Insurance Business 8.03

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insurancebusinessonline.com.au Issue 8.03

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BROKERS ON INSURERS 2019 BROKERS ON INSURERS Which insurers came through for their 2018 broker partners this year?

AWARD WINNERS REVEALED Find out who took home a trophy at the Insurance Business Australia Awards

CYBER RISK AND THE C SUITE How to keep business leaders attuned to the risks presented by M&As

AUTHORISED REPRESENTATIVES Should you take the plunge and join an AR network?

ZURICH SME INSURANCE. GO WORLD-CLASS.

Zurich’s fast turn-around, easy access and swift, compassionate claims response makes us the natural choice for SME business packages.

For a service that is truly world-class, contact Zurich today.

VISIT Z.STREAM FOR A SMALL BUSINESS INSURANCE QUOTE. 1800 426 021

ZURICH INSURANCE. FOR THOSE WHO TRULY LOVE THEIR BUSINESS. This information is general advice only and does not take into account your objectives, financial situations or needs. You should obtain and consider the relevant Product Disclosure Statement and Policy Wording (as applicable) from zurich.com.au before making a decision. The issuer of general insurance products is Zurich Australian Insurance Limited (ZAIL), ABN 13 000 296 640, AFS Licence Number 232507 of 5 Blue Street, North Sydney NSW 2060.

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ISSUE 8.03

CONTENTS

@InsuranceBizAU facebook.com/InsuranceBusinessAU

UPFRONT 02 Editorial

Are the industry’s moves toward diversity and inclusion all talk?

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04 Head to head

What can insurance do to increase representation of minority groups?

06 Statistics

FEATURES

Climate change and cyber threats lead

BROKERSthe way on the list of the world’s biggest A FAMILY AFFAIR emerging risks ON INSURERS Chris and Daniel Webber of Webber Insurance Services on discovering an 2019 08 News analysis untapped niche in the SME market Cyber risk is putting increased pressure on companies’ boards and executives

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SPECIAL REPORT

10 Intelligence

A cyber insurer steps up to address social engineering risk

12 Insurer update

BROKERS ON INSURERS 2019 Brokers reveal which insurers are at the top of their game in claims service, underwriting, premium pricing and more

PEOPLE

BROKERS ON INSURERS 2018

BUILDING RESILIENCE

FEATURES

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FORGING NEW NETWORK CONNECTIONS How joining an authorised representative network can benefit you – and your clients

In his 40 years with FM Global, chairman and CEO Tom Lawson has become a believer in the power of using engineering to mitigate risks

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A ransomware lawsuit is exposing a troubling gap in cyber policies

14 Underwriting agencies update The head of DUAL Australia looks back at 15 years in the local market

19 Opinion

Insurtech is just the latest step on the ladder of industry technology

PEOPLE 55 Career path

No challenge is too big for Andre Mierzwa

56 Other life

On the pitch with broker and Camogie player Loretta O’Toole

FEATURES

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AWARD WINNERS REVEALED Find out who took top honours on the industry’s biggest night

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UPFRONT

EDITORIAL

Striding into a PR disaster

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nsurance Business has made no secret of our support for women in the insurance industry, whether it’s through our weekly Women in Insurance newsletter or our highly successful Women in Insurance conferences (which have proved a massive success worldwide, with an event in Sydney scheduled for August). It’s clear that our readers, too, have a desire to see women succeed in the industry.

However, when does the talk turn into legitimate, measurable action by those in power? Recent reports suggest that for all the posturing from the industry and the handful of inspiring female CEOs who have emerged, there is still a significant problem to be solved. Bloomberg’s recent exposé into the Lloyd’s market highlighted a “deep-seated culture of sexual harassment” that one industry player described as “basically a meat market”.

“Women at Lloyd’s [are] still being called names, including ‘totty’,” and are rated from 1 to 10 on “shagability”, an insurance PR specialist claimed. Most in the industry reacted to the report by noting that any form of sexual harassment

When does the talk about diversity and inclusion turn into legitimate, measurable action by those in power? is “indefensible”, and many were also quick to point to the “strides” the industry has made with its diversity and inclusion agenda. Yet having an agenda isn’t the same thing as taking real action.

Take Lloyd’s as an example. To its credit, it responded to the Bloomberg report with a “wide-ranging and robust” plan of action – making a commitment to hearing the accounts of the women in the article, incorporating women into its nomination board, and promising a comprehensive review of its policies and practices, including a confidential channel through which to report inappropriate behaviour.

Steps in the right direction? Absolutely. “Strides”, however? Perhaps we can talk about “strides” when measures such as these are introduced as standard rather than just on the back of a shameful report. It’s one thing to hurriedly attempt to counter a PR disaster – it’s another to implement a truly open and diverse culture where anyone, regardless of gender, ethnicity, race or sexuality, has the same opportunities to achieve success.

In this regard, insurance might have finally found the right path – but make no mistake, it still has a long trek ahead before it claims true success.

The team at Insurance Business

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EDITORIAL Managing Editor Paul Lucas Journalists Nicola Middlemiss, Alicja Grzadkowska, Bethan Moorcraft, Ksenia Stepanova News Writers Lyle Adriano, Krizzel Canlas, Terry Gangcuangco, Mina Martin, Gabriel Olano Staff Writers Tom Goodwin, Libby MacDonald, Joe Rosengarten, Ryan Smith, Heather Turner Copy Editor Clare Alexander

CONTRIBUTORS Frank Sentner, John Eades, Aytekin Tank

ART & PRODUCTION Designer Martin Cosme Production Manager Alicia Chin Traffic Coordinator Freya Demegilio

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

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

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Insurance Business is part of an international family of B2B publications, websites and events for the insurance industry Insurance Business America cathy.masek@keymedia.com T +1 720 316 0151 Insurance Business Canada john.mackenzie@kmimedia.ca T +1 416 644 874O Insurance Business NZ peter.smith@keymedia.com.au T +61 2 8437 47OO Insurance Business UK luther.rahman@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

HEAD TO HEAD

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UPFRONT

HEAD TO HEAD

What’s the key to elevating underrepresented people?

How can insurance better promote different races, sexes, ethnicities and other underrepresented groups in the workplace?

Richard Enthoven

CEO Hollard Insurance Australia “Key for Hollard has been to maintain our momentum supporting a flexible workplace that values diversity of lived experience. Our driver: the belief that psychological safety and cognitive diversity together enable underrepresented people to achieve their best.

We’re alive to unconscious bias across the employee life cycle and look for ways to redress it in recruitment, retention and promotion. We have a three-year D&I roadmap with an articulated strategy, targeted working groups and board reporting each quarter keeping us focused and accountable. We’re also not afraid of committing to targets such as 50% women in leadership roles by 2023.”

Shelley Flett Consultant iCare

“The key to elevating underrepresented people in the workplace starts with relationships – and specifically how we communicate with each other. If we’re going to challenge assumptions and break stereotypes, then we must encourage others to set aside their judgement and engage in conversations with curiosity and an openness to learn.

It also requires the person needing the elevation to be OK with others’ perceptions and not take things personally. It is up to them to take control of growing and nurturing these relationships and changing the way others see them … and part of this is how they see themselves.”

Ed Cooley

EGM, people and performance Suncorp “This comes not only from having the right policies and processes in place, but making ourselves accountable and living these values in our interactions. We are our best when our workforce reflects community diversity.

People must feel comfortable bringing their whole selves to work; this can be achieved through initiatives such as employee resource groups or by recognising and celebrating specific events such as IDAHOBIT Day or National Reconciliation Week.

It’s critical to see it as a business issue, not an HR issue. Making a difference for such groups creates a stronger business and delivers a better working experience for everyone.”

THE GENDER GAP According to STEMconnector’s latest report on women in insurance, the proportion of female employees in insurance occupations ranges from 46.5% of sales agents to 85% of claims and policy processing clerks. But at the other end of the spectrum, women hold only 11% of named executive officer positions and only 19% of board seats across the industry, despite making up more than 60% of the insurance workforce overall. Perhaps most tellingly, a study by the Workplace Gender Equality Agency in November 2018 found that insurance and financial services had the largest gender pay gap of all industries in Australia, with a 26.9% difference between the salaries of men and women.

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UPFRONT

STATISTICS

A climate of risk

NORTH AMERICA

1. Climate change 2. Cybersecurity risks 3. Volatility of the geopolitical landscape 4. Social discontent and local conflicts 5. Medical innovations and use of technology in healthcare

Climate change and cybersecurity aren’t new risks, but they are becoming more urgent For the third year in a row, climate change and cybersecurity have topped the list of the world’s biggest emerging risks – but the margin by which these two categories were singled out in AXA’s annual Emerging Risks Survey has almost doubled over the last year, indicating the urgency with which both risks are regarded.

Sixty-three per cent of the professionals

90%

of professionals said physical risks are their main concern about climate change

72%

said the rise of nationalism and populism is the biggest geopolitical threat

surveyed named climate change among their five biggest emerging risks, up from 39% in 2017. Meanwhile, 54% of respondents put cybersecurity in the top five, up from 34% the previous year. Rounding out the list of the top five most critical emerging risks were volatility of the geopolitical landscape, natural resources management and social discontent.

49%

of respondents named overconsumption as the top risk to natural resources

40%

said growing economic inequality is the major factor contributing to the risk of social conflict

THE WORLD’S BIGGEST EMERGING RISKS Climate change and cybersecurity ranked as the top two emerging risks in every region of the world; the Middle East stands alone in placing cyber risks ahead of climate change.

Social discontent and local conflicts were also a top-five risk in nearly every region of the world, although the importance varied by location.

Europe, Asia, and Central and South America also expressed growing concern about the rise in artificial intelligence and Big Data.

Source: AXA Emerging Risks Survey 2018

THE TOP 10

GROWING CONCERNS

Climate change and cybersecurity held their positions as the top two emerging risks worldwide, while geopolitical volatility and social discontent have both climbed several notches since 2017.

The percentage of respondents who included climate change, cybersecurity and geopolitical volatility as one of their top five emerging risks has risen markedly since last year. As for risks that have declined, respondents felt financial and macroeconomic risks aren’t as pressing a concern a decade after the global financial crisis.

Percentage who named it as a top-five risk in 2018

1. Climate change 2. Cybersecurity risks 3. Volatility of the geopolitical landscape 4. Natural resources management

60%

40%

6. Artificial intelligence and Big Data

30%

7. New threats to security

20%

10. Pandemics and infectious disease Source: AXA Emerging Risks Survey 2018

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63% 54%

50%

5. Social discontent and local conflicts

8. Pollution 9. Medical innovations and use of technology in healthcare

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Percentage who named it as a top-five risk in 2017

70%

39%

34%

20%

10% 0%

31%

Climate change

Cybersecurity

Volatility of the geopolitical landscape

26%

25%

25% 16%

Natural resources management

Social discontent and local conflicts Source: AXA Emerging Risks Survey 2018

EUROPE

1. Climate change 2. Cybersecurity risks 3. Volatility of the geopolitical landscape 4. Social discontent and local conflicts 5. Artificial intelligence and Big Data

MIDDLE EAST

1. Cybersecurity risks 2. Climate change 3. Natural resources management 4. Volatility of the geopolitical landscape Social discontent and local conflicts

CENTRAL AND SOUTH AMERICA

ASIA

1. Climate change 2. Cybersecurity risks 3. Artificial intelligence and Big Data 4. New threats to security 5. Medical innovations and use of technology in healthcare

1. Climate change 2. Cybersecurity risks 3. Natural resources management 4. Social discontent and local conflicts 5. Artificial intelligence and Big Data

AFRICA

1. Climate change 2. Cybersecurity risks 3. Social discontent and local conflicts 4. New threats to security 5. Macroeconomic risk

Source: AXA Emerging Risks Survey 2018 Source: 2018 Political Risk Survey, Oxford Analytica/Willis Towers Watson

THE PACE OF EMERGENCE Climate change is a pressing issue: More than half of respondents said this risk has already emerged, while around a third consider it to be rapidly emerging. Cybersecurity, meanwhile, continues to be classified as a rapidly emerging risk; 54% of the professionals surveyed put it in that category.

Climate change

Already there

Rapidly emerging

51%

Slowly emerging

36%

13%

54%

13%

DIVERSE CYBER CONCERNS Cybersecurity risk is multifaceted, but respondents identified three main areas of concern: attacks on critical infrastructure, attacks on connected devices, and new types of malware.

Cybersecurity

33% Volatility of the geopolitical landscape

40%

32%

32%

30%

45%

38%

17%

21%

20%

Natural resources management

45%

35%

20%

Social discontent and local conflicts

10% 0%

39%

40%

21% Source: AXA Emerging Risks Survey 2018

Cyber-physical attacks on infrastructure

Attacks on connected devices

New types of malware

Source: AXA Emerging Risks Survey 2018

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UPFRONT

NEWS ANALYSIS

Cyber meets executive risk Whether it’s from M&A activity or a rise in regulation, boards and C suites are more exposed than ever to cyber fallout CYBERSECURITY CAN’T just become a priority after an incident has brought a company to its knees. According to Aon’s 2019 Cyber Security Risk Report, cyber risks continue to escalate in number, severity and sophistication, which means today’s boards, C-suites, and security and risk leaders need to be preparing for attacks by continually assessing their vulnerabilities, fixing their security gaps and proactively mitigating their risks.

“The nature of the risk is constantly changing,” says Alessandro Lezzi, focus group leader of international cyber and tech at Beazley, which recently announced it was combining its cyber insurance and executive risk capabilities into one division. “Now, every single crisis goes viral very quickly and then normally affects the reputation of the

losing their job after an incident to the share value of a company dropping post-breach.

Equifax’s stock, for example, plunged after 143m of its US customers were impacted by a cybersecurity breach.

Lately, cyber risk has also come up in merger and acquisition activity. Marriott experienced a massive breach that impacted hundreds of millions of people after hackers went after the Starwood reservation system to access guest data. The hack affected around 300m guests and emphasised how important due diligence is during an M&A transaction.

“The due diligence around information security in an M&A transaction has been somewhat limited,” says Rob Rosenzweig, national cyber risk practice leader at Risk

“The nature of the risk is constantly changing. Now, every single crisis goes viral very quickly” Alessandro Lezzi, Beazley company. This can be a cyber incident, a class action after a cyber incident, a #MeToo crisis.

Because of this, we’re seeing that all of these risks, which are changing all the time, pose extreme complexity at the board level.”

Cyber incidents can impact the heads of companies in a variety of ways, from a CEO

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Strategies, “so what we like to see our clients that are engaging in M&A activity do is a few things: Ask for information around the IT infrastructure that the acquisition target is currently deploying. Understand what, if anything, they’re doing from a risk management standpoint ... things like penetration

testing or network assessments. If so, see the most recent reports from those audits to understand what, if any, vulnerabilities have been identified and if some of those vulnerabilities have been resolved or if they are still outstanding. We also want to dig a little bit more in terms of information governance and policies and procedures – what sort of information does the acquisition target collect on its customers or employees, how are they protecting that information, and how are they storing that information?”

Doing due diligence doesn’t mean that a potential buyer should walk away from the transaction if red flags are identified, but it does put the acquiring company in a position where they know more and can thus be better prepared. That includes uncovering and addressing the grey areas in insurance coverage before discovering that both policies cover cyber claims – or neither of them do.

“There needs to be some clarity as to

CYBER RISK BY THE NUMBERS

59%

of companies have experienced a data breach via a third party

35%

of companies describe their third-party risk management program as “highly effective”

75%

of board directors say they’re more involved with cybersecurity than they were a year ago how an issue that’s uncovered post-close is going to be dealt with,” Rosenzweig says. If Company A acquires Company B and a cyber attack occurs post-acquisition, for instance, there could be questions of whether that should be picked up under the buyer’s policy or whether the claim can be addressed under

are out there and the regulatory environment,” Rosenzweig says.

The regulatory landscape is also increasing the interconnectedness between cyber risk and the C suite. For example, the EU’s General Data Protection Regulation [GDPR], which applies regulations to any

“There needs to be some clarity as to how an issue that’s uncovered [postacquisition] is going to be dealt with” Rob Rosenzweig, Risk Strategies the policies the seller had in place at the time the transaction closed.

Nonetheless, sometimes even the most prudent due diligence in the world will still miss underlying issues. “This is still somewhat uncharted territory and a developing landscape, both in terms of the threats that

company offering goods or services to EU residents or monitoring the behaviour of EU residents, mandates that certain companies need to appoint a data protection officer, which adds D&O exposures.

“Rating agencies are also taking into account cybersecurity when rating a

53%

of cybersecurity professionals revealed in a 2018 survey that their organisations had suffered an insider attack within the last year Source: Aon 2019 Cyber Security Risk Report

company, which again poses a challenge to companies because if they want access to the market to increase their capital to get money from investors, they need to take care of their cybersecurity posture,” Lezzi says.

In this environment, he adds, putting Beazley’s cyber and executive teams together just made sense. “The two risks are more and more interlinked. This is also the reason why we’re putting these two divisions together – to match the risks and be able to provide effective solutions to clients.”

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UPFRONT

INTELLIGENCE CORPORATE ACQUIRER

TARGET

PRODUCTS COMMENTS

Applied Systems

TechCanary

Applied Systems hopes its acquisition of the insurance CRM will drive greater sales and marketing automation for insurers, agencies and MGAs

Gallagher

AgriRisk Services

NSW-based AgriRisk Services offers farm insurance products and services to higher-value rural enterprises

Hanover Insurance Group

China Reinsurance Corporation

Hanover Insurance Group has completed the sale of its Chaucer-related companies in Ireland and Australia to China Reinsurance Corporation for total proceeds of $41m

Steadfast

IQumulate

Steadfast has raised its stake in Macquarie Group’s premium funding business to 100% and has rebranded it as IQumulate

Aon introduces pollution product

Aon has rolled out a new insurance product designed to safeguard companies against environmental events. The firm’s Safety Hazard Environmental Liability offering combines statutory liability and workplace health and safety with environmental incident response to cover the costs of an unexpected pollution incident. The policy covers access to environmental professionals, emergency response costs, investigation and cleanup costs, compensation for third-party injuries, defence costs, and public relations and crisis management services.

Gallagher acquires high-value rural provider

Global insurance giant Gallagher strengthened its agricultural offering in May with the acquisition of AgriRisk Services, an NSW-based provider of rural and farm insurance solutions to higher-value rural enterprises and large corporate agribusiness operations throughout Australia.

The deal brings a range of crop risk management solutions to complement Gallagher’s existing strengths in farm insurance. AgriRisk’s North Sydney and Toowoomba teams will relocate to Gallagher’s existing offices in those cities, while its Tamworth team will remain in its current location.

“AgriRisk Services is a strong cultural fit with Gallagher,” said Gallagher CEO J. Patrick Gallagher, “and the team significantly expands our farm and agribusiness capabilities across Australia.”

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Tego expands medical indemnity offering

Specialist underwriting agency Tego has added coverage for entity medical malpractice, life sciences and clinical trials to its existing doctors’ medical indemnity product. According to CEO Eric Lowenstein, the new product lines fill significant gaps in the market, particularly for life sciences and clinical trials. “Capacity is not keeping pace with the sector’s rapid growth, so it’s a clear opportunity for Tego to bring Lloyd’s capacity and our focused, specialist industry expertise to provide a product that meets this growth market’s needs,” he said.

PEOPLE Emergence addresses social engineering risks

Emergence Insurance has updated its cyber policy wording after observing a rise social engineering attacks.

The optional new section provides cover for criminal financial loss and is specifically tailored for socially engineered thefts and cryptojacking.

According to Gerry Power, national head of cyber sales at Emergence, the new policy wording comes as other players in the market pull away from social engineering. “[Management liability] insurers have been getting absolutely destroyed by social engineering claims, so their prices are going up or they’re actually deleting the cover completely,” Power said.

BizCover offers protection against policy changes

BizCover has launched a first-of-its-kind product that provides cover to small businesses for loss of income and increased costs resulting from changes in government policy such as tax hikes, increased red tape or tighter regulation. BizCover’s government interruption insurance includes consultant costs to help businesses navigate new legislation, cost of additional administration staff to help manage new processes, damage to premises due to political unrest, and the option to add relocation cover after the election.

Aon launches warranty and indemnity product

Aon has introduced a new warranty and indemnity product that addresses the risks associated with real estate transactions. The product, Aon Real Estate Solutions, features lower premiums and deductibles, as well as coverage up to full purchase price for title warranties at market-competitive premiums. It also includes the ability to provide bespoke cover for identified exposures, stapled W&I insurance to support competitive auctions and portfolio asset sales, and speed of execution through streamlined underwriting.

NAME

LEAVING

JOINING

NEW POSITION

Jamie Bowes

QBE

HDI Global Specialty

Head of aviation

Paul Cassar

WorkSafe

Gallagher Bassett

Strategic manager of mental health

Nick Dendrinos

Zurich

NTI

Head of motor

Tim Johns

Aon

Gallagher

State sales manager, Tasmania

Craig Newton

QBE

Zurich

Head of claims, general insurance

Claudio Saita

Tokio Marine

Canopius

Country manager, APAC

Kelly Smith

HESTA

AIA Australia

Head of innovation

Mike Wood

Westpac

Allianz

Chief information officer

Zurich names new claims head

Insurance giant Zurich has bolstered its claims capabilities, officially welcoming industry veteran Craig Newton to the team. Newton, who has more than 30 years of experience across claims, underwriting and operations roles, will serve as head of claims for Zurich’s general insurance arm. Newton joins the insurer following a 20-year stint at QBE, where he was most recently senior vice president of insurance services.

“Craig is passionate about the experience of our broker partners and customers and, through his experience, will accelerate our progress in developing a market-leading claims proposition,” said Zurich chief claims and operations officer Hilary Bates.

Motor industry expert joins NTI

Motor industry veteran Nick Dendrinos has left Zurich to join specialist insurer NTI as head of its motor portfolio – a newly created role for the firm. Dendrinos has more than 30 years of experience in the sector, including 13 years at Zurich Financial Services Australia, where he most recently served as head of motor for Australia and New Zealand.

“We’re looking forward to Nick joining the team for a multitude of reasons – his insight, diverse pool of knowledge and, of course, his character,” said NTI CEO Tony Clark. “We value a fresh perspective, boosting our ability to execute the exciting initiatives we are pursuing, backed by passion and a wealth of experience – and that’s exactly what he’ll bring.”

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UPFRONT

INSURER UPDATE NEWS BRIEFS FM Global to see influx of lossprevention engineers

Commercial property insurer FM Global has announced plans to hire more than 60 specialist engineers this year as it seeks to reduce boiler- and machineryrelated losses for clients. “Equipment breakdown is now rivalling fire losses in frequency and severity, which puts businesses at risk of short-term disruption and long-term financial harm,” said Brion Callori, SVP of engineering and research. “By expanding our team, we’re deepening our commitment to boiler and machinery loss prevention to benefit our clients.”

Allianz report highlights “eye-watering” cyber costs

A new report from Allianz is casting a light on the skyrocketing cost of cyber attacks, which the insurer has found is now the second biggest concern for businesses worldwide. Five years ago, cybersecurity came in 15th on the list of businesses’ top concerns, but has since shot up the rankings due to the increased frequency and sophistication of online attacks. The report comes shortly after the UK government estimated the price tag of annual global cyber losses at around US$600bn.

“That’s certainly eye-watering,” said Sinead Browne, chief regions and markets officer at Allianz Global Corporate and Specialty.

Specialty insurer Canopius to open office in Australia

The Australian insurance market is about to become even more crowded: insurer and reinsurer Canopius has announced plans to open a Sydney office. The firm currently maintains

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offices in eight countries. The Sydney office will handle operations in both Australia and New Zealand, targeting SME business via coverholders, wholesale direct and facultative, and reinsurance treaty business. Canopius plans to establish its local entity in time to underwrite business for the 30 June renewal season.

Zurich wins award for disaster review program

Zurich Insurance has won acclaim for its disaster review program, picking up the Outstanding Achievement Award at the 2019 National Hurricane Conference.

The insurer earned the award for its Post Event Review Capability [PERC] approach, an open-source methodology that evaluates how natural hazards turn into community disasters. The PERC methodology, which also provides recommendations to promote community resilience, was created by the Zurich Flood Resilience Alliance in 2013 and has since been applied to 14 severe weather events around the world, including a post-event review on Hurricane Florence in the US.

QBE cuts ties with longtime sporting partner Perth Glory

One of the longest-running sponsorships in Australian sport will come to an end this year after insurance giant QBE chose not to continue its partnership with soccer club Perth Glory. According to QBE, the decision was the result of the insurer’s desire to channel greater support into the arts and festival space as a means of achieving greater gender balance across its portfolio. “After 20 cherished years with Perth Glory, and in line with the portfolio review, the end of this final series will draw the partnership to a close,” a QBE spokesperson said.

Lawsuit highlights cyber gaps A lawsuit filed in the wake of the NotPetya attack has revealed a potentially “massive hole” in cyber coverage The lawsuit brought by Mondelez against its insurance provider, Zurich, has highlighted some worrying concerns around cyber policies and their potential gaps.

Mondelez sustained losses of more than US$100m in 2017, when the NotPetya ransomware attack led to widespread business disruption, credential theft and unfulfilled customer orders. The following year, Zurich informed the food and beverage conglomerate that its property insurance policy wouldn’t cover the losses and pointed to the policy’s war exclusion clause as justification.

Unsurprisingly, Mondelez responded by launching an insurance coverage action, stating that it was seeking relief for Zurich’s breaches of contractual obligations under an all-risk property insurance policy, as well as the insurer’s failure to honour promises and bad faith conduct.

James Carter, an attorney in the policyholderonly insurance recovery practice at Blank Rome, says the case has interesting implications for cyber insurance.

“While the policy at issue is a property policy, the reason why this case is getting so much attention in the cyber insurance community is because the insurance company has denied coverage based on the war exclusion,” he says, adding that this exclusion appears in virtually every cyber policy. “We don’t know specifically from the complaint the insurer’s

rationale for raising the exclusion, but the NotPetya attack reportedly originated with Russia in its effort to destabilise the Ukraine.

Because the virus had its origin in the activities of a sovereign state, that appears to be the reason why the insurance company is invoking the exclusion.”

The war exclusion is notoriously complicated for insurers to prove, as it’s difficult to

“The war exclusion in the Mondelez case reflects a broader concern about cyber insurance policies” establish to the satisfaction of the court that a state or a state-linked actor was behind an anonymous cyber attack. However, Carter says that if the exclusion applies in this case, it could potentially create a “massive hole” in cyber policies that are being marketed to address precisely this type of risk.

“From my perspective as an attorney who represents policyholders, the war exclusion in the Mondelez case reflects a broader concern about cyber insurance policies,” he says. “The cyber policies are not standardised, and while there are similarities from one policy to the next, there’s a great variety of wording on the market. If you’re comparing policies, you often find differences that make you scratch your head – they contain broadly worded provisions, exclusions and limitations, or complicated provisions that could lay the groundwork for coverage disputes.”

Q&A

Paul May Operations engineering manager FM GLOBAL

Years in the industry 25 Fast fact May serves as FM Global’s subjectmatter expert in cyber assessments, analytics and global flood maps

Managing risk in heritage buildings What are some of the unique challenges associated with insuring and managing risk in heritage buildings?

Many heritage buildings were constructed in a time and place when official building standards didn’t exist, which can create serious risk management challenges for modern-day insurers. For example, outdated electrical systems can pose a fire hazard. Conventional solutions to these challenges, such as installing active fire protection or constructing fire walls, may cause damage to ceilings or may not align with the aesthetic of the building. Often, heritage buildings have strict restrictions against alterations, which can prevent installation of solutions like automatic sprinklers.

Some historic buildings are grandfathered into old building codes that aren’t required to have protective mechanisms in place, such as sprinklers. Often, these older buildings contain combustible wooden construction and features, while the collections they house may also be combustible and could contribute to the spread of fire.

Furthermore, heritage buildings often have what we call ‘concealed combustible spaces,’ which are places that are extremely difficult or even impossible to access. If these spaces are built using combustible materials, the resulting fire could be extremely difficult to fight.

How are risks managed when it comes to renovations of heritage buildings?

FM Global recommends that any kind of renovation should meet the current building codes and standards. This is especially important for high-value historic buildings that often serve as significant public spaces. When a heritage building is undergoing renovations, it’s important to consider the risks inherent with hot work, which would include activities that involve burning, welding, or using fire- or spark-producing tools that produce a source of ignition. Improperly managed welding, soldering or grinding has proven to be a leading cause of property damage each year. Flying sparks or hot particles can easily fall into concealed, often inaccessible spaces and become a fire threat. This is especially true with historic properties.

In order to minimise fire risks, FM Global suggests implementing prevention measures, such as covering with fire blankets and a continuous fire watch during the execution of the hot work. This watch should extend throughout all break periods and for at least one hour following the completion of the hot work. Furthermore, the use of automatic sprinklers has an excellent track record as a method to help control or aid in the suppression of fires. A review of current regulations and how they can be amended to include automatic sprinklers in heritage buildings could help to prevent tragedies like the fire in the Notre Dame Cathedral.

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UPFRONT

UNDERWRITING AGENCIES UPDATE

A decade and a half of success DUAL Australia’s CEO looks back at the inroads his company has made in its 15 years in Australia

According to Coates, that independence gives DUAL a unique competitive edge. “That commitment has allowed us to attract the best talent and also to attract the best carriers because insurers and employees know that we’re going to stay independent,” he says. “We won’t be selling to a big insurer; we won’t be selling to a big cluster group – we’ll be staying independent, so carriers are prepared to invest in DUAL, and people can come and build 10to 15-year careers here.”

“Our real pride has been helping to grow the overall market”

Fifteen years after DUAL first launched in Australia, CEO Damien Coates says he never expected to enjoy such a degree of success.

“Did I, in my wildest dreams, hope that we’d be employing 160 people with seven offices in four countries? No,” he admits. “Are we thrilled that that’s what we’ve achieved? Absolutely.”

Since it launched in 2004, DUAL has grown into a $187m business with a presence across Australia, New Zealand, Hong Kong

NEWS BRIEFS

and Singapore. Coates, who helped launch the Australian operations, said the organisation’s success is partly due to it being a member of the wider Hyperion Insurance Group.

“The group was formed based on David Howden’s energy, and David’s managed to keep the business independent for 25 years,” Coates says. “You also regularly hear him saying the group will be independent for the next 25 years.”

SALT capitalises on market demand with another office

Marine underwriter SALT has expanded its footprint yet again, this time opening an office in Melbourne. The new location was announced just weeks after the underwriter opened a Perth office.

Former Chubb veteran Richard Grant has been brought in to head the Melbourne branch, joining the SALT team as marine manager of cargo. Andrew Black, SALT’s head of marine for Australia, said the move is indicative of the “increasing and growing support” the firm is receiving from the broker community.

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Coates is especially proud of the way in which DUAL has been able to impact the market. “We’re probably most thrilled that we’ve actually been able to work with brokers to grow their profits and help grow the overall insurance market,” he says.

By focusing primarily on management liability, cyber and corporate travel, DUAL aims to help brokers sell new products to existing clients.

“Ten years ago, less than 5% of companies purchased management liability or corporate travel, and nobody even knew cyber existed,” Coates says. “Now, we have 110,000 policies, and most of those were for first-time buyers, so our real pride has been helping to grow the overall market rather than just fighting for market share.”

Longitude enters new arrangement with Chubb

Strata insurance specialist Longitude has ended its six-year partnership with Vero and forged a new arrangement with Chubb. According to Longitude director Angie Zissis, the Chubb partnership is a key part of the underwriting agency’s long-term growth strategy and will allow Longitude to deliver “an efficient and gainful broker experience”. “With almost seven years of building our strata portfolio from scratch, we were comfortable our position was strong enough to take the business to the next level,” Zissis added.

Q&A

Eric Lowenstein CEO

Major opportunities in the medical sector

TEGO INSURANCE

Years in the industry 15 Fast fact Before founding Tego in 2015, Lowenstein held senior positions at Aon, Mega Capital, Liberty and Norton Rose Fulbright

How would you describe insurer appetite for risk in the medical, life sciences and clinical trial sectors?

There are limited insurers in healthcare and even fewer writing life sciences and clinical trials. Appetite is drying up, and several insurers have retreated. Those still writing business are becoming more conservative about issues like vicarious liability and abuse liability and limiting cover. One insurer has removed vicarious liability cover. But it’s a complex area of insurance law, and removing the cover can create significant uninsured losses and potentially expose brokers to E&O risk.

Is there an issue of underinsurance in the sector because of limited capacity?

Underinsurance results more from the need for client education than limited capacity. Thousands of Australian medical practices have no entity medical malpractice insurance. That creates untapped potential for brokers.

Those practices rely on individual medical practitioners to have their own insurance to respond to adverse outcomes from their patient care. But practices face risks that may not be covered by practitioners’ individual policies. Medical practices interact with patients and support practitioners and ancillary services. Practice protocols, staff errors and system failures can create or contribute to poor patient outcomes, exposing practices to legal action

Pen Underwriting CEO makes charity pledge

The chief executive of Pen Underwriting has committed to sleeping outdoors on one of the longest and coldest nights of the year to raise awareness and build support for the many Australians who experience homelessness. Ken Keenan will join hundreds of CEOs, business owners, community leaders and government figures taking part in the Vinnies CEO Sleepout event on 20 June in Sydney. Keenan has a personal goal to raise $5,000; in 2018, the event raised a total of $6.9m nationally and is targeting $7.1m for 2019.

or complaints. While take-up is on the rise, many healthcare entities have no cyber cover.

The medical, life sciences and clinical trial markets are booming in Australia – does this present a potentially lucrative opportunity for brokers?

Yes, for brokers who take the time to understand the industry. The sector is highly reliant on specific advice from brokers. Tego regularly engages our broker network with training about the market and product specifics to arm them with the tools they need to win business.

Our brokers have identified useful marketing initiatives in healthcare through mediums including social media, industry conferences, annual scientific meetings [ASMs] and practice visits. It is an industry where marketing emails and fliers do little for engagement, but cold calls or dropping into a practice to provide insights has been incredibly successful. I am amazed at the untapped value often sitting with brokers’ existing clients. In standard GP practices, there is often a broad range of insurances brokers are not assisting with.

What frustrations or feedback have you heard from brokers working in the space?

Health is a fast-moving industry, and insurers often have little time to respond. Underwriters must be responsive, manage expectations, and have the expertise to help brokers and clients navigate the exposures.

Specialist underwriter insures nudist colonies

It’s unlikely that many brokers will have been asked to find cover for a nudist colony, but for those who have, there’s now an additional player in the market to make things easier. Specialist underwriter All Parks has traditionally focused on caravan parks and camping grounds, but the firm officially broadened its target market in May. In addition to offering insurance solutions to boutiquestyle accommodation businesses, glamping sites and lifestyle villages, All Parks now also offers cover for clothing-optional resorts.

Ensurance unveils cover for property defects

Listed underwriting agency Ensurance has rolled out a new product that provides cover for property damage caused by structural defects. The firm has secured Lloyd’s capacity to launch its latent defects product, which covers costs to rectify structural defects discovered up to 10 years after construction has been completed. The agency has also secured increased capacity from providers to extend its range of construction products to include environmental impairment and property owners’ liability.

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PEOPLE

THE BIG INTERVIEW

BUILDING RESILIENCE During his long tenure at FM Global, chairman and CEO Tom Lawson has remained focused on furthering the company’s mission of mitigating risk through engineering expertise

THE PATH to a long and successful career is often more about the journey than the destination. Long before Tom Lawson reached the upper echelons of commercial property insurer FM Global, he began at the firm as a field engineer, conducting risk assessments, providing loss prevention engineering recommendations to clients, and gaining exposure to the wide range of industries and Fortune 1000 companies to which FM Global brings value.

For 23-year-old Lawson, the experience proved invaluable, and the more he did the work, the more he enjoyed it and saw how the company’s values aligned with his own.

“Forty years later, here I am,” he says. “It’s pretty rewarding to sit back and think about it now – that you can start out as a field engineer and end up as chairman and CEO. For me, it’s been a great journey.”

In between his first position at FM Global and his current one, Lawson climbed up the ranks of the company’s engineering group and was responsible for opening a branch office as an engineering manager. He later picked up the title of underwriting manager, which was his first foray into the insurance side of the business.

“It was interesting not having any insurance experience, but the real focus was the

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ability to differentiate risk, which is something that’s fundamental to everything we do in the company,” Lawson says.

Later, he created the unit that oversaw the company’s global forest products operations and eventually led the team that built the company’s research campus – the world’s largest centre for science-based property loss prevention research and product testing. It

Employee of the decade When Lawson took over the operations of the company as an executive vice president in 2008, and finally was appointed CEO in 2014 before picking up the title of chairman in 2018, he was more than prepared to lead a company whose many sides he had already seen. Today, he’s a key example of FM Global’s ability to retain its team members

“The fact that we’re a research-based organisation, as opposed to an insurancebased organisation, allows us to create the science that our engineers then turn into practical solutions and share with our clients” was one of the shining moments of his career at FM Global.

“Our research campus is where everything starts,” Lawson says. “It’s really a foundation for everything the company does related to engineering and underwriting. To be able to design and build a one-of-a-kind facility that is used to deliver on our value proposition was pretty important.”

for an average of 13.2 years, which he credits in part to its mutual structure.

“We’re a mutual company as opposed to a stock company, which allows a singular focus on what’s best for our clients, who are actually our owners,” Lawson explains. “Unlike a publicly traded company, there’s never a conflict between what’s best for our shareholders versus our clients. It also sets the tone

PROFILE Name: Tom Lawson Title: Chairman and CEO Company: FM Global Based in: Johnston, Rhode Island Years in the industry: 40 Career highlight: Leading the team that designed and built the FM Global Research Campus

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PEOPLE

THE BIG INTERVIEW for our culture in the way we deal with our mutual owners, our clients. It permeates into how we deal with each other at the company and contributes to long-term relationships.”

With FM Global’s high employee retention rate, it’s clear the company is doing something right as retirements loom large over the insurance industry. Millennials get a bad rap, according to Lawson, who meets with many new employees when they join the company and says they consistently tell him they’re taught to change jobs every few years in order to advance in their careers.

“What they say is that as long as their employer is interested in their development and spends time to communicate with them,

organisation, as opposed to an insurancebased organisation, allows us to create the science that our engineers then turn into practical solutions and share with our clients,” Lawson says.

The FM Global Research Campus is devoted to stopping physical threats from becoming major catastrophes. Its four laboratories study fire technology, natural hazards, electrical hazards and hydraulics.

Teams within each lab run experiments that help to develop understanding around each risk. In the fire technology lab, for example, researchers learn about the causes of structural failure, the speed at which fire spreads and sprinkler protection systems.

“The majority of loss is preventable, so the good news is you can actually change your future by choosing to make your facilities and your corporation resilient” they’re not interested in switching companies every two years,” Lawson says.

A focus on loss prevention FM Global’s capital and risk management expertise is focused on commercial property insurance, and it aligns itself with companies that share its belief in the value of loss prevention. It’s important to find clients who think the same way, Lawson says, and are willing to commit to making loss prevention a key part of their strategic planning and to taking the actions needed to make their facilities resilient.

In order to create resilient companies, FM Global’s experts start by identifying the property-related risks facing their clients and then provide them with practical solutions to mitigate exposure. The company is unique in its risk management approach in that it uses engineers, not actuaries, to help clients assess and address their property risks.

“The fact that we’re a research-based

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Natural catastrophes, business interruption and cyber attacks that demobilise physical facilities are a few of the top-ofmind risks threatening insureds today, but there’s another, often overlooked danger that Lawson believes is crucial for companies to pay attention to.

“The biggest risk that’s emerging is when you don’t make loss prevention and risk management part of your strategic planning,” he says. “I think that’s acknowledging that loss is not a foregone conclusion, and you don’t have to accept that. The majority of loss is preventable, so the good news is you can actually change your future by choosing to make your facilities and your corporation resilient.”

FM Global was founded nearly two centuries ago on the premise that members of the mutual company had to take care of their businesses’ facilities. This belief continues to underpin the insurance company’s work as it turns science into solutions for its clients around the world.

FM GLOBAL BY THE NUMBERS

1835

Year FM Global was founded

13.2

Number of years the average employee spends at the company

94%

Client retention rate in 2018

145

Countries serviced by FM Global’s engineering network

US$3.9bn

FM Global’s consolidated net earned premium in 2018

UPFRONT

OPINION

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

Evolution, not revolution Insurtech has been praised for bringing technology to the insurance industry, but the technology has been there all along, writes Frank Sentner THE INSURANCE industry is all a-twitter (literally) about the insurtech revolution, but most of the folks involved in insurance technology today are unaware that insurance was an early adopter of technology. In the 1960s, Travelers installed one of the very first IBM mainframe computers, and its peers were not far behind. In the 1970s, I sold time-shared mini-computers roughly the size of a refrigerator to insurance agencies to do invoicing and accounting. At the time, only the largest agents could afford such technology.

In the 1980s, the advent of personal computers launched systems that boasted office automation capabilities in addition to accounting. For the first time, even the smallest insurance agencies could afford desktop computers to manage their work processes, and insurance agents were among the first small businesses to embrace this technology.

Two disparate technological challenges confronted the insurance industry in the ’90s: the looming threat of Y2K software failures and the new phenomenon of the internet.

Insurers and agency management system vendors were torn between replacing their aging mainframe and desktop computers to take advantage of this new technological leap forward or patching their old systems for Y2K. They settled for web-based facelifts for their old back-end systems rather than purchasing or developing fully web-enabled solutions.

As we crossed the threshold into the new millennium, terrible combined loss and expense ratios, followed by the Great

Recession, sapped what little appetite insurers and insurance software vendors might have had for innovation. As the current decade unfolded, however, technological innovation blossomed again in the insurance industry.

Insurers and agents alike realised that the dominance of smartphones as the primary mode of consumer communication, along with the emergence of cloud computing, required

technology: Both impact nearly every aspect of our lives and businesses, and both have made possible the progress achieved by other businesses. Essentially, any technology can be focused on helping to address either risk mitigation or risk transfer requirements. And innovation follows the money: More than $1trn has been invested in insurtech in the last four years, according to Willis Towers Watson.

Much of this new technology is part of the Internet of Things, which includes devices creating SMART [Self-Monitoring, Analysis and Reporting Technology] homes, vehicles and buildings. These devices not only provide rich new sources of data for underwriting and pricing risks, but they also offer opportunities for insurers and agencies to leverage enhanced engineering and loss control services to create SMART risk management services. What makes these devices SMART is artificial intelligence and machine learning, which can also remind agents of customers’ preferences and offer advice on cross-selling scenarios and gaps in coverage.

“It’s more accurate to call this the insurtech evolution, since most of the investment and innovation is benefiting incumbents, and they have been quick to seize these opportunities” radical adjustment of our technological vision.

When this renewed inclination to accept technological change met the influx of private equity capital fleeing the overinvested fintech space, their love-child – the insurtech revolution – was born. It’s more accurate to call this the insurtech evolution, since most of the investment and innovation is benefiting incumbents, and they have been quick to seize these opportunities. If insurers and agents lack sufficient motivation in this regard, there are significant disruptors nipping at their heels, and they get more than their fair share of press.

It’s not really surprising that so many diverse technology platforms have found a willing audience in the insurance sector.

Insurance shares a common characteristic with

A whole new category of global companies has arisen to mediate interactions between the insurance world and insurtech startups.

Startupbootcamp, the company that operates the Hartford InsurTech Hub accelerator, is one of many such companies. It presently manages 28 accelerators in 19 countries that have supported the growth of 592 startup ventures with funding of more than US$375m. The future of our insurance technology landscape is evolving as we speak. Vive la révolution!

Frank Sentner has been creating insurance technology solutions for 42 years. He recently helped the State of Connecticut, City of Hartford, UConn, Travelers and others create Connecticut’s first insurtech accelerator.

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SPECIAL REPORT

BROKERS ON INSURERS

BROKERS ON INSURERS 2019 Brokers reveal which major insurers are consistently providing top-notch service to their clients

THE RELATIONSHIP between brokers and insurers can be strained at the best of times.

Many brokers complain of an unbalanced power dynamic and an inability to have their concerns heard. Smaller independent brokerages, in particular, often feel frustrated that their voice simply isn’t loud enough to gain traction with the major players.

Insurance Business’ annual Brokers on Insurers survey aims to alleviate that imbalance to some degree, providing everyone on the front line – regardless of scale or size – with a platform to share their opinions of

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and experiences with the incumbents. Not only does this give brokers the ability to rate and rank Australia’s major insurers, but it also holds disappointing carriers accountable and puts a spotlight on those that have delivered exceptional service on a consistent basis.

Once again this year, brokers didn’t hesitate to offer honest feedback: reviews ranged from the positively glowing through to the truly seething. “When underwriting guidelines tightened, one insurer in particular went to extraordinary lengths to accommodate our client’s privacy concerns,” said one broker,

describing their best experience with an insurer over the past 12 months.

On the flip side, several brokers called out subpar standards and questionable conduct.

“Trying to access some insurers is like accessing a secret society,” quipped one broker, while many others bemoaned slow turnaround times, unexplained rate increases and a reluctance to pay legitimate claims.

Which insurers have managed to impress, which have showed significant improvement and which have slipped in the rankings from last year? Read on to find out.

BROKERS ON INSURERS 2018

METHODOLOGY Brokers from across the country were invited to rate the performance of a selection of insurers currently operating in Australia. In order to keep the results relevant and timely, respondents were asked to rank only those insurers they had dealt with in the last 12 months.

Eleven carriers were included in the survey – Allianz, AXA XL, Berkley, Berkshire Hathaway, CGU, Chubb, Hollard, QBE, Vero and Zurich – and were rated by brokers on a scale of 1 (very poor) to 5 (very good) across the following categories: • • • • • • • • • • •

WHAT’S MOST IMPORTANT TO BROKERS? The world of insurance might change rapidly, but brokers’ priorities don’t. When asked which factors are most important to them in their dealings with insurers, brokers ranked all 10 areas in exactly the same order as they did last year.

Turnaround time – claims

4.63

Overall service level

4.46

BDM support Brand recognition Commission structure Online platforms Overall service level Premium stability Product innovation Product range Training and development Turnaround time (claims) Turnaround time (new business)

An average score was then generated for each insurer in each category, and an overall average was calculated based on each carrier’s performance across all 11 categories.

Respondents also shared personal experiences – both good and bad – and offered insight into whether insurer performance had improved across each category or taken a turn for the worse over the past 12 months.

4.71

Turnaround time – new business

4.26

Premium stability Online platforms

4.10

BDM support

3.98 3.65

Product range

3.62

Broker training and development

3.59

Product innovation

3.50

Commission structure Brand recognition

3.41 5 Most important

4

3

2

1 Least important

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It’s no surprise that turnaround time for claims remained the number-one priority for brokers – the vast majority ranked it as extremely important. However, while brokers consistently point to claims turnaround as most crucial performance indicator, opinions are firmly split when it comes to insurer performance in this category.

Overall, slightly more brokers felt turnaround times for claims had worsened over the past 12 months: 59% said they had observed a deterioration in the process. “This is an area of great concern where insurers have not got enough claims staff,” said one broker. “They also don’t empower their claims staff to make reasoned judgements, which causes extra cost to them and creates poor timeframes.”

Other respondents complained that simple

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claims are increasingly being brought under the microscope without reason and suggested that some insurers are avoiding paying legitimate claims.

It wasn’t all bad news in the category – 41% of respondents said they had observed an improvement in claims turnaround times. “Everyone seems to be working hard to fix this,” said one broker, while others said natural catastrophes had encouraged insurers to invest more heavily in this area.BROKERS “It appears BROKERS ON ONINSURERS INSURERS insurers have recognised the importance of 2018 2018 the claims process,” another broker said.

Chubb claimed the gold medal once again this year with an overall score of 3.43 out of 5. CGU climbed from the third-place position it earned in 2018 to secure a silver medal this year, while Berkley took the bronze.

BROKERS ON INSURERS 2019

BROKERS BROKERS ON ONINSURERS INSURERS 2019 2019

Chubb CGU

3.39 Vero

4 3.21

3.43

BROKERS ON INSURERS 2018

Berkley

3.33 Allianz

5 3.20

Industry average: 3.07

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QBE CGU

3.21 Chubb

4 3.17

3.24

BROKERS ON INSURERS 2018

5

Allianz

3.18 Berkshire Hathaway

3.14

Industry average: 2.92

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The overall service level provided by carriers remained high on the agenda for brokers this year, who ranked it as the second most important factor when dealing with insurers.

BROKERS ON INSURERS 2019For those at the top of the leaderboard, results were somewhat promising – all five earned a score above ‘satisfactory’ on the five-point scale.

“Insurers are now providing more information into the reasons behind declines and are working with brokers to find solutions,” wrote one broker, while another noted that “despite the hard conditions, or maybe because of them, more work is being undertaken, particularly on the underwriting side, to find solutions for clients’ circumstances”.

There was significant movement among

the top five insurers in this category: QBE soared from fifth place in 2018 to secure the gold medal this year. CGU slipped slightly from last year’s gold but still picked up the silver medal, while Allianz gained one position on last year to take home the bronze.

But although the top five insurers performed well, the industry average in overall service slipped below ‘satisfactory’ to a score of 2.92 out of 5. Brokers expressed general disappointment in this category; 67% felt that insurer performance had worsened over the past 12 months.

“It’s like the insurers just don’t care anymore,” said one respondent. “As a broker, we experience poor response times, surly and unhelpful underwriters, and many inaccuracies in the terms presented.”

BROKERS ON INSURERS 2018

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The third most important area for brokers when dealing with insurers is the turnaround time for new business – and it seems insurers are performing reasonably well here, judging by the industry average score of 3.18 out of 5.

“In general, it’s been pretty good,” one broker said. “I feel like some insurers really are hungry for new business, despite premiums still being on the high side.”

However, while the industry performed slightly above average as a whole, brokers made it clear that there’s still significant room for improvement. “There is a severe lack of staff in the underwriting sections of insurers, and it shows,” one respondent said.

“As a broker, you have to constantly follow up with the underwriters; otherwise, it just doesn’t get done in a timely manner.”

BROKER FEEDBACK

“There is a severe lack of staff in the underwriting sections of insurers, and it shows. As a broker, you have to constantly follow up with the underwriters” BROKERS BROKERS ON ONINSURERS INSURERS 2018 2018

BROKERS ON INSURERS 2019

BROKERS BROKERS ON ONINSURERS INSURERS 2019 2019

AIG Berkshire Hathaway

3.38

3.34 Chubb

4 3.29

BROKERS ON INSURERS 2018

Berkley

3.33 CGU

5 3.26

Industry average: 3.18

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Chubb Berkley

3.24 4

3.32

BROKERS ON INSURERS 2018

Berkshire Hathaway

3.09

AIG

3.20 Allianz

5 3.06

Industry average: 3.02

This year’s results in this category were somewhat conflicting: 90% of brokers said premium stability had worsened over the past 12 months, yet the industry average score was BROKERS ON INSURERS still a notch above ‘satisfactory’.

2019 One broker reported increases of between 5% and 40% on base premiums for similar lines, adding that “some clients haven’t even had a claim, and they are getting large increases”. Another had discovered a work­ around: “Insurers seem to be increasing their rates on the policies they currently hold, but you are able to quote it as new business for a lesser amount.”

Many brokers conceded that the hardening market will drive premiums up, but it seems the majority are dubious about whether the fluctuations are really fair.

BROKER FEEDBACK

“Insurers seem to be increasing their rates on the policies they currently hold, but you are able to quote it as new business for a lesser amount”

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CGU Vero

3.45

3.47

Zurich

4 3.42

BROKERS ON INSURERS 2018

AIG

3.44 QBE

5 3.41

Industry average: 2.86

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However, while online platforms are important, brokers warned that subpar systems can make the process harder than it has to be.

“The majority of insurers have lost focus of the client, and all services are being directed to IT platforms, so if a risk does not fit the box, it takes a lot of unnecessary effort to have a generally basic risk placed,” one broker said.

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This year’s rankings for BDM support saw significant movement from QBE, which climbed two places to claim the gold medal.

Meanwhile, last year’s winner, Vero, fell off the podium altogether, sliding to fourth place.

While the top three insurers were able to secure rankings above the ‘satisfactory’ level, it seems BDM support is an area that could use some additional attention: 71% of brokers said performance had worsened in this area over the last 12 months. In addition, the industry average score of 2.39 out of 5 was the lowest of all 11 categories.

“It seems like BDM support is lacking for most insurers,” one broker said. “BDMs seem to be just a salesperson now with no actual authority to discount or assist with prickly policies.”

“If a risk does not fit the box, it takes a lot of unnecessary effort to have [it] placed”

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Brokers were particularly impressed with the top performers’ online platforms. The five best insurers each earned a score somewhere between ‘satisfactory’ and ‘good’, and BROKERS ON INSURERS 2019there was very little difference between their scores – gold medallist CGU triumphed with just 0.06 more points than fifth-place insurer QBE. Yet the industry average score of 2.86 (one of the lowest in the entire survey) was disappointing in a category that brokers ranked fifth on their priority list.

“Insurers have to have an online platform that operates well,” said one broker when asked how an insurer could win more of their business. Another noted that insurers need to “offer a point of difference that is easily demonstrated with an equally easy-to-use online platform to transact and place business.”

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“BDMs seem to be just a salesperson now with no actual authority” BROKERS BROKERS Concerns about BDM capability were a ON ONINSURERS INSURERS 2018 2018 common thread throughout the responses; brokers called on insurers to give BDMs more authority and reduce their workload.

“Insurers need to realise that a BDM without underwriting authority is about as handy as a car without a steering wheel,” one broker said.

“Without it, the BDM just acts like a mailbox.”

BROKERS ON INSURERS 2019

BROKERS BROKERS ON ONINSURERS INSURERS 2019 2019

QBE Allianz

3.08 Vero

4 2.87

3.13

BROKERS ON INSURERS 2018

CGU

3.03 Chubb

5 2.78

Industry average: 2.39

BROKERS ON INSURERS 2018

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BROKER FEEDBACK

“New products ... that keep us competitive with other brokers and direct insurers have been valuable” BROKERS BROKERS ON ONINSURERS INSURERS 2018 2018

place to second, boosting its score from 3.60 in 2018 to 3.65 this year. CGU, however, dropped to third place after coming in first two years in a row.

BROKERS ON INSURERS 2019

BROKERS BROKERS ON ONINSURERS INSURERS 2019 2019

QBE Allianz

3.65 Vero

3.68

4 3.46

BROKERS ON INSURERS 2018

CGU

3.61 Chubb

5 3.40

Industry average: 3.06

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It seems brokers are more than satisfied with the range of products provided by their insurers. “I have found that new products being introduced that keep us competitive with other brokers and direct insurers have been valuable,” one respondent noted.

In fact, only two of the 11 carriers failed to earn a rating of ‘satisfactory’ or above in this category. Overall, the industry average was 3.06 out of 5, making this the fourth best category for insurers in this year’s survey.

QBE was among the insurers that showed significant improvement, climbing to the top spot after coming in fourth in 2018.

Allianz, too, moved up a spot from third

FF EERROO TTHHEEYYE E UURR

R AR A

PRODUCT RANGE

INS

BROKERS ON INSURERS

R AR A

BROKERS BROKERS ON ONINSURERS INSURERS 2019 2019

Allianz Vero

2.96

2.98

BROKERS ON INSURERS 2018

CGU

2.91

S

QBE

4 2.83

Chubb

5 2.77

Industry average: 2.41

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When it comes to training and development, there’s significant room for improvement across the entire industry, as no insurer was able to earn a ‘satisfactory’ score in the BROKERS ON INSURERS 2019category. And the industry average score was a disappointing 2.41 out of 5 – the second lowest out of all 11 categories.

Those at the top of the leaderboard did come close to a ‘satisfactory’ score, and their performance was at least consistent – all three medal winners maintained the same places as last year. They were each able to improve their performance, too – CGU’s score increased from 2.84 to 2.91, Vero went from 2.90 to 2.96, and Allianz climbed from 2.92 to 2.98.

The lacklustre performance was a disappointment to brokers, who are crying out for training and development opportunities

BROKER FEEDBACK

“When we ask for training on your product, please help” – when asked what insurers could do to win more of their business in 2019, several brokers pointed to education as a key differentiator.

“In the past, just having a BD rock up to your premises has been unwelcomed,” one broker said. “However, offering value, such as training and product knowledge that attract CPD and CIP points, would win more business.” Another issued a concise plea: “When we ask for training on your product, please help.”

BROKERS ON INSURERS 2018

IINS NS

3.65 QBE

3.72

4 3.52

BROKERS ON INSURERS 2018

Allianz

3.53 Chubb

5 3.51

Industry average: 3.24

Chubb CGU

3.14

3.23

BROKERS ON INSURERS 2018

AIG

4 2.99

AIG

3.03 Berkshire Hathaway

5

2.97

Industry average: 2.88

F ER O THE YE UR

INS

BRAND RECOGNITION FF EERROO TTHHEEYYE E UURR

IINS NS

INS

CGU

BROKERS ON INSURERS 2019

BROKERS BROKERS ON ONINSURERS INSURERS 2019 2019

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AIG

Industry-wide, brokers were largely unimpressed with insurers’ product innovation – only three insurers (Chubb, CGU and Berkley) were able to secure a score above ‘satisfactory’. However, while the results might seem disappointing, they’re actually an improvement on last year, when just two insures managed to score above ‘satisfactory’ in this category.

BROKERS BROKERS This year, Chubb not only retained its ON ONINSURERS INSURERS 2018 2018 score gold medal, but also lifted its overall from 3.21 to 3.23. CGU, too, managed to climb one position to claim silver this year, boosting its score from 2.99 to 3.14. Berkley, which was absent from last year’s survey, claimed the number-three spot.

R AR A

BROKERS BROKERS ON ONINSURERS INSURERS 2019 2019

R AR A

R AR A

ERS RS RERS ERS 8

AR

FTTHHEE YYE E

Commissions have been a hot topic of late, thanks to the increased scrutiny around remuneration within the wider financial services sector – however, it seems brokers are more focused on other areas, as this category was next to last on their list of priorities when choosing an insurer.

While it’s not as important to brokers, insurers are apparently doing something right when it comes to commissions. All 11 insurers included in this year’s survey were ranked somewhere between ‘satisfactory’ and ‘good’ – one of only two categories to see such consistently positive feedback. Further, at 3.25 out of 5, the industry average score in this category was the highest of all categories.

There was no movement among the top four insurers this year: AIG, CGU, Allianz and QBE all held onto their R2018 OF THE spots. However, YE RE Chubb did manage toU claim fifth place this year, knocking Zurich out of the rankings.

F ER O THE YE UR

AR

INS

COMMISSION PRODUCT INNOVATION STRUCTURE FF EERROO TTHHEEYYE E UURR

While brokers named brand recognition as the least important factor when dealing with insurers, they were nonetheless impressed with the top performers this year. In fact, brand recognition was the only category in BROKERS ON INSURERS 2019which all three medal winners scored somewhere between ‘good’ and ‘very good’.

Allianz, CGU and QBE all returned to the podium this year, but there was some movement at the very top, as Allianz reclaimed BROKERS BROKERS the gold medal that it lost to CGU in 2018.

ON ONINSURERS INSURERS 2018 2018 Allianz’s impressive score of 4.21 out of 5 was likely helped in part by the multiple accolades it has picked up recently, including Large General Insurer of the Year from ANZIIF, General Insurance Company of the Year from RFi Group, and Employer of Choice for Gender Equality from the Workplace Gender Equality Agency.

BROKERS ON INSURERS 2019

BROKERS BROKERS ON ONINSURERS INSURERS 2019 2019

Allianz CGU

4.11 Vero

4.21

4 3.63

BROKERS ON INSURERS 2018

QBE

4.06 Chubb

5 3.36

Industry average: 2.98

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SPECIAL REPORT

BROKERS ON INSURERS BROKERS ON INSURERS 2018

INSURER OF THE YEAR

INS

INS

www.insurancebusinessonline.com.au

INS

had done for their business in the past 12 policy,” one broker said. “They went above months. Another broker noted that “QBE and beyond to help me get this done within held cover on an existing business where anO F THwhich R hour, E Y really alleviated the stress on E nobody else wanted to write cover”. the family.

It was E a small gesture but meant UR Vero and Chubb took the last two spots the world to the family.” in the top five with scores of 3.19 and 3.16, Chubb, too, earned high praised for respectively. “My [Vero] BDM assisted its claims service – one broker called the with arranging an extension of cover for an company’s offering “superior”, while another insured’s funeral under their home insurance agreed that it’s “better than the rest”.

AR

AR

28

AR

After claiming a total of nine medals – one gold, five silver and three bronze – CGU has been crowned Insurer of the Year by Australian brokers once again. Incredibly, it’s a feat the insurer has managed to achieve four times in the past five years. Not only did OF TEHREOF THE ER earn CGU impressive Y scores YE from respondR Uents, butURa numberE of brokers took the time to share the positive experiences they’d had with the insurer, which helped to set it above its competitors.

“CGU recently settled a fire claim very promptly where an insured had lost vital farming equipment that was required daily to feed cattle through this drought,” said one broker, while another noted that “CGU was the first to pay a Townsville flood claim plus additional benefits”. That claim was settled in full in just over two weeks, the broker added.

Coming in second was Allianz with six medals – two gold, two silver and two bronze. The insurer put in an impressive performance this year, losing out to CGU by just 0.02 points. Brokers were quick to praise Allianz’s achievements, competitive premiums and can-do attitude.

“Allianz’s fleet underwriter took a very common-sense approach to a very difficult risk we had to find a market for,” said one broker, while another praised an Allianz BDM who “went out of his way to help write a new business for a property owner of a pub/hotel risk. Highly recommended.”

QBE rounded out the top three after picking up three gold medals – the most of BROKERS BROKERS insurer in the survey – as well as one ONany INSURERS ON INSURERS bronze medal. “QBE has fast turnaround 2018 2018 times on underwriting queries and a willingness to actually underwrite risk, rather than just following guidelines,” one broker said when asked about the best thing an insurer

BRO ON IN 2

BROKERS BROKERS ON INSURERS ON INSURERS 2019 2019 CGU Allianz

3.29 Vero

4 3.19

3.31

QBE

BROKERS ON INSURERS 2018

3.24 Chubb

5 3.16

BROKERS ON INSURERS 2018

Insurance Business is the leading business magazine for insurance brokers and advice professionals.

insurancebusinessonline.com.au Issue 7.06

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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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FEATURES

BROKERAGE INSIGHT

A family affair Since 2011, Webber Insurance Services has been working to meet SME insurance needs in Adelaide and around Australia. IB sat down with Chris and Daniel Webber to find out more

IN 2011, husband-and-wife team Chris and Ahsha Webber set out on a mission to provide quality insurance advice and solutions. They set up shop in Kent Town, Adelaide, opening Webber Insurance Services – an organisation that works for the client and takes great pride in offering smart insurance and educated risk management solutions.

“We felt that the smaller end of town didn’t have access to good-quality service,” Chris says, “as most companies focus on the larger businesses that bring in the bigger premiums.”

The next 12 months would confirm the demand for the company’s services. Chris’s brother, Daniel, came on board in 2013, initially as an employee, but he eventually became a shareholder and director.

Both brothers had an extensive background in insurance prior to working together. Chris had held a variety of positions, including commercial claims, underwriting, insurer BDM, corporate broking and SME broking.

Daniel followed a similar path, though with his own unique twists and turns.

“I’ve been in the industry around 13 years now – after high school, I worked in a call centre selling personal insurance products,” Daniel says. “I then got a broker assistant job, where I had my first experience with commercial insurance. I worked at a few different places

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afterwards, specialising in small business.”

Given that the two brothers are owners of an SME themselves, they’re well attuned to the challenges their clients face when it comes to insurance. Though the company caters for a wide variety of clients, the bulk of its business has come through focusing on specialised industries, particularly construction and its related sectors.

“A lot of our customers are very time-poor; they’re confused about which insurance is best for them, and they don’t have the time to sift through everything,” Chris says. “But having the right cover is crucial, so we help businesses navigate which insurance is best for their needs, while also saving them time.”

The brothers have also put a keen emphasis on staying current with industry trends.

Webber Insurance’s staff all undergo regular training to keep up-to-date with the latest developments, ensuring they’re well placed to regularly review client circumstances and provide advice accordingly.

“We spend a lot of time upskilling our staff to make sure they’re providing quick, accurate information for every client,” Daniel says.

With this emphasis on staying up-to-date, both brothers are also staunch advocates of the positive role that tech can play within insurance. “Technology has bred an expectation for faster transactions among clients,” Chris says, “so we need to have the right tools in place to meet these expectations and provide the service that clients require.”

Part of this eager adoption of tech has been enabled through the firm’s close relationship

AN EYE TO THE FUTURE Risk management is an inherent part of the insurance business, and Chris Webber sees keeping an eye on current trends as an essential aspect of running Webber Insurance Services. He points to numerous potential issues, such as instability around Brexit, which may affect Australia’s reliance on Lloyd’s, as well as climate change, which he says is “decimating” reinsurers.

Locally, Chris is primarily concerned about cyber risk – “It’s moving faster than policymakers can keep up” – and issues within the construction industry. “Issues like faulty materials can be longer-term problems,” he says. “As we saw with situations like Grenfell Tower, the problem may not be evident till years later. That’s going to keep insurers guessing.”

“A lot of our customers are very time-poor … so we help businesses navigate which insurance is best for their needs, while also saving them time”

FAST FACTS: WEBBER INSURANCE SERVICES Areas of specialty Small businesses Contractors

Chris Webber (left) and Daniel Webber (right)

with Steadfast. Since obtaining its own AFSL in 2016, Webber has been operating as part of the Steadfast Group’s broker network, which is the largest in Australia.

“Steadfast has been at the forefront with insurer systems and broking platforms,” Chris says. “We’ve embraced them accordingly and used them to grow our business.”

This commitment to ongoing education isn’t just an internal initiative, either. Looking to the next 12 months and beyond, Webber Insurance Services hopes to expand its client

education programs. Video production is one of the means being considered for this purpose, Daniel says, alongside social media, blogging and in-person meetings.

“Making sure that clients have access to the right information around exposure and risk management so that they can make informed decisions is a key part of our future planning,” Daniel says. “We pride ourselves on offering smart insurance and educated risk management solutions, so it’s a natural extension of what we do.”

Consultants

Year founded: 2011 Headquarters: Kent Town, Adelaide Leadership: Chris Webber, managing director; Daniel Webber, director; Ahsha Webber, financial controller; Elizabeth Webber, administration manager

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31

FEATURES

SECTOR FOCUS: AUTHORISED REPRESENTATIVES

Forging new network connections Shaun Standfield of Insurance Advisernet explains how becoming an authorised representative can help brokers deliver better service for their clients

GENERAL INSURANCE advisers have a crucial but oft-overlooked role to play in the insurance broking process. By allying themselves with a larger provider, individual brokers can access a wider network of products, training, compliance standards and business opportunities than by simply flying solo. But perhaps most important, they can leverage these tools and relationships to provide clients with a level of service they might not have otherwise been able to deliver.

As managing director of Insurance

Advisernet [IA] and an experienced insurance executive, Shaun Standfield is keenly aware of the important roles advisers can play for clients – and the benefits for advisers themselves. During his time leading change projects across programs in both Australia and Asia, he’s seen the benefits of building these relationships firsthand.

“Given the complexity and changing demands of insurers, the role of the adviser has become increasingly important,” Standfield says. “Clients want to deal with

5 STAR BEST PRACTICE Insurance Advisernet is committed to providing its clients with advice on insurance best practice in key risk areas. IA’s 5 Star system provides clients with a snapshot of how they’re performing against industry best practice in risk management, compliance and mitigation. The Insurance Advisernet 5 Star Survey & Report provides clients with a rating on their existing procedures, in addition to providing guidelines on how to upgrade to best practice. 5 Star benchmarking is currently available for the following types of insurance risk: Property

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Cyber

WHS

someone they know can help them with their particular general insurance needs, whatever they may be.”

Given the increasing pressure on advisers to go above and beyond, it makes sense to have the resources of a wider network.

Younger advisers can benefit from the wisdom of longer-tenured members, while senior advisers can engage with new ideas that are coming up through the ranks. The numbers suggest that there are tangible business benefits to joining a network as an adviser, too.

During 2018, IA’s GWP grew 17% to close on $500m in Australia. More than 1,000 clients a month are joining across the network, which serves as an indication of the growing importance of brokers and advisers.

It’s also an important signifier of trust.

With 2018 heavily overshadowed by the royal commission, trust is one of the most important commodities advisers have available to them.

“Trust sits at the heart of any successful relationship,” Standfield says. “And joining an AR network can help forge better trust between insurer, AR group and client. It’s a trust we never take lightly or for granted.”

The adviser’s role Within an AR network, the role of the adviser remains much the same as it does for brokers outside. The fundamental skills advisers rely on remain crucial, though they can now draw on the resources of a wider network to supplement their own knowledge.

“Being there for your clients at the time of a claim is probably the most important role you can play,” Standfield says. “As with anywhere else, the claims process can be long and complex, but an AR network can provide you with the relevant tools to make the process as simple and efficient as possible, both for you and the client.”

Standfield also stresses that brokers looking to become advisers must focus on providing professional advice. In IA’s

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case, Standfield notes that it is not simply a license for hire; it is the outgrowth of a strong internal culture. Despite – or perhaps because of – being an amalgamation of numerous smaller businesses, IA operates as a close-knit team, with a distinct culture that endears itself to clients.

“Advisers can capitalise on our branding to create leads and opportunities for their business,” Standfield says. “They also own their portfolio, so in turn, they’re building an asset for themselves.”

While there are benefits for ARs across the country, Standfield is also quick to point out that becoming an AR can be particularly advantageous for brokers looking to establish themselves in rural or remote locations

“Given the complexity and changing demands of insurers, the role of the adviser has become increasingly important” Shaun Standfield, Insurance Advisernet around Australia. There are still financial needs to be met outside of the major cities, and becoming an adviser can accommodate those looking for a particular lifestyle outside the everyday rush of the city.

“Populations in the area may be too small to sustain an entire office,” Standfield explains, “but the presence of an adviser still

enables the community to be serviced by the organisation’s products.”

The making of an AR Those thinking about becoming an adviser should start by asking other industry professionals about the network they’re thinking of joining. However, Standfield advises

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INSURANCE ADVISERNET BY THE NUMBERS

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$500m+ Insurance Advisernet’s gross written premiums

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approaching the decision with caution, as it is a significant commitment.

“Potential advisers need a willingness to be part of a broader team where everyone works to assist each other be successful,” he says. “No individual is bigger than the organisation, and everyone has a role to play in protecting the larger brand.”

In practical terms, Insurance Advisernet provides its advisers with bespoke software to ensure adherence to strict compliance protocols, which spans apps, training, risk reports and other tools. This model allows advisers to outsource their non-income-producing activities, comply with legislative requirements, reduce their operating costs, and ultimately spend more time providing quality advice,

enabler,” he says. “We still need to be able to bring that human touch to the way we interact with new and existing clients.”

The importance of community Many adviser networks also place significant emphasis on giving back to the communities they are part of – something important no matter where an adviser is based, but particularly crucial in smaller towns and regional areas. Advisers can build trust in the industry by establishing themselves as valuable, contributing members of the community.

Depending on the network, this might take the form of charitable donations, volunteering time or raising wider awareness of the causes the company is

“Trust sits at the heart of any successful relationship. And joining an AR network can help forge better trust between insurer, AR group and client” Shaun Standfield, Insurance Advisernet nurturing new business opportunities and servicing their clients.

“We provide all systems, reporting, apps and portals to enable our advisers to concentrate on their customers’ needs,” Standfield says. “Insurance Advisernet manage social media posts, along with search engine optimisation programs, to ensure potential new customers can find their local IA adviser.”

IA also generates business intelligence data, which allows its advisers to manage their portfolios with the provision of timely data and workflow management items. Yet Standfield is quick to point out that the technology is intended to work as an aid, not an outright replacement; the human element provided by the adviser is still crucial.

“Technology isn’t a panacea; it’s an

involved with. Insurance Advisernet’s IA Foundation supports a broad range of causes, including TopBlokes, Orange Sky, Lifeline, SAHMRI, Pause 4 Parkinson’s, Act For Kids, Leukodystrophy Australia, Love Your Sister, Tour De Cure and many more. The IA Foundation is operated as a registered foundation and has independent board members to ensure its charter as a foundation is adhered to.

It’s a key factor Standfield points to when speaking about the benefits for brokers and clients alike that emerge from becoming an adviser. “I am constantly impressed by the generosity our advisers display,” he says, “not only to new advisers to ensure they are successful, but across their communities to ensure others are successful.”

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More than 500 brokers, authorised representatives, underwriters and insurers came together to celebrate the industry’s finest at the second annual Insurance Business Australia Awards Last year’s Insurance Business Australia Awards were a tough act to follow. Yet the nominees, finalists and winners at this year’s gala ceremony raised the bar beyond expectations.

In an era of ongoing disruption and often challenging conditions, the sheer breadth of industry talent on display at this year’s awards – whether from presentday insurance superstars or the industry leaders of the future – shows that this thriving sector is in good hands.

On the following pages, Insurance Business reveals the award winners who represent the very best insurance has to offer. Congratulations to all of them – and we look forward to raising the bar even higher next year.

INSURANCE BUSINESS AUSTRALIA AWARDS 2019

BY THE NUMBERS

500+ guests

244

nominations

30

categories

171

finalists

30

trophies

9

months to plan

BEST COMMUNITY ENGAGEMENT PROGRAM – INSURER

iCARE

“We’re really excited,” said Geoff Henderson of iCare, which scooped this award due to its excellent community work within New South Wales. “This is our first nomination at these awards, and for such an important category as community engagement, we’re absolutely thrilled. We have a process of working with other organisations that we can help fund to make sure that our roads are safer, our workplaces are safer and the people of New South Wales are safer.”

38

BEST COMMUNITY ENGAGEMENT PROGRAM – BROKER

INSURANCE ADVISERNET FOUNDATION­

“Winning is pretty awesome,” said Ian Carr of Insurance Advisernet, whose foundation caught the eye of the judges. “We started that foundation … to give back to the community in a lot of regional places. And it’s really been embraced by our people, and we’re very proud of it.”

BEST SERVICE PROVIDER

THE LMI GROUP

“I think winning is an acknowledgement of all the work our boss, Allan Manning, has put into years of insurance,” said Revel Weightmann of LMI Group. “It’s great to get a bit of recognition for him, and I’m sure he’ll be very excited. Allan has been involved in the industry for many years now, and he’s so passionate about it.”

FINALISTS

FINALISTS

FINALISTS

• Allianz Australia • Chubb • IAG • NTI • Vero • Zurich

• Action Insurance Brokers • Allinsure • CPR Insurance Services • McLardy McShane • Zenith Insurance Services

• BizCover • Charles Taylor Adjusting • ClaimLogik • Gallagher Bassett • JB Hi-Fi Solutions for Insurance • MCS Group • Sedgwick

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BEST DIGITAL STRATEGY – UNDERWRITING AGENCY

BLUE ZEBRA INSURANCE

BEST DIGITAL STRATEGY – BROKERAGE

BEST DIGITAL STRATEGY – GENERAL INSURER

SRG GROUP

AIG

“We enjoy supporting the broker market, we enjoy having the relationships we have with our distribution channel, and the people enjoy working together,” said Colin Fagan of Blue Zebra Insurance, reflecting on the secret to his agency’s success. “There’s a lot of very intelligent, smart people in our team, and we enjoy coming together and using diversity.”

“Our strategy is really about managing the client experience from start to finish and making sure that we meet their expectations all the way through,” said Luke Warrens of SRG Group.

“We utilise technology wherever we can to make that process streamlined as possible.”

“Winning is overwhelming,” said an AIG spokesperson. “A lot of hard work has gone in over a lot of years to be able to deliver the value that we have. So it’s very much appreciated.

The venue is terrific. I think Key Media and its sponsorship is terrific for the insurance industry.”

FINALISTS

FINALISTS

FINALISTS

• Blend Insurance Solutions • Brooklyn Underwriting • DUAL Australia • One Underwriting • Tego Insurance

• Action Insurance Brokers • AUZi • Dixon Insurance Services • IMC Insurance Brokers • Insure 247 • Trade Risk

• CGU Insurance • Mapfre Insurance Services • NTI • QBE Insurance • Zurich

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39

UNDERWRITING AGENCY CLAIMS TEAM OF THE YEAR

DUAL AUSTRALIA

40

GENERAL INSURER CLAIMS TEAM OF THE YEAR

ZURICH

BEST CUSTOMER SERVICE FROM AN INDIVIDUAL OFFICE

BAC INSURANCE BROKERS

“Claims are the number-one reason why we’re here,” said Mathew Korff from DUAL Australia. “And we’ve always been broker-focused. So what the brokers say about us is so important, and that’s why to be awarded this award from our clients is also important.”

“It’s always great to get together at industry events and celebrate all the successes from the insurance industry,” said Hilary Bates of Zurich Australia. “We’ve been really refocused on our customer journey, listening to our customer feedback and setting up a continuous improvement culture.

And I think that’s been our main piece of work that has set us up for our success for this award this year.”

“We weren’t expecting to win this,” said a surprised Jason Proudlock of BAC Insurance Brokers. “We had a lot of competition. We’ve got a disruptive industry at the moment, where people are changing the way they do things. And I think you’ve got to be little bit flexible. And that’s what we’ve done. We have looked at different avenues, and we have evolved with change.”

FINALISTS

FINALISTS

FINALISTS

• AHI • High Street Underwriting • ProRisk • Rural Affinity • St George Underwriting

• Allianz Australia • CGU Insurance • Chubb Insurance • QBE Insurance • Vero

• 20:20 Insurance Brokers • Allinsure • Bell Partners Insurance • Scott Winton Insurance Brokers • Simplex Insurance Solutions • Trade Risk

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THE UNDERWRITING AGENCIES COUNCIL AWARD FOR UNDERWRITING AGENCY BDM OF THE YEAR

NATHAN SOMMER, RYNO INSURANCE SERVICE “I couldn’t have done it without the team that I work with, who provide me the support that enables us to do what we do for all our brokers around Australia,” said Nathan Sommer of Ryno Insurance Service. “We have a corporate social responsibility at Ryno to get involved and keep our community safe. And that’s what drove me to actually go above and beyond – not just business, not personal; it’s actually giving back to the community.”

FINALISTS • Matt Almond

• Josh McCracken

• Jessica Corfield

• Amanda Mikeleit

• Nikki Dunnet

• Con Stoitsis

High Street Underwriting

Rural Affinity Rural Affinity

UAA

360 Commercial

Steadfast

PROUDLY SPONSORED BY

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41

THE AXA XL INSURANCE AWARD FOR YOUNG GUN OF THE YEAR – INTERNATIONAL

ZOE EVANS, GALLAGHER

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

JOSEPH CUZZOCREA, MAXTON INSURANCE BROKERS

TAELA BLOEMERS, REGIONAL INSURANCE BROKERS

“I was up against some tough competition, so it was awesome to win,” said Gallagher’s Zoe Evans.

“My growth over the past year certainly wasn’t easy. So I think just putting clients first certainly helps in gaining that growth.”

“I'm privileged to be nominated by my peers and very happy to be a part of tonight’s event,” said Joseph Cuzzocrea of Maxton Insurance Brokers. “The rewards that I get from my clients are placing specific products for their needs, accommodating them when they’re hard to place, servicing those clients and getting them results.”

“It’s been a great night,” said Taela Bloemers of Regional Insurance Brokers. “Really good atmosphere, good vibes, good entertainment.

Winning has definitely opened doors, and many more opportunities can come from that.”

FINALISTS

FINALISTS

• Jeremy Andison

• Jonathon Ham

• Jess Dametto

• Irish Peters

• Daniel Groves

• Sapphire Newton

• Natalie Maras

Gallagher Aon Aon

PROUDLY SPONSORED BY

Webber Insurance Services Topsail Insurance

Riverina Finance & Insurance Solutions

• Anthea Skiadas IMC Insurance Brokers

• Adam Sloan Insure 247

• Aimee Williams

Austbrokers Coast to Coast

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

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FINALISTS Intertrade Insurance Services

• Sarah Hando Rural Affinity

• Sam Johnston

Brookvale Insurance Brokers

• Nikita Willis SRG Group

BROKER OF THE YEAR – INDEPENDENT (1-19 STAFF)

BROKER OF THE YEAR – INDEPENDENT (20+ STAFF)

BROKER OF THE YEAR – INTERNATIONAL

BONNI GORDON, GLOBAL RISKS

KIM GILBERT, ZENITH INSURANCE SERVICES

PETER CAMPBELL, GALLAGHER

“Winning feels unbelievable,” said Bonni Gordon of Global Risks, who attributes her stellar work for her clients to “attention to detail and just being there when they need you”.

“It’s a fantastic honour to be able to represent our profession,” said Kim Gilbert of Zenith Insurance Services.

“Insurance is a fantastic career. I honestly believe that it is probably one of the most underrated careers in financial services."

“It’s my first nomination, and I’m really, really happy to win,” said Peter Campbell of Gallagher. “Relationships really matter in this line of work. And I think the young people in my employment, in my company, have helped inspire me to keep going.”

FINALISTS

FINALISTS

FINALISTS

• Max Cuzzocrea

• Peter Beard

• Samuel Rogers

• Kate Fairley

• Prudence Chang

• Steve Sampedro

• James Skiadas

• Joe Khoury

Maxton Insurance Brokers

Simplex Insurance Solutions IMC Insurance Brokers

Honan Insurance Group National Credit Insurance

Marsh

Aon

Action 18

• Lisa Paradiso SRG Group

• David Powell Elliott Insurance Brokers

• Mike McShane McLardy McShane

• Avi Tatarka

Scott Winton Insurance Brokers

• David White Phoenix Brokers

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GENERAL INSURER BDM OF THE YEAR

BROKER OF THE YEAR – AUTHORISED REPRESENTATIVE

AUTHORISED REPRESENTATIVE NETWORK OF THE YEAR

JAMES LEE, ALLIANZ AUSTRALIA

LISA CARTER, CLEAR INSURANCE

MARSH ADVANTAGE INSURANCE

“It feels absolutely amazing and absolutely humbling to win this award,” said James Lee of Allianz Australia. “I've been with Allianz for four years, and in that short time span, they’ve recognised me, and I’ve moved from an internal account manager all the way up to a senior account manager.”

FINALISTS • Justin Boyes QBE Insurance

• Shane Butcher Vero

• Melissa Corrigan QBE Insurance

• Marilyn de Francesco Allianz Australia

• Adam McBryde Vero

FINALISTS • Matthew Bates Bell Partners Insurance

• Ken Dixon Dixon Insurance Services

• Bonni Gordon Global Risks

• Scott Osberg

• David Hodges

• Carla Taylor

• Stephen Sloan

• Thomas Williams

• Michael Stewart

CGU Insurance Vero

Allianz Australia

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“It’s really nice to win one for the ladies!” said Lisa Carter of Clear Insurance. “There’s so many great women in the insurance industry. I think it’d be wonderful if more women could join the industry or women who are in the industry already could step up and take on principal roles. It offers that great life-work balance that you can become a mum and have a career at the same time.”

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Corvus Insurance Advisers Insure 247 Stewart Insurance Group

“Winning is fantastic,” said Stuart Monroe, national manager of Marsh Advantage Insurance. “We’ve got really good people, and that’s what the whole company is about. It’s about professional standards and being best-in-class.”

FINALISTS • Community Broker Network • Insurance Advisernet Australia • PSC Connect

SPECIALIST BROKERAGE OF THE YEAR

CCM INSURANCE GROUP

BROKERAGE OF THE YEAR (1-5 STAFF)

CPR INSURANCE SERVICES

BROKERAGE OF THE YEAR (6-20 STAFF)

AUSTBROKERS COAST TO COAST

“It’s so good to get the recognition,” said Gary Sim of CCM Insurance Group. “I think success comes from being open to clients, communicating and just being there for them when they need us.”

“Winning has been great,” said Robert Cooper of CPR Insurance Services. “It’s been fantastic. We won this award in the first year, and I think that helped out a lot with our credibility and standing in the community. And so we felt we did even better than the previous year.”

“We have a total commitment to old-fashioned customer service,” said Dale Hansen, CEO of Austbrokers Coast to Coast, pinpointing the reason behind his company’s victory. “We listen to our customers and are able to tailor solutions that best suit their business. We don’t commoditise our customers or the products we offer.”

FINALISTS

FINALISTS

FINALISTS

• BAC Insurance Brokers • Bovill Risk & Insurance • Nepean Brokers & Associates • Risk Capital Advisors • The Builders Broker • Topsail Insurance

• • • • •

• Allinsure • City Rural Insurance Brokers • IMC Insurance Brokers • Insure 247 • Remingtons Insurance Brokers • Simplex Insurance Solutions • Watkins Taylor Stone

Aether Insurance & Risk Bell Partners Insurance Dixon Insurance Services Global Risks InterRe Insurance Brokers • MKS Insurance Services • Trade Risk

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INTERNATIONAL BROKERAGE OF THE YEAR

MARSH “Winning International Brokerage of the Year is just fantastic for Marsh,” said a spokesperson. “We’re grateful for our people. We’ve got quality people, which is fantastic.”

FINALISTS • Gallagher

THE QBE INSURANCE AWARD FOR BROKERAGE OF THE YEAR (20+ STAFF)

ADROIT INSURANCE & RISK “It’s a deserved reward,” said Fabian Pasquini of Androit Insurance & Risk.

“We are a great company, a great family of 147 people, and we have a beautiful team of people who work in their communities in nine areas and branches in Victoria and New South Wales.”

FINALISTS • • • • • PROUDLY SPONSORED BY

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CRM Brokers McLardy McShane National Credit Insurance Scott Winton Insurance Brokers SRG Group

AUSTRALIAN UNDERWRITING AGENCY OF THE YEAR

EMERGENCE INSURANCE

“To win is just incredible,” said Troy Filipcevic of Emergence Insurance.

“What we’ve proven tonight is that if you focus and you’re good at one thing, then you become a market leader. And that’s what we are.”

THE BLAKE OLIVER CONSULTING AWARD FOR AUSTRALIAN GENERAL INSURER OF THE YEAR

ALLIANZ AUSTRALIA

“I'm absolutely thrilled to have won this award and accept it on behalf of the company,” said David Krawitz of Allianz. “I think that it’s great we recognise the important role that insurance plays with business, consumers and in general, supporting the Australian economy.”

FINALISTS

FINALISTS

• Brooklyn Underwriting • DUAL Australia • High Street Underwriting • Mecon • Sportscover Australia • St George Underwriting

• CGU Insurance • Chubb Insurance • QBE Insurance • Vero • Zurich

PROUDLY SPONSORED BY

PROUDLY SPONSORED BY

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THE INSURANCE BUSINESS AWARD FOR AUSTRALIAN BROKER OF THE YEAR

ENRIQUE SICURELLA, CCM INSURANCE GROUP “This is a team award, really, in terms of the company,” said Enrique Sicurella of CCM Insurance Group, adding that the award demonstrates “a constant dedication and commitment towards the industry”.

FINALISTS • Anthony Carollo

• Steven Marsi

• John Cartwright

• Darren Pavic

• Henry Clark

• Angela Vella

Carollo Horton

Cartwright Insurance Brokers

Honan Insurance Group

The Builders Broker

Bovill Risk & Insurance Gallagher

• Christian Lingga CRM Brokers

PROUDLY SPONSORED BY

A U S T R A L I A

THE INSURANCE BUSINESS AWARD FOR AUSTRALIAN BROKERAGE OF THE YEAR

ADROIT INSURANCE & RISK “It’s a deserved reward,” said Fabian Pasquini of Androit Insurance & Risk.

“We are a great company, a great family of 147 people, and we have a beautiful team of people who work in their communities in nine areas and branches in Victoria and New South Wales.”

FINALISTS • • • • •

CRM Brokers McLardy McShane National Credit Insurance Scott Winton Insurance Brokers SRG Group

PROUDLY SPONSORED BY

A U S T R A L I A

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awards sponsors AXA XL Insurance provides property, casualty, professional and specialty products to industrial, commercial and professional firms; insurance companies; and other enterprises throughout the world.

Iselle Gonzalez, Senior Communications & Marketing Manager E: iselle.gonzalez@xlcatlin.com P: 02 8270 1719 W: xlcatlin.com

UAC is the peak representative body for Australian and New Zealand underwriting agencies. It provides professional development and educational events, expos to showcase members’ specialisations to brokers, marketing campaigns, and representation to government and industry. UAC has more than 100 agency members and almost 50 business service members.

Members’ annual GWP is approximately $3.5bn.

William Legge, General Manager E: williamlegge@uac.org.au P: 02 8284 8406 W: uac.org.au

Blake Oliver Consulting is an insurance specialist consulting firm run by insurance professionals, for the insurance sector. We have deep sector knowledge and have a team of dedicated consultants pre-eminent in their field. We are committed to providing intelligent people solutions to our clients and exceptional care to candidates.

QBE Australia has offices across all states and territories, providing a broad range of insurance products to personal, business, corporate and institutional customers. From home and contents, motor, and mining companies to wineries, we aim to meet our customers’ needs to deliver the highest level of service, from quote to claim.

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

Natalie Bolzon, Marketing Partner E: natalie.bolzon@qbe.com P: 02 9375 4862 W: qbe.com.au

BROUGHT TO YOU BY Key Media organises industry awards and professional development events in association with our leading magazine titles.

Sophie Knight E: sophie.knight@keymedia.com P: 02 8437 4700 W: keymedia.com

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FEATURES

TEAMWORK

How to strengthen relationships with your team If your relationships with team members are suffering, you might be approaching them the wrong way. John Eades outlines seven things managers can do to turn things around

NO ONE wants to go to work every day dreading the amount of time they’re going to spend with their boss. At the same time, I don’t know any sane leader who looks forward to having bad relationships with team members. So the question then becomes, why are so many relationships between team members and their leader a major part of the reason people are unhappy at work?

The answer: Most leaders have the equation wrong. The majority of leaders believe team members are responsible for the relationship with their leader. This belief puts the ownership of worthiness, trust, ability, respect and work ethic on the shoulders of others.

The correct equation is: Leaders are responsible for the relationship with each individual team member.

In this drastically different approach, leaders know they are ultimately the ones

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responsible for building relationships based on trust, respect, work ethic, forgiveness and accountability. These leaders model the behaviours they want to see, communicate well with their team and allow their team members to choose to meet or exceed the standards set. This doesn’t mean the relationship isn’t a two-way street, but it means the leader takes the ownership and responsibility in it.

Knowing that ownership and responsibility of work relationships starts with leaders, here are seven wise habits you can leverage to strengthen those relationships.

1

Remove your ego

Ryan Holiday, the author of Ego Is the Enemy, defines ego as “an unhealthy belief in our own importance … the need to be better than, more than, recognised for far past any reasonable utility”. If this is

you, your people won’t want to follow or work hard for you. It’s that simple.

When I had Cy Wakeman, the author of No Ego, on the Follow My Lead podcast, she said, “Ego puts a filter on the world that corrupts your relationship with reality.” If you can remove ego from the equation, you’ll remove barriers in your relationships with your team.

2

Focus on trust with each team member

When I ask in our Welder Leader workshop, “Who is responsible for the bond of mutual trust between leader and team members?”, the overwhelming answer is “team members”. And they’re wrong. Trust is built between leader and team member by the actions and behaviour of the leader, not the other way around. People will judge your trustworthiness by your character, expertise

and how well you share your expertise with each team member.

3

Be a good coach

4

Put your phone away when interacting

One of the most important habits any leader can improve is their ability to coach the individuals on their team. Author and executive coach Michael Bungay Stanier says any leader can be a better coach just by “staying curious a little bit longer and rushing to advice-giving a little bit slower”. Positivity impacts your relationship with your people if you can coach them to improve a skill gap.

No one likes to see someone else pick up their phone in the middle of a conversation. When this happens, it makes us feel much less important than whatever is happening on the phone. I can only write this because I am guilty as charged, and changing

Trust is built between leader and team member by the actions and behaviour of the leader, not the other way around this habit is an ongoing challenge.

5

Embrace the journey of each team member

It’s easy for leaders to get in the habit of assuming every professional on their team is in the same place in their life’s journey. Just because a 30-year-old and a 40-year-old might be doing the same job doesn’t mean they are in the same place on their journey. One could be single, while the other is married with kids. Those things absolutely matter. Get in the habit of putting your-

self in the shoes of where your people are on their life’s walk.

6

Ask for feedback about yourself

The number one competencydeficient area we have found in our Welder Leader assessment is asking for feedback from the team. This is so important because people want to feel like their opinion matters. The ability to be vulnerable in front of your team will instantly improve the relationship. One caveat: You must be humble when accepting

feedback, rather than becoming defensive, or the act of asking for feedback will put your relationship at a deficit.

7

Model what you want to see

If you only remember one thing, remember this: People watch every­ thing a leader does, whether the leader likes it or not. So the example you model is exactly the behaviour you will get from your team.

John Eades is the CEO of LearnLoft, a full-service organisational health company whose mission is to turn managers into leaders and create healthier places to work. He is a speaker, host of the Follow My Lead podcast, and author of F.M.L.: Standing Out & Being a Leader and the upcoming book The Welder Leader. For more, visit learnloft.com.

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FEATURES

MOTIVATION

Why you don’t need motivation to succeed Aytekin Tank offers three foolproof ways to get things done without relying on motivation

I’M NOT highly motivated. I don’t have amazing willpower or self-control. I don’t get up at 6 a.m. to read, meditate, drink a green smoothie and run a 10K. That’s because I don’t believe in motivation. Instead, I’ve built systems and habits that remove my internal drive from the equation. So whether or not I feel ‘motivated’, I can still be productive.

I realise that systems and habits are not a glamorous topic, but honestly, they work.

They’ve fuelled every step of my entrepreneurial journey over the last 12 years. If you create reliable systems and continue to improve these systems (instead of your willpower), you don’t even have to think about motivation.

Let’s break it down a little. First, what the

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heck is motivation, anyway? In the simplest terms, motivation is your desire to do something. It’s a sense of willingness that exists on a spectrum, from zero interest to a burning desire to take action. When your desire is strong, motivation feels effortless. But when you’re struggling, just about anything sounds better than starting the assignment, making a tough phone call or hitting the gym.

Procrastination takes over – until the agony becomes overwhelming.

As Steven Pressfield writes in The War of Art, “At some point, the pain of not doing it becomes greater than the pain of doing it.”

I love this quote because I suspect we’ve all felt this painful moment – when it’s harder to stay on the couch than to get up, put on your sneakers and go outside.

In his 2011 book Drive: The Surprising Truth About What Motivates Us, author Daniel Pink splits motivation into two different types: extrinsic and intrinsic.

Extrinsic motivation is external. It’s money or praise or trying not to look clumsy on the tennis court. Intrinsic motivation comes from within. It’s the desire to act, even when the only reward is the activity itself (or completing a task). Intrinsic motivation implies that you’re acting for authentic, honourable reasons. For example, you start a business to help people or solve a problem, not because you’re dazzled by visions of fame and fortune.

Motivation gets in the way, though, when we rely too heavily on it. No matter how much you love your business, there are probably moments when you don’t want to take action. Maybe it feels scary or impossible, or the task at hand is downright boring.

That’s when systems can do the heavy lifting. Here are a few strategies that have helped me to build sustainable systems so I don’t have to rely on motivation.

Choose your focus areas – and ignore the rest Focus and motivation might seem like two different topics, but they are closely intertwined. For example, last year I had three work priorities: hiring really great people, creating quality content and equipping our users to work more productively. These themes informed everything I did. If a project or an opportunity didn’t fit into one of these three buckets, I said no.

Distractions slipped away, and I could make real progress.

For example, I spend the first two hours of every workday writing out my thoughts.

It might be a problem I’m trying to solve or a new idea. I don’t book meetings during

Your feelings don’t have to match your actions — especially when you truly want to move forward this period, and I definitely don’t answer emails. But if I arrive at work feeling less than inspired, I give myself permission to do something else — as long as it fits within my three focus areas. Instead of writing and

problem-solving, I can read articles or books on these topics, meet with a product team or watch a lecture.

All that thinking and exploring soon makes me feel more engaged. Once I’m

engaged, I come up with better ideas. And good ideas inspire me to take action.

This process isn’t accidental. It’s a simple feedback loop I use to get moving on days when my brain feels stuck in neutral.

Remember that motivation is optional In a 2016 article for The Cut, author Melissa Dahl wrote that “the only motivational advice anyone has ever needed [is] you don’t have to feel like getting something done

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FEATURES

MOTIVATION

in order to actually get it done”.

It’s surprisingly brilliant. Your feelings don’t have to match your actions – especially when you truly want to move forward. You could feel tired but still put on your goggles and go for a swim. You could feel like you’d rather staple yourself to the chair than build another PowerPoint deck – and you still get the presentation done.

Dahl also quotes Oliver Burkeman, author of The Antidote: Happiness for People Who Can’t Stand Positive Thinking, who writes: “Who says you need to wait until you ‘feel like’ doing something in order to start doing it? The problem, from this perspective, isn’t that you don’t feel motivated; it’s that you imagine you need to feel motivated.”

Once again, this is where routines can outsmart feelings. Sure, you might feel like watching cat videos, but every morning, you sit down at your computer and open a blank document. You write for two hours (or whatever your routine entails) and you don’t bother taking your emotional temperature. Progress ensues. Then you repeat, repeat, repeat.

Delegate whenever possible The other day, I had a great idea during my morning workout. It was one of those eyebrow-raising light-bulb moments. Unfortunately, it had nothing to do with my three focus areas I mentioned above. So I made a note in my phone and asked our COO to follow my mental thread.

I was tempted to chase it myself, but I knew I had to stay focused.

I realise that delegation isn’t always possible, especially when you’re just starting out or money is tight. But when it’s possible, delegation can pay off big time. Offload an activity if: • You can regain precious time, energy or focus and apply it to something that will truly move the needle for you. That kind of work is priceless. Stretch yourself

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a little and measure the results. You can always test delegation in baby steps.

• Someone else can do it better. In my case, there’s almost always someone on our team who has more knowledge or niche expertise than I do. They’ll create a stronger result in less time – and again, I don’t get distracted from my goals.

The importance of enjoying the ride I’ve talked a lot about everyday motivation, but how do you sustain your drive for the long run? It’s an important question.

The answer will look a little different for

but the experience was nearly effortless. “Yes, discipline is critical, just like all the teachers say,” Piver says. “And there is definitely stuff that needs doing that is just never going to be fun, like paying bills and cleaning the cat box. But I suggest that instead of being disciplined about hating on yourself to get things done, try being disciplined about remaining close to what brings you joy.”

Talk about a perspective shift. We all go through tough times, work at jobs we don’t love and endure genuine unfairness. But if you’re struggling to do something you care deeply about, go easy on yourself. Tap into why you started your business or why

If you’re struggling to do something you care deeply about, go easy on yourself. Tap into why you started your business or why you’re flexing your creative muscles in the first place. It’s a much happier way to move through your days everyone, but ultimately, we’re all motivated by joy and meaning.

The Antidote author Oliver Burkeman first led me to Buddhist teacher Susan Piver.

Tired of forcing herself to be ‘good’ and master the daily to-do list, Piver decided instead to focus on the pleasure of her work.

“Once I remembered that my motivation is rooted in genuine curiosity and my tasks are in complete alignment with who I am and want to be,” she says, “my office suddenly seemed like a playground rather than a labour camp.”

She asked herself what would be fun to do and then focused on what she loved about each activity. In the end, her day looked the same as it did when she was ‘disciplined’ –

you’re flexing your creative muscles in the first place. It’s a much happier way to move through your days.

To recap: Establish your systems and habits. Stay focused on what matters.

Delegate and tune out the noise. Your motivation will grow. And if it doesn’t? You don’t need it anyway.

Aytekin Tank is the founder and CEO of JotForm, an online form creation software with four million users worldwide and more than 100 employees. A developer by trade but writer by heart, Tank shares stories about how he exponentially grew his company without any outside funding. For more information, visit jotform.com.

PEOPLE

CAREER PATH

ENGINEERING SUCCESS Andre Mierzwa’s career has taken him around the world and into just about every knotty engineering challenge under the sun

After graduating with a bachelor’s degree in aeronautical engineering, Mierzwa joined Commonwealth Aircraft Corporation in a program that allowed him to work in every department over the course of the next four years.

“It gave me an excellent grounding. Because of my other languages – German and Polish – I was looped into a project in Germany a group of senior management was looking at. I was able to pick up untranslated conversations because I spoke German.”

1972

TAKES FLIGHT

1976 RETURNS TO AUSTRALIA On his return to Australia, Mierzwa began as a field engineer, working across Australia, New Zealand, the Philippines, Hong Kong, Singapore and Japan.

“I had to identify hazards and make recommendations. The job itself was interesting and challenging. I didn’t have a chance to get bored. Something I learned fairly quickly is to understand where the client is coming from.”

1986 RAISES THE STANDARD Promoted to engineering manager for Australia, New Zealand and South East Asia, Mierzwa began working with Standards Australia, advising on a fire safety technology being developed by FM Global.

“I would become an expert on the technology, and that’s how my projects in Australian standards work come into being. The fire protection industry took that tech and ran with it.”

2000

TACKLES NEVER-ENDING CHALLENGES Upon returning to Australia, Mierzwa took up a purely technical role as operations chief engineer.

“I’m who the engineers go to if they don’t know the answer or can’t find it in a book. I have to go out in the field and solve specific problems. That’s the best part of the job. It’s never-ending challenges and learning”

1975 SEES A FATEFUL AD A recreational glider pilot, Mierzwa was on the way to the airfield one weekend when he stopped to buy a newspaper that ended up changing the course of his career.

“Something compelled me to get the paper, which had the job ads – and I was struck in the face by an ad that said, ‘FM Global will send you to America for one year’s training.’ They were hiring a lot of engineers and training in district offices in the US. I was sent to the Chicago office.”

1978 GAINS OFFICE EXPERIENCE Promoted to group manager, Mierzwa’s language skills came in handy when he was transferred to Germany for a few months. He was later recalled to the same office during a time of restructuring when the company needed a proven performer to step in during a multi-year transition.

“I spent time out in the field, managed engineers and managed various office functions and exceeded performance criteria, which stood me in good stead on return to Melbourne in 1980.”

1996

OPENS UP ASIA Assigned to set up and manage FM Global’s Asian engineering operations from its regional headquarters in Singapore, Mierzwa had a hand in the company’s expansion to Malaysia, Hong Kong, Shanghai, Taiwan, Korea, the Philippines and Japan.

“Our work in Asia just ballooned – and of course, China opened up, which meant a lot of clients were starting joint ventures in China. That was a hectic few years.”

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PEOPLE

OTHER LIFE

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

TAKE TO THE FIELD From her role as a broker to her Camogie and Gaelic football leagues, Loretta O’Toole is a team player

13

Age at which O’Toole first took up Camogie

3

Days O’Toole trains each week (two for Gaelic football and one for Camogie)

LORETTA O’TOOLE has been playing Camogie (“think ladies’ hurling,” she says) since childhood in her native Ireland, and she added ladies’ Gaelic football to her repertoire at the age of 18. Today, the Brisbane-based marine broker plays under the Australian flag for the sports, which are steadily gaining popularity in her adopted country.

Following club season, O’Toole trains with the state team, which represents Queensland in the annual week-long Australasia State Games Championship.

2

Games O’Toole plays every Sunday between April and the end of July

O’ Toole is both a forward for the Brisbane Souths Gaelic Football Club and half-back and mid-field in the Emeralds Ca mogie Club

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“With the growth of the sport in Australia, there are even native teams taking part in the World Games in Ireland later this year,” she says, “so there are opportunities to represent Australia in a world competition.”

O’Toole is happy to play a small part in the sports’ growing popularity in Australia. “There is a very fun, social aspect to the sport,” she says, “and as expatriates, we love to showcase our native games and welcome all newcomers with open arms. “

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