Insurance Business 7.06

insurancebusinessonline.com.au Issue 7.06

MOVING WITH THE TIMES

What new legislation means for brokers who specialise in transport and logistics

CYBER FOR SMALL BUSINESSES

How to convince SME clients that cyber insurance is a necessary expense

A PLAN IN ACTION

The secrets behind Action Insurance Brokers’ quarter-century of success

A JOB WELL DONE Elantis head Nick Cunningham on how he’s bolstered customer service by taking care of his staff

BROKERS ON UNDERWRITING AGENCIES Brokers name the top underwriting agencies across a range of specialties

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ISSUE 7.06

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CONTENTS

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42

UPFRONT 02 Editorial

Is it time to sell your brokerage?

04 Statistics

So far, 2018 is shaping up to be a lighter year for catastrophes

06 Head to head FEATURES

KEEP ON TRUCKING

How will emerging technology and new legislation affect insureds in the transportation and logistics sector?

SPECIAL REPORT

22

BROKERS ON UNDERWRITING AGENCIES

Brokers name the best underwriting agencies across 11 specialties, from cyber to professional indemnity

PEOPLE

BUILDING A BETTER WORKPLACE

08 News analysis

Are your small business clients still ignoring their cyber exposures?

10 Intelligence

Marsh & McLennan snaps up JLT in a mega-deal

12 Insurer update

FEATURES

46

GOLDEN RULES OF INSURANCE

Jon Stack of Action Insurance Brokers reflects on what’s led to his brokerage’s 25 years of success in the industry

General insurance has experienced an upturn in 2018 – but the skies aren’t entirely clear yet

14 Underwriting agencies update How underwriters are responding to autonomous vehicles

16 Opinion

Mentorship is the first step in reimagining the C-suite

FEATURES 52 Is too much flexibility killing productivity?

How to know if it’s time to put some limits on your flexible work policy

Elantis Premium Funding CEO Nick Cunningham has put a high priority on corporate culture – and it’s paid dividends for the firm’s broker clients

18

Brokers weigh in on the biggest challenges in marine insurance

PEOPLE

FEATURES

48

CREATE A WINNING PRESENTATION

Three tips that will help you wow your audience every time

54 Career path

Paul Harvey has made his mark at some of the biggest names in Australia’s insurance industry

56 Other life

Return to the land with farmer and broker Lachlan MacKinnon

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UPFRONT

EDITORIAL

Hungry for more

R

eflecting on the insurance industry in 2018, one word stands out above all others: acquisition. From AXA’s blockbuster purchase of XL Group to Marsh & McLennan’s move for JLT, there have been plenty of headline-grabbing deals throughout the year. However, while the big names might have stolen the spotlight, it would be wrong to overlook the sheer volume of moves made on a smaller scale – deals for brokerages, underwriters and wholesalers have poured in on an almost-daily basis.

Market participants expected M&A activity to accelerate in 2018, and that has proven to be the case. According to AIG, global insurance M&A activity had reached nearly US$9bn by the end of the first quarter, an 18% increase over the first quarter of 2017.

For the acquirer, there are plenty of advantages to buying an established business: a proven brand, a built-in customer base and a host of talented employees. But what’s in it for the small brokerage that suddenly finds itself on the ‘wanted’ list?

There’s a natural temptation to be bought out by a bigger player – a firm that can offer the resources and capital to make previously unreachable growth achievable For many, there’s a natural temptation to be bought out by a bigger player – a firm that can offer the resources and capital to make previously unreachable growth achievable, all for an attractive price. Many small companies are even able to retain their management teams and staff – it’s business as usual, but on a much bigger scale.

However, the prospect must be treated with caution. Ultimately, you’re putting your hard work in someone else’s hands. Even if a firm says you’ll retain your independence, that doesn’t mean you and your staff won’t be affected if their business takes a turn for the worse. Will you get an above-market price?

What level of financial backing and security will you receive? And is the business mix and ethos truly a match for yours?

If you’re considering a new start for your business, make sure you carry out your due diligence. Remember that any company that’s serious about your business needs to do a lot more than talk dollars – it needs to prove it can match the reputation you’ve earned.

The team at Insurance Business

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EDITORIAL Managing Editor Paul Lucas Journalists Alicja Grzadkowska, Lucy Hook, Jordan Lynn, Bethan Moorcraft, Ryan Smith News Writers Lyle Adriano, Krizzel Canlas, Terry Gangcuangco, Mina Martin, Gabriel Olano Staff Writers Hannah Go, Tom Goodwin, Libby MacDonald, Joe Rosengarten, Heather Turner Copy Editor Clare Alexander

CONTRIBUTORS Margaret Resce Milkint, Emma Bannister, Anna O’Dea

ART & PRODUCTION Designer Joenel Salvador Production Manager Alicia Chin Traffic Coordinator Freya Demegelio

SALES & MARKETING General Manager Peter Smith Commercial Development Manager Sophie Knight Marketing & Communications Manager Michelle Lam

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

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UPFRONT

STATISTICS

A break in the weather

The first half of 2018 was relatively untroubled by catastrophic events So far, 2018 hasn’t exactly been unmarred by catastrophes – heatwaves have afflicted many corners of the globe, providing an ideal environment for the wildfires that ripped through Greece, California and parts of Canada. Both Europe and Australia have been hit by drought – NSW is experiencing its driest year since 1965 – and Hurricanes Florence and Michael brought more devastation to the US coastline.

84

Number of natural disasters worldwide in the first half of 2018

48

Number of man-made disasters worldwide in the first half of 2018

Yet the first half of 2018 was comparatively quiet for catastrophes on a global scale – not only are losses lower than the same period last year (US$36bn compared to US$64bn), but they’re also well below the 10-year average of US$125bn. Natural catastrophes accounted for US$34bn of total economic losses worldwide, while man-made disasters made up the remaining US$2bn.

3,900

THE COST OF NATURAL DISASTERS Aon Benfield’s analysis of natural-disasterrelated losses worldwide over the past five years underscores the fact that 2018 has been relatively benign in terms of natural disasters so far. What’s troubling, however, is that a significant gap between insured and uninsured losses persists throughout the world, most notably in the Asia Pacific region.

4,600

Global fatalities due to catastrophic events in the first six months of 2018

Global fatalities due to catastrophic events during the same period in 2017

Insured losses

Uninsured losses

Source: Swiss Re Institute, August 2018

TOTAL LOSSES DOWN

MAN-MADE VERSUS NATURAL DISASTERS

Total economic losses due to catastrophes were down 44% during the first six months of 2018 compared to the same period in 2017.

The number of man-made catastrophes spiked in 2005 and gradually fell for several years before being overtaken by natural catastrophes in 2010. For the last decade, the number of natural disasters has remained high, while the number of man-made events has generally continued to decline.

280

$140bn

Man-made

Number of catastrophes

$100bn $80bn $60bn $40bn $20bn

160 120 80 40

17 20

16

15

20

20

14

13

20

20

11

12 20

20

10

09

20

20

08

07

20

20

06

05

20

20

04

03

20

20

02

0 01

Previous 10-year average

20

1H 2017

20

1H 2018

Source: Swiss Re Institute, August 2018; all figures in US$

4

Natural

200

00

$0

Man-made

240

20

$120bn

Natural

Source: Swiss Re Institute, August 2018

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EUROPE/MIDDLE EAST/AFRICA

2014

$6bn $13bn

2015 2016 2017

ASIA PACIFIC

2014

2018*

2015

$0bn $10bn $20bn $30bn $40bn $50bn $60bn $70bn *First six months only

AMERICAS

2016

2014

2017

2015

2018*

2016

$0bn $10bn $20bn $30bn $40bn $50bn $60bn $70bn *First six months only

2017 2018* $0bn $10bn $20bn $30bn $40bn $50bn $60bn $70bn *First six months only

Source: Global Catastrophe Recap: First Half of 2018, Aon Benfield Analytics, July 2018; all figures in US$

INSURED VERSUS UNINSURED

INSURED LOSSES DROP

According to Swiss Re, because most of the disasters in the first half of 2018 happened in areas with high insurance penetration, nearly 56% of all losses were insured. That represents an improvement on the first half of 2017, when only 47% of total economic losses were insured.

Total insured losses fell by 33% in the first half of 2018 compared to the same period last year, and by 43% against the 10-year average.

Insured losses

$500bn

Uninsured losses

$40bn

$450bn $400bn

Natural

Man-made

1H 2017

Previous 10-year average

$30bn

$350bn $300bn

$20bn

$250bn $200bn

$10bn

$150bn $100bn $50bn $0

$0 2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

(first six months only)

Source: Swiss Re Institute, August 2018; all figures in US$

1H 2018

Source: Swiss Re Institute, August 2018; all figures in US$

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UPFRONT

HEAD TO HEAD

What’s the biggest threat to marine insurance?

From changing market conditions to newly emerging risks, marine insurance is facing a number of challenges

Andrew Kidd Head of marine NTI

Chief executive officer NM Insurance

Lyndon Turner

Matthew O’Sullivan

“In a market dominated by telematics, data, accumulations and trade sanctions, it’s emerging insurance solutions from non-traditional sources that present the biggest threat to marine insurance today.

The response to this is for insurers and brokers to remain relevant to customers in changing times by providing solutions, claims services and invaluable insights in addition to traditional risk-transfer products.

A threat of this nature also presents new opportunities. It drives us to review our own business practices, such as how we use data or how our simple products can be more broadly transacted to insure previously uninsured cargoes and parcels.”

“In the commercial sector, economic and technology influencers are being watched very carefully. Cargo protection will move quickly with technology. Compounding this is worldwide political change across markets, especially in the manufacturing sector, where shifting influencers will change cargo movements.

On the recreational marine side, there are weather influences in northern regions, a worldwide capacity change and a change in recreational asset spending that is putting pressure on boat sales.

Brokers and underwriters should be wary of these factors in the current marine insurance environment.”

“The increasing sophistication of customers is the biggest challenge facing the marine insurance industry. The explosion of e-commerce in the last few decades has meant local enterprises can now access global markets, leading to increased complexity in the logistics chain. New risks have emerged, including cyber risks, climate change impact and increasing protectionism around trade.

Marine insurers need to understand and get ahead of these trends. I’m confident that the marine insurance industry is collectively investing in the technical expertise and product development needed to stay relevant to our customers.”

Marine Practice Lead Zurich Asia Pacific

TAKING ON WATER Earlier this year, Lloyd’s of London – which controls around 20% of the world’s marine insurance market – announced it was considering closing some of its loss-making marine syndicates. According to a London broker quoted in The Wall Street Journal, “The [insuring groups] have been asked to come up with a viable plan until the end of [August] or risk closing down.” Reportedly, several syndicates have already downsized their marine business to the tune of approximately US$100m, and others are expected to make similar cuts. One of the most unprofitable line items is hull insurance, where brokers estimate premiums would have to double in order to be profitable.

According to a second broker, “Only about 18 syndicates were profitable on hull insurance over the past three years, and around 50 were in the red.”

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UPFRONT

NEWS ANALYSIS

The small business cyber gap Cyber insurance might seem like a topic that’s never out of the spotlight, but brokers can do more to help small businesses fully understand their exposures THE PAST several years have brought cyber attack after cyber attack, often leaving a trail of business downtime, financial loss and even legal action. Add to that the growing global focus on data protection, catalysed by the Facebook–Cambridge Analytica data scandal and a clampdown in regulation, and insurance brokers have had no shortage of evidence to make their case for the necessity of investing in cyber insurance.

But while most large companies are well versed in their cyber exposures by now – and are typically pumping a significant amount of cash into both cybersecurity and insurance

cyber growth, but clients need to be better informed, educated and supported around the risks that they face.

In September, research from Argo Group revealed that a staggering 100% of brokers in the US and UK cited cyber threats as a medium- or high-priority emerging risk in the next 12 months, followed closely by virtual technologies and the Internet of Things.

Similarly, Zurich found in its latest broker survey that cyber cover remains the dominant issue among SME clients – almost two in five brokers reported that they’re providing regular counsel to their smaller clients on the topic.

“Smaller businesses ... have been forced to spin a lot of plates, complicating the decision-making process” Paul Tombs, Zurich programs – many businesses at the smaller end of the scale are struggling to grapple with the extent of their cyber risk, and are underinsured or even uninsured as a result.

For brokers, that presents both an opportunity and a challenge: An underserved client base offers opportunities for further

8

But while cyber does increasingly seem to be on the horizon for SMEs, the reality is that with fewer resources, managing the risk can be a difficult juggling act. “Smaller businesses in particular have been forced to spin a lot of plates, complicating the decision-making process and stretching many businesses to the

breaking point,” says Paul Tombs, head of SME proposition at Zurich UK. In addition, business both large and small are growing more reliant on technology and data, which means the stakes are only increasing when it comes to the ramifications of cybersecurity failings.

“The impact on their reputation of getting it wrong has increased significantly,” Tombs says. “If something does go wrong, it can now spread a lot quicker than it has ever done in the past.”

As a result, brokers need to provide a more holistic service to smaller business clients when it comes to cyber, which should include tailored advice that covers both insurance programs and pre-loss risk mitigation.

“I think the important piece here is really understanding what the end client needs as part of this,” Tombs says. “From an overall proposition perspective, you need to [have] the right product, the right pricing structure and

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THE CYBER THREAT TO SMALL BUSINESSES

25%

Small businesses in Australia that have experienced a cyber attack, as of 2017

$10,299

Average amount a cyber incident cost Australian SMEs in 2017

66%

Businesses in Australia that said they had either purchased or planned to purchase cyber insurance in 2017 make sure it is relevant for those smaller SME customers, compared to larger customers. The key message for brokers is to continue to talk to their clients and educate them on the risks that they face now, but also the emerging risks. It’s about risk assessment, advice, understanding

served. As a result, cyber is not just the biggest focus for his business, but also where he sees the biggest growth opportunities.

“With SMEs, there is a massive disconnect between what they do and where they buy or don’t buy insurance,” he says. “I think where

“With SMEs, there is a massive disconnect between what they do and where they buy or don’t buy insurance” Peter Goddard, Daulby Read Insurance Brokers SMEs’ needs and putting the right cover in place. That’s the key role of a broker.”

Peter Goddard, managing director of Daulby Read Insurance Brokers, says that much of the current attention in the cyber insurance realm is focused on the ‘Hollywood’ accounts, leaving small businesses under-

the whole market is at the moment, we’re not doing much to help them with their risks and getting them to understand what those risks are. There’s quite a long way to go in talking to SMEs and getting them to realise it’s a necessary form of insurance.”

Cyber, data and technology will undoubt-

40%

Insurance brokers who say they’re providing regular counsel to SME clients on cyber risk Sources: Norton SMB Cyber Security Survey 2017, Aon, Zurich

edly remain under the global microscope, so cyber insurance and cybersecurity offerings will continue to top the agenda for businesses of all size. Brokers who can help plug the gap that currently exists for small businesses by offering their clients both education and support are likely to see continued growth in their cyber books.

“There are absolutely growth opportunities for brokers,” Tombs says, “and I think that’s because there’s a real demand and a need for the cover from the end-client base.”

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UPFRONT

INTELLIGENCE CORPORATE ACQUIRER

TARGET

PRODUCTS COMMENTS

AXA

XL Group

AXA has finalized its acquisition of XL Group announced earlier this year

Carlyle Group

Sedgwick

Carlyle Group has agreed to become majority owner of Sedgwick in a transaction valued at about US$6.7bn

Marsh & McLennan

JLT Group

Marsh & McLennan has agreed to acquire the British insurance brokerage for consideration of £19.15 per share

Munich Re

relayr

The acquisition will allow Munich Re to develop solutions that offer technology, risk management, data analysis and financial instruments

Phoenix Holdings

CBL Corporation

The administrators of New Zealand-based CBL have sold the firm’s UK-based European Insurance Services business

Thomas Miller

Zeller Associates

Zeller Associates is an international provider of risk and insurance services, mainly for shipping, trade and transport

Zurich reveals global cyber proposition

Zurich Insurance Group has launched what it claims to be the first cyber policy to include network security monitoring and pre-breach services.

Available to the insurer’s customers worldwide, the product includes protection against social engineering, reputational risks and breach of the EU’s General Data Protection Regulation. Such coverages, which were previously only available through endorsements, add to existing coverage for breach costs, business income loss and dependent business income loss. The new policy offers limits up to US$25m.

WTW unveils property modelling platform

Marsh & McLennan acquires JLT Group

Marsh & McLennan, which currently employs nearly 65,000 people around the globe, is set to become even bigger. Known for its units Marsh, Guy Carpenter, Mercer and Oliver Wyman, the global professional services firm has reached a deal that will add JLT Group to its roster.

Marsh & McLennan agreed to buy the UK-based brokerage for consideration of £19.15 per share, which equates to £4.3bn in fully diluted equity value, or an estimated enterprise value of £4.9bn. Once the deal is finalized, Dominic Burke, group chief executive of JLT, will join Marsh & McLennan as vice-chairman and a member of the executive committee.

10

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Willis Towers Watson has announced the launch of Property Quantified, a platform to help organisations analyse potential property losses across a global portfolio. Property Quantified models multiple perils in a single platform, including catastrophe risks such as earthquakes and hurricanes, as well as other loss types such as fire and vandalism. Targeted at organisations with locations anywhere in the world, the tool delivers loss projections and assesses insurance strategies. Users can make changes to their location data and see the impact to loss potential immediately.

PEOPLE Marsh announces new social unrest policy

Global insurance broker Marsh has launched a stand-alone insurance product that provides financial protection to global businesses following any denial of access to their properties as a result of social unrest, including protests, acts of terrorism or actions by military and civil authorities.

By covering denial of access arising from disturbances to the public peace, Marsh’s social unrest solution helps clients reduce the economic impact of these events on their businesses,” said Justine Mayhew, head of international property in Marsh’s International Placement Division.

Swiss Re partners to launch Australia-first product

Swiss Re Life & Health Australia has teamed up with mobile financial services business Raiz Invest to research and develop Raiz Invest Super, a risk product inside superannuation that is personalised, requires little customer information and is simple to apply for online. The partnership will use Swiss Re’s machine learning to create a predictive underwriting model that delivers a simpler experience for customers. “Our goal is to provide a tailored solution to customers in superannuation in an innovative and efficient way,” said Raiz MD George Lucas.

QBE launches hail repair network

QBE Insurance Australia has rolled out a national hail repairer network, appointing Action Smart Group as its provider and preferred supplier of repair solutions for hail-damaged vehicles. The move is part of the insurance giant’s strategic review of its motor-claims division. “Our new hail repairer network and our partnership with Action Smart Group help us to provide progressive hail-damage solutions to our customers across the nation,” said QBE’s Jon Fox. “The network is a pivotal part of our customer promise, and we are confident it will deliver efficient and high-quality repairs.”

NAME

LEAVING

JOINING

NEW POSITION

Ben Anglin

N/A

Strata Unit Underwriters

National sales manager

Bora Arslan

GTB

IAG

Chief analytics officer

Heinrich Eder

Munich Re

Integrity Life

Independent non-executive director

Doron Grossman

QBE

A.M. Best

Director of market development for Southeast Asia

Jacqueline Little

ANZ

Integrity Life

Head of product

Claire MacMillan

N/A

Australian Professional Indemnity Group

President, WA chapter

Mark McCrea

Clearview Wealth

Integrity Life

Operations manager

Diana McKenzie

Workday

MetLife

Board director

David Mills

N/A

Gold Seal

Director, market development

Darryl Newton

Australia Post

ING Australia

Board member

Nathan Pilgrim

Sunsuper

Gallagher Bassett

CIO

Andrew Robson

N/A

Strata Unit Underwriters

Head of distribution and service delivery

Damien Stephen

Brooklyn Underwriting

Berkley Insurance Australia

Senior underwriter and national product leader for IT liability

MetLife elects new board director

MetLife has appointed Diana McKenzie to its board as a director. McKenzie previously served as chief information officer for enterprise cloud-applications company Workday.

Prior to Workday, she held a range of technology roles at California-based biopharmaceutical company Amgen, including as senior vice president and CIO. “Diana has been a technology leader and innovator and will bring digital and technology knowledge and perspective to the board,” said MetLife chairman, president and CEO Steven A. Kandarian. “I look forward to her guidance as MetLife continues to build out its digital capabilities.”

Gallagher Bassett names chief information officer

Gallagher Bassett has tapped Nathan Pilgrim as its new chief information officer. Pilgrim has more than 15 years of experience in senior leadership roles across a range of industries. He was most recently head of technology and operations at Sunsuper, where he also served as a key member of the customer and technology leadership team.

“The developing area of information and technology is a big focus for GB and our clients in the coming years,” said GB Australia CEO John McNamara. “We’re really pleased to have Nathan on board and look forward to seeing the value that he will add in this space.”

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UPFRONT

INSURER UPDATE NEWS BRIEFS Chubb creates new unit for Australia and New Zealand

P&C insurance giant Chubb has created a major accounts division in Australia and New Zealand to provide dedicated premium underwriting, risk engineering and claims services for large multinational clients and business partners. Demetra Day, major accounts division manager for Australia and New Zealand, will oversee the new unit, managing the major accounts underwriting teams, global client executives, claims-client relationship managers and risk engineers.

Zurich unveils in-house cyber risk engineering team

In a landmark move for the insurance industry, Zurich is building upon other recent developments it has made in cybersecurity to establish a new in-house cyber risk engineering team.

The insurer will leverage its global risk engineering practice, composed of 700 risk professionals across different lines of business and industries, to provide “a comprehensive approach to cyber risk through risk insights, industry expertise and claims mitigation”, the company said. Zurich has tapped cybersecurity segment director Gerry Kane to lead the new team as vice president.

Gallagher adds food-production specialist practice

Gallagher has launched a specialist food-production practice to address the increasingly complex risks associated with the sector. During 2017, food and wine spending in Australia by overseas visitors surged by nearly 40%, creating an additional $6bn of income.

According to Stephen Elms, Gallagher’s

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national head of food production, the new practice will help organisations build an appropriate risk mitigation framework against the increasing and more complex risks associated with production and manufacturing, including extreme weather impact, food sabotage, product recalls and environmental risks.

Industry completes transition to new EDR scheme

The general insurance industry has transitioned to the Australian Financial Complaints Authority [AFCA], which formally commenced operations in late October. The one-stop-shop for financialsector disputes replaced the Financial Ombudsman Service [FOS], the Credit and Investments Ombudsman [CIO] and the Superannuation Complaints Tribunal [SCT]. Rob Whelan, CEO of the Insurance Council of Australia, noted that the new EDR scheme has broader jurisdiction than FOS in several areas, as well as higher limits for both disputes and compensation.

Lloyd’s unveils programme for future female leaders

Lloyd’s has rolled out a new programme designed to develop future female leaders within the organisation and across the market. The programme, Lloyd’s Advance, will run as a pilot for six months starting in January, and will provide an initial cohort of 15 women with targeted development, access to experts and role models, and ongoing networking opportunities to support their careers within Lloyd’s and the insurance market. Each organisation that nominates a woman for the programme will also be required to put forward a sponsor for her and a mentor who will be matched to another programme participant.

General insurance bounces back While the general insurance sector saw a boost this year, potential challenges remain The general insurance industry enjoyed a “bounce back” year in fiscal 2018, but it may have some challenges to overcome in the very near future. That’s the conclusion of Optima, Finity’s annual state-of-the-industry publication, which reported the insurance trading result for FY18 as 16% – an increase of two points compared to FY17. It also confirmed that the industry reached a 15% return on equity for the first time since 2014.

Andy Cohen, a former broker and experienced analyst who serves as principal and director at Finity, pointed to a number of factors driving the industry upturn.

“Rate increases, particularly in private motor, assisted the top line, while benign weather and low cat activity improved the claims line for a number of classes,” Cohen said. “In private motor, which accounts for one quarter of industry net premium, insurers seem to have put the brakes on the strong claims inflation seen in recent years – coupled with the rate increases achieved, this class has almost returned to target profitability.

“Last but not least,” he continued, “prior year reserve releases in long-tail classes were yet again very strong, with CTP alone contributing another $1bn to the bottom line.”

Looking ahead, the Optima report

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predicts the market will continue to harden and that profitability will remain sound, albeit a little below target – margins and ROEs should fall into the 10% to 15% range

come through in commercial lines, the combined operating ratio for this group of classes has not moved since 2017 and remains stubbornly stuck at 95%.”

“Headwinds to watch out for are numerous.

These include reduced scope for reserve releases, regulatory impacts from the royal commission, the return of strong claims inflation and class actions” for the next three years.

However, Cohen did warn that challenges remain for the industry.

“It’s not all plain sailing,” he said. “Interestingly, while we have seen rate increases

He added that additional rate increases are needed in a number of commercial lines classes if ROE targets are to be met.

“Although the outlook for overall industry profitability is good, headwinds to watch out

for are numerous,” he said. “These include reduced scope for reserve releases, regulatory impacts from the royal commission, the return of strong claims inflation and class actions.”

28 February • The Westin Sydney

Make insurtech your future Find out more and register at www.ibinsurtechsummit.com

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UPFRONT

UNDERWRITING AGENCIES UPDATE NEWS BRIEFS AHI moves to eliminate mental health exclusions

Specialist underwriting agency Accident & Health International [AHI] has announced plans for a sweeping transformation in honour of its 20th anniversary, including a move to eliminate all mental health exclusions from its policies. AHI plans to renew policy wordings across its entire suite of products, effective in January. “The wordings will be market-leading based on our experiences, exposures and market demands, though we will also be leading the charge by continuing to remove any mental health exclusions under any of our policies,” said CEO Danny Byrnes.

Arena Underwriting covers fire protection firms

Arena Underwriting has introduced public and products liability cover specifically designed for the fire protection industry. The new product is suitable for clients who focus on supply, servicing and installation of portable devices such as fire extinguishers, hydrants and hose reels; those who supply, service and install fire alarm panels, fire doors, pumps, emergency and exit lighting, electrical work, passive equipment, and sprinkler alarm testing; and those who perform sales, design work, training, surveying and investigative work, including bushfire assessments.

BMS Group rebrands wholesale broking operation

BMS Group has announced the rebranding of its Australian wholesale broking operation to Lions Gate Placement to mirror the UK-based specialist insurance and reinsurance broker’s wholesale underwriting agency, Lions Gate Underwriting.

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Its core business will continue to be Lloyd’s-supported liability and property placements, particularly in the construction, sport and hospitality areas, as well as hard-to-place business.

“We are very pleased to announce the rebrand to Lions Gate, which will retain focus on our independent retail broking and underwriting agency partners,” said managing director Brett Field.

BGC Partners agrees to acquire Ed Broking Group

Ed Broking Group has reached an agreement to be acquired by BGC Partners, a global brokerage and financial technology company. As part of the agreement, a subsidiary of BGC will acquire 100% of Ed, including its broking operations under the Ed brand in Hong Kong, Singapore, Dubai, Miami, China and the UK. The deal also incorporates the German marine broking arm, Junge, as well as Ed’s MGA operations: the UK’s Globe Underwriting, Australia’s Epsilon Underwriting and Paris-based Cooper Gay France.

Global marine premiums rise, but challenges remain

The annual statistical report from the International Union of Marine Insurance [IUMI] has reported with a 2% rise in global premiums. However, the report also noted a number of challenges currently facing the industry. “The cargo market was recently affected by unprecedented nat-cat and outlier event losses, and this has negatively impacted underwriting results,” said Astrid Seltmann, vice-chair of the IUMI Facts & Figures Committee. “In the hull market, falling vessel values have, among other market conditions, contributed to an erosion of income to a degree where income is now not sufficient to allow for normal repair costs in a given year.”

Insuring driverless vehicles A new survey highlights how underwriters are approaching the risks brought on by autonomous vehicles From insuring the sharing economy to affording freelance workers the protection they need, the world of insurance keeps getting bigger as the industry responds to emerging risks and needs. A recent poll by the UK-based International Underwriting Association [IUA] highlights the opportunities and challenges presented to underwriters by developing technologies in the area of selfdirected vehicles.

Conducted by the association’s Developing Technology Monitoring Group [DTMG], the IUA survey found that only one member company provided insurance for autonomous vessels, six offered cover for autonomous vehicles, and 11 insured unmanned aerial vehicles or drones.

This survey presents an interesting case study in light of wider public discussion around the insurance needs of autonomous vehicles. While the coming years will undoubtedly present underwriters with a variety of opportunities to develop new products, the firms surveyed by the IUA appear to be proceeding with caution.

Member responses suggested that the lack of coverage was largely driven by inadequate historic data and insufficient expertise, rather than the absence of a suitable regulatory framework. Meanwhile, respondents largely agreed that the greatest risk posed to the

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uptake of all three technologies was the supporting infrastructure.

“It is recognised that regulation will play a vital role in supporting the development and use of the technologies, providing a framework to manage the risks presented,” the IUA wrote in its report on the findings.

“However, over- or under-regulation may have an adverse effect. It is also worth noting that regulation can only be effective if the appropriate infrastructure is in place for each technology.”

Though a relatively low number of IUA members provided cover for autonomous vehicles, the offerings spanned the broadest range of technology use, including commercial, personal, testing and manufac-

Zumba

“Insurance companies are embracing new technologies and developing broad, wide-reaching cover for a range of different risks” turing/retailing, and component supply. The most common damages covered for autonomous vehicles were third-party bodily injury and thirdparty property damage; 78% of respondents reported including this cover in their products.

Coverage for unmanned aerial vehicles had the widest geographic reach – underwriters in North America, Europe, the UK, South America, Australia, Asia and the Middle East all reported providing cover for drones. Autonomous vehicle coverage, however, was restricted to IUA members in North America, Europe and the UK. “Insurance companies are embracing new technologies and developing broad, wide-reaching cover for a range of different risks,” said DTMG chair Daniel Fletcher, who also serves as technology practice manager at Chubb Europe. “The expansion of such products generally mirrors the rate of development for the technologies themselves.

“Unmanned aerial vehicles are currently the most widely used, and this is reflected in the number of IUA members who stated in our survey that they are offering products in this area and, indeed, the geographical spread of cover,” he continued. “Autonomous vessels, however, could represent a significant potential growth area for the London market, with a quarter of the companies responding to our poll stating that they are considering launching a product in this field.”

FOR RISKS FROM A TO Z Visit www.insurr.com/au www.insurancebusinessonline.com.au

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UPFRONT

OPINION

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

Mentorship as a movement Mentorship can be the key to shattering the glass ceiling and fostering greater workplace equality, writes Margaret Resce Milkint IT’S NO secret that despite recent victories, a glass ceiling still persists in the insurance industry. There are simply not enough women at the leadership level, even though countless inspiring, talented and capable female insurance professionals stand ready. Mentorship is the key to raising these future female leaders, removing bias from the workplace and finally shattering that divide forever. It is our moment for pioneering women and enlightened men to use mentorship as a practical action to create workplace equality and reimagine the C-suite.

As a grassroots movement, mentoring has actionable purpose. Mentors and mentees form a bond – sometimes it’s short and laser-focused; other times it is a lasting relationship. I have experienced both, and both serve a crucial purpose.

If there is a catalyst to fuel shifting bias, to build leaders and to instil confidence, I believe mentorship is it. Mentors and mentees stand together to learn from one another, identify opportunities and ignite positive change. Meaningful dialogues among professionals of all levels are the foundation of an inclusive workforce.

As we reimagine mentoring, envision a set of shoeboxes stacked one atop the other. In the boxes, choose the shoes you need to find your match. The match you seek at this point in your career likely won’t be the same match you will need five years, one year or even 60 days from now. What do you need today?

Maybe it’s an opposite-gender mentor, a peer mentor, a reverse mentor, a family mentor or a tough-love mentor.

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Cultivating and nurturing your mentor relationship so the match is easy and impactful is an art that takes intentionality and must be perfected. The most powerful collaborations are based on pure trust and unwavering honesty. They also require the courage to have difficult but necessary conversations. Honest, sincere connections allow us to develop ourselves and inspire change.

Mentoring and being mentored is quite

Lead with curiosity. Be a lifelong student.

Cultivate relationships, as they are the lasting treasures.

A male CEO mentor had the courage to teach me a valuable and lasting lesson that I call ‘the power of we and I’. He shared that the all-male board I presented to perceived my use of ‘we’ in my examples and statements as a lack of personal accountability; I often ‘we, we, we’d’ myself out of consideration. Lesson learned: I gave myself permission to say ‘I’ and blend it with the collaborative, collegial ‘we’ that’s part of my personal DNA. Sometimes mentorship happens when you least expect it and you aren’t looking. Seize those moments! I am proud to say I have a new mentor: the energetic and iconic Edie Fraser. As a pioneer in diversity and inclusion, she founded Million Women Mentors [MWM] and STEMconnector and was the founder of Diversity Best Practices before that. I encourage the broader industry to join her global MWM movement, which already has more than 2.3m commitments to mentor,

“If there is a catalyst to fuel shifting bias, to build leaders and to instil confidence, I believe mentorship is it” personal; setting frameworks for communication, goals and expectations is key. My top tips for mentoring magic: Be open to a mentor or mentee who does not look, act or feel like you. This is often the best kind!

Show up with transparency. Honesty is the backbone of this relationship.

Practice gratitude.

Share the wisdom and lessons. Be brave and tell your personal stories. It’s in this vulnerability that lessons are learned and victories are celebrated.

Set expectations, guardrails, boundaries and goals.

Follow up, care, nurture and push.

Deliver on your promises.

Be gentle with each other. There is no ‘perfect’; there is only a journey.

sponsor, provide interns and build women into and up the system for great careers.

High on my personal wish list for the insurance industry is data to support our story and to frame our go-forward agenda as we strive for gender parity in the C-suite and other leadership roles. We have a moment to come together to gather, share and publicise the success stories that will amplify our efforts.

This is a vocal and vibrant movement where women and men are joining forces to make a difference with each and every relationship and where each opportunity builds awareness and results.

Margaret Resce Milkint is a talent strategist and diversity and inclusion catalyst. She is a managing partner at The Jacobson Group, the leading provider of insurance executive search and staffing services.

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UPFRONT

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

OPINION

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PEOPLE

THE BIG INTERVIEW

BUILDING A BETTER WORKPLACE Elantis CEO Nick Cunningham tells Tom Goodwin how creating a great working environment has helped his firm better service the insurance industry WITH MORE than 25 years of experience in finance, Nick Cunningham has witnessed significant change across multiple industries. Since moving to the world of insurance four years ago as CEO of Elantis Premium Funding, one of the biggest shifts he’s seen has been a considerable increase in the role the funder plays in the broker world.

Customer service has moved to the forefront, helping distinguish Elantis from its peers in a tightly contested field.

“We’re building a better workplace through kick-ass customer service,” Cunningham says.

The funder-broker relationship is now a closer symbiotic bond, driven in part by a softer market in recent years. Approaches such as stretching settlement days on loans to reduce the impact of the rate on a client have allowed the funder to have more security and the broker to often generate more revenue.

“We saw that brokers were looking at where additional revenue streams were going to come from,” Cunningham says. “Brokers have come to a new understanding that if they work with the funder, we can actually work with an outcome where they generate additional revenue. We are obviously profitable and remain viable, but it doesn’t impact the client.”

It’s no coincidence that one of the core components of Elantis’ strategy is to main-

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tain a strong company culture. Having spent more than 15 years working in the banking sector, Cunningham is keenly aware of how quickly staff will spot any disparity between stated intent and action.

“During my days in the banks, they would say, ‘Our staff are important’, but then they would go and do something totally different,” he says. “But at Elantis, we tend to think that if our staff don’t feel valued or part of the

new customer base’ – we do that, too, but we specifically have significant strategy around making sure we are a great place to work,” Cunningham says. “All the leaders across the business and all the employees understand that. They have a fuller appreciation that we actively plan to make sure staff are engaged and feel valued.”

Indeed, it’s this positive workplace culture that Cunningham feels helps encourage

“You’ve got to think a bit differently about how you’re going to engage your clients, and that leads to creative solutions to reaching them. It’s definitely not an industry where you can sit back and settle into autopilot for a five-year plan” company, that will reflect in the way they approach brokers – our customers.”

Cunningham is a firm believer that this marks Elantis out from the competition, providing incentive for staff and customers to remain with the organisation. And it’s paid dividends – Elantis recently placed in the top 20 of the 2018 Great Place to Work Awards.

“For some companies, their approach is to say, ‘Go find a new product line’ or ‘Go find a

competition throughout the industry.

“I enjoy the fact that funding is a tightknit, boutique industry,” he says. “You’ve got to think a bit differently about how you’re going to engage your clients, and that leads to creative solutions to reaching them. It’s definitely not an industry or role where you can sit back and settle into autopilot for a five-year plan – you’ve consistently got to be looking at doing different things.”

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PROFILE Name: Nick Cunningham Title: CEO Company: Elantis Premium Funding Based in: Sydney Years in the industry: 25+ Fast fact: Cunningham’s background includes time in the military, teaching English in Japan, selling home loans for the Big Four banks and providing advice as a qualified financial planner

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PEOPLE

THE BIG INTERVIEW

Supporting Australia’s SMEs The funding industry is currently forecast to loan around $5bn in Australia over the next financial year. It’s a staggering figure that Cunningham is understandably proud of, and he feels it’s a testament to the quality of the industry as a whole.

“Find me somewhere else in the world where $5bn is lent unsecured,” he laughs. “It doesn’t exist!”

Yet his amusement is underpinned by a serious conviction – namely, that the funding industry plays a crucial role in aiding small business in Australia. Though the public

their insurance premiums, it will have a huge impact on the viability of that space.”

Disrupting the future While ‘disruption’ is often bandied about as a buzzword, Cunningham feels it’s a term that could soon have real meaning again, especially in light of the revelations of the financial services royal commission. Too many direct insurers have pursued profit at the detriment of the consumer, he says.

“When I came into the industry, there was a lot of talk around direct insurance offerings and artificial intelligence undermining the

“Insurance is a very competitive industry.

The great brokers who look after their customers are going to prosper and boom, as will the funders” perception of business tends to be geared around large-scale international operators, this is quite far removed from the truth. In fact, SMEs make up the bulk of Australian businesses and employ around 90% of Australians.

Cunningham believes that this support for SMEs is a little-recognised facet of the funding – and, by extension, insurance – industry. With bigger banks suffering from a lack of consumer trust and frequently reluctant to provide the relevant loans, Cunningham says funders need to more overtly advertise the role they can play in aiding SMEs. “The most important employees at Elantis are the staff who speak to our brokers regularly, solving problems and assisting however they can,” he says. “Small businesses are the lifeblood of the Australian economy. If you take $5bn in funding away from helping those small businesses pay

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ELANTIS AT A GLANCE

broking process,” Cunningham says. “But what we’ve discovered is that when we outsource the relationship to a direct model, it’s fundamentally flawed.”

Given the apparent issues exposed in the current system, Cunningham believes that the coming years will see a flight back to quality advice and customer service, built around individual relationships with brokers. This disruption of the current tendency toward direct insurers is likely to benefit the industry in the long run, though it will require hard work to demonstrate trustworthiness to the general public.

“Insurance is a very competitive industry,” Cunningham says. “The great brokers who look after their customers are going to prosper and boom, as will the funders.”

Indeed, Elantis is proof that the right workplace culture really can make all the difference – not just to a business, but to an entire industry.

FOUNDING The modern incarnation of Elantis was established in 1991

REPUTATION Elantis is known for its financial strength, integrity and reliability

SERVICES Provides holistic commercial and domestic premium funding

PRESENCE Has representatives in 12 locations across Australia and New Zealand

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SPECIAL REPORT

BROKERS ON UNDERWRITING AGENCIES

2018 BROKERS ON UNDERWRITING AGENCIES For the fourth year in a row, brokers told Insurance Business which underwriting agencies are best in class SINCE 2015, Insurance Business has called upon its readers to name the standout underwriting agencies in Australia and tell us what marks them out as leaders in their field.

Once again this year, IB gave brokers the chance to provide feedback on agencies across 11 product categories, from construction and cyber to product liability and professional indemnity.

In addition to giving brokers the chance to name the best businesses, we also asked them to single out their favourite products from the agency world and tell us what’s most important to them in their dealings with underwriting agencies.

For the fourth year in a row, brokers ranked coverage as the most integral aspect of the underwriter-broker-client relationship, underlining how crucial it is for brokers to be

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able to secure the best possible products for their clients’ unique risk exposures. After sitting in fifth place last year, broker support climbed to second place ; many respondents commented on the importance of the support they felt underwriters provided – or could be providing.

Overall service levels leapt up to third place in terms of importance, while new business turnaround times dropped to fifth place and claims turnaround times fell to fourth. At the other end of the ladder, brokers ranked premium stability sixth. And coming in last place – as it has done by a significant margin each year – was commission structures.

Despite the shifting positions, the difference between scores themselves remains slim – similar to last year, the final average score for

six of the seven categories was again well above 4 out of 5, a testament to just how much significance brokers ascribe to each of these aspects of service. Both now and into the future, underwriting agencies must strive to excel in all of them.

IB’s Brokers on Underwriting Agencies report represents an integral component of our ongoing commitment to recognise the top players in the local insurance industry. Underwriting agencies play an essential role in the Australian insurance market, and we feel it’s important to provide those who deliver outstanding service with the requisite recognition. The level of positivity among respondents is testament to the high calibre of work being carried out by Australia’s underwriting agencies.

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SPECIAL REPORT

BROKERS ON UNDERWRITING AGENCIES

METHODOLOGY Using our online newsletter and Twitter, Insurance Business invited brokers to complete an online survey, asking them to name the top three underwriting agencies in 11 product categories. The categories chosen were those deemed by IB to have the most significant number of market participants in the Australian agency space. Survey respondents were also given an opportunity to name the best insurance product provided by an agency in the last 12 months. Responses to that free-form question were used to determine medal winners in the Brokers’ Pick category.

Additionally, respondents shared their thoughts on which aspects of their dealings with underwriting agencies were most important to them and what agencies can do to win more of their business in the next 12 months.

$3.5bn

Approximate GWP of the underwriting agency sector in Australia

2,700

Approximate number of people employed by underwriting agencies in Australia

WHAT BROKERS WANT IN AN UNDERWRITING AGENCY Coverage 4.61 Broker support 4.49 Overall service levels 4.47 Claims turnaround times 4.44 New business turnaround times 4.42 Premium stability 4.27 Commission structures 3.52 0 Not important

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1

2

3 Somewhat important

4

5 Very important

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SPECIAL REPORT

BROKERS ON UNDERWRITING AGENCIES HOW UNDERWRITING AGENCIES CAN MAXIMISE BROKER BUSINESS Insurance Business asked brokers to tell us how underwriting agencies can win more of their business. Here’s what they had to say.

Provide competitive pricing, quick turnaround and comprehensive cover They need to be relevant, innovative and competitive both from a coverage and a pricing perspective. They also need to be available and responsive Engage more on a technological level More contact, more information regarding their products and more effort to work with us to meet the client’s needs By broadening their appetite and, very importantly, responding quickly to enquiries and new business requests – in short, by making it easier and faster to do business with them

BROKERS ON PRODUCTS Insurance Business also asked brokers to tell us whether underwriting agencies’ product ranges and pricing improved or worsened over the last year.

More are entering new markets and providing more diverse products Cover has become more broad There is a wide range of products available to the market to suit all requirements, and the current product pricing is fair Policy wordings have improved Overall product risk appetite has increased in the last 12 months Have products and pricing improved or worsened in the last 12 months?

Improved significantly 8% Improved 44% No difference 33% Worsened 13% Worsened significantly 1%

Keep premiums consistent and levels of service high

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SPECIAL REPORT

BROKERS ON UNDERWRITING AGENCIES ACCIDENT AND HEALTH the “great claims service”.

AFA is also marking its fourth year as silver medallist in the accident and health category.

One respondent pointed to AFA’s “very strong reputation and service to brokers”; another highlighted the fact that “the insured knows

AFA ACCIDENT & HEALTH INTERNATIONAL Agencies that operate in the accident and health segment represent a unique offering in the broker space, and in a market traditionally perceived to be dominated by direct insurers, it’s always positive to see broker-friendly underwriters celebrated.

Accident & Health International [AHI]

POINT UNDERWRITING

continued its dominance in this category, picking up the gold medal for the fourth consecutive year.

Respondents continued to single out AHI as worthy of praise – one mentioned its “great turnaround time, scope of product and high level of service”, while another pointed to

It’s always positive to see broker-friendly underwriters celebrated exactly what they’re being paid in the event of a claim”, enabling a more streamlined process for everyone involved.

Breaking into the top three for the first time this year with a bronze medal is Point Underwriting, which offers individual and group schemes in personal accident and sickness for a wide variety of companies, EBAs and other organisations.

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MECON’s “superior PDS and competitive pricing”, while another simply described MECON as “best in class”.

SURA retained the silver medal for the second year in a row after debuting on the list in 2017 – a testament to the high level of quality

SURA MECON INSURANCE

Construction is currently the third largest industry in Australia, so it’s no surprise that its insurance is a significant category in the Brokers on Underwriting Agencies survey. The 2018 medallists have all distinguished themselves among their peers by being product leaders in a complex field that have also managed to endear

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ATC INSURANCE SOLUTIONS

themselves to brokers across the country.

MECON retained its top position in construction once again in 2018, taking home the gold medal every year since the category debuted in 2016. The reasons for its continued dominance are evident from the responses received from brokers. One pointed to

The 2018 medallists ... have managed to endear themselves to brokers across the country service the agency delivers and the esteem in which it is held by Australian brokers.

New to the list this year is ATC Insurance Solutions, a Lloyd’s-affiliated organisation that has been working since 2006 to provide a broad variety of construction and engineering products to the Australian market.

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SPECIAL REPORT

BROKERS ON UNDERWRITING AGENCIES CYBER

DUAL AUSTRALIA

DIRECTORS & OFFICERS LIABILITY

EMERGENCE INSURANCE GROUP

BROOKLYN UNDERWRITING

Cyber attacks dominated headlines throughout much of 2017, increasing awareness among the general public and underlining the need for proper cyber insurance. Additionally, new mandatory reporting laws around data breaches mean many more businesses are looking to prevent such occurrences and are looking to insurers for answers.

Even with this increased interest in the market, the same three organisations won recognition in this category again in 2018 – a testament to the fact they’ve been handling products and broker relations in the field the right way all along.

The order has changed slightly, however: Emergence Insurance Group took the gold for the first time this year. One respondent referenced the agency’s “broad cover and expert knowledge, training, assistance, and technical support”. Another made note of Emergence’s ongoing commitment to updating products – essential for any organisation looking to work in this fast-moving field. “Comprehensive policy coverage with knowledgeable staff,” the broker said. “Emergence continues to update and evolve their product offering to suit new cyber risks instead of relying on an outdated wording.”

While DUAL Australia slipped from the gold-medal position it held in 2016 and 2017, its silver-medal finish this year is a strong indicator of its ongoing commitment to a high quality of product and service.

Meanwhile, Brooklyn Underwriting held steady with a bronze – an admirable achievement.

LONDON AUSTRALIA UNDERWRITING

DUAL AUSTRALIA

PEN UNDERWRITING

D&O liability remains a crucial issue for industries across the board; an article in the West Australian earlier this year indicated that premiums had risen by more than 350% since 2011.

This steep increase appears to have primarily been the result of class-action lawsuits, and there are likely to be more on the way. Though the final report of the financial services royal commission is still to be released, it seems likely that there will be fallout, giving increased prominence to this specialist field of insurance.

DUAL grabbed the gold medal in directors & officers liability for the fourth year in a row, thanks to its keen commitment to providing this essential service. One respondent praised DUAL’s “competitive automated turnaround time”, while another expressed fondness for the “broad cover provided by the policy”. A third broker praised DUAL for “… evolving products to meet the market and flexible price points for clients”.

London Australia Underwriting [LAUW] made its second appearance on the list in as many years, again taking out silver. Writing exclusively on behalf of Lloyd’s of London, LAUW’s SHIELD policy offers broadform D&O cover for medium to large companies.

Pen Underwriting made its debut on the list for D&O this year, earning a bronze medal for its quality policies and service to brokers.

A SNAPSHOT OF THE AUSTRALIAN INSURANCE INDUSTRY

$31.8bn Net earned premium

$2.4bn

Investment income

$1.6bn

Loss due to natural disaster

92%

Percentage of claims admitted

8%

Percentage of claims declined Source: Insurance facts and figures (Australia 2017), PwC

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SPECIAL REPORT

BROKERS ON UNDERWRITING AGENCIES MANAGEMENT LIABILITY marked out DUAL’s “competitive automated turnaround time” for praise, making it evident that the underwriter continues to meet the unique needs organisations face in the current business environment.

Debuting in this category this year, Brooklyn

BROOKLYN UNDERWRITING

DUAL AUSTRALIA

Ensuring employees are not left out of pocket if they are sued while performing their jobs, management liability remains an important consideration for companies all over the country.

This is a type of insurance that doesn’t necessarily make the headlines, but it is absolutely necessary for any business operating in Australia today.

SOLUTION UNDERWRITING AGENCY

With litigation in Australia steadily on the rise, it’s essential for companies to take steps to protect themselves with proper management liability cover – and brokers have determined that these underwriters are the best ones to provide it.

DUAL Australia secured its fourth gold medal in management liability this year. Brokers

This is a type of insurance that ... is absolutely necessary for any business operating in Australia today Underwriting secured a silver medal for its management liability policies, which address the wide range of exposures faced by SMEs. Solution Underwriting Agency retained a secure hold on bronze this year, having previously won this medal in 2017 after falling from silver in 2016.

NOT-FOR-PROFIT broker. Another pointed to Community Underwriting Agency’s “friendly staff, great turnaround and competitive pricing” as key components of its success.

DUAL was a close silver, maintaining its position for a third year in a row. DUAL’s

DUAL AUSTRALIA

COMMUNITY UNDERWRITING AGENCY

Not-for-profit organisations present insurers with unique challenges, as they require cover for a wide variety of exposures – equipment, property and personal liability, just to name a few. Yet these organisations also fulfil a vital role in Australian and international society.

Insurers who step into this area have an opportunity to establish themselves as high

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ASR UNDERWRITING AGENCIES

achievers while also helping to provide valuable community services.

It was a close battle, but Community Underwriting Agency fought its way to the top of the list again this year. Having secured gold for three years in a row, the organisation has clearly earned the trust of brokers. “Great cover, quick turnaround and well priced,” said one

Insurers who step into this area have an opportunity to establish themselves as high achievers reputation as a solid provider in a difficult market helped it secure this medal, along with a host of others, in 2018. Rounding out the top three with the bronze medal was ASR Underwriting Agencies, which repeated its 2016 performance after an absence in this category in 2017.

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SPECIAL REPORT

BROKERS ON UNDERWRITING AGENCIES PROPERTY For the third year in a row – every year since the category was introduced – the gold medal went to Axis Underwriting Services, which specialises in hard-to-place property coverage, with an appetite that spans risks such as high-hazard, heritage-listed, high fire load,

SURA

PEN UNDERWRITING

AXIS UNDERWRITING

Property insurance is currently in a transitional period in Australia. As lodging services like Airbnb rise in popularity, they’re bringing up new questions and new insurance gaps.

Additionally, the importance of property insurance to cover circumstances such as extreme weather is becoming ever more evident.

Underinsurance also remains an issue;

commercial and small business owners in Australia are not always up to date with the insurance needs for their industry or, in some cases, even aware of the products available to them. Innovative insurance policies are required to fill those gaps, and the next few years will be particularly intriguing as underwriters develop new products to address current issues.

The next few years will be particularly intriguing as underwriters develop new products to address current issues inferior construction, multi-tenancy and EPS construction.

Pen Underwriting rose to take the silver medal this year, having previously won bronze in 2016 and 2017. SURA is a new entry this year, rounding out the top three by taking bronze.

PRODUCT LIABILITY “customer service and speed of delivery”, while a third cited High Street Underwriting’s comprehensive coverage. “The policy has options for tools of trade and faulty workmanship extension,” the broker said, describing this as a “big selling point”.

MIRAMAR UNDERWRITING AGENCY

HIGH STREET UNDERWRITING AGENCY

Any organisation selling products to the general public needs to invest in product liability insurance. Underwriters who work within this field are sensitive to the unique exposures it can present for businesses, brokers and underwriters alike, and maintain an awareness that their services could be called on at any time.

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PEN UNDERWRITING

High Street Underwriting emerged victorious, winning gold from brokers for the fourth year in a row. A number of respondents praised the company’s customer service; one called out “service from the team, coverage and the ability to insure hard-to-place risks” as being particularly remarkable. Another pointed to

Underwriters who work within this field are sensitive to the unique exposures it can present Miramar Underwriting Agency made a strong return to silver after debuting on the list in 2017 – a testament to the high standards the company has set for itself. Pen Underwriting maintained its bronze-medal position for the third year in a row.

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SPECIAL REPORT

BROKERS ON UNDERWRITING AGENCIES PROFESSIONAL INDEMNITY

SOLUTION UNDERWRITING AGENCY

DUAL AUSTRALIA

PUBLIC LIABILITY

HIGH STREET UNDERWRITING

PEN UNDERWRITING

HIGH STREET UNDERWRITING AGENCY

BROOKLYN UNDERWRITING

Professional indemnity is gaining increasing prominence in the public eye as more and more businesses and sole traders become aware of its potential. Though professional indemnity has traditionally been associated with high-ranking white-collar professionals such as lawyers and surgeons, it’s a field with a far broader reach – indeed, it would be fair to say that if you’re in the business of providing a service, it’s crucial to have professional indemnity insurance. The top three agencies on this year’s list have clearly demonstrated that they’ve earned the trust of Australia’s broking community, thanks to a combination of great products, great customer service and working alongside brokers to achieve the best for their clients.

For the fourth year in a row, DUAL earned the gold in professional

Public liability remains a crucial insurance issue for many organisations around Australia, particularly as requirements evolve to better account for the safety of the general public. With this in mind, the results in this category for 2018 closely follow 2017.

High Street Underwriting again took gold, marking the firm’s fourth consecutive year in the top spot. “Customer service and speed of delivery” were highlighted as key aspects of the agency’s value proposition by one respondent, while another spoke of the “broad scope, reasonable terms and excellent service” the company provides. A third respondent praised High Street Underwriting’s “quick response to our enquiries and online service”.

Earning the silver medal this year – and moving up from last year’s

Though professional indemnity has traditionally been associated with highranking white-collar professionals … it’s a field with a far broader reach

Public liability remains a crucial insurance issue … particularly as requirements evolve to better account for the safety of the general public

indemnity. “The underwriter went to great lengths to understand the client’s activities,” one broker said, noting that other insurers had opted out before being willing to develop a proper overview. It’s a sign of DUAL’s commitment to go above and beyond, as well as a keen awareness that professional indemnity is not always a cut-and-dried field.

Solution Underwriting again retained its silver-medal placement for the second year in a row after climbing from bronze in 2016 – a strong indicator of continued positive performance. High Street Underwriting secured a place among the top three for the third year in a row, this year staking claim to bronze.

bronze – Pen Underwriting also received plenty of praise from survey respondents. Brokers commended the company for its “excellent service”, describing underwriters as “very knowledgeable” and “thorough”.

Brooklyn Underwriting rounded out the top three in public liability, marking its second appearance in a row on the medallists’ podium.

As with all of the medallists in this category, Brooklyn Underwriting impressed with its high standard of service. One respondent praised the agency’s “ease of service [and] willingness to work and underwrite to get the job completed”.

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SPECIAL REPORT

BROKERS ON UNDERWRITING AGENCIES STRATA COVER more on page 40).

Entering the list for the first time this year with a silver medal was Strata Community Insurance, which prides itself on creating products in line with emerging exposures, new laws and regulations, and developments. One

STRATA COMMUNITY INSURANCE

CHU UNDERWRITING AGENCIES

In the strata cover category, CHU Underwriting Agencies has again taken gold by a considerable margin, marking its third consecutive year in the top spot. CHU’s new policy wording was a particular point of note for respondents, who praised its inclusion of both flooding and floating floors. The company also garnered

STRATA UNIT UNDERWRITERS

compliments for its consistent service and online quoting capabilities. One broker lauded CHU for a “great product offering back[ed] by experienced and innovative insurance professionals” and “good claims and underwriting service”. CHU also secured a slot among the Brokers’ Picks for this year (find out

Respondents praised [CHU’s] inclusion of both flooding and floating floors respondent highlighted the “great service” Strata Community Insurance provides.

Strata Unit Underwriters, which has provided strata cover for more than 15 years, secured its third consecutive placement in this category, taking home the bronze.

BROKERS ON TURNAROUND TIMES Insurance Business asked brokers whether underwriting agencies’ turnaround times for claims and new business quotes had improved or worsened during the last year.

Half of respondents reported at least some improvement when it comes to turnaround times for claims and new business enquiries.

“Since we were given an underwriter specifically for our business, it has benefited time-sensitive new business accounts,” one broker said, while another reported that “systems have been streamlined”. Another broker noted that “claims responses are very quick”, while another felt that “automation has brought better production”.

In a slight improvement over last year, only 16% of respondents noted some worsening when it comes to turnaround times.

“Quotes are generally faster than new business, but new business times often lag,” one broker said. Another complained that “everything is centred around process systems and ticking boxes. A technical enquiry takes time to be responded to, as underwriters have limited product or general insurance knowledge to respond with facts, etc.”

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Have turnaround times for claims and new business improved or worsened in the last 12 months?

Improved significantly 15% Improved 35% No difference 33% Worsened 15% Worsened significantly 2%

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SPECIAL REPORT

BROKERS ON UNDERWRITING AGENCIES

BROKERS’ PICK In addition to voting for the top underwriting agencies across 11 product lines, brokers were also asked to name the top insurance product provided by an agency in the past 12 months. The following products earned the most votes from brokers.

CHU Underwriting Agencies Residential Strata Insurance Plan CHU Underwriting Agencies’ Residential Strata Insurance Plan made the list of brokers’ favourite products for the third year in a row. One broker nominated CHU on the basis of new policy wording that now offers coverage for floating floorboards, and several also pointed to the new inclusion of flood cover. Another mentioned CHU’s “outstanding team”, adding that the agency “continues to lead the market in new initiatives, both product-wise and in the digital space”. Another broker praised CHU for “outstanding support … in new business quotes and renewals”.

Emergence Insurance Group Cyber Event Protection Sydney-based Emergence Insurance Group has once again impressed brokers with its Cyber Event Protection product.

“Love the service provided,” said one broker, who noted that Emergence underwriters are “always clear and always come back to you”. Brokers need a cyber insurer they can rely on, and it appears that Emergence has established itself as such. One respondent praised the company’s “easy-to-use portal, great customer service and quick claims response”, while another reported that Emergence’s solutions are “very customer-focused”.

MECON Annual projects MECON returns as a Brokers’ Pick for the third time in 2018, winning praise from brokers for providing “excellent coverage” and “competitive pricing and great claims service” while being staffed by “responsive underwriters willing to find a way to win the business”. Another broker complimented MECON for “always looking at ways to provide optional additional covers that their competitors don’t”, adding that the agency’s “claims service is second to none”.

DUAL Australia Cyber Gold After a year off in 2017, DUAL has made a comeback to the Brokers’ Pick list this year with its Cyber Gold product. As more businesses become aware of the necessity of cyber insurance – particularly in light of the mandatory reporting laws introduced during 2018 – it seems as though DUAL has carved out an impressive niche for itself in a pioneering field. Brokers commended the organisation’s “comprehensive cover, [which is] able to be tailored to the client’s income level”. Another described DUAL’s cyber coverage as “affordable and easy to understand”.

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SPECIAL PROMOTIONAL FEATURE

TRANSPORT AND LOGISTICS

Keep on trucking New laws around transport and logistics safety have just taken effect. IB spoke to the experts at NTI to find out what this means for those who insure the sector

THIS HAS been a significant year for the transport and logistics industry, thanks in no small part to the introduction of new Chain of Responsibility [CoR] legislation that took effect at the beginning of October.

The new CoR law is designed to ensure that all parties in the supply chain are responsible for compliance with Australia’s Heavy National Vehicle Law. Already it has presented insurers working in the transport and logistics space with a number of challenges as new enquiries pour in from nontraditional sectors.

For NTI, the transition has been relatively smooth, which Mike Edmonds, NTI’s general manager for commercial, attributes to a strong internal culture that’s designed to ensure a high-functioning operation.

Emphasis on customer service is oft touted among insurers, but it’s a commitment that NTI takes extremely seriously.

“Quite simply, it’s our service differentiation,” he says. “It’s what we are known for and what sets us apart.”

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Four drivers of success In practical terms, Edmonds says NTI’s key customer service drivers can be broken down into four categories: expertise, claims, access and innovation. Collectively, these paint a picture of what genuine claims expertise and customer service should look like.

“Expertise is fundamental as a specialist,” Edmonds says. “Our people are our experts, and our modern technology enables this expertise to go to another level.”

Accordingly, NTI invests heavily across a variety of fields. With experts in business development, claims and underwriting across its transport, plant and machinery, and marine

markets, NTI is able to create its distinctive product offerings.

In terms of claims, Edmonds stresses that NTI does not simply “handle” claims. An entire internal division dedicated to parts purchasing, recoveries, settlements, emergency response and repair management works alongside NTI’s claims teams.

From an external perspective, NTI also has a 24/7 Accident Assist offering that enables policyholders to lodge a claim and receive emergency help, as well as a Premium Repairer network to get trucks back on the road more quickly than the market average, and accredited tow operators and close relationships with manufacturers.

“This allows us to get the best outcome for transport operators, whilst making it easy for brokers to do business with us,” Edmonds says.

In a more practical sense, having locally based bricks-and-mortar offices across the country allows brokers to deal with NTI on a personal level.

“We pride ourselves on being easy to get hold of, whether face-to-face or on the phone,” Edmonds says.

NTI has supported all of the major transport associations for more than 30 years, giving back to ensure a safe and sustainable trucking industry. This has helped NTI develop numerous innovations within the field as the needs of the industry evolve, and the company has built a list of achievements of which it is justifiably proud. Among these were the first 24/7 Accident Assist line for

ABOUT NTI With more than 40 years of experience in the insurance industry, NTI is the company you can count on to protect your transport assets. Our combination of tailored products, experienced people, accredited repair and recovery networks, and industry advocacy have seen us ranked as Australia’s number-one truck insurer. Yet insurance is just a piece of paper – a promise. It’s not until you really need us that you understand our point of difference. For more information, visit nti.com.au.

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insureds in the heavy motor industry, the first ‘guaranteed repairs for life’ offering in the heavy motor industry and the establishment of the nationally recognised National Truck Accident Research Centre, which publishes an Annual Crash Report.

“We don’t rest on our laurels, and we continue to evolve,” Edmonds says. “Our product innovations are frequently adopted by others in the industry.”

CAUSES OF MAJOR TRUCK ACCIDENTS Accidents are an unfortunate fact of life for any road-based business, but the National Truck Accident Research Centre’s annual report on the notable causes of truck accidents can help transport and logistics businesses identify and hopefully avoid these common issues.

2009 2011

35% 30% 25% 20%

Securing transport assets

15%

NTI’s investment into customer service has paid off – the company provides roadside assistance to more than half of the new trucks on Australia’s roads every year. Edmonds feels NTI’s dedication to its customers has also provided the company with some key insights into how business operators should

10% 5% 0% Inappropriate speed

Fatigue

Fire

Mechanical

Theft

At fault – driver error

Not at fault

Contributor negligence

Source: NTARC 2017 Major Accident Investigation Report

“The fulfilment of the promise at claims time is the protection of assets at work – time off the road for a transport operator is a major cost, but it can be mitigated with the right insurer” Mike Edmonds, NTI select an insurer.

“Firstly, get expert advice,” he suggests.

“Find a professional broker who provides you advice as well as price. Make sure they’re accredited, interested in your business and come recommended.”

The second step, he notes, is for transport and logistics businesses to take an interest in insurance as a risk mitigation strategy. They should regularly assess the value of assets to make sure insurance coverage is commensurate, and brokers should make sure their

2013 2015

clients understand the policy features, as well as any additional benefits and services provided by the insurer.

“Know the full picture on what you get and, more importantly, what happens at claims time,” Edmonds advises. “The fulfilment of the promise at claims time is the protection of assets at work – time off the road for a transport operator is a major cost, but it can be mitigated with the right insurer.”

Last but not least, Edmonds advises business owners to look at the other risk manage-

ment tools and offerings out there and actively reduce risk where possible.

“The recent introduction of the Chain of Responsibility legislation highlights what a transport insurer should do, and NTI has also produced a series of guides to assist insureds through this process,” he says.

Winds of change Though the CoR legislation is relatively new, NTI has already seen considerable interest and action on transport safety from consignors of freight. For many of these companies, it’s the first time they’ve reviewed their risks beyond their loading dock.

“These aren’t transport business as such,” explains Adam Gibson, transport and logistics risk engineer at NTI. “They’re manufacturers, wholesalers and importers.”

Gibson believes this new interest should be viewed as a positive thing, as the new legislation encourages consignors to select transport providers on the basis of safety and compliance, rather than just cost. Accordingly, NTI

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SPECIAL PROMOTIONAL FEATURE

TRANSPORT AND LOGISTICS

“We’re going to see a significant change in the risk profile of transport businesses as a result of technological changes” Adam Gibson, NTI has worked with industry experts to develop a CoR Health Check that includes a variety of online risk tools and templates to help businesses of all sizes understand their compliance obligations.

However, he remains uncertain as to whether ongoing change in the CoR space will drive safety innovations. There’s always a possibility that the increased interest in safety due to legislative changes will grow stagnant.

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“The key to this will be whether there’s a rise in the number of prosecutions of significantly non-compliant parties who are considered high in the chain,” Gibson says. “This includes consignors or directors, who are typically far removed from the actual transport operations.”

Gibson does see technology as a major driver of increased safety for drivers in the coming years. “We’re going to see a signif-

icant change in the risk profile of transport businesses as a result of technological changes,” he says. “Real-time fatigue monitoring, the take-up of electronic work diaries, automatic emergency braking and lane departure warnings will all have a part to play.”

It’s also hard to look past the ever-present topic of driverless technology; Gibson acknowledges that “it’s certainly coming – but when and to what extent is the obvious and still unanswered question”.

Still, he believes two factors will remain constant, no matter what technology transport and logistics operators choose to invest in. “It must solve a problem, and the system must work for them – not the other way around.”

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FEATURES

BROKERAGE INSIGHT

The golden rules of insurance Managing director Jon Stack tells Insurance Business how Action Insurance Brokers has achieved 25 years of success

WITH AN unapologetic focus on SME clients, Action Insurance Brokers has successfully carved out a niche providing industry-wide services for general insurance and risk management. This year marks the firm’s 25th anniversary, so it seems an appropriate time to reflect on the achievements of the past while looking towards the future.

“Encouraging a culture where the focus is always on the client is critical to success,” says Jon Stack, managing director of Action Insurance Brokers. “We are seeing a return to clients seeking personal, face-to-face service, and we’ve always prided ourselves on the standard of service we provide.”

Over the course of a quarter of a century, Action has seen plenty of growth and change.

The company has expanded into the mid-market and corporate sector, and has developed numerous schemes with specialities in entertainment and events, construction, service stations, the security industry, fire protection, tyre fitters, and a number of others.

Still, the core values that drove the organisation at its inception continue to propel the wider business. A glance at Action’s corporate structure reveals an inversion of traditional expectations: Clients sit at the top, then frontline

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team members and support team members.

Management is at the bottom, providing support to the other layers.

“We have many ‘golden rules’ that form the foundation of the way we operate,” Stack says.

“It’s important to have rules that the whole team buys into, and as such, it is our team who have devised, designed and built our rules – not management.”

Stack firmly believes that this culture of managing from the bottom up has been a key component of Action’s success. The brokerage’s placement on Insurance Business’ 2018 Top 10 Brokerages list suggests that he’s correct. It’s an approach that Stack feels could be leveraged to improve the overall recruitment process in the insurance industry, where, he notes, the benefits of working in the field are not always effectively advertised.

“Brokers, underwriting agencies and insurers alike are all battling with the need to keep quality team members,” he says. “We could learn a lot from other industries, particularly accounting, about how to attract and retain quality people.”

In the long term, staff retention is likely to present a variety of challenges not just for Action, but for the industry as a whole. Compared to 30 years ago, the average account manager handles two to three times as many clients and policies, and that requires both a natural talent and a deep understanding of procedure.

“There’s a reduction in technical knowledge throughout the entire industry,” Stack says. “We see a significant increase in the number of claims either disputed by or incorrectly handled by insurance companies. That means we have to be on our game constantly to help insurers

THE HARDENING MARKET “Twelve months ago, insurers were suggesting rate increases of 5% to 7% would be the norm,” Jon Stack says.

“But in reality, we’re seeing some products increase by double this or more.”

Nonetheless, Stack remains optimistic about the long-term future of the industry. “There are a few insurers who seem to have got close to the top of the cycle for their own rate movements, and I believe we will see the market peak in the next 12 months,” he says. “New players will start to force competition and a refocus on market share.”

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Action Insurance Brokers managing director Jon Stack (left) and Action Entertainment Insurance director Ian Stack (right)

“I believe part of our success is that we never sit still and accept the status quo. We always look for improvement” understand how to meet their obligations under the contract of insurance.”

Technology can certainly provide some aid on this front. While Stack remains sceptical about the idea of ‘robo advice’ replacing faceto-face interaction, he’s still effusive about the benefits of technology in both the present and future of the industry.

“Technology is a key aspect of the future operation of modern broking firms,” he says.

“Comparative quoting platforms certainly save a lot of time and energy – systems such as Steadfast’s SVU/SCTP platform serve an

enormous benefit to our business.”

Looking ahead, Stack feels there are numerous positive developments on the horizon.

Action is constantly researching and testing new products and schemes and has numerous projects in the pipeline. But even with 25 years of experience to build on, there’s still work to be done and innovations to be pioneered.

“I believe part of our success is that we never sit still and accept the status quo,” Stack says.

“We always look for improvement. We have a saying – if you don’t like change, then you’re in the wrong business.”

FAST FACTS: ACTION INSURANCE BROKERS Area of specialty: SMEs, general insurance and risk management – entertainment and events, security, construction, service stations, builder’s warranty, and strata Year founded: 1993 Headquarters: Bella Vista, NSW Leadership: Jon Stack, managing director, AIBG; Ian Stack, director, Action Entertainment Insurance; Amanda Bush, group operations manager

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FEATURES

PRESENTATIONS

How to create a winning presentation The key to an effective presentation is to make your message simple and genuine, writes professional communicator Emma Bannister

EVERY TIME I go to speak or train at a different company, I get the same response: “You make presentations sound so simple.

I get it, but I don’t get how I get buy-in from everyone else.”

The goal of any presentation is to influence your audience to act. Maybe you want your employees to get on board with your new vision or idea, or to motivate your client toward a new outcome. You want to make them feel excited, inspired or raring to go.

Yet nine out of 10 times, at the completion of a presentation, you’re probably met with chirruping crickets, blank faces or stifled yawns (if your audience hasn’t fled the room).

So what gives?

Make a point You can only claim that you have a ‘winning presentation’ if your presentation achieves what you wanted it to achieve. If your audience does what you want them to do and they respond in the way you want them to respond, that’s how you measure the success of your presentation.

The problem most of us trip up on is that you need to think about the behaviour of your audience long before you start talking.

All too often, when I ask a speaker what their objective is, they don’t know. They can’t tell me why they are presenting (other than because they’ve been told to), or what they want the audience to feel, act or do after they have seen the presentation. You have to be 100% clear on the purpose of your presentation.

Be human The key challenge we all face, regardless of industry, is that the world is more and more competitive every day. It’s harder than ever to stand out and be noticed, and to communicate your point of view with the right people in the right way.

One thing that’s not going to help is using business or corporate jargon as a crutch. All

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FEATURES

PRESENTATIONS

this does is create unnatural, overcomplicated messages that people can’t engage with.

What the world needs today – what your customers, clients, stakeholders and team members are crying out for – is natural, human-to-human connection through compelling visuals and emotional stories.

In business, we’ve been taught to stick to the facts and leave out any hint of emotion, yet research proves that our decisions – whether we buy or buy into something – are influenced by our emotions.

Remember, people buy from people they like. So you need to make your audience feel something toward you other than the urge to flee the room. The best presenters are those who can use a combination of facts and emotions to explain a future place that everyone wants to work toward.

Use images and video to create excitement, inspiration or action, if it’s appropriate to your cause. Pair these with infographics and diagrams that sum up your main points and data. I’ve also seen people use videos to successfully create something that tugs at the heartstrings and lingers for a long time in everyone’s memory.

When you share your vision and goals through compelling stories and slides, you reduce fear and instil confidence in your audience. That’s when they will connect to a future they want to be a part of.

Own up and own it Many of us believe that sharing everything and anything and blinding our audience with numbers is the best way to be transparent and open when it comes to a presentation, but that couldn’t be further from the truth. This will only put off the people you are trying to engage and make them lose interest faster.

It’s more important than ever to cut out all the clutter from your presentation. A powerful presentation has content that is clear, easy to understand, and uses simple

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IDENTIFY YOUR PRESENTATION’S PURPOSE What’s your main message?

You should have only one. Less than 10% of a presentation is remembered, so if you start jamming in too many messages, you will lose your audience.

What’s your objective?

Are you trying to educate your audience, share results or sell something?

Again, you should only be doing one of these.

What are your audience’s needs?

Do you have a clear understanding of who you’re presenting to? What do you want them to think, act or feel after you present? You must assess their beliefs, values and motivations. What makes them tick? Get into their shoes at the start, listen to them as you walk through the presentation and gather feedback at the end.

The best presenters are those who can use a combination of facts and emotions to explain a future that everyone wants to work toward language and images to connect with and engage your audience through a balance of emotion and analytics. Your audience will leave the presentation feeling different – inspired or excited to act on what you want them to do.

A poor presentation, on the other hand, has content that is overloaded with facts, stats, numbers, corporate jargon and dense text. It leaves the audience feeling confused, turned off and disengaged. They will leave the room with no idea of what to do next – except never attend one of your presentations again.

You must be clear and honest in your presentation. It’s also important not to try to hide or cover up negative information or numbers. Nothing turns clients or customers off more than when you lie about your financial position.

You need to be future-focused and take ownership of any problems. Explain the steps

you’re implementing to turn things around to minimise loss, and get your team involved to help with this, too.

Be open and honest about where you are right now and what’s involved in the journey to get where you’re going – together. Leave your audience inspired, not deflated like it’s their fault or you’re looking for an out.

Bad slides and presentations are used like a security blanket to hide things under.

So start with small changes to your content and attitude, and stop hiding and hoping for the best. Your customers, clients and team members will respect you for that.

Emma Bannister is passionate about presenting big, bold and beautiful ideas. She is the founder and CEO of Presentation Studio and the author of Visual Thinking: How to Transform the Way You Think, Communicate and Influence with Presentations. Find out more at presentationstudio.com.

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FEATURES

FLEXIBLE WORK

Is too much flexibility killing productivity?

Are your employees taking a flexible work policy too far? Anna O’Dea offers some tips for getting productivity back without taking away a desirable benefit

IN TODAY’S digital world, employees expect the opportunity to work at times and in places that suit them. The days of being chained to a desk from nine to five are disappearing as companies embrace the digital tools that free their talent to work from anywhere at any time, yet still stay connected.

cracks are showing. Some leaders are worried that productivity is taking a hit and team culture is dying, as people aren’t as present in the office. They know some employees are taking too many liberties, but they don’t want to snatch back the benefit.

If this sounds familiar, it might be time to

When setting boundaries, look at your own behaviour first. Are you being responsive when off-site, taking interest in your staff so they feel energised?

Strategy planning in a cute café, a conference call in transit to save time, skipping train delays to sort spreadsheets from the couch – the appeal is obvious.

The employers I talk to at Agency Iceberg know that offering freedom is a competitive way to attract and retain great people. But

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tighten up flexibility in your business. Here are some questions to consider.

Are my employees taking advantage?

If you’ve hired well, you should have committed people. But talent of all

tenures, generations and personal situations can lose focus when you loosen structure.

Watch for signs such as missing meetings, being difficult to reach online or via mobile within agreed hours, not hitting targets, or failing to meet deadlines.

Keep an eye on increasing requests for flex-time favours that don’t suit your business. Too many Friday afternoons off, despite the promise of making up time on the weekend, is unlikely to suit clientfacing roles.

How much flexibility suits what we do?

Think about the type of work that must be done, and when and where it’s best performed. Consider the ideal situations for teamwork, client meetings and mentoring.

What’s the right mix of in-person or online interactions for each – for example, daily in-person WIPs, weekly face-to-face strategy sessions or continual dialogue online?

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Should flexibility be earned?

If you give freedom to one part of the business, you should give it to all, with awareness of what’s appropriate for each role. But for new hires, it could help to set a probation phase. You can understand their working style, build trust and ensure they know what’s expected.

How can I get some discipline back?

When setting boundaries, look at your own behaviour first. Are you being responsive when off-site, taking interest in your staff so they feel energised? Then ask your team how they view the situation, as they could be struggling to adjust to digital life, and you can think about how to better manage the change.

Easy ways to get structure back include

booking regular in-person meetings and agreeing on hours employees must be available to clients and colleagues. Set expectations for response times, regardless of where the employee will be working from.

How can technology help?

You can keep everyone in easy reach by supplying quick messaging tools (such as Skype for Business, Slack or Google Chat) and video conferencing capabilities. Project management cloud platforms such as Toggl are great for time tracking, and workflow dashboards such as Trello help you see what everyone’s up to on projects.

How can culture help?

You want people to be self-motivated and happy to come into the office,

and to stay focused on their work when off-site. Culture can play a big part in getting momentum back. Set up workshops to share insights, challenges and encouragement. And there’s nothing wrong with team lunches and Friday celebrations to bring back the spark!

Flex is the future – but within reason.

Digital freedom is here, and everyone wants to embrace the benefits. Considering these questions should help you offer flexibility while keeping productivity high and a great company culture alive.

A recruitment expert and the founder and director of Agency Iceberg, Anna O’Dea has placed thousands of employees in the best workplaces. O’Dea is also the founder of #LeadingLadies, an award-winning interview series featuring C-suite professionals’ career journeys.

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PEOPLE

CAREER PATH

BLAZING NEW TRAILS From his first steps on the corporate broking ladder, Gallagher’s Paul Harvey has carved out an enviable industry career

Harvey got his start in the industry as an assistant account executive at JLT, working alongside a senior leader to support some of JLT’s largest corporate clients.

The next six years proved to be a learning ground as Harvey broadened his knowledge of insurance while gaining a deeper understanding of its technical aspects

1990

LEARNS THE ROPES

2006 STRATHEARN CALLS A year after Harvey joined boutique insurance broker Strathearn to look after Australia’s eastern states as joint managing director, he was appointed to the company’s board. Joining Strathearn proved to be a pivotal moment in his career as he led the well-known and respected brokerage on an upward growth path over the next two years

2016 SEES THE BIG PICTURE International brokerage firm Gallagher acquired Strathearn in December 2015, and Harvey transitioned into Gallagher’s Australian executive team as divisional managing director, leading a diverse corporate risk portfolio and helping the business build additional capability areas

2018 NARROWS HIS FOCUS Transformation of Gallagher’s specialist capability practice areas in late 2017 provided the perfect platform for Harvey to take the corporate teams to the next level in his new role as managing director of specialisms. Cutting across multiple sectors, including construction, marine, workplace risk, mining, trade credit and transport, Harvey’s team focuses on creating value via a differentiated client experience, which led to the trade credit team winning the award for Broker of the Year – Specialist at the 2018 Insurance Business Awards

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1996

BECOMES A PARTNER After JLT, Harvey was invited to join the AEI insurance broking team as an equity partner, working alongside Nick Zissis, Steve Bennett and Ken Allen. The move gave Harvey his first insight into managing client acquisitions and servicing larger accounts and complex risk programs.

Having access to a seasoned leader and mentor proved to be invaluable

2008 TAKES THE HELM When Strathearn joined the Austbrokers network, Harvey stepped into the CEO role, taking on a global portfolio that spanned Australia, Asia Pacific, the UK and Africa. Under his leadership, Strathearn built a culture of professionalism and dedication to client service and an enviable market reputation for insurance and risk expertise, managing complex programs in construction, mining, healthcare, political risk, life sciences and surety bonds

2017 LEARNS THE GALLAGHER WAY The strong alignment between Gallagher’s and Strathearn’s approach to client service created a winning combination for both the team and clients. Harvey and his executive peers drove growth in the Australian business, helping Gallagher’s brand presence and reputation gain increased traction and helping its corporate practice continue to grow and win key accounts

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PEOPLE

OTHER LIFE

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

MacKinnon says farm life mostly involves ma naging contractors a nd schedules – although he does get out of bed at 5. 30a m daily to feed the a nimals

2,700 Acreage of MacKinnon’s family farm

350

Total head of cattle on the farm

15%

Proportion of the farm dedicated to raising crops

DOWN ON THE FARM Lachlan MacKinnon can relate to the farmers he arranges insurance coverage for because he’s also one of them DESPITE BEING raised on a farm, Lachlan MacKinnon is relatively new at being a farmer – he moved back to his native Wagga Wagga to take over the family farm and open up Mack Insurance Services only a few years ago. MacKinnon works alongside his partner, Lizzie Carver, who is a director in the insurance

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business. This arrangement ensures the schedules of the two businesses dovetail at times of competing priorities, such as cattle weaning season in March and harvest time in November.

Because many of his clients are in agriculture themselves, “the ability to relate to them really gives me a massive

leg up,” MacKinnon says. “I can talk to them as a producer and not just an insurance professional.”

He also derives tremendous satisfaction from the hands-on nature of working the farm. “At the end of the day, I can see something I’ve produced that’s being used by the community.”

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