Partner allinsure

14

Dale Hansen, CEO Austbrokers Coast to Coast

tie

14 tie

Trent Mockford, Authorized representative Brookvale Insurance Brokers

16

Matthew Bates, Managing director – insurance Bell Partners Insurance

17

Gavin Doherty, Principal – strategic risk Marsh

18

Brent Campbell, Executive director Oracle Group

19

Casey Caswell, Chief of sales Shielded Insurance Brokers

20

Retha Van Der Merwe, Managing director Omnisure

www.insurancebusinessonline.com.au

19-26_IBW EliteBrokers 2021-SUBBED.indd 26

19/03/2021 10:20:21 am

FEATURES

SECTOR FOCUS: RENEWABLE ENERGY

The green light for renewables As the effects of climate change become more apparent, the need for renewable energy projects is clear. However, insuring them effectively presents challenges and opportunities in equal measure

THE AUSTRALIAN energy sector is, by many metrics, undergoing a massive shift.

A record 26.5% of electricity in Queensland, NSW, ACT, Victoria, South Australia and Tasmania was generated through the use of renewables such as wind and solar power between September 2019 and September 2020, according to research from progressive think tank The Australia Institute.

Meanwhile, the Clean Energy Regulator estimated that an unprecedented 7.0 gigawatts of new renewable capacity was installed last year as more and more Australian businesses and households opt for energy-capturing sources like rooftop solar panels.

Given Australia’s status as a so-called sunburnt country, harnessing the abundance of natural energy it is exposed to will be

www.insurancebusinessonline.com.au

27-29_Sector Focus_Energy-SUBBED.indd 27

27

19/03/2021 9:31:35 am

FEATURES

SECTOR FOCUS: RENEWABLE ENERGY

essential in combating the effects of climate change. According to Lee Garvey, head of financial solutions for Australia and New Zealand at Willis Towers Watson, there have been “some very interesting positive developments” in the insurance industry’s support of renewable energy projects across the AsiaPacific region.

“The insurance industry does look to respond positively to meet ESG [environmental, social and governance] criteria these days, and as part of that, many companies are looking to reduce their exposure to coal,” Garvey says. “What this means is that they’re

acquisitions space as well, with certain larger companies starting to see less value in older projects and developments and resultantly offloading them to smaller companies.”

FAST FACTS: RENEWABLE ENERGY IN AUSTRALIA

Cause for concern?

It’s not all smooth sailing in the renewable energy insurance market, however. Costs associated with extreme weather events and natural disasters reached $35bn between 2010 and 2019, according to a February report from the Climate Council, which warned that this figure could reach an unthinkable $100bn per year by 2038 if action is not taken soon.

“Mitigating weather risks and accurately underwriting coverage considerations are going to be central challenges that the Australian insurance industry will need to manoeuvre through”

Wind and hydroelectricity are the country’s primary renewable energy sources, accounting for more than 90% of Australia’s renewable electricity

Renewable energy generation in Australia has more than doubled in the past decade

Small-scale solar generation grew by 25% in 2019, while wind generation grew by 19%

Ben Hissey, Liberty Specialty Markets increasing their knowledge around energy production forms such as wind and solar.

The insurance market in Asia, for example, has been very active in looking at wind farms, and having spoken to insurers in the Australian market, renewables are definitely an area of focus and growth there, too.”

With almost two decades of experience in the energy insurance sector under his belt, Ryan Mansom, head of Gallagher’s national energy practice, sees renewable energy as a segment that is “definitely starting to take off here in Australia”.

“Finding clean ways to produce energy is clearly a point of emphasis in the industry as technological advancements continue and allow this to become easier,” Mansom says.

“Decommissioning of oil and gas infrastructure is also something that is going to be a big thing moving forward, and I think there’s likely to be a lot of activity in the merger and

28

For John Rae, Willis Towers Watson’s Australasian renewable energy leader, one of the biggest issues facing a widespread transition to renewable energy sources in Australia is this exposure to natural catastrophes. An area like northern Victoria, which Rae says is “home to significant renewables infrastructure”, has become one of the most bushfire-prone regions in the world, making certain risks nearly impossible to insure.

“In Australia, we’re incredibly exposed to a lot of natural catastrophes, including cyclones, hailstorms, floods, bushfires and more,” he says. “Adding to that is the fact that many renewable projects are built in areas of high wind and with high amounts of sunshine, which can help maximise their yield but also brings added risk. All in all, developers need to be very aware of the risks associated with these weather events, since a natural catastrophe can cause a level of damage overnight that

South Australia is currently aiming to reach net 100% renewable electricity by 2030 Sources: Parliament of Australia; World Economic Forum; Department of Industry, Science, Energy and Resources; Renew Economy

takes a long time to recover from.”

Another impediment to wide-scale renewable energy adoption is intermittency, Rae says. “The vast majority of new renewable energy projects in Australia are wind- or solar-powered and, as a result, don’t tend to produce energy at a standard flat rate,” he says. “Other countries like New Zealand use hydro sources, which can react quite quickly to changes in demand to produce large amounts of their electricity in a sustainable way. With solar and wind, there’s somewhat of a lack of reactiveness, and this,

www.insurancebusinessonline.com.au

27-29_Sector Focus_Energy-SUBBED.indd 28

19/03/2021 9:31:52 am

combined with energy network transmission issues in Australia, can lead to difficulties in responding to the market’s needs.”

Though the occurrence of extreme weather events in Australia can’t be eliminated, there are steps renewable energy producers can take to protect themselves against these and other risks. Liberty Speciality Markets, for example, recently released a new parametric insurance product called Weather Index, which helps protect businesses from variation in sunshine duration, wind speed and direction, and other unexpected weather conditions.

While this type of insurance has traditionally been purchased by agricultural enterprises, Liberty designed Weather Index with more diverse applications in mind, including renewable-energy-producing enterprises such as solar and wind farms, which are reliant on certain types of weather, says Ben

Hissey, senior vice president for Asia-Pacific at Liberty.

“COVID-19 has understandably dominated the conversation in insurance over the last year, but I think we shouldn’t forget the impact that natural catastrophes can have,” Hissey says. “Mitigating weather risks and accurately underwriting coverage considerations are going to be central challenges that the Australian insurance industry will need to manoeuvre through.”

A sense of optimism Despite the issues that face renewable energy, the sector has a bright future in Australia; Rae believes its growth is inevitable.

“From a purely economic point of view, renewable energy sources are significantly cheaper than other energy sources, making them hugely attractive for electricity generation moving forward,” he says, adding that

“We like to encourage the dialogue between these renewable project developers and their insurers so that both sides can make the best of the situation” John Rae, Willis Towers Watson

PREMIUMS ON THE RISE The hardening insurance market is causing premiums in the renewable energy sector to increase by 10% to 40%, with even more significant casualty rating increases in certain instances, according to Willis Towers Watson’s latest Renewable Energy Market Review. The global brokerage highlighted COVID-19related supply chain interruption risks, aged assets, natural catastrophe risk and the pace of technological change as some of the key challenges facing the renewables market.

there are also social expectations for companies to adopt renewable energy sources and reduce their carbon footprints.

This is perhaps most apparent in the ongoing saga surrounding the controversial Adani Carmichael coal mine – at this point, 32 insurers, including HDI, AXA XL and Liberty Mutual, have indicated that they will not provide coverage for the project, which is expected to add around 4.6bn tonnes of carbon pollution to the atmosphere over its lifetime.

In Rae’s view, the fact that many leading insurers in Australia and beyond have significant experience in the renewable energy sector is cause for optimism.

“We like to encourage the dialogue between these renewable project developers and their insurers so that both sides can make the best of the situation,” he says.

“If they’re working together and combining the tools at their disposal to effectively mitigate any risks that present themselves, that’s going to deliver the best result.”

Ultimately, Rae believes working in a constantly evolving sector like renewables is an exciting and rewarding challenge.

“It’s a real problem-solving industry,” he says, “and the people in it are so passionate about what they do that you can’t help but be inspired by them.”

www.insurancebusinessonline.com.au

27-29_Sector Focus_Energy-SUBBED.indd 29

29

19/03/2021 9:32:05 am

PEOPLE

BROKER INSIGHT

Redefining client relationships At Megalines Insurance & Risk Advisers, taking a multifaceted approach to customer engagement was a priority long before COVID-19 arrived. Founder and CEO Bunmi Ajayi tells IB how the brokerage plans to continue innovating throughout 2021 BUNMI AJAYI believes the COVID-19 pandemic has presented Australian insurance brokers with “an opportunity to rethink, reset and repurpose how we deliver our services to clients and go beyond their expectations”. The founder and CEO Megalines Insurance & Risk Advisers, Ajayi is a former NIBA Broker of the Year with decades of industry experience under his belt, making him extremely well positioned to provide an informed prediction during these unprecedented times.

Ajayi’s interest in insurance began after he completed high school in Nigeria. Hoping to study architecture or accounting, he instead “fell into” an insurance degree program at the University of Lagos and quickly developed a passion for the subject. In 1999, Ajayi moved to Australia to further his career, and in 2007, he founded Megalines.

Looking to the year ahead, Ajayi says he hopes to position the brokerage to “be a force for good” and to “accelerate the pace at which we continue to add value” for clients.

“Whenever there is a disruption, room for potential is created, and I am always one who sees opportunity in every challenge. We’re looking to ramp up our AQ – our adaptability quotient – by being more flexible in addressing the needs of our clients and using different methods to proactively engage with them.”

30

This client engagement, he adds, will be guided by a hybrid approach that will incorporate face-to-face meetings, videoconferencing tools and more subtle notifications via text. The digital revolution brought on by COVID-19 was readily taken up at Megalines, which Ajayi says has “always been at the forefront of technology”.

“We introduced our own Megalines Insurance Broker app several years ago when it wasn’t yet fashionable to be communicating with clients via such services, and so we have had these digital capabilities in place for a while now,” he says. “When the pandemic hit, it simply enabled us to try this out on a larger scale and to provide service to our clients no matter where they’re located.”

Many other industries have had to make similar digital shifts, so Ajayi sees cyber insurance as a particular area of growth for Megalines.

Though cybersecurity is typically framed as a point of concern for businesses, the brokerage also offers a specialised product aimed at

protecting families from such risks as identity theft, ransomware and cyberbullying.

“Ransomware insurance is definitely something that we’re focusing on and educating our clients about,” Ajayi says. “We’ve been having meetings with clients about how they can best manage their cyber risks – whether they’re working from home or simply being online and disclosing private information – and showing them the benefits and peace of mind that they can derive from this.”

For Ajayi, helping make clients more aware of the risks they face – and guiding them through the steps they can take to protect themselves – lies at the core of insurance broking.

“I see brokers as advocates for our clients, as people who look after the fine print and deliver informed advice on which policies you’ll need and which policies you can do away with,” he says. “Over these many years, I have come to be fully persuaded that the depth of what you know and the value that you add to others will make you stand out from the competitors.

A FAMILY AFFAIR Bunmi Ajayi isn’t the only member of his family working at Megalines Insurance & Risk Advisers. The brokerage’s eight-strong team includes his wife, Temi, who’s responsible for HR and business development, and their son, Tobi, who serves as an insurance broker and client advocate.

www.insurancebusinessonline.com.au

30-31_Brokerage Insight-SUBBED.indd 30

19/03/2021 9:32:35 am

FAST FACTS: MEGALINES INSURANCE & RISK ADVISERS

YEAR FOUNDED 2007

LOCATION Point Cook, Victoria

NETWORK Steadfast Group

SPECIALTIES Cyber, management liability, workers’ compensation, care and disability

AWARDS Bunmi Ajayi was named NIBA Broker of the Year in 2015

“Whenever there is a disruption, room for potential is created, and I am always one who sees opportunity in every challenge”

“If you’re running a business, you’re doing yourself a disservice to simply purchase insurance online without consulting a broker first.

Every business is different, with specific, unique coverage needs that the business owner might not even know about themselves. This is where the expertise of a broker comes into play.”

Though technology has automated certain elements of broking, Ajayi is adamant that the broker-client relationship should “never lose that personal touch. At the end of the day, our business is a relationship business.”

www.insurancebusinessonline.com.au

30-31_Brokerage Insight-SUBBED.indd 31

31

19/03/2021 9:32:43 am

FEATURES

SECTOR FOCUS: STRATA

View from the top When Kimberley Jonsson took the helm at underwriting agency CHU, she became one of the insurance industry’s youngest CEOs. She lets IB in on CHU’s strategy for the next few years and explains how the organisation is working with strata owners and brokers to help make properties safer 32

WHEN KIMBERLEY JONSSON applied for a job at strata specialist CHU 16 years ago – her first full-time employment after school – she never could have imagined that one day she’d be sitting in the CEO’s chair.

“To become CEO of the company where your career started is quite rare,” says Jonsson, who recently took over the reins of the underwriting agency from Bobby Lehane, who had served as CHU’s CEO since 2015.

Jonsson started her career in insurance after her first year at university – she’d worked casually at Target for five years, but when they stopped giving her hours, she needed to find a full-time job. She rose through CHU’s ranks, and by 2016 (at the age of 31), she was heading up a team of 20 as the organisation’s state manager for Queensland, a track record

www.insurancebusinessonline.com.au

32-35_CHU-SUBBED.indd 32

19/03/2021 9:33:19 am

Brought to you by

that netted her a spot on Insurance Business’ Young Guns list that year.

Jonsson distinguished herself as an effective senior manager – GWP grew by 35% during her three years at the Queensland branch – and while she calls her appointment as CEO a “testament to the opportunities in the industry”, she says her journey hasn’t been without obstacles.

“It wasn’t until I started to work for Bobby that my age stopped being an issue in my career progression,” Jonsson says. “I’m one of the youngest CEOs in insurance, and I hope my appointment demonstrates what you can achieve in such a vibrant industry.”

As for the challenges, Jonsson sees them as having been necessary to her progression.

“I can see with hindsight that those specific points in time were times of tremendous personal growth,” she says. “If I had given up – which any clever person likely would have – I wouldn’t have had the opportunities that came after.

“You can never stop learning, never stop growing. As the insurance industry continues to develop – and strata insurance is a very good example of this – to meet the changing demands of our customers, you can continue to simultaneously develop your skills and knowledge.”

Over 16 years, Jonsson has been witness to much change and innovation in the industry, with digitalisation at the forefront. Four years ago, Lehane oversaw the introduction of CHUiSAVER, the sector’s first digital underwriting agency, which he said was designed to “pre-empt digital disruption”. Now trading as Flex Insurance, CHUiSAVER uses the internally developed StrataTech platform, a self-service policy and claims management system that enables brokers to transact business online, alongside CHU’s new internally developed rating engine and quoting application. The underwriting platform includes commercial strata, too.

“This is the first time brokers have been

able to quote commercial strata online,” Jonsson says. “It’s been extremely popular since it was introduced.”

The demand for tailored, flexible insurance policies is growing, and the need to simplify the core strata insurance product is vital, she adds. Jonsson sees the shift toward brokers providing strata insurance continuing to accelerate.

quotes will continue to drive a shift to brokers for strata insurance,” Jonsson says. “CHU has moved to 80% broker distribution in recent years, which is a significant channel shift.”

Like other insurance customers, strata owners expect to have products that are tailored to their needs, so having the right technology to respond quickly and seamlessly is crucial, Jonsson says. “We want to take all

“With the increasing complexity of schemes, strata insurance is – and will continue to be – an ideal avenue for brokers to demonstrate their professionalism and the power of personal advice” Kimberley Jonsson, CHU “With the increasing complexity of schemes, strata insurance is – and will continue to be – an ideal avenue for brokers to demonstrate their professionalism and the power of personal advice to their clients,” she says.

The road ahead As for Jonsson’s goals as CEO, she wants to build on Lehane’s legacy – to see through CHU’s “strong and dynamic” strategy for the next six years, the cornerstone of which is to build an even closer relationship with brokers and their clients.

“The increasing complexity of schemes and changing legislation requiring multiple

of the effort out of dealing with CHU to make our service seamless, which will also enhance the service our broker partners can deliver to their clients.”

Open API allows connectivity with broker systems, and CHU is also working with optical character recognition (OCR) technology.

“This will allow us to read remittances, claim forms and quote slips,” Jonsson explains.

“This will have the benefit internally of not needing to re-key data. Externally, it means brokers don’t need to change what they do at their end in order to benefit from our systems.

For example, they can send their own slips to multiple insurers and receive a quote straight back from CHU.”

ABOUT CHU CHU is one of Australia’s largest and most awarded insurance underwriting agencies. The organisation created the very first strata plan insurance policy in Australia and started trading in Sydney in 1978. CHU has grown to become one of Australia’s largest strata insurance specialists, arranging insurance for more than 100,000 strata buildings.

For more information, visit chu.com.au.

www.insurancebusinessonline.com.au

32-35_CHU-SUBBED.indd 33

33

19/03/2021 9:33:22 am

FEATURES

SECTOR FOCUS: STRATA

THE IMPORTANCE OF MENTORS Kimberley Jonsson credits CHU’s strong people culture with giving her the chance to grow and gain experience – and ultimately ascend to the CEO role.

“I would say to those seeking a career in the industry to look for a company that has a culture which develops and grows its people,” she says. “Personal development of employees is about more than a good HR function. It fosters collaboration between the employee, their manager and the organisation to set goals and see them through in a way that is mutually beneficial.”

A Fellow of ANZIIF, Jonsson has been a member of the organisation’s Faculty Advisory Board for General Insurance since 2017. She says she has been “very lucky” to have had some wonderful mentors over the years – “people who, whether formally or informally, were willing to share with me their time and their experience. These relationships have been key in setting my own personal goals and seeing them through.”

Her advice to anyone looking for a mentor? Your effort and preparation are often the difference between a mentoring relationship that works and one that doesn’t. “If someone is giving you their time, it is up to you to ask questions, do your homework and engage in the relationship,” she says. “Make sure you pay for the coffee!”

CHU has also developed a “What is Strata Insurance?” video to help the community understand this unique type of property ownership and the legislative requirements for insurance.

“Late last year, we translated this educational video into Mandarin and have plans to create more in different languages in 2021,” Jonsson says. “We are constantly creating strata-related content for our intermediaries and strata owners to help demystify the insurance cover provided, identify common risks and how to avoid them.”

Cracks in the system In addition to COVID-19, there are two ongoing issues hanging over the strata sector: building defects and dangerous cladding. Trust in apartment buildings has been decimated by high-profile building defects cases. However, Jonsson hopes the establishment of the NSW Building Commission will shake up the building industry and provide confidence for prospective buyers.

“The NSW construction watchdog now has the power to inspect building sites, prevent the issuing of occupation certificates, call for documents and – an important

34

feature – rectify serious defects and recovery of associated costs,” she says.

The dangers of cladding have been highlighted by a few major disasters, including a February 2019 fire that raced up dangerous cladding on the side of the 41-storey Neo200 apartment building in Melbourne. This was the same sort of cladding involved in London’s Grenfell Tower tragedy.

The good news, Jonsson says, is that apartment owners forced to replace flammable cladding on high-risk buildings across NSW will now be able to access interest-free loans as part of a $1bn government program over the next three years aimed at helping to resolve the crisis. The program includes $139m to offer technical support to owners for the remediation of at-risk buildings.

The NSW government’s move follows the Victorian government’s lead of funding rectification work. In July last year, Victoria announced a $600m package to directly cover owners’ costs to remove cladding from high-risk buildings.

The high-profile cases of dangerous cladding and other structural flaws have prompted some insurers to reduce their appetite for strata buildings – running the risk

Brought to you by

that, over time, some strata properties could become uninsurable. To address this, CHU has spent more time than ever working with brokers, strata managers and strata committees to ensure major defects are addressed.

“When a building has an issue, the best form of mitigation from that building becoming uninsurable is a proactive strata committee,” Jonsson explains. “This means the biggest impact a broker can have on the insurability of a building is to educate committees on their risks and how building maintenance can impact insurance availability and pricing.”

All about people Creating a company that is flexible and dynamic enough to tackle the needs of the ever-evolving strata market starts with hiring the right people. In this regard, Jonsson credits her predecessor with prioritising diversity and inclusion as a major plank of CHU’s strategy. This led to the company winning ANZIIF’s inaugural Excellence in Workplace Diversity and Inclusion Award in 2019.

Jonsson sees diversity and inclusion as key to providing a larger spectrum of knowledge, values and preferences – not to mention benefiting a company’s ability to innovate, improve its customer focus and promote employee morale. Plus, a diverse range of skills can offer an advantage to a company like CHU that caters to a multi-cultural, multi-generational customer demographic.

A decade and a half after first setting foot in CHU’s offices, Jonsson finds herself at the helm of an organisation that is working hard to dismantle barriers – including the ones she herself faced. CHU’s leadership team has an equal gender split, with ages spanning from 20s through to 60s, and women represent 55% of all leaders at the company.

“While diversity has always been part of CHU’s DNA and contributed to our success, in recent years, we made the decision to focus on it as a strategic imperative,” Jonsson says.

“It’s absolutely critical to our strategic success over the next five to 10 years.”

www.insurancebusinessonline.com.au

32-35_CHU-SUBBED.indd 34

19/03/2021 9:33:27 am

WORKING TOGETHER SINCE 1978 Supporting the strata community with cladding and building defects, natural disasters and remediation. chu.com.au CHU Underwriting Agencies Pty Ltd (ABN 18 001 580 070, AFSL 243261) acts under a binding authority as agent of the insurer, QBE Insurance (Australia) Limited (ABN 78 003 191 035, AFSL 239545)

32-35_CHU-SUBBED.indd 35

19/03/2021 9:33:32 am

FEATURES

SECTOR FOCUS: CARGO

Navigating the storms As the marine industry undergoes unprecedented challenges, Kurt Herron and Dan Morrison of NTI explain why proactivity and innovation are key to the company’s cargo insurance strategy

MARINE INSURANCE is currently going through the biggest changes Daniel Morrison, national cargo product manager at NTI, has seen in his 22 years in the industry.

The marine sector’s exposure has changed significantly, he says, with bigger vessels, as well as changes in the way goods are delivered and how the logistics industry operates with cargo.

But the underwriting approach hasn’t changed to match it, Morrison says. Poor profitability in the global cargo insurance market has seen reinsurers reducing capacity, changing their appetite or exiting the market altogether. And on top of all this, there’s COVID-19.

“The Australian marine insurance market handles domestic business very well, but, as with all insurers, relies on reinsurance markets – the majority of which are overseas insurers – to back us up,” Morrison says. “As they change their appetite or capacity for risks they will take on, we have to change how we do things as well. Sometimes they lose their appetite altogether. We have seen some reinsurers we relied on in the past pulling out of storage, for example – they’ve said, ‘It doesn’t make money; we’re not doing it anymore’.”

36

While individual insurers have made such changes in the past, Morrison says this is the first time he’s seen these types of actions across the entire market since he began his insurance career in 1998.

As insurance premiums have fallen and cargo insurance has become more commoditised, it’s become less focused on exposure and more on premium, Morrison adds – but that no longer works in today’s climate.

Today’s customer is looking for something more than just a policy when they pay their premium; they’re seeking added value. Which is why NTI is trying to do things differently.

“We’re saying, ‘Let’s look at what and how we service customers, and how we can innovate to provide value to customers, rather than what we charge’,” Morrison says.

Cargo insurance is a specialisation a lot of customers might not understand, so the broker’s role as translator between customer and insurer is increasingly important.

“The broker must understand the customer’s needs rather than offer just an off-the-shelf product,” Morrison says.

“Brokers deal with all sorts of cargo, from frozen and chilled meat to nuts and bolts to cars, and they can’t be experts on all of it –

ABOUT NTI For more than half a century, NTI has provided specialist cover for transport and logistics. Its national operations include four divisions covering marine (vessels and cargo), heavy commercial vehicles, plant and equipment, and truck assist. Each of the four divisions has its own dedicated risk engineer.

For more information, visit nti.com.au.

so they have access to the people within NTI who can talk them through what the policy covers and help them educate their customer about how their policy works.”

NTI also runs webinars and training sessions to upskill brokers. “We look at how we differentiate ourselves from a proposition and services perspective,” Morrison says. “We have more underwriters, more claims staff, our own internal recoveries team – that all sits within our own marine proposition and is available to all our customers.”

Proactive, not reactive In its battle to stand out from the crowd, one of the strongest pieces in NTI’s arsenal is Kurt Herron. NTI’s logistics risk engineer for the marine segment, Herron is “a huge bonus to NTI”, Morrison says, pointing out that no other insurance company in the Australian marine market has a dedicated risk specialist.

Herron has a logistics background and spent 15 years working in freight forwarding and shipping lines.

“I think there will be a shift, though it will be slow, towards proactive risk management,” Herron says. “Rather than going to a customer and saying, ‘I am in your warehouse; you have a light next to a fuel can, and that’s a fire hazard’, it will be more about understanding who the customer thinks they are. Just because they have a cargo policy with us may not mean they see themselves as a cargo mover; it’s just a cost of doing their

www.insurancebusinessonline.com.au

36-39_Marine-SUBBED.indd 36

19/03/2021 9:34:01 am

Brought to you by

business. So that proactive, holistic view of insurance makes for better engagement, so we get better buy-in from our customer. We don’t want to just be another yearly bill that you curse and then pay.”

Being proactive is important because there’s an increasingly significant factor over which cargo owners have no control – larger vessel sizes. This trend toward mega-ships presents whole new challenges.

“They are the future,” Herron says – but he adds that they’re not always safer, are harder to navigate, and groundings are more costly to deal with, as there is more cargo and fuel to salvage. So should these ship-zillas be treated differently to other vessels from an insurance standpoint?

“It’s the million-dollar question,” Herron says. “How do you minimise risk and exposure when you have more accumulation and no control? The vessels that come down to Australia, the biggest are around 10,000 TEU;

it’s a mammoth task to get them in and out, as we either don’t really have the deep-water ports to go much bigger, or when we do, we’ve got infrastructure that blocks them, like the West Gate Bridge in Melbourne. So you put your cargo on a smaller vessel and take it up to Singapore; then it’s got to go to Europe and

ship One Apus en route from China to the US last year, which resulted in the loss of some 1,800 containers.

“In the next few months to a year, some serious questions will be asked of the manufacturers of these ultra-large vessels and their owners,” Herron says.

“The broker must understand the customer’s needs rather than offer just an off-the-shelf product” Dan Morrison, NTI ends up on one of those massive vessels – you have no control over what vessel it goes on.”

Herron believes the industry has “jumped the gun a little in terms of how big these vessels have gone” – especially in light of recent serious container overboard events, like the multiple stack collapse of container

For Morrison, those serious questions include: “Are these ships properly tested – have we seen how they cope with increasingly extreme weather? We have greater value on a single vessel, but have we changed our underwriting approach, our limits and our ability to control that risk within our port-

www.insurancebusinessonline.com.au

36-39_Marine-SUBBED.indd 37

37

19/03/2021 9:34:08 am

FEATURES

Brought to you by

SECTOR FOCUS: CARGO

folio? Have customers understood that even though they have, say, 10 containers leaving Melbourne on different days, when they get to Singapore or China to be shipped to Europe, they get put on one of these larger container vessels and suddenly they have 10 on one vessel? Is the policy enough to protect them if that ship sank? Policy limits are usually per loss. Are we keeping up with customer needs and industry changes?”

With shipping line reliability at an all-time low, preparedness and proactivity are more urgent than ever, Herron adds.

“As of January 2021, global schedule integrity is as low as 34%,” he says. “So, essentially, just over a third of every vessel on the water is making it to its destination on its intended arrival. Delays need to be incorporated into lead times; whether you are importing or exporting, buying or selling, you need to understand things are going to go wrong.

Even the ones that are running on time can be held up berthing at ports.”

Many factors are conspiring to create a perfect storm, Herron explains. “The Maritime Union of Australia has been in EBA negotiations with every terminal in Australia. It’s unprecedented. There’s the strong winds that come with La Niña, there’s pandemic-related issues, vessel congestion, container turnaround times.”

Herron says that in the future, shipping lines will have to create a realistic buffer.

“Instead of a vessel running full speed to make its arrival window, its transit time will be bumped out far enough that if they need to catch up, they can,” he says. “That’s where they get better integrity.”

A priority on innovation Because marine cargo insurance is a small part of very large companies’ spend, the desire to invest in technology and innovative ways to communicate hasn’t been there, Morrison says. But that’s changing. One big positive he sees is the investment in automation from the logistics industry.

38

BALANCING AUTOMATION WITH THE HUMAN ELEMENT On paper, automated cargo handling is “straight up and down where it needs to be,” says Kurt Herron. “Wherever you can remove a human element from a dangerous vocation, it’s only going to lead to increased safety.”

As an example, he points to the Victoria International Container Terminal (VICT), which, along with the Patrick Terminal in Brisbane, now operates automated container carriers alongside manual cranes. VICT uses loadsensing spreader tech that can pick up discrepancies in weight distribution inside the container, which helps to guard against unevenly loaded containers – a major cause of trucks overturning.

“I really do see it as being the future,” Herron says. “Are the operators investing in this technology? Absolutely. Do they see it as too expensive? In fact, I believe it’s the opposite.

They can see efficiencies both in cost and safety. The moral dilemma of this is the human facet – replacing a human workforce with an automated one. The marine operators are investing in this, but they are seeing pushback from trade unions around the world.

Predominantly in Australia, they are very dedicated to job security, which is completely fair. I think this is why innovation is so slow. We have to look at multiple chapters of the automation story, and ongoing job security is one of those chapters.”

“A proactive, holistic view of insurance makes for better engagement, so we get better buy-in from our customer. We don’t want to just be another yearly bill” Kurt Herron, NTI “Now we have the investment in tech to be able to monitor containers – the ability to see where containers are at any one time, for example,” he says. “And we are only just scratching the surface. We’re looking at how we can integrate this information to add value to the customer.”

Herron says he would love to see more innovation across temperature control monitoring in containers, which would be helpful in terms of both reporting faults and minimising perishable cargo waste. He’s also excited by the significant sums venture capitalists, especially in the US, are investing in tech startups for logistics and freight.

“Then there’s the Digital Container Shipping Association looking to standardise digital documentation and technology so

everyone is running off the same equipment to truly globalise everything,” he adds.

The Australian economy’s ongoing recovery from COVID-19 is also providing major opportunities in the marine space, Morrison says. The Australian government is driving economic recovery with asset writeoffs and tax offsets as an incentive for companies to invest in infrastructure. This could bring up the need for brokers to revisit their clients’ policies, he warns.

“If someone has normal spending of a few hundred thousand dollars but they want to buy a multi-million-dollar machine, make sure your policy adjusts to cover that,” Morrison says. “But there’s opportunity there, and we are in a great spot to support customers through it.”

www.insurancebusinessonline.com.au

36-39_Marine-SUBBED.indd 38

19/03/2021 9:34:11 am

Your local marine experts.

Australia’s leading marine insurance specialist.

With the largest team of experts in marine insurance claims, underwriting and sales in Australia, we’re responsive whenever you need us. The marine industries never stop, and neither do we.

To get to know your local experts, visit

marineprotect.com

Insurance products are provided by National Transport Insurance, a joint venture of the insurers Insurance Australia Limited trading as CGU Insurance ABN 11 000 016 722 AFSL 227681 and AAI Limited trading as Vero Insurance ABN 48 005 297 807 AFSL 230859 each holding a 50% share.

National Transport Insurance is administered on behalf of the insurers by its manager NTI Limited ABN 84 000 746 109 AFSL 237246.

36-39_Marine-SUBBED.indd 39

19/03/2021 9:34:18 am

FEATURES

SECTOR FOCUS: TRANSPORT

The wheels of innovation Mervyn Rea and Craig Sandy of Zurich Insurance explain how the transport sector can harness technology to improve safety, boost profits, offset supply chain disruptions – and even make for a cleaner, greener business

FAST-FORWARD a few years – three, five, maybe 10. You’re a truck driver, but it would be more accurate to call you a software engineer. Because you’re not actually driving; you’re in the cab to intervene if something goes wrong or to take over when the vehicle’s sensors are unable to handle less-than-ideal conditions like roadworks or a residential street on rubbish collection day.

While some might think this is the automated vehicle of the future, it’s already here and going through trials. This technology is just one way that innovation will revolutionise the transport sector. And it’s something Mervyn Rea, Head of Zurich Resilience Solutions, is immensely excited about.

“Zurich Resilience Solutions is a newly created unit that contains our Risk Engineering function and is focused on servicing customers and our underwriters with risk management support,” Rea says.

“We need to embrace technology – we know driverless trucks, for example, will happen, and if we can influence and control the technology, I’m happy to be an objective contributor to that.”

Rea sees constantly pushing the boundaries of innovation as key to improving driver safety, lowering the sector’s carbon footprint, boosting operators’ profit margins, professionalising the role of a truck driver (thereby tackling a critical skills shortage) and getting around the raft of problems associated with supply chain disruption.

Obstacles and opportunities The shortage of drivers is an ongoing concern for the transport sector, exacerbated by the fact that many insurers won’t cover drivers under the age of 21. But a positive byproduct of technology aimed at making the job safer is an upskilled role that’s more appealing to a new generation, Rea says.

“Where younger drivers are proficiently trained and licensed, you can, to a degree, offset that lack of experience thanks to things

40

www.insurancebusinessonline.com.au

40-43_Sector Focus_Motor-SUBBED.indd 40

19/03/2021 9:34:45 am

Brought to you by

like telematics, where we are seeing greater uptake and continual improvements in the tech itself. Young drivers can be monitored, which will allow for ongoing improvement and coaching. In the past, where customers have used well-proven technology that’s been backed up by a training program, we have reduced the young driver excess as a financial relief and as an encouragement to employers to consider younger drivers.”

Craig Sandy, Zurich’s National Underwriting Manager for Motor, identifies additional challenges, such as keeping pace

of international and domestic border controls, which has resulted in congestion and delays, with major disruption to delivery timings and new challenges in meeting fatigue legislation. For the first time ever, Rea says, Australian transport is experiencing a “Brexit-like effect”.

“Disruption occurs, we modify, and it gets disrupted again,” he says. “There’s this continual change culture. We are getting more adept at rapid and repeated problem-solving.”

Add in an increasingly complex supply chain, and the plot thickens. But smarter

“Every driver wants to get home safe at the end of their shift. So, if we can prevent them from even a moment of distraction and fatigue that could lead to a crash, that’s great” Mervyn Rea, Zurich Insurance with legislative changes (like the Chain of Responsibility laws that came into effect in 2018), incorporating and maintaining a safety and sustainability culture, and managing and improving fuel cost efficiencies. But again, technology is a sound ally in combating these issues.

“Telematics, advanced driver assistance systems and semi-autonomous technology will all help,” Sandy says. “Telematics enables customers to closely monitor behaviour around harsh braking, harsh cornering, speeding and the like. The data can be used to better educate drivers, which will improve safety, reduce wear and tear, save on fuel, and reduce the time vehicles are off the road. These factors will ultimately improve productivity and save the customer time and money.”

Another challenge is the extra complexity

tech can also help foresee – and therefore mitigate – some of the complexities.

“Supply chain risk management tech can source data from a number of independent sources, so we can see when an event might occur like a dockyard strike or a major storm,” Rea says. “We have partnered with Risk Methods, who have a software solution that helps bypass disruptors to the supply chain.”

With disruption becoming the norm – and drivers potentially forced to take unfamiliar routes or spend hours on congested roads – technology plays an increasingly pivotal role in taking pressure off drivers and keeping them safe.

“You can use cameras as post-incident ways of identifying if the driver has been fatigued or distracted,” Rea says. “But you also have Seeing Machines technology to constantly scan the face and eyes that can

TECH SUPPORT FOR BROKERS Zurich equips brokers with numerous tech tools, such as the Zurich Risk Advisor app, which provides several ‘risk snapshots’ – a range of risk self-assessments and risk improvement ideas.

“We also have Virtual Risk Manager [VRM], which is a holistic, integrated driver risk management program comprising a number of components designed to work together to measurably reduce collisions and incidents by unsafe driving,” Craig Sandy says.

Mervyn Rea adds: “We can even provide a smartphone app, Mentor, which monitors driver behaviours and habits and offers in-app coaching.”

On the claims reporting side, Zurich’s customers and brokers have direct access to the Z Track platform, which makes claims enquiries and reporting easy. Customers can enquire 24/7 about how a particular claim is progressing. They can also conduct an analysis of their claims from the many different reports generated, which ultimately helps identify trends and problem areas.

detect with pinpoint accuracy the onset of fatigue. That will generate an alert to keep the driver focused. Every driver wants to get home safe at the end of their shift. So, if we can prevent them from even a moment of distraction and fatigue that could lead to a crash, that’s great.”

Such monitoring technology has had positive uptake. A decrease in fatiguerelated accidents not only gets drivers home safe to their families, but also reduces large loss incidents, thereby keeping vehicles on the road.

“This has meant improved productivity and profitability for many operators,” Sandy says. “Ultimately, improved incident ratios

www.insurancebusinessonline.com.au

40-43_Sector Focus_Motor-SUBBED.indd 41

41

19/03/2021 9:34:49 am

FEATURES

SECTOR FOCUS: TRANSPORT

will give insurers confidence to continue to offer viable insurance solutions, and they will lead to a reduced insurance spend for operators.”

Cost versus benefits A lower insurance spend and increased productivity mean operators can reinvest in technology – something Zurich’s risk engineering team can help customers navigate.

Sandy and Rea say operators can see cost and time as obstacles to implementing technology – but the Zurich team is there to assist in getting the best outcome.

“We can guide them and work with them, saving time,” Sandy says. “If customers are receptive to deploying driver-assist technology, this will be shown within our risk engineering assessment grading, which will assist with exposure pricing.”

When it comes to telematics, for instance, it’s not about identifying the best product – it’s more a case of ‘here is the absolute minimum outcome you want to get from this service’, Rea says.

A LOWER CARBON FOOTPRINT Improving driver safety organically leads to lower carbon emissions, according to Mervyn Rea. “As we harness tech to improve drivers’ overall technique and behaviour, you will get a safer driver – and that means a cheaper driver,” he says, not least because of the savings on fuel, the transport industry’s single biggest cost.

“A lot of companies think it’s a necessary evil, and you can’t control what it costs you. But you can,” Rea says. “By modifying driver behaviour, you can improve fuel efficiency and reduce spend by 10%, easily. Some companies do much better than that. If you are using less fuel, you are emitting less carbon, so your carbon footprint is decreasing by the same percentage.”

In addition, crash avoidance means avoiding the carbon emissions attributed to the energy used to repair the truck and manufacture and transport parts.

And the icing on the cake? Being carbon-footprint-conscious is a big tick when it comes to brand integrity, Rea points out. “Operators can use it to show corporate and social responsibility, and in doing so, they not only help the planet, it assists in the tendering of contracts.”

sometimes $3 worth of uninsured losses: downtime, the excess on your policy, absenteeism from work, wages, vehicle finance.

If you’ve leased the trucks, you don’t get a leasing holiday while the trucks are off the road, and truck repairs are taking longer because of COVID-19-related disruptions.

If you can avoid a crash, you are avoiding

“[Autonomous vehicles are] certainly on the agenda. The world is rapidly evolving and heading straight for this technology” Craig Sandy, Zurich Insurance “We are helping our customers get the biggest return on their risk management investment. For example, what will be the most efficient, most rewarding solution to reduce the frequency and severity of crashes?

A better solution means a more sustainable, correctly priced risk premium, and there are also fuel savings and a reduction in uninsured costs.

“For every dollar of an insurance claim we pay, at a conservative estimate, there is

42

H Y

Brought to you by

all that additional, uninsured financial cost. That educational component is something we’ve been working hard at with our customers. We’ve even now got a free online ‘total cost of crash’ calculator.”

Rea leads a team of risk engineers who can assess the operational risk of a fleet. “We can show a customer what the risk profile is now and what the risk would be if they implemented a series of identified improvement actions,” he says. “Our underwriters are

C in an o w

zu

able to reflect this in the premium if the risk profile score is good or excellent. All we are doing is recognising existing good practice.”

Back to the future All of this technology is available right now – but what about those driverless trucks?

“Zurich, globally and locally, has been involved with autonomous vehicle trials, so it is certainly on the agenda,” Sandy says.

“The world is rapidly evolving and heading straight for this technology.”

There are still many concerns to tackle, including cybersecurity, software and maintenance, road conditions, government/legislation, cultural shifts, and insurance/liability.

However, Sandy says Zurich Australia sees participation in such trials as critical.

“Understanding the risks and exposures well before it becomes common in society will secure our position as a market leader in the motor fleet space,” he says.

Rea acknowledges it will take time to iron out the kinks and master the technology. But whether it’s autonomous vehicles, telematics or anything else, innovation is here to stay – which can only be a good thing for the transport sector.

www.insurancebusinessonline.com.au

40-43_Sector Focus_Motor-SUBBED.indd 42

M a

19/03/2021 9:34:55 am

Z

Thi you con (as gen AB No

Hello Yellow Mobile plant and equipment are welcome at Zurich.

Customers can simplify their insurance by including plant and equipment along with all other vehicles under the one world-class, motor policy.

zurich.com.au/uw

Zurich Insurance This information is general advice only and does not take into account your objectives, financial situations or needs. You should obtain and consider the relevant Product Disclosure Statement and Policy Wording (as applicable) from zurich.com.au before making a decision. The issuer of general insurance products is Zurich Australian Insurance Limited (ZAIL), ABN 13 000 296 640, AFS Licence Number 232507 of 118 Mount Street, North Sydney NSW 2060.24171 V1 103/21 TFMC-016590-2021

40-43_Sector Focus_Motor-SUBBED.indd 43

19/03/2021 9:35:00 am

FEATURES

RELATIONSHIP-BUILDING

Cultivating strong relationships in the digital age As online meetings have become the norm, one of the biggest challenges has been how to forge and maintain relationships. Mark Carter outlines four ways to do this with technology

THE SOCIAL DILEMMA, currently on Netflix, is the latest in a string of researched documentaries or studies adding credence to going ‘back to basics’ when it comes to human connection in this digital age.

So many industry leaders, co-founders, executives and ethical designers are adding to the numbers voicing concerns over addictions to technology. Chamath Palihapitiya, a former Facebook executive, notably expressed personal concern about the platform helping to create “tools that are starting to erode the social fabric of how society works”. It’s a telling sign that so many innovators or digital execs minimise their own offspring’s access to tools they have helped create.

The digital age is here to stay as we continue racing into the future. It’s the manner in which we choose to use the technology in our hands that helps maintain strong relationships in a hyper-connected, tech-addicted digital age. The following are four ways to do this.

44

www.insurancebusinessonline.com.au

44-45_BIZSTRAT_Digital-SUBBED.indd 44

19/03/2021 9:35:39 am

1

Take off the masks

The first lesson can be learned powerfully from the words of a teenage girl during a seminar I delivered on human behaviour and human connection.

“Oh, this explains so much! I get it. I was pretending to be really [emotional] to land the hot guy. Which I did! But then after a while it didn’t work because, you know, we’re just not that alike.”

Authenticity is a powerful way of inviting or adding value into our lives and the lives of

biggest dirty little secret in business”.

A lack of candour costs a business so much: trust, productivity, innovation, time, everything. The same is true for our personal relationships. They suffer when transparency is sabotaged or subterranean. If someone you truly value has upset you, tell them. Few people have developed the psychic ability to accurately or fully read minds!

The digital age seems to breed the antithesis of candour, with phenomena like ‘ghosting’ or ‘cancel culture’ taking off.

Authenticity is a powerful way of inviting or adding value into our lives and the lives of others. Pretending for the sake of connection often fuels more heartache or disconnection others. Pretending for the sake of connection often fuels more heartache or disconnection.

Authenticity allows for a healthy stickiness over neediness.

Our historical predecessors thousands of years ago might have been lucky to interact with 150 mainstay connections in a lifetime.

These days, people invest so much time in filtering highlights for highlights, seeking to gain a far greater number from a single social post in the duration of a coffee break.

Yet the price is significant. A short-term dopamine fix of surface, shallow or even fake loveliness from a digital collection of every Tom, Dick or Harriet bundled into one happy bucket labelled ‘friends’ often only serves to pull us away from the gems in this world.

2

Embrace candour

Jack Welch, the late former CEO of GE, described a common trait seen in the digital age – regardless of whether applied personally or professionally – as “the

A conversation culture, rather than a cut-off one, is better for relationships and the social fabric of community.

3

Speak a common language

We live in a world of 196 recognised countries and more than 7,000 known languages. More than half of the world’s population speaks the top 10 of these. Yet there remain two common languages we all understand that transcend differences, divisions and geographical boundaries. What’s more, neither of these requires the utterance of words. (And no, they’re not the languages of SMS or emojis!

How often do you have to ask friends to help you translate these?)

Kindness and love are languages the deaf can hear, the blind can see and that can bring light to the darkest of spaces. In fact, Robert Waldinger, the current director of perhaps the world’s longest study of adult life and development, shares in his “What Makes a

Good Life” TED Talk that the secret to a happy life turns out, after all, to be feeling loved and supported.

4

Prioritise quality over quantity

The importance of human connection minus technology is rooted in scientific reasoning. British anthropologist and psychologist Robin Dunbar stumbled upon a magic number while studying the behaviours of primate groups. Applying the same modelling to our own primate group, the predictions about the size of social circles or the number of relationships that people can realistically maintain turns out to be surprisingly accurate: 150.

This number has been prevalent throughout history and is still typical of modern-day social circles, from the average size of the populations of English villages around the 16th century (160) to the number of guests typically invited to weddings today (148, from a study of 18,000 brides) or even the average number of Facebook friends (150 to 200).

Among all your connections, consider how many relationships are truly meaningful or present in your world. Perhaps take note of who your 150 are and invest more in them than in strangers.

Our humanity and the quality time we invest in relationships nourishes their longevity. Embrace and use technology as a great enabler and connector. Be less concerned about the rush for vanity metrics or popularity. And don’t be so busy rummaging in the digital rocks and stones that you miss the reallife diamonds.

Mark Carter is an international keynote speaker, trainer and coach. He has more than 20 years of experience as a global learning and development professional.

www.insurancebusinessonline.com.au

44-45_BIZSTRAT_Digital-SUBBED.indd 45

45

19/03/2021 9:35:43 am

FEATURES

LEADERSHIP

When to go for good enough In a culture focused on achievement, success and making things perfect, how can leaders know when striving for something better is a waste of time?

Lynne Cazaly explains how to let go of perfection and embrace ‘good enough’

HOW OFTEN while working on a task or project have you thought, “It’s not done yet”, “It’s not good enough” or “I couldn’t share that … it has to be better”? We can feel it’s not good enough yet and believe there’s still work to be done to make it better, to make it perfect. Shouldn’t you try to do things perfectly? It turns out, no, not at all.

Research by Argyro Avgoustaki and Hans Frankort, gathered from more than 50,000 people across 36 countries over a five-year period, showed that extra work effort was “associated with reduced wellbeing and inferior career-related outcomes”. Avgoustaki and Frankort’s research showed that the harder people worked, the more likely they were to report stress, lower satisfaction and inferior outcomes.

Working too hard burns us out and doesn’t result in the success – career or otherwise – that we might expect. It sounds crazy, but their research found that doing less at work can actually help us achieve more.

We can afford to spend less time on things thanks to two theories of activity. The law of

46

www.insurancebusinessonline.com.au

46-47_BizStrat_Good Enough-SUBBED.indd 46

19/03/2021 9:36:07 am

diminishing returns (that our return on effort reduces over time) and the 80/20 rule or the Pareto principle (that just 20% of our efforts yield 80% of the results) are two approaches that validate the practice of going for good enough rather than the waste of perfection.

Next time you’re working on a proposal or report or developing a new system or process, stay alert to your desire to pursue perfection. Good leadership starts with us modelling behaviours for others; here, it’s about knowing when good enough is good enough.

The rise of perfectionism The problem is perfectionism is on the increase. Research by psychologists Thomas Curran and Andrew Hill revealed three types of perfectionism: Self-oriented (“I expect high standards of myself ”) Societal (“I believe society expects high standards of me”) Other-oriented (“I expect high standards of you”) All three are on the rise, but societal perfectionism has increased the most, by 33% over the past couple of decades. Future projections don’t look good, either. The hitch with perfection is that it simply doesn’t exist, and pursuing it is a foolish and wasteful activity. If we find ourselves – or a team – staying back, taking work home or working on weekends in a devoted effort to make something better, it’s likely there’s a wasteful pursuit of perfection underway.

The more contemporary preference is to go for ‘good enough’ or ‘ish’, which means near enough. The practice is to work on a

smaller piece or packet of work – an increment – and work until it’s good enough to get feedback, good enough to test it out with customers or clients, or good enough to try again and improve via a new iteration.

It’s a process used successfully by lean startups, technology teams and software developers. Increments and iterations are the new perfect. They’re more effective in helping us make progress over perfection.

How to go for good enough There are four things you can do to set a course for good enough rather than the pointless pursuit of perfection.

than expecting perfection.

4

Assess whether ‘near enough’ is good enough

Check whether ‘ish’ might be feasible, doable or acceptable to the business more often. It’s a major productivity gain, and it’s more motivating for teams when they complete work.

If you spot perfectionism behaviours or hear people being highly critical of themselves or others, know that a standard isn’t clear enough and perfectionism could be at play. Step in, coach, guide or suggest that a specific standard might help everyone get on

Increments and iterations are the new perfect.

They’re more effective in helping us make progress over perfection

1

Stop expecting or requiring perfection

2

Make the standard clearer

Accept first drafts, rough cuts and mock-ups. The design industry thrives on them to gain early feedback and ensure the efficiency of work going forward.

Great leaders clarify the end goal or outcome beyond a generic call for ‘high quality’ or ‘really good’. Explain the standard in a measurable way; it will help people enormously.

3

Improve over time

Allow learning, iterations and insights to build on first attempts.

The best and brightest organisations know the power of improving over time rather

the same page, gain alignment and work to achieve the goal. There will be less stress and greater success.

Don’t let perfectionism get in the way of doing good work – for yourself, your team, and those you advocate for, partner with or support within the organisation. Getting work done using increments and iterations beats the stress, burnout and mental health effects of perfection-chasing every time.

Lynne Cazaly is a keynote speaker and advisor who helps businesses think and work in ways that are more productive, collaborative, creative and effective. She is the author of ish: The Problem with our Pursuit for Perfection and the Life-Changing Practice of Good Enough. Find out more at lynnecazaly.com.

www.insurancebusinessonline.com.au

46-47_BizStrat_Good Enough-SUBBED.indd 47

47

19/03/2021 9:36:11 am

PEOPLE

OTHER LIFE

TELL US ABOUT YOUR OTHER LIFE Email ibo@keymedia.com.au

Hansen has competed in the Mullu m to Bruns event multiple times

14

Years Hansen has been competing in Nordic walking events

6

Nordic walking marathons he has completed

2011

Year his team came in first at the City to Bay event in Adelaide

WALKING THE WALK For Austbrokers Coast to Coast head Dale Hansen, there’s no better way to start the day than with a pole walk FOR SOME, a nice cup of coffee is the best way to gather energy for the day ahead.

But for Dale Hansen, CEO at Austbrokers Coast to Coast, the perfect start to the morning is a good pole walk.

Originally introduced to Nordic walking by a good friend, Hansen has spent more

48

than a decade as an active and competitive Nordic walker, regularly participating in events like City to Bay, Mullum to Bruns and the Gold Coast Marathon.

“The solitude of the sport allows my mind to be clear and allows me to concentrate on business and personal matters that

typically I would not devote the appropriate amount of time to,” Hansen says. “I start the day with a clear mind and can strategise in my mind the way I need to handle things in my role as a CEO for that day. I find I am much more effective if I start the day with a walk.”

www.insurancebusinessonline.com.au

48-IBC_Other Life-SUBBED.indd 48

19/03/2021 9:36:57 am

Celebrating today’s winners.

And welcoming tomorrow’s.

We’re proud to announce that two CBN brokers have been awarded “Elite Broker of the Year” – DLB Insurance + Risk Solutions, and Global Risks. It’s a significant achievement, and one we’re thrilled to celebrate.

OUR WINNERS

LET US HELP SHAPE YOUR FUTURE

Speak to your local business partner VIC/TAS Jonathan Lam m 0428 680 371 QLD Michael Wennerbom m 0404 841 319 SA/NT/ACT Nicky Dunkin m 0419 411 152

JOIN A TEAM OF ELITE BROKERS

As part of Australia’s largest Authorised Broker network, your business will benefit from a leading insurance and compliance technology platform, as well as support across broking, strategy, marketing, finance and professional development.

48-IBC_Other Life-SUBBED.indd 49

NSW Chris Macpherson m 0420 990 720 WA Stephen Kidd m 0439 910 790 cbnet.com.au

19/03/2021 9:37:06 am

UNDERINSURANCE. NO MEAN FEAT FOR AMBITIOUS BROKERS. 75% of customers* haven’t updated their property sum insured. Let’s flip the script and help them review their cover. When you work with CGU, you get access to data and insights like these that help you better serve your customers.

We’ve been backing ambitious brokers for 165 years.

Contact your Account Partner for your customer insights.

Insight based on FY20 CGU Business Package Property Cover portfolio data.

CGU1023_Insight Ads_Insurance Business.indd 1 00_Spine_OFC_OBC-SUBBED.indd 3

30/11/20 1:36 pm 19/03/2021 9:22:20 am