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insurancebusinessonline.com.au Issue 6.04

PLAYING THE LONG GAME

Berkshire Hathaway Specialty Insurance continues to build a ‘forever’ business THE DEVIL IS IN THE DETAIL

Finding the right cyber protection

RISK ENGINEERING A RESULT

Opportunities for brokers to add value to their service

YOUNG GUNS 2017 OFC and spine_subbed.indd 1

A CHALLENGING ENVIRONMENT

Environmental risks and multinational coverage

The young insurance professionals poised to become tomorrow’s leaders

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ISSUE 6.04

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CONTENTS

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UPFRONT 02 Editorial

Future leaders, future solutions

04 Statistics

FEATURES

THE DEVIL IS IN THE DETAIL

YOUNG GUNS

How can brokers work to ensure clients’ protection against cyber threats is maximised?

08 News analysis

The impact of global environmental legislation on multinational coverage

10 Intelligence

Steadfast makes a deal with an international broking group and Swiss Re Corporate Solutions appoints a new local CEO

16 Underwriting agencies update

Profiling the rising stars of insurance on track to become tomorrow’s industry leaders FEATURES

‘Three of BHSI’s senior leaders in Australia tell Insurance Business what sets their organisation apart’

Why doing more to mitigate against the impact of natural disasters makes sense

ASIC orders an insurer to refund more than $330,000 to add-on insurance customers

YOUNG GUNS

PLAYING THE LONG GAME

06 Opinion

12 Insurer update

FEATURES

PEOPLE

The top business risks of 2017 at home and across the globe

BROKERAGE INSIGHT

Jim Karafilis talks about Insurance House – one of Australia’s largest private insurance brokerages

Blend Insurance Solutions has arrived and plans to ultimately expand beyond A&H products

FEATURES

48 Battening down the hatches Protecting commercial vessels in the Nat Cat-prone regions of Australia

PEOPLE 55 Career path

Vero’s Anthony Pagano reflects on a career entirely focused on protecting his clients

56 Other life

Arch Insurance’s Michelle Rudd recently drove 3,800km to raise funds for cancer research

FEATURES

RISK ENGINEERING A RESULT Zurich’s Mervyn Rea on opportunities in the risk assessment space

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UPFRONT

EDITORIAL

www.insurancebusinessonline.com.au EDITORIAL

FUTURE LEADERS, FUTURE SOLUTIONS

ccording to social researcher Mark McCrindle’s analysis, entitled Australia in 2020: A Snapshot of the Future, when the country’s population nears the 24-million mark at the end of the decade, most Baby Boomers will have retired and Generation Y will make up 42% of our workforce. As is the case across the economic spectrum, the global insurance industry is confronted by the challenge of ensuring it continues attracting sufficient levels of top talent, in order to keep its cogs turning. Last February, Dame Inga Beale, global CEO of Lloyd’s of London, said the industry across the world urgently needed to attract the skills and talent of millennials to safeguard its future. She also commented that the pace of change is today 10 times faster than during the industrial revolution of the 18th and 19th centuries, and that the current digital revolution will dwarf the impact of those events. “The pace of change right now means we need the best and brightest talent to join us to keep us modern, to cope with the innovation and technological capabilities that we all need to equip ourselves with,” Beale said.

“A steady pipeline of talent will be integral to ensuring we maintain and continue to build up a world-class insurance industry” There can be no denying the relevance of Beale’s comments to Australia’s own general insurance industry. A steady pipeline of talent will be integral to ensuring we maintain and continue to build up a world-class insurance industry. Educated young professionals will bring with them new ideas, new ways of looking at things, new skillsets, and, working in collaboration with their seasoned industry counterparts, will have what it takes to solve insurance’s future challenges. In this issue of Insurance Business, we are proud to present our annual Young Guns list, shining a light on 50 insurance professionals proving themselves as potential leaders of tomorrow’s industry. We hope you enjoy reading through this year’s list – a roster of names that should provide considerable reassurance that the future of the Australian insurance industry rests in safe hands.

Tim Garratt, editor

Editor Tim Garratt News Editor Jordan Lynn Writers Libby MacDonald, Lucy Hook Production Editors Jo Crichton, Roslyn Meredith

CONTRIBUTOR Mark Milliner

ART & PRODUCTION Design Manager Daniel Williams Designer Joenel Salvador Traffic Coordinator Freya Demegelio

SALES & MARKETING General Manager Peter Smith Commercial Development Manager Sophie Knight Marketing & Communications Manager Lisa Narroway

CORPORATE Chief Executive Officer Mike Shipley Chief Operating Officer George Walmsley Managing Director Justin Kennedy Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil

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UPFRONT

STATISTICS

RISKY BUSINESS

NORTH AMERICA 1. Cybercrime 2. Damage to reputation/brand 3. Failure to attract or retain top talent

When it comes to business risks, nothing’s more dangerous than a headline-grabbing brand misstep

THE INTEGRITY of a brand’s reputation is the top-ranked risk for businesses globally across numerous geographies and industries – and unlike many other threats, it is insurable. Cyber risk is also gathering pace as a top concern; although it only entered the top 10 in 2015, cybercrime was ranked by risk management professionals surveyed by Aon as the fifth most pressing issue faced by businesses today.

93%

Companies with revenue of US$1bn or more that have a risk management department

54%

Companies with revenues of less than US$500m that have a risk management department

Business interruption also made the top 10, following a year in which economic losses from natural catastrophe events topped US$210bn and business interruption costs from such disasters have grown proportionally higher than they were a decade ago. Political uncertainties also re-entered the top 10 after a tumultuous year that saw volatility pervade typically stable developed nations.

71%

Companies that engage in cross-functional collaboration of risk management

76%

Companies that have adopted an approach to risk management at the board level

4. Regulatory/legislative changes 5. Economic slowdown

Insurable Uninsurable

Partially insurable

TOP 5 RISKS BY REGION The top-ranked business risk globally – damage to reputation or brand – was the primary or secondary concern for business leaders in almost every region of the world. Reputational risk also cuts across industries; it was named as the number-one risk for fields as varied as beverages, hotels and non-aviation transportation manufacturing

Source: Global Risk Management Survey, Aon, 2017

THE GLOBAL TOP 10

LACK OF PREPARATION

High-profile scandals, product recalls and the viral spread of news on social media helped catapult reputational risk to the number-one spot

Aon found that, overall, businesses are less prepared to face their biggest risks than they were two years ago. The average readiness for the current top 10 risks has exhibited a significant downward trend, dropping from 58% in 2015 to 53% in 2017

Damage to reputation/brand Economic slowdown/slow recovery Increasing competition Regulatory/legislative changes Cybercrime/hacking/viruses/malicious codes Failure to innovate/meet customer needs Failure to attract or retain top talent Business interruption Political risk/uncertainties Third-party liability Source: Global Risk Management Survey, Aon, 2017

% OF COMPANIES PREPARED FOR THIS RISK 100% 2015

2017

Failure to Failure to Business Political innovate attract or retain interruption uncertainties top talent

Third-party liability

80% 60% 40% 20% 0

Damage to reputation/ brand

Economic Increasing Regulatory/ Cybercrime slowdown competition legislative changes

Source: Global Risk Management Survey, Aon, 2017

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ASIA-PACIFIC

EUROPE

1. Damage to reputation/brand

1. Economic slowdown

2. Regulatory/legislative changes

2. Damage to reputation/brand

3. Increasing competition

4. Failure to innovate

4. Regulatory/legislative changes

5. Economic slowdown

5. Failure to innovate

MIDDLE EAST AND AFRICA 1. Economic slowdown 2. Political risk

LATIN AMERICA

3. Failure to innovate

1. Damage to reputation/brand

4. Failure to attract or retain top talent

2. Business interruption

5. Damage to reputation/brand

3. Economic slowdown 4. Third-party liability 5. Social responsibility/sustainability

Source: Global Risk Management Survey, Aon, 2017

REGIONAL READINESS

RISKS OF THE FUTURE

In regional terms, the level of risk preparedness has gone up in Asia-Pacific, in contrast to all other regions, which reported lower levels of readiness than they did two years ago

By 2020, risk management professionals believe reputational risk will drop significantly in importance

% OF COMPANIES PREPARED FOR THE TOP 10 RISKS

2017

2015

2013

Change from 2017

PROJECTED TOP 10 BUSINESS RISKS, 2020 Economic slowdown/slow recovery

Asia-Pacific

Increasing competition Failure to innovate/meet customer needs

North America

Regulatory/legislative changes Cybercrime/hacking/viruses/malicious codes

Europe

Damage to reputation/brand Latin America

Failure to attract or retain top talent Political risk/uncertainties

Middle East and Africa

Commodity price risk 0%

10%

20%

30%

40%

50%

60%

70%

80%

Source: Global Risk Management Survey, Aon, 2017

Disruptive technologies/innovation Source: Global Risk Management Survey, Aon, 2017

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UPFRONT

OPINION

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

MITIGATION IS THE KEY Greater investment in disaster resilience is not only beneficial but essential, says Mark Milliner FROM WILD storms, to raging bushfires and devastating floods, our nation has seen it, suffered through it and worked together to help our communities get back on their feet. It is heartbreaking to visit communities in the aftermath of a disaster and try to comfort individuals, families and business owners coming to grips with what has happened, physically and emotionally, as they take their first steps on the long road to recovery. The human impacts are deep and long lasting, beyond the damage to buildings and infrastructure. We can’t prevent nature from throwing its worst at us, but we can certainly do more to mitigate the impacts of natural disasters and build greater resilience in communities, so they become stronger and better prepared should they be impacted again in the future. IAG is a member of the Australian Business Roundtable for Disaster Resilience & Safer Communities, together with the Australian Red Cross, Investa, Munich Re, Optus and Westpac. The Roundtable was formed in 2012 following an unprecedented level of extreme weather events in Australia caused recovery costs to exceed the historical average. We have advocated for greater collaboration between all levels of government, business and local communities to help prioritise and action pre-disaster mitigation. It is clear that the nation’s investment in recovery following natural disasters far outweighs its investment in mitigation. Quite simply, the funding mix is wrong. The Roundtable’s research has found that the total cost of natural disasters is expected to reach an average of $33bn annually by 2050.

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Only $50m a year is spent on mitigation measures, with the average annual spend on recovery measures totalling $560m (2013). That means for every $10 spent on recovery measures, only $1 is spent on mitigation. That’s despite successful mitigation initiatives having tangible impacts in reducing risk, making insurance more affordable and making communities safer. Following extensive flooding in 2010 and 2011, local, state and federal governments worked together to deliver funding to build a levee in Roma, Queensland. Construction began in 2013 and was completed in 2015, protecting almost 500 homes.

outline where and how critical infrastructure is built in a cyclone, flood or bushfire prone area? Or would local governments consider helping residents or businesses in a high-risk area relocate to a lower-risk area nearby? These are questions we should help communities examine in the wake of Tropical Cyclone Debbie, where the response for areas such as Proserpine and Airlie Beach in Queensland will be different to the flood-affected towns of Lismore and Murwillumbah in northern NSW. It is also critical we take a holistic approach to building resilient communities by examining long-lasting social impacts such as increased mental health issues, alcohol misuse, domestic violence, chronic diseases and unemployment. More than one in every 10 people exposed to natural disasters are reported to develop psychological distress. At IAG we have responded to this by developing a community connection program called ‘Good Hoods’, which links individuals and community groups with resilience-building ideas and initiatives across the nation. In developing the program, more than 2,500 people were engaged from a cross-section of

We can certainly do more to mitigate the impacts of natural disasters The Roundtable’s analysis in 2013 found that without the introduction of pre-disaster mitigation initiatives, average annual flood costs in the Hawkesbury/Nepean region in NSW would triple from $102m in 2013 to $317m by 2050. In June 2016, the NSW Government announced plans to investigate raising the height of Warragamba Dam in an effort to significantly reduce downstream flood risk. The Government has confirmed the first stage of this mitigation project – $58m to improve flood risk awareness through evacuation signage, improved flood forecasting and integrating flood risk management into regional planning. However, securing greater investment in mitigation will be a missed opportunity if we don’t share information on what measures work, and if communities don’t help develop solutions. Do local planning laws and building codes

communities, with connection and belonging identified as major factors in helping to build greater resilience. It also delivers shared value for IAG through reducing the impact unexpected events have on customers and claims. If our national investment in resilience continues to be well short of what’s required to seriously tackle the issue, the social and economic cost of future disasters will keep escalating. We must work together as a nation to deliver greater mitigation measures for communities right across the country. Our way of life depends on it. Mark Milliner is CEO – Australia of IAG. He joined the group last year, following two decades at Suncorp, where he held a number of senior roles, including CEO of personal insurance.

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UPFRONT

NEWS ANALYSIS

ENVIRONMENTAL MINEFIELD An intricate nexus of regulations around the globe is making coverage for multinational corporations increasingly complex – and under the glare of public scrutiny, the stakes are higher than ever

THE GLOBAL environmental regulatory landscape is a patchwork quilt of complexities, from the EU’s sweeping Environmental Liability Directive to the Comprehensive Environmental Response, Compensation and Liability Act (Superfund) in the US. For multinational businesses, operating in multiple countries is a balancing act that requires navigating an intimidating amount of legislation. “From the multinational side, it’s incredibly important to make sure the policy is responding to local laws,” says Glenn O’Halloran, Chubb’s environmental risk manager for the UK and Ireland. He says that at last count there were around 17,000 different pieces of environmental legislation globally. “So when businesses do have

partner at Clyde & Co. Some markets, such as China, India and some countries in Europe, have compulsory insurance programs in certain areas, and it’s no coincidence that those jurisdictions tend to see the highest claims activity. Alongside this complex global landscape, there is an ever-increasing level of public scrutiny on companies – meaning the stakes are high when it comes to potential reputational damage resulting from an environmental incident. “There’s increased pressure in how [firms] operate and how they manage their environmental exposure,” O’Halloran says, explaining that this is driven in part by rising public awareness, as

“There needs to be a greater awareness that this is not just confined to manufacturing or oil and gas sectors – it is everybody” Neil Beresford, Clyde & Co. an event, it’s important to have a local contact point within the certain territory where these losses occurred and to ensure that the policy is structured appropriately for that territory.” Regulation across various jurisdictions can be “wildly different”, says Neil Beresford,

well as the ability of news to spread quickly in the digital age. “Something that might have been a relatively benign issue can quickly become serious from a reputational damage perspective.” But despite the weight of the risks, clients typically don’t understand the extent of their

environmental exposure, and among those that do, there is a common misconception that property and general liability policies will be enough to cover the majority of any losses. “The market is in a very similar place to where D&O was, say, 15 years ago, or where cyber was five years ago, in that there’s not sufficient understanding of the generality of the risk,” Beresford says. While a great deal of work was done in the cyber market to help businesses understand that cyber exposures are not just limited to technology companies, he explains, there remains a lack of awareness in the environmental space. “If you look at the claims data across industry sectors, you’d be surprised at how many claims are accounted for by real estate businesses, retail businesses and construction

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GLOBAL REGULATIONS AT A GLANCE

Superfund liability legislates that any company potentially responsible for pollution may be held liable for the entire clean-up of a site, including all government costs, damages to natural resources and any human health concerns

The Environmental Liability Directive, which came into force in 2009, imposed new liabilities for environmental damage on many companies operating within the EU, requiring not only the prevention of damage but also restoration after an event

China

China amended its Environmental Protection Law in 2014, heightening liabilities for wrongdoers and broadening the government’s power to crack down on non-compliance, including measures such as seizure of polluting equipment businesses – they’re all facing quite significant claims,” Beresford says. “So there needs to be a greater awareness that this is not just

remediate falls not just on the polluter, but the landowner too. “About half the cases that we see are cases

“A multinational client must not rely upon a single master policy to appropriately insure their overseas exposure” Glenn O’Halloran, Chubb confined to manufacturing or oil and gas sectors – it is everybody.” One aspect in particular that is not well understood is that under some environmental legislation – including the EU’s Environmental Liability Directive – the responsibility to

where a landowner has been required to remediate for something that someone else has done,” Beresford says. “It’s the fact that the landowner is responsible for the acts of others that makes environmental risk of such general application.”

With such a complex landscape to navigate, how are clients – especially those facing exposures in multiple territories – best supported? O’Halloran stresses that both brokers and insurers must recognise that the differing requirements in different territories create a need for local policies. Brokers should draw not only on multinational insurers’ knowledge of global environmental exposures but also on their capabilities in providing local services to clients. “The common theme here is that a multinational client must properly structure their environmental insurance policy to respond to unique risks in each territory,” O’Halloran says, “and they must not rely upon a single master policy to appropriately insure their overseas exposure.”

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UPFRONT

INTELLIGENCE CORPORATE ACQUIRER

TARGET

PRODUCTS COMMENTS

AB Phillips Group

Fergusons Insurance Brokers

On 23 June, Fergusons Insurance Brokers became part of the AB Phillips Group

Blend Insurance Solutions

Beazley Underwriting (Australian accident and health portfolio)

The deal sees Blend Insurance secure renewal rights to Beazley’s Australian accident and health portfolio

Chaucer

SLE Holdings (SLE Worldwide Australia)

According to a statement, SLE will gain access to additional resources through the acquisition, helping the firm develop its business and capitalise on new growth opportunities

Coverforce

Leed Insurance Group

Coverforce has acquired a 50% shareholding in Leed Insurance Group. The Leed management team will continue to operate the business with the financial and administrative support of the wider Coverforce group

Insurance House

Insurance Hub and Insurance House 360

The two acquisitions are in line with Insurance House’s strategy to broaden its regional and rural footprint nationally

unisonBrokers

The deal sees Steadfast Group acquire a noncontrolling stake in unisonBrokers

Steadfast Group

STEADFAST GROUP TAKES STAKE IN UNISON

Steadfast Group has announced an agreement to acquire a non-controlling stake in unisonBrokers, in order to grow the global distribution platform for both networks. Based in Hamburg and Chicago, unison is one of the largest networks of general insurance brokers across the globe, with 200 brokers in 130 countries and US$17bn (A$22.33bn) of gross written premium. Following the transaction, unison will be renamed ‘unisonsteadfast’. Steadfast Group will join the unisonsteadfast network and facilitate access to international markets for brokers in the existing Steadfast Network. Steadfast’s existing operations in Australia, New Zealand, Asia and London (wholesale) will continue unchanged.

ZURICH LAUNCHES Z TRACK

Zurich has launched a new claims tracking and reporting tool that aims to make it easier for brokers and customers to monitor the progress of claims, as well as to give its motor fleet clients and their brokers access to data that will help them monitor and manage their fleet. The Z Track innovations include benchmarking of a customer’s motor fleet claims against others (on a de-identified and aggregated basis) and the ability to request automated notifications when a claim passes a key milestone. Z Track can be accessed on numerous devices at www.zurich.com.au/ZTrack.

WORLD2COVER EXPANDS ITS TRAVEL OFFERING

Travel insurer World2Cover has expanded its offering to support travellers with pre-existing medical conditions. “Aussies are prolific travellers but for those with medical conditions, planning a getaway can be that little bit more difficult,” said Claudio Saita, deputy CEO and executive director in Australia for Tokio Marine, which underwrites World2Cover travel insurance. “We want to help even the playing field and have developed a hasslefree online or phone process for those with preexisting medical conditions, so they can spend less time worrying about insurance and more time enjoying their travels.”

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XL CATLIN’S NEW ENVIRONMENTAL PROTECTION COVER

XL Catlin has launched its Real Estate Environmental Protection (REEP) solution in Asia-Pacific. The policy is designed to help property portfolio owners, Real Estate Investment Trusts (REITs) and property investors deal with environmental liabilities that may arise as a result of owning or managing property. It offers investors coverage for historic and new pollution conditions, both sudden and accidental as well as gradual pollution. Additionally, XL Catlin says the REEP solution provides a comprehensive range of coverage, from statutory clean-up orders, restoration, legal defence costs through to third-party property damage, bodily injury and business interruption. As well as standard environmental coverage, the insurer also says the product includes enhanced coverage tailored to suit specific requirements.

AJG’S ASSOCIATION MEMBER BENEFITS SERVICE

Arthur J. Gallagher has launched a new professional benefits service for its association partners and their members. Called Access1st, the online portal will provide access to a range of products and services, including preferential rates. The service will offer a number of benefits, including professional indemnity and public liability insurance, health insurance, free ad hoc legal advice and travel and accommodation services. There is no cost to associations to join the portal and no cost to members unless they wish to take up special offers.

CPD ANYTIME LAUNCHES CPD POINTS ON DEMAND APP

CPD Anytime is a subscription-based education app that enables insurance professionals to earn CPD points anytime, anywhere, using the power of their smartphone or tablet. The app is designed to make it easier for insurance professionals to meet their CPD obligations by providing on-demand education, as well as automatically collating and maintaining their training register. Over 25 points, accredited by ANZIF and NIBA, will be available for $99 a year. Try the app free for 30 days by visiting www.cpdanytime.com.au.

PEOPLE NAME

LEAVING

JOINING

NEW POSITION

Scott Milligan

n.a.

Allianz Global Corporate & Specialty – Pacific

Regional manager – property

Jodi Garratt

CGU Insurance

Allied World Assurance Company Holdings

Assistant vice president, property, Australia

Paul Lynam

Pen Underwriting

Epsilon Underwriting Agency

Chairman

Paul O’Leary

Pen Underwriting

Epsilon Underwriting Agency

Chief underwriting officer

Karina Rodríguez Díaz

Aon Risk Solutions Australia

HDI Global SE

Crisis management leader, Australasia

William Lewis

n.a.

Ironshore Australia

Managing director

Hamish McDonald Nye

DUAL

ProRisk

Executive director

Alex Green

SURA

QBE Insurance

Head of product – negotiated lines

Michael Ford

Commonwealth Bank of Australia

QBE Insurance

Group chief financial officer

Lisa Harrison

n.a.

Suncorp

Chief program excellence officer

Giuseppe Carone

n.a.

Swiss Re Corporate Solutions

Senior underwriter, FinPro, Australia and New Zealand

Melanie Slack

n.a.

Swiss Re Corporate Solutions

CEO, Australia and New Zealand

David Mutton

Zurich Financial Services Australia

XL Catlin

Senior underwriter, casualty, Australia

Jill Stewart

QBE Insurance

Willis Towers Watson

Head of FINEX – Australasia

Theo Pitsikas

Suncorp Insurance

Zurich Financial Services Australia

Head of SME

Sarah Lyons

n.a.

Arthur J. Gallagher

CEO

SWISS RE CORPORATE SOLUTIONS HAS NEW CEO

Melanie Slack has been appointed CEO Australia and New Zealand for Swiss Re Corporate Solutions. Slack was previously head of life and health products for Swiss Re Asia. She joined Swiss Re Group in 2002 and, since then, has amassed international experience in a range of senior management roles in Asia, Europe and the US. “Melanie is a recognised re/insurance industry expert and a proven leader who has been instrumental in the growth of Swiss Re Group’s operations in Asia,” said Fred Kleiterp, CEO Asia Pacific in a statement.

INDUSTRY VETERAN JOINS QBE

Alex Green is now head of product – negotiated lines for QBE Australia and New Zealand. Green joined QBE’s workers’ compensation team in February from SURA, where he oversaw several agencies. Previously, he held roles managing workers’ compensation, professional risks and liability portfolios at

Vero and Suncorp. Declan Moore, QBE’s chief underwriting officer, said Green’s diverse product experience, combined with a passion for underwriting frameworks and rating models, was a great fit for QBE’s aspirations in the sector.

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UPFRONT

INSURER UPDATE

INSURER TO REFUND OVER $330,000 ASIC reinforces the need for insurers to review their practices with respect to add-on insurance products

practices and report to ASIC. “Customers should be confident that when they purchase an insurance policy, they can claim when they need to,” ASIC’s deputy chair, Peter Kell, said in a statement. “The fact that Virginia Surety was selling this insurance without the life insurer’s approval indicates serious deficiencies with its compliance.” Kell continued: “We have put all insurers in this market on notice that they need to change their practices and ensure they are properly considering the interests of consumers.”

“Customers should be confident that when they purchase an insurance policy, that they can claim when they need to” An insurer will refund more than $330,000 to over 500 add-on insurance customers, ASIC announced on 20 June. Between 18 June 2013 and 31 December 2015, Virginia Surety, a general insurer, sold consumer credit insurance – a bundled add-on product, which includes both general and life insurance coverage – to customers who took out loans at car yards, mainly in Queensland and New South Wales. According to ASIC, Virginia Surety had stated that the life cover in the add-on insurance policies was underwritten by TAL when, in fact,

NEWS BRIEFS

the company had no permission from TAL to do so. As a result, there was a risk of consumers having a life claim rejected despite having purchased the policy. ASIC has also imposed a condition on Virginia Surety’s Australian financial services licence, as a result of the finding that it improperly sold consumer credit insurance policies. That condition requires the insurer to refund the life premium paid by affected customers plus interest, and to engage an independent external compliance expert, approved by ASIC, to review its compliance

Swiss Re announces underwriting hub

Swiss Re has established a new property and casualty underwriting hub for Asia-Pacific. The new unit will be led by Sharon Ooi, who will become head of P&C underwriting for Asia, Australia, and New Zealand. “The new hub combines our global knowledge with even deeper insights into local markets and industry needs, to benefit our clients as they continue to grow their businesses across Asia-Pacific,” said Jayne Plunkett, Swiss Re CEO Asia.

ASIC also said that where a consumer has a valid claim under an affected add-on insurance policy, TAL has agreed to honour the life cover and pay the claim, even though the customer will receive a refund from Virginia Surety. ASIC said the matter had been identified during its review of add-on insurance sold through car dealers. In a report released last September, it found that consumers “are being sold expensive, poor-value products; products that provide consumers very little to no benefit; and a sales environment with pressure selling, very high commissions and conflicts of interest”.

IAG’s $1bn reinsurance purchase

IAG recently announced it had purchased an additional $1bn in reinsurance coverage to help protect the business against the impact of natural disasters. The company secured $1bn of gross protection, in excess of $7bn, including one prepaid reinstatement. The additional cover features a contractual period of 19 months, which commenced 1 June, and placement to the extent of 80% to reflect existing quota share arrangements.

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UPFRONT

Q&A

Political risk insurance Mark Houghton Regional product leader, Asia Pacific – Political Risk, Credit and Bond XL CATLIN

Fast facts Before joining XL Catlin in 2012, Mark Houghton spent 15 years in banking, including roles in origination and client coverage, project and export finance, syndications, securitisation, portfolio management and alternative risk distribution. He is based in Singapore

How important is political risk insurance for businesses in today’s world? Political risk is at its highest level since the Arab Spring in 2011 and remains at the forefront of people’s minds. Growing tensions in the South China Sea, North Korea missile tests, corruption investigations in Latin America, Brexit implications, the Trump administration’s foreign policy and the OBOR ambitions of China have raised awareness of political risk to a point where it is making front page news headlines every day. An increasing swell of nationalism from many countries across the world is also raising fears around long-term commitments from host governments to foreign investment in their countries. Evidently, political risk insurance remains a highly valuable instrument to help businesses mitigate the political risk challenges they face in emerging markets as well as to protect their shareholders’ equity and investments abroad.

Is the cover important for businesses of all sizes? Political risk insurance is relevant for all businesses. Large companies are exposed to different pressures from a host government and stand to lose as much as small businesses when they undertake major projects in emerging markets. Businesses commit large sums of capital to support FDI in countries where political risk is a material concern. This exposes shareholders to the actions and decisions of the host government, which is naturally supportive of local interests. For any project, the outcome of host government elections

icare releases world-ﬁrst study

icare has released a study into psychological safety in the workplace, in partnership with R U OK? The Australian Workplace Psychological Safety Survey involved 1,176 employees across Australia, finding that 23% of lower-income-earning frontline staff felt their workplace was psychologically safe, compared with 45% of high earners. Vivek Bhatia, icare CEO, urged employers to ensure that their employees had a mentally safe work environment.

may have the potential to change investment conditions and impact any capital investment the businesses have made in a specific country. Likewise, small businesses may have committed their entire shareholder capital to a single project in a country with heightened political risk, given the potential for higher investment returns. Therefore, if the host government was to amend or cancel investment agreements, licences or other agreements that were struck under previous governments, the entire company’s capital is at risk. All could be lost in one swift decision by the government, leaving a long and arduous battle for companies to seek compensation from the government under the dispute resolution forum agreed in the underlying investment agreements. This could take many years and the outcome is unpredictable.

What can brokers do to ensure they’re able to find the right coverage solution for their clients? It is important to understand what a client’s key concerns are when operating in a given country. Are they worried about currency issues and late payment of contractual revenues? Or are they concerned about cancellation of licences that impact operations, damage caused by political violence or complete seizure/confiscation of their assets? A clear understanding of the client’s key concerns will help them find a suitable solution within the political risk insurance market and allow them to adjust the coverage to meet their client’s needs.

Suncorp announces AI tests

Suncorp has developed a new technology, using artificial intelligence, to help it determine who is at fault in car crashes, The Australian has reported. Announced at a recent investor day, the technology is designed to speed up the claims process for customers and reduce claims costs. The insurer has uploaded 15,000 motor claims into IBM Watson, a supercomputer that utilises AI, to develop the technology, which will be rolled out over the coming months for some claims.

QBE chooses European Brexit base

QBE will establish its postBrexit base in Brussels, according to the Financial Times. It will move its business into mainland Europe as part of a Part VII transfer, which means existing policies are moved to the new entity, as well as new business. Richard Pryce, chief executive of QBE’s European operation, said Brussels represented the biggest existing European presence for the business. The new subsidiary is expected to be up and running by the end of 2018.

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UPFRONT

UNDERWRITING AGENCIES UPDATE NEWS BRIEFS CFC Underwriting’s new partnership

CFC Underwriting has signed a deal with EOS Risk, which will join the agency’s panel of experienced security companies, alongside red24 and S-RM. EOS Risk will help clients of CFC deal with global kidnap and extortion incidents. EOS Risk provides a range of risk services, including analysis, audit, operations, travel and assistance, and offers round-theclock assistance to other members of the Lloyd’s market. “We are delighted to be partnering with CFC and look forward to developing a proactive relationship,” said Steve Harwood, head of Special Risks at EOS.

CBL Insurance announces underwriting deal

CBL Insurance has agreed to support a new London-based managing general agency (MGA), according to reports. The insurer will back the new firm, Capital Risks, alongside directors of Lloyd’s broker Protean Risk. Capital Risks will initially offer buyers and sellers warranty and indemnity insurance, with a focus on the mergers and acquisitions insurance market. The new MGA will focus on small and medium-sized deals as its CEO, Nathan Sewell, says the business has identified a gap in the market for smaller firms, according to Private Equity Wire.

Community Underwriting makes deal with Japanese giant

Community Underwriting has announced it has entered into a binding authority agreement with Mitsui Sumitomo Insurance (MSI). The agreement will enable Community to continue to expand its offering to not-

for-profit clients and brokers, the firm said. The deal will see MSI become the security for the underwriting agency’s ISR, business package and accident and health products from 1 July 2017, as the Japanese giant became the security for Community’s motor product on 23 May. Berkley Insurance Australia will remain as the security for the specialist not-for-profit association liability and general liability products.

New Lloyd’s chairman begins work

Bruce Carnegie-Brown, Lloyd’s new chairman, began in the role on 14 June, following John Nelson’s retirement. With over 35 years’ experience across financial services, he was announced as Nelson’s successor in February. In a statement, CarnegieBrown said he was “very excited to get started” and that there’s “a lot to be positive about ... The excellence and expertise that exist in this market mean that, alongside the challenges, we also have many opportunities that I look forward to helping to develop in the months and years to come.”

Industry-first diversity survey launched

The 2017 Insurance Industry Diversity Survey was launched on 10 July and will provide industrywide benchmarks and statistics on diversity and inclusion across the Australian general insurance sector. For the first time, the industry’s status on D&I will be identified through the survey, affording insights into workplace inclusion on broad demographic areas such as gender, language, ethnicity, mental health and sexual orientation, as well as attitudinal feedback. Insurance professionals who are interested in participating in the survey can do so at http://survey. websurveycreator.com/macquarie/ divein until 11.59pm on 5 August 2017.

CREATING A SUCCESSFUL BLEND What can the industry expect from recently launched underwriting business Blend Insurance Solutions? The CEO of a recently approved Sydneybased Lloyd’s syndicate service company says the business sees a chance to not only deliver new products but to introduce efficiencies in products distribution. “The ultimate plan is to take the opportunity of being a start-up business, without the typical restraints that existing players would have, and deliver solutions to market,” Chris Newing, CEO of Blend Insurance Solutions, tells Insurance Business. “The core focus of Blend is going to be user experience, delivering through the use of technology and analytics, in order to [put] together solutions in a different way. We’re not bound to existing systems and processes or existing product designs, so we want to take advantage of that position and put together some new offerings for the market.” Blend’s business will be placed at Lloyd’s of London via specialty insurer Advent Capital (Holdings) LTD’s Syndicate 780, which is part of Fairfax Financial Holdings Ltd. Newing joined Blend in February after spending more than a decade with Chubb (formerly ACE) in a number of senior management roles across Asia-Pacific. He says that while the business’s short-term focus is the successful transition of Beazley’s Australian accident and health portfolio across to Blend, it has an appetite for other consumer-based coverages that complement what the business will do in the accident and health space.

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UPFRONT

UNDERWRITING AGENCIES UPDATE “We will be focused on both business and consumers for that product set,” he says. “Down the track, we will be open to other product classes.” Newing also confirms that brokers will play an integral role in Blend’s business model. “We see an opportunity … to deliver efficiencies in the way that brokers can access particular accident and health products in the short term from Blend, delivering them not only products that are going to work for … their customers, but also look[ing] to specifically identify and implement efficiencies [in] the way that they distribute product,” he explains.

“We’re not bound to existing systems and processes … we want to take advantage of that position” Newing says the plan to launch Blend was already underway when the Beazley renewal rights deal opportunity came about, and that deal will provide an opportunity to move faster into its medium-term plans. “In the short term, we’re obviously focusing on making the Beazley piece a success … and then, ultimately, all of the other pieces that we’ve been working on prior to this deal coming to fruition will start to come into play. “We’re very excited about what propositions we’ll be bringing down the track.”

Q&A

AHI’s new chief Danny Byrnes Chief executive officer ACCIDENT AND HEALTH INTERNATIONAL (AHI)

Fast fact Byrnes joined AHI as CEO on 2 May, moving from IAG where he most recently led CGU’s national authorised representative strategy. His career in insurance has spanned almost three decades and has encompassed experience in a range of market segments

Can you provide an insight into the current state of the A&H insurance market in Australia? New entrants into the accident and health space and the increasingly competitive nature of the industry have placed significant pressure on pricing. Broader coverages, increasing medical costs and soft market conditions have all impacted profitability. As is the case in many other segments of the industry, we believe that premium increases will be required across some accident and health portfolios to improve their sustainability. While there are challenges facing the accident and health space, AHI sees this as a huge opportunity to further develop our value proposition, expand our distribution and continue to work closely with our broker partners. We are strategically investing to deliver new electronic platforms to our broker network and ramping up the modelling of our data to segment and analyse our portfolio.

Do you think there are any common misconceptions as to the A&H insurance market? I’d say the biggest misconception is that underwriting agencies and insurers are making huge amounts of money in the accident and health space. This is a competitive market segment and in order to deliver an acceptable return we need to be focused on a combination of appropriate pricing and a strong value proposition. We believe AHI does offer real value to brokers and that has been the reason for our success and why we are regularly recognised with industry awards. Brokers keep doing business with us because of our strong focus on relationships, our delivery of flexible, high-quality service and the responsiveness of our underwriting and claims teams.

Can you talk about your priorities as AHI’s new CEO for the next 12 months? We have a number of priorities as we head into the next financial year. We’ll be focused on enhancing our systems to work more efficiently with brokers, further improving our service. We are focusing on product design, refreshing our policy wordings as well as continuing to grow our broker relationships – particularly in areas of distribution where we see further opportunity – such as suburban and regional brokers and authorised representative networks. Everyone is talking about digitally transforming their businesses but this must be underpinned by a clear market strategy. We are currently completing a detailed marketing strategy to be rolled out next financial year which will underpin our approach, and we’re updating the AHI brand to take us into our next phase of growth. Even though we are one of Australia’s largest accident and health underwriters, AHI still has the spirit of a niche underwriting agency. We listen to the needs of brokers and their clients and quickly adapt or develop policies to meet their needs. This is the core value we offer brokers and policyholders and will continue in the next financial year and beyond. And finally, we’ll continue to invest in our people. AHI’s success has been built on the passion and dedication of our people – it’s one of the reasons brokers enjoy dealing with us.

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PEOPLE

THE BIG INTERVIEW

PLAYING THE LONG GAME Three senior Australian leaders of Berkshire Hathaway Specialty Insurance talk about the first two years of building a ‘forever’ business SUSAN DONALDSON, Matthew Clarke and Craig Taylor are all insurance industry veterans. Each of these senior insurance professionals are founding members of Berkshire Hathaway Specialty Insurance’s (BHSI’s) Australian leadership team who, two years ago, began building the local arm of the iconic insurance group’s burgeoning property, casualty and specialty lines insurer. Launched in Boston in 2013, BHSI continues to grow beyond expectations and today has a presence in Asia, Canada, Germany, New Zealand, the UK and the US. At the end of 2016, the business had 800 teammates across the world, 25% more than it did in 2015. In April 2015, BHSI opened for business in Sydney. Two years down the track, Insurance Business sits down with Donaldson, Clarke and Taylor to discuss that time, as well as what’s to come. Asked why he joined BHSI at the time of its Australian launch, Taylor discusses the appeal of having the opportunity to build the local business from scratch. “It’s not often that you get to do that with such a powerful balance sheet behind you and such a powerful brand,” he says. Clarke describes being part of the BHSI start-up in Australia as “a once-in-a-lifetime opportunity”. “Being able to get in early and help shape the culture of the business and the team of the future was a big attraction for me,” he says. Donaldson, Clarke and Taylor all speak of the local team assembled and the culture established in the highest of terms.

“This is a great place to work,” Donaldson says. “It’s vivacious, it’s engaging, it’s collaborative. It’s a place where a strong collaborative culture is a priority – and it enables us to do great things for our customers.” In Australia and New Zealand, BHSI now has 80 team members. “As of next month there will be 19 on our property team. Two years ago we were walking into our former premises and I was number three walking in the door … that’s phenomenal growth,” Taylor says.

“We’ve got a very flat structure. Decisionmakers are sitting at the coalface every day, so brokers and customers are talking to decisionmakers every day,” he says. “Access is much more streamlined than it is in other organisations.” Clarke also cites the company’s flexibility and responsiveness as key distinguishing attributes. “There’s not a risk that we can’t look at,” he says. “We’re driven to come up with insurance solutions and we can’t hide behind treaty reinsurance. Everyone who sits out on the floor

“We’ve got a very flat structure. Decisionmakers are sitting at the coalface every day, so brokers and customers are talking to decisionmakers every day. Access is much more streamlined than it is in other organisations” But he also mentions the challenge of recruiting right. “We focus intensely on hiring people with both the right capabilities and character. We want to make sure that we’re the right place for prospective team members and that the team members are the right people for BHSI,” he says.

Standing out Clarke says the team and organisational structure distinguishes BHSI from its competitors in the marketplace.

here is empowered to make decisions for the business. That really sets us apart from our competitors.” In the ‘10 Ways to Get Rich’ list published on his website, Warren Buffett, CEO and president of Berkshire Hathaway Incorporated, encourages business leaders to be willing to be different and eschew the temptation to base their decisions on what everyone else is saying or doing. Taylor describes BHSI itself as a ‘different’ organisation. “This place isn’t normal and we’re very proud of that,” he says.

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PROFILES Name: Matthew Clarke Company: BHSI Title: Head of executive and professional lines Number of years in insurance: 21 Fast fact: Clarke is the former professional indemnity and cyber manager for AIG across Asia-Pacific

Name: Susan Donaldson Company: BHSI Title: Head of claims Number of years in insurance: 14 Fast fact: Donaldson was previously national financial lines claims manager at Zurich

Name: Craig Taylor Company: BHSI Title: Head of property Number of years in insurance: 25 Fast fact: Taylor is the former Australasian property manager of HDI-Gerling (now HDI Global)

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PEOPLE

THE BIG INTERVIEW BHSI – FAST FACTS

Foundation

BHSI launched in Boston, Massachusetts, in April 2013. Its founding president and CEO is Peter Eastwood

Expansion “Sometimes it’s going to take two or three years to get to know a customer and for a customer to get to know us and for us to transact business. And we’re okay with that” “We make a concerted effort to make sure that people get a sense of what we’re about and what our culture is about, no matter if it’s a customer or broker or somebody looking to become part of our team … The process that somebody goes through when they’re on-boarding into our world is different from what they’ll experience with another organisation. The way we engage with customers and brokers is different again and won’t be pegged to behaviours of others.” Part of the company’s culture, Donaldson says, is its thinking around the way its team should invest its time. “We invest in really getting to know our customers and broker partners,” she explains. “Some of the best interactions I have are simply sitting with a customer or a prospective customer and really talking about their risk, their policy wording, and how it would respond in certain situations. We really invest our time in getting to know our customer – and having the customer get to know us. So when they place a policy with BHSI, they really trust the coverage we are providing – and trust the partnership we’ll have at the time of claim. We have really solid, long-term focused relationships.”

In it for the long haul A crucial aspect of the company’s global strategy is to create a ‘forever’ business in each market it enters. So, what do its Australian leaders consider essential in working to achieve that objective? “First and foremost, making sure that we take a long-term view in all the decisions that we make,” Clarke says. “We talk a lot about patience. We look at the relationships that we’re building. Whether that’s with brokers or customers, we’re always looking for cultural alignment and taking that long-term view. We’re not driven by top-line growth. We’re looking to develop the relationships that we believe are good for our customers and, over time, will be profitable for the business.” Taylor notes that BHSI’s development in Australia has starkly contrasted with initial industry expectations. “People thought that we were going to go gangbusters – but we’ve been anything but that,” he says. “We’ve been very selective in the way we’ve gone about our business. There’s no pressure to scoop up and write everything that comes across our desk. Sometimes it’s going to take two or three years to get to know a customer and for a customer to get to know us

In addition to 14 US offices, BHSI today has 11 international offices, including three on Australia’s east coast

Strength

BHSI is part of Berkshire Hathaway’s National Indemnity group of insurance companies, which hold financial strength ratings of A++ from AM Best and AA+ from S & P

Iconic

Holding company Berkshire Hathaway Inc. is one of the world’s largest public companies, led by billionaire investor Warren Buffett, often referred to as the ‘Oracle of Omaha’ and for us to transact business. And we’re okay with that.” Clarke talks about BHSI’s formation of relationships with Australian brokers over its first two years. “The message that we first came out with – emphasising flexibility, responsiveness, sustainability, consistency of pricing … has become increasingly appealing to brokers. Today, as we start to see the market harden slightly, our message, and our advantages, will continue to resonate more and more with brokers,” Clarke says. Taylor has been surprised by how strong a reaction the business has received from brokers. “The way that the broker market has embraced us and accepted the way we’re doing business in Australia has been fantastic,” he says. When it comes to taking on new risks,

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Donaldson emphasises that the business can look at anything. “We have the strong balance sheet, but also the strong encouragement and strong cultural philosophy that says if there is a risk out there, if our customers are concerned about something, we want to sit around a table with them and talk about that risk,” she says. Clarke thinks that message has already been embraced by several brokers and customers. “We have certainly been challenged with some interesting risks, and provided products that aren’t necessarily widespread out there today,” he says. “In some cases we’ve worked with customers and brokers for 12 months to develop a solution. We certainly welcome the opportunity to do these sorts of deals.”

Clarke says that while BHSI sees opportunities in cyber, there’s also substantial risk to be considered. “As a market, cyber presents a lot of issues. Potential accumulation is one that insurers struggle with every day. We keep tight control on that, while balancing it with the need to put forward a meaningful product that customers value,” he says. BHSI devotes substantial efforts to the incident response aspect of its cyber solution. “We partner with Symantec in that space. We get great information on threats and exposures from them and they provide a great service to our customers who need to respond to and manage a cyber incident.” Clarke says the insurer will enter any line of

business where it sees a long-term opportunity – and when it finds the right people to bring on board. “That’s fundamental to our growth – meeting the right people and getting the right people in charge of that business,” he says. Donaldson adds: “BHSI was given the task globally of setting the gold standard in a general insurance company and taking as long as we needed to do that. That gives us a pipeline of endless possibilities in this space. We can look at anything and everything that makes sense for our business long term. “It’s incredibly exciting to be able to say our doors are open to consider any opportunity. We’re not everything to everyone, but we’ll consider literally any opportunity.”

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FEATURES

YOUNG GUNS 2017

YOUNG GUNS Meet 50 young professionals making their mark on insurance

WELCOME TO the 2017 Insurance Business Young Guns report. Recently, we turned to our readers and asked you to tell us about the up-and-comers in your businesses – the talented young insurance professionals on track to be tomorrow’s leaders. Once again, we were delighted to receive a plethora of top-calibre entries from across Australia. Needless to say, assessing the entries and deciding on those who would be profiled was an arduous process. In this year’s report, you will have the opportunity to become acquainted with 50 rising stars of insurance in Australia and to find out how they have attracted the attention of their colleagues. The insurance industry needs a consistent flow of candidates entering the sector and bringing with them the skills and the know-how not only to keep the wheels turning, but also to ensure it can deliver to customers in accordance with their evolving expectations. We are certain you will agree that the talented individuals who appear on the pages that follow are the kinds of industry professionals we can be confident will lead and continue to better our industry tomorrow and beyond.

YOUNG GUNS INDEX NAME

PAGE

COMPANY

Allen, Ben

High Street Underwriting Agency

Baker, Bridget

Sportscover Australia

Betton, Renee

CHU Underwriting Agencies

Bourke, Andrew

Dynamic Insurance Brokers

Briscoe, Benjamin

Allianz Australia

Burley, Damian

Marsh

Burns, Chloe

Insurance Advisernet

Chung, Travis

FP Insurance Brokers

Clarke, Louise

JLT

Craney, Peter

Kennedys

Curnow, Daniel

Centrewest Insurance Brokers

Daffy, Nick

PNO Insurance

Dale, Travis

Claim Central Consolidated

Drummond, Callan

Austral Insurance Brokers trading as Austral Risk Services

Eggers, Paula

Marsh

Evans, Zoe

Arthur J. Gallagher

Farag, Ahmed

Swiss Re Corporate Solutions

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CALLAN DRUMMOND

KRISTINE SALGADO

Senior account executive

Account director – financial and executive risks

AUSTRAL INSURANCE BROKERS PTY LTD TRADING AS AUSTRAL RISK SERVICES Age: 32

Callan Drummond has earned remarkable praise from both clients and colleagues for his work as a broker. He plays a key role at Austral in business development, and he’s described as an influencer, a decision-maker, a motivator and a team player, who demonstrates the highest level of honesty and integrity and has ethics beyond reproach. On top of that, Drummond is described as having demonstrated business acumen beyond his years. He entered the insurance industry as a trainee at the age of 19 and has now clocked up over 13 years’ experience in broking. One colleague told Insurance Business Drummond is known for his impressive insurance knowledge and service, while a client said he’s always willing to go the extra mile to help their company secure the right cover. During his career, he’s been chosen to participate in QBE’s Equip Program and Zurich’s exchange program and, in 2014, was a WA finalist for NIBA’s Young Broker of the Year Award.

NAME

WILLIS TOWERS WATSON Age: 31

Kristine Salgado is a firm believer in an exciting future for the industry. In fact, exploiting the exciting opportunities in insurance was the subject of her winning entry in the inaugural APIG Wotton + Kearney Scholarship. Salgado joined Willis in 2009, progressing from a graduate broker to an account director, and now a senior member of the FINEX team, managing a portfolio of large corporate clients. Greatly respected and considered a genuinely innovative, natural leader, she’s also actively involved in numerous business improvement projects, regularly develops thought leadership and educational material for clients, and assists in training and mentoring team members. Salgado has been heavily involved in creating a strong YP network in the business, championing the involvement of young brokers in the strategic direction of the company.

PAGE

COMPANY

NAME

PAGE

COMPANY

Fletcher, James

Malton Road

Pham, Jennifer

Swiss Re Corporate Solutions

Gunner, Tiffany

EBM/RentCover

Picchio, Sara

Marsh

Hatzinikolis, Arthur

Austbrokers SPT

Purba, Reena

Chubb

Haynes, Alex

SLE Worldwide

Quick, Chris

Dawes Underwriting

Headford, Winston

QBE Insurance

Robinson, Ben

Arthur J. Gallagher

Joiner, Daniel

Mecon Insurance

Kakulapati, Anirudh

CHUiSAVER Underwriting Agency

Robinson, William

Wotton + Kearney

Korth, Adam

Roderick Insurance Brokers

Ruka, George

JLT

Lilliott, Rachel

ATC Insurance Solutions

Salgado, Kristine

Willis Towers Watson

Lloyd, Stacey

Marsh

Sheehan, Jason

Berkshire Hathaway Specialty Insurance

Luckin, Mark

Lockton Companies Australia

Smorthwaite, James

JLT

Martin, Hinada

QUS

Spilsbury, Andrew

Gallagher Bassett

Moulden, Leigh

Doreen Insurance Solutions (CAR of Insurance Advisernet)

Trow, Brooke

QUS

JLT

Murdocca, Peter

Accident and Health International

Varkoly, Kerri-Anne

Neklapil, Matt

Gratex International Australia

Webber, Daniel

Webber Insurance Services

Partridge, Des

XL Catlin

Williams, Holly

BizCover

Pennetta, James

Vero

Winfull, George Kwasi

Arthur J. Gallagher

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FEATURES

YOUNG GUNS 2017 BRIDGET BAKER

RENEE BETTON

Underwriter

WA underwriting manager

SPORTSCOVER AUSTRALIA Age: 25

CHU UNDERWRITING AGENCIES Age: 25

Straight after finishing school, Bridget Baker began a traineeship with Sportscover and quickly established herself as a highly valuable member of the underwriting team. In fact, she impressed with her aptitude and ability so much so that she was promoted three times within a five-year period. Said to be instrumental in developing key new relationships for the business, her responsibilities include some of Sportscover’s major accounts and the underwriting of complex risks. Her ability to build relationships and demonstrate integrity in her dealings with brokers has ensured that brokers can quickly and confidently provide information to their own clients. Baker is described as having a drive and determination to succeed in everything she does and showing a deep commitment to personal development and increasing her industry knowledge. She has been earmarked by the company for higher management responsibility in the future, owing to Sportscover’s belief in her abilities and commitment.

BEN ALLEN

DAMIAN BURLEY

Liability underwriter

Victoria sales leader

HIGH STREET UNDERWRITING AGENCY Age: 29

MARSH Age: 32

Ben Allen plays an integral role in High Street Underwriting’s business, working with its Lloyd’s syndicates and Lloyd’s broker to develop and expand the agency’s product lines. His in-depth understanding of the technical aspects of policy wordings is said to have been of great benefit to the agency’s business and, in 2017, Allen was the recipient of High Street Underwriting’s Underwriter of the Year Award. Aspiring to build the agency’s suite of products to encompass aviation style risks and to work as an underwriter in the London market, Allen is described as a consummate professional who is passionate about insurance. While still a younger member of the industry, he’s a mentor and considered a ‘go-to’ person by several of the younger staff – and sometimes, even some of the older team members – in the agency. Not only is Allen determined to expand his own knowledge, but is similarly determined to share it with others.

In January 2016, Renee Betton was appointed to her current role, leading and managing the underwriting and customer service team to provide strata solutions to CHU’s customers. She’s responsible for a team of five underwriters and three customer service consultants, and coaches and develops each team member to achieve performance and personal development goals. Beyond her team, Betton is said to have become a role model to the wider WA branch and to possess a natural flair for leading and upskilling her co-workers. She challenges her team to be innovative, to find underwriting solutions and to strive to provide the best customer service. Feedback on service turnaround times has been impressive. Betton has twice been named CHU’s WA Employee of the Year (in 2013 and 2015) and is this year completing QBE’s Equip Program. She’s said to be looking forward to the disruption ahead in both the insurance and strata industry.

Damian Burley’s commitment to his work has seen him recognised with an accelerated path to leadership. Today, he leads business development in Victoria for Marsh’s largest client segment, Risk Management. In collaboration with Marsh’s national sales leaders, he has oversight of all RM prospective clients, including Australia’s largest private and public companies. Highlights of Burley’s career include having secured the business of a major energy and power company on a multi-year appointment outside of the standard tender process, as well as successfully defending two of the largest risk managed clients, which resulted in three-year reappointments. He’s taken a proactive role in developing colleagues for several years, seeking opportunities to assist others through mentoring. Notably, two of his long-term mentees have succeeded in earning promotions internally, both interstate and overseas. Looking ahead, Burley’s aim is to take on additional responsibilities with the ultimate goal of holding a strategic national senior leadership role.

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CHLOE BURNS

LOUISE CLARKE

Insurance adviser

Bid manager

INSURANCE ADVISERNET Age: 25

JLT Age: 26

At 22, Chloe Burns became one of the youngest insurance advisers to be accepted by Insurance Advisernet Australia as a stand-alone corporate authorised representative practice. A senior colleague described her attitude and business plan as “exceptional”, making an outstanding contribution to the network and her clients. Within two and a half years, she’s built a strong portfolio of clients and last year her business was awarded ‘Platinum Practice’ status for its achievement of high standards within IA’s best practice framework. Burns also completed IA’s Academy Program last year and, in 2017, was part of the winning IA team that took out Allianz’s prestigious Young Eagle title. She wants to be an inspiration to the next generation of female advisers and champions the progress of women’s influence in insurance. Her colleague believes Burns will “continue to grow, develop and refine her business to set the benchmark many others in our industry aspire to!”

BENJAMIN BRISCOE Senior underwriter – CTP fleets and commercial ALLIANZ AUSTRALIA INSURANCE Age: 27

He’s been described by one senior colleague as “a clear thinker, good listener, team player, hard worker and, above all, a confident young professional who would be an asset to any organisation”. Ben Briscoe is senior underwriter in Allianz Australia’s Retail Distribution Division, supporting the commercial insurance needs of its dealer and fleet leasing partners and driving product and strategy for its fleet leasing channel. In recent times, he’s been responsible for designing and delivering tailored insurance solutions to support some of the business’s largest partners, and has created an additional portfolio of $20m of new business in the process. Among his achievements, Briscoe was the 2014 Ron Shorter Memorial Award winner, the 2015 Allianz High Performance Award winner, and has underwritten more than $1m in new business for each of the last three years. He trains and mentors other underwriters within the business and, outside of insurance, is a volunteer for The Smith Family, mentoring high school students on transition from school life to work or further education. Briscoe hopes to continue building his skills through engagement in cross-divisional projects on next generation insurance products, including driverless cars, drones and cyber insurance solutions.

Louise Clarke supports and assists brokers in new business opportunities. Her role involves creating opportunities through networking, as well as working closely with brokers to present a bespoke offering relevant to the client’s or prospect’s needs. She’s described by one senior colleague as not afraid to challenge the status quo, asking questions “in the pursuit of excellence”. Clarke is well respected both within the office and in the wider industry. She’s a member of NIBA’s WA Young Professionals committee, working to help young members of the insurance space develop the skills they require. Clarke is also passionate about affecting positive change in insurance through greater diversity, reflected in her leadership of the WA committee for the Dive In Festival. She’s determined to further grow her insurance knowledge, in order to support her passion for sales and business development. “I look forward to watching her develop in the industry throughout the years to come,” Clarke’s colleague tells Insurance Business.

TRAVIS CHUNG Director FP INSURANCE BROKERS Age: 30

Travis Chung is the executive director of a small insurance brokerage based in North Melbourne. Previously a university tutor and lecturer, and also a qualified CPA and CIP, his language skills have assisted in promoting general risk products to the Mandarin- and Cantonese-speaking community. Chung is described by one colleague as “incredibly motivated and conscientious” and someone firmly focused on client value and satisfaction. “Whether it’s a 6am call or a 2am text, Travis will assist the client or other party to the best of his ability,” his colleague tells Insurance Business. Chung is also said to spend considerable time guiding his staff, helping to improve their technical and interpersonal skills so that each member of the team is capable of offering a high standard of service to clients. His goals for the coming years include continuing to grow the company’s book, and to better understand clients’ operations, in order to be able to provide a more personal and tailored service.

www.insurancebusinessonline.com.au

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FEATURES

YOUNG GUNS 2017 ANDREW BOURKE

PETER CRANEY

Managing director

KENNEDYS Age: 30

DYNAMIC INSURANCE BROKERS Age: 33

Andrew Bourke is the managing director of Dynamic Insurance Brokers in South Australia, managing a team of three staff and a portfolio of commercial and corporate insurance accounts. In 2008, Bourke received the National Insurance Broker Association’s (NIBA’s) Young Professional Broker of the Year Award for SA and NT. He was also NIBA YP SA chairman between 2009 and 2011, and has featured on Insurance Business’s Elite Brokers list twice (including our 2017 list). Bourke’s aim is to grow his business, as well as develop and train the future generation of insurance professionals.

NICK DAFFY Senior account manager and team leader PNO INSURANCE Age: 30

Nick Daffy joined PNO Insurance last September after almost 10 years with Arthur J. Gallagher (formerly OAMPS Insurance Brokers) in Horsham and Melbourne. Within six months of joining PNO, he was appointed a team leader. Daffy was a top 5 rookie broker at OAMPS and, last year, was named one of three Vic/Tas finalists for NIBA’s Young Broker of the Year Award. He’s also a member of the Vic/Tas NIBA YP committee, involved in the planning and execution of industry events, where he secures strong speakers to present on emerging and challenging risks. Daffy is passionate about giving back to the local community. At OAMPS, he was the youngest member in the Juno Program, where he mentored underprivileged, under-resourced individuals, coaching them in their search for employment.

Senior associate

Peter Craney is a lawyer in the Sydney office of global law firm Kennedys, recently promoted to senior associate. His seven years’ experience in the legal profession encompasses work in both Australia and the UK, and he specialises in marine, liability and property insurance law. He advises on marine and aviation cargo, hull and liability sub lines for various Australian and overseas market marine insurers and reinsurers, and has a developing practice in cyber insurance. Craney is the current treasurer of the NSW branch of the Maritime Law Association of Australia and New Zealand and is a committee member and head of the Sydney Marine Discussion Group’s events subcommittee. He’s also the vice-chair – and only lawyer invited to be involved – in the newly incorporated representative body, the Institute of Marine Insurance Professionals. According to one colleague, he’s played a significant guiding and advisory role in the establishment of that group. Craney aspires to be a partner of Kennedys and to lead its domestic push in the development and use of legaltech and insurtech in legal service to the insurance industry.

DANIEL CURNOW Partner CENTREWEST INSURANCE BROKERS Age: 32

Daniel Curnow manages a diverse portfolio of clients of all sizes across all classes of insurance. Buying into the Perth-based Centrewest Insurance Brokers at the age of 28 saw him fulfil a long-term career dream significantly earlier than anticipated. Curnow has played an integral role in the management team at the brokerage during a period over which the business has tripled in size. A colleague describes Curnow’s becoming a shareholder in Centrewest as “unequivocally display[ing] his commitment to the business”. That colleague also tells Insurance Business that Curnow has “continued to grow as an excellent insurance broker”. In May, Curnow was named as one of three WA finalists for NIBA’s 2017 Young Broker of the Year Award. In times ahead, he hopes to continue to increase his ownership position in the brokerage and help Centrewest grow to become a major name in insurance broking in WA.

www.insurancebusinessonline.com.au

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PAULA EGGERS Northern Territory state executive MARSH Age: 33

Paula Eggers is a trusted adviser to her clients and well respected by underwriters, and has been described by one senior colleague as “a major asset to the insurance industry”. She was recently appointed Marsh’s state executive for the Northern Territory, with her responsibilities including new business, client service and retention, and managing and mentoring colleagues. Over her time in the business, Eggers has been chosen for a number of accelerated leadership programs and has presented at NIBA’s annual convention as a specialist in the area of uranium and nuclear energy. She’s also gained a wealth of experience working for a number of leading global brokerages and her time in the industry has encompassed extensive travel, in order to serve global clients. This year, Eggers has been named a state finalist in NIBA’s Young Broker of the Year Award. Outside of insurance, her passion for giving back sees her regularly volunteering her time for a range of bodies, including the Alzheimer’s Association, the RSPCA and the Variety Club.

AHMED FARAG Senior casualty underwriter SWISS RE CORPORATE SOLUTIONS Age: 33

One colleague describes him as a “genuine guy” who is “not only interested in delivering commercial success, but is also an outstanding advocate for our industry”. Meanwhile, a broker partner has praised his professionalism and attitude and told Insurance Business, “We need more underwriters like him.” Ahmed Farag manages the profitability of Swiss Re Corporate Solutions’ liability portfolio nationally and is also responsible for driving market development and strategy for the casualty portfolio. He plays a leadership role in sharing knowledge and educating fellow team members and brokers on casualty underwriting issues, as well as public and product liabilities and exposures. Over the course of his career, Farag has been nominated for numerous awards, recognised as a rising star of the industry. His colleague further says he uses his “incredible knowledge to support his broker partners to deliver customer-centric solutions – a rare trait in a market that often descends into a ‘one size fits all’ mentality”.

TRAVIS DALE Head of operations – Australia and New Zealand CLAIM CENTRAL CONSOLIDATED Age: 28

Travis Dale is described as a natural born leader and an innovative and strategic thinker, who possesses a wonderful ability to develop strong teams to drive positive outcomes for the business. Ten years ago, he joined Claim Central, a claims management service provider that was recently named by the AFR as the eighth most innovative company in Australia. Today, Dale is responsible for all aspects of onshore and offshore operational performance, continuous improvement, strategic projects and the P&L budget across all Claim Central Consolidated businesses, working with key service leaders. He played an instrumental role in the development and implementation of the organisation’s world-first digital claims management solution, ClaimLogik, as well as enhancements to the platform. His key achievements to date also include the development of Claim Central’s Lifecycle tracker – a single source of truth for its cycle time performance – and the co-development of a refreshed business strategy, which has seen improving operational efficiency and set the organisation apart from competitors with market-leading claims turnaround times. His overarching career goal is to see Claim Central Consolidated recognised as an innovative and progressive thought leader in the insurance industry.

www.insurancebusinessonline.com.au

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FEATURES

YOUNG GUNS 2017 TIFFANY GUNNER

ARTHUR HATZINIKOLIS

Client services manager – west

Account executive

EBM/RENTCOVER Age: 31

AUSTBROKERS SPT Age: 27

Tiffany Gunner supports her team in delivering outstanding levels of customer service. Her current role requires her to provide leadership, direction and ongoing coaching and development to her team members, to ensure each of them is contributing to meeting company targets. Gunner began her insurance career in 2012 as an administration assistant and has since taken on a variety of roles. One colleague told Insurance Business he met Gunner through her broking role, where she stood out for her professionalism, knowledge, ability to manage clients, and attention to detail. “She has tremendous drive and passion for the industry,” the colleague says, adding that Gunner works hard to have a positive impact across the whole organisation. “She finds satisfaction in breaking barriers and stretching herself to move outside of her comfort zones … She is and will continue to be an inspiring manager and person within the industry.”

He demonstrates a consistent approach to providing ‘above and beyond’ customer service and has achieved record-breaking service, sales and income results. Arthur Hatzinikolis is a senior account executive in the Austbrokers SPT team in southern Sydney and, last year, was a participant in the 2016 QBE Equip Program. He’s said to be “relentless” when it comes to pursuing “tailored, effective, comprehensive and competitive insurance solutions” for his clients. Among his key achievements, Hatzinikolis has overseen the tripling in size of the SPT in-house private pleasurecraft insurance portfolio. He’s described by one industry colleague as always displaying a professional attitude, being highly efficient and possessing an in-depth knowledge of insurance products. “Arthur is no doubt a leading broker in his field and a great asset to the broking industry,” the colleague tells Insurance Business.

JAMES FLETCHER Director MALTON ROAD Age: 33

In 2015, James Fletcher started his own business, Malton Road Advisory, which is part of the Westcourt General Insurance Brokers network. “It’s amazing to see how many people within our network have been able to build successful businesses through effective planning, determination, perseverance and proper network,” one of Fletcher’s Westcourt/NAS colleagues told Insurance Business. “James is certainly leading the way in a lot of these aspects, and for any newer ARs who join our network, Malton Road Advisory is a business they should aspire to.” Last year, Fletcher was a state finalist for best performing AR in the Westcourt network. His business achieved almost 100% growth in its second year of operation and is on track to double this in 18 months. Fletcher is also said to be generous with his time and will offer support to any AR within the network who requires it. Ongoing, he mentors new and existing ARs.

ZOE EVANS Senior account executive, Canberra ARTHUR J. GALLAGHER Age: 33

Zoe Evans has enjoyed what’s been described as a “spectacular rise” with Arthur J. Gallagher in Canberra, swiftly working her way through the ranks to her current senior account executive role. Insurance Business understands this substantial success comes from Evans’ commitment to client advocacy and education, and her technical knowledge coupled with sales acumen. Evans consistently demonstrates unwavering commitment to exceeding clients’ expectations and one senior colleague has even described her client retention levels as “extraordinary”. Over the past two years, she has grown her book significantly, unlocking opportunities that might otherwise have gone elsewhere. Because of her exceptional results, Evans is highly regarded within the Australian business, but her success has also been noticed at a global level – Evans has secured a highly prized invitation to represent Australia at the biennial global ‘Power of Gallagher’ event in Las Vegas.

www.insurancebusinessonline.com.au

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HINADA MARTIN Operations manager QUS – STRATA INSURANCE Age: 26

Hinada Martin joined QUS in 2015 as an underwriter. Over the past two years, she’s quickly progressed to team leader and today is its operations manager, as well as being tasked with managing the underwriting service team. In her role on the QUS senior leadership team, Martin has played a crucial part in the implementation and management of recent organisation projects, including QUS’s work-from-home initiative. Last year, the business abolished set work hours, empowering staff to choose when, how and from where they wished to work. The initiative has been the catalyst for increased employee satisfaction and retention, and it was Martin’s task to ensure the success of its implementation. And according to a superior, she’s done an “exceptional job” in the execution of this important project. Martin looks forward to continuing to play her role in the ever-growing success of her team and the wider QUS organisation.

www.insurancebusinessonline.com.au

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FEATURES

YOUNG GUNS 2017 GEORGE KWASI WINFULL Account executive ARTHUR J. GALLAGHER Age: 30

George Kwasi Winfull is an approachable character who’s constantly looking to learn and goes out of his way to meet client needs. An account executive in the Sydney branch of Arthur J. Gallagher’s financial and professional risks team, he provides support and advisory services to large corporate and professional services firms, including ASX 200 organisations. After becoming a broker seven years ago, Winfull joined AJG in 2014 and has become one of the company’s youngest product champions. He’s also part of the AJG internal training group, which develops the skills of young AJG brokers, and an active member of the Lloyd’s Australia Development Group for young IPs. A senior colleague says that since day one at AJG, Winfull has displayed a high level of enthusiasm and work ethic. “George certainly has the necessary skills to progress far in this industry,” his colleague says.

RACHEL LILLIOTT Operations ATC INSURANCE SOLUTIONS Age: 31

Rachel Lilliott is another hard-working young insurance professional considered by colleagues to be one to watch. She began her career as a broker services consultant with Lumley in 2010 and, today, as part of ATC’s Melbourne team, is tasked with maintaining and building her portfolio in the construction/mobile plant and machinery space. Lilliott is passionate about the importance of providing exceptional customer service to her panel of brokers while ensuring she maintains a profitable portfolio. She’s also passionate about making a career in insurance and is a senior member of the Young Insurance Professionals (YIPs). Having undertaken a number of roles within YIPs over the past two years, she’s currently joint Australasian vice president, and is committed to helping those new to the industry with their own career aspirations and in improving their understanding of insurance. It’s the enthusiasm and drive of young professionals like Lilliott that will help raise the profile of insurance among young jobseekers.

www.insurancebusinessonline.com.au

REENA PURBA Senior underwriter – financial lines CHUBB Age: 29

Reena Purba is a senior underwriter in Chubb’s financial lines team, overseeing a portfolio that encompasses multiple lines of business, including D&O, professional indemnity, crime, financial institutions and cyber. That portfolio is made up of large, complex businesses, including some flagship client accounts and multinational placements. Playing a key role in the growth of the cyber portfolio, Purba has been involved in constructing a new cyber scheme with a global insurance broker partner. She’s also been involved in several educational seminars and presentations across the market for broking partners and clients, in order to educate them about a variety of subjects. Purba has also assisted her underwriting colleagues in expanding their own knowledge base by conducting professional indemnity training for those colleagues. Looking ahead, she hopes to become a mentor to other young insurance professionals and is keen to support women in their endeavours to pursue successful insurance careers. On that front, she certainly looks to lead by example.

WINSTON HEADFORD Development manager, corporate – broker distribution QBE INSURANCE Age: 29

Winston Headford began his career in insurance three and a half years ago, joining the industry after working in the legal profession as both a paralegal and then a solicitor. He commenced QBE’s Graduate Program in 2014 and has since advanced quickly, now undertaking the role of corporate development manager in the insurer’s intermediary distribution division and tasked with achieving sustainable business growth and product diversification alongside managing the existing book of business. Headford is a member of the YP committee of the Australian Insurance Law Association, which organises networking and educational events for young insurance professionals including brokers, underwriters, lawyers, claims handlers and insurance service providers. He recently participated in the NIBA Mentoring Program and is keenly interested in encouraging other young professionals to join the industry. When it comes to times ahead, Headford would like to explore insurance markets outside of Australia and hopes to be considered for inclusion in QBE’s Global Leadership Academy.

ANIRUDH KAKULAPATI

LEIGH MOULDEN

Chief disruptor

Director and principal

CHUiSAVER UNDERWRITING AGENCY Age: 35

DOREEN INSURANCE SOLUTIONS (CAR OF INSURANCE ADVISERNET) Age: 31

Anirudh Kakulapati joined CHU in 2008 as a data entry officer in the claims department of its Melbourne office. Now, he is the newest member of the CHU senior leadership team, having been appointed to the role of chief disruptor of CHU’s innovation lab, CHUiSAVER. In recent times, Kakulapati has held the role of service manager in Queensland, responsible for managing the CHU Queensland underwriting and customer service team, and has racked up a number of impressive achievements. Under his management, CHU’s Qld team has exceeded its budgets for three consecutive years, his team has exceeded its new business budget by $9m, and both policy count and net promoter scores have risen considerably. Additionally, he was recently nominated for the Council of Queensland Insurance Brokers’ (CQIB’s) Mick Lambert Baker Award, presented to the staff member of a CQIB business partner for ‘service above and beyond’. Kakulapati has aspirations of taking his career into the stratosphere, with a personal goal of being a company CEO by age 40. One senior colleague tells Insurance Business, “I have no doubt he will achieve his goal … He is certainly someone to watch as the industry evolves into the digital future.”

Leigh Moulden is principal of Doreen Insurance Solutions, a CAR of Insurance Advisernet. A broker since 2009, he’s taken part in the IAA and QBE Excel Program as well as the Allianz Young Eagle Program, and began his own business three years ago. In 2015, Moulden was nominated for IA’s AR of the Year award and, this year, his business has received Platinum Practice status within the IA network. Since establishing the business, he’s achieved extremely impressive growth and a high retention rate, and a senior colleague describes him to Insurance Business as having built “a superb insurance practice in a very short timeframe. His growth year in, year out has exceeded our expectations and this is without compromise to the quality of service and advice he provides his clients”. Moulden has also taken on a role within NIBA’s YP Committee and is said to be always willing to lend a hand to a fellow AR or adviser within the IA network.

DES PARTRIDGE

PETER MURDOCCA

Underwriter – crisis management

Southern region manager/senior underwriter

XL CATLIN Age: 31

ACCIDENT AND HEALTH INTERNATIONAL Age: 34

Des Partridge is XL Catlin’s full-time product recall underwriter in Australia and has achieved a high retention rate in his first full year in that role. In addition, he is responsible for driving XL Catlin’s annual Knowledge Hub series, a three-state roadshow designed to educate and facilitate discussion of the topical issues and challenges facing the industry. His involvement in this has seen Partridge play an instrumental role in bringing awareness of crisis management and product recall solutions to the Australian insurance market. He is currently planning the launch of the 2017 series. Partridge strives to achieve broad expertise across all business classes, diversifying his skillset beyond underwriting and using innovative ideas to maximise process effectiveness. On top of that, he is a keen advocate of innovation and making change happen and is described by one colleague as “an obvious asset to XL Catlin”.

Since joining AHI in 2010, Peter Murdocca has been a regular standout performer, highly respected by his insurance colleagues in and outside of the organisation. Since 2015, he’s been responsible for AHI’s operations across Victoria, SA, Tas and the NT, managing the portfolio of existing business in the region with a key focus on growth and sustainability. One of the youngest to have taken on his current role, Murdocca has achieved beyond expectations; he’s successfully grown the southern portfolio by exceeding his team’s increasing budget and KPIs by more than 10% each year. It’s said that no job is too tough for Murdocca and that the business regularly receives positive endorsements of him and his team from both brokers and policyholders. He also spends considerable time mentoring his team and younger staff in the business. An extremely high achiever, he aims to be in AHI’s senior leadership team within five years – a goal which is supported by its current leaders, who have developed a strong career pathway for Murdocca.

www.insurancebusinessonline.com.au

FEATURES

YOUNG GUNS 2017 DANIEL JOINER Senior development underwriter MECON INSURANCE Age: 28

Beginning his insurance career as a broker, Daniel Joiner then joined Mecon Insurance as an assistant underwriter. Rapidly contributing to the success and growth of the agency’s Melbourne branch, he soon became an underwriter and, in early 2015, he began managing Mecon’s WA portfolio, which has since achieved substantial and sustained growth. A senior colleague describes Joiner as an asset to Mecon and someone who shows “ true commitment to the industry with his natural enthusiasm”. Part of his current role involves providing NIBA CPD-accredited presentations, which offer brokers training in contract works insurance and contractor plant insurance. He regularly attends industry events and is keen to continue expanding his insurance knowledge. Ultimately, Joiner hopes for a long and enjoyable career in insurance and while he may eventually look to pursue a national role, he’s currently focused on growing Mecon Insurance’s reputation in WA as a well-respected and reputable insurer of choice for contract works insurance and contractor plant insurance.

GEORGE RUKA

ADAM KORTH

State claims manager Vic/Tas

RODERICK INSURANCE BROKERS Age: 27

JLT Age: 35

George Ruka is legally trained with an MBA specialising in leadership. His insurance career began in 2011 in QBE’s Graduate Program. In late 2013, he was headhunted to become divisional manager of Echelon Claims Service (a JLT subsidiary) and, in 2015, he was promoted to state claims manager of Victoria. Last year, his responsibilities expanded to encompass Tasmania, and he is now responsible for 27 claims staff. His swift progress through the ranks owes to Ruka’s track record of results at each stage and the demonstrated improvements of the claims teams he has led. According to one senior colleague, “George’s leadership and inspiration as a manager has greatly benefited all those fortunate to work with him”. Ruka has also been invited to sit on a steering committee within JLT, overseeing an international efficiency project. Ultimately, he’s interested in using his insurance, business and legal skills in the non-profit sector and has a special interest in microfinance organisations and programs that benefit the poorest communities around the world.

Senior account manager

An invaluable member of the Roderick Insurance Brokers team, Adam Korth manages a diverse portfolio ranging from high-end commercial policies to large domestic accounts, and since last year he’s increased the overall income of his portfolio by 30%. One senior colleague tells Insurance Business that Korth’s technical knowledge and understanding of the insurance industry is “outstanding, particularly for someone so young”. Additionally, he says Korth’s “strong desire to ensure his clients receive the best cover is exceptional” and that that level of service isn’t limited to policy matters but includes his management of clients’ claims. Among his other key achievements, Korth has achieved successful claims outcomes for three clients through FOS, has recorded impressive new business income in recent times, and has successfully completed QBE’s Equip Program. Korth’s longer-term goals including completing an MBA, in order to broaden his business acumen, and improving his technical expertise across a wider range of industries.

HOLLY WILLIAMS Customer value manager BIZCOVER Age: 27

Holly Williams joined BizCover after six years in the general insurance sector. She has responsibility for driving initiatives that ensure BizCover’s customer centricity. She also manages a team across multiple functions of the business, including service processing, call centre, retention, collections and claims. Recently, she has been integral in the launch and rollout of BizFunding, Bizcover’s monthly instalment funding initiative. Williams continually strives to improve BizCover’s processes and procedures by making it easier to do business with the organisation. One senior colleague says Williams is a key leader within BizCover and a strong mentor to many new members of her team.

www.insurancebusinessonline.com.au

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MARK LUCKIN Associate – financial lines LOCKTON COMPANIES AUSTRALIA Age: 28

After completing university studies in law, Mark Luckin embarked on a career in insurance. Today, he’s heading up Lockton’s financial lines and cyber team. Luckin has been with LCA for more than three years now and is described as being a dedicated and enthusiastic employee, well respected among his peers and colleagues, as well as being held in high regard for his professionalism in the wider Australian professional lines sector. Among his achievements, Luckin has authored white papers related to the subject of financial lines of insurance. A young professional contributing above and beyond, Luckin is also the current chairman of NIBA’s YP committee in WA and a board member of AILA in WA. One of his peers says Luckin continues to be “highly energised and enthusiastic” and that his colleagues look forward to supporting him and his ongoing development in the insurance industry.

MATT NEKLAPIL Account director GRATEX INTERNATIONAL AUSTRALIA Age: 31

Matt Neklapil is key account director, responsible for the relationship and satisfaction of Gratex International’s largest clients, as well as being a project leader, managing the business’s most complex projects. He’s played an instrumental role in building Gratex’s award-winning UPM platform, an underwriting process management software suite designed for underwriting agencies in Australia and New Zealand. He’s also contributed significantly to improving the speed and quality of the business’s project delivery. “I believe Matt truly is a Young Gun that stands out in the services space,” one of Gratex’s clients, who’s worked with Neklapil for more than five years, tells Insurance Business. In fact, it’s no surprise to the business when clients request him specifically to work on a new project. Neklapil also mentors junior members of the team in their project roles. His goal is to contribute to the growth of business and efficiency of brokers, underwriting agencies and insurance companies by managing strategic technology projects and leading the Gratex organisation.

STACEY LLOYD Queensland state mining practice leader MARSH Age: 31

Stacey Lloyd manages a team servicing the needs of various clients, from exploration companies to global mining houses, government bodies, utility providers and mining services firms. Her experience in catering for the needs of resources businesses is said to have been invaluable to Marsh, being a significant factor in its successful appointment as sole insurance broker to one of the world’s largest resource companies, following a tender process last year. Lloyd has gained management experience by participating in Marsh’s internal programs and, according to a senior colleague, her focus on personal and professional development has been central to her achieving a rapid rise within the business. Lloyd is also committed to mentoring colleagues, in order to assist them in achieving their own career potential and in availing themselves of some of the types of opportunities she’s been afforded over time. This year, she’s been named a Queensland state finalist for NIBA’s Young Broker of the Year Award.

www.insurancebusinessonline.com.au

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FEATURES

YOUNG GUNS 2017 KERRI-ANNE VARKOLY National manager – operations JLT Age: 32

Kerri-Anne Varkoly is an advocate for women both in insurance and the wider business community. In recent times, she was instrumental in launching the inaugural ‘Women at JLT’ event, to prompt discussion around young women working. Owing to its success, the business is now looking to hold similar events across the entire JLT business globally. Having started her insurance career at Liverpool Insurance Brokers in 2002, Varkoly joined JLT in 2005 as an account broker and now directs, manages and coordinates the operational activities for JLTA , tasked with improving productivity, efficiency and service levels. She manages more than 20 employees and has achieved a number of business-critical initiatives of benefit to the JLT group. “She has been able to streamline our own operations, making our client services more efficent and effective,” a senior colleague told Insurance Business. “Her work has made enormous change to JLT and has delivered outstanding results.”

DANIEL WEBBER Director WEBBER INSURANCE SERVICES Age: 29

Daniel Webber is the director of Webber Insurance Services and its sales manager, leading a team of four. He’s responsible for all new business enquiries as well as managing his own client portfolio. Webber became a director of the business at the age of 25, and has been named an Insurance Business Elite Broker for the past three years. He spends a great deal of his time working with his team in a mentoring role and enjoys seeing them achieve both business and personal goals. “I have known and worked with Daniel for a number of years and have, at all times, found him to be honest, forthright and prepared to go above and beyond to look after his clients’ insurance needs,” one industry colleague of Webber’s told Insurance Business, who went on to praise his expertise and professionalism. Looking ahead, Webber will continue to strive to see Webber Insurance Services become a leading national insurance brokerage.

SARA PICCHIO Transactional risk executive MARSH Age: 33

Sara Picchio is regarded as one of the most enterprising, engaged, dynamic and hard-working employees in Marsh’s private equity and M&A team, consistently delivering excellent results for clients since commencing with the organisation. She’s responsible for advising Marsh clients involved in mergers and acquisitions in Australia and New Zealand, focusing on structuring and negotiating transactional risk insurance programs, including warranties and indemnities (W&I) insurance, for private equity funds and strategic investors on both domestic and cross-border transactions. Since entering the W&I insurance market last year, Picchio has contributed to the structuring and execution of some of the key transactions in the Australian M&A space involving private equity funds, strategic buyers (both listed and unlisted), and sellers. She’s also built the first aggregate database of W&I statistics for the Australian market, with the intention of sharing the current trends in the market and influencing its future developments. Picchio is also participating in W&I education sessions and insurance events in efforts to enhance the W&I insurance knowledge in the M&A market.

ANDREW SPILSBURY Marketing manager GALLAGHER BASSETT Age: 31

Drew Spilsbury is Gallagher Bassett’s head of marketing for Australia and New Zealand. Leading a team of six, he has executive accountability for the company’s marketing and internal communications functions. He’s had responsibility for implementing a social media strategy, which has positioned GB as the most-followed claims provider in Australia. In the last six months, the business has generated several million dollars in revenue through sales opportunities sourced through LinkedIn. Spilsbury’s writings have been published in leading broker publications, including Insurance Business, and he’s the chief editor of GB’s newsletter, GB Advantage, which has 16,000 readers per month. This year, he was appointed to GB’s senior executive team, making him the youngest executive in the company’s history. A very senior colleague speaks of Spilsbury in the highest of terms: “He has the confidence and respect of the global executive team and is quickly moving his influence from Australia and New Zealand to the US and the UK. He has had a profound effect on the entire global marketing team as a mentor and collaborative partner. Statistics show that when our Australian sales teams engage Drew and his marketing team for support and insight, our win rate increases by over 50%.”

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ALEX HAYNES Underwriter SLE WORLDWIDE Age: 24

Alex Haynes is responsible for underwriting SLE’s hospitality portfolio, said to be one of the largest portfolios of rural and regional pubs in Australia. Haynes works with brokers to tailor sustainable risk management and transfer solutions for their clients and has recently been branching out into underwriting of the Pacific Underwriting industrial and commercial property accounts. It’s taken Haynes only three years to progress from an intern to a driving force of the property underwriting team. He’s described as being “at the forefront of a new generation of underwriters who understand and utilise the value of risk and claims data to drive decision-making in underwriting a property portfolio”. It’s his aim to progress through the industry to a managerial role, either in the agency space or a large international insurer. Demonstrating a strong dedication to his work and a willingness to assume additional responsibilities, one senior colleague describes Haynes as “well placed to become one of the next generation of leaders in the insurance industry in Australia”.

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FEATURES

YOUNG GUNS 2017 JAMES SMORTHWAITE

BROOKE TROW

Account executive – financial lines group

QUS – STRATA INSURANCE Age: 34

JLT Age: 26

James Smorthwaite is only two and a half years into his insurance career and already proving he’s one to watch. Day to day, he provides broking support to the senior financial lines brokers, specialising in insurance programs for large commercial and financial institutions. He places complex risks in the D&O liability, professional indemnity, crime and cyber liability space. Outside of JLT, Smorthwaite is racking up impressive achievements, including his NSW top three finish last year in the Ron Shorter Memorial Award for Professionalism in Public Speaking. He’s also a passionate advocate for the education and development of young professionals in insurance, and is Australasian President of Young Insurance Professionals (YIPs). Smorthwaite is committed to helping newcomers to the industry with their career aspirations and understanding of insurance via the numerous educational seminars and networking events that YIPs organises. Down the track, his aim is to specialise and excel in the field of financial lines risks. He also hopes to achieve a reputation of trust and reliability in the market and to be seen as a strong advocate for his clients.

JAMES PENNETTA Senior business development manager VERO Age: 27

James Pennetta began his insurance career 10 years ago in the ACT in a junior claims role, before moving into underwriting and then distribution. Now he works with broker intermediaries on a range of product lines, including property, liability, motor, construction and engineering, as well as claims. Working alongside a state manager, Pennetta is responsible for leading a team and assisting in difficult situations. A senior colleague says he’s quickly established himself dealing with complex, largescale broker clients and describes him as “persistent” and “always looking for outside-the-box solutions”. Pennetta is also described as a “credible, respected and admired asset to Vero and brokers alike”. In the future, he hopes to further develop his leadership expertise. He will continue working with senior management to drive group results and deliver growth opportunities via Suncorp’s Connected Customers strategy.

Underwriting manager

Brooke Trow’s focus is on providing first class service to QUS’s broker portfolio. She was one of the first staff members to join the QUS team, commencing in 2010 as an underwriter. Last year, she became a senior member of the management team and has played a key role in establishing several QUS programs and initiatives, including its work-from-home program, training and development activities, and the abolition of annual reviews and the retraining of managers to enable regular constructive and empowering conversations with their team members about performance. Trow is described as “a fantastic contributor to the success of QUS” and someone who has been able to successfully juggle the demands of a young family while continuing to grow on a professional level. Highly regarded at all levels within the organisation, over 50% of applications for QUS’s job shadowing and mentoring program are requests to be mentored by Trow.

CHRIS QUICK Motor underwriting manager DAWES UNDERWRITING Age: 35

Chris Quick joined Dawes Underwriting Australia six years ago as a motor underwriter. As his experience and natural leadership qualities soon became evident, he quickly progressed to the role of team leader. Immediately, he had a positive impact on the team, changing a number of business processes and quickly building strong relationships with key brokers. He was then promoted to motor underwriting manager, with an increased focus on business development and managing a team of eight staff. Quick has led the agency through two changes of insurers as well as the change of ownership from Calliden to Steadfast, and has grown the portfolio over the last two years by 15%. He attends a number of industry functions to be the face of the agency at a national level and is well respected not only within the Steadfast Group, but also externally with insurers, third party administrators and the intermediated broker channel. Quick’s efforts have helped put the agency in a leadership position in its segment.

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FEATURES

YOUNG GUNS 2017 JENNIFER PHAM

JASON SHEEHAN

Financial lines underwriter

Senior underwriter – property

SWISS RE CORPORATE SOLUTIONS Age: 28

BERKSHIRE HATHAWAY SPECIALTY INSURANCE Age: 33

“Every now and again you meet a young spark in the industry, and that’s exactly what Jen is.” This high praise is from a Swiss Re staff member speaking about Jennifer Pham, a financial lines underwriter with Swiss Re Corporate Solutions. Pham’s responsibilities include medical malpractice, D&O, professional indemnity, cyber and IT, and she provides valuable insights and advice to the senior leadership team across the business. Pham has been praised for developing and delivering growth across the fin pro book by vigilantly analysing and underwriting large ASX-listed corporations. She was part of a duo who won the Swiss Re Corporate Solutions 2016 deal of the year, worth millions to the business. It’s said that she’s also been instrumental in developing new wordings, which has allowed for the expansion of the portfolio. She hopes to become a senior underwriter in the near future.

According to one industry peer, Jason Sheehan is a young professional constantly striving to achieve and then surpass set goals, and working to consistently exceed expectations. Sheehan spent five years at Vero (his first underwriting role) and became a senior underwriter within 18 months. He later took on a six-month secondment to Perth to lead Vero’s WA property team to bring about positive change in the culture of the team and the scope of the underwriting appetite, which he achieved quickly. He was approached by BHSI to join its Australian team, and today is tasked with building its mid-market property proposition within Vic, Tas and WA alongside the national mid-market manager. A past committee member of both the ANZIIF YPs and YIPs, Sheehan’s ambition is to be seen as a strong leader and to say that he’s been able to give back to the insurance industry in a meaningful way.

WILLIAM ROBINSON Partner WOTTON + KEARNEY Age: 31

William Robinson’s involvement in the insurance industry began about 10 years ago as a paralegal. In 2015, he joined Wotton + Kearney (W+K) as a senior associate and has made a significant impact on the firm and its clients. Recently, he was promoted to partner, making him one of the youngest in W+K’s history. Robinson is experienced in a wide range of insurance litigation, with a particular focus on public and products liability and property damage claims. Appointed to Perth to build and run the general liability team, Robinson is said to have quickly learned the nuances of the WA market and has, in a short period, translated that into a growing practice. He’s widely regarded in the firm and the market for his passion and commitment to mentoring and developing junior insurance lawyers, which he views as an integral part of his role. Robinson is an active participant in numerous insurance industry groups and has become renowned for his research on sports-related concussions. He has given numerous presentations on the topic, engaging with several national sporting bodies and insurers. He also provides written updates and articles on recent developments in insurance litigation. In times ahead, Robinson hopes to continue building W+K’s WA presence to establish the firm as the preeminent choice for insurers.

BEN ROBINSON Team leader – specialised business lines ARTHUR J. GALLAGHER Age: 27

After spending just over 14 months with Arthur J. Gallagher, Ben Robinson is now team leader of its specialised business unit – commercial, overseeing a team of nine brokers and a book of over $10m GWP in commercial, national and global accounts. As well as making his mark in AJG, Robinson is a member of NIBA’s YP Vic committee, assisting in conducting learning and development sessions for young brokers, taking new approaches to innovative learning styles and better educating brokers as to the ever-evolving insurance markets. This year, he was named a Vic/Tas state finalist for NIBA’s Young Broker of the Year Award. Robinson is described by one industry colleague as someone demonstrating strong work ethic, knowledge and an overall positive demeanour in his approach to his work and clients. The same colleague reports he’s gained respect and confidence in such dealings in a relatively short period of time and has been proactive in sourcing training and development opportunities for both himself and his team.

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WINNING OVER THE YOUNG GUNS Hays Recruitment’s Carl Piesse shares insights into how insurance employers can scoop up their own share of hot new talent THE DEPTH of high-calibre young professionals profiled here attests to the excellent quality of candidates flowing into the Australian workforce and the impact that talent has the potential to make on a sector. So, how does the industry improve in its efforts to attract newcomers into the industry? Carl Piesse, business director of Hays Insurance, stresses the need for employers to be cognisant of jobseekers’ long-term career ambitions. “Candidates are looking at job vacancies in more detail to find out what that progression is, and they’re asking for more information,” he

Piesse says employers also need to give greater consideration to brand. “We’re seeing jobseekers do a lot more homework into an organisation; they want to see what others are saying about a company before potentially applying or before going for an interview,” he says. Piesse mentions candidates’ use of the website glassdoor.com.au. “Essentially they can see what people’s opinions and feedback on organisations are,” he explains. That therefore makes it essential for businesses to have a clear and consistent

“People are looking for exciting and interesting careers, and insurance generally offers that. It’s how you package it up and sell it” Carl Piesse, Hays Recruitment says. “They want to know if the role is a step up or if it’s a step in the right direction and make sure there is a clear career path on offer. “If insurance companies can promote an exciting career, where people will get training and development, mentoring and structured career paths, they’ll have a much better chance at attracting more people,” he says. According to Piesse, it’s important to be able to communicate the candidate’s potential career trajectory at the time of interview, as well as providing an insight into a business’s strategic direction. “The interview process is [a candidate’s] first touchpoint with the organisation, so it’s essential they have a great experience,” he says.

employee value proposition (EVP). “Their EVP needs to be lived across the whole organisation so that employees, customers [and] everyone have the same impression of what an organisation stands for,” he says. He says an online presence for a business is very important. “Candidates will research your organisation online. As a company, you need to be present on social media, [and] you need to have a strong careers page on your website. A great way to use social media is to profile stories of success in your organisation. We see a lot of top employers using social media as an attraction tool.” So, are there industries Piesse would single out because of their proactivity in working to

WHAT MATTERS MOST Last November, ManpowerGroup released the results of research involving more than 19,000 millennials across 25 countries, scrutinising their work ethic and priorities. These are the responses Australian millennials provided when asked to cite their top career goal

23% Make a positive contribution 22% Work with great people 21% Make a lot of money 12% Be a recognised expert in my field 10% Own my own company 7% Get to the top of an organisation 5% Manage others

Source: ManpowerGroup®, Millennials: A Career For Me, November 2016

attract top talent? When asked, he mentions the banking sector. “They’re well known for career advancement [and] they’ve got excellent graduate recruitment programs,” he says. “Accountancy firms are … [also] really good at attracting young talent because they have a reputation for providing training and development and giving [candidates] a solid grounding in accounting.” But Piesse is optimistic about the future of insurance. “I think insurance has got a really bright future. People are looking for exciting and interesting careers, and insurance generally offers that,” he says. “It’s how you package it up and sell it.”

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FEATURES

CYBER RISK

THE DEVIL IS IN THE DETAIL

Two experts discuss cyber threats and how an intelligence-led approach to addressing these exposures can reduce risk for underwriters, brokers and clients

THE RECENT WannaCry and Petya ransomware attacks have reminded the international community of the far-reaching havoc that can be caused within a short amount of time by maliciously motivated hackers. But in talking about the major cyber threats confronting the business community today, London Australia Underwriting’s James Crowther says the weakest links in any security chain are people without those intentions. “Social engineering seeks to exploit this weak link by appealing to people’s greed, fear or curiosity and deceiving them, in order to get them to reveal certain information or allow access to an IT system,” he explains. Crowther mentions phishing attacks, where fraudulent emails are sent with the hope of tricking recipients into sharing personal or confidential information (these are said to be on the rise). And then there are SQL injection attacks which, Crowther says, have been around for some time but continue to be commonly used to exploit companies. “If a web developer, for example, creates an application where the user can interact with a database to add information, this developer may not have ensured the database is configured to prevent SQL injection attacks,” he explains. “An attacker can then perform a ‘get request’ function, which essentially dumps the entire

database so they can obtain personal or confidential information.” Crowther also discusses distributed denialof-service (DDOS) attacks – another threat that can impact information availability and, often, business continuity. “The attack comes when the perpetrator creates a slew of traffic requests on a website at once, in order to crash it or severely cripple it for a period of time, leading to a loss of revenue,” he says.

often under-resourced in the compliance department,” Crowther says.

The changing legal landscape New mandatory data breach notification laws will likely take effect in Australia in about six months’ time. When that occurs, entities governed by Australian Privacy Principles will no longer be able to hide the fact of having suffered a ‘data breach’, as defined by the

“Often we feel that customers do not understand the risks that they face and how they can be easily mitigated via simple risk management steps” James Crowther, London Australia Underwriting And when it comes to accidental insider threats, where individuals unwittingly cause data breaches and the compromise of systems, Crowther says there is a general lack of understanding as to its seriousness and, in fact, its existence. “Some larger companies have included information security staff awareness training; however, it remains a great challenge for the SME sector to improve in this area as they are

Commonwealth Privacy Act, and will be legally required to notify affected individuals as well as the Privacy Commissioner. “Most importantly, with a 30-day time frame within which to assess whether an incident is an ‘eligible data breach’, the need for an efficient plan is all the more apparent,” Crowther says. He points to a recent report published by global law firm Clyde & Co, which said the average cost of a breach involving less than

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Brought to you by

10,000 records was $220,000, while for breaches involving in excess of 200,000 records the average figure was a staggering $6.5m. “What’s more, a large percentage – 36% – of the costs relate to IT forensic and notification costs not covered by traditional insurance policies, which cyber policies are specifically designed to cover,” Crowther adds. zWhen it comes to boardroom involvement, directors and officers who fail to take active steps to address and manage their company’s cyber exposures may find themselves in breach of their legal duties. Passive delegation of that responsibility will not suffice. How widely do business owners understand the need for cyber insurance in conjunction with robust resilience measures? “Often we feel that customers do not

understand the risks that they face and how they can be easily mitigated via simple risk management steps,” Crowther says. “A cyber insurance policy should form part of an internal incident response plan and should not be thought of as the incident response plan. Brokers and their clients can always seek advice via a third party security consultant to provide some value in the risk management and corporate governance space to help with being better prepared, which will ultimately lead to more favourable terms and conditions.” Jonathan McCoy, managing director of security consultancy firm Casobe & Co, reinforces how, as far as addressing cyber risk is concerned, proper preparation prevents poor performance. “An appropriate, documented and tested

incident response plan is fundamental as a first port of call in identifying, managing and mitigating a security breach for an organisation,” he says. “Having a predefined appropriate protocol for incident response, with trained staff and access to immediate resources and board approval, significantly improves the time in responding to a crisis, when the organisation is most vulnerable. It ordinarily decreases the overall impact, investigation costs and recovery time by a significant factor.” McCoy likens an organisation without an incident response plan to a ship, without navigational aids or lifeboats, sailing through dangerous waters against professional advice. “They lack the required knowledge and preparedness to deal with an incident, often

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FEATURES

CYBER RISK Brought to you by

LAUW UNDERWRITING Established in 2005, London Australia Underwriting provides brokers and clients with innovative products backed by first-class security. Any broker who wishes to establish a trading arrangement with LAUW is strongly advised to contact the management team. Details available at www.lauw.com.au.

AN INTELLIGENCE-LED APPROACH Jonathan McCoy recalls an occasion when a large organisation suffered a data security breach by a third party. “A failure in technical security controls and internal management protocol and procedure resulted in the exposure of client records,” he says. The company had a limited and informal crisis response plan and contingency response capability, and ultimately incurred significant expenditure in forensic investigations and over $450,000 in legal costs. “The company had no recourse to relative insurance or recoverability against the third party for costs. As such, it was a straight balance sheet expense,” he says. Since then, the company has sought to understand, manage and transfer risk. Works undertaken as a result of a prerisk assessment have meant a number of important benefits. McCoy says that in this situation the cost of a pre-risk assessment would equate to less than 3% of the company’s incurred expenditure for the breach. “These costs are ordinarily refunded to the client by way of professional discount or actual financial benefit, in the event of policy uptake. Moreover, with the outcome of the assessment, the ability to tailor appropriate terms means that effective and relevant cover could also be afforded for less than 10% of their incurred loss.”

resulting in fatalities and significant costs,” he says. “It is not a matter of if an issue will transpire, but when.”

Seeing the full picture McCoy says that companies are very often unaware of the true extent of their cyber security risks. “As a result, they and their advisers can make a good-intentioned decision on partial or incomplete information, leading ultimately to significant weaknesses in information security and great expenditure in remediation, should an incident occur,” he says.

capability in the event of a breach.” Additionally, McCoy says directors and officers are provided assistance in their corporate obligations with respect to their responsibility for cyber resilience and information security. Each of these measures is designed to help brokers secure the best protection against cyber risk possible for their clients. “Some insurance broking firms may not have the full technical resources or experience to appreciate a client risk exposure to cyber-related vulnerability,” McCoy says. “This is further complicated given the client may not necessarily

“Effective pre-breach services aim to identify risk, vulnerability and threat, to manage salient risk” Jonathan McCoy, Casobe & Co It’s for this reason that firms such as Casobe & Co provide pre-breach services to businesses. “Effective pre-breach services aim to identify risk, vulnerability and threat, to manage salient risk,” he says. McCoy says Casobe & Co provides detailed risk assessments on cyber vulnerability for its clients, seeking to establish their current risk and threats, including susceptibility and resilience to an identified risk. The assessment can also assist brokers to ensure there is limited scope for duplication of cover across a client’s insurance portfolio. “Once risks have been established and graded, we ordinarily provide a benchmark on their current security state and identify key areas of risk, which can be managed internally or mitigated,” he says. “Mitigation can be by way of a specialist cyber insurance product, both addressing the needs of the organisation and providing a response

know this either. As such, there is a risk that without professional advice in this area, their clients may be provisioned with a product that is inappropriate for their needs and fails to respond when needed.” Engaging the services of a security consultancy can mean not only better coverage, but potentially even a better price. “Taking an intelligence-led approach, an underwriter can be better appraised of client risk, and tailor key terms accordingly and/or provide subjectivities which can ensure a transitional increase in coverage,” McCoy says. “The client will make the investment to meet the subjectivities and be provided with a premium and coverage that is appropriate, and competitive.” No outcome is less desirable for a client than a policy that fails to respond when a loss event occurs. It is imperative to understand the client’s full risk exposures – to find the devil in the detail.

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FEATURES

BROKERAGE INSIGHT

INSURANCE HOUSE Jim Karafilis, head of Insurance House’s regional and rural division, talks about holistic solutions, taking advantage of new technology and working to attract and retain new talent

ALMOST 35 years ago, Insurance House was established in Echuca in rural Victoria. Today, it continues to grow across Eastern Australia and has become one of the country’s largest private insurance brokerages. Jim Karafilis heads up its regional and rural division, comprising both its rural broking offices and its authorised partner (or authorised representative) network. He talks about the business’s efforts to be a one-stop shop for its clients. Beyond its broking capabilities, its offerings include an in-house risk management service, workers’ compensation capabilities, premium funding and claims service. “We are able to provide a range of services seamlessly from within the group,” Karafilis tells Insurance Business. He talks specifically about what Insurance House offers on the claims front. “Individual clients, wherever they are across

the country, have access to an online claims system where they can view the progress of their claims, and they have a staff member within our claims area who is their conduit to make sure that their claim is on track and being managed correctly,” Karafilis says. He believes it is important for Insurance House to be a provider of specialty services. “For us to grow and develop and innovate, I think we need to have specialty because that’s really what our customers are crying out for,” Karafilis says. He also believes it is critical for Insurance House’s brokers and ARs to be more than just traditional insurance brokers. “In regional areas, [brokers] are living in the same communities as our clients, they’re potentially part of the same sports organisations as our clients,” he explains. “They’re more than just the insurance brokers; they’re true and trusted

A GROWING REGIONAL FOOTPRINT In July, Insurance House acquired two businesses – Insurance Hub in Tamworth and Insurance House 360 in Port Macquarie. Those acquisitions followed a transaction in April, in which Insurance House acquired Innovative Insurance Brokers in Wagga Wagga. The business said the acquisitions aligned with its strategy to broaden its regional and rural footprint nationally. “We are somewhat going against the grain,” Jim Karafilis said at the time. “A number of companies are retracting from rural and regional areas, while Insurance House is committed to engaging better with our customers by providing a specialist local and personalised service for our customers.”

advisers … and they’re able to offer solutions through the value-added services that we provide as an organisation. “That’s what our clients expect when they buy a policy – they expect a holistic solution to their insurance needs.” Karafilis also talks about Insurance House’s continued investment in technology. “As a group, there’s been a considerable investment in technology in building online platforms, both to help educate clients and to help them make more informed decisions about their buying needs,” he says. “Our customers don’t work your traditional 9–5 workday; they need to be able to access us and contact our people [and] find a solution 24 hours a day effectively.” And according to Karafilis, investment in technology is also necessary from an efficiency perspective. “We need to continue to be more efficient in everything that we do,” he says. “We need to be the best we possibly can and continue to invest in technology … to inspire confidence and deliver when it matters.” Last year, Karafilis played a leading role in the forming of a partnership between Insurance House and ANZIIF, in which the business became a corporate sponsor of the Careers in Insurance initiative. It’s a partnership aligned to Insurance House’s goal of establishing itself as an employer of choice. The business has worked with ANZIIF in talking about insurance at universities and schools, spreading the message about the opportunities available in the industry. One opportunity that Insurance House itself provides within its business specifically targets young people who elect to have a gap year between completing school and undertaking tertiary studies. “They get a taste of what a career is like,” Karafilis says. “Once they move on to university from regional areas, there’s a fair chance some will come back and, if nothing else, we’ve given them a great grounding through that period in what it means coming out of a school environment to work in a business.” Insurance House also provides mentoring. “We actually formally sit down with our staff and map out their career opportunities … and

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FAST FACTS

Top areas of specialty Affinity/Associations SME/Commercial Agribusiness Professional lines

Year founded: 1983 Leadership: Jay Fereday, managing director; Scott Leis, head of metro broking; Jim Karafilis, head of regional and rural; David Roddis, national manager – affinity, SME and advice; Hamish McDonald Nye, underwriting; Lee Cooper, chief operating officer; Peter Shand, chief financial officer; Chris Rathborne, group technology and marketing manager Group headquarters: East Melbourne, Vic Number of offices: 11 (East Melbourne, Vic; Sydney, NSW; Brisbane, Qld; Echuca, Vic; Boort, Vic; Erina, NSW; Kyabram, Vic; Narrabri, NSW; Port Macquarie, NSW; Tamworth, NSW; Wagga Wagga, NSW) Number of clients: 70,000

“We need to be the best we possibly can and continue to invest in technology”

encourage them to continue to develop their own careers and give them access to a lot of opportunities throughout our whole business,” says Karafilis. As to what’s ahead for the regional and rural division, Karafilis says he’s excited. “We’ve got a fantastic customer base [and] we’ve had tremendous growth through that business,” he says. “We see great growth prospects ahead in regional and rural Australia, both through our rural broking offices and our authorised partner network.”

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FEATURES

COMMERCIAL HULL INSURANCE

Battening down the hatches Cyclone Debbie is the latest event to highlight the ongoing challenges facing commercial vessel owners in North Queensland 48

IN ITS recently announced budget, the Federal Government announced it would provide $7.9m to the Australian Competition and Consumer Commission (ACCC) for the purpose of funding an inquiry into insurance premiums in Northern Australia. According to a statement in early July by Kelly O’Dwyer, the Minister for Revenue and Financial Services, the inquiry will monitor and report on prices, costs and profits in the insurance market for home, contents and strata insurance in northern Australia, focusing particularly on the impact of natural catastrophes on the region’s insurance market. The statement detailed that the Federal Government “remains committed to working with all stakeholders to develop solutions that will lead to sustainable reductions in premium levels, promote a competitive insurance market and make a recognisable difference for consumers in northern Australia”. “Importantly, the ACCC inquiry that the Turnbull Government has funded will be able to directly consider the impact on insurance premiums of tropical cyclone Debbie,” Minister O’Dwyer said. The category four storm struck Queensland in late March and, according to The Australian, created a $2bn hole in the $300bn economy’s revenue, with an estimated $150m hit to the state’s tourism sector. According to the Insurance Council of Australia (ICA), insurers had received more than 58,000 claims (as of 28 June), stretching from North Queensland to northern New South Wales, with a value of $988m. Club Marine Insurance described cyclone Debbie as the largest catastrophic weather event it had ever seen. When funding of the ACCC inquiry was announced, ICA CEO Rob Whelan said that while the insurance industry would “fully cooperate with the ACCC”, the investment was a “missed opportunity” for further mitigation spending. Whelan had previously said that the aftermath of Cyclone Debbie made clearer the urgent need for investment in mitigation for disaster-prone communities.

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“The Federal Government has already spent tens of millions of dollars on numerous reports into insurance in northern Australia, which have concluded insurers are operating in a competitive market and are appropriately pricing risk,” Whelan said. There’s also been criticism from Katy Gallagher, Shadow Minister for Small Business and Financial Services, and Jason Clarke, Shadow Minister for Resources and Northern Australia, who, in a joint media release, pointed to the fact that the Government has yet to respond to the report of its own Northern Australian Insurance Premiums Taskforce, which it received in November 2015.

“There is little appetite, unless there are really sufficient risk management and mitigation practices embedded by the shipowners” Jason Mathews, JLT The marine impact As well as home, contents and strata insurance customers, owners of marine vessels have also been affected. Stephen Rudman, practice leader – marine at Arthur J. Gallagher, comments on the impact felt by pleasure craft owners in

natural catastrophe-prone North Queensland in recent years. “We have seen significant impact on the retail side of things with many pleasure craft owners struggling to get insurance in the NAT CAT-prone regions of Australia –

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FEATURES

COMMERCIAL HULL INSURANCE

A SNAPSHOT OF QUEENSLAND’S STORMY HISTORY CYCLONE MAHINA Date: March 1899 Crossing location: Cape York Peninsula, Far North Queensland Facts: The category five storm is the deadliest natural disaster in Australia’s recorded history, resulting in more than 400 deaths THE INNISFAIL CYCLONE (UNNAMED) Date: March 1918 Crossing location: Innisfail Facts: It’s believed approximately 100 people in the town and surrounding areas died as a result of the category five storm CYCLONE LARRY Date: March 2006 Crossing location: Innisfail (and surrounding region) Facts: No lives were lost in the category four storm; however, according to the Federal Government, the damage bill totalled $1.5bn – the storm and subsequent floods caused damage to approximately 10,000 buildings, 500 of which were completely destroyed CYCLONE YASI Date: February 2011 Crossing location: Mission Beach, Far North Queensland Facts: The powerful category five storm resulted in one death and a damage bill of over $800m CYCLONE DEBBIE Date: March 2017 Crossing location: Airlie Beach, North Queensland Facts: The estimated damage bill for the category four storm is approximately $1.4bn

particularly North Queensland – in recent years, especially those on swing moorings where it is almost impossible to get an insurer to cover these vessels,” Rudman tells Insurance Business. And then there are those operating commercial vessels in catastrophe-prone areas. JLT’s Jason Mathews discusses the impact that natural catastrophes have had on the commercial hull insurance market in particular regions of Australia. “Anything north of the 26th parallel … there is little appetite, unless there are really sufficient risk management and mitigation practices embedded by the shipowners,” Mathews tells Insurance Business. According to Mathews, the landscape of

Singapore. There are a number of Lloyd’s syndicates that are opening in Singapore, and they very much have the appetite to write commercial hull in Australia,” he says. “So what you could foresee is probably that the actual business that’s placed here might actually move offshore.”

Finding the right protection So, in this current challenging climate, what do brokers need to know as they embark upon assisting their clients to secure appropriate commercial hull insurance protection? Mathews believes that, after an event on the scale of Cyclone Debbie, the issue of risk mitigation requires serious consideration,

“Marine-related risks are inherently complex and multilayered, requiring brokers to review and assess their clients’ exposures on a case-by-case basis” Stephen Rudman, Arthur J. Gallagher the commercial hull insurance market is starkly different to how it was five years ago. “The market has shrunk quite considerably here in Australia … You’ll find that most of the indigenous insurers in Australia … their appetite for commercial hull business has shrunk as well,” Mathews says. “Five years ago, certain insurance companies would have been looking to lead a commercial hull placement with, say, a $20m limit for a top-value vessel.” Today, Mathews says, the limit is more likely to be between $5m and $10m. “Globally, there’s enough capacity for commercial hull with the London market [and] Asian markets, especially in

with a simple question needing to be asked about whether there is a sufficient number of cyclone moorings for vessels. “Also, [it’s important] to make sure that those moorings are [regularly] inspected and to ensure that they’re still fit for the purposes of a cyclone,” he adds. “I think … we should be working with the government.” Mathews talks about activities on the risk mitigation front that brokers can assist their clients in undertaking. “I think brokers should work handin-hand with the client … to look at their cyclone contingency plans [and] work with them on solutions,” he says. “We [JLT] try to

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provide those services beyond insurance.” He says JLT works to assist commercial hull insurance clients overcome threats they face as a result of natural disasters through risk management advice and by assisting clients to be able to make informed decisions about their protection needs. “Marine insurance is a highly specialised space that requires experienced brokers with the appropriate technical skills and who ideally understand the Lloyd’s of London market as the exposures to ship owners and operators is significant,” Rudman says. “Marine-related risks are inherently

complex and multilayered, requiring brokers to review and assess their clients’ exposures on a case-by-case basis. They can then tailor specific insurance cover for their clients by adopting standard clauses and including specialist unique amendments and clauses that only come from deep experience in the industry.” To put this in context, Rudman says, ‘off the shelf ’ policies are generally inadequate to address marine commercial hull exposures, and this is why specialist marine brokers have such a crucial role to play. “Marine insurance brokers provide

intellectual capacity, which plays an integral role in the client value chain, which cannot be easily replicated by a digital platform or an ‘off the shelf ’ policy wording, especially in the mid-market and corporate segments where the scope of the risk is likely to be more complex and specific to a client’s business,” he says. “At this end of the market, a high-quality and differentiated experience is what resonates most with clients – ultimately, clients are looking for a trusted relationship, over and beyond a purely transactional response.”

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FEATURES

RISK ASSESSMENT

RISK ENGINEERING A RESULT

Insurance Business talks to Zurich’s Mervyn Rea about the insurer’s recent work on the risk assessment front and the opportunities it can offer brokers THE ROLE of the traditional insurance risk engineer is changing. Instead of just focusing on assessing risks for underwriters, they are now collaborating more strongly with customers, and balancing their skills equally between transferred and retained risk. As a result of there being greater information sharing around risk, providing risk insights and by working together in partnership, customers – no longer just underwriters – are reaping the benefits. “When we do our risk assessments on site, we’re taking care of assessing the risk that’s transferred to Zurich, but also the risk that customers retain themselves,” says Mervyn Rea, Zurich’s head of risk engineering for Australia and New Zealand. “We give advice and consult with customers about risks above and below the risk transfer retention level. So if we give advice that helps them better understand and remove exposures to their retained risk, it benefits the customer directly.” Rea says Zurich is sharing far more information with customers than it has in the past around risk-grading reports. “We’d previously thought, ‘that’s our Assessment Results, let’s not share it’, but now we better understand the value of giving our customers their full report, including risk improvements,” he says. “If they act upon them, we’ll lessen the exposure, the frequency or the outcomes should an event occur, and that’s going to have direct impact on their bottom line.” Rea says Zurich also now regularly provides customers with benchmarking insights that show how their risk profile compares

with that of their industry peers. “That’s something that’s quite unique that other insurance providers haven’t quite tapped into,” he says.

Getting buy-in Larger corporations with internal risk and safety professionals readily engage with risk engineers. But when it comes to small businesses that don’t have access to these resources, the reality is there is so much more at stake. “They’re usually family run or individually owned, they’re deeply rooted in maybe one community [and] maybe one town relies upon them from an employment point of view,” Rea says.

ransom. The [cyber] criminals know that, so they put up a ransom fee of maybe just a few hundred dollars, which they know that small businesses can just afford.” Additionally, a small business with less robust cybersecurity represents an easier entry point for criminals into the corporate world. “If a small business is contracted to do work for large corporates, it’s often an easier way into the larger corporate’s computer systems and data,” he explains. According to Rea, the challenge for small business is to recognise their risk management cost and resource constraints. It’s for those types of enterprises that Zurich has recently developed self-help app, Zurich Risk Advisor.

“If we give advice that helps [a customer] better understand and remove exposures to their retained risk, it benefits the customer directly” Mervyn Rea, Zurich Financial Services Australia He tells Insurance Business there are a host of reasons why small businesses are actually more exposed than their larger corporate counterparts and he cites cyber risk as an example. “They think that it’s big corporates that are targeted by cybercriminals when, in fact, those big corporates have probably got more money to spend on cybersecurity [and] they’re harder to crack into,” says Rea. “Small businesses … don’t have the access to help and support when they’re being held to

“With virtually no training … the intuitive app guides the small business owner to conduct assessments of their risks using similar methodology to that which risk engineers would use for much larger businesses and gives them the same outcome, the same kind of risk quality score,” he says.

The broker opportunity Rea says the app will provide benchmarking, allowing small business owners to see how their

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CASE STUDY: MCCOLL’S TRANSPORT

organisation’s risk profile compares against its peers. He also says there’s an opportunity for brokers to use Zurich’s app, in their own efforts to add value for clients. “Brokers could go out and do the assessment, they could provide the score, and eventually the benchmarking report, which shows them how they are scored [and] against others,” he says. “Brokers could actually perform that as part of their service offering and, at the same time, the broker is having a key touchpoint with the customer, they’re providing advice, and gathering information that’s useful to the underwriter so that … [they] can actually influence the underwriter … to come up with a fairer, risk-based price, where warranted … To me, it’s a win-win.” Good risk engineering can reduce the likelihood of an event occurring at all, but also substantially lessen the impact when a situation does arise. Rea discusses a corporate client of

Zurich’s that installed a fire protection system to protect crucial machinery. Some years later, a fire occurred and instead of the initially estimated US$11.2m loss before the fire protection was installed, the actual loss incurred was US$250,000. It’s just one instance, Rea says, when early engagement with risk engineering ultimately resulted in an optimal outcome for the business. “So, while it avoided significant loss to the insurer, it also avoided financial loss to the customer – financial losses that are often not even covered by insurance, such as brand and reputation. They were able to continue to deliver to their customers and improve their future contract negotiations. Avoiding potential risk is extremely beneficial to everyone involved in the supply chain – upstream and downstream; employees’ livelihoods are protected. “Can you imagine if that advice in the future came from the broker? A broker may traditionally

McColl’s Transport, a major transport carrier and distributor, has worked with Zurich’s risk engineers for several years, says Mervyn Rea. “We went on a journey with them to help improve their overall safety, concentrating on how they manage their drivers [and] improving and stepping up their entire safety culture amongst their employees,” Rea says. “We did a risk assessment and scoring of their risk profile throughout the journey, and every time they implemented our advice … we could see that their risk profile was getting better … That was also reflected in the premium.” However, far more significant were the savings McColl’s eventually observed, in terms of annual operating costs related to vehicle accidents. Rea says that in 2008, right before the transport carrier started working with Zurich, those costs totalled just over A$1.2m. “By 2011, their total operating accident costs for the year were $200,000,” he says. Not only did those costs dramatically drop, but the company’s WorkCover claims, which in 2008 amounted to A$1.7m per year, had also decreased to $270,000 per year by 2011. “And those savings go straight to the bottom line. It really increased their profit margin.” be focused on the cost of insurance – the premium. [But] if they help a customer – every once in a while – avoid an $11m loss, that’s more powerful. That’s a customer for life,” he says. “I think there’s a great opportunity for brokers … to provide that advice, and … that’s one of the things that the customer can’t get online [or by transacting] directly with the insurance market.” For more information on the Zurich Risk Advisor app, go to www.zurich.com.au/ general-insurance-for-business/products/riskmanagement-tools/zurich-risk-advisor.html.

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ce PEOPLE

CAREER PATH

GOT YOU COVERED

From his early days as a bodyguard to his insurance senior leadership role today, Vero’s Anthony Pagano has always been focused on protecting his clients 1992

PROVIDES PHYSICAL PROTECTION

1998 UNDERSTANDS SERVICE Pagano’s next move was into Zurich’s distribution arm as a broker executive (more commonly known as a business development manager). It gave him the opportunity to work across the full scope of a client’s insurance needs, from personal insurance to workers’ compensation and commercial covers, and led to him gaining a new appreciation for the breadth and variety of expertise that was required in order to offer excellent service.

2009 REACHES ‘ADULTHOOD’ Pagano’s next move saw him managing Zurich’s relationship with the Steadfast Group, as national broker manager. It’s a time he regards as the moment “the boy became a man”, opening his eyes to how all the parts of the insurance industry fit together. While his previous roles had focused on transactions and renewal cycles, this role necessitated Pagano working continuously on the strategy and positioning of the business. There was no start or end date – the work was constantly evolving.

2015 VENTURES INTO VERO After two decades with Zurich, Pagano joined Vero as sales manager NSW/ACT. He learnt the importance of coaching and cultivating a team to become a strong, integrated BDM unit, rather than focusing on individual performance. Six months later, Pagano became the head of commercial intermediaries, a role he continues to hold today. During this time, he has helped re-design Vero’s commercial distribution footprint and develop Vero’s online platform, VeroEdge, while managing relationships with commercial brokers and cluster groups.

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After finishing school, Pagano worked as a bodyguard and security guard across Sydney. He worked everywhere from nightclubs and bars to the Sydney Cricket Ground, but a couple of near-death experiences ultimately caused Pagano to re-evaluate this line of work. Unhappy Pagano wasn’t putting his university degree to good use, his father suggested he follow his cousin’s footsteps into insurance. Pagano agreed, thinking he’d only work in the sector for six months to keep his father happy.

1995 PROVIDES INSURANCE PROTECTION Pagano became a service officer in Zurich’s NSW workers’ compensation portfolio and was soon promoted to regional underwriter and eventually became assistant underwriting manager. The portfolio grew from $5m to $75m within a two-year period. During this time, Pagano learnt the importance of quality service as a differentiator, because the regulation of workers’ compensation prices meant the only way he could differentiate himself was by building a reputation for excellent service.

2006 ACQUIRES EXPERTISE Pagano became the national manager of Zurich’s aged-care portfolio. This was an opportunity to work with brokers to provide bespoke solutions to a niche industry segment. In order to support brokers and clients, Pagano had to specialise, so he became Zurich’s expert on the insurance needs for the aged-care sector.

2012 ACHIEVES STRATEGIC SUCCESS Pagano was promoted to head of commercial distribution, meaning he was now responsible for Zurich’s relationships with commercial brokers and cluster groups. The role involved managing the strategic relationships team and state operations teams to execute a national strategy. Together, they won both NIBA’s and Insurance Business’ s Insurer of the Year Award two years in a row and positioned Zurich as the number-one SME insurer.

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PEOPLE

OTHER LIFE

RALLYING FOR SUPPORT Arch Insurance’s Michelle Rudd reflects on an epic adventure to which, she says, words cannot do justice MICHELLE RUDD has just taken part in the annual Shitbox Rally, which sees teams of two driving ‘bomb’ vehicles from South Australia to far North Queensland. “Driving a 1991 Toyota Camry 3,800km on some of

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

the toughest unsealed roads in Australia was never going to be easy, but we were ready to battle it out to raise awareness and funds for the Cancer Council,” Rudd says. “We have no mechanical skills, have never been to the Outback and don’t camp, but we received overwhelming support from our local community and the industry.” Competing with a friend as the ‘Two Non Blondes’, Rudd admits the team didn’t know what to expect. But it was well worth it. “We pushed the limits of our experience in ways we never expected and had a smile on our face from start to finish,” Rudd says. “We’ve made lifelong friends and … we saw just how truly remarkable this country really is, all in the name of charity.”

$8,000

The total amount Rudd’s team raised in sponsorship and donations

$1.667M

The total amount 2017 participants collectively raised for the Cancer Council

$11.5M

The total amount the event has raised for cancer research over the past seven years

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