Insurance Business 10.05

insurancebusinessonline.com.au Issue 10.05

THE LATEST ON CYBER What brokers need to know to deal with emerging threats

RULES OF THE ROAD

How to advise transport clients on new legislation and technology

GENDER EQUALITY

Key lessons from this year’s Women in Insurance Summit

THE DATA REVOLUTION Marsh’s John Donnelly on how data is transforming the world of underwriting

TOP BROKERAGES 2021

Who made the cut in IB’s annual ranking of Australia’s best brokerages?

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Insurance Business Australia Awards finalists, p56

ISSUE 10.05

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

CONTENTS

@InsuranceBizAU facebook.com/InsuranceBusinessAU

UPFRONT 02 Editorial

The industry’s next big challenge: how to insure non-fungible tokens

28

04 Statistics

Key data that should be on your radar

06 News analysis

FEATURES

SHAPING THE FUTURE

19

IB’s annual Women in Insurance Summit offered a glimpse into a more female-forward insurance industry

40

Which brokerages managed to push through the difficulties of the pandemic and a hard market to earn a place among Australia’s best?

PEOPLE

ART VERSUS SCIENCE

Two Austbrokers brokerages join forces

10 Insurer update

Berkley Insurance Australia’s CEO on mastering the world of remote work Solution Underwriting makes its quoting process more efficient

18 Opinion

How insurers can work with brokers to ease the pains of a hard market

FEATURES FEATURES

ARE YOU DELIVERING THE GOODS?

Recent legislation could put your transport clients in a bind if they’re still relying on liability-based cover

51 5-Star Awards: Cyber insurance

Brokers name Australia’s best cyber insurers

PEOPLE 48 Building a better brokerage

At CPR Insurance Services, a hands-on approach to clients has paid off

Marsh’s John Donnelly discusses why data must always go handin-hand with passion in insurance

72 Other life

Diving in with insurance exec and openwater swimmer Theresa O’Halloran

FEATURES

14

08 Intelligence

12 Underwriting agencies update

SPECIAL REPORT

TOP BROKERAGES

The recent rise of digital art is putting pressure on insurers to innovate

44

THE BENEFITS OF DRIVER SAFETY TECH

Brokers and insurers alike have a crucial role to play in encouraging the uptake of fleet technology

SPECIAL SECTION

EXECUTIVE INSIGHTS SERIES

CYBER 2021 INSURANCEBUSINESSONLINE.COM.AU

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UPFRONT

EDITORIAL

A problem worth pondering

B

ack in March, auction house Christie’s made headlines when it sold a piece of digital artwork via non-fungible token (NFT) for an astounding US$69m. The groundbreaking piece, called “Everydays: The First 5,000 Days,” is a collage of digital pictures taken every single day for 13 and a half years by a digital artist known as Beeple.

NFTs are a bit like one-of-a-kind trading cards on the blockchain. Every NFT is a unique token, and in the case of digital art, they’re designed to assign exclusive ownership of the work. What’s tricky to understand is how unique ownership of an NFT artwork could be worth $69m. And given the distinct lack of insurance options available for NFT art, it seems underwriters are also struggling to wrap their heads around the value of these crypto assets and the best ways to manage NFT risks.

Is the industry keeping pace with the evolution of blockchain technology and cryptocurrencies, or has it already fallen behind?

Technically, the owner of an NFT is the only person with the private encryption key for the asset, and as the blockchain is well known for its strong security, really the only foreseeable threat would be a very sophisticated cyber incident in which a criminal somehow gains access to the encryption key and monetises the NFT for their own gain. While there are potential coverage options for NFTs on cyber policies today, there are many questions that need answering, including how and where collectors, galleries, and auction houses are placing custody of their NFT art, as well as multiple grey areas for third-party liability.

The NFT art trend raises interesting questions for the insurance industry.

What other insurable assets will suddenly find their way onto the blockchain? Is the industry keeping pace with the evolution of blockchain technology and cryptocurrencies, or has it already fallen behind? What other intangible assets will need to be covered next? And who is going to take on insuring these assets?

Those questions, although challenging, provide an exciting opportunity for the insurance industry to stay relevant, exercise innovation and thought leadership, and shore up what’s looking like the next big thing in the digital asset landscape.

The sale of a piece of blockchain-based artwork for US$69m has placed NFTs firmly on the public’s radar. Now the race is on for insurers to deliver solutions that will respond to the digital asset wave.

The team at Insurance Business

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EDITORIAL Managing Editor Paul Lucas Senior Editor Bethan Moorcraft Journalists Danny Wood, Maria Hoyle, Mia Wallace, Surina Nath, Ryan Smith, Ksenia Stepanova News Writers Lyle Adriano, Terry Gangcuangco, Roxanne Libatique, Gabriel Olano Copy Editor Clare Alexander

CONTRIBUTORS Frank Scamarcia, Aytekin Tank

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

SALES & MARKETING General Manager Peter Smith Commercial Development Manager Sophie Knight

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 Australia (Insurance) Pty Ltd tel: +61 2 8437 4700 fax: +61 2 9439 4599 www.keymedia.com Sydney • Auckland • Manila • Singapore Denver • London • Toronto

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@keymedia.com T +1 416 644 874O Insurance Business NZ alex.rumble@keymedia.com T +61 2 8437 47O8 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.

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B y

out s the

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Q4 20

UPFRONT

STATISTICS SHIPPING LOSSES SINK TO HISTORIC LOWS

GLOBAL PROPERTY RATE MOVEMENTS

Pro rata commission Risk (loss-free) Risk (loss-hit) Catastrophe (loss-free) Catastrophe (loss-hit)

Caribbean 30% 20% 10%

REINSURANCE MARKET SHIFTS TO EQUILIBRIUM

49

By the mid-year renewal periods, the global reinsurance market was experiencing a boost from improved results in the first quarter of 2021, including premium growth courtesy of continued rate increases.

According to Willis Re, reinsurers sought to maintain pricing momentum renewals earlier in the year, although signs pointed to capacity supply outweighing demand.

While property market capacity was sufficient across major global markets, certain casualty lines – most notably cyber – have seen reduced capacity and increased demand, driving up pricing.

Overall, however, Willis Re observed that the global reinsurance market is trending toward equilibrium thanks to improving terms and conditions.

Large ships lost worldwide in 2020

50%

Decrease in total shipping losses over the past decade

2,703

Number of shipping incidents worldwide in 2020

0% -10%

United States 30% 20% 10% 0% -10%

Latin America 30% 20% 10% 0% -10%

ABOVE-AVERAGE PREMIUM GROWTH PROJECTED POST-PANDEMIC The insurance industry can expect a swift recovery in the aftermath of the COVID-19 pandemic, according to the latest forecast from Swiss Re. In 2021 and 2022, written premiums are expected to exceed the 3.5% global average growth rate for the previous decade. Swiss Re noted that rapid economic recovery and hardening non-life markets should fuel demand for cover.

GROWTH IN PREMIUMS WRITTEN

4%

Year-on-year decrease in the number of shipping incidents Source: AGCS Safety & Shipping Review 2021

4

8% 7% 6% 5% 4% 3% 2% 1% 0% -1% -2%

Advanced markets

2020

Emerging markets

2021*

World

2022*

*Forecast

Source: Sigma 3/2021, Swiss Re

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Q4 2020

Q1 2021

80%

Middle East 30%

60%

20%

40%

10%

20%

0%

0%

-10%

-20%

China

WHO BEARS RESPONSIBILITY FOR CYBERATTACKS? Only around a quarter of C-suite executives believe that all employees are responsible for preventing cyberattacks, according to a study

by Munich Re. Nearly half believe the burden of cybersecurity lies with the IT department – despite the fact that most cybercriminals gain entry by targeting an individual employee.

WHO IS RESPONSIBLE FOR AVOIDING CYBERATTACKS?

United Kingdom

50%

30% 40%

20% 10% 0%

30%

-10%

Australia 30%

20%

20% 10%

10%

0% -10%

0%

Source: Willis Re 1st View, July 2021

IT department

All employees

Senior management

Source: Global Cyber Risk and Insurance Survey, Munich Re

COMMERCIAL INSURANCE PRICES UP YET MODERATING

P&C INSURERS STRUGGLING TO INCORPORATE AUTOMATION

Global commercial insurance prices rose again in the second quarter of 2021, shooting up by an average of 15% and marking the 15th consecutive quarter of increases. However, Marsh reports that the increases are gradually slowing, driven by moderating prices in key lines like property and D&O.

Insurers are facing pressure to integrate automation into their operations.

However, in Willis Towers Watson’s recent survey of global insurers’ current automation capabilities, the P&C industry scored just 21.7% overall, suggesting difficulty or reluctance in adopting new technologies.

GLOBAL INSURANCE COMPOSITE PRICING CHANGE

CURRENT AUTOMATION SCORE FOR AREAS OF THE P&C RESERVING PROCESS Data 31.9%

25%

Results production 22.1%

20%

Loss calculations 22.0%

15%

Assumptions 14.6%

10%

Audit trail 13.8%

5% 0

Q1 2020

Q2 2020

Q3 2020

Q4 2020

Q1 2021

Q2 2021

Source: Global Insurance Market Index – 2021 Q2, Marsh

Senior management engagement 10.8% Source: 2020/2021 Global Automation in Insurance Report, Willis Towers Watson

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UPFRONT

NEWS ANALYSIS

The meteoric rise of NFTs In the aftermath of the US$69m sale of a digital artwork via non-fungible token, NFTs are poised to continue shaking up the fine art space, presenting new challenges for insurers

THE HIGH-PROFILE SALE of the digital artwork “Everydays: The First 5,000 Days” by the artist Beeple for US$69m in March revealed the staggering possibilities that lie within the rapidly growing non-fungible token (NFT) marketplace. NFTs are rapidly proving to be the hottest new trend in the crypto world – artists, celebrities and companies have all jumped on the bandwagon of this digital asset craze.

According to Will Turvey, divisional director of Gallagher’s fine art, jewellery and specie team, while NFTs are still the fresh-

So what’s behind crypto art’s spike in popularity? Due to the rise of screen time over the past year, Reid says, people have become more comfortable with performing transactions online. This behavioural change, coupled with the splash of NFTs in the art market, has resulted in increased interest in this space. And with the growth in the value of cryptocurrencies, items that hold digital scarcity are in demand – and that’s exactly what an NFT offers.

“The global pandemic coincided with a 600% year-over-year price increase in the

“The core NFT digital art community continues to grow at a rapid pace. The market shows a lot of speculative trading” Adrienne Reid, Aon Huntington T. Block Insurance Agency faced new entrant to the collectibles market, they are showing signs of rapid growth – during the first quarter of 2021, NFT sales exceeded $2bn.

“As the traditional art market works to find ways to enter this space, the core NFT digital art community continues to grow at a rapid pace,” says Adrienne Reid, vice president at Aon Huntington T. Block Insurance Agency.

“The market shows lots of speculative trading occurring now, along with high volumes being sold on online gaming and sports platforms.”

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crypto asset, Ethereum, which serves as the most common instrument for buying NFTs,” says Dennis Lawrence, an intelligence analyst at Aon Cyber Solutions. “As a result, newly wealthy crypto asset owners have discovered NFT artwork as a method to both enjoy their recent windfalls while hoping their artwork appreciates in value over time as a speculative investment.”

While NFTs have only recently exploded into public consciousness, they’ve been around the digital art world for several years,

which means insurers and brokers in the fine art space have been mulling how the development of the NFT market will impact insurance services for some time now. Turvey points out that insuring NFTs is very different than insuring physical artwork.

“Typical fine art insurance covers physical loss or damage to the artwork,” he explains.

“An NFT doesn’t give the owner exclusive access to the artwork associated with it, given the artwork has been digitised. We can all view digital art in the same way the owner of the NFT can – but we don’t all have a time and date stamp to prove that we own the authentic original. As such, what we are insuring for NFTs in the fine art insurance space is not the artwork itself, but the private key that proves ownership, which is stored offline and usually with a third-party custodian that specialises in the storage of these keys.”

Because the insurance market for NFTs and cryptocurrency is currently in its infancy, Turvey says, there isn’t as much capacity as there is for typical fine art. This means available limits will not be vast, regardless of the value of the NFT. However, he says, that should change as insurers look for new

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WHERE NFTs STAND NOW

$2.5bn Approximate amount of NFT sales recorded globally in the first half of 2021

10,000–20,000 Average number of weekly NFT buyers since March 2021

$69.3m Price of the most expensive NFT ever sold growth opportunities.

Honor Palmer-Tomkinson of Howden’s fine art and specie division notes that there’s a huge opportunity for underwriters and brokers to understand the crypto world and the new risks this evolving industry creates.

artwork. As an asset with a high value, an NFT attaching to a tweet or meme could potentially be insured in exactly the same way. This is a constantly evolving space, and we are enjoying the challenge of evolving along with it.”

“This is a constantly evolving space, and we are enjoying the challenge of evolving along with it” Honor Palmer-Tomkinson, Howden With a wealth of experience in insuring items of high value, the fine art and specie insurance market is best positioned to do this, Palmer-Tomkinson says.

“Howden has been working on a solution that tailors the already solidified cryptocurrency insurance products to cover NFTs,” she says. “The product that we can currently offer our clients is limited to NFTs being held in cold storage [offline] by third-party custodians and can be insured on an agreed value basis. NFTs don’t have to attach to an

Reid points out that the risks associated with NFTs primary revolve around a need for technology-related solutions and due diligence. Important key points for collectors include settling up multi-key verification for wallet recovery keys, having secure storage for digital asset backups, pinning the underlying digital asset to retain control over the NFT image’s accessibility, and properly reviewing the NFT licensing agreement to understand allowed reproduction abilities.

Overall, she says, this space is in its very early

177,048 Number of active NFT wallets worldwide in the second quarter of 2021 (a new record high) Sources: DappRadar, NonFungible, Bloomberg; all figures in US$

stages, and the surrounding legal, regulatory, tax and insurance implications will take some time to work out.

Lawrence adds that other areas of concern in the NFT marketplace are counterfeit and custody risks.

“For example, hackers have recently conducted tests to expose how a bad actor can create highly sophisticated counterfeit NFTs that appear legitimate on the blockchain,” he says. “As a result, conducting due diligence on NFT artwork will help mitigate some of this risk. With respect to custody, solutions that address decentralised storage, backups and mitigation of risks associated with a user’s private key will help prevent loss or theft.”

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UPFRONT

INTELLIGENCE CORPORATE ACQUIRER

TARGET

PRODUCTS COMMENTS

Austbrokers Comsure

WRI Insurance Brokers

Robert Moir, who founded WRI four decades ago, will become chief broking officer of the wider business

Aviso Group

Grange Insurance Solutions; Wymark Insurance Brokers

With the acquisition of the two brokerages, Aviso Group parent Envest now has a total of 13 brokerages in its portfolio

Gallagher

Willis Re

Gallagher’s purchase of the Willis Towers Watson unit is forging ahead, despite the collapse of the WTW-Aon merger

Moody’s

RMS

Ratings agency Moody’s has forged a deal to buy the international risk modelling firm from Daily Mail and General Trust for around US$2bn

Steadfast Group

AFA Insurance Brokers

AFA Insurance Brokers is Steadfast’s first equity business in the Northern Territory

TAL Dai-ichi Life Australia

Westpac

Westpac’s sale of its life insurance business to TAL includes a 20-year strategic partnership for the provision of life insurance to Westpac’s Australian customers

Liberty moves into untapped M&A market

The Liberty Global Transaction Solutions (GTS) team in Australia has found a way to cover traditionally uninsurable public-to-private M&A transactions by tailoring its warranty and indemnity product to have targeted exclusions, effectively creating a target business risk similar to that in a private deal. According to Liberty GTS’ Geoffrey Lee, there’s no cap in terms of enterprise value, but the typical size for insured transactions is between $50m and $5bn. Liberty GTS hopes to expand the offering into other jurisdictions and standardise it to suit other transactions, such as those involving SMEs.

Merger creates fifth largest Austbrokers brokerage Brisbane firm Austbrokers Comsure has merged with Sydney-based WRI Insurance Brokers to become the fifth largest brokerage in the Austbrokers network. Austbrokers Comsure – which took on its current identity when Queensland companies Bestmark, Citycover and Comsure combined in July 2020 – has been part of the Austbrokers network since 1995, while WRI has been a member since 2013. The combined brokerage will have more than 70 staff, a client base in excess of 20,000 and annual gross written premium of $120m.

“We share many synergies with WRI in our commitment to customer service, product expertise and ability to provide risk management advice, particularly for hard-to-place risks,” said Austbrokers Comsure managing director Ian Garbutt. “Together we can capitalise on the advantages a larger entity brings to client service, insurer relationships, claims management, marketing and meeting compliance requirements.”

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Sompo Global Risk Solutions unveils pandemic cover

Sompo Global Risk Solutions has launched a new insurance solution for epidemic and pandemic risk. Triggered by a civil authority restriction resulting from an international public health emergency declared by the World Health Organisation, the Sompo GRS Epidemic and Pandemic Protection Program provides coverage for loss of income, extra expenses, debt servicing, supply chain disruption and other fixed costs. The program will initially offer limited capacity to Sompo clients in the real estate, hospitality, financial services, professional services, technology and life sciences industries.

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PEOPLE Agile launches inland transit insurance

Agile Underwriting Services has rolled out embedded insurance for inland transit – the latest addition to the increasing number of offerings available on the Powered by Agile online trading platform. Agile’s inland transit offering covers physical loss and damage to more than 150 harmonised system codes of goods in transit, up to a value of $500,000. According to Agile cofounder Ben Webster, the underwriting agency will leverage its expertise in online distribution to help load boards, freight forwarders and logistics platforms embed the insurance in their daily operations.

New tool promises an ‘insurance health check’

Hunter Broking Group has launched an online tool designed to help SMEs and mid-market companies gauge confidence in their business insurance coverage, regardless of whether they are keen to switch providers or advisors. The new website, Insurancehealthcheck.com.au, features industry-specific surveys to allow businesses to see if they are being adequately covered or serviced by their current insurance partners. Hunter Broking Group said the goal of Insurance Health Check is not to poach clients, but to help firms assess where they stand and address any gaps or areas of improvement.

Steadfast partners with real estate tech firm

Insurance broker network and underwriting group Steadfast has teamed up with fintech innovator ListSure to deliver finance and insurance solutions to the real estate sector. Through the partnership, Steadfast and ListSure will provide real estate agencies with access to insurance products and bespoke risk mitigation tools. ListSure co-founder and managing director Brad Melman said the joint venture will allow ListSure to roll out its unique offering, Pay on Success, which provides finance and insurance for the marketing expenses needed to prepare residential properties for sale.

NAME

LEAVING

JOINING

NEW POSITION

Christopher McHugh

Suncorp

Allianz Partners Australia

CEO

Justin Delaney

N/A

Zurich

CEO, Australia and New Zealand

Katrina Barry

N/A

Hollard Insurance

Interim chair

Malcolm Roberts

N/A

FM Global

President and incoming CEO

Natasha Gale

N/A

ARAG Services Australia

CEO

Peter Yates

N/A

AIA Australia

Chair

Tim Plant

Zurich

IAG

Chief insurance and strategy officer

Tom Pockett

N/A

IAG

Chair

FM Global appoints new CEO

Malcolm Roberts, a former chemical engineer who joined FM Global in London in 1995, will become the commercial property insurer’s new chief executive at the start of 2022.

Before he takes the reins from current CEO Thomas Lawson, Roberts will serve as a board member and president of FM Global, responsible for overseeing the insurer’s strategic and operational direction. Post-retirement, Lawson will continue to serve as chairman of FM Global’s board.

“This is an exciting step in the future direction of the company,” Lawson said. “Malcolm has the right balance of leadership skills and vision, intrinsic understanding of our corporate culture, comprehensive insight into our clients’ complex needs, as well as extensive industry knowledge and experience.”

Zurich announces leadership shuffle

Justin Delaney, who joined Zurich Australia in December 2019 as life and investments (L&I) chief executive, has been appointed to the role of country CEO for Zurich’s L&I and general insurance (GI) businesses in Australia and New Zealand. Tim Plant, Zurich’s previous Australia and New Zealand GI chief, will move to IAG before the end of 2021 to take on the newly created role of chief insurance and strategy officer. Delaney will be assisted by Sean Walker, Zurich’s general insurance chief underwriting officer for Australia and New Zealand, on the GI side of the business.

“In Justin, we are fortunate to have a strong leader who has extensive experience in the local insurance industry and a solid track record in delivering customer-centred innovation,” said Asia-Pacific regional CEO Tulsi Naidu.

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UPFRONT

INSURER UPDATE NEWS BRIEFS IAG names new chair and three new board members

IAG has appointed a new chair and three new directors to its board. Tom Pockett, who currently chairs IAG’s Audit Committee and is a member of the Nomination, People and Remuneration, and Risk committees, is taking over as chair of the board from Elizabeth Bryan, who will be stepping down on 22 October. Pockett has been a member of the IAG board since 2015 and also serves on the boards of Stockland Group and Autosports Group.

IAG also appointed David Armstrong, George Sartorel and Scott Pickering as its newest board members.

QBE’s first-half results show signs of a turnaround

QBE Insurance Group’s financial results for the first half of 2021 brought good news for the insurer.

From a US$712m net loss after tax in H1 2020, the Sydney-headquartered global insurer bounced back to a statutory net profit after tax of US$441m for H1 2021. QBE attributed the result to a material turnaround in underwriting and investment returns.

Underwriting profit for H1 2021 stood at US$642m, compared to the US$524m underwriting loss QBE suffered in the first half of 2020. Net investment income was also up to the tune of US$58m – a sizeable leap from the US$90m loss in H1 2020.

Youi teams up with online property marketplace

Youi has entered into a partnership with online property marketplace Domain to underwrite Domain Insure policies and operate Domain Insure’s contact centre. The partnership builds

on Youi’s underwriting relationship with Blue Zebra; the home and landlord policies written by Youi will be transacted through Blue Zebra’s policy management system. “The team at Youi is very excited about this partnership, which will allow both Youi and Domain to work together to capitalise on new growth opportunities,” said Tony Antonucci, executive general manager of products and partnerships at Youi.

Tokio Marine unit hit by ransomware attack

In mid-August, the Singapore unit of global insurer Tokio Marine revealed it had been the victim of a ransomware attack. Tokio Marine stressed that no other units had been impacted and said it immediately isolated the network once the attack was discovered. The insurer said it had put information security safeguards in place and would make further efforts to protect customer data and confidential information.

“We sincerely apologise for any inconvenience and concern caused to our customers or related parties,” Tokio Marine said in a statement.

Suncorp donates $1m to disaster recovery effort

Suncorp Group has pledged $1m to the Foundation for Rural & Regional Renewal for a new program aimed at supporting disaster-hit communities. The new program, Rebuilding Futures, focuses on the medium- to long-term needs of communities impacted by severe natural disasters by providing support to local groups to address issues that are critical to recovery. The program’s first round of grants will be targeted toward NSW and Queensland communities that were impacted by flooding in March; local organisations can apply to receive up to $15,000 in funding.

Thriving in a remote setting Berkley Insurance Australia’s pre-pandemic preparations have helped it weather the latest round of lockdowns Berkley Insurance Australia (BIA) got it right when, weeks before it had to send everyone home in March 2020, it ran tests to ensure that staff could work as well remotely as they could if they were on-site. Now, even with the recent lockdowns, BIA has had no trouble connecting with brokers.

“Our main focus is, and always has been, having underwriters as close to the brokers as possible,” says chief executive Tony Wheatley, “and having a philosophy that if a broker calls the office, that someone will answer the phone or someone will ring them back to answer their questions, and if they get a submission in, that we turn it around as quickly as possible.”

According to Wheatley, all of BIA’s systems and thought processes are centred around making sure these things happen and trying to improve processes whenever they can.

Looking back on the first quarter of last year, Wheatley notes, “We did a test three or four weeks prior to when we actually had to close the office down and move everyone out. We made sure everyone validated that there were no issues so they could work from home in the same way that they work from the office. At the time, we had to buy some additional equipment. But the day that we decided to close the office, people went home and started work the next day

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and it was no different.”

A testament to the insurer’s success on this front is the feedback from its broking partners. Named Insurer of the Year in Insurance Business’ 2021 Brokers on Insurers report, BIA bagged gold medals in several categories, including broker communication, new business turnaround time and overall service level.

Q&A

Rob Kosova General manager, people risk QBE

“[Being remote] shouldn’t matter from a ‘servicing customers’ perspective” “I don’t think there’s much of an excuse for people not to be able to manage their businesses working from home anymore,” Wheatley says. In fact, in his view, the companies that are unable to do so have probably “let themselves down” a little bit.

That’s not to say, though, that Wheatley isn’t keen to have employees in the office.

“It shouldn’t matter from a ‘servicing customers’ perspective,” he says. “But from a teamwork perspective, it’s nice to be in the office around other people. From an innovation perspective, I think it’s good for people to be able to sit around face-to-face and bounce things around.”

Years in the industry 20 Fast fact Kosova, who also serves as a director at the Personal Injury Education Foundation, is in charge of developing and leading QBE’s people risk strategy

Consult, care and connect Given the uncertainty surrounding COVID-19, what’s your outlook in terms of the future of the workplace?

The external uncertainty can be matched by internal certainty – if we can find ways of dialling down the uncertainty and dialling up the certainty, workplaces will all come out of this better, together.

What I mean by this is people leaders saying, “I might not know what the lockdown means for me, when it will change, when I’ll be back up and running. What I can control, though, is how I care, consult and communicate with my people. If I’m in touch with what they think and need from me and I’m able to be open and honest with them, at least I know I’m as internally certain as possible, despite the external uncertainty.”

This really links in then to how we as an insurer, and more broadly as people in the insurance industry, can be there to assist our customers – with support, tools, resourcing, thought leadership and connection into an ecosystem of providers who can help. Using just one example, we are a strong charity partner of R U OK?. We’re able to connect their knowledge and resources directly to our customers, really upping the certainty in times of much uncertainty.

In your view, what are some of the key considerations for business leaders as they navigate the changes within their respective organisations?

Overcoming inertia and ‘paralysis by analysis’ – there are lots of opinions to weigh up, but the key thing for organisations is to start consulting with their people and to trust in that process.

The dependent consideration is, therefore, does the organisation listen well to its people? Is it diverse and inclusive, balancing out those perhaps with the loudest voice with all the voices? Personal biases will be a big one here, particularly for leaders – be conscious of the bias and lean towards action over procrastination.

Moving forward, what are you most excited about?

The re-basing of assumptions around the extent to which we are prepared to consult, care and connect with our people and, importantly, why we do it. The Fourth Industrial Revolution will continue to drive a focus on people having higher-level thinking, which in turn will drive higher expectations around workplace experiences.

COVID has taken this development to another level. The link is clearer than it has ever been. If you can keep people healthy, safe and well – and that’s everyone’s responsibility, not just government’s – then people can operate at their best, which is great for culture and translates into better customer service, improved productivity, and people being in a state of mind and therefore more conducive to thought leadership and innovation.

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03/09/2021 10:09:18 am

UPFRONT

UNDERWRITING AGENCIES UPDATE

Laying the foundation for a one-stop shop Solution Underwriting’s updated quoting tool aims to give brokers a more efficient way to get quotes

that mainly differentiates the new quoting tool from its predecessor, but it also features increased security.

“It’s got current best-practice security over the top of it,” Scoble says, “so brokers can really have the comfort that the client data and information is secure, which in this day and age is so important.”

According to Scoble, the wider company system was purchased two years ago and, while developing internal tools, Solution recognised the opportunity to rebuild its online quoting tool.

“It’s a nicer user interface for the brokers”

Solution Underwriting has replaced its original online quoting tool with a new one that uses the same system as the underwriting agency’s internal tools, which will make the quoting process more efficient for brokers.

“What it means is that if a broker puts a submission into the online quoting tool and it has to be referred, then our internal underwriters are notified of this immediately and they can, within the system, pick up where

NEWS BRIEFS

the broker left off and then finish the quote off for them,” explains finance and operations manager Sarah Scoble. “It makes the referral process much more efficient, as we’re notified as soon as a referral trigger is hit. And we don’t need to re-key the data; it’s already in our system – we can just grab it, and then the internal underwriter can finish off the quote and get it back to the broker very quickly.”

It’s that link to Solution’s internal system

ARAG Services names new CEO for Australia

ARAG Services Australia has promoted Natasha Gale from general manager to CEO. Former Australian CEO Antoinette von Wendt, who came from the Dusseldorf office, has moved into the role of COO. “We pursue a long-term strategy for our international entities where we believe in setting up local leadership teams in each country,” said ARAG’s Renko Dirksen.

“Launching in Australia in 2019 under the stewardship of Antoinette, the business has now established itself to the point where we are scaled up to appoint an Australian CEO.”

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“It’s a nicer user interface for the brokers,” Scoble says. “We can provide workflow information to tell them where they’re at, and there are also more occupations that they can get a direct quote from on the system than previously.”

Solution sees this update to its quoting tool as just the beginning; it’s planning further streamlining for the benefit of brokers.

“We want to continue to grow the tool so that it becomes a one-stop shop for brokers,” Scoble says. “Over time, we’ll also run renewals of policies through there.

[The goal] is for it to become the portal for brokers to transact with Solution, rather than through emails. I’m excited about where we can go from here.”

Emergence makes it easier to buy cyber insurance

Emergence Insurance has unveiled a new tool that makes its personal cyber insurance policies available directly through brokers’ websites. Emergence’s Personal Cyber Express gateway is a cobranded online portal that allows clients to purchase a policy from brokers’ websites with minimal interaction. Gerry Power, national head of sales at Emergence, said the onboarding process for the Personal Cyber Express gateway is simple: “All we need is the broker’s logo and contact details to go live.”

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03/09/2021 10:09:43 am

Q&A

Alistair Sandilands Head, Australasia and Asia-Pacific D&O liability LANDMARK UNDERWRITING

Years in the industry 32 Fast fact: Sandilands has worked in both the UK and Australia for some of the biggest names in insurance, including Hiscox, Chubb, XL and HDI Global

Navigating a challenging D&O market As Landmark’s first D&O head for Australasia and APAC, what do you think will be the biggest challenge for you?

At this point of the market cycle, the pressure and the need for a smaller group of insurers to provide for the insurance needs of clients remains high, and this drives my desire to work closely with brokers and clients to provide this in a way that meets their needs as well as Landmark’s. One of those needs is the requirement to write good-quality business, or at least business that you can write profitably – which isn’t always the same thing. So, I think one of the challenges is declining business.

The challenge for any insurer is risk selection and getting to understand the client at a time when it’s harder to see people face-to-face. To truly understand clients’ financials is also going to be challenging at a time when people and the economy have had money provided by the government. How do we accurately understand consumer behaviour when we’ve not had this situation before? Forecasts and predictions are a fool’s game much of the time, but especially right now. Understanding companies’ financial strength immediately post-COVID subsidies will be a challenge.

Do you think clients now have a better understanding of D&O insurance?

There’s always more education required. What we have found is that many directors assume that each

Blue Zebra rebuilds Blue Leopard platform

Blue Zebra Insurance (BZI) has rebuilt its insurance platform, Blue Leopard, to allow it to house multiple agencies and insurers in a single platform.

According to chief technology officer Amar Roomi, BZI sought to “take the learnings that we made over the last three years with the 1.0 version and apply those learnings to this new platform. What we’re hoping to have by the end of the year is to migrate all our existing products to the new platform, as well as onboard a number of agencies to help share in the benefits as well.”

policy is the same as any other, but they haven’t always worked out what their intention is for the policy. Is it to protect the company’s balance sheet, or is it more aimed at providing for the individual? Few companies do this exercise and actually question or flesh out the intention behind the policy.

It’s important to buy cover that behaves as you’d expected it to. Working with brokers to make sure that companies are buying policies which meet the board’s intention is really important, and being brought in on that conversation so I can create terms that meet those intentions is what I enjoy.

How about a company’s risk manager – what role do they play in ensuring D&O cover is fit for purpose?

It is vital for any risk manager to understand what the board wants from the policy and to be able to articulate this to the broker and insurer. The risk manager can be part of the message of education to the board of directors about the possibilities of how the D&O policy works to ensure that there are no surprises in the event of a claim.

I’ve also seen instances when the risk manager simply did not know enough of the detail behind how the company operated because the board did not consider the role to be as vital as it is. Companies are risk management organisations first, and only then comes their chosen operational venture.

CFC makes major leadership change

CFC has promoted Graeme Newman, its chief innovation officer, to CEO. Company founder and present chief executive Dave Walsh will move into the role of group CEO. Newman will lead all aspects of CFC’s underwriting business in London, including its operations functions, technology and data, while Walsh will oversee CFC’s global offices. “This appointment is a natural progression for both Graeme and for CFC, and we couldn’t be more excited about the future of the business under his leadership,” Walsh said.

Envest snaps up underwriting portfolio

Envest has acquired the underwriting portfolio of insurtech Evari, which was founded as an underwriting agency in 2016. The acquisition will allow Envest to license Evari’s tech platform for the existing underwriting portfolio and other insurance products. “Evari’s underwriting portfolio has an established customer base and opportunities for growth that fits our model of distribution to customers in partnership with big brands,” said Envest managing director Greg Mullins.

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03/09/2021 10:09:51 am

PEOPLE

THE BIG INTERVIEW

ART VERSUS SCIENCE According to John Donnelly, head of global placement for Asia-Pacific at Marsh, data might be the future of the insurance industry, but passion remains its driving force

JOHN DONNELLY has enough experience to be a walking brain trust for the Australian insurance industry. Even though his career spans five decades, the head of global placement for Asia-Pacific at Marsh still remembers his very first day of work, when he was fresh out of high school.

“I do remember my first day because what I found remarkable was that you were allowed to smoke in the office,” he says. “I thought it was going to be like school.”

The date was 8 February 1977, Donnelly remembers, and the company was T.P. Clark and Chapman, which later became Jardine Lloyd Thompson and was eventually bought

by Marsh. In a strange coincidence of dates, he worked at the same company again a couple of decades later and started on the same day and month: 8 February 2000.

Donnelly, who admits he has a terrible memory for names but an incredible recall capacity for facts and figures, shared that unusual symmetry of dates with the then-CFO and reeled off the old address and phone number of the company.

“And I said we bought this business called A. Hoffman Insurance on 20 June 1977,” he

14

recalls. “And [the CFO] said, ‘How do you know that?’ I said, ‘We used to have a yellow sticker on the phone that’s sitting on your desk’ … He got out the archives, and I was exactly right.”

Does bigger equal better?

Much has changed since Donnelly’s early days in the industry in the 1970s and ’80s. For one

participating on the risk – 30 insurers who had offices in Australia,” he says. “Now we’d be lucky to have 10 or 12 insurers with offices in Australia.”

Today, he says, it’s all about having the size and scale to deliver better returns for shareholders. But is that a good thing for the industry?

“It’s a very cutthroat world,” Donnelly

“Technology, obviously, has played a massive part in how the industry has developed and where it’s going. You go back in time, and more of the underwriting was an art than a science, and it’s now more a science than an art. There’s good and bad in that” thing, there’s been considerable consolidation. He remembers placing a major client’s business in the Australian property insurance market in the late 1980s.

“We would often have 30-plus insurers

says. “Improving returns, superior returns, are always what you’re challenged to deliver.

It’s forever hanging over your head.”

He feels the insurers that are the most successful and can endure over time are the

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PROFILE Name: John Donnelly Title: Head of global placement, Asia-Pacific Company: Marsh Based in: Sydney Years in the industry: 44 Fast fact: In his spare time, Donnelly enjoys golf and horse racing; his uncle was a Melbourne Cup-winning jockey

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03/09/2021 10:10:32 am

PEOPLE

THE BIG INTERVIEW

ones that balance shareholder demands with delivering for clients.

“If you can deliver for the client, you will have a happy bunch of clients; it will produce more clients for you, which should ultimately produce those superior returns for shareholders,” he says.

The ultimate key to success, he says, is getting that balance right. And to do that, it’s not about being the smartest person in the room, it’s about passion.

“What you really need is your own inbuilt motivation to succeed,” Donnelly says. “I think you only really get that by enjoying what you do and getting yourself really involved in the industry and with your clients.”

now more a science than an art. There’s good and bad in that.”

The downside, Donnelly says, is that it’s more difficult to negotiate because the person you’re talking to is talking on behalf of a machine that’s produced a result. “So, we find it difficult to argue with a computer,” he says.

Going forward, Donnelly sees technology and data playing an even greater role in the industry’s future, leaving even less room for negotiation.

“As time goes on, insurance companies want to be able to model and measure risk that they take now, as opposed to trying to assess risk as much as they did when it was an art,” he says.

“Clients are coming to us because of our ability to trade in the global marketplace. What we’ve had to do is adapt and collect and aggregate our data to be more knowledgeable and nimbler in the marketplace globally” You also need help along the way, he adds.

“If you can find those people, and those people have got time to help you, it’s a fantastic business to work in and a very rewarding business to be successful in.”

The age of data The other big change in the industry, of course, has been the adoption of technology and how it has facilitated an increase in datadriven underwriting decisions. Underwriters now use extensive data to measure, accept and price a risk.

“Technology, obviously, has played a massive part in how the industry has developed and where it’s going,” Donnelly says.

“You go back in time, and more of the underwriting was an art than a science, and it’s

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This new age of data does have positives, though. At Marsh, Donnelly’s job involves having a deep understanding of insurers’ appetite for certain types of risk; data helps him find answers to those questions. “Our job is to find wherever that appetite is anywhere in the world on behalf of our clients,” he says.

And, as the world’s largest insurance brokerage, Marsh has the benefit of sheer size and scale, too.

“Clients are coming to us because of our ability to trade in the global marketplace,” Donnelly says. “Scale for us is helping our clients. What we’ve had to do is adapt and collect and aggregate our data to be more knowledgeable and nimbler in the marketplace globally. That’s just the way the world’s heading, and it’s not unique to insurance.”

MARSH BY THE NUMBERS

1871 Year the company was founded

by Henry Marsh

1904 Year Marsh merged with Donald McLennan’s firm to form parent company Marsh McLennan

130+ Countries where Marsh has a presence

40,000 Number of employees globally

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03/09/2021 10:10:37 am

STAY UPDATED. STAY INFORMED. The latest news and information in the insurance industry any time, any where REAL-TIME WEB SERVICE Breaking news, in-depth profiles, interviews with industry leaders and special reports

DAILY E-NEWSLETTER Daily news service delivered straight to your inbox every morning

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03/09/2021 10:10:43 am

UPFRONT

OPINION

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

A helping hand in a hardening market Amid a tough market, insurers who have a close relationship with their brokers can help them reduce the stress their clients are feeling, writes Frank Scamarcia of Flex Insurance THE TELLING signs are here – the Australian general insurance market is rapidly hardening, particularly in the strata sector.

It’s a well-known fact that the insurance market is cyclical. Reduced risk appetites, increased frequency and severity of natural disasters, claims inflation, premium rate increases, and low interest rates and investment returns all contribute to creating a hard market.

Reduced risk appetite It’s currently a challenging business environment for brokers and their clients, and we’ve seen some insurers reducing their risk appetite and even exiting certain markets.

In this tough market, insurers need to do what they can to help brokers. Insurers should work closely with brokers, especially where they have established relationships, to place new or maintain existing cover.

Getting multiple quotes, let alone one quote, can be difficult in a hard market where the risk appetites have changed. For example, strata and building owners face ongoing issues with cladding and building defects. In this hard market, some insurers may be reluctant to quote or renew cover for these risks.

To date, Flex Insurance has not declined to quote or come off risk due to cladding issues

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alone. A sustainable and consistent approach to underwriting is important to providing cover in different market cycles. We always try to find a workable solution wherever possible – especially where owners have a plan and evidence of an active approach to rectification of cladding or defects.

and explain to their clients the necessity of continuing their cover.

Slow turnaround times Often, slow quote turnaround times can become an issue in a hardening market. This in an opportunity for insurers to step up and make it easier for brokers to get quotes for their clients.

Insurers need to review their processes to make it simpler and, consequently, easier to obtain quotes and renew cover. Flex Insurance, for instance, has introduced one of the most flexible residential strata insurance products on the market. These products are supported by a dedicated team and the unique online StrataTech system. Brokers can self-serve 24/7 across all parts of the customer life cycle – quote, bind, endorse, renew and cancel.

The need to ensure claims are quickly processed and paid is heightened with the impact of the hardening market. Clients with good risks who have experienced a poor claims service are more likely to shop around. A good claims experience is essential to maintain the loyalty and satisfaction of brokers and clients alike.

“We always try to find a workable solution wherever possible – especially where owners have a plan and evidence of an active approach to rectification of cladding or defects” Premium increases

Working together through the cycles

A shrinking market, coupled with premium increases, intensifies the pressure on brokers.

Some insurers are looking for ‘clean skin’ risks and are not keen on taking the risks of clients with a poor claims history even at a higher price.

Flexible product options and excesses, such as those offered by Flex, can be used as a lever to manage premiums. Higherthan-expected rate increases and declines at renewal time are quite common in these times. Insurers need to work with brokers to ensure they have plenty of time to review

This is a tough time for brokers and their clients. But with the challenges come opportunities for insurers and underwriting agencies like Flex Insurance. Insurers with a consistent and sustainable approach to underwriting will look at ways to work with brokers to provide solutions rather than decline to quote or renew.

Frank Scamarcia is the general manager at Flex Insurance, a fully digital strata underwriting agency offering tailored to comprehensive cover for residential strata properties.

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03/09/2021 10:11:07 am

SPECIAL REPORT

BROKERAGES

Insurance Business celebrates 20 Australian brokerages that have managed to rise above a year loaded with difficult pandemic and economic challenges

CONTENTS

PAGE

Feature article .............................................................. 20 Methodology ................................................................ 21 Top Brokerages 2021 .................................................. 24 Profiles .......................................................................... 25

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03/09/2021 10:36:53 am

SPECIAL REPORT BUSINESS STRATEGY

TOP BROKERAGES 2021

OUTSHINING THE COMPETITION “Managing our rapid national expansion – remotely – has presented challenges, yet we continue to grow during these unprecedented times”

AS IF last year wasn’t tough enough, COVID-19 has kept a firm grip on the global economy in 2021, and the insurance industry has experienced the ongoing impact of a hardening market with rising premiums. Cyberattacks have become one of the most serious challenges to the industry – one industry veteran told IB that the number of cyberattack claims is now “scary”.

And just when it looked like natural

Meg Long, McLardy McShane

NEW REVENUE STARTS TO RECOVER At just over $1m, average new revenue across the Top Brokerages is down significantly from the years just before COVID. Much like last year, the difficulties of a hard market and a pandemic have left brokerages struggling to bring in a healthy income. However, the number is an improvement on 2020 and heading in the right direction.

AVERAGE NEW REVENUE ACROSS THE TOP BROKERAGES

2013

$1,104,575

2014

$1,424,715

2015

$1,516,822

2016

$2,393,155

2017

$1,934,428

2018

$3,298,920

2019 2020 2021

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$1,402,709 $987,932 $1,112,238

catastrophes were taking a break, a string of disasters struck the country. There were floods in NSW and Victoria, cyclones from Queensland to Western Australia, and storms in Perth. Once again, the insurance industry’s weak spots were exposed, from long wait times to outdated technology and lack of capacity.

Give their heavy reliance on insurers, brokerages have suffered accordingly.

Despite a tradition of face-to-face relationships, they’ve also had to endure much of the year engaging with their customers via videoconferencing and mobile phones. With or without COVID, remote working seems here to stay for much of the industry, putting technologically agile brokerages in the best position to adapt.

IB’s survey for this year’s Top Brokerages report suggests that many brokerages have successfully navigated the monumental changes of the past 18 months and things are starting to look up. While last year’s report showed nosediving revenue, this year’s Top Brokerages have managed to stop that dive, and some have increased client numbers and

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Revenue per creeps up BACK UP REVENUE PERbroker BROKER CREEPS

METHODOLOGY

Average revenue per broker has moved up and down quite dramatically over the nine years of IB’s Top Brokerages report. Revenue per broker hovered around the million-dollar mark from 2015 to 2017 but has been stuck at around half that amount in the years since.

AVERAGE REVENUE PER BROKER $1.2m

$1m

Insurance Business invited brokerages across the country to submit nominations for its ninth annual Top Brokerages list. To be eligible, brokerages were required to have three or more brokers and be headquartered in Australia. Brokerages were ranked on the following criteria: • Number of clients • Client growth • Clients per broker

$800k

• Policies written • Policies written per broker $600k

• Revenue • Revenue per broker • Revenue per policy

$400k

• Policy revenue growth $200k

2013

2014

2015

2016

2017

2018

2019

2020

2021

“Our ongoing challenge is growing smart and consistently reviewing efficiencies across teams and processes”

As in previous years, each brokerage was required to supply its own details for the 2020–21 financial year.

Brokerages were ranked according to each of the above criteria, and all of the rankings were then added together.

Akin to a golf score, those brokerages with the lowest overall scores achieved the highest rankings.

IB’s ranking system rewards brokerages based on business per broker rather than critical mass, which ensures that the very best brokerages are singled out, regardless of size.

Stuart Brady, Shielded Insurance Brokers $143.2m revenue significantly.

As the end of 2021 draws nearer, many brokerages have a right to feel a little more optimistic about their future.

The long road to recovery While this year’s survey shows that many brokerages are starting to recover economically, it’s still hard going.

“Remaining relevant in a market that is driven by price and not advice or service continues to be the biggest challenge that we face,” says Nigel King, director of finance

and corporate affairs at Austbrokers Coast to Coast. “This is even more concerning in the COVID-19 space, where clients are reducing their level of coverage and are trying to save money in relation to their premiums.”

In addition to the overall commoditisation of the industry, King says he’s also concerned about competing with direct insurers on price. But even with these ongoing challenges, the brokerage’s results in several categories were impressive. Coming in at number six overall, Austbrokers Coast to Coast ranked in the top three for average number of clients

Total revenue across the Top Brokerages

140,855 Total number of policies written by the Top Brokerages

88,314 Total number of clients across the Top Brokerages

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03/09/2021 10:37:07 am

SPECIAL REPORT BUSINESS STRATEGY

TOP BROKERAGES 2021

NUMBER OF POLICIES WRITTEN DIPS AGAIN After making up some significant ground in 2020, the average number of policies written per brokerage across the Top Brokerages fell again in 2021 to an all-time low.

40,000

AVERAGE NUMBER OF POLICIES WRITTEN PER BROKERAGE

30,000

20,000

10,000

2013

2014

2015

2016

2017

2018

2019

2020

2021

“For active brokers who consistently show value to their clients, the past year has been a good one” Amanda Morris, ARMA Insurance Brokers Hunter Valley

per broker and the top five for both number of policies written and average number of policies written per broker.

King puts this success down to service.

“We provide a very high level of service to our clients,” he says.

McLardy McShane, meanwhile, came in at an impressive number two overall and was at the top of the rankings for number of policies written. McLardy McShane also

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did well growing its client base, expanding it by 25% and ranking number two in that category.

General manager Meg Long attributes some of the brokerage’s success to expanding with quality employees. “Managing our rapid national expansion – remotely – has presented challenges,” she says, “yet we continue to grow during these unprecedented times and attract quality people to our group.”

The brokerage also runs the McLardy McShane Fight MND Golf Challenge and participates in the annual Daniher’s Drive, both of which raise funds and awareness for motor neurone disease. In 2021, the brokerage has raised more than $100,000 for the Daniher’s Drive.

Like King, Long remains concerned about the continuing repercussions of the pandemic, including the need to provide continual support to the brokerage’s network of staff and clients.

Ranking at number 15 overall, ARMA Insurance Brokers Hunter Valley achieved good results across three key categories: overall clients, clients per broker and client growth, which was up 15%.

Managing director Amanda Morris says her company’s Top Brokerage status this year is largely to do with leadership.

“That, along with having strong foundations, a rock-solid culture and a clear vision, has held my brokerage in good stead and shown that doing the hard work for clients, day in, day out, will always prevail,” she says.

But it’s not without its challenges, Morris adds. “In a hard market, insurer capacity is always a challenge. For active brokers who consistently show value to their clients, the past year has been a good one. A hard market has seen movement from clients, which has worked in our favour.”

Morris, who launched the coaching busi-

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ness Broker Base last year to train and mentor fellow insurance brokers, says training has also been a challenge. “I have a rather young team of brokers in training who also require time and attention, which I love to give, but it is also a challenge in this climate.”

Brokers. The brokerage doubled its client base over the past year and also ranked in the top three for both number of clients per broker and revenue from new policies.

“It’s been another huge growth year for us at Shielded,” says managing director Stuart Brady, whose brokerage supports the charities Act for Kids and Mindfull Aus. “Our ongoing challenge is growing smart and consistently reviewing efficiencies across

The best of the best This year’s standout performer, for the second year in a row, was Shielded Insurance

teams and processes.”

Brady adds that open communication has been key to Shielded’s success during this period of growth.

“I’d say the key to success this past year has been sharing our vision and plans with the team,” he says. “Training and development of staff, including their engagement and feedback, will continue to improve our culture, processes and outcomes.”

NCI Trade Credit Solutions.

Insurance Business Top Brokerage 2021.

Connect with NCI to find out how we can support and grow your business. Call us on 1800 882 820 or at info@nci.com.au.

ADELAIDE

|

BRISBANE

|

CANBERRA

|

MELBOURNE

|

PERTH

|

SYDNEY

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03/09/2021 10:44:53 am

SPECIAL REPORT BUSINESS STRATEGY

TOP BROKERAGES 2021

BROKERAGES 1 Shielded Insurance Brokers

8 Scott Winton Insurance Brokers

Phone: 1800 979 899 Email: info@shieldedinsurance.com.au Website: shieldedinsurance.com.au

9 Stewart Insurance Group

2 McLardy McShane Phone: 03 9290 9200 Email: info@mclardymcshane.com.au Website: mclardymcshane.com.au 3 Apollo Risk Services Phone: 08 9228 3332 Email: info@apollorisk.com.au Website: apolloriskservices.com.au 4 Dunk Insurance

5 Triton Broking Services 6 Austbrokers Coast to Coast Phone: 07 5586 9955 Email: admin@abc2c.com.au Website: abc2c.com.au 7 (tie) Elliott Insurance Brokers

7 (tie) Trade Risk

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10 National Credit Insurance 11 Dixon Insurance Services 12 allinsure 13 Ian Jones Insurance Brokers 14 ARMA Insurance Brokers Hunter Valley Phone: 02 4932 4444 Email: maitland@armainsurance.com.au Website: armainsurancehv.com.au 15 Lighthouse Insurance Brokers 16 Bell Partners Insurance 17 (tie) Thompson Insurance 17 (tie) Hunter Broking Group 18 Clear Insurance

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M

MCLARDY MCSHANE Phone: 03 9290 9200 Email: info@mclardymcshane.com.au Website: mclardymcshane.com.au

cLardy McShane was established in 2007 following the merger of the insurance brokerages owned by Don McLardy and Mike McShane. In the 14 years since then, the combined brokerage has become an industry leader, committed to putting people before profits.

Over the past year, McLardy McShane has continued to build an infrastructure that combines technology and expertise to keep pace with the changing insurance landscape. The brokerage implemented a website and technology upgrade that included the launch of an online partner portal to provide a one-stop shop for the group’s partners. McLardy McShane also introduced a new national support team to provide services and assistance to its joint venture partners and appointed two BDMs to develop and maintain relationships across Australia.

So what’s next for McLardy McShane? Meg Long, group general manager, says the brokerage will continue to expand its national footprint while maintaining a flexible and forwardthinking approach. And, she adds, “we are excited about the young talent in our group who will take us through to the next phase and continue to build upon the culture and values already immersed within our company.”

A

APOLLO RISK SERVICES Phone: 08 9228 3332 Email: info@apollorisk.com.au Website: apolloriskservices.com.au

pollo Risk Services (ARS), part of the Steadfast Group, is a specialist team of insurance professionals on a mission to provide unique insurance solutions to commercial, indus­trial and professional businesses of all sizes.

The diversity of the (ARS) team’s backgrounds, experiences and expertise allows them to work together to tailor insurance solutions for clients.

(ARS) has faced many challenges over the past 18 months, from continuing changes in regulation to hard market conditions and dealing with insurer partners who are still working remotely.

But thanks to the (ARS) staff ’s dedication to their role in supporting clients through financial hardships and claims, the team was able to successfully complete a record number of claims on their clients’ behalf across property, liability, motor and workers’ compensation. The brokerage also experienced a continued high number of new business referrals from satisfied clients.

ARS) executive director Mark Taylor says the brokerage plans to continue expanding its authorised representative network, which now totals more than 30.

“Despite some of the challenges faced, we are very pleased with the development of some of our younger authorised representatives, both in business growth and their dedication to learning and development,” he says.

As for coming in third on IB’s Top Brokerages list for 2021, Taylor says ARS) is “very pleased and grateful to all our team who have played their part”.

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SPECIAL REPORT BUSINESS STRATEGY

TOP BROKERAGES 2021

SHIELDED INSURANCE BROKERS

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or the second year running, Shielded Insurance Brokers has claimed the number-one spot among IB’s Top Brokerages. In 2020, it was record-setting growth that drove the company’s impressive success. This year, says managing director Stuart Brady, the key ingredient behind the win is the Shielded culture. Brady is proud of the shared vision for constant improvement across all aspects of the business.

“We are thrilled to take out the win again, and it’s hats off to the team for their hard work over the past year,” he says. “I’d say the key to success this past year has been sharing our vision and plans with the team. We are on this journey together, and together we will celebrate our successes.”

Managing the workload amid impressive growth has been Shielded’s biggest challenge in both 2020 and 2021.

“It’s been another huge growth year, and workload has remained a constant battle, but I feel this year we have grown

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Phone: 1800 979 899 Email: info@shieldedinsurance.com.au Website: shieldedinsurance.com.au

smarter,” Brady says.

To address this, Shielded created new manager roles across broking, claims, compliance and administration. The brokerage has also continued to streamline processes and leverage technology to help reduce workloads and improve customer service.

“We’re constantly reviewing efficiencies and performance across these areas,” Brady says. “Weekly meetings at the ‘Shielded Round Table’ have allowed us to identify areas for improvement, discuss challenges and act quickly to ensure continued operational success.”

Of course, still humming away in the background is COVID-19. Brady thinks the insurance industry has fared quite well during the pandemic, especially given the hard market and low insurance availability.

“We’ve been lucky to have continued growth through COVID by putting a huge emphasis on how we demonstrate value to our clients,” he says. “It’s a job well done

when we can simplify the complexities of insurance for our clients and help them to understand what they’re paying for. As insurance brokers, I believe now’s the time where we can really provide support and peace of mind for our clients.”

One way Shielded has improved the customer experience this year is through its use of technology.

“All our programming and proprietary systems are done in-house,” Brady says.

“It’s allowed us to make more informed decisions backed by data and also strengthen our compliance audit system and improve customer interactions with the business.”

The brokerage also has a new customer feedback system, as well as the Shielded Knowledge Hub, which allows staff to share their latest findings and learnings with peers. Clearly, Shielded is well on the way to a hat trick of number-one finishes on IB’s Top Brokerages list.

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03/09/2021 10:45:11 am

AUSTBROKERS COAST TO COAST

ARMA INSURANCE BROKERS HUNTER VALLEY

Phone: 07 5586 9955 Email: admin@abc2c.com.au Website: abc2c.com.au

Phone: 02 4932 4444 Email: maitland@armainsurance.com.au Website: armainsurancehv.com.au

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ustbrokers Coast to Coast is a trusted team of insurance experts that go the extra mile to assist clients in protecting their businesses. When COVID-19 affected clients in the hospitality and tourism industry, Austbrokers Coast to Coast reached out to provide them with risk management advice and a disaster recovery plan, helping many to remain in business.

The brokerage also assisted a number of clients in applying for JobKeeper and other grants available to small businesses.

Amid the challenges of a hardening market, the pandemic and competition from direct insurers, Austbrokers Coast to Coast remains committed to giving clients good old-fashioned customer service and sticking to its mantra of providing advice over price. It’s also looking to strategically align with or acquire businesses with similar values and ethics, and to make strategic alliances that will allow it to expand its global reach.

CEO Dale Hansen says the team is very proud to have been named one of IB’s Top Brokerages for the fourth consecutive year. “We have an excellent team who consistently do what is right rather than just taking the easy option,” he says. “The team’s commitment to customer service has never wavered and is of the highest standard.”

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RMA Insurance Brokers Hunter Valley is a specialist commercial, agribusiness and general insurance brokerage with 13-plus years of experience in providing insurance, risk management and claims management solutions.

Despite the challenges of the pandemic and the hard market, the brokerage has had many successes over the past year. The team was able to maintain its high level of service and team culture during the COVID-19 lockdowns and was named Corporate Authorised Broker of the Year by CBN. In addition, managing director Amanda Morris was named to IB’s Hot List and was recognised as NSW Broker of the Year by Advisr.

Commenting on the brokerage’s ranking among IB’s Top Brokerages, Morris says, “It is humbling to be recognized as a top brokerage in Australia and is a reputation we benchmark to every single day. The award builds team morale and confidence, which helps them to navigate tough times with certainty, and our clients love it.”

ARMA Insurance Brokers Hunter Valley will soon implement a strategic growth plan for 2022 that aims to make the brokerage a household name in the Hunter Valley. It also plans to recruit more talented staff in the year ahead.

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03/09/2021 10:37:43 am

FEATURES

WOMEN IN INSURANCE

SHAPING THE FUTURE Insurance Business’ recent Women in Insurance Summit offered a wealth of innovative ideas and strategies around how to build a better and more diverse industry IN EARLY AUGUST, Insurance Business was pleased to host its annual Women in Insurance Summit. The switch to a virtual event in light of the Sydney lockdown did nothing to diminish the inspirational contributions of the speakers. Nor did it squash the enthusiasm of the 200-plus live attendees – each session ended with a range of great questions and discussion points.

Sylvia Quang, special counsel and partner-elect in the Sydney insurance team at HW Ebsworth Lawyers and president of the NSW Committee of the Young Insurance Professionals, served as the event’s chair and facilitator. Quang noted that while progress is being made in some areas of the industry, finance and insurance firms still have one of the worst gender pay gaps, at almost 28% versus 20% across the workforce as a

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whole. To combat this, she said companies need consistent gender equity, diversity and inclusion policies and strategies. And women

Insurance Summit couldn’t have taken place: Brooklyn Underwriting, Innovation Group, JP Flynn Builders, Sparke Helmore Lawyers,

“My organisation is led by a strong and dynamic powerhouse female chairman who sets the tone from the top – which is very important – about diversity and inclusion” Belinda Speirs, Suncorp need to lead – not necessarily with a title, but by example in mentoring or sponsoring other women.

Quang ended by acknowledging the event sponsors, without whom the Women in

Wotton + Kearney, Duck Creek Technologies and Gallagher Bassett.

Five of the day’s sessions offered valuable takeaways on networking, resilience, diversity and more.

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03/09/2021 11:04:43 am

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www.innovation.group

03/09/2021 11:04:45 am

FEATURES

WOMEN IN INSURANCE

NETWORKING FOR RELUCTANT NETWORKERS Many women in business are sceptical about networking, noted Amanda McKernan, CEO of the Australasian Life Underwriting and Claims Association. If you feel networking is for extroverts, that it’s ‘fake’ or it fills you with anxiety because it speaks to your imposter

A WORD FROM THE SPONSOR: WOTTON + KEARNEY Wotton + Kearney (W+K) is thrilled to sponsor the Women in Insurance Summit again this year. The summit is an important industry event that reflects our own commitment to improving diversity, equity and inclusion in the insurance sector and within our business.

Many of our women are recognised leaders in their fields and are the go-to experts for some of the world’s largest insurers and reinsurers. As a renowned leader in insurance law, with more than 200 lawyers across six offices in Australia and New Zealand, W+K walks the talk when it comes to supporting women in insurance, both personally and professionally.

At W+K, women are strongly represented across every position on the legal career ladder, and that includes our board and partnership. We’ve designed a diverse range of initiatives to support all our women, including Thrive, a custom-built women’s leadership program that comprises learning and networking opportunities. W+K was also one of the first law firms to implement a flex policy for all roles, informed by our remote working experiences during the pandemic. W+K FLEX empowers all our people to flex around their personal and work commitments for any reason, no permission required. We were proud to be recognised for our market leadership on flexible working with an excellence award for Diversity Initiative of the Year as part of the 2021 Australasian Law Awards.

As a people-first business, W+K is also committed to making a difference in people’s lives through Community Footprint, our pro bono and responsible business program. Our program is aligned with the UN Sustainable Development Goals, including SDG5: Gender Equality. Within this framework, W+K can respond to changing areas of need and drive positive change.

syndrome, try reframing it, she urged. Think of it as a coffee catch-up with people you have things in common with.

A good network can provide hidden career opportunities, the chance to be informed and share your own knowledge, and great career advice. McKernan outlined a five-step framework for forging better connections.

Prepare. If you have the attendees’ list for an event, identify anyone you know so you can network with them first to make yourself feel comfortable, but also identify individuals in companies you’re interested in. Perhaps email them to say, “I’d like to catch up in the networking area at the summit.” Networking is everywhere – walking to the corner store or going for a coffee – so use these occasions to practise your conversation openers. Be authentic – don’t try to be extroverted if you’re not.

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Consider your brand. What’s your personal brand? What’s your pitch? “I am part of a network with senior women – we catch up and critique each other’s pitch,” McKernan said. “Do that with your network or your friends.”

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Work on your body language.

Make eye contact, listen far more than you talk and show you are listening by nodding and smiling. Also think about stance. “A lot of people I can see at events have their arms folded; they’re uncomfortable,” McKernan said. “You need to be relaxed. It may not come naturally to you, but practise it.”

Follow up. If you have the email of the person you spoke with, send a nice message. Keep it sincere and brief.

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Network online. With 756m members, LinkedIn is the largest professional network on the internet – you should be on it. Constantly update your profile and optimise it.

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03/09/2021 11:04:54 am

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03/09/2021 11:05:02 am

FEATURES

WOMEN IN INSURANCE

A WORD FROM THE SPONSOR: SPARKE HELMORE LAWYERS This is the third year Sparke Helmore has been a proud supporter of the annual Insurance Business Women in Insurance Summit. Focused on the big challenges and conversations impacting the insurance industry, this partnership allows us to show our support for all the amazing women who participate in the industry, contribute to this important debate and reinforce our commitment to diversity, equity and inclusion.

At Sparke Helmore, we know that a culture of inclusion benefits everyone, which is why we are dedicated to continuing to enhance the way we operate to reflect the uniqueness of each of our people. We also know that an inclusive environment is pivotal in connecting with our clients so we can all flourish and deliver our best.

For the D&I agenda to continue to thrive, we all need to look beyond a one-size-fits-all approach to inclusion and continue to listen to each other’s experiences and challenge ourselves on innovative ways of working that are truly reflective of the diverse communities we are all part of. The Women in Insurance Summit provides a fantastic opportunity to hear and understand how industry leaders are responding to these ongoing challenges, the steps that are being taken to encourage and promote change, as well as tips to continue to keep the insurance industry thriving and forward-looking.

CHALLENGING BIASES Bias can be a major impediment to women moving into more senior roles. Belinda Speirs, group general counsel at Suncorp, said her five years at university set her up for success in overcoming bias. “Not the two degrees I did, but the work I did,” she clarified – as a waitress, forklift driver, tutor, receptionist and sales rep.

Later, Speirs set up her own legal practice and ensured there was childcare available, along with flexible hours – “based on the notion that we can be mums, but we can also be very good lawyers”.

After moving from South Africa to Australia, Speirs ended up at Suncorp, which is “led by a strong and dynamic powerhouse female chairman, Christine McLoughlin, who sets the tone from the top – which is very important – about diversity and inclusion.”

When it comes to challenging gender stereotypes, Speirs prefers targets over quotas. “I want to get a job because people know I am the best person,” she said.

She also outlined six things she believes are important for meeting D&I goals.

Sponsor people – promote and talk about their success.

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A WORD FROM THE SPONSOR: JP FLYNN BUILDERS JP Flynn Builders was founded in 1987 and has been providing building and restoration services to the insurance industry for more than 35 years. We promote a workplace of gender equality and inclusion and are a strong advocate of women in leadership and management roles. Our business growth and innovation in the market has been led by a female managing director since 2015.

To reinforce our business beliefs and support both the existing and next generation of female leaders coming through, JP Flynn Builders has aligned with the Women in Insurance Summit again this year. Working across both the Insurance and building industries, where there is often an imbalance in gender equality, we think the summit is extremely important to recognise and celebrate the achievements of women in our own business and the wider insurance industry. This event is also an opportunity for our team to hear from others in the industry around challenges they have faced and how we can help to foster a culture that reduces the gender gap and drives equality and fairness in our leadership choices.

At JP Flynn Builders, we are proud of our extensive insurance experience, equal opportunity workplace, industryleading and sustainable systems, and commitment to the local communities we work in. All this combined has earned JP Flynn Builders a reputation as an insurance service provider that you can trust to represent your brand.

Figure out how to measure results – if you can’t measure it, you can’t manage it, and you can’t change it.

Practise blind recruitment. “I don’t want any identifiers in CVs I see,” Speirs said.

“All I focus on is what that person can do.”

When you interview, have a stakeholder present who doesn’t think like you.

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03/09/2021 11:05:18 am

FEATURES

WOMEN IN INSURANCE

A WORD FROM THE SPONSOR: BROOKLYN UNDERWRITING Brooklyn Underwriting is proud to have aligned with the annual Insurance Business Women in Insurance Summit as a gold sponsor. For Brooklyn, increasing our team’s diversity slate has been a major focal point as we have grown and expanded our operations over the last few years. We are so proud of the widely diverse and inclusive team we have put together – and it’s worth mentioning that over 65% of our team are women!

The Women in Insurance Summit offers a chance to hear how our industry peers are navigating through the challenges we are all facing in terms of diversity, inclusion and, of equal importance, equity. Having the opportunity to discuss and dissect with our insurance colleagues the steps they are taking or the roadblocks they are facing in terms of improving their position on D&I is invaluable, and it’s a conversation we hope will continue long into the future.

At Brooklyn, we are committed to the ‘long haul’ of maintaining our approach to D&I and continue to drive the ethos of being unafraid to bring your whole, authentic self to work each day. Driving much-needed change – not just in the insurance world, but across all sectors in Australia and beyond – is an ongoing effort. We stand by the ‘no gimmicks’ philosophy that businesses need to do more than a social media pledge once a year claiming to support diversity and inclusion. It’s time to walk the talk.

“Resilience isn’t something you are born with. Learning strategies of resilience has made the difference between success and failure for me” Amanda Morris, ARMA Insurance Brokers Hunter Valley Focus on talent mapping.

Demand fair pay. If you are doing the same job and have the same skills and experience, you should get paid the same.

“Find market comparisons and say, ‘This is what I am entitled to; you need to recognise my expertise,’” Speirs advised.

BUILDING RESILIENCE Resilience has been critical during the COVID-19 pandemic – and it’s something Amanda Morris, managing director at ARMA Insurance Brokers Hunter Valley, has mastered. After a horse-riding accident left her hospitalised for three months as a teen, she was told she’d never walk again. Morris resolved that wouldn’t be her

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destiny, and she believes that experience shaped who she is today.

Morris outlined her three pillars of resilience. First, resilient people know bad stuff happens – build your strength on knowing that. Second, resilient people focus on things they can change and accept the things they can’t. “Choosing what you focus on and looking for the good in everything is something I have developed the muscle around,” Morris said.

And third, resilient people ask themselves whether what they’re doing is helping or harming them. “Social media is a big one for me during COVID,” Morris said. “If I am on it too much, I can feel that negative energy coming for me, so I choose not to enter that space anymore.”

“Resilience isn’t something you are born with. Learning these strategies of resilience has made the difference between success and failure for me.”

When the pandemic first hit, Morris was coaching 10 brokers, and they were naturally panicking about the survival of their firms (as were her own staff ). She gave them two tasks: find the top five things in your business you are proud of, and work out what losing 10% to 20% of your income looks like (because JobKeeper kicked in at 30%).

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FEATURES

WOMEN IN INSURANCE

“I had 10 of them go away in complete panic then come back as the most resilient, in-control business owners,” Morris said.

“It was the fact they had done the heavy lifting themselves.”

DEFINING YOUR CAREER PATH Career paths aren’t always linear – Suzi Leung’s definitely hasn’t been. “My parents were boat people from Vietnam. My upbringing had a huge focus on study because my parents saw it as pathway to a better life,” said Leung, COO at Zurich Financial Services Australia. “They instilled in me hard work, drive, resilience and strength.”

Leung practised law, became an insurance litigator, then quit law and returned to Zurich, where she had worked as a student.

After time away to raise her children, Leung decided to resume her career. Zurich offered her a claims role – a position she could comfortably slot back into. She said no.

“It’s important for women to know it’s OK to say no and to weigh up opportunities as they come,” she said.

Then Zurich offered her a contract. After six months, she was made permanent, and 18 months later, she was promoted to COO. Leung shared three qualities that have held her in good stead over her career.

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Self-awareness. Take time to reflect, analyse, plan, re-plan and do post-mortems. Look at experiences and events from lots of angles to see how you can learn and grow from them. Be honest about what you’re good at and what you can bring to the table.

A WORD FROM THE SPONSOR: DUCK CREEK TECHNOLOGIES Having a diverse workforce can not only help create better alignment with customers and people, but also make teams and organisations more innovative. We believe that the more diverse and inclusive we are as an organisation, the more comfortable our people feel in being themselves and bringing new and innovative ideas into work, day by day.

While improving diversity and inclusion remains a key objective across the insurance industry, and we have come a long way in enhancing this, many women still face various challenges and roller-coaster rides when it comes to further growth and achieving their maximum potential within the industry. This is especially true during recent times, where many women might be struggling to identify what life could look like in a post-COVID world, as well as achieving the right work-life balance with increasingly blurred lines between work and home life. It is therefore important that we understand that with diversity come different needs and circumstances, and the industry and leaders need to be sensitive to those needs, preparing to deal with them appropriately and flexibly as they arise.

The key to pushing this forward is education and awareness. Insurance Business’ Women in Insurance Summit therefore presents an amazing opportunity for women in the industry to come together and share their similar yet very distinct journeys by courageously telling their powerful and inspiring stories. Duck Creek Technologies is proud to be supporting the Insurance Business Women in Insurance Summit and efforts that focus on giving women the opportunity to grow and thrive in the industry. Such efforts really highlight how true transformation begins with leadership and strategies that can create a culture of empowerment and engagement.

A WORD FROM THE SPONSOR: GALLAGHER BASSETT Gallagher Bassett is a proud supporter of the Women in Insurance Summit each year, an inspirational event that brings together a number of female role models within the industry.

The summit provides a valuable forum for conversations around issues that directly impact women in insurance, such as pay equity and challenging gender bias, as well as other important topics like diversity and inclusion, innovation, and mental wellbeing.

Each year, we take the opportunity to send along a number of women to represent us at the event, in acknowledgement of their immensely valuable contribution to our company and to our industry. We’re fortunate to have many highly skilled, inspiring and motivated women work for us at Gallagher Bassett – in fact, 50% of our managers are female. As for our broader commitment to diversity, we strive to create a supportive and inclusive workplace that harnesses the unique perspectives, talents and experiences of all our people. Our focus on diversity and inclusion spans every way that people differ, both visible and invisible.

A personal brand. This includes how you present yourself, how you communicate, how you behave in meetings, your writing, etc. If your name comes up in conversation, what are the three things you want to pop up in people’s heads?

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Clarity. To know where you want to go, you need clarity around your identity, values, what you’re good at, what you enjoy and what you want to achieve. That clarity helps determine what you define as success.

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RESHAPING DIVERSITY Boosting diversity, equity and inclusion is one of the most pressing challenges for the

insurance industry right now. Cara Morton, group CEO of the Cover-More Group, shared a key strategy for recruiting managers, which she learned from a visit to Amazon in Seattle: choose one of your peers in a different section of the business to sign off on the role. “You tend to see people recruiting individuals like themselves,” she said, “so this brings diversity into an organisation.”

Gillian Davidson, senior partner at Sparke Helmore Lawyers, said her firm has found that D&I initiatives succeed when

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03/09/2021 11:05:44 am

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03/09/2021 11:05:52 am

FEATURES

WOMEN IN INSURANCE

A WORD FROM THE SPONSOR: INNOVATION GROUP

they are employee-led. Davidson is the founder of the firm’s Six Degrees network, which supports women through networking, leadership, mentoring and collaboration.

She said that just as Sparke Helmore has targets for lawyers’ pro bono hours, she’d like to see targets for D&I – looking at how people are engaging, learning, growing and giving in that space.

To make D&I more than just policies on a page, said Morton, organisations need to have processes in place that allow people to call out when the culture isn’t where it needs to be.

One the topic of career progression, Catherine Carlyon, country manager at AXA XL, said one piece of advice stood out. When a role came up that she wasn’t sure if she should apply for, the person she reported to told her, “You should apply – it will enable you to have a conversation with some of the organisation’s leaders about where you see your career going.”

Carlyon did apply – and her boss turned out to be right. “It opened other doors and showed the willingness I had to do more.”

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ABOUT THE WOMEN IN INSURANCE SUMMIT Insurance Business launched the Women in Insurance Summit in 2018 with the goal of elevating a new generation of insurance industry leaders through empowerment, education and inspiration. The message of equity, inclusion and diversity, and the women and allies who have championed it, have allowed this series to flourish even during a year of hardship and difficulty.

In 2021 alone, Women in Insurance will provide a platform for female insurance professionals in Atlanta, Boston, Toronto, New York City, Chicago, San Francisco, London, Sydney and Auckland.

However, the true success story of this event lies with the Women in Insurance Global Network, a community of 600plus women and allies that every event attendee is granted admission to. Most career summits end at the door, but this series connects people in a lasting and meaningful way that continues long after the event ends.

The Women in Insurance Summit will return to Auckland in July 2022 and Sydney in August 2022.

Innovation Group is delighted at the opportunity to participate and be part of the Women in Insurance Summit this year. We certainly need a platform like Women in Insurance in Australia to give women their much-deserved recognition; we need women leaders top of mind every single day. Women today are unstoppable, and their power and influence are rising. Increasingly, women demand a new society that gives them choices – they can choose to do anything and be anything, and women are building the systems that enable them to do that.

“Women don’t need a business title to be a leader. A true leader shows up in their community to make a real impact,” says Drew Schnehage, Innovation Group’s MD for Australia. “I have been fortunate to be afforded the opportunity to move to Australia to rebuild and grow the Innovation Group business in the region. COVID has made it difficult to create visibility for the brand, as well as establishing myself and building relationships. The key to the success of any business is the building of relationships and growing your network.

“The Women in Insurance platform provides the perfect opportunity for me as a female leader to uplift my personal brand, as well as the image and credibility of the business. People trust people, and they trust a great reputation.

When I reviewed my leadership team, I took a decision to add more females as key decision-makers. I believe you are only as good as the people you surround yourself with.

“Forming partnerships is key, and we are aligning the business to provide true value-add to our clients with the right people. We want to be the best thirdparty administrator that provides motor accident claims management solutions to the vehicle manufacturer, fleet and insurance industries. As a female leader, I will continue to break the glass ceiling, paving my own path and uplifting others around me and setting the example for the next generation of female leaders.”

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03/09/2021 11:06:02 am

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03/09/2021 11:06:08 am

FEATURES

SECTOR FOCUS: TRANSPORT

Are you delivering the goods?

In a shifting legal and business landscape, there’s never been a better time for brokers to check that their transport clients’ policies remain fit for purpose, according to David Brando and Alexander Sawtell of NTI

HERE’S A SCENARIO to get any broker’s blood pressure up. Your client’s truck has overturned, and diesel and highly fragile cargo have spilled onto the road. The motor insurer has towed the truck and trailer but left the cargo strewn everywhere because they don’t cover that. Your client isn’t happy – only now seeing the implications of having cover with separate insurers. To make matters worse, it’s unlikely that their carrier’s cargo insurer will come to the party either, because the fragile goods are news to them – and to you.

Of course, this is an extreme hypothesis, but it makes two important points. First, having all of a transport client’s cover with the same insurer might be the most prudent approach. Second, you can’t take for granted that your customer has kept you in the loop about the goods in their care.

These are both excellent reasons to check in with your transport clients – and recent changes to the unfair contract terms provisions of Australian Consumer Law (ACL) mean there’s no better time than now.

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Whose fault is it anyway?

The broader definition of ‘consumer’ under the amended ACL means a greater number of transactions will be protected under the law. For transport operators, this expands their scope of liability, as they’ll no longer be able to call upon their ‘all care, no responsibility’ contract to get them off the hook in the case of damage to a consigner’s goods.

“As insurers of carriers, we will see more claims being lodged as they are held to account for damage they cause,” says David Brando, national carriers product manager

at NTI. “In the past, many carriers sought to rely on their contracts to alleviate their responsibilities and only sought insurance cover that would defend their trading terms, to the detriment of the owner of the goods and the commercial relationship.

“In the last couple of years, we have seen a clear trend towards material damage cover on goods in transit, whereas in the past, many people relied on carrier’s liability cover. That meant they would point to their contract and say, ‘You signed a deal saying you weren’t going to hold me responsible if something went wrong’. It often required a determination from the courts to resolve.”

Now there is less value in that, Brando says – and not just because of the shifting legal landscape.

“The changing attitude away from liabilitybased cover also reflects that people place more value on their business relationships,” he says. “Rather than telling the customer who consigns something to you every week, ‘I don’t care that I damaged your goods’, they are now saying ‘I am going to provide some goodwill and cover the damage I caused’.”

What this means is that carriers – and the brokers and insurers advising them – need to pay even closer attention to contractual terms. Do terms need to be reviewed in light of the ACL changes – and might it be wise to do so anyway to avoid souring longstanding relationships?

“The first onus sits with carriers to review their trading terms and determine whether there is an obligation upon them to make those contracts more fair under this new

ABOUT NTI NTI is a specialist insurance provider offering products and assistance services for the transport and logistics industries, including heavy commercial motor, mobile plant and equipment, and marine insurance. Starting out in 1971 as R&G Insurance Consultants, National Transport Insurance Limited (NTI) was formed in 1986 with local insurers AMP, Sun Alliance, General Accident and QBE as equal joint shareholders. This allowed the company to expand further across Australia. Today, NTI is a joint venture between IAG’s CGU and Suncorp’s Vero, two of Australia’s largest general insurers.

For more information, visit nti.com.au.

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“The changing attitude away from liability-based cover reflects that people place more value on their business relationships” David Brando, NTI legislation,” says Alexander Sawtell, national liability product manager at NTI. “So engage a good lawyer – unfortunately, we see a lot of customers who try to do it themselves; they might copy someone else’s trading terms, which may not be appropriate to their specific circumstances.”

Next, operators should be asking whether they need to shift from lower-cost carrier’s liability cover, which may no longer be fit for purpose, to an insured perils or accidental damage style policy.

“If you have traditionally paid a small premium for a liability-based cover, it may no longer be adequate for your needs,” Sawtell

says. “We as insurers should even be asking, ‘Is it appropriate for us to be issuing a liabilitybased cover for these goods in transit, given we can’t rely on your trading terms to defend a claim?’. What’s the point of having a fight over liability when the court will probably now rule the ‘all care, no responsibility’ clauses to be unfair? It will ultimately just result in frustrations for the carrier and their customer, as the claim takes longer to settle and will ultimately still incur the same amount as if it was covered under a material damage cover, plus the additional burden of significant legal fees.

That will see premium costs rise, if insurers do continue offering this style of cover at all.”

A long time coming Insurers like NTI have been advising customers for a while to shift their reliance on liability-based goods in transit cover.

“Our carriers are increasingly understanding it’s in everyone’s best interest to just get a claim settled promptly and move on,” Brando says. “However, margins are thin, particularly in road transport, so when you are presenting an insurance alternative that costs more, customers can struggle to find the value in that additional cost.”

It’s up to the broker and insurer to make that case as best they can – because often it’s only after the fact that the client sees the value of full accidental damage cover.

The case for more comprehensive insurance is also mounting from a storage perspective. Carriers storing customers’ goods in their warehouse might think their public liability cover is sufficient to insure the cargo. But while those goods are subject to bailees’ liability, certain things are still not covered.

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FEATURES

SECTOR FOCUS: TRANSPORT

NTI’S POSITION ON CARE, CUSTODY AND CONTROL “When we provide cover for goods in the insured’s care, custody and control – and we provide various limits – we do so on the basis that it is bailees’ liability rather than standard liability under tort law,” says NTI’s Alexander Sawtell. “So it does shift the onus to some extent from the plaintiff – i.e. the person who has suffered the loss – to the person who has the goods in their care under that bailees’ liability. But they can easily dispense with that onus if they show they have tried to protect the goods as best they can – it is not an absolute liability.

“So while we are happy to give that cover, and most transport operators need it, ultimately it doesn’t give comprehensive protection in the same way that property insurance might.

We also advise that someone who fully wants to protect their interests should be looking to the property market to give them that cover, despite the greater expense, as it’s ultimately much broader cover.”

“For example, if the owner of the warehouse has a security fence, guard dogs, alarms and security patrols, and yet someone still breaks in and steals something, it would be very hard to prove they are legally responsible under bailees’ liability, as they have done everything they could reasonably do to avoid that loss,” Sawtell explains. “So it might come as a shock to certain transport operators that their care, custody and control cover is not comprehensive. What they ought to do if they want comprehensive cover is go to a property insurer for a policy that covers customers’ goods as contents and which will cover them for fire and theft, etc.”

The increasing frequency of extreme weather events also makes this approach a good idea.

“You’d be hard pressed to prove a carrier who gets flooded is legally liable for

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damaged goods, particularly if they’ve taken steps to try and mitigate that risk,” Sawtell says. “Unless there is comprehensive cover in place, the owner of the goods might be out of luck. Even if they have their own insurance, a lot of consigners may not be very happy about having to ruin a flawless claims history because they consigned goods with someone who didn’t give them the level of protection they expected.”

Mind the gaps As well as running a fine-tooth comb through clients’ existing policies in light of the new legislation, brokers would do well to minimise any gaps upfront by opting for a ‘one-stop shop’ solution.

“At NTI, our policies are structured to work in harmony,” Sawtell says. “There is a lot of benefit to a carrier taking their carrier’s cargo insurance, liability and their motor insurance with NTI. “Imagine someone operating a folding crane on the back of a truck to unload a pallet of goods and, when swinging the pallet out, they strike third-party property, not only obliterating the goods but also damaging a

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a work site, that shuts the site down, and the goods are held up from being delivered,” Brando says. “So having cover during those unforeseen stoppages is critical. NTI’s carrier’s cargo insurance policy covers you for up to 30 days for temporary storage, which is market-leading.”

Then there are planned interruptions – for example, where the carrier breaks transit and chooses to take the goods back to their depot rather than straight from point A to point B. “Again, you need to ensure you understand where your covers start and stop,” Sawtell says. “We have seen plenty of circumstances where people have elected to break the ordinary course of transit and stored goods in their depot. Strictly speaking, there is no carrier’s goods in transit response in the case of a deliberate break in the transit. This would be where public liability or property insurances respond, if they are appropriately placed. If there are gaps between these policies, someone will be left out of pocket and sorely disappointed.”

The takeaway for brokers? Be proactive in checking how the changing legal

“The first onus sits with carriers to review their trading terms and determine whether there is an obligation upon them to make contracts more fair under this new legislation” Alexander Sawtell, NTI nearby building in the process. If you have both those covers with one insurer, it makes settling the claim a lot easier than having to involve separate insurers, investigators and assessors.”

Another scenario where it pays to have the right cover is when transit is interrupted – an increasing likelihood thanks to the COVID-19 pandemic.

“If someone tests positive for COVID at

landscape fits in with your client’s business and whether their breadth of cover is still adequate.

“We see a lot of customers who take out a policy to cover general goods when they are starting their new business, but over time they might specialise in a certain area,” Brando says. “If they are not partnering with their broker closely enough, the cover may no longer fully meet their needs.”

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Specialists in Cargo

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FEATURES

SECTOR FOCUS: TRANSPORT

Driving home the benefits of vehicle safety tech Zurich’s Mervyn Rea chats to IB about the advance of digital driver safety tools – and the role insurers should play in encouraging their uptake

THE ADOPTION of driver safety technology has been slowly moving up a gear in recent years – and no wonder. Given their potential to save lives and prevent injury, digital safety tools seem like a no-brainer investment, especially for anyone in the transport industry.

In 2018, Australia’s National Transport Commission carried out a review into heavy vehicle telematics and other technology.

The review made 16 key findings, including that forward collision warning systems can prevent between 21% and 44% of crashes and reduce the severity of injuries, fatigue and detection devices can help drivers avoid between 4% and 10% of fatal crashes, and lane departure warning systems can prevent between 4% and 15% of fatal crashes and reduce the severity of injuries.

Of course, it’s not just the heavy vehicle industry that stands to benefit; driver safety is a concern for any business that relies on drivers getting behind the wheel, whether they’re transport industry workers who drive as their primary vocation or, say, utility field workers or healthcare staff who drive as part of their job. And COVID-19, with its related

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restrictions and requirements, has done little to alleviate existing issues such as driver fatigue, which accounts for 20% to 30% of all fatal crashes on Australia’s roads.

“There are bound to be distractions such as disruptions in drivers’ personal lives – homeschooling, for instance – as well as work-related distractions like regular COVID testing,” says Mervyn Rea, head of Zurich Resilience Solutions for Australia and New Zealand. “Our work-life balance has been altered, which could also impact our circadian rhythms and thus increase our fatigue levels.”

The fact that many businesses use shared vehicles only creates an additional set of potential risks.

“If a fleet has a range of pool vehicles, the vehicle environment, ergonomics, controls, etc., are different from one make and model to another,” Rea says. “Therefore, jumping out of one vehicle type into another can increase unfamiliarity, and this could distract or confuse the driver.

“In addition, a previous driver of a vehicle may have left it unwittingly unfit for purpose for the next employee to drive – e.g. damage, low fluid levels, faulty lights/tyres, etc. We also come in different shapes and sizes, and how often do we really take the time to readjust seats and mirrors to suit us?”

The true cost of driver safety Despite the role driver safety tech can play in mitigating human error, is investment in these tools an obvious strategy for all businesses? And where there is still slow adoption, what can be done to reduce any concerns?

To start with the positive, one side effect of COVID-19 is that people of all ages are becoming more accepting of the role technology plays in our lives, Rea says.

“The COVID lockdowns and restrictions have taught us to be more tech-savvy with online banking, online shopping and QR codes to check in to locations we visit. And

ROAD FATALITIES IN AUSTRALIA While 2020 saw a drop in road fatalities compared to 2019, the figure is less impressive than it first appears. “Given the disruptions caused by COVID lockdowns and stay-at-home work orders, the number should have been lower,” says Mervyn Rea. Similarly, while the number of road fatalities has fallen steadily over the years, Rea says that when you take into account the advances in car safety technology, the stats aren’t as progressive as they could be.

“The number of people killed on our roads in 2020 is the equivalent of six fully loaded Boeing 737-800 crashes per year,” he says. “We wouldn’t tolerate that magnitude of air disaster, and even one would result in massive changes to air travel forever.”

Number of road fatalities in Australia 2019 1,195 2020 1,103 Source: Roadsafety.gov.au

“Employees often respond positively to a clearly demonstrated safety culture, and so absenteeism from work reduces, productivity increases, and staff turnover drops” Mervyn Rea, Zurich Resilience Solutions with more millennials in the workforce, there is likely to be a greater acceptance of smart, digitally biased solutions.”

Nonetheless, there is still some resistance to digital risk management – privacy is a major concern.

“There is significant pushback on this, with reluctance to use solutions such as apps on personal devices,” Rea says. “It’s a difficult debate to have. On one side, people are concerned if apps can track other sources of data from their devices, but on the other hand, we all have a responsibility towards safety.”

Another barrier to adopting technology, which is more easily addressed, is that digital

solutions can appear expensive, particularly to small businesses. However, Rea says, insurers can play a role by talking through the true cost benefits of the investment.

“Take a digital solution such as a driver behaviour app – the cost of this is, on average, $120 per year, per employee,” he says. “Let’s assume a small business has 10 drivers. That total cost is $1,200 per year. If their motor insurance excess is $500, and if we also take into account other uninsured costs associated with road crashes – absenteeism, lost productivity, continuing to pay leasing costs when the vehicle is off the road for repairs – avoiding one crash each year will more than

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SECTOR FOCUS: TRANSPORT

repay the cost of the app. In fact, by avoiding just one crash in this example, the technology may end up saving the business more money, keep its drivers safer and thus actually contribute to greater profits.”

When it comes to selecting this potentially cost-saving technology, businesses have an increasing array of options. These include everything from hard-wired telematic devices that monitor vehicle and driver behaviour through to phone apps that perform the same task and also include in-app driver coaching to improve behaviour over time.

The benefits of digital risk management solutions include ease of use, portability (“having safety in your pocket, so to speak,” says Rea), data stored in the cloud that is easily analysed, and machine learning and artificial intelligence to provide instant insights or warnings. There’s also a very human consequence to investing in digital tools, even beyond getting drivers home safe to their families at the end of a shift.

“Employees often respond positively to a clearly demonstrated safety culture, and so absenteeism from work reduces, productivity

“By helping the customer understand their total cost of crashes, we help demonstrate not only a quicker return on investment, but also how these investments can actually increase business resilience, performance and profits” Mervyn Rea, Zurich Resilience Solutions “But there are also other in-vehicle camera and facial scanning solutions such as Seeing Machines that detect and alert the early symptoms of fatigue,” Rea says.

“Then you have apps that help determine alertness, and wearable device technology like Preventure that can monitor and detect tasks that could give rise to musculoskeletal injury – e.g. getting in and out of a truck cab, load securement, etc.

“Other solutions, such as Safety Connect IT, use QR codes to ensure that operators of mobile plant complete ‘pre-start checks’ before unlocking the ignition, or that they’re adequately qualified, licensed and competent to use the item in the first place. There are even online and smart device solutions, such as Lightspace, to monitor toolbox safety briefing attendance and ensure those absent complete the briefing remotely at a later time.”

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increases, and staff turnover drops,” Rea says. “All of these benefits increase the resilience of a business and ensure they deliver their products or services to their customers on time, every time.”

The role of the insurer Rea does add a word of caution – there’s a danger that we could become too reliant on safety technology and not make our own informed risk management decisions. For a business, this can be perplexing. How do you know if you are too reliant or not reliant enough on technology? Given that digital tools significantly mitigate hazards but are not a 100% guarantee of safety, what other areas should you focus on?

This is where a good insurer and broker should come in with up-to-the-minute knowledge of the latest safety technology

TOP 5 CAUSES OF FATAL VEHICLE CRASHES Speeding

Intoxication (drugs and/or alcohol)

Failure to wear a seat belt

Driver fatigue

Distraction

Source: National Road Safety Partnership Program

and an ability to look at the bigger picture.

Rea says Zurich’s risk engineers are unique in the market, particularly when it comes to conducting semi-quantitative risk assessments of a business’s fleet operations and looking at exposures and the efficacy of management controls. They take into account technology and digital solutions that blend in with appropriate management policies and procedures.

“When we identify gaps, we make recommendations, and we keep abreast of digital and technology solutions,” Rea says. “We can provide advice on the best solutions and how to maximise return on investments made. We often support customers in pilot programs so they can determine the capabilities of these solutions for themselves.

“Finally, by helping the customer understand the total cost of crashes, we help demonstrate not only a quicker return on investment, but also how these investments can actually increase business resilience, performance and profits.”

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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

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PEOPLE

BROKER INSIGHT

Building a better brokerage Mandy and Robert Cooper founded CPR Insurance Services because they wanted to bring a more people-focused approach to the insurance industry. Eleven years later, that idea has made their brokerage a pillar of their Brisbane community

THE PUBLIC’S lack of trust in the insurance industry ranks as a top challenge for those in the business. But Mandy and Robert Cooper, directors of CPR Insurance Services, are turning that negative stereotype on its head.

The couple started their own brokerage in 2010 because they didn’t like the way the industry operated toward customers and employees. Robert was unhappy with his job as a senior account executive at a major insurance firm, which was becoming more about bringing in big business and less about the client. For Mandy, the choice was about work flexibility – at one insurance company, peers teased her for negotiating to work from home some afternoons so she could care for her two small children. When management reneged on that agreement, it was the last straw.

“They took that away from me and put pressure on me to be in the office,” Mandy recalls, adding that “my health got in the way – that was the reason I resigned; I got very sick [with] the parvovirus.”

The illness meant she could only work a few hours a day in the office. When her employer prohibited her from taking her laptop home, Mandy quit. With Robert working on the new business, both Coopers were now unemployed. But between them,

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the pair had decades of experience in senior roles across many areas of the insurance industry. They realised their secret to success could be a diligent, nurturing approach to work and personal life.

Before the days of CPR Insurance, Mandy recalls the time when a junior broker jumped in the lift with her. She pulled out a nappy wipe from her handbag.

“He said, ‘What’s that for?’ and I said, ‘That’s for your shoes because you’re not coming to see this client without cleaning your shoes.’”

Today, that broker is an account director at Aon. “It’s seeing that talent and nurturing it on the journey,” Mandy says.

There’s also Robert’s business savvy. He was an early user of social media like Facebook and LinkedIn and says he found many of his initial clients by sending letters of congratulation to new businesses – and then

those happy clients brought in others.

“There are about 100 new businesses formed each week in Brisbane, and I probably get contacted by between five and 10 of them, and I’d end up having five of them as clients,” he says. “If you really look after your customers and they really like you, they tend to refer you to other people, like their brother or sister or a friend. So I was getting all these referrals from existing clients.”

Robert also takes a serious interest in educating clients. “I started up a regular newsletter, keeping people updated with different things that were happening in the insurance industry,” he says. “It was about that time that cyber insurance started to develop, so I was letting everyone know 10 years ago about cyber risks.”

Networking with industry peers and others in the community is also a big part of what the Coopers do. There was no local

ABOUT CPR INSURANCE SERVICES Established in 2010, CPR Insurance Services provides a full range of general insurances services and also specializes in professional indemnity, D&O liability and all areas of risk management. CPR views clients as partners in business and aims to provide the best possible general and personal advice. The brokerage generally serves small to medium-sized businesses.

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FAST FACTS: CPR INSURANCE SERVICES TYPES OF COVER OFFERED Professional indemnity Public and products liability Business and office packs ISR policies D&O liability Management liability Employment practices liability Association liability Commercial and business motor insurance Home insurance Year established: 2010 Location: Brisbane

“If you really look after your customers and they really like you, they tend to refer you to other people” business group in their area of inner north Brisbane, so in 2013, the couple decided to form their own. Robert invited businesses to a monthly informal breakfast hosted by a different local café each month. The Kedron Brook Business Group was born; now, not only does everyone know all the local café owners, Robert says, but it’s also pulled the

community together.

“It’s been a long, hard slog because a lot of businesses were very self-focused originally, but they are now starting to work together,” Mandy says.

The Coopers are also heavily involved in fundraising efforts for local charities and beautification projects. “Something that’s

Number of employees: 6 Number of brokers: 3 Directors: Robert and Mandy Cooper Annual growth: 12% to 15% very strong to us is a sense of community and supporting each other,” Mandy says.

And the boost in business doesn’t hurt either, Robert adds. “As a result, a lot of people would say, ‘Robert and Mandy are insurance brokers, and we haven’t really got a relationship with our current broker’, and they’d bring their business over to us.”

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FEATURES

SECTOR FOCUS: SUSTAINABILITY

Achieving sustainability goals At a time when consumer expectations around sustainability are at an all-time high, QBE outlines how it’s helping brokers meet this lofty bar A FEW years ago, many businesses were focused on delivering shareholder value in the form of profit – usually above all else.

The world has changed. People expect more from the businesses they work for and with and the brands they consume.

“Societal expectations have changed really quickly,” says Rob Kosova, QBE’s general manager of people and risk.

In 2015, the United Nations set 17 Sustainable Development Goals (SDGs).

These goals affect us all – from a single consumer to a multinational – and we can all contribute to achieving them.

“With businesses and customers looking for solutions to support their own SDG ambitions, QBE’s commitment to sustainability and our values in supporting people, businesses and community are a logical alignment,” Kosova says. “At QBE, we help businesses better respond to change, and while we have our own plans for building sustainability, we’re also supporting our partners and customers by sharing our knowledge and insights to support their journey.”

From a broker’s perspective, initiatives that focus on these goals provide a compelling story to tell customers. QBE has launched a number of people- and risk-related initiatives that directly link the day-to-day business – and premise – of insurance and help deliver

sustainable development.

So what initiatives is QBE delivering that can help brokers achieve their own sustainability goals?

analytics to deliver a claimant-centric experience, powered by machine learning, artificial intelligence, behavioural insights and wearable devices.

Risk insights and expertise Of course, it’s far better for all concerned if incidents are reduced and prevented from happening in the first place, so QBE is harnessing the power of its claims data and working proactively with its customers and partners to deliver industry-specific risk prevention insight and expertise through the Q Risk Insights hub.

Wearable tech QBE’s partnership with wearable technology brand dorsaVI aims to help reduce the number of injuries in the workplace. The brand provides motion sensor technology that monitors postures, repetitive movements, sustained movements and muscle activity, with the aim of identifying unsafe work practices and flagging risks early.

“It’s not about the warm and fuzzy stuff anymore – it’s about making a real impact and a real difference to our society” Rob Kosova, QBE Q Academy To enable QBE to keep helping and educating customers and partners during the pandemic, the company launched an online professional development portal, Q Academy. It offers courses and training to build expertise in risk and leadership, with a host of resources to support that learning.

“Our company purpose is to give people the confidence to achieve their ambitions,” Kosova says. “We’re providing high-value courses, and it’s generated tremendous feedback.”

Claims innovation A workers’ compensation claim can be incredibly challenging for the claimant – so QBE has rebuilt its claims processes by combining empathy with innovation and

“The whole idea is to prevent an incident happening in the first place,” Kosova says.

Premiums4Good Premiums4Good channels a portion of customer premiums into investments that have social or environmental benefits, with the aim of having US$2bn of impact investments by 2025. Already, this has impacted areas such as sustainable energy, financial inclusion, social inclusion, diversity and gender, and urban and community development.

“It doesn’t cost customers anything, and it genuinely does good,” Kosova says. “It’s not about the warm and fuzzy stuff anymore – it’s about making a real impact and a real difference to our society. By partnering with QBE, we can achieve these ambitions together.”

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03/09/2021 10:15:08 am

SPECIAL REPORT

2021

CYBER INSURANCE In an era of heightened cyber exposures, brokers name the best cyber insurance partners in the Australian market

CONTENTS

PAGE

Feature article .............................................. 2 Methodology ................................................ 3 5-Star Award winners ................................. 4

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SPECIAL REPORT BUSINESS STRATEGY

5-STAR AWARDS: CYBER INSURANCE

RISING THREATS, RISING DEMAND “Cybercrime gets a huge amount of media attention, but the message doesn’t seem to be getting through to SMEs. There’s a lot of uninsured exposure among small businesses”

CYBERCRIME IS on the rise – and appearing in myriad new guises. Despite improved cybersecurity, tighter regulations, security awareness training and other measures, the digital bad guys continue to wreak havoc. The global cost of cybercrime is expected to exceed $10trn annually by 2025, according to research firm Cybersecurity Ventures. Here at home, the Australian Cyber Security Centre (ACSC) recorded nearly 60,000 cyber incident reports between July

Jaydon Burke-Douglas, ProRisk

WHAT’S MOST IMPORTANT TO BROKERS WHEN SELECTING A CYBER INSURANCE POLICY?

Very important

Important

Neutral

Unimportant

Very unimportant

First-party coverage

Claims payment/processing

Access to risk mitigation partners Underwriting expertise

Third-party coverage

Flexibility/customization of policies

Pricing 0%

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20%

40%

60%

80%

100%

2019 and June 2020 – approximately one every 10 minutes.

The scams cybercriminals are relying on today might look slightly different, but in the experience of some insurers, they’re essentially the same old tactics.

“Over the past year, we’ve seen phishing emails purporting to be from the World Health Organisation, offering important safety information on COVID-19 with malicious attachments that ultimately led to ransomware being installed on a victim’s systems,” says Philippa Davis, international cyber team leader at CFC. She adds that while ransomware remains a significant threat, it’s important for brokers to remind clients that cybercrime such as theft of funds and business email compromise has not gone away.

Davis believes COVID-19 has done a lot to raise awareness of cyber exposures, as businesses have been forced to look critically at their internal practices and transform their

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IT security (or lack thereof ) overnight. As a result, she says, CFC has seen a surge in demand for cyber policies.

Small business, big risk Heightened awareness notwithstanding, small businesses still lag behind in terms of cyber insurance uptake, says Jaydon BurkeDouglas, general counsel and product and technical manager at ProRisk.

“Cybercrime gets a huge amount of media attention, but the message doesn’t seem to be getting through to SMEs,” he says. “The bigger ASX companies are buying cyber insurance, but there’s a lot of uninsured exposure among small businesses.”

More than a third of Australian busi-

in larger attacks aimed at MSPs or cloud service providers.”

Davis points to the latest statistics, which show that more than 70% of ransomware incidents impacted companies with fewer than 1,000 people and less than $50m in revenue. “This resonates with CFC’s experience from the 2,000 cyber incidents we’ve managed in the past year,” she says.

In addition to the fallout from the cyber incident itself, regulations in Australia mean additional unsavoury consequences for businesses that fail to protect themselves adequately. The Notifiable Data Breaches Scheme, which came into force in 2018, has been something of a game-changer for the cyber insurance industry. Any company

“Small businesses are the low-hanging fruit due to their lack of security resources and vulnerability. They may not even be the target – rather collateral damage in larger attacks” Philippa Davis, CFC nesses with fewer than 100 employees don’t take proactive measures to protect themselves from cyber breaches, according to data from the Australian Small Business and Family Enterprise Ombudsman (ASBFEO).

The ACSC reports that almost half of Australian small businesses are spending less than $500 on cybersecurity per year. Yet 43% of all cybercrimes are targeted at small business, according to the ASBFEO. “Small businesses are the low-hanging fruit due to their lack of security resources and vulnerability, falling victim to first-party losses that are only financially detrimental to themselves,” Davis says. “They may not even be the target – rather collateral damage

METHODOLOGY ‘Market-leading’ is a phrase many insurance companies like to use when describing their products. Now five companies can claim that title on the back of hard market research from the people who matter most: insurance brokers.

To select the best cyber insurers for 2021, Insurance Business enlisted some of the industry’s top experts.

During a 15-week process, our research team conducted one-on-one interviews with specialist brokers and surveyed thousands more within IB’s network to gain a keen understanding of what insurance professionals think of current market offerings. Brokers were first quizzed on what features they thought were most important in a cyber insurance policy and then asked how the insurers they dealt with rated on those attributes.

Insurers were measured on the strength of their relationships with brokers, ability to handle claims, underwriting expertise and, most importantly, the strength of the individual products they provide.

46% with revenue over $3m that suffers a data breach is obligated to report it to the privacy commissioner and to notify every single person caught up in the breach. This makes a cyberattack very expensive for businesses and can damage a company’s reputation in customers’ minds.

In addition, ASIC has started to sue AFS licence holders – including banks, mortgage brokers, finance brokers and financial planners – if their security controls are not of the standard expected by the regulator. Last year, in a landmark action, ASIC commenced legal proceedings against RI Advice Group over alleged failure to take proper action to prevent cyberattacks.

of brokers said claims processing and payments are very important when choosing a cyber insurer

44% of brokers said a cyber insurer’s access to risk mitigation partners is very important

43% of brokers said underwriting expertise is very important in the cyber market

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SPECIAL REPORT BUSINESS STRATEGY

5-STAR AWARDS: CYBER INSURANCE

CYBER

2021 INSURANCE CFC Chubb DUAL Australia Emergence Insurance ProRisk

Growth opportunity With so much to lose, why do so many SMEs remain reluctant to sign up to a policy? This year’s 5-Star Cyber Insurers identified several factors. First, it’s a complex topic to understand. Most SMEs know cybersecurity is important, according to the ACSC’s 2019 Small Businesses Survey, but they face significant barriers when attempting to implement good cybersecurity practices, including a lack of dedicated IT staff and challenges in understanding and enacting security measures.

There’s also a prevalent ‘it won’t happen to me’ mindset – and the overwhelming majority of SMEs are operating on the false assumption that they’re already protected.

According to the ASBFEO, 87% of SMEs believe their business is safe from cyberattacks simply because they have anti-virus software. Last but not least, cyber insurance is an extra cost that SMEs – which have already been hit hard by the pandemic – feel they can eliminate to save money.

On that note, Burke-Douglas says insurers need to make cyber insurance pricing sustainable and reasonable for SMEs or perhaps offer incentives for signing up – but he also advises brokers to raise the topic, even if they don’t think it will lead to an immediate deal.

“Discussing cyber terms when you are 54

going in for another account, while they might not buy a policy there and then, will start the conversation,” he says.

This year’s 5-Star Cyber Insurers believe education – for both brokers and clients – is key to overcoming some of these obstacles.

Some called for more training from insurers so brokers can be more confident explaining to clients why they are vulnerable. Davis says the single most important piece of advice she would give to brokers is to explain the value of a cyber policy in a way that’s specific to each client’s business.

“Clients need to understand why they have an exposure in the first place, especially for those less obvious industries such as construction,” she says.

The easiest way for brokers to do this is to provide industry-specific claims examples and to demystify the topic by avoiding jargon. “I think the best way to explain it to our business customers is to describe it as a ‘digital fire’,” said one broker surveyed by IB. “Then businesses realise the seriousness and the need for cyber insurance.”

So how can insurers and brokers help protect clients when cybercrime is getting more sophisticated, and more and more business is being done online? While the market is hardening, with a number of insurers globally pulling out of cyber altogether, Davis points out that the well-established cyber markets are proactively seeking to prevent claims – and this signals the way forward.

“They’re using scanning tools to determine the security posture of a company as part of the underwriting process, informing clients of any potential vulnerabilities – for example, open RDP ports that may lead to a potential ransomware event or credentials being sold over the dark web – and working with their clients to remediate the problem,” she says. “In our view, the future of the class rests on cyber insurance becoming a proactive service, giving clients access to in-house cyber claims expertise and tailored risk management services.”

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AWARD SPONSORS

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03/09/2021 10:23:43 am

FRIDAY, 12 NOVEMBER 2021 • SHANGRI-LA SYDNEY The annual Insurance Business Australia Awards are back as a prestigious gala – and there’s a stellar group of excellence awardees vying for the big prizes

FOLLOWING A year like no other, the time is right to recognise the brokers, brokerages, insurers, underwriting agencies, BDMs and service providers that have once again raised the bar for Australia’s insurance industry. It’s never been more important to celebrate the great achievements of those who make this industry great – to inspire us all to continue to work hard, stay connected and, most importantly, rebound from a period of massive upheaval.

The Insurance Business Australia Awards team received an incredible response to our nationwide call for nominations. The team would like to extend a massive ‘thank you’ to those who submitted nominations, as well as to our esteemed judges for their important work in selecting the final winners.

The winners will be revealed and celebrated at the awards gala on 12 November at the Shangri-La Sydney. To reserve a table, visit ibawards.com.au or contact awards@keymedia.com.au.

Finally, Insurance Business, along with our esteemed sponsors and our publisher, Key Media, would like congratulate this year’s excellence awardees, who are revealed on the following pages.

ibawards.com.au

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03/09/2021 10:23:54 am

THE QBE AWARD FOR

BROKERAGE OF THE YEAR (20+ STAFF)

• Aviso WA Insurance Brokers • CRM Brokers • GSK Insurance Brokers • Guardian Insurance Brokers

BROKERAGE OF THE YEAR (1-5 STAFF)

• allinsure

• CPR Insurance Services

• ARMA Insurance Brokers Hunter Valley

• Crucial Insurance and Risk Advisors

• Austbrokers Coast to Coast

• Hunter Broking Group

• Austral Risk Services

• Imperium Insurance and Financial Solutions

• McLardy McShane

• AUZi Insurance

• InterRe Insurance Brokers

• Scott Winton Insurance Brokers

• Bell Partners Insurance

• Praden

• Carollo Horton & Associates

• Risk Guidance Insurance

• Shielded Insurance Brokers PROUDLY SPONSORED BY

At QBE, we’re driven by our purpose – to give people the confidence to achieve their ambitions.

We’re an international insurer and reinsurer offering a diverse portfolio of commercial, personal and specialty products, as well as risk management solutions. We employ a team of more than 11,800 people in 27 countries around the world.

Founded in Queensland in 1886, QBE’s growth, nationally and internationally, is the story of an institution that for more than 130 years has played a significant part in Australian commercial history.

We don’t simply offer insurance.

We’re all about the before and after – helping our customers to protect and prevent against the ‘what ifs’ and being there to support if anything goes wrong.

W: qbe.com/au/brokers

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BROKERAGE OF THE YEAR (6-20 STAFF)

• Stellar Insurance Brokers

• Simplex Insurance Solutions

Austbrokers Coast to Coast Winner, Brokerage of the Year (6-20 Staff), 2019 and 2020

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03/09/2021 10:24:05 am

THE CHU UNDERWRITING AGENCIES AWARD FOR

SPECIALIST BROKERAGE OF THE YEAR

BEST CUSTOMER SERVICE FROM AN INDIVIDUAL OFFICE

• AUZi Insurance

• allinsure

• Carollo Horton & Associates

• Austral Risk Services Team

• CCM Insurance Group

• AUZi Insurance

• Collective Insurance Brokers

• Bell Partners Insurance

• CRM Brokers

• Dixon Insurance (Sunshine Coast)

• Trade Risk

• Hunter Broking Group • InterRe Insurance Brokers • Scott Winton Insurance Brokers • Shielded Insurance Brokers • Trade Risk

PROUDLY SPONSORED BY

AUTHORISED REPRESENTATIVE NETWORK OF THE YEAR CHU is one of Australia’s largest and most awarded insurance underwriting agencies. CHU created the first residential strata insurance plan in Australia and started trading in Sydney in 1978.

Over 40 years later, CHU has grown to become recognised as a leading strata insurance specialist, underwriting more than 100,000 schemes across Australia.

Anne-Maree Paul Chief Customer Officer, CHU Underwriting Agencies P: 1300 361 263 E: info@chu.com.au W: chu.com.au

• Ausure • Community Broker Network • Insurance Advisernet • Marsh Advantage Insurance • McLardy McShane Partners • Oracle Group Insurance Brokers • PSC Network Insurance Partners

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BEST COMMUNITY ENGAGEMENT PROGRAM – BROKER • allinsure • AUZi Insurance • CPR Insurance Services • Insurance Advisernet Foundation • McLardy McShane

YOUNG GUN OF THE YEAR – INDEPENDENT (1-19 STAFF)

• Alishia Oliver Crucial Insurance and Risk Advisors • Belen Dalvit Bell Partners Insurance • Dean Bowen DLB Insurance & Risk Solutions/ Hardline Insurance Brokers • Hailey Burke Active Insurance Solutions • Kirsty Dowell Stellar Insurance Brokers

BEST DIGITAL STRATEGY – BROKERAGE

• Laura Porter Connect Business Insurance • Regan Pugh Elliott Insurance Brokers • Robbie Gibbs Risk Guidance Insurance

• AUZi Insurance • CCM Insurance Group

• Siobhan Wilde ARMA Insurance Brokers Hunter Valley

• FD Beck Insurance Brokers • Shielded Insurance Brokers • Trade Risk

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03/09/2021 10:24:18 am

THE AXA XL AWARD FOR

YOUNG GUN OF THE YEAR – INTERNATIONAL

YOUNG GUN OF THE YEAR – INDEPENDENT (20+ STAFF)

• Jeff Williams Gallgher

• Alison Morrissey Collective Insurance Brokers

• Laith Parissi Gallagher

• Douglas Strong Shielded Insurance Brokers

• Michael Pham Aon

• Joshua Hawkins Brookvale Insurance Brokers

• Nicole Pallavicini Marsh

• Nikita Willis SRG Group

• Taylor Burstow Willis Towers Watson

• Shane Brady McLardy McShane

• Timothy Trandafilu Aon

• Tryan Christos Interlink Insurance Brokers

PROUDLY SPONSORED BY

BROKER OF THE YEAR (1-19 STAFF) AXA XL is the P&C and specialty risk division of AXA. We’re known for solving complex risks for mid-sized companies, multinationals and even some inspirational individuals.

With speed, agility and a focus on the future, we can offer more products, greater global reach and the best talent in an agile and inclusive workspace, empowered to deliver top client service across all our lines of business – property, casualty, professional and financial lines, and specialty.

With an innovative and flexible approach to risk solutions, we partner with those who move the world forward.

P: 02 8270 1719 E: iselle.gonzalez@axaxl.com W: axaxl.com

• Dale Hansen Austbrokers Coast to Coast • Kevin Fok Archer Insurance Corp.

• Tate Harris allinsure • Tony Venning Crucial Insurance and Risk Advisors

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03/09/2021 10:24:24 am

THE QBE AWARD FOR

BROKER OF THE YEAR – AUTHORISED REPRESENTATIVE • Dave Stott, Capital Innovation Insurance Group • Gary Olbrich, GEM Insurance Brokers • Gavan Burke, Active Insurance Solutions • Jennifer Steger, Trade Risk • Josh Ryan, Hunter Broking Group • Matthew Bates, Bell Partners Insurance • Peter Chamberlain, allinsure

BROKER OF THE YEAR (20+ STAFF)

• Caroline Caldwell MGA Insurance Brokers • Joshua Scutts Shielded Insurance Brokers • Nick Daffy McLardy McShane • Sarah Dowds Marsh Australia

• Rob Langan, Bayinsure • Robbie Gibbs, Risk Guidance Insurance • Tate Harris, allinsure

BROKER OF THE YEAR – SPECIALIST

PROUDLY SPONSORED BY

• Catrina Galanti National Credit Insurance At QBE, we’re driven by our purpose – to give people the confidence to achieve their ambitions.

We’re an international insurer and reinsurer offering a diverse portfolio of commercial, personal and specialty products, as well as risk management solutions. We employ a team of more than 11,800 people in 27 countries around the world.

Founded in Queensland in 1886, QBE’s growth, nationally and internationally, is the story of an institution that for more than 130 years has played a significant part in Australian commercial history.

We don’t simply offer insurance. We’re all about the before and after – helping our customers to protect and prevent against the ‘what ifs’ and being there to support if anything goes wrong.

W: qbe.com/au/brokers

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• Gary Sim CCM Insurance Group • Jane Smith Marsh • Jennifer Steger Trade Risk • Jordyn Gilbert Zenith Insurance Services • Kristy Teh Unicorn Risk Solutions

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03/09/2021 10:24:30 am

THE BLAKE OLIVER CONSULTING AWARD FOR

AUSTRALIAN GENERAL INSURER OF THE YEAR • Berkley Insurance Australia • CGU • Chubb • Hollard • Liberty • Zurich General Insurance, Australia and New Zealand

PROUDLY SPONSORED BY

Blake Oliver Consulting is an insurance specialist consulting firm run by insurance professionals, for the insurance sector.

Though our industry experience and broad networks, we can reach out to candidates with specific and niche experience that would otherwise not be contactable in the general market. We are committed to providing tailored staffing solutions to our clients and exceptional care to candidates. We now also offer legal and IT solutions to our insurance clients.

Daniel J. Marsh Managing Director P: 0424 188 733 E: djmarsh@blakeoliver.com.au W: blakeoliver.com.au

GENERAL INSURER BDM OF THE YEAR

• Chris Emery Zurich Financial Services Australia • Craig Farmer QBE • Dion Woo Bespoke Insurance Group • Jayden Hinshaw Hollard Commercial Insurance • Melissa La Spina Hollard Commercial Insurance

BEST COMMUNITY ENGAGEMENT PROGRAM – INSURER • AIG • Allianz Australia • Chubb • DUAL Australia • IAG • icare • NTI • Zurich Australian Insurance

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03/09/2021 10:24:35 am

THE UNDERWRITING AGENCIES COUNCIL AWARD FOR

THE UNDERWRITING AGENCIES COUNCIL AWARD FOR

UNDERWRITING AGENCY BDM OF THE YEAR

AUSTRALIAN UNDERWRITING AGENCY OF THE YEAR

• Chris Varkoly ProRisk

• About Underwriting

• Con Stoitsis Steadfast Underwriting Agencies • Craig Stanley CHU Underwriting Agencies • James Lee Emergence Insurance

• Agile Underwriting Services • Blue Zebra Insurance • CHU Underwriting Agencies • Community Underwriting • DUAL

• James Rogers GT Insurance

• Emergence Insurance

• Trang Ha Agile Underwriting Services

• Tego Insurance

• ProRisk

PROUDLY SPONSORED BY

The Underwriting Agencies Council (UAC) is the peak body for Australian underwriting agencies, who write annual GWP of more than $6.5bn.

UAC serves members’ interests through professional development events, broker expos to showcase members’ specialist products, sector-specific marketing campaigns, and advocacy with government and industry bodies.

UAC has more than 100 agency members, supported by 57 business service members.

William Legge General Manager P: 0409 302 423 E: williamlegge@uac.org.au W: uac.org.au

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03/09/2021 10:24:42 am

THE AAMC AWARD FOR

THE WILBUR AWARD FOR

GENERAL INSURER CLAIMS TEAM OF THE YEAR

UNDERWRITING AGENCY CLAIMS TEAM OF THE YEAR

• Allianz Australia

• AM&T

• Berkley Insurance Australia

• CHU Underwriting Agencies

• CGU

• Emergence Insurance

• Chubb

• GT Insurance

• Zurich Financial Services Australia

• MECON Insurance • ProRisk • Woodina Underwriting

PROUDLY SPONSORED BY

PROUDLY SPONSORED BY

AAMC is a motor claims specialist providing a range of services to the Australian insurance, broking and motor fleet industries. AAMC is Australia’s largest provider of independent motor accident management and loss assessing services across all sectors, including passenger vehicle, heavy commercial, motorcycle, caravan and marine craft.

AAMC has been providing tailored services to some of Australia’s largest and most prominent personal lines and commercial insurers for over 15 years and specialises in delivering cost, quality and timeliness outcomes in motor claims for their clients.

Wilbur’s suite of modular and connectable platforms drives seamless claim experiences from start to finish. With flexibility and connection at its core, Wilbur’s Claim Suite provides better outcomes for less investment. From the seen to the unforeseen, Wilbur helps you manage your claims, your way.

P: 1300 743 673 E: hello@wilbur.io W: wilbur.io

W: aamcommercial.com.au

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03/09/2021 10:24:48 am

THE DUCK CREEK TECHNOLOGIES AWARD FOR

BEST DIGITAL STRATEGY – INSURER

BEST SERVICE PROVIDER

• AIG

• BizCover

• Blue Zebra Insurance

• Claim Central Consolidated

• DUAL Australia

• DXC Technology

• High Street Underwriting Agency

• FM Global

• ProRisk • QBE • Vero

PROUDLY SPONSORED BY

Duck Creek Technologies (NASDAQ: DCT) is a leading provider of core system solutions to the P&C and general insurance industry.

By accessing Duck Creek OnDemand, the company’s enterprise software as a service solution, insurers are able to navigate uncertainty and capture market opportunities faster than their competitors. Duck Creek’s functionally rich solutions are available on a standalone basis or as a full suite, and all are available via Duck Creek OnDemand.

Ava Emdadian Marketing Manager, Asia-Pacific E: ava.emdadian@duckcreek.com P: 02 9054 2614 W: duckcreek.com

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AUSTRALIAN BROKERAGE OF THE YEAR

TO BE ANNOUNCED ON THE NIGHT …

This award recognises the most outstanding brokerage business headquartered and operated in Australia. The finalists for this category will be drawn from the winners of the following categories: • Brokerage of the Year (20+ Staff) • Brokerage of the Year (6-20 Staff) • Brokerage of the Year (1-5 Staff) • Specialist Brokerage of the Year

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03/09/2021 10:24:55 am

AUSTRALIAN BROKER OF THE YEAR

AUSTRALIAN YOUNG GUN OF THE YEAR

TO BE ANNOUNCED ON THE NIGHT …

TO BE ANNOUNCED ON THE NIGHT …

This award recognises the most outstanding broker working in the Australian insurance industry. The finalists for this category will be drawn from the winners of the following categories:

This award recognises the most outstanding broker under the age of 35. The finalists for this category will be drawn from the winners of the following categories:

• Broker of the Year – Independent (20+ Staff) • Broker of the Year – Independent (1-19 Staff)

• Young Gun of the Year – Independent (1-19 Staff) • Young Gun of the Year – Independent (20+ Staff) • Young Gun of the Year – International

• Broker of the Year – Specialist • Broker of the Year – Authorised Representative

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03/09/2021 10:25:00 am

A LOOK BACK: THE 2020 AWARD WINNERS Australian Broker of the Year Max Cuzzocrea, Maxton Insurance Brokers

Australian Brokerage of the Year Scott Winton Insurance Brokers

Australian Young Gun of the Year Joshua Scutts, Shielded Insurance Brokers

The QBE Award for Brokerage of the Year (20+ Staff) Scott Winton Insurance Brokers

Brokerage of the Year (6-20 Staff) Austbrokers Coast to Coast

Brokerage of the Year (1-5 Staff) CPR Insurance Services

Specialist Brokerage of the Year CCM Insurance Group

Best Customer Service from an Individual Office Scott Winton Insurance Brokers

Authorised Representative Network of the Year Insurance Advisernet Australia

Best Community Engagement Program – Broker allinsure

Best Digital Strategy – Brokerage AUZi Insurance

Young Gun of the Year – Independent (1-19 Staff) Joshua Scutts, Shielded Insurance Brokers

Young Gun of the Year – Independent (20+ Staff) Nick Daffy, McLardy McShane

The AXA XL Award for Young Gun of the Year – International Caleb Richards, Gallagher

Broker of the Year – Independent (1-19 Staff) Max Cuzzocrea, Maxton Insurance Brokers

Broker of the Year – Independent (20+ Staff) Jesse Thorp, Adroit Insurance & Risk

The Redkite Award for Broker of the Year – Specialist Ryan Mansom, Gallagher

Broker of the Year – Authorised Representative Peter Chamberlain, allinsure

General Insurer BDM of the Year Gordana Bailey, Allianz Australia

The Underwriting Agencies Council Award for Underwriting Agency BDM of the Year Katrina Johnson, CHU Underwriting Agencies

The Blake Oliver Consulting Award for Australian General Insurer of the Year CGU Insurance

The Underwriting Agencies Council Award for Australian Underwriting Agency of the Year ProRisk

The 360Globalnet Award for General Insurer Claims Team of the Year AXA XL

Underwriting Agency Claims Team of the Year GT Insurance

The Bridge International Award for Best Digital Strategy – General Insurer Vero

Best Digital Strategy – Underwriting Agency Blue Zebra Insurance

The Morse Building Consultancy Award for Best Community Engagement Program – Insurer IAG

Best Service Provider EMLife

CELEBRATE YOUR SUCCESS! Join the highly anticipated Insurance Business Australia Awards gala on 12 November at the Shangri-La Sydney, where we’ll reveal the big winners and celebrate the industry’s successes over an incredibly challenging year.

For table reservations or sponsorship opportunities, visit ibawards.com.au or contact awards@keymedia.com.au

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03/09/2021 10:25:05 am

FEATURES

PRODUCTIVITY

Ditch your to-do list Feeling buried under a to-do list that will never be done? You’re not alone. Aytekin Tank explains why you’re better off without it THERE’S A horror story out there. Man is feeling overwhelmed, begins compiling a to-do list. Three bullets turn into 10. Ten bullets turn into 20. Moments later, he finds himself in hand-to-hand combat with a to-do list so long and so vast it resembles the spiral-

ling tentacles of a giant squid.

He loads himself up with enough caffeine to fuel an entire city and begins his slow, tedious descent to the bottom, crossing each line off the to-do list one at a time. Shortly into his battle, he makes a terrifying reali-

sation: The to-do list is like a regenerating monster right out of a terror flick – for each line he crosses off, another three lines appear at the bottom.

He screams. He jumps out of his office window. Thankfully, he is on the first floor, so he essentially just steps into a large shrub, scaring a small family of opossums. As he begins to sob hysterically, he hears the unravelling of the wretched to-do list drawing ever closer. He turns, it envelops him, then pulls him back into the deep, dark depths of his office. He is consumed by a monster of his own creation.

Race to the bottom Nearly all of us have fallen victim to the endless to-do list at least once in our lives.

After all, the go-to piece of advice we’ve been given since grade school when we’re feeling overwhelmed is to “make a list and start

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FEATURES

PRODUCTIVITY

crossing things off.”

While it sounds lovely in theory, once we set off on our to-do writing journey, we quickly discover a major problem. In our race to the bottom of the list, we realise there is no bottom. This fascinating phenomenon, along with a handful of others, is what makes to-do lists so incredibly unproductive. Let me explain.

We are terrible at estimating how long tasks take. Elon Musk is arguably one of the most brilliant minds alive today, yet even he has an issue with underestimating how long a task may take. Time and time again, he has set a date for the release of a new model or a production number. And time and time again, he has missed the deadline.

optimistically assume most of the day’s tasks will take less time than they’ll actually take.

And, in our caffeine-fuelled to-do-list scribbling, we load up the day with lengthy tasks we think we can get done in a few minutes.

This, of course, causes the to-do list to roll into tomorrow … which brings me to my next point: When was the last time you actually crossed everything off your to-do list?

In addition to horrible time estimation, the reason to-do lists roll into the next day is they place us into a mindset where everything must go on the list, regardless of the level of impact it has on our day – or how much value it adds.

In many ways, to-do lists cause us to be overly proactive in our thinking. Which, in turn, causes us to put a greater emphasis on

To-do lists place us into a mindset where everything must go on the list, regardless of the level of impact it has on our day – or how much value it adds In an interview with The Washington Post, Musk said, “I think I do have, like, an issue with time … I’m a naturally optimistic person. I wouldn’t have cars or rockets if I wasn’t. I’m trying to recalibrate as much as possible.”

If you ask his brother, Kimbal, this complicated relationship with time has been present since childhood. When they were children, Kimbal Musk (who currently sits on Tesla’s board) would actually lie to his older brother about the time the school bus would arrive, knowing that Elon would show up late.

Elon Musk isn’t the only adult alive today who grew up missing the bus and still suffers from lingering time estimation problems. A recent study found that only 17% of the population can accurately estimate the time something will take.

With to-do lists, what happens is that we

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tasks that, in the broader scheme of things, aren’t that important.

In addition, they also hinder us from feeling a sense of completion with our day and our work. Nobody who trudges home with a half-completed to-do list feels like they owned the day. Instead, they feel like the day owned them.

To-do lists also allow us to avoid the most important tasks of the day – they aren’t unlike email in that way. Take a look at the to-do list I put together below as an example.

Let’s pretend it belongs to a sales professional who works for a technology startup.

• Get email inbox to zero • Catch up on Slack messages • Follow up with Paul about lunch tomorrow • Stop by the supermarket

• Meet with the marketing team for a brainstorming session • Make 50 cold calls to potential leads • Do a couple loads of laundry • Clean the house Now, it doesn’t take a productivity guru to recognise the most important task on the list above is to “make 50 cold calls to potential leads.” Sure, cleaning the house, doing the laundry, grabbing groceries, following up with Paul and managing your email inbox might be nice, but they aren’t going to create the most impact for the day. If you’re a sales professional (where you get paid to make sales), you better make sure you’re knocking out your 50 cold calls for the day.

Many times people use to-do lists to avoid doing the things they don’t want to do. Which is unfortunate, considering that the things we don’t want to do tend to be the things we actually need to be doing.

To-do lists’ better-looking brother Scheduling works differently for everyone.

If to-do lists work well for you, keep making them. However, I would like to offer an alternative. I call it the ‘hunter’ strategy.

Long ago, before we had a fridge full of food within arm’s reach at all hours of the day, people survived by hunting. If the hunter made a successful hunt that day, his family would eat. If not, they wouldn’t. It was that simple.

He didn’t have time to check email, attend time-sucking meetings or send follow-up emails. And he certainly didn’t have time to make to-do lists. No, he had to wake up every single day with one goal in mind: to make a successful hunt.

When it comes to scheduling, this is a great mindset to have. Instead of writing down dozens of tasks that you need to get done each day, choose one that must get done and will deliver the most impact.

In Gary Keller’s best-selling book, The

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Instead of writing down dozens of tasks that you need to get done each day, choose one that must get done and will deliver the most impact One Thing, he argues that “long hours spent checking off a to-do list and ending the day with a full trash can and a clean desk are not virtuous and have nothing to do with success.

Instead of a to-do list, you need a success list – a list that is purposefully created around extraordinary results.”

While this concept might seem a bit abstract, executing it is simple. You begin by thinking about the one thing you can accomplish today that would have the most impact.

If you’re having trouble thinking of some-

thing, I’ll give you a hint – it’s usually the thing you least want to do.

Once you’ve thought about this thing, I recommend buying a fat stack of sticky notes and keeping them in your desk. When you walk into your office, pull one of those sticky notes out and write down the one big high-impact goal you would like to achieve for the day. Put the sticky note somewhere on your laptop and start working.

Anytime you feel your mind start to wander or the urge to mindlessly check email

well up inside of you, stop. Look at your sticky note. Then refocus on the day’s hunt.

You can always go back to executing other low-priority or operational tasks once you’re done with the day’s hunt.

Practise this strategy for a few weeks with the goal to cross off the one thing on your sticky note each and every day. Once those few weeks are up, stop and reflect. Do you feel more fulfilled? Do you feel like you’re making more of an impact?

If the answer is yes, keep on hunting.

Aytekin Tank is the founder and CEO of JotForm, an online form creation software with millions of users worldwide. A developer by trade but writer by heart, Tank shares stories about how he exponentially grew his company without receiving any outside funding. For more information, visit jotform.com.

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PEOPLE

OTHER LIFE

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

That’s O’Halloran after a 2km training swim at Bondi Beach

2015

Year O’Halloran began fundraising for the Can Too Foundation

$18,000 Total amount she’s raised for the foundation so far

2

Number of half marathons O’Halloran did before switching to swimming

SWIMMING FOR A CAUSE Berkshire Hathaway Specialty Insurance’s Theresa O’Halloran frequently takes to the open water to raise funds for cancer research WHEN SHE’S not busy serving as operations head for Australasia at Berkshire Hathaway Specialty Insurance, Theresa O’Halloran spends her time raising funds for cancer research charity Can Too Foundation through fitness challenges – and she seems to have found her niche in open-water swimming.

“My first events were running events,

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but I was no good at running, so I made the switch to ocean swimming,” she says. “The catch was I didn’t know how to swim and I had to learn first, so aged 40, I started swimming lessons. Since then, I have completed a number of swims for Can Too, including the 2km Bondi Classic, 2.5km Coogee Island Challenge and 3km Big Swim from Palm Beach to Whale Beach.”

For O’Halloran, it’s not just about the physical challenge – her efforts also have deep personal meaning. “It’s 10 years now since my youngest nephew was diagnosed with a terminal cancer,” she says. “I wanted to do what I could to help make sure that one day other families wouldn’t go through the same experience, but it turns out that I get much more out of it than I give.”

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EXECUTIVE INSIGHTS SERIES

CYBER 2021 What cyber trends and threats do brokers need to be on top of right now? IB finds out

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Different Breed in Insurance Different Breed in Cyber

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EXECUTIVE INSIGHTS SERIES

CYBER INSURANCE

CYBER INSIGHTS 2021 Insurance Business takes a closer look at some of the most complex cyber issues to emerge so far in 2021 CYBER RISK is everywhere. It’s an enterprise problem that can trigger a string of losses well beyond the technology or systems that were initially compromised.

Cyber events can result in business interruption (both primary and contingent), productivity loss, reputational damage, physical damage, and significant legal repercussions and recovery expenses. It’s no wonder the scale and frequency of cyber insurance losses continue to soar.

Ransomware is arguably the most pressing issue the cyber insurance community is dealing with today. This variation of malware allows hackers to lock businesses out of their systems until they pay a ransom, usually in cryptocurrency. In recent years, there has been a significant uptick in the frequency and severity of ransomware attacks, impacting businesses of all sizes and in all sectors. Hackers have grown more sophisticated and targeted in their attacks, aiming for larger organisations that can afford bigger ransoms.

In the past five years, the average ransom demand has shot up from US$15,000 to US$175,000, according to the latest Ransomware Spotlight Report from

NetDiligence. Furthermore, total ransom demands crossed the US$1m threshold in 2018, the US$3m threshold in 2019, and publicly available data indicates that they surpassed US$50m in 2020, although this was likely negotiated down.

The ransomware headache doesn’t stop there. In 2020, a new wave of ransomware attacks known as ‘double extortion’ hit the market. With these attacks, threat actors are maximising their chance of making a profit by threatening the victim with an additional abuse of the information they’ve encrypted, such as selling or auctioning it.

In this fast-paced and ever-changing risk landscape, cyber insurers have reacted by seeking more rate and shoring up their underwriting guidelines to control their costs and protect their books. Some have even started sub-limiting ransomware and applying coinsurance provisions, forcing insureds to share more of the risk.

The firming of the market is having a big impact on brokers. Not only do they have to work harder to secure adequate coverage for clients, but they also have to educate themselves and continue to

develop technical skills around cybersecurity controls and best-practice cyber risk mitigation.

Proactive cybersecurity controls are absolutely essential in today’s evolving threat landscape. Many would argue that cyber insurance should not be seen simply as a financial risk transfer product; rather, it is a holistic risk management solution that protects not only insureds, but also the cyber insurance market itself. As rates rise, coverage constricts and cyber threats boom, we will only succeed with an ‘all in this together’ approach.

With that in mind, IB reached out to four cyber experts to explore the key themes and questions in the sector, from best practices for risk mitigation to up-and-coming cyber threats. Through their insights, we hope to provide brokers with an enhanced understanding of the current state of the cyber insurance market.

Bethan Moorcraft Senior editor Insurance Business

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CYBER INSURANCE MEET THE EXPERTS Richard Smith has extensive experience in Richard Smith both the London and Head of cyber Australian markets in senior broking and Blue Zebra Insurance underwriting roles. He has advised commercial businesses on their cyber insurance requirements, founded a digital cyber insurance underwriting business and is now head of cyber at Blue Zebra, underwriting on behalf of certain underwriters at Lloyd’s.

Lindsey Nelson oversees the global distribution Lindsey Nelson strategy across CFC’s cyber portfolio, undertakes Cyber development leader key account management CFC and provides in-depth training within the business line. Nelson has more than a decade of experience underwriting cyber and technology risks, which has put her in demand for a wide range of conferences, and she continues to play an active role in underwriting.

Jeffrey Gonlin has more than 35 years of Jeffrey Gonlin insurance and reinsurance Head of product and experience. He began his underwriting career by working on Emergence Insurance Fortune 500 accounts with complex exposures, then moved to the excess & surplus lines market, where he developed bespoke solutions. Before joining Emergence in 2016, he was with General Re as a regional chief underwriter for casualty facultative and program business across the Asia-Pacific region. Gonlin has been the architect of the last five Emergence policy wording enhancements and new solutions.

Mark Doepel has more than 30 years of Mark Doepel experience in the areas of professional indemnity Partner Sparke Helmore Lawyers litigation, D&O claims, financial lines litigation and all aspects of reinsurance practice. Having been involved in several significant cyber risk incidents, Doepel assists his clients to respond to cyber incidents, represents them in subsequent disputes and investigations, and provides advice on coverage and indemnity/ claims issues. He has extensive experience working with local and international insurers on policy wordings, reinsurance treaties, coverage and localisation.

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How has COVID-19 impacted the cyber landscape, and what should brokers be aware of in 2021?

Jeffrey Gonlin: COVID-19 accelerated a trend that was already underway. It has shown businesses that remote work is not only possible, but likely to remain a normal part of business as usual post-COVID-19.

This places more emphasis on security of the home and remote access systems. A company’s employees could be anywhere, and this is a difficult risk to quantify.

Whether your data or systems were already in the cloud or in the process of transitioning to it, the old notion of ‘protect your perimeter’ looks as dated as moats around castles. What made sense in the days of predominantly on-premises IT just doesn’t cut it anymore.

Endpoint protection is still necessary, but approaches like ‘zero trust’ are more suited to this decentralised world.

Behavioural-based approaches have also increased in importance, not just in terms of humans, but in terms of knowing how and with whom your IT stack is operating.

The rapid shift from office to anywhere challenges CISOs and their teams to shift their security mindset to a more holistic

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approach – one that encompasses the whole of the kill chain, not just the start or some parts of it. Cybersecurity was becoming more challenging anyway; if it wasn’t already a priority, it’s now an imperative.

Finally, COVID-19 lockdowns have given businesses a taste of what it’s like to suffer business interruption. The uncertainty is unnerving: not knowing when it will hit – or worse, not knowing if it will kill your business before it ends.

Lindsey Nelson: COVID-19 has increased awareness, as businesses were forced to look critically at internal practices and transform IT security – or lack thereof – in the shift to remote working. We’ve seen a surge in demand for cyber policies, not only due to the perceived increased exposure, but in response to rapidly hardening market conditions with limited available capacity.

We see two main trends to watch out for.

First, cyber events are increasingly a small business issue. Recent statistics show that more than 70% of ransomware incidents impact companies with fewer than 1,000 people and less than $50m in revenue. This resonates with CFC’s cyber claims experi-

ence. Small businesses are the low-hanging fruit due to their lack of security resources and vulnerability or becoming collateral damage in larger attacks aimed at MSPs or cloud service providers.

of insurance; we’ve got countless examples of clients that we’ve identified as being compromised, reached out to and remediated, all before they’ve even realised they needed to file a claim. Our whole philosophy is that a business will be less of a risk as a cyber policyholder than they will be uninsured.

Richard Smith: COVID has created increased exposures through the heightened demand for remote working, but these have already been well documented. I think some of the more interesting aspects of COVID are the potential longer-term macro implications on the cyber landscape.

The insular nature of COVID has resulted in a retreat from globalisation, which has exacerbated existing geopolitical tensions. Western governments are facing calls to localise supply chains, and this, along with criticism of China’s handling of the COVID outbreak, may mean China becomes more assertive in collecting intelligence on intellectual property assets.

COVID has also impacted the revenues of governments and commercial enterprises alike. As government revenues take

“The old notion of ‘protect your perimeter’ looks as dated as moats around castles. What made sense in the days of predominantly on-premises IT just doesn’t cut it anymore” Jeffrey Gonlin, Emergence Insurance Second, cyber insurance and security services are increasingly merging into one. The cyber market is going through a lot of change, and it’s clear insurers will struggle to compete if they don’t have a fully integrated suite of risk management services built into their product.

CFC has a cyber threat analysis team who continuously monitor policyholders, scanning for external vulnerabilities and informing clients where we have detected a match or compromise. We believe that this function truly represents the future

a hit as a result of recession, the connection between nation-state activity and cybercriminal activity is likely to grow.

For commercial enterprises, the economic effects of the pandemic may cause cybersecurity spending to decrease as recession hits.

Mark Doepel: Save for in a handful of specific areas – for example, the introduction of federal legislation governing the COVIDSafe app and how the handling of COVID-19-related personal information fits within the existing legal framework –

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EXECUTIVE INSIGHTS SERIES

CYBER INSURANCE type cover. Brokers should re-evaluate the appropriateness of their clients’ cyber cover each policy anniversary and continue to educate themselves on the kinds of risks arising in the space.

What are the top cybersecurity challenges facing Australian businesses right now? Which threats are moving to the forefront?

Richard Smith: The big challenge

“The big challenge facing many Australian businesses is the ‘how’. There is a growing awareness of the need to protect themselves from external threats, but the pathway can be unclear and confusing” Richard Smith, Blue Zebra Insurance COVID-19 is but one of many drivers of the rapidly shifting cyber and privacy law landscape in Australia. However, its impact on companies themselves cannot be understated. It has forced many to shift their focus from longer-term information technology projects and day-to-day functions to supporting and securing remote workforces at scale.

It has also, unsurprisingly, generated a swathe of COVID-19-themed phishing attacks and malicious applications, which leverage pandemic-related concerns, and new attack surfaces for would-be attackers to exploit. As a result, COVID-19 likely will continue to pressure companies’ resources, divert them from less essential information technology and security functions, and impact on cyber claims for the foreseeable future.

More broadly, another key point to emphasise for 2021 and beyond is that cyber risk is incredibly dynamic. It will continue to evolve in each policy period, so it does not lend itself to ‘set and forget’

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facing many Australian businesses is the ‘how’. There is a growing awareness of the need to protect themselves from external threats, but the pathway can be unclear and confusing. Small businesses need practical, cost-efficient solutions and don’t require enterprise-level risk strategies. The Essential Eight is a good framework for businesses to start from, but they require the right expertise to guide them through implementation.

In very recent times, we have experienced the SolarWinds and Microsoft Exchange server hacks and the Kaseya ransomware attack. The instigators of these attacks have been state-based actors and foreign crime groups. These supply chain attacks target a particular victim’s computer network and then slip malware into the software updates the company installs on its customers’ systems. This demonstrates that weaknesses in supplier systems can automatically become weaknesses for downstream customers. These three attacks have had a significant impact on Australian businesses – both corporates and SMEs – and they very much demonstrate the global nature of attacks and the reliance that Australian businesses have on their service providers.

Mark Doepel: Overwhelmingly, the three kinds of incidents we most frequently advise on are ransomware attacks, invoicing frauds and business email compromise. The initial attack vector for all three often involves some form of credential stealing via phishing campaigns and/or human error. For ransomware in particular, another frequently seen attack

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c

*

So capable We extinguish cyber threats day in, day out.

Our digital firefighters got over 2,000 businesses back online in the last 12 months.

*Not an actual CFC cyber claims handler

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EXECUTIVE INSIGHTS SERIES

CYBER INSURANCE vector is remote desktop protocol, or RDP. All require their own unique treatment, but in terms of incident response costs and business-as-usual impact, ransomware attacks are the clear frontrunner. In part, this is because ransomware attacks ordinarily require a significant diversion of internal resources, impact day-to-day operations, involve the exfiltration and threatened release of confidential and personal information, garner media attention, and can trigger a number of different legal issues relating to, for example, privacy and contractual notification obligations, sanctions, engaging with law enforcement and, depending on the industry, licensing and

“While ransomware undoubtedly remains a significant threat and dominates headlines, it’s important that brokers remind their clients that theft of funds and business email compromise have not gone away” Lindsey Nelson, CFC other regulatory reporting obligations.

We are also more regularly seeing threat actors gain access to our clients’ systems via aged or obsolete servers that are still connected to a network, not inventoried and invariably unpatched. The feedback we receive from our forensic service providers is that many of these incidents could have been avoided by implementing basic information security protocols and policies, including the appropriate deployment of multi-factor authentication, decommissioning end-of-life software or hardware, training, and enforcing complex passwords.

Lindsey Nelson: Ultimately, cybercriminals go after businesses that are vulnerable. The combination of IT budget constraints in a challenging economic environment for business and the growing sophistication of threat actors is creating the perfect storm for cybercrime.

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At the same time, threat actors are capitalising on remote and hybrid workforces and the susceptibility of employee and human error, enabling them to override any IT security solutions that do work in practice. This is where brokers really need to press the value that cyber insurance delivers – providing businesses with access to cybersecurity professionals who can complement and work hand-in-hand with any in-house IT resource.

The insurance market is responding almost exclusively to the severity of ransomware events that have affected businesses around the world – albeit Australia has been disproportionately affected in comparison to our global policyholder base as a result of basic security controls not being implemented. As an example, towards the end of 2020, we experienced 10 fewer ransomware attacks by frequency in one quarter; however, we incurred six times the cost of the same quarter the year prior.

While ransomware undoubtedly remains a significant threat and dominates headlines, it’s important that brokers remind their clients that theft of funds and business email compromise have not gone away. Nor should reputational harm be ignored. It’s become a growing issue as regulations such as the Notifiable Data Breaches scheme oblige businesses to notify customers when their data has been compromised. Reputational harm can include greater and more long-term costs such as cancelled contracts or customers taking their business elsewhere, yet it’s a threat and a cost that few talk about when discussing cyber policies.

Jeffrey Gonlin: Australian businesses are facing technical, financial, operational, legal and regulatory challenges in cybersecurity right now. The cost of cybercrime is growing rapidly due to increased sophistication of attack vectors and increased severity of cyberattacks. Cyberattacks are targeting entire industries and supply chains, forcing businesses to rethink how they manage information. Information governance, particularly in light of

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What’s your key area of focus in the insurance ecosystem?

To bring innovation through technology to enable brokers to maintain and grow their personal lines and commercial portfolios. We extensively use Big Data to assist with our underwriting assessment and to pre-populate question sets to assist brokers. We also enable extensive API connectivity to brokers where applicable to optimise efficiencies.

How does your cyber insurance product work?

Blue Zebra transacts with more than 400 broking businesses, and over 1,000 individual brokers visit our Zebra Lounge platform on a daily basis. These brokers can easily access our cyber insurance solution, which has been designed with simplicity in mind.

It has broad coverage to meet the cyber insurance requirements of SMEs, simplicity of policy structure to assist brokers – for example, all covers to the full limit of liability, except criminal financial loss cover – a radically fast online application process and onshore emergency response capability in partnership with Wotton + Kearney.

Colin Fagen, managing director

CYBER EXPERT

BLUE ZEBRA INSURANCE Year founded: 2017 Head office: Sydney

Tell us about Blue Zebra.

Blue Zebra’s core ethos is to support the broker advice model, initially providing personal lines products – home, motor and landlords – to the Australian broker market and now supported by our range of commercial products: business package,

commercial motor, personal accident and sickness, and cyber.

Our nimble and adaptive approach is complemented by our strong relationships on the ground throughout the Australian broker market. The use of modern technology allows us to successfully launch new products to market in 60-day timeframes. During COVID, we have lost no momentum with our expansion plans, and excitingly, we have recently launched our home, motor and landlords personal lines products on the Steadfast SCTP platform.

What problem are you solving in the cyber insurance space?

Consistent with other Blue Zebra products, our cyber solution is designed to help brokers grow their portfolios.

Prior to the full launch of our cyber product, we facilitated a pilot program, during which we listened to brokers and their cyber requirements. We have created a slick, straightforward online application process that contains a minimal question set while providing extensive cyber coverage. This is achieved through our underwriting algorithm, which is built on assumptions and methodologies to enable both underwriting assessment and speed of application.

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EXECUTIVE INSIGHTS SERIES

CYBER INSURANCE increased regulatory scrutiny and a legislative shift to make boards of directors liable for cybersecurity, is making companies rethink the way they have traditionally operated.

Companies have been storing massive amounts of historical personally identifiable information, sometimes in insecure legacy systems, but often in unsegregated and unencrypted insecure systems such as email. This has to change – data needs to be curated, not hoarded!

Australian governments at all levels are very mindful that businesses need to monitor and protect against cyber risk to make Australia’s digital economy more resilient to cybersecurity threats. This includes making employees an effective last line of defence by raising staff awareness so they can fend effectively against socially engineered attacks such as email phishing.

But there’s only so much government can do. Businesses have to own this. And increasingly, they have no other option.

As cyber underwriters become increasingly selective and raise minimum security standards, the days of transferring

“The days of transferring poorly managed cyber risk to the insurance industry at below-cost premiums are over” Jeffrey Gonlin, Emergence Insurance

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poorly managed cyber risk to the insurance industry at below-cost premiums are over.

Budgets are tight, but skimping on cybersecurity isn’t the solution. Striking the right balance is a real challenge.

How have silent cyber mandates impacted the market? Where does cyber as a peril properly reside?

Mark Doepel: Silent, or non-affirmative, cyber – terms increasingly used to describe cyber-related losses that unintentionally fall for cover under non-cyber policies – has been a topic of considerable discussion and concern in the last several years.

Though regulators and the market seem generally aligned on the need for certainty around whether cyber-related losses are or are not covered by non-cyber policies, how such certainty is achieved in practice varies from insurer to insurer. For example, we have seen revised policy definitions, including firming up the meanings of ‘physical damage’ and ‘[tangible] property’; express inclusions or exclusions – more so the latter – for cyber-related cover; and updated underwriting guidelines. Ironically, those varied responses to the issue are, at times, creating certainty in one place at the expense of ambiguity elsewhere.

Interestingly, we have also observed reinsurers driving down underlying policy changes via narrowed reinsurance treaty terms. In some cases, these changes are inadvertently causing reinsurance gaps for covers that might otherwise be fairly uncontroversial from a reinsurance standpoint – for example, material damage, business interruption, machinery breakdown and optional data restoration costs in property-type covers.

Clarity of cover is critically important.

Non-affirmative cyber cover risks uncertainty for policyholders and insurers alike, giving rise to an increased risk of legal disputes and unintended outcomes. As lawyers, we enjoy the odd tricky coverage dispute, but not when it could easily have been headed off at the outset with clear drafting and expectations by policyholders and their insurers.

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access to 20 years of cyber claims experience, the largest in-house incident response team in the market and an award-winning cyber incident response mobile app. Our technical expertise and real-world claims handling experience can make the difference between a business suffering catastrophic loss or getting back online quickly.

What problem are you solving in the cyber insurance space?

Dave Walsh, group CEO

CYBER EXPERT

CFC Year founded: 1999 Head office: London

Tell us about CFC. CFC is a specialist insurance provider, a pioneer in emerging risk and a market leader in cyber. Our global insurance platform uses cutting-edge technology and data science to deliver smarter, faster underwriting and protect customers from today’s most critical business risks.

What’s your key area of focus in the insurance ecosystem?

We focus on specialty lines and emerging risks and the modern exposures brought about by the intersection of business and technology – for example, cyber, intellectual property, technology, digital health and new media.

How does your cyber insurance product work?

As a pioneer of cyber insurance, having launched our first product 20 years ago, we continually enhance our product suite to offer comprehensive cover for businesses of all sizes against the growing threats of the digital age.

Our private enterprise product combines data breach, cybercrime and business interruption cover tailored for SME organisations. Built with global businesses in mind, our large corporate policy is designed to protect their balance sheets against the impact of catastrophic system failures and major security breaches. Our cyber excess policy offers extra peace of mind for businesses that want to top up the cover and limits supplied by their primary policy.

However, setting the benchmark in cyber insurance is not simply about offering the best product. When brokers source a cyber policy for their clients from CFC, they’re providing them with

The cyber insurance market is at the most challenging point in its history due to a marked increase in the severity of losses, driven almost entirely by ransomware. We have a central role to play in not only being the first line of defence for our customers, but also in identifying the next big threats and ensuring that our customers are protected before the worst happens, not just afterwards.

Leveraging our proprietary data enrichment platform and threat intelligence feeds, along with insights from active cyber insurance claims, we can now notify policyholders of critical, time-sensitive threats and vulnerabilities in real time via our cyber incident response app. The app also boasts an Ask the Expert service, enabling customers to access our specialist team for help with cyber risk mitigation and general cybersecurity questions, including best practices for their business, as well as compliance and legal advice.

Cyber insurers are arguably better positioned than anyone else to confirm which vulnerabilities have the most catastrophic impacts and can make sure that their customers receive the highest-priority threat alerts to avert the most dangerous attacks. So at CFC, we devote an incredible amount of energy and resource to continually building our risk mitigation services. Our goal is to help policyholders stay one step ahead of the hackers while reducing both the number and severity of cyber claims.

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EXECUTIVE INSIGHTS SERIES

CYBER INSURANCE Such clarity is likely best achieved by covering cyber-related losses under cyber-specific policies. In theory, standalone policies are better suited to keeping pace with the fast-moving and varied risks in this space – legal, regulatory, technological or otherwise. Also, an underwriter of standalone cyber risk should be able to more effectively understand its evolution.

Lindsey Nelson: Silent, or nonaffirmative, cyber has existed in property and general liability policies for as long as insureds have used technology as part of their business practices. Many may have previously believed – erroneously so – that cyber coverage existed in other areas of their insurance program, which may have prevented them from seeking standalone cyber protection. For example, there may

“Non-affirmative cyber cover risks uncertainty for policyholders and insurers alike, giving rise to an increased risk of legal disputes and unintended outcomes” Mark Doepel, Sparke Helmore Lawyers be elements of a third-party liability suit as a result of a privacy event being addressed under a solicitor’s PI policy. Or a traditional crime/fidelity policy might extend to electronic crime or social engineering by way of endorsement.

Non-affirmative cyber became a speaking point because significant losses were accumulating, and clients were seeking clarity of cover to address them.

There is rightly an argument to be made that the growing frequency and severitydriven losses that clients were experiencing were impacting the market long before exclusionary cyber language on other policies.

Ultimately, the crux of silent cyber mandates has been behind insurer intent of never having underwritten these risks or priced them in the first instance. That’s why cyber as a peril properly resides in an affirmative standalone policy that gives

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clients not only clarity but, more importantly, access to cyber specialists who can properly help them navigate their way through a cyber event. What all other non-affirmative cyber policies have in common is the lack of specialised claims expertise behind them, and this has turned the attention of brokers and clients towards standalone cyber policies that adequately address and respond to cyber perils in a rapidly changing threat landscape.

Jeffrey Gonlin: The way we live our lives and the risks we face as individuals and businesses alike are rapidly changing due to technology advancements. As an industry, we need to step up to this challenge and ensure insurance policies offered are reflective of the times we live in and the risks we face.

How we are addressing silent cyber as an industry is an ongoing issue and something we need to be better at. Providing certainty in an insurance contract is the right thing to do; defaulting to excluding the cover is not. The way the industry has reacted to the business interruption losses in property policies arising out of COVID-19 highlights the reputational damage that can be caused by not correctly articulating the cover provided by policies.

The risk posed by cyber incidents causing property damage and/or bodily injury remains remote, particularly when compared to the current perils already picked up. There have only been a handful of examples of cyber incidents causing property damage or bodily injury, yet we are still able to cover things like bushfires, floods and windstorms, which are much more devastating and more likely.

As there are already dedicated policies to cover property damage and bodily injury, this is where the risk should continue to sit.

Ideally, we should look at modular cyber extensions to these existing policies, where we can take a collaborative approach and leverage the underwriting knowledge.

Richard Smith: The changes insurers are making to address silent cyber mandates can create coverage gaps. This has added to the need for brokers to prop-

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clients that need extra capacity.

Our dedicated focus on cyber risk in the community and leadership on product innovation led us to develop Australia’s only standalone personal cyber policy. Technology touches everything we do. It improves the way we communicate, collaborate and transact.

This reliance on technology means that it is playing a bigger role in families’ lives.

This exposes them to inherent cyber risks that they haven’t faced before.

What’s your key area of focus in the insurance ecosystem?

Troy Filipcevic, founder and CEO

CYBER EXPERT

EMERGENCE INSURANCE Year founded: 2014 Head office: Sydney

Tell us about Emergence.

Emergence is the only dedicated cyber underwriting agency in Australia and New Zealand. Our dedicated team, consisting of underwriters, claims handlers, cybersecurity experts and cyber breach coaches, forms the largest cyber team in the country. Our niche focus on helping brokers find the right solution for their clients and our knowledgeable team have enforced our reputation and standing in the market.

Emergence provides solutions in commercial cyber insurance for SME, mid-market and corporate clients. We also offer our excess of loss wording for

Emergence’s key area of focus is helping businesses get back in business when they suffer a cyber event. This spans across product development and underwriting, ensuring we are providing meaningful coverage so businesses and families have the confidence to go about what they do.

Most critically, it focuses on incident response and claims handling.

Emergence has dedicated incident response and claims handling capabilities in-house. It is a function we are very proud of and one that we continue to build upon, both from a claims handling and incident response service point of view.

A key aspect of Emergence’s distinctive claims and incident response offering is our in-house cyber breach coaches (CBCs). The CBCs are cybersecurity experts who can provide immediate and coordinated incident response to cyber events. Emergence operates a 24/7/365 hotline to allow insureds immediate access to incident response management. The CBCs assist the insured, and their technical expertise is invaluable in managing the claim locally.

How does your cyber insurance product work?

First, and most importantly, whether it’s a personal cyber policy or commercial cyber policy, the insured gets immediate access to incident response capability

and cyber breach coaches.

Key features of the Emergence Personal Cyber Insurance product include cover for the impacts of cyber events and cybercrimes such as hacking, malware, viruses, cyber espionage, denial of service attacks, cyber theft/crime, identity theft and more. Looking beyond the technical side of cyber threats, social media can become a platform for anti-social behaviour. That’s why the policy also responds to cyberbullying, cyberstalking and cyber harassment.

Our award-winning commercial cyber offering provides coverage for cyber event response costs and access to a panel of local and global cyber experts, business interruption and third-party liability. We also offer cover for criminal financial loss, including social engineering and cyber theft/crime, contingent business interruption, and tangible property. As part of our incident response service, this is free for policyholders.

What problem are you solving in the cyber insurance space?

Generally speaking, businesses and households are struggling to grasp how significant cyber risk is in our lives. The last 18 months have highlighted how reliant we are on technology. Technology has allowed us to connect, compete and be productive as work-from-home practices are embedded into the fabric of how businesses compete.

Emergence’s emphasis on education for both the end client and broker is to ensure that we are all aware of the risks businesses and households face.

Insurance is a risk transfer solution; however, having the insured make an informed decision about how they try to mitigate against this risk is what we try to do every day. We want to assist the community in understanding cyber risk and improving their cybersecurity resilience. We also want to champion the take-up and benefits of cyber insurance as part of an overall risk management strategy.

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EXECUTIVE INSIGHTS SERIES

CYBER INSURANCE erly understand their clients’ cyber exposures and to adapt coverage where appropriate.

A standalone cyber policy is a far more comprehensive solution than an extension of cover under another policy, and cyber as a peril should sit within a standalone policy. However, the availability of reinsurance capacity may be an impediment to the cyber market being able to provide adequate levels of standalone cover.

Which restrictions or exclusions should brokers be particularly wary of in cyber policies?

Richard Smith: The varying language and coverage provided in the market does create challenges for brokers in recommending the most suitable solution to their clients.

Two areas I would suggest brokers should be wary of are claims conditions precedent to coverage, which your clients may be unaware of or unable to comply with, and loopholes within social engineering fraud and criminal financial loss coverages that may allow insurers to deny coverage – for example, when the fraudulent request is completed over the phone rather than via a computer or when losses are caused by the insured’s clients being socially engineered rather than the insured.

Jeffrey Gonlin: Exclusionary

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language should be one of the last things to consider when placing a cyber policy. All of the leading cyber insurers in the Australian market have had very broad coverages for several years now. Things like condition precedent exclusions are not as common these days.

The first challenge is assessing your client’s critical exposures. Businesses’ most valuable assets are no longer propertybased, but are their employees, data and IT systems, and these need to be protected.

Start with the insuring agreements and make sure you – and your insured – understand the core cover and how it relates to those critical exposures. Scrutinise the rest of the policy: the definitions, the conditions and the exclusions. Then buy more limit than you think you need – the worst exclusion of all is an inadequate limit.

The ‘coverage battle’ is over, at least for the moment. There’s a core set of covers that any decent cyber policy will provide, but not all cyber insurers can complement the cover with valuable pre- and post-loss services – so choice of carrier is arguably more important. Pick your horse first, then the cart.

Brokers should be mindful of new exclusions, but the bigger issue remains uninsured and underinsured clients. Too many clients are still buying low limits or short indemnity periods, and most busi-

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requirements of that market with our deep experience, including our lawyers who have worked in London.

Our membership in Global Insurance Law Connect means we can provide global insights along with specialised local knowledge. Sharing this platform, we are uniquely placed to anticipate and help respond to global trends.

The way we work is important to us.

In true Australian spirit, we’re friendly, approachable and easy to work with.

When you work with one of us, you get the expertise of all of us.

What’s your key area of focus in the insurance ecosystem?

Our commercial insurance practice group is focused on all product lines, from simple to complex claims and including defence work and coverage advice. We always explore the opportunity for dispute resolution at all stages of claims through different options. Currently, a key emerging area for us is cyber insurance.

What problem are you solving in the cyber insurance space?

Belinda Michalk, partner and national practice group leader for commercial insurance

CYBER EXPERT

SPARKE HELMORE LAWYERS Year founded: 1882 Head office: Sydney

Tell us about Sparke Helmore.

For over 130 years, Sparke Helmore has been supporting the insurance industry.

Insurance is central to who we are.

Each day across Australia, more than half of our firm is providing services to insurance clients. We listen to and work with our clients to deliver services in

ways that best suit each client’s business and need. We use technology and data and the expertise of our people to deliver the service our clients want.

We advise on contentious and non-contentious work across a broad range of sectors and product lines. We act for the world’s largest insurers, as well as underwriting agencies, brokers, claims managers, government agencies and many of Australia’s largest corporate entities. The London market is an important part of our practice, and we are able to respond to the specialist

We recognise that the cyber and privacy space, and how it interacts with insurance, is a specialist area. Our cyber team works exclusively in the space, and there are few Australian law firms that have the focus and depth of experience that we do. This allows us to provide specialist and practical advice to our clients based on experience.

We work with our clients across the privacy, cyber and insurance life cycles, including pre-breach data security compliance and improvement, breach response, policy coverage and largeclaim monitoring, third-party claims, and policy wordings. Recently we have been working with clients to assist in response to data breaches. Whatever the cyber issue may be, we always work with our clients to tailor our services to the particular requirements and to collaborate for the desired outcome.

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EXECUTIVE INSIGHTS SERIES

CYBER INSURANCE

nesses still have no cyber insurance at all. Any cyber policy is better than none.

It’s a bit like the COVID-19 vaccine: take whichever jab’s available, but do take one.

Lindsey Nelson: Clients and brokers alike are fairly wise to what is expressly stated as an affirmative restriction or exclusion within policy language. However, one restriction that is becoming increasingly commonplace in cyber policies as part of a market-wide reaction to severity-driven ransomware losses is coinsurance provisions being applied as a condition on larger clients that lack certain basic minimum security practices. It’s easy to understand why some cyber insurers are treading this path – it’s broadly similar to how a traditional property policy will act less favourably towards an organisation that leaves its doors wide open.

What’s less obvious is how often clients are scrutinising what their cyber policy does or doesn’t offer beyond the policy language itself. This is most evident when attempts are made to compare and contrast cyber wordings in the market. Comparisons are often made between specific insuring clause sections of a policy, but rarely do clients ask brokers about what claims expertise or risk management services are also

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provided.

Cyber insurance policies are increasingly service-driven solutions. A good policy should offer proactive risk management services upfront and in-house claims expertise so that should the worst happen, an event is managed and resolved as quickly as possible. This should be the first thing a broker or client should be asking of a cyber insurer. Products in the market won’t expressly state whether services are included or excluded as part of the policy language, so it’s essential they are critiqued when selecting a cyber product.

Mark Doepel: In most cases, the policies we see broadly cover the same kinds of losses – the four core areas being thirdparty liability, crime-related losses, business interruption and incident response costs. Furthermore, policies tend to carry similar exclusions. Most include, for example, exclusions relating to sanctions, contractual liability and core internet structure failures. However, policies can look entirely different from one another, and terminology nuances can have a significant impact on what is – and is not – covered by them.

We often see policyholders surprised by how quickly policy limits, including in the aggregate, and sub-limits are eroded by covered events. Real care needs to be taken when considering their adequacy.

The appropriateness of indemnity periods for business interruption losses is equally important. Clearly, having a general appreciation about the kinds of losses that can arise from covered events is important and, in our view, a true value-add that brokers can offer to their clients.

Other areas that tend to be disputed, or the subject of sometimes lengthy negotiation between policyholders and their insurers, relate to the reasonableness of hardware replacement costs, if covered; articulating and quantifying betterment expenses or reputational damage; and reimbursement for non-pre-approved response costs. The latter regularly revolves around the necessity and reasonableness of managed service provider or information

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technology restoration costs.

Finally, it would be remiss of me not to mention the increasing sensitivity around ransom payments cover. Sanctions and other legal issues aside, we have observed a marked shift in how insurers approach these payments, which is likely to continue over the short- to mid-term and will no doubt be pushed along by legislative change.

To what degree is cyber insurance suitable for brokers to e-trade, considering its fastevolving underlying risk profile?

Richard Smith: Cyber insurance is definitely suitable for e-trade, as electronic quoting platforms should simplify the underwriting process and allow brokers to spend more time understanding their clients’ businesses and educating them on the risks and coverage.

The industry is starting to utilise external risk signals from applicants’ internet-facing infrastructure to complement e-trading underwriting platforms.

The evolving cyber threats businesses face provide the opportunity for insurers to provide continuous threat detection and risk mitigation advice.

Mark Doepel: This is probably a question better reserved for those closer to the action. Our lawyerly response is that depending on the circumstances, e-trading may be effectively used to bind cyber policies for organisations and industries that are, comparatively, less exposed to the kinds of risks ordinarily covered by those policies. The suitability of e-trading likely decreases commensurate with the increase in organisations’ sophistication, size and data usage complexity.

Lindsey Nelson: Having been e-trading cyber policies for over 20 years now, in our view, it’s perfectly suitable where an insurer has the data and scalability to use a combination of their own claims data and scanning tools to get an appropriate view of what the exposure is for a particular industry of that size.

Using our analytics division, Insight,

we’ve empowered our brokers to obtain cyber quotes for SME businesses using a very minimal question set over our cyber trading platform, Connect.

Connect takes advantage of the insights we can gain about the security posture of a small business client without the questions upfront. Australian brokers have responded with huge enthusiasm and are interacting directly through the platform, which largely allows brokers to get back control in the terms they receive from their markets.

Connect also gives our brokers and clients access to all of our proprietary benchmarking information, limit profiles and claims examples based on what industry the client is operating in to equip them with the ability to sell a policy to a client based on what their specific exposure is in their peer group. Access to relevant information is scarce in a market where big

itself to e-trade better than many other insurance policies, particularly as things like external scanning tools, dark web monitoring and other sophisticated risk management tools become more commonplace. Platforms that can use up-to-date risk analysis and dynamic underwriting will provide the best outcomes for clients, both at the quote stage and also during the policy period. The ability to monitor the exposure in real time and provide live risk mitigation to insureds will be an invaluable service offering in the near future.

Will we someday see algorithmic trading of cybersecurity futures on the global exchanges? Who knows? The cynic in me says we’ve already got a proxy or a sort of rough barometer for cybercrime that anyone can trade – it’s called Bitcoin. Correlation isn’t causation, but without digital currencies, the ransomware industry wouldn’t be what it is today.

“In our experience, explaining the value of cyber insurance specific to a business always helps explain the price” Lindsey Nelson, CFC business losses making the headlines are being presented to SMEs, and overwhelmingly, clients want to see claims examples of companies that look like them. And in our experience, explaining the value of cyber insurance specific to a business always helps explain the price.

Jeffrey Gonlin: Financial products of every description can be traded online.

The financial markets in Sydney, New York, Tokyo, London and elsewhere handle huge volumes of equities, derivatives, catastrophe bonds and other transactions where the underlying risks are certainly no less dynamic than cyber.

Cyber insurance is a suitable product for e-trading if these platforms are backed up by experienced underwriters who can provide the required service and advice brokers need. Cyber insurance lends

But as for now and for the foreseeable future, e-trading will need to be supported by underwriters, particularly those who can get out and meet their brokers face-to-face.

If you could give one tip to brokers selling cyber insurance right now, what would it be?

Richard Smith: Keep your advice relevant. Businesses have different types of exposures. For example, online retailers will hold large amounts of customer data and may be heavily reliant on their payment processor provider, so service provider cover will be important. Manufacturers may not hold much data; however, they may have concerns about an interruption to their business, so implementing suitable BI coverage will be vital.

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EXECUTIVE INSIGHTS SERIES

CYBER INSURANCE Mark Doepel: The Australian cyber insurance market is developing at a rapid pace. Though an exciting time for market players generally, the kinds of cyber cover currently available can differ from policy to policy. Added to this is the considerable amount of proposed legislative change and near daily discovery of new cyber risks.

Our main tip for brokers, therefore, is to leverage existing expertise in the space to help gain a deeper appreciation of their clients’ specific circumstances, which should serve to better inform coverage options and aid negotiation of specific policy terms.

Our other tip for brokers is to identify insurers that have a reputation for paying claims – at the very least, you should be talking to them.

Lindsey Nelson: Cyber insurance is experiencing the first hard market cycle in the history of its existence as a product line, driven almost exclusively by the severity of ransomware claims. Companies purchasing cyber cover will be seeing renewal terms and conditions looking different from previous years. There has been a unanimous acceptance in the market that more rate is required to return to a position of profitability, which is due to national cyber written premiums being in their infancy and looking disproportionate to claims activity.

Two years ago, we were saying coverage was as broad as it was going to be for the price point it was offered. Fast-forward to today, and obtaining cyber insurance has become more challenging.

Cyber insurance has reached its adolescence. Insurers are using the data they have collected to determine what security measures are preventing claims and what industries are more susceptible to cyber risk by exposure alone and ensuring that the price reflects the fact that ransomware events are costing into the millions, not the hundreds of dollars of years ago. Minimum security measures are increasingly being required before an insurer will entertain providing coverage – for example, multifactor authentication for remote access was

16

“Cyber is often the last product that brokers speak about to their clients, but it should be the first. Don’t present cyber as optional – it’s essential” Jeffrey Gonlin, Emergence Insurance the cause of over 80% of the ransomware attacks we saw at CFC in the previous year where it wasn’t enabled, and yet it is a fairly simple measure to adopt.

So I would urge brokers this year to plan well ahead of time in preparing clients to become insurable risks. Increasingly, the question is changing from what risk measures a client should adopt to get lower premiums to how they can get cyber insurance altogether in the face of shrinking capacity and expectations around minimum security controls.

Jeffrey Gonlin: The perception of cyber insurance needs to change. It’s still common to hear underwriters or brokers refer to the product as ‘cyber liability’, despite first-party covers driving most of the claim costs.

Cyber is often the last product that brokers speak about to their clients, but it should be the first. Loss of IT systems can be more devastating to a business than not being able to access their office. Don’t present cyber as optional – it’s essential.

Business interruption under a cyber policy

is a crucial cover that needs to be highlighted to insureds.

Cyber is a risk-managed class of insurance, so transferring the risk should be the last step in the process. Improving cybersecurity controls will assist the client in getting the best terms possible. With the hardening cyber market, those clients who do not invest in managing their security posture and simply want to transfer the risk will find it difficult to find cover.

Once a client does decide to buy cyber, buy it from an insurer with the same attitude: approach cyber holistically and manage the risk down until the marginal returns have diminished – then transfer the rest via insurance. Premiums should be viewed as valuable feedback on a client’s degree of risk. A high premium is telling you you’re not as well managed a risk as you may think. Underwriters should be providing feedback and working with brokers and insureds to reduce exposures. This should ultimately be reflected in lower premiums – and better loss ratios.

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knowing they can be covered for liability and costs in cyber events.

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Emergence Insurance Pty Ltd distributes the product as agent for the insurer, certain underwriters at Lloyd’s. Please consider the relevant Product Disclosure Statement available by either contacting Emergence or visiting emergenceinsurance.com.au in deciding whether or not the product is Emergence Insurance distributes the product as agenttofor the the insurer, certain Deductibles, underwritersexcesses, at Lloyd’s.exclusions Please consider the relevant appropriate for you, andPtyinLtdwhether to acquire, or to continue hold, product(s). and limits apply. Product Disclosure Statement available by either contacting Emergence or visiting emergenceinsurance.com.au in deciding whether or not the product is appropriate for you, and in whether to acquire, or to continue to hold, the product(s). Deductibles, excesses, exclusions and limits apply.

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