Insurance Business 7.01

insurancebusinessonline.com.au Issue 7.01

RUNNING THE SHOW

Becoming an AR in 2018

STAY ON THE ROAD

The motor fleet landscape today

COMPLY BEFORE YOU FLY

Use of drones in Australia

ZURICH AUSTRALIA'S CHIEF Rajbir Nanra talks about taking the insurer to the next level

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The men and women shaping the general insurance industry

HOT LIST 2018

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ISSUE 7.01

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CONTENTS

HOT

LIST 24

@InsuranceBizAU facebook.com/InsuranceBusinessAU

UPFRONT 02 Editorial

Seize the opportunity

FEATURES

40

BROKERAGE INSIGHT

Dale Hansen, CEO of an awardwinning brokerage, talks about customer-centricity and being risk management focused

06 Head to Head

Are targets the best way to drive industry diversity?

08 Opinion

What the issues surrounding flammable cladding mean for insurance

10 News analysis

What rewards can the industry reap by taking advantage of new technology?

12 Intelligence

HOT LIST

42

Insurance Business profiles 40 leaders of the general insurance industry and details why they’re worth keeping an eye on in times ahead

FEATURES

PEOPLE

Network leaders outline what the AR model offers insurance brokers in Australia today

RUNNING THE SHOW

14 Insurer update

Industry leaders react to the government’s establishment of a royal commission into financial services

16 Underwriting agencies update An underwriting agency chief shares his thoughts on how brokers can enhance their future in strata

19 A construction picture for 2018 Trends in the construction market

FEATURES

48 Staying on the road

Insights into the motor fleet insurance market

Rajbir Nanra, Zurich’s CEO general insurance for Australia and New Zealand, talks about what brokers can expect from the global insurance giant in 2018

20

KPMG’s annual analysis of the local general insurance industry

Steadfast announces a $95m acquisition, while AUB Group appoints a new chief operating officer

SPECIAL REPORT

EYES ON THE PRIZE

04 Statistics

FEATURES

52

DRONE RULES – COMPLY BEFORE YOU FLY

Lawyers James M Cooper and Jess Harman talk about the challenges arising for insurance from drone use

54 What to change about your business in 2018

Management consultant Stephen Barnes shares his recommendations

PEOPLE

56 Career path

Inspired by her father, Rebecca Wilson of Austbrokers ABS chose insurance

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31/01/2018 10:33:25 AM

UPFRONT

EDITORIAL

www.insurancebusinessonline.com.au

Seize the opportunity

L

ast November, international broking and risk management firm Gallagher released its Q3–Q4 Insurance Market Overview Report 2017, which demonstrated why brokers are more relevant now than ever before.

The report recognised the signs of a hardening market that the industry began to observe last year, and highlighted the monumental weather events (namely the US hurricanes) that made global news headlines, as well as the persisting geopolitical uncertainty. Additionally, it reminded us of legislative changes that would impact a number of industries. One major forthcoming change, the effect of which the local industry will watch closely, is the rollout of the long-awaited mandatory data breach notification regime – a scheme, it’s hoped, that will substantially increase take-up of cyber cover.

The question the Gallagher report posits whether these factors in combination are indicia of a “perfect storm” brewing. Whether or not that’s actually the case, only time will tell. But it also stressed that, regardless, right now the crucial need for trusted risk advisers, who can provide high-quality advice and assist in securing the best cover, is undeniable.

The crucial need for trusted risk advisers, who can provide high-quality advice and assist in securing the best cover, is undeniable Speaking to Insurance Business last year, Aon Risk Solutions’ Australian CEO, Lambros Lambrou, emphasised the opportunities brokers have to better educate clients around risk. He illustrated the point by discussing the results of Aon’s biannual Global Risk Management Survey. “We asked for feedback from C-suite buyers from around the world [on] … the things that they are concerned about, [and] where they see opportunities for the industry to improve their relevance,” Lambrou said.

“Of the top 50 risks that respondents gave feedback on, it’s interesting to me that, of those, only 12 were properly insurable in the marketplace today.” Another 12, he added, were partially insurable, while the remaining 26 risks out of 50 presented the industry with an opportunity to deliver greater value to clients.

The opportunity is there to be seized. We live in a rapidly changing world, and as David Kearney of law firm Wotton + Kearney reminded readers recently, the pace of change is only likely to increase. So much change brings confusion and uncertainty, and therefore a need for expert advisers to navigate individuals and communities around the landmines.

Tim Garratt, editor

EDITORIAL Editor Tim Garratt News Editor Jordan Lynn Writers Libby MacDonald, Lucy Hook Production Editor Roslyn Meredith

CONTRIBUTORS Stephen Barnes, Matthew Curll, James M Cooper, Jess Harman

ART & PRODUCTION Designer Joenel Salvador Traffic Coordinator Freya Demegelio

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

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

Editorial Enquiries tim.garratt@keymedia.com.au Subscription Enquiries subscriptions@keymedia.com.au Advertising Enquiries sophie.knight@keymedia.com.au peter.smith@keymedia.com.au

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Insurance Business America is part of an international family of B2B publications and websites for the insurance industry Insurance Business America cathy.masek@keymedia.com T +1 720 316 0151 Insurance Business Canada john.mackenzie@kmimedia.ca T +1 416 644 874O Insurance Business NZ peter.smith@keymedia.com.au T +61 2 8437 47OO Insurance Business UK nathan.beach@keymedia.com T +44 20 7193 0935 Insurance Business Asia peter.smith@keymedia.com.au T +61 2 8437 47OO

Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as Insurance Business magazine can accept no responsibility for loss.

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UPFRONT

STATISTICS

Heading in the right direction

The local general insurance industry is experiencing premium growth that it hasn’t seen for some time, a leading professional services firm reports

SIGNS CONTINUE to show that a hardening of the general insurance market in Australia is beginning to occur.

KPMG’s latest General Insurance Industry Review, released in November, reported 25% growth in the insurance industry’s profits in FY2017 to $4.849bn, with a rise in premiums and a drop in claims costs.

Scott Guse, KPMG partner and ASPAC head of IFRS Insurance, described FY2017 as “a very positive year” for general insurers, and

$42.969bn

Total industry GWP for FY2017 – up 5% on previous year

63.5%

said the firm believed it was “the start of a long-awaited upswing in the insurance cycle”. He noted that the overall increase in gross written premiums was primarily rate-driven, calling it a clear sign of market hardening.

KPMG believes it’s essential for insurers to maintain their pricing discipline and not risk eroding their growth “by aiming for short-term market share expansion”. It said automation had “a crucial role to play”.

24.8%

Loss ratio – a 2.5% improvement on FY2016

Expense ratio – down 1.4% in 2017 due to more cost-effective distribution channels

x 1.86

Capital coverage for direct insurers in 2017 was 1.86 times APRA’s prescribed capital amount Source: KPMG General Insurance Industry Review 2017

COMBINED RATIO

THE VERDICT ON 2017

The combined ratio improved from 92.2% in 2015/16 to 88.3% in 2016/17, but it remains higher than the combined ratio for 2013/14.

According to KPMG, the 5% growth in GWP in the year ending 30 June 2017 was largely rate-driven. It reported that this was the first year in some time that this kind of growth had been achieved. $50bn Loss ratio

100%

$10bn

0%

94.4% 92.2% 88.3%

20%

89.8% 87.9%

40%

2012/13 2013/14 2014/15 2015/16 2016/17 Source: KPMG General Insurance Industry Review 2017

4

0

Gross written premium

Net earned premium

$3.889bn $4.849bn

60%

$2.222bn $3.551bn

$20bn

$30.138bn

70%

Expense ratio

$28.534bn

$30bn

$42.969bn

80%

$40.898bn

$40bn 90%

Underwriting result

Insurance profit

Total 2015/16

Combined ratio

Insurance margin

66.0% 63.5% 26.2% 24.8% 92.2% 88.3% 13.6% 16.1%

0% 20% 40% 60% 80% 100%

Total 2016/17 Source: KPMG General Insurance Industry Review 2017

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TOP 10 EMERGING TRENDS KPMG identified 10 emerging trends in the global general insurance sector and examined the nature of their impact on local general insurers. The firm used the list to bolster its argument that insurers could not expect success by doing “more of the same”.

NEW TECHNOLOGY INSURTECH

Disruptive innovation will be “the standout market force influencing the transformation of the local insurance industry” over the next two years. Some insurtech companies will seek to compete with traditional insurers, but others will construct their business models around partnership with incumbent insurers and/or brokers.

DIGITAL

Customer needs are continuing to evolve. KPMG expects the insurer of the future to look starkly different to today’s incumbent, with technology having the potential to fundamentally alter not just the way consumers perceive and interact with insurers but also the actual role insurance plays in our everyday lives.

BLOCKCHAIN

NEW APPROACHES/PRODUCTS CYBER INSURANCE

CUSTOMER FOCUS

DATA ANALYTICS

RISK MITIGATION

KPMG recently undertook a survey of over 100 insurance CEOs, which found that over 25% see automation as the answer to managing current skills gaps. Many, it says, are beginning to realise that wider use of software robotics in business could mean significant added value.

Catastrophic weather has cost the Australian industry tens of billions of dollars in recent years, reinforcing the importance risk mitigation. Some insurers now invest in programs focused on improving insurance affordability.

But collaboration between government, industry and communities is also crucial.

In KPMG’s words, insurers have “unrivalled access to a great deal of information about their customers”.

It says utilising this data is integral to competing in the market and exploiting the opportunities associated with new technology.

Distributed ledger technology offers opportunities to the insurance industry that include improved business and operational processes; enhanced real-time pricing and risk management; enhanced customer trust and experience through a superior claim management process; and new or enhanced products and services at a lower unit cost.

ARTIFICIAL INTELLIGENCE

Australian insurers have a continued focus on becoming more customer-centric to fuel growth and add value. KPMG notes the recent appointment of C-suite execs at major Australian insurers, whose work is devoted to heightening customercentricity, and that these businesses are becoming more product-orientated and providing integrated offerings.

KPMG reports that cyber attacks cost companies around $400bn a year.

But there is much work to be done by insurers to assist in properly maturing the Australian cyber-insurance market. Insurers – and organisations – will first need to become much more sophisticated in assessing, quantifying and managing cyber risk.

REGULATORY CHANGE NEW ACCOUNTING STANDARD IFRS 17

CONDUCT AND MISSELLING

Insurers have made headlines because of issues related to claims handling and misselling, but conduct risk is rarely the sole cause of problems. KPMG emphasises the need for organisations to treat conduct, culture and customer experience as three legs of a tripod, each of equal importance.

Last May, the International Accounting Standards Board issued its new accounting model in IFRS 17 Insurance Contracts, effective from financial years commencing 1 January 2021.

Source: KPMG General Insurance Industry Review 2017

Life 3%

20%

Travel 22%

Income 3%

15%

Health 21%

Pet 6%

10%

Home 9%

Funeral 1%

5%

0%

Business 7% Source: KPMG General Insurance Industry Review 2017

16.1%

Car 28%

13.6%

A combination of factors contributed to an insurance margin of 16.1% in 2016/17. KPMG’s report shows the insurance margin having improved in recent years, trending back towards historic levels

11.3%

Just as they are comfortable purchasing a range of products online, consumers are becoming more confident about purchasing insurance products on digital platforms. Google search engine data reveals the distribution of all Google queries across the numerous insurance product lines.

18.2%

INSURANCE MARGIN

17.8%

INSURANCE ONLINE

2012/13

2013/14

2014/15

2015/16

2016/17

Source: KPMG General Insurance Industry Review 2017

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31/01/2018 10:34:41 AM

UPFRONT

HEAD TO HEAD

Should insurance introduce diversity targets?

The joke is that insurance is typically pale, male and stale.

Is it time to make a concerted effort to change that?

Chris Mackinnon Country manager Lloyd’s Australia

Former managing director and CEO icare

Vivek Bhatia

Ahranee Vijayaseelan

“For me, it is all about getting the best talent into the business and then retaining them.

“My view is that targets are a useful tool to measure progress. I don’t see anything bad about targets, but they are not effective unless they are part of a cultural change on unconscious bias and the implementation of a clear strategy to improve diversity and inclusion. Firms that have proactive talent management can do amazing things.

“Unconscious bias is all around us, and it takes a conscious effort to constantly challenge our own biases in decisions such as who to hire or promote.”

“I believe an inclusive culture and diversity of people and thought are imperative for businesses and communities to succeed and deliver their vision. Personally, I want to make sure my children have the same opportunities as anyone else, irrespective of their gender and identity.

“I’m not a fan of diversity targets. Targets can be tokenistic. People want to contribute their talents based on merit, not feel they’re satisfying a quota. While targets can lead to increased diversity, they don’t necessary drive inclusive workplaces. Our role is to break down any barriers so as to challenge bias, not be the bias.”

“More diversity will benefit the insurance industry. Studies have shown that more diverse organisations outperform those lacking diversity. Insurance as an industry has made progress but still has a long way to go. Consider gender diversity – women account for over half the employees in the industry, yet occupy just 12% of senior management positions.

“Diversity targets are a good idea and have delivered great results; however, targets alone are not enough to meet the challenges of diversity. Internally, organisations need to foster a culture that welcomes and embraces a diverse workforce, including in the C-suite ranks.”

Special counsel Hall & Wilcox

READY FOR CHANGE More than 70% of insurance professionals believe the culture of their firms needs to become more inclusive in order to attract and retain the best talent, according to a survey of nearly 3,000 insurance professionals. The survey, carried out at Dive In, the global festival for diversity and inclusion in the insurance industry, also found that almost two thirds of respondents felt their employers needed to take greater action to advance workplace diversity and inclusion in the areas of gender, LGBT and mental health.

“The insurance sector is working hard to address its culture,” Lloyd’s CEO Inga Beale said in response to the findings. “We have made a lot of progress, and although we have more work to do, we are uniting across the insurance world to attract and retain a diverse workforce.”

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UPFRONT

OPINION

Flammable cladding and risk The insurance industry must ponder new approaches to cladding, as insurance brokers face client management challenges, writes Matthew Curll WE ARE still understanding flammable cladding’s serious knock-on effects for the general insurance industry. But one thing is becoming clear – momentum could accelerate, and old methods may struggle to solve the problem.

Rectification costs could theoretically reach billions of dollars and flow through to purchasers of third party liability insurance programs. If a co-ordinated effort between insurers and brokers cannot be achieved, there may come a time when many constructionbased supply, installation and professional advisory and compliance businesses will have gaps in cover for cladding risk.

Broker challenges centre around the following: • the cost of reinsuring affected properties, and coverage terms including exclusions • property owners who rectify non-compliance and seek to pass cost along the chain of responsibility • proactive, yet uneven, government intervention (uneven due to Australia’s decentralised government), thus forcing rectification • fire, consequent property damage and personal injury

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Current forces at play The Victorian Building Authority issued an order to replace Melbourne’s Lacrosse tower cladding – reported figures suggest $6.5m incurred to date and $9m to replace the cladding.

Two other Victorian apartment towers have orders to remove cladding. Anstey Square

Which policies are likely to be affected?

Cladding issues may involve the following policies (subject to exclusions): • First party: Property policies, product recall, contract works, ISR/property policies • Third party: Professional indemnity and public and products liability policies • Hybrid: Mitigation extension, inquiries cost cover, and D&O policies Insurers will protect themselves by implementing broader product liability exclusions, specific/non-compliant product exclusions, corresponding professional service exclusions, indemnity caps, higher excesses, and subrogated recoveries.

What lies ahead for brokers?

We can’t see brokers being criticised for conduct to date. But things are moving quickly and brokers in the construction sector will need to be dynamic and ensure they have

Brokers in the construction sector will need to be dynamic and ensure they have processes to cover themselves apartments on Sydney Road, Brunswick, is clad in the same material used on London’s Grenfell Tower. The cost to replace the cladding is estimated at up to $3m.

The building’s insurance premiums have risen from $29,000 last year to $134,000 this year, according to reports. The excess has increased from $1,000 to $100,000.

Thousands of high-rises are potentially non-compliant. Eight Victorian hospitals have non-compliant cladding. Newspapers report the major builder of the Melbourne’s Royal Women’s Hospital has agreed to replace non-compliant cladding.

processes to cover themselves.

Many brokers will need to dig deeper to understand the risks involved – they may need to develop new processes and questionnaires.

It’s a great opportunity for brokers to strengthen their risk management and client connections.

Many brokers and some underwriters are encouraging their insureds to undertake risk audits to assess and rank projects for risk according to cladding composition (especially polyethylene) and fire safety system adequacy.

Brokers must monitor the Victorian Government audit and rectification program.

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If this gathers momentum and NSW and Queensland follow suit, some insurers will quickly suffer large hits – insurers may drop out rapidly without good communication and collaboration in the market.

The natural tendency for insurers will be to duck for cover as their insurance products become impacted. Brokers must be ready for this to happen at short notice.

Insurers need to be reminded that this is largely now a post-construction risk, so at worst it should result in exclusions or larger excesses and smaller limits, rather than a complete refusal to renew or offer cover to insureds.

We could argue that any long-term solution

needs to come from outside the insurance industry – the insurance industry cannot afford to cover cladding removal from all buildings nationwide. But within the insurance industry there may be the opportunity to pull together in advance and do something different, before the forces at play cause a crisis.

It would be interesting to see what collaboration at a high industry level between the ICA, NIBA, insurers and reinsurers could achieve. This should be encouraged. The Victorian Taskforce has engaged with the ICA but is going to revisit the impact of insurance as things unfold.

Thinking outside the box, major banks

have indicated to the Victorian Taskforce that there may be low-cost financing products available to strata plans to assist with rectification costs. Is there a potential business opportunity for brokers and insurers to weave the banking industry into solutions offered by the insurance industry? It will be interesting to see what unfolds and who will take up the opportunity.

Matthew Curll is a partner at Hall & Wilcox, where he manages product and property liability, professional indemnity, D&O and EPL claims, first party property claims and associated recoveries for clients nationally.

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31/01/2018 11:30:36 AM

UPFRONT

NEWS ANALYSIS

The winds of change From next-generation underwriting to AI-driven automation, how will technology change the industry in the coming year?

THE INSURANCE industry will get smarter and faster in 2018 with the help of a technological toolkit. Everything from the fundamental process of underwriting to better engagement with customers is on the table, as long as the industry can get its ducks in a row when it comes to taking advantage of emerging technologies and existing data.

According to Frederic Valluet, solutions director for insurance at MarkLogic, 2018 is the year that next-generation underwriting will start to spread across the insurance industry. Text mining, machine learning, algorithms and artificial intelligence will all become more prevalent as methods of analysis, and will help provide consistent, highly contextualised information to

are all available in data and documents they have accumulated over years and that they don’t currently leverage.”

Emerging risks in particular is an area in which the industry has much to gain from getting a grip on data, says Keith Stonell, regional managing director at Guidewire Software.

“Protecting people and businesses from cyber risk seems like an obvious insurance opportunity,” he says, “especially with cyber attacks becoming commonplace.”

He adds that analysing non-traditional data, which is crucial to underwriting new cyber risks, had been considered dark magic, but the tide is beginning to turn.

“Insurers are working overtime to mine

“There is a new way to evaluate and price risks, based ... on historical data, relevant insights, geospatial and economic drivers” Frederic Valluet, MarkLogic underwriters, which will increase their decision-making speed.

“Companies will realise that there is a new way to evaluate and price risks,” Valluet says, “based not only on experienced people but also on historical data, relevant insights, geospatial and economical drivers – which

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data that delivers personalised experiences and products, like Amazon and Facebook do every day,” he says, “but the industry will mature this year around how it formalises data listening of external sources to evaluate and price new kinds of risks.”

In addition to building a more diverse

arsenal when it comes to assessing risk, data has the power to better inform insurers about what customers want, as well as how and when.

“Insurance has been a data analysis business since the first actuaries scratched on their parchments,” Stonell says, “so to say data analytics will matter in 2018 is no surprise.

But what is going to become a differentiator is how insurers will rely on live analytics to support more personalised engagements in line with individual customer needs.”

Stonell adds that while digital transformation thus far has typically been about faster transactions, this year the goal will be to make core insurance systems smarter. These systems will not only allow customers to self-serve more through web and mobile apps, but will also allow providers to ultimately shave down costs.

To do that, though, they will need to rely on algorithms to determine, for instance, whether an application or claim is accepted.

“Companies have to streamline their

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31/01/2018 10:36:06 AM

FAST FACTS: EMERGING TECHNOLOGY

34 employees were laid off by Japanese firm Fukoku Mutual Life Insurance in 2017 in favour of an AI system

75% of insurance executives believe that AI will transform the industry over the next three years

69 existing processes, which are currently based on different specialised tools, to evolve towards a single operational view,” Valluet says.

While insurtech has dominated headlines and attracted serious amounts of cash in recent years, it could be facing higher levels

generating some great ideas and business models, many of which are going to change the industry, but I see that more through assimilation than outright disruption.”

Last year, Japanese firm Fukoku Mutual Life Insurance made headlines around

“Insurers are working overtime to mine data that delivers personalised experiences and products” Keith Stonell, Guidewire Software of scrutiny and pressure this year. Stonell predicts that 2018 will see the sector having to prove it can justify the “huge amount” of investment and media interest that it has generated.

“The future for insurtech and other expressions of industry innovation will lie in how well they are plugged into the mainstream,” he says. “Undoubtedly, it is

the world when it laid off 34 employees, replacing them with an AI system. Fukoku said it believed the move would increase productivity by 30% and predicted it would see a return on its investment in less than two years. But while most experts agree that AI has a crucial role to play in the industry, Stonell says the focus will be on how AI will automate tasks and elevate insurance work,

of the 100 top insurance CEOs say they plan to invest in digital infrastructure over the coming years

US$283M was invested in insurtech firms globally during the first quarter of 2017 Sources: The Guardian, Accenture, KPMG, PwC InsurTech Insights

rather than automating human judgment and eliminating personnel.

“In freeing up staff from menial tasks, they can become better engaged in solving their customers’ needs,” he says, adding that a number of new developments are combining predictive data analytics with machine learning around behavioural analysis, which could result in AI that helps staff be more empathetic. “That’s a natural fit for the insurance sector and customer management.”

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31/01/2018 10:36:11 AM

UPFRONT

INTELLIGENCE CORPORATE ACQUIRER

TARGET

PRODUCTS COMMENTS

Gallagher

Connect Insurance Group

Michael Lewin, Gallagher’s head of M&A (Australia), says: “The Connect team brings more than 20 years’ transport, civil construction and general SME experience to the business, which naturally complements our existing transport and civil capability in Parramatta, which has achieved a strong track record to date.”

Gallagher

Scope Insurance Brokers

“In Launceston, this move almost doubles our team and puts us in great shape to grow our investment in the local business and broader Tasmanian community,” says Gallagher’s Michael Lewin.

Sedgwick Claims Management Services

Cunningham Lindsey

Closing of the transaction (announced on 6 December 2017) is subject to customary conditions and regulatory approvals.

Steadfast Group

Whitbread Insurance Group

The acquisition is expected to be earnings accretive in FY18 (excluding transaction costs).

Underlying EPS (NPAT) accretion is expected to be ~3% in FY18 on an annualised basis, assuming that the acquisition is fully funded by equity.

Zurich Insurance Group

OnePath Life (ANZ’s life insurance businesses)

Zurich will acquire 100% of ANZ’s life insurance businesses in Australia for $2.85bn. Parties expect the transaction (subject to regulatory approval) to be completed by the end of 2018.

Steadfast acquires Whitbread Insurance Group

Steadfast Group announced on 4 December that it had agreed to acquire Whitbread Insurance Group for $95m.

Whitbread Insurance Group comprises two business units – Whitbread Insurance Brokers, a general insurance broker, and Axis Underwriting Services, an underwriting agency specialising in property and liability.

“As a long-standing member of the Steadfast Network, we have a close, long-term relationship with WIB which we look forward to building upon following this transaction,” said managing director and CEO Robert Kelly.

“Axis will complement our existing agency portfolio. It has performed strongly while showing pricing and underwriting discipline to build long-term relationships in their market.”

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QBE launches dedicated drone cover

QBE’s new drone insurance policy exists as a stand-alone product within the insurer’s current range of aviation policies, and provides cover that QBE says was not previously available in the market. The insurer’s aviation team has also released a report highlighting some of the risks confronting drone owners and operators. According to the report, one in 50 drones crash, meaning that if an operator is not adequately covered they’re left open to the loss of valuable assets, as well as potentially significant financial losses for any damage or injury caused by the incident.

RACV introduces Single Item Insurance

RACV has become one of the first insurers in Australia to offer single-item insurance, covering items such as laptops, tablets, phones and gaming consoles, with premiums from $25 a year. RACV Single Item Insurance covers theft from the home, and damage and loss due to fire, storm, cyclone and flood. Optional cover protects against theft anywhere in Australia, and accidental damage including knocks, drops and spills. The cover encompasses 10 categories, including consumer electrical goods, gaming devices, musical instruments and furniture, and allows the average Victorian to insure a laptop from $2.37 per week.

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31/01/2018 10:36:59 AM

BHSI launches Contractors Plant and Equipment policy

Berkshire Hathaway Specialty Insurance has introduced a new Contractors Plant and Equipment policy for customers in Australia. “With this new policy, contractors can easily and efficiently address their property damage and liability exposures, including road risk, in a single policy,” said Dimitry Zilberud, head of marine, BHSI Australasia, adding that the product was “an excellent complement to our existing capabilities in property, construction, mining and casualty”.

The policy includes numerous coverages, including material damage (with a range of automatic benefits), hired in plant, financial protection for plant and interruption, road risk, general liability, and replacement value for plant (up to 36 months old) after total loss.

New JLT scheme targets API members

JLT has launched a bespoke scheme in partnership with the Australian Property Institute (API), offering tailored professional indemnity cover for valuers. API ValCover is aimed at API members; the scheme will be backed by Lloyd’s via Woodina Underwriting. “Claim advocacy is a key feature of the service, with legal support provided by Woodina’s in-house law firm, Woodina Law Pty Ltd, and further claims support by JLT,” Bill Hogg, senior consultant at JLT Affinity, told Insurance Business. “Woodina has a dedicated claim service through Woodina Law.”

Syndicate created for better MPCI access

MGA Insurance Brokers Pty Ltd (SA), Country Wide Insurance Brokers (WA) and Adroit Insurance Group (Vic) have formed a syndicate to access new multi-peril crop insurance (MPCI) products. Paul George, MGA’s managing director, said, “The combined regional distribution of Adroit, Country Wide and MGA in the major primary production areas of Victoria, Western Australia and South Australia is significant. This broad geographical spread will give us the backing and weight required to approach insurers to source better products for our respective customers.”

PEOPLE NAME

LEAVING

JOINING

NEW POSITION

Alison Brough

n.a.

Allianz Australia

National manager strategy and key partnerships

Michelle Hay

Konekt

Allianz Australia

General manager consumer, SME and platform solutions

Dan Tully

n.a

Allianz Australia

General manager financial institutions

Iain MacLeod

n.a.

Allied World Australia

Senior vice president, country manager

Alison Percival

Chubb

Arch Underwriting at Lloyd’s (Australia)

Regional manager, financial lines

Elyse Henderson

National Australia Bank

AUB Group

Chief operating officer

Tim Fairbrother

n.a.

Brooklyn Underwriting

Head of Brooklyn

John French

n.a.

Chubb

Senior vice president, head of broker distribution, Asia Pacific

Jarrod Hill

n.a.

Chubb

Country president, Australia and New Zealand

Dale Graf

n.a.

HDI Global SE

Underwriting manager, property, Australasia

Alex Hind

n.a.

HDI Global SE

Underwriting manager, power and energy, Australasia

Joel Mitchell

n.a.

HDI Global SE

Underwriting manager, marine, Australasia

Vikash Raman

Zurich Financial Services Australia

HDI Global SE

Liability claims manager

Aaron Gavin

Allianz Australia

QBE

Head of SME, Australia and New Zealand

Vivek Bhatia

icare

QBE

CEO, Australia and New Zealand

AUB Group appoints new COO

AUB Group has appointed Elyse Henderson as its COO. She joins the group from National Australia Bank, where she was head of transformation. In her new role, Henderson will lead and develop group service propositions, including business technology, business centre and marketing. Mark Searles, CEO and managing director of AUB Group, described Henderson as “an impressive leader with a focus on delivering the right client outcomes”.

“Her strong record of strategy execution and her understanding of SME businesses and clients will greatly assist in leading service delivery for the Group.”

Chubb’s John French takes on Asia-Pac role

Chubb has appointed John French senior vice president, head of broker distribution, for Asia Pacific. Previously Chubb’s country president for Australia and New Zealand, French will continue to be based in Sydney.

“We draw great comfort from having such a seasoned executive leading our brokerage distribution in the Asia-Pacific region,” said Paul McNamee, Chubb’s regional president for Asia Pacific, in a statement.

Jarrod Hill succeeds French as Chubb’s country president of Australia and New Zealand.

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31/01/2018 10:37:07 AM

UPFRONT

INSURER UPDATE

Ready for commission The insurance industry has reacted to the announcement of a royal commission into financial services

The general insurance industry is “ready to contribute” to the Turnbull Government’s royal commission into banking and financial services, according to Insurance Council of Australia CEO Rob Whelan.

Following the announcement of the inquiry, Whelan said he hoped the royal commission would “end political uncertainty and improve public confidence in the insurance sector”.

“The Insurance Council is reviewing the draft terms of reference and will provide input to the government,” he said.

The ICA CEO also noted the contribution the industry had made to several governmentinstigated inquiries and reports in recent

NEWS BRIEFS

years, including the Financial System Inquiry, the Senate inquiry into general insurance, the Northern Australia Insurance Premiums Taskforce, the Henry Tax Review, and the Queensland Floods Inquiry.

“The inquiries have concluded that the general insurance industry … does not have systemic issues that need addressing,” Whelan said.

“They have reported that insurers operate in a competitive market and are appropriately pricing to risk, and that government investments in mitigation and resilience measures are the only sustainable ways to lower premiums in high-risk areas.”

IAG’s new quota share agreements

IAG has entered into three agreements to quota share a combined 12.5% of its consolidated business, effective 1 January. IAG says this will improve its capital mix by placing greater emphasis on the application of more efficient reinsurance capital. The agreements, with reinsurers Munich Re, Swiss Re and Hannover Re, are on a whole-of-account basis, covering IAG’s consolidated business in Australia, New Zealand and Thailand. They have an average initial period of over five years.

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Insurance and banking giant Suncorp’s CEO and managing director, Michael Cameron, described a “strong, stable and competitive financial system” as “vital for all Australians”.

“We are fully committed to supporting this inquiry, as we have with all other inquiries that the government has instigated, and will work hard to ensure our contribution is valuable.”

Cameron also said it was important the inquiry was not “open ended” and that it reported back “in a timely manner so that the sector can have certainty moving forward”.

NIBA CEO Dallas Booth told Insurance

“We are fully committed to supporting this inquiry, as we have with all other inquiries that the government has instigated” Business that while brokers could be in the firing line, the 12-month time frame specified for the commission, and the need to focus on serious misconduct, could see brokers spared.

“I think there will be things the royal commission will be focusing on outside of general insurance broking,” Booth said.

“Nevertheless, this is an opportunity for NIBA to again tell the world the good work that brokers do, the way they act in their clients’ best interests, and the way they become the advocate for the client when a claim has to be made.”

icare partners with Gallagher Bassett

Gallagher Bassett has been appointed icare’s new claims management partner for processing of Self Insurance general lines claims, effective 1 March. This will support icare’s transformation strategy to build “a worldclass insurance offering with a customercentred approach to delivering value to the NSW government agencies, workers and assets of the state”. The contract includes provision of claims management services for general liability, property and engineering and motor vehicle claims.

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31/01/2018 10:37:48 AM

Q&A

LIU chief talks 2018 John McCabe Senior vice president and chief operating officer LIBERTY INTERNATIONAL UNDERWRITERS (LIU)

Fast facts John McCabe has spent more than 15 years in insurance and, prior to that, 13 years in public practice accounting.

Before his current role, McCabe was global chief risk officer at Liberty Mutual’s Boston head office

What are you most looking forward to in 2018?

We’re looking forward to expanding some of our newer product lines/segments, including accident and health, warranties and indemnities, surety, trade credit, terrorism, and work health and safety protection.

We’re also continuing our expansion in Asia. Since we commenced operations in Singapore in 2003 we’ve steadily broadened our geographic coverage to include China, Hong Kong (SAR), Malaysia, South Korea, Japan and Indonesia. Our new Lloyd’s platform in Shanghai and Beijing is a good example of Liberty’s expansion in the region.

Is there anything the business will be doing that may be of particular interest to brokers?

We’re always looking for ways to streamline interactions with our broker partners and save time for everyone.

In 2018 we’ll continue to refine our online quotation systems and work to standardise our policy-closing processes to make it easier and faster to transact with LIU. We’ve been working on this for some time, and we continue to develop our central processing services team to provide underwriting, claims and administration support across our business. Our approach is working really well, and we keep identifying opportunities for this team to help us deliver great customer experiences efficiently and effectively.

Do you think there are particular product lines that offer brokers a real opportunity to educate their business clients?

Cyber is possibly the most topical of these product

QBE invests in artificial intelligence

QBE Ventures recently closed an investment into Cytora, a London-based start-up that uses artificial intelligence and open-source data to help insurers lower loss ratios, grow premiums and improve expense ratios. QBE has also entered a commercial use agreement for the Cytora product and will deploy the Cytora Risk Engine across its property and casualty lines. Richard Pryce, CEO of QBE’s European operations, said the partnership “enables us to accelerate the adoption of advanced analytics in our business”.

lines. Companies are increasingly exposed to cyber threats, and education on the significant risk transfer inherent in some standard policies is required.

Specialist cyber cover is increasingly sought after.

Terrorism is another area where education can be required, particularly in understanding the limitations of the terrorism pool. Some clients have exposures not covered by the terrorism pool, and brokers can advise on how best to protect them.

Environmental liability and crisis management are also growing markets where standard liability wording doesn’t provide adequate cover against all risks.

These risks have grown from being extensions to traditional wordings to being stand-alone covers in their own right. Our Product Recall cover is a good example, with most public and product liability wordings not providing adequate cover against accidental contamination, malicious product tampering or product extortion. These are all considerable risks that manufacturers and suppliers today face across a wide range of industries, including food and beverage, pharmaceuticals, appliances, toys and automotives.

Demand is consistently increasing for these products, and brokers play a key role in helping their clients understand the value of these new covers.

Are there any trends you will pay especially close attention to in 2018?

I mentioned the growing interest in cyber, environmental liability and terrorism covers. We’re also preparing for potential changes to liability covers in response to the introduction of autonomous and semi-autonomous vehicles.

Three insurers to refund over $100m

In December, ASIC announced that Swann Insurance would refund over 67,000 customers a total of $39m paid for add-on insurance. It said the refund related to add-on products, bought via car and motorbike dealerships, that were of “low or no value”. In January, ASIC then announced that Allianz and Suncorp would refund customers $45.6m and $17.2m respectively in add-on insurance premiums, for add-on cover sold through car dealerships that was of “little to no value” to consumers.

Zurich launches leader program

Zurich has launched its NextGen Leadership Academy with the aim to develop future industry leaders by enhancing their industry knowledge, leadership skills and strategic thinking. Steve Ord, Zurich’s chief distribution officer for ANZ, said the Academy was “our contribution to the development of tomorrow’s insurance leaders”. Participants will complete learning modules and presentations on topics such as risk strategy, claims, and business decision-making.

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31/01/2018 10:37:53 AM

UPFRONT

UNDERWRITING AGENCIES UPDATE NEWS BRIEFS Agency ranks first in strata ratings

Strata Community Insurance has taken the top spot in StrataRatings’ inaugural 2018 strata insurance ratings. Simon Plummer, managing director of StrataRatings, said the ratings were established to provide brokers, owners and strata managers with “a level of transparency and an understanding” as to how residential and commercial strata products “will generally perform”.

Strata Community Insurance was awarded platinum product status for both its commercial and residential policies. The Allianz Group-backed agency ranked first out of 22 for residential strata products, and first out of 13 for commercial strata products.

Industry says goodbye to veteran underwriter

Paul Girard, national underwriting manager and director at SURA Professional Risks, passed away in December. He had spent the last five years of his four-decade career at SURA Professional Risks. “Over the course of his successful career Paul built strong and lengthy relationships and was greatly admired and respected by his colleagues,” said Paul Robinson, SURA Professional Risks’ managing director. “Paul will be sorely missed by myself and I am sure all who had the pleasure of knowing him. And our close-knit team will rally around his family as we grieve this loss together.”

Kogan.com to offer pet insurance

Online department store Kogan.com expects to launch pet insurance in the second half of the current financial year. It recently entered an agreement with

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underwriting agency PetSure, allowing the store to distribute and promote policies under the brand Kogan Pet Insurance. According to a statement, Kogan Pet Insurance will focus on offering a range of pet insurance products, which will be underwritten by The Hollard Insurance Company and administered by PetSure. David Shafer, Kogan.com’s executive director, said the partnership was a natural extension to Kogan’s existing insurance offerings.

New UAC board announced

At UAC’s December AGM, three current directors were re-elected to its board: Lyndon Turner, CEO of NM Insurance; Kurt Nilsen, managing director of Lion Underwriting; and Peter Fryer, underwriting governance manager at XL Catlin. Turner was re-elected as chair. Eric Lowenstein, CEO of Tego Insurance, was elected to the board as a new director, and Rhys Mills, managing director of Solution Underwriting, decided not to stand for re-election. Four directors were not required to stand for re-election in 2017 (Heath Amber, Simon Lightbody, Emily Walker and Linda King).

Respected underwriter returns to SURA

Ross Gilbert has been appointed national manager for SURA Labour Hire and SURA Specialty. Based in SURA’s Melbourne office, he will lead the day-to-day running of both portfolios. In a statement, managing director Angie Zissis said SURA was very pleased to have Gilbert back on board. “He previously worked for our group of agencies for over seven years.

His return shows his strong connection to our business,” Zissis said, adding that Gilbert’s expertise would ensure both agencies “continue to grow and that brokers are provided first-rate service and technical know-how”.

‘Epidemic’ creating opportunity Getting closer to clients will put strata brokers in a ‘great position’, says underwriting chief Brokers in the strata market should seek to get closer to their clients, says Paul Keating, managing director of Strata Community Insurance.

The agency MD said recently that rising issues around defective buildings and materials could stand brokers in good stead to capitalise on a market that relies on expert advice.

“My view is that as these issues with defects and cladding escalate, alongside the complications of more reform, what that actually means is people need advice and advocacy,” he told Insurance Business.

“If brokers can move away from electronic platforms and take the opportunity to become advocates again, I think that they have a great future in this sector.

“However, if they are going to do it from behind the desk and fall into the trap of electronic systems, I don’t think clients are going to get the customer service and advice that they want.”

Keating expects issues surrounding defects in building materials, and buildings themselves, to continue to be the biggest factor impacting the strata market.

“It is an epidemic, and it is in all states,” Keating said of the current state of building defects and quality. “People have taken shortcuts, and there is no government oversight and the certification process is failing. I think that is going to continue to be an issue that all insurers will have to look at.”

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31/01/2018 11:31:19 AM

UPFRONT

UNDERWRITING AGENCIES UPDATE

ARE YOU AUSTRALIA’S BEST BROKER? The search is on for the best brokers in Australia for Insurance Business magazine’s sixth annual Elite Brokers report.

The report will rank brokers according to some key performance metrics from the 2017 calendar year to establish the country’s best all-round brokers.

Do you have what it takes to be named the #1 Elite Broker?

ENTRIES CLOSE FRIDAY 16 FEBRUARY AT WWW.INSURANCEBUSINESSMAG.COM

BROKERS 2018 18

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31/01/2018 20/12/2017 11:31:26 6:58:26 AM PM

8:26 PM

UPFRONT

CONSTRUCTION UPDATE

A construction picture for 2018 SURA Construction’s underwriting manager, Jim Wiechman, talks trends and emerging risks to look out for in the construction marketplace

What were the highlights for SURA Construction’s business in 2017?

2017 was a big year for SURA Construction.

Last year, we bedded down our agency agreement with new security following the withdrawal of GLA from the Australian insurance market, which has allowed us to offer a wider policy coverage. Thanks to exceeding growth and profitability targets within our business, we were able to invest in our team and our underwriting support systems, and this included the notable appointment of Cameron Matthee as a senior underwriter in our Melbourne office, allowing closer access to Melbourne and Victorianbased brokers.

We were thankful that these developments and our history of servicing brokers with what we consider to be some of the best technical expertise in the construction insurance market was recognised by brokers, who named us among the best construction insurance underwriters in Insurance Business Magazine’s recent Brokers on Underwriting Agencies Survey. This type of recognition was particularly pleasing for us, as our agency has engaged the market via the AIMS network, meaning our products have not been available to all brokers.

What trends do you predict for the construction insurance market this year?

We think there will be a continuation of soft trading conditions, with capacity remaining plentiful for construction business. A focus on

segmentation in terms of distribution and risk categorisation, with a stronger focus on claims active accounts is also likely to continue in this market. With the reduction in underwriting personnel who have genuine product knowledge in construction insurance across the industry generally, we are also likely to see increased reliance on sourcing business via internet-based platforms.

Are there any key emerging risks you think brokers/clients should be aware of?

The risks surrounding new materials have been highlighted by the spectacular losses involving aluminium-facade panels in recent times.

Compounding this risk is how secure the process is that deems these new materials and products compliant with local building standards. While it is important that innovation is not stifled by punitive insurance terms, underwriters will need to be confident that new products pose no greater risk of loss than traditional ones.

There are also new construction methods.

Modular construction is now viable, given the ability of manufacturers to achieve very fine tolerances with dimensioning. This will allow an increase in off-site fabrication of building components, and quicker build times, but could adversely impact the design risk. Interestingly, while cyber risk is not seen as a high risk for the construction industry directly, it could impact allied support functions, for example project management and document management.

What technical aspect of construction insurance do you think brokers could benefit from understanding better in 2018?

Our staff receive frequent enquiries regarding coverage for pre-existing property that is to undergo renovation or modification.

Identifying which contracting party is responsible for this insurance can be difficult when the contract is silent, and home-building policies vary greatly in terms of how much contract works is permissible before the home-building policy voids. We feel it is important that brokers highlight this issue to their builder clients whenever they are taking on projects involving pre-existing property.

As a general comment, we think brokers sometimes have a challenge keeping up to date with the necessary product knowledge at the ‘coalface’ across Australia, particularly brokers who are outside the Melbourne and Sydney regions. Well-presented training material developed for Australian conditions can be hard to find.

Construction insurance is a niche offering and a complex product, which does require both a thorough knowledge of the way the cover operates as well as a high-level understanding of how the construction industry operates. We’ve addressed this by publishing a series of ‘Know-How’ newsletters available at sura.com.au/construction, and I’d encourage brokers who are interested in developing construction insurance knowledge to use them.

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31/01/2018 11:31:31 AM

PEOPLE

THE BIG INTERVIEW

EYES ON THE PRIZE Zurich Australia’s Rajbir Nanra talks about his first two years in the top job, as well as what brokers can expect from the Swiss insurance giant in 2018 TO SAY that Rajbir Nanra became CEO of general insurance at a challenging time for Zurich is certainly an understatement.

Less than two months after his appointment (in September 2015), the global Zurich Insurance Group announced a thirdquarter drop in profit of 79%, with net income totalling US$207m, starkly contrasting with the US$966m figure recorded a year earlier. It was a decline largely attributed to problems within Zurich’s global general insurance business.

Since then, Nanra has been firmly focused on executing a fresh strategy. As well as leading a restructure of the local general insurance operations, that strategy has seen the appointment of new executive leaders, as well as the $741m acquisition of travel insurance provider Cover-More.

Nanra reflects on the last two years – the good times and the bad.

“I think probably the most difficult challenge was making the hard decisions about exiting certain lines of business,” he tells Insurance Business. (Zurich’s decision to exit the NSW CTP greenslip market made industry headlines when it was announced in December 2015.)

“It was at a time when the market was softening quicker than we expected, and to take a bold stance to remove ourselves from quite a large amount of business, I think, was very challenging to try to communicate to the market and explain why we were doing it.”

But there have also been some strong gains for the business, Nanra says.

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“While we made a lot of hard decisions and we had to rightsize the business, we had an opportunity to rebuild a lot of the senior management and executive team,” he says. “And I think the standout for me was being able to attract great talent. We employed a new CFO [Stuart Farquharson], a new chief claims officer [Hilary Bates], and a new chief distribution officer [Steve Ord], complementing the existing senior talent in the business.”

Nanra also discusses the benefit of strategy.

disputed. [We’re] now engaging even closer with the brokers to make sure that [we understand] how we can help, and assist and advise them with the customer [as] to what the most effective cover is.”

The claims experience Work done on the claims front is another source of pride for Nanra.

“We did a lot of work around rebuilding the claims capability,” he says. “One of the standout achievements from bringing on

“I think technology in claims is great, but providing a technology solution that provides further transparency for the customer is probably the number one priority for us. It’s what we’ve done in 2017” “I think setting a new five-year strategy was very helpful for us to go to the market and communicate what Zurich was all about but, more importantly, to internally explain to our staff – after the period of … stabilising the business – where we were going to take the business in the future.”

Nanra is proud of what Zurich has offered the market in recent times in terms of flood coverage.

“Our experience during [Hurricane] Debbie was extremely satisfactory to me,” he says. “Less than 1% of our claims … were

Hilary Bates as the new CCO was improving our net promoter scores by 47% over a ninemonth period.”

Nanra believes claims are often a forgotten component of the insurance process.

“It’s the last thing we do, in terms of the whole value chain, when we talk about the customer, and that’s really what we’re here for – to pay claims,” he says.

“Hilary set about restructuring the team first, and making sure we had a very marketfacing and customer-centric team built.

Once she put that team together, [she] then

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31/01/2018 11:17:33 AM

PROFILE Name: Rajbir Nanra Company: Zurich Financial Services Title: CEO, general insurance, Australia and New Zealand Number of years with Zurich: 5 (joined in 2013 as regional audit director, Asia Pacific) Fast fact: Nanra’s experience across the Asia-Pacific includes time working in China, Singapore, Malaysia and Hong Kong. In May 2017, he joined the Board of the Insurance Council of Australia

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31/01/2018 10:38:33 AM

PEOPLE

THE BIG INTERVIEW

looked at the technology and how we could make it easier for brokers and customers to transact with us.”

Last June, Zurich launched Z Track, its new claims tracking and reporting tool.

“The biggest thing around claims is transparency; whether it’s commercial business, retail [or] corporate, people always want to know where we are up to in our claims. If [they] don’t hear back within 24 hours, customers get very anxious,” Nanra says.

“Z Track allows the broker and the customer to actually see where their claim is up to, [including] the file notes surrounding those claims, and so it provides them with full transparency around … the process.

“I think technology in claims is great, but providing a technology solution that provides further transparency for the customer is probably the number one priority for us. It’s what we’ve done in 2017.”

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“We work very closely with our brokers now about understanding the customers’ needs. Too often we don’t listen to what the customer needs are and we try to tell them what we think they need” Last May, in a conversation with Reuters, Zurich’s global chairman, Tom de Swaan, said the business had begun utilising artificial intelligence in its handling of personal injury claims.

De Swaan said Zurich’s deployment of AI had, so far, saved 40,000 work hours and sped up claim processing time to five seconds, and that the group planned to expand its use of AI. “The group actually signed an agreement with a company called Expert System for

cognitive computing solutions,” Nanra says.

“For me, that’s been a fantastic achievement to actually demonstrate Zurich’s commitment to move into the next century around ease of process.

“Obviously, we’re looking closely at that here in Australia. The benefit of being part of a global organisation is we will start to leverage off what they’re doing from a group perspective, and certainly that’s something we’d look to bring to Australia in the near future.”

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Broker business When discussion focuses on Zurich’s relationship with intermediaries, Nanra stresses that the company’s commitment to brokers is core to its business.

“We’ve reiterated that over the last number of years,” he says.

Nanra says Zurich is looking to strengthen its commitment to brokers through the introduction of a number of programs, including one specific initiative that takes the place of its recently retired Zenith program.

“We’ve launched a program called 1872, and that’s really designed to ensure our commitment to our broker partners but also to make sure that we understood which of the brokers had the business that we saw was Zurich’s strength,” he says.

“As part of our transformation, we were very clear around our appetite, and by going to market and saying that we’re only going to play in certain areas and these are the strengths we saw in the market, we’ve used 1872 to really focus that go-to-market proposition so that brokers are very clear when we come to them; they know our appetite.”

In November, Zurich launched its NextGen Leadership Academy, seeking to nurture the next generation of leaders among the insurer’s key broker partners. Participants undertake learning models and presentations on a range of subjects – including risk strategy, claims, building effective teams, and business decision-making – and the highlight of the program is an international experience.

“We’re talking to our broking partners … [about] some of their up-and-coming stars and giving them an opportunity to see Zurich on a global basis, with the opportunity to even go to Zurich and spend a few days meeting our senior executives. But also [they’re] getting to understand Zurich on a global platform and bringing that back to Australia to see where opportunities exist that they may see, from their perspective, that we’re not tapping into.”

Last year, Zurich took the industry by surprise when it entered the travel insurance

space by acquiring Cover-More.

“It made the group one of the leading travel insurers globally,” Nanra says.

“It also provided Zurich an opportunity in Australia to look at a separate revenue stream, and it complements what we do in terms of our customer-centricity, but it’s unique enough that it doesn’t disrupt our commitment to our brokers … The feedback we got from a number of brokers was, ‘It’s good to see Zurich expanding’. But our commitment to them was never going to be any less than it was before Cover-More.”

ZURICH INSURANCE GROUP BY THE NUMBERS

1872 The year the group was founded as a marine reinsurer in Zurich, Switzerland

Sticking to the strategy When it comes to the insurer’s Australian focus over the next year, Nanra mentions growth.

“The first part of [our strategy] took us from when I took over at the end of 2015 to the end of 2016 [and] was about stabilisation,” he says. “The second part of that strategy, which is really 2017/18, is around growth, but obviously profitable growth, and in the areas that we see are our distinct positions and in which the brokers also see us as a go-to-market in that particular line of business.”

Nanra adds that his team is keen to undertake considerable further work around the customer.

“We work very closely with our brokers now about understanding the customers’ needs. Too often we don’t listen to what the customer needs are and we try to tell them what we think they need,” he says.

“We have a very clear strategy; we’re sticking to that strategy; we’re executing … We have a clear engagement process now set up with our key stakeholders – that is, the market, our customers and, more importantly, our staff.

I think now all three understand where we’re heading, and therefore our decision-making process is a lot easier.”

Nanra is excited about times to come.

“I’m looking forward to 2018. We are seeing the market start to harden, and I think Zurich is well set up to take advantage of the market as it starts to stabilise.”

1961 The year the group began operating in Australia, after acquiring Commonwealth General Assurance (CGA) Corporation Ltd

54,000 The approximate number of Zurich employees worldwide

210 The approximate number of countries and territories to which the group provides products and services

US$33.1BN For the year ending 31 December 2016, the group’s global general insurance business reported US$33.1bn (A$41.28bn) in gross written premium and policy fees

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31/01/2018 11:17:18 AM

SPECIAL REPORT

2018 HOT LIST

HOT

LIST

Recognising the influencers and innovators in general insurance who are preparing for the industry of tomorrow PAT REGAN Group CEO QBE

After five years leading QBE, John Neal recently stepped down and was replaced

by Pat Regan. Regan joined QBE in June 2014, having previously been Londonbased CFO of Aviva. More recently, he was CEO of QBE’s Australian and New Zealand Operations (ANZO), having replaced Tim Plant in that role in August 2016. Last September, when Regan’s appointment as group CEO was announced, Marty Becker, QBE’s group chairman, said Regan’s turnaround of ANZO highlighted his operational skills and business acumen.

Speaking at an event at last year’s Dive In Festival in Sydney, Regan talked

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about the insurer’s commitment to creating and maintaining a team and culture that is rich in diversity and practising inclusion.

There’s also interesting movement on foot in QBE Ventures, the group’s venture capital arm. The fact that funds had been set aside for insurtech investments by the group was well publicised last year.

In late October, QBE Ventures announced a partnership with RiskGenius, a machine learning platform for analysing policy wordings; and then, in December, its partnership with start-up Cytora was announced. What further insurtech partnerships may be on the cards for QBE, and how will its staff, broker partners and insureds benefit from the technology it will ultimately be able to deploy as a result?

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31/01/2018 12:07:22 PM

HOT LIST 2018

WELCOME TO the fifth annual Insurance Business Hot List. The industry continues to grapple with the challenge of preparing itself to meet the needs of tomorrow’s customers. The question remains as to what precise action that will require.

Who will rise to the challenge? And who is already working hard to ensure their organisation won’t be left behind in a fastchanging world?

The 2018 Hot List profiles 40 individuals likely to play a crucial role in helping to define the industry of the future. Some of those who appear on the following pages are familiar insurance leaders, while others are names that fewer may recognise.

It continues to be a difficult task compiling the Hot List and, as always, some may vehemently disagree with choices made. By no means does this purport to be a definitive and exhaustive list of the industry players making an impact, but rather to put a spotlight on several individuals who will warrant our closer attention in times to come. Feel free to comment at www.insurancebusinessonline.com.au.

MALCOLM TURNBULL Prime Minister of Australia

A royal commission into Australia’s banks and the broader financial services sector has been a possibility for some time. The Federal Opposition has been calling for a royal commission since early 2016, and, more recently, Liberal National Party Senator Barry O’Sullivan worked with senate colleagues on efforts to pass legislation to establish a parliamentary commission of inquiry into the banks and financial services industry.

Initially, the Turnbull Government strongly opposed both a royal commission and a parliamentary commission of

RAJBIR NANRA CEO general insurance, Australia and New Zealand ZURICH

Almost two and a half years ago, Raj Nanra became CEO of Zurich’s general insurance division. He continues to oversee the execution of a five-year strategy that was set soon after his arrival and has so far included a restructure, a rebuild of the executive leadership team, work to increase the transparency of the claims process, and exiting certain lines of business.

But Nanra is looking forward to times ahead, with Zurich now focused on profitable growth and playing to its strengths in the market. One initiative launched last November, the NextGen Leadership Academy, seeks to foster the next generation of top talent working for its key broker partners.

Last year also saw Nanra join Lloyd’s local leader Chris Mackinnon in becoming one of the latest appointments to the ICA board, meaning he is now able to contribute his vast insurance experience to the wider space.

inquiry, arguing that such an exercise was unnecessary. However, on 30 November, in what one commentator described as “an extraordinary backflip”, Turnbull announced that Cabinet had determined that “the only way we can give all Australians a greater degree of assurance about the financial system is through a royal commission into misconduct into the financial services industry.”

The Prime Minister said the royal commission would cover Australia’s banks, wealth managers, superannuation providers and insurance companies. As well as considering their conduct, he said it would also assess the regulators’ ability to identify and address misconduct. The commission will have a reporting date of 12 months, with a final report expected by 1 February 2019.

JULIE BATCH Chief customer officer IAG

Long-time insurance industry professional Julie Batch became IAG’s chief customer officer in December 2015. Heading up the customer labs division, Batch and her team work closely with Mark Milliner, CEO Australia, tasked with creating reimagined customer experiences.

IAG’s Sydney headquarters is a hive of activity on this front. The customer labs’ work to date has included a focus on the use of data; revising IAG’s approach to pricing; and the exploration of partnerships with organisations outside of the insurance space.

2017 was a big year for Batch and her team. Last July, IAG opened its new innovation incubator, Firemark Labs Sydney, partnering with several organisations that are working in the lab on a number of projects, all in the name of assisting in the evolution of IAG’s insurance operations. The opening of Firemark Labs Sydney (and a Firemark Lab in Singapore) followed IAG’s 2016 launch of Firemark Ventures, a $75m fund to invest in and partner with start-ups and established businesses that have the potential to disrupt the insurance value chain.

Batch and her team have some important work ahead, the results of which will be worth watching.

www.insurancebusinessonline.com.au

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31/01/2018 12:07:20 PM

SPECIAL REPORT

2018 HOT LIST

DAMIEN COATES CEO, Asia Pacific DUAL

Damien Coates founded DUAL Australia in 2004, joining the organisation from AIG, where he had responsibility for the insurance giant’s commercial management liability portfolio in the UK, Ireland and Africa. With Coates at the helm, DUAL has become the largest independent underwriting agency and Lloyd’s Coverholder in Australia.

Additionally, in 2011, Coates oversaw the establishment of an Auckland office, and DUAL New Zealand is today the country’s largest underwriting agency, as well as one of its top five liability providers. In 2011, Coates also agreed to take on the role of DUAL’s global CEO. He spent two years heading up the global business before returning to the region full-time to focus on the Asia-Pacific. Under his leadership, DUAL continues to grow across Asia-Pac. Since Insurance Business launched its annual Brokers on Underwriting Agencies Survey in 2015, DUAL Australia has been a standout performer. Among the accolades DUAL has received, brokers have voted the business the top agency for D&O liability insurance, management liability insurance and professional indemnity insurance in each of the three surveys – a testament to broker confidence in the DUAL team and the products they provide. Will the 2018 survey tell a similar story?

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DONNA WALKER Chief technical officer ALLIANZ AUSTRALIA

Donna Walker has long been a respected leader in insurance. Last March, while she was executive general manager of broker business at IAG, she was appointed to the ANZIIF board. She is a Fellow of the Institute of Actuaries

VIVEK BHATIA Incoming CEO, Australian and New Zealand Operations QBE

On 10 January, QBE announced the appointment of Vivek Bhatia as its next CEO, Australian and New Zealand Operations. Set to join QBE during the first quarter, he replaces Pat Regan, who was promoted to group CEO last September.

Bhatia has over 20 years’ experience in the insurance and management consulting

of Australia, as well as a graduate member of the Australian Institute of Company Directors.

In October, it was announced that Walker would be joining Allianz Australia as chief technical officer, as part of the insurer’s “renewed focus on customers”.

That appointment became effective on 5 December.

Described as “a passionate champion of diversity and inclusion”, Walker comes to her new role with more than 18 years’ experience across insurance, including in claims, underwriting and pricing, reinsurance, and actuarial services.

In a statement, Allianz Australia CEO Richard Feledy spoke about Walker’s focus in her new role.

“Donna will be key to looking more broadly at our business and driving innovation across our technical capabilities,” Feledy said. “Her deep commercial knowledge will make a strong contribution to our product and service models, while helping us drive our renewed focus on customers.”

sectors and last year was named Insurance Leader of the Year at the ANZIIF Australian Insurance Industry Awards. He joins QBE from icare, where he played an integral role in its formation in 2014 and became its inaugural CEO and managing director. Before arriving at icare, Bhatia co-led the Asia Pacific Restructuring and Transformation practice at McKinsey & Company and, prior to that, was CEO of Wesfarmers Insurance in Australia, tasked with leading the business through a significant transformation.

In announcing Bhatia’s departure, icare chairman Michael Carapiet described him as having been “an outstanding leader” who had led the achievement of significant improvements to all of the NSW insurance schemes administered by icare. Meanwhile, in a statement welcoming Bhatia to QBE, Regan said the new Australian and New Zealand chief was “well credentialled to leverage the strong platform in the Australia and New Zealand business”.

www.insurancebusinessonline.com.au

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31/01/2018 12:07:23 PM

HOT LIST 2018

JOHN NAGLE Interim managing director and CEO ICARE

icare is the NSW government’s insurance and care provider and one of the largest insurance providers in Australia. Its workers’ insurance scheme provides coverage to 3.4 million employees, road users, builders and homeowners, and 296,000 businesses. icare is the single largest workers’ compensation insurer in the state, with a 70% market share.

John Nagle has spent over four decades in the industry. He has held a number of significant senior leadership roles, including

as chief executive of Lumley Insurance, executive general manager for corporate and specialty insurance at Suncorp, and COO – retail at Vero.

Recently, Nagle and icare have been preparing for the rollout of a new claims service model, which launched on 1 January. The project has been undertaken based on feedback from customers and industry stakeholders, and aims to provide simpler and more transparent and person-centric claims management. Additionally, Nagle told Insurance Business last year that the insurer was keen to work with brokers to provide the necessary support to its clients to prevent injuries altogether – an opportunity for brokers to add value to their services.

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SPECIAL REPORT

2018 HOT LIST RICHARD ENTHOVEN CEO THE HOLLARD INSURANCE COMPANY

The Hollard Insurance Company made insurance headlines several times in 2017.

In August, Hollard announced it would acquire Calibre Insurance from Munich Holdings of Australasia. At the time, Richard Enthoven described the transaction as supporting Hollard’s “strategic aim of building a meaningful presence in the SME insurance market” and complementing its “growing commercial portfolio in Australia and New Zealand”.

Last year also saw Hollard acquire the portfolio of Progressive Direct Insurance Company, the Australian subsidiary

JEFF BEZOS Founder and CEO AMAZON

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He’s been described as a “visionary leader”

by Fortune.com. In 1994, Jeff Bezos left his job as senior VP of a Wall Street investment firm and set up Amazon.com in the garage of his Seattle home. Launched the following year, Amazon.com is today the world’s largest online shopping retailer and, in addition to its US site, runs region-specific online stores servicing many international markets, including the UK, France, Canada, Germany, Italy, Spain, and, most recently, Australia.

Bezos is now the world’s richest man; in January, it was said his net worth had reached US$105.1bn (A$131.27bn).

Late last year, it was reported that Amazon was recruiting insurance professionals in London as part of an effort to disrupt the insurance markets of a number of countries across Europe. More recently, the co-founder of P2P insurer Lemonade, Shai Wininger, said in a Facebook post he had learned that Amazon was actively trying to recruit Lemonade’s staff.

So, how significantly will Amazon ultimately impact the major insurance markets of the world? How worried should the incumbents be? And while no mention of Australia has yet been made, are we nevertheless in Amazon’s sights?

of American giant The Progressive Corporation. And on top of that, consumer brand Kogan.com signed an agreement with Hollard for an initial period of three years, to offer home, contents, landlord, car and travel insurance under the Kogan Insurance brand, with the products to be underwritten by Hollard.

Not only is Enthoven Hollard’s chief, but he was also recently appointed president of the Insurance Council of Australia and chairman of its board. ICA CEO Rob Whelan described Enthoven at the time as a “highly respected business leader”, adding that “his perspective on how the insurance industry should respond to the challenges posed by the rapidly changing social, economic and political landscape” would be “invaluable”.

DANIEL FOGARTY CEO EVARI

Daniel Fogarty is an industry veteran who recently ventured into insurtech. His banking and insurance experience spans over three decades, including three years as CEO of Zurich’s general insurance business in Australia and New Zealand. He is also a member of the ANZIIF board.

In 2017, together with two co-founders from the tech world, Fogarty established Evari, a cloud-based insurance platform said to be the first of its kind in the world, offering fully digital, tailored insurance solutions to the small business sector.

When Evari launched last September, Fogarty said, “We are living in a digital economy and there is a significant opportunity within the sector to transform how customers interact with their insurance providers. Business customers should have the right insurance at all times, and cloud technology is the key to this.”

Evari is looking to create waves with its new offering and should be a fascinating start-up to monitor in 2018.

www.insurancebusinessonline.com.au

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HOT LIST 2018

CHRIS COLAHAN President, Australasia

GARY DRANSFIELD

BERKSHIRE HATHAWAY SPECIALTY INSURANCE

CEO Insurance

April will mark three years since Berkshire Hathaway Specialty Insurance opened for business in Australia. Today, it has three offices on Australia’s east coast, a New Zealand office in Auckland, and its ANZ team of more than 80 continues to grow.

BHSI’s strategy since opening its doors has seen it focus on longer-term opportunities. In the words of Susan Donaldson, head of claims in Australasia, who spoke to Insurance Business last year, “BHSI was given the task globally of setting the gold standard in a general insurance company and taking as long as we needed to do that”.

Since day one, BHSI’s Australasian operations have been led by Chris Colahan. Before BHSI, he was regional chief executive for RSA Insurance in Asia, heading up its operations in China, Hong Kong, Singapore, its regional specialty business, and joint ventures in India and Thailand.

In 2018, Colahan and his BHSI team will remain fixed on their focus of building a forever business in both Australia and New Zealand.

Last October, Suncorp managing director and CEO Michael Cameron unveiled a streamlined senior leadership team, structured to fast-track delivery of

SUNCORP GROUP

LAMBROS LAMBROU CEO AON RISK SOLUTIONS AUSTRALIA

Speaking to Insurance Business late last year, Lambros Lambrou described 2017 as having been a “very busy but a very successful” year for Aon Risk Solutions Australia. In fact, it marked the organisation’s fourth consecutive year of “strong improved performance with improved organic revenue growth, higher client numbers [and] higher client retention”.

This year, the business has launched a new three-year plan, working to further increase its relevance to clients. Aon will be investing in its people, improving its talent base and strengthening the diversity of that talent base. In terms of mergers and acquisitions, Lambrou

the group’s well-publicised ‘marketplace strategy’. A key change announced at the time was the appointment of Gary Dransfield as CEO insurance, replacing the outgoing Anthony Day. Previously the group’s CEO customer platforms, Dransfield was described in a company statement as “well placed to maintain momentum, and drive growth and profitability”. He joined the Suncorp Group in August 2009 and, prior to that, amassed 25 years’ experience in the retail financial services industry, undertaking roles in operations, strategy and marketing at companies that included St. George Bank, AMP and IAG. Dransfield is said to have played an integral role in the successful conversion of St. George from a building society to a bank. He also led the IT team at IAG during the demutualisation of NRMA. Dransfield now takes on the challenge of leading Australia’s second-largest general insurer by market share.

Additionally, he recently became deputy president of the Insurance Council of Australia.

told Insurance Business: “We have a very strong pipeline; we have a strong appetite to invest in adjacent capabilities and core capabilities to help our business grow inorganically, and we see lots of opportunity in Australia and the broader specific region to do that.”

Lambrou believes there is a lot for the industry to feel positive about in times ahead, but also that greater investment is needed in the way the industry collaborates in order to drive better innovations for clients, in terms of both their operations and insurance solutions.

www.insurancebusinessonline.com.au

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SPECIAL REPORT

2018 HOT LIST SARAH LYONS Chief executive, Australia GALLAGHER

It was announced last May that Andrew Godden would leave his role as chief executive of Gallagher’s local operations (then Arthur J. Gallagher) to become BMS Group’s CEO of Australia. Not long after the announcement, in July, Sarah Lyons was appointed to the top job at Gallagher.

Lyons’ career in insurance has encompassed more than two decades, beginning in the UK, and she has accumulated experience in a variety of roles. She joined Gallagher in 2014 as COO when OAMPS Insurance Brokers (where she was head of commercial broking) was acquired by the international firm. Immediately before assuming her current role, Lyons was Gallagher’s managing director of commercial broking.

In a statement announcing her appointment, Lyons said, “We [Gallagher] are at a positive point in our journey and

ALLAN MANNING Managing director LMI GROUP

It’s difficult, if not impossible, to think of an industry figure who is as academically and professionally qualified on the subject of insurance as Allan Manning. The LMI Group founder and managing director, and author of nine books on insurance, is one

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BOBBY LEHANE CEO CHU UNDERWRITING AGENCIES

our ambition remains to become Australia’s largest and most admired broker.”

Lyons is the only female CEO of a major international broker in Australia and is responsible for a national team of 900 staff and a business placing almost $1bn in GWP. of the industry’s most respected voices. He continues sharing expert insights via his own blog (www.allanmanning.com). On that site, Manning regularly writes on topics ranging from cyber risk to product recalls, and shares his responses to government activity that has implications for the sector.

Manning is an adjunct professor at Victoria University in the faculty of Business and Law, and course director in the Master of Insurance Law and Practice program. He has received impressive recognition for his work in insurance, including the 2012 Lifetime Achievement Award at the Australian Insurance Industry Awards, and in the same year a nomination for Australian of the Year.

Unsurprisingly, Manning remains a fixture on the Hot List, given the extent of his ongoing commitment to insurance.

Fortunately, the wider community also benefits from his insights, as Manning regularly speaks at conferences both in and outside of the insurance space.

Bobby Lehane became CEO of CHU Underwriting Agencies, a subsidiary of Steadfast Group, in April 2015. Previously, he spent seven years at Zurich, including time as its executive general manager of the SME segment and then its billion-dollar commercial insurance segment. Lehane was described at the time by Steadfast managing director and CEO Robert Kelly as having “an impressive track record of building high-performance teams, leading transformation and change, leveraging technology and delivering results”.

CHU is Australia’s largest strata insurance specialist and was named top strata insurance agency by readers in the Insurance Business Brokers on Underwriting Agencies surveys in both 2016 and 2017 (in fact, since the introduction of the ‘strata’ category). In November 2016, it launched CHUiSAVER, its own digital underwriting agency, representing the business’s endeavour to pre-empt digital disruption and deliver strata products to the market both directly and through intermediary channels. This will allow CHU to innovate and learn in the CHUiSAVER business and then apply its successes to its premium CHU brand.

www.insurancebusinessonline.com.au

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HOT LIST 2018

RICHARD FELEDY Managing director and CEO ALLIANZ AUSTRALIA

Last May, it was announced that Niran Peiris would be leaving his role as CEO of Allianz Australia to join Allianz SE’s board of management, effective 1 January 2018. It was also announced that deputy managing director Richard Feledy would succeed Peiris in the top job. At the time, Allianz Australia’s chairman, John Curtis, described Feledy as bringing “a broad and deep knowledge of insurance to the role”, and said he was

“the right person to lead Allianz into the future”.

Speaking to Insurance Business at the end of last year, Feledy said he was looking forward to continuing to deliver on the key pillars of Allianz Australia’s strategy in 2018, including enhancing its customer focus. He said he believed it was critical to almost replicate work that had been done in the online banking industry, in order to improve the experience delivered to insurance customers.

Feledy said the business, which is today Australia’s fourthlargest insurance company, intended to further enhance its SME platform, Allianz Alive, and that he was looking forward to an “exciting year ahead”.

www.insurancebusinessonline.com.au

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31/01/2018 12:03:06 PM

SPECIAL REPORT

2018 HOT LIST

MICHAEL GOTTLIEB Managing director BIZCOVER

Michael Gottlieb leads BizCover, which took out top honours once again in 2017 in the Insurance Business Top 10 Brokerages report.

Gottlieb says BizCover caters to “the growing number of SMEs that want to self-serve their insurance needs”, specifically by looking after SMEs with “relatively standard insurance needs and a minimum of tailoring”. He describes

PETER HARMER Managing director and CEO IAG

Peter Harmer took the top job at IAG just over two years ago and is one of the industry’s highest-profile and most influential leaders.

In its FY17 results, IAG announced a 48.6% boost to its net profit after tax, with GWP growing 3.9% to $11.8bn. In July, it launched an innovation incubator,

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BizCover as being genuinely obsessed with providing the best possible service to clients, as well as continuously rethinking and re-evaluating how insurance should be distributed.

And it’s not only Insurance Business that has acknowledged BizCover’s efforts.

At the end of last year, the company won the Small Business Award for Business Excellence at the Australian Multicultural Marketing Awards, and was also ranked in the Deloitte Technology Fast 50, a list of the top 50 fastest-growing technology firms based on percentage revenue growth over three years.

You can expect more innovation ahead from BizCover. Gottlieb has said that in 2018 it will be extending its whitelabel offerings and “nurturing mutually beneficial relationships across a variety of industries”. He has also said that BizCover is interested in enhancing its analytics to further understand customer behaviour patterns.

Firemark Labs Sydney, representing a significant milestone in its efforts to create new, first-class customer experiences.

Harmer told attendees at ANZIIF’s recent annual general insurance breakfast that the industry’s relevance to customers in five years’ time would require a move away from a focus on products to, instead, ensuring customers and their experiences were at the centre of what insurance companies do.

Alongside Bendigo and Adelaide Bank, IAG was named one of 50 companies changing the world in the third annual Fortune Change the World List, which recognises organisations that make an important social or environmental impact through their profitmaking strategy and operations.

Of course, there are also challenges.

Harmer announced at last year’s AGM that IAG’s Asian growth ambitions were “on hold” and it was “unlikely [IAG] will make further investments in Asia in the short term”.

Harmer also spoke of the challenge facing insurers in getting in front of the curve with respect to climate change.

GLADYS BEREJIKLIAN NSW Premier

One of the biggest industry stories of 2017 was the NSW Government’s decision to defer the introduction of the Fire and Emergency Services Levy (FESL) on properties. The levy was set to replace funding of fire and emergency services through an ESL on insurance policies.

In May, Premier Gladys Berejiklian and Treasurer Dominic Perrottet said the decision to defer the rollout of the FESL had been made to ensure property owners, particularly small to medium businesses, didn’t face “an unreasonable burden in their contribution to the state’s fire and emergency services”.

Insurance Council of Australia spokesperson Campbell Fuller said at the time that insurers were “shocked and disappointed” by the decision, and described it as “a blow to NSW property owners, households, businesses and the broader state economy”. He said the ESL would “continue to deter the community from taking out the insurance we all need.”

A NSW parliamentary inquiry was established last June to examine the policy and financial implications for all stakeholders of not proceeding to implement the funding model, as well as alternative models for ensuring fire and emergency services were “fully funded in a fair and equitable manner”. Robert Borsak, member of the NSW Legislative Council, is chairing that committee.

What recommendations will ultimately be made, and how will the Berejiklian Government respond?

www.insurancebusinessonline.com.au

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31/01/2018 12:07:45 PM

HOT LIST 2018

JARROD HILL Country president, Australia and New Zealand CHUBB

Late last year, Chubb announced the appointment of Jarrod Hill as country president of Australia and New Zealand, effective 1 February.

Hill joined the legacy ACE business in 1991 as a property underwriter in Australia, subsequently undertaking a number of senior underwriting and general management roles for ACE in Hong Kong, New Zealand, Australia and Singapore. He succeeds John French as ANZ country president following a tenure as executive vice president, head of property, for Chubb Overseas General.

Prior to that, Hill spent six years as regional head of property and casualty for Chubb in Asia-Pacific.

In a statement announcing the new appointments, Paul McNamee, Chubb’s regional president for Asia-Pacific, pointed to Hill’s global leadership experience and demonstrated success in the region as indicia of his readiness to take on the country president role.

Chubb is today the world’s largest publicly traded property and casualty insurance company; locally, it’s Australia’s sixth-largest general insurer. In recent months, the business’s activities have included establishing a new division in Asia-Pacific focused entirely on the risk management needs of SMEs. What will Hill and his ANZ team have in store for brokers and clients in 2018?

DAVID KEARNEY Chief executive partner WOTTON + KEARNEY

Last year, Wotton + Kearney celebrated 15 years as a law firm focused solely on providing insurance-related legal services. Under the leadership of co-founder and chief executive partner David Kearney, the business has grown

NICK HARRIS CEO JLT AUSTRALIA AND NEW ZEALAND

Having taken the lead as JLT’s new CEO in January, Nick Harris brings to the role 20 years of experience in the industry, in both insurance and people risk. JLT says Harris’s passion, strong vision and ability to bring people together have placed the company in a strong position for the year

from a one-office operation with six lawyers to a four-office firm with a team comprising more than 120 lawyers.

Kearney has expertise in most classes of commercial insurance and was recognised as the only ‘Eminent Practitioner’ in insurance law in the Chambers Asia-Pacific guide in both 2016 and 2017.

In recent times, Kearney was crucial to the launch of Legalign Global, an innovative legal services business model that saw four leading regional insurance law firms from across the world (including W+K) form an alliance that will work to ensure that the legal needs of the growing multinational insurance market are met.

Kearney has told Insurance Business that, in 2018, W+K will increase its focus on thought leadership, aiming to share with the insurance market, including brokers, trends witnessed at the claims resolution coalface and how those trends will impact on future exposures.

ahead. The former CEO of JLT’s Specialty business, Harris has led the organisation to great success, with the international broker now representing 13 of the top 50 companies on the Australian Stock Exchange.

Prior to his most recent role, Harris was chairman of JLT’s People Risk division.

In 2015, His executive team successfully acquired Recovre, Australia’s leading provider of customised workplace health, safety, rehabilitation and training solutions.

Harris aims to enhance JLT’s core broker proposition through industryleading innovative solutions that focus on superior competition, client outcomes and bespoke offerings.

“We are unapologetically specialists. We don’t want to be the biggest broking firm in Australia, rather the best in the areas we choose to be – this will be our continued focus,” Harris said.

Watch Harris and his team at JLT as they work to further build the world-renowned broking business in Australia this year and beyond.

www.insurancebusinessonline.com.au

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SPECIAL REPORT

2018 HOT LIST

MARK MILLINER

PIP MARLOW

CEO Australia

CEO customer marketplace

IAG

SUNCORP GROUP

Almost two years ago, Mark Milliner joined IAG as COO. He arrived from the Suncorp Group, where he was CEO personal insurance, leading 11 consumer brands that included AAMI, GIO and Suncorp Insurance. Prior to that, he was group executive, commercial insurance, and led all the group’s commercial insurance businesses in Australia, including the Suncorp, GIO and Vero brands.

A reshuffle of IAG’s Australian business last July resulted in the creation of a single Australian division combining its consumer, business, operations and satellite divisions. Milliner was named CEO of the new division. In a statement, IAG announced that the Australia division was designed to help simplify its operating model and centralised accountability for the customer, product, distribution and operations functions for its Australian brands. Peter Harmer, IAG’s managing director and CEO, said this would allow the organisation to “respond more effectively to rapidly changing customer needs and expectations”.

Since 2009, Milliner has been a director of the board of the Insurance Council of Australia, and is committed to seeing greater private and public sector investment into insurance affordability and disaster resilience.

Pip Marlow arrived at Suncorp in December 2016 as the banking and insurance giant’s CEO, strategic innovation.

She came into the role with more than two decades of experience in the IT industry.

One of Marlow’s first jobs in IT saw her tasked with building Samsung Information

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ROBERT KELLY Managing director and CEO STEADFAST

In 1996, Robert Kelly co-founded Steadfast. Today the organisation, with headquarters in Sydney, has the largest general insurance broker network in the nation.

Late last year, Steadfast acquired the Whitbread Insurance Group, a transaction that added an SME-focused general insurance broker to its businesses, as well as Axis Underwriting, which became the 25th member of the Steadfast Underwriting Agencies

Systems’ semi-conductor distribution business. She joined Microsoft in 1995, and her time with the organisation culminated in a six-year tenure as managing director of the Australian business.

Marlow is described as a highly recognised leader in her field, with extensive international experience and a strong track record of delivery.

In October 2017, it was announced that Suncorp’s customer platforms, customer experience and strategic innovation functions had been combined into a single function, entitled ‘customer marketplace’. Marlow was appointed CEO of the new function, bringing together the organisation’s customerfacing and innovation teams with a view to enabling faster execution of its marketplace strategy.

In this position, Marlow has oversight of Suncorp’s strategic role in market disruption, as well as identifying and establishing new external marketplace partnerships.

portfolio (the largest underwriting agency group in Australasia). Earlier in the year, Steadfast had inked a major international deal, acquiring a non-controlling stake in the Hamburg and Chicago-based unisonBrokers, expanding its international footprint into 130 countries and 200 broking operations. The group has made close to 100 acquisitions since its stock market debut in 2013, and there could be more ahead, as Kelly tells Insurance Business that 2018 is “potentially an active year for us in acquisitions”.

With more than 45 years’ industry experience, Kelly remains one of insurance’s most respected leaders. This year, the business will continue rolling out Steadfast Direct, which Kelly recently told Insurance Business was gaining dramatically each month. On the international front, Kelly expects Steadfast’s expansion into Singapore to reach fruition in FY18.

No doubt there’ll be plenty to keep up with when it comes to Steadfast in 2018.

www.insurancebusinessonline.com.au

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HOT LIST 2018

DANIEL SCHREIBER CEO LEMONADE

Well before its launch in New York State in September 2016, Lemonade had captured the attention of senior insurance leaders around the world.

Founded by Daniel Schreiber and Shai Wininger and billed as the world’s first peer-to-peer insurance company, Lemonade is a property and casualty insurer powered by artificial intelligence and behavioural economics that digitises the entire insurance process. Offering renters, condo and homeowners insurance, its goal is for most simple property claims to be paid almost instantly. Under its Giveback program, it donates what would constitute its profits to charitable causes chosen by its members. Lemonade is available as an iOS and Android app as

KELLY O’DWYER Federal Minister for Revenue and Financial Services / Assistant Treasurer

In 2018, eyes will turn to Assistant Treasurer Kelly O’Dwyer and the Turnbull Government when they respond to the final report of the ASIC Enforcement Review Taskforce. That taskforce, announced in late 2016, was charged with assessing the adequacy of ASIC’s enforcement regime, and has since

well as through its website.

Lemonade has gone live in eight US states (it is licensed in 23, so that figure will rise again soon). The insurer reported that, as of 14 November last year, it had sold 70,000 policies in 2017, and 25% of those sales had occurred within the previous 30 days.

In terms of its members, it says 75% are under 35 years old, while 90% are new to insurance.

And there’s much more to come.

Lemonade announced in December that it had raised US$120m in an investment round led by Japan’s SoftBank Group Corp. The insurer says those funds will be used to help Lemonade expand

released eight position papers. Those papers canvassed numerous issues, including the strengthening of penalties for corporate and financial sector misconduct. In its last paper in November, the taskforce proposed introducing a directions power that would allow ASIC to take action to intervene and direct licensees for the purpose of preventing harm before it occurs.

Another focus for the Treasury right now is the next phase of the ASIC industry funding model, described as the introduction of ASIC fees-for-service and involving the regulator recovering costs directly attributable to a single, identifiable entity. It will also closely follow the $7.9m ACCC inquiry designed to provide an in-depth understanding of northern Australia’s insurance market.

On top of all that, there’s now the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. What will come out of the inquiry pertaining to general insurance?

ANGIE ZISSIS Managing director SURA

It’s approaching two years since industry veteran Angie Zissis (previously of ATC Insurance Solutions) was appointed managing director of SURA, a group of underwriting agencies that is becoming an increasingly important revenue stream for the AUB Group, contributing 18% of its pre-tax profit in FY2017.

SURA is serious about underwriting specialty industry risks and sticking around in the market for the long term.

Last year, the company grew again, with the addition of SURA Australian Bus and Coach (formerly ABC Underwriting) to the SURA-branded family of businesses.

SURA also expanded its national reach by opening a new Adelaide office, located in McLaren Vale, to focus (initially) on underwriting engineering, construction, and machinery breakdown risk.

SURA partnered in 2017 with Liberty International Underwriters and insurance law firm Wotton + Kearney to present the Dive In Festival’s first Melbourne event, delving into the ongoing issue of the impact of unconscious bias in the workplace.

Zissis has been quoted as saying that enhanced diversity and inclusion in Australia’s insurance industry “will position us all for a robust and resilient business future, by encouraging insight and contribution from all our great people”.

www.insurancebusinessonline.com.au

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SPECIAL REPORT

2018 HOT LIST ROB WHELAN Executive director and CEO INSURANCE COUNCIL OF AUSTRALIA

Rob Whelan leads the Insurance Council of Australia, the representative body of Australia’s general insurance industry.

Last year, Whelan strongly reaffirmed the ICA’s stance as to the necessity for greater government investment in nation-building mitigation and community resilience projects.

“Investing at least $200m a year in mitigation and resilience should be treated as nation-building that protects vulnerable communities for generations,” he said in an August statement, responding to a report into the general insurance industry by the Senate Standing Committee on Economics.

He’s also continued to push back on any suggestion that a government-run aggregator should be introduced.

Right now, a key focus of the ICA is a review of the General Insurance Code of Practice, which it says is an effort to ensure the Code remains the benchmark for industry self-regulation in Australia.

JAMES SMORTHWAITE Australasian president YOUNG INSURANCE PROFESSIONALS AUSTRALIA AND NEW ZEALAND

Making insurance a career of choice for jobseekers is an issue continuing to confront the industry in Australia and New Zealand. One not-for-profit organisation that is not only keen to see jobseekers opt for insurance but

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In a keynote address, Whelan told attendees at the Australian Insurance Summit in October that the GI Code of Practice had never been more important in restoring community trust in the industry.

And then there’s the Turnbull Government’s Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, which Whelan has said the ICA hopes “will end political uncertainty and improve public confidence in the insurance sector”.

Regarding the commission, he said the ICA would also provide input to the government. also devotes considerable time to helping young professionals find rewarding careers in the industry is Young Insurance Professionals (YIPs) Australia and New Zealand.

Founded in 2011, YIPs today has over 8,000 members across ANZ. Among its key functions, the organisation runs educational and networking events across both countries, which provide a number of opportunities for its members to connect.

James Smorthwaite, a Perth-based account executive in JLT’s financial lines team, was last year voted Australasian president of YIPs. He was described at the time by outgoing president Andrew Shepherd as being passionate about the vision for the future direction of the organisation. Under Smorthwaite’s leadership, YIPs will continue to work towards the organisation becoming the premier advocate for young professionals in insurance.

CHRIS MACKINNON General representative in Australia LLOYD’S

For three years, Chris Mackinnon has led Lloyd’s fourth-largest market in the world – and he’s excited about 2018.

Speaking to Insurance Business recently, he said a number of projects underway within Lloyd’s globally could provide its local arm with the opportunity to pilot some new strategies and ideas. Some of Lloyd’s current key focuses include data handling, how to facilitate transactional business into London more effectively, and enhancement of the claims settlement process.

On the diversity and inclusion front, Lloyd’s plans are ongoing. The 2017 Australian Dive In Festival received strongly positive feedback from participants, with 1,400 people attending 10 events across three cities. The festival will return this year, with new events on the cards for Adelaide and Brisbane.

As well as the festival, Lloyd’s last year launched the inaugural Insurance Industry Diversity and Inclusion Survey.

Around 2,500 insurance professionals from 21 insurance companies took part, and the results have provided a clearer picture of the composition of the 60,000-strong Australian insurance industry. Its findings will be used to assist in determining the work ahead for the industry to make meaningful gains when it comes to D&I.

HOT LIST 2018

PRUE WILLSFORD CEO AUSTRALIAN AND NEW ZEALAND INSTITUTE OF INSURANCE AND FINANCE

Prue Willsford is CEO of the Asia-Pacific region’s leading education, training and professional development organisation for insurance and finance. In recent times, it seems ANZIIF has been busy forging stronger ties and creating new opportunities for insurance professionals across the region.

Last October, ANZIIF teamed up with the Association of Indonesian Qualified Insurance and Reinsurance Brokers – the only organisation providing education and certification to brokers and reinsurance professionals in Indonesia – to provides its graduates the opportunity to

apply for ANZIIF membership. In September, the organisation announced a partnership with A&I Member Services to provide its members with ANZIIF membership. And in July, ANZIIF partnered with the Federation of European Risk Management Associations to offer professional designation and ongoing professional education to risk professionals across Europe.

On top of the new partnerships, ANZIIF rolled out new training early last year designed to give brokers a greater understanding of the Insurance Brokers Code of Practice and its application to Australian businesses. And in March, its inaugural insurtech conference facilitated an industry conversation around the potential impact of insurtech on the insurance value chain.

So, what will Willsford and ANZIIF have on the cards for brokers and the wider insurance community in 2018?

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SPECIAL REPORT

2018 HOT LIST

LYNDON TURNER Director and CEO NM INSURANCE

INGA BEALE CEO

Lyndon Turner has amassed more than 20 years’ industry experience, including in claims, underwriting and broking as well as several senior management roles.

In December, Turner was re-elected chair of the Underwriting Agencies Council board, on which he’s occupied a seat since 2011. He is a strong advocate for underwriting agencies and the value they can add for insureds through coverage of complex risks, quick response times and speed to market. At its December AGM, Turner spoke about UAC’s achievements in recent times, which have included its nine underwriting expos across Australia and New Zealand in 2017; advocacy on members’ behalf, working closely with ASIC, APRA, the ICA and NIBA; and its affiliations with the UK Managing General Agents’ Association and the American Association of Managing General Agents.

Turner and his colleagues continue looking for opportunities to assist UAC in becoming the underwriting agency voice for Asia-Pac and enhancing the value of membership for its agencies, which have a combined annual GWP of approximately $3.5bn. At the AGM, he told the room: “In 2018 we will re-evaluate all programs and events to maximise the return on members’ funds and ensure a continued focus on the agency sector’s growth.”

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LLOYD’S

Now in her fifth year as CEO of the threecenturies-old specialist insurance market, Inga Beale is charged with readying Lloyd’s for the future. Today, the world-famous

ROSS HAYWARD Director PREMIUM FUNDING

Ross Hayward leads Australia’s largest privately owned premium funding company, which writes loans for more than 45,000 businesses each year through a network of more than 1,000 brokers.

In 2016, Premium Funding launched a Pay-By-The-Month (PBTM) technology

London market houses 84 syndicates and sees more than 200 brokers from around the world bringing business into its walls.

While market modernisation efforts remain a key focus for Beale and Lloyd’s, so too does attracting a workforce truly reflective of the markets in which it plays.

Beale is not only the first women to become CEO of Lloyd’s but is also one of the highest-profile executives from the LGBT community. It was under Beale’s leadership that Lloyd’s launched the Dive In Festival in London in 2015, an event celebrating diversity and inclusion in insurance. What began at its Lime Street headquarters over two years ago was last year a sizeable global event, involving over 7,000 members of the insurance community attending festival events in 32 cities in 17 countries.

Dive In is a serious endeavour to transform the make-up of the industry so that it’s no longer dominated by old white men. It’s an event that has become a reality because of the efforts of Beale and her team and will grow again in 2018.

offering, developed in partnership with Ebix and involving full automation of the premium funding contract process. One year on from its release, Hayward said brokers had been praising Premium Funding’s PBTM software for its ability to boost commissions and improve efficiency. At that time, the premium funder advised that more than 350,000 clients had been offered monthly payment options on their invoices, in transactions worth $1.1bn. Additionally, more than 250 brokers and ARs had adopted the product, with many doubling their premium funding commissions.

More recently, Hayward and Premium Funding launched InsurePitch, designed as a ‘think tank’ that provides brokers and the wider industry with a platform to fund and develop tech ideas to stave off the threat of insurtech and direct offerings. InsurePitch was developed by Premium Funding with support from Ausure, Insurance House Group, PSC Insurance, the Hollard Group, and Resilium Insurance Brokers.

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HOT LIST 2018

MELANIE SLACK CEO Australia and New Zealand SWISS RE CORPORATE SOLUTIONS

Melanie Slack was announced as the new CEO, Australia and New Zealand, of Swiss Re Corporate Solutions last June.

Before taking on this role, she was head of life and health products for Swiss Re Asia, a role that required Slack to manage a team working in eight locations across the Asia-Pacific. Originally from Canada, her impressive industry tenure has

MARK SEARLES Managing director and CEO AUB GROUP

Mark Searles has led the top 250 ASX-listed AUB Group since 2013. His decades of experience in senior insurance roles include time as chief commercial officer at CGU and chief marketing officer of Zurich Financial Services in the UK.

included a number of senior management positions in Asia, Europe and the US. At the time of her appointment as ANZ CEO, Slack was described by Swiss Re Corporate Solutions’ CEO Asia Pacific, Fred Kleiterp, as “a proven leader who has been instrumental in the growth of Swiss Re Group’s operations in Asia”.

There’s plenty of work ahead for Slack and her ANZ team. Speaking to Insurance Business late last year, she discussed the business’s launch of 11 policies across casualty and professional lines, as well as its work on maintaining strength on the claims front, and in the risk engineering space. Slack also highlighted the opportunities that exist for the business because of the protection gap in the mid-market space.

Developments from the Swiss Re Corporate Solutions team, as they work to become a growing force in Australia, should be interesting to follow this year and in the years to come.

Releasing its FY17 results last August, AUB Group announced a 7.5% increase in adjusted net profit after tax, with all operating areas of the business seeing growth. At the time, Searles said that, despite a flat market, “organic growth was the key driver of business performance”, and that “importantly, growth was not a result of premium increases”.

Searles is focusing on leading AUB Group to become the top provider of risk management and advice. The group continues to grow across Australia and New Zealand, with its latest acquisition (of New Zealand broking firm Lowe Schollum & Jones) announced in December.

At the Group’s AGM in November, the subject of the pace of innovation and technological change was addressed.

Searles told the room : “We firmly believe that by embracing new technologies and approaches we can support our partners and clients by reducing the friction involved in the risk management and insurance process.”

ROBIN JOHNSON Country head, Australia XL CATLIN

Robin Johnson has led XL Catlin’s Australian operations since July 2015.

Before taking on his current role, Johnson was country manager of XL Group in Singapore. Prior to that time, he spent a decade working for AIG; his most recent appointment there was as head of broker and client manager for AIG Singapore. His career in insurance has included senior roles in underwriting, distribution and management.

Speaking to Insurance Business in 2016, Johnson described XL Catlin as being large enough and having the balance sheet to be able to take on clients’ most complex risks, while also being small enough to be nimble and responsive, with short decision chains.

XL Catlin is a business to watch, not just at home but on the global front. Especially interesting is the work the global insurer and reinsurer is undertaking with autonomous vehicle software developer Oxbotica. It’s a partnership that will provide the insurer with better information as to how to address risks specific to insurance for autonomous vehicles, while enabling Oxbotica to understand the risks acceptable to underwriters and to accordingly design technology that can more easily be insured.

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31/01/2018 12:08:27 PM

FEATURES

BROKERAGE INSIGHT

Austbrokers Coast to Coast It began life as Tasman Insurance Brokers 35 years ago and has received some prestigious accolades in recent times. CEO Dale Hansen talks to Insurance Business about what makes the Queensland business different IN 2011, Dale Hansen became CEO of Austbrokers Coast to Coast (AC2C), one of the largest insurance brokers on the Gold Coast and winner of ANZIIF’s Small Broking Company of the Year award for both 2016 and 2017.

He talks about the types of business that AC2C writes.

“We’re large in transport; we do a lot in the hazardous goods space – manufacturing, carriage, [and] distribution,” he says. ‘“We have a lot of experience and proficiency in the not-for-profit space … We’re quite large in construction, and … we tend to specialise quite a lot in the financial lines space as well.”

On the state of today’s marketplace, Hansen says: “Everybody’s wanting to commoditise and get into the commoditised market. They’re asking for IT products to fundamentally do a lot of their underwriting for them.”

He says many brokers are going down that path themselves.

“Once we start commoditising our clients, we’re not really any different to a direct insurer. I don’t think that’s what clients are looking for; it’s not what our clients are looking for,” Hansen says.

“There is still very much a role and a place for good old-fashioned customer service and relationships, and it’s very hard to have a

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relationship with somebody when you’re only dealing in the IT space.

“That’s actually why I believe a lot of underwriting agencies are finding their niche – they’re offering, in many cases, a different type of solution. I often would have more one-on-one interaction with them than I would have with some of the major insurers.”

Hansen describes AC2C as both customercentric and risk management focused.

“We’re totally focused on the client and their needs, not on our commission,” he says.

“We spend a lot of time getting to know [a client’s] business and finding out what their appetite for risk is, because everyone’s appetite for risk is different … We’re trying to offer tailored solutions to a client’s individual risk appetite.”

Asked what he attributes the business’s recent external recognition to, Hansen cites AC2C’s value-added services.

“We have a professional company director within the business who’s an expert in compliance and corporate governance,” he says.

DALE HANSEN WEIGHS IN ON HOW A BROKER SUCCEEDS IN TODAY’S CLIMATE Understand the client’s business: “You really do need to understand all facets of your client’s business and appetite for risk.”

Talk to and visit clients regularly: “Their businesses are changing all the time.”

Educate clients on what brokers do: “You’d be surprised how many clients don’t understand what it is we do on a day-to-day basis and what our roles are. If they did … the broker fraternity would be seen in a much better light and our penetration would be considerably higher than it is.”

Tackle the ‘price versus advice’ issue head-on: “That’s a very easy conversation to have when your client is aware of all the things that you’re doing for them. That question, more often than not, tends to go away.”

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FAST FACTS

Year founded: The business was established as Tasman Insurance Brokers in 1982 Office location: Burleigh Heads, Queensland Number of employees: 23 FTE Leadership: Dale Hansen – CEO Awards received by AC2C: 2016 and 2017 ANZIIF Small Broking Company of the Year Awards received by Dale Hansen: 2016 NIBA Australian Broker of the Year; 2016 and 2017 Insurance Business Elite Broker

“Our clients are happy to go on a journey with us because we’re providing what they’re looking for” “Our claims manager is a solicitor, so we’ve got legally qualified staff on hand.

“We also have a heavy emphasis on asset management … so making sure that our clients have regular asset management programs, as far as maintenance and upgrades, and factoring that into their businesses so that they’re able to identify when all those things need to regularly take place.”

And it sounds as though clients are making good use of those services.

“Having legally qualified staff has significant benefits in the claim and risk management space, and a number of our clients have utilised our professional company director in the auditing accounting space but also to re-engineer their companies and to help them set up and manage boards and senior management groups,” he says.

“Having proficient, skilled staff in that space … has been a significant benefit to us, and it means that we’re able to provide a lot

of the skills and services that traditionally [have been offered by] a brokerage several times our size.”

Hansen emphasises the business’s hard work when it comes to client relationships.

“We’re not seeking to commoditise our business and do things more cost-effectively, necessarily. We understand that this way of doing business comes at a cost, but our clients are happy to go on a journey with us because we’re providing what they’re looking for.”

Looking ahead, Hansen says AC2C would like to acquire another brokerage and will continue focusing on training and upskilling its employees.

“We’re very proud to be the ANZIIF Small Brokerage of the Year, and we would like to three-peat,” he adds.

“We’re shooting for the top, with a longterm goal of not [just] being able to win Small Brokerage of the Year [but] to be in the medium brokerage category.”

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31/01/2018 10:39:42 AM

FEATURES

SECTOR FOCUS: AUTHORISED REPRESENTATIVES

Running the show Senior leaders of AR networks discuss what the AR path offers brokers today and the factors candidates should consider in selecting a network THERE’S NO denying the growing popularity of the AR model. Brokers are seizing the opportunity to run their own businesses, while leaving responsibilities associated with owning an Australian Financial Services Licence (AFSL) to their networks.

“The costs and resources required to maintain your licence are significant, and I suspect these costs will continue to grow as legislation evolves further over the next few years,” says Shaun Standfield, managing director of Insurance Advisernet (IA).

Tony Walker, CEO of PSC Connect, agrees that setting up a business with an AFSL can be costly.

“It may also require an additional administration resource to maintain the professional standards required particularly around compliance, accounting and auditing, IT, reporting, [and] insurance,” he says. “In my view, unless your annual income exceeds $2m, it is not worth it.”

Troy Brown, managing director of Ausure, says the cost of maintaining an AFSL can

THE BENEFITS OF BEING AN AR Tony Walker: “The key benefit of becoming an AR is the ability to run your own insurance broking business your way, focusing on the customer and sales, knowing that all the compliance, accounting, IT services, claims and other ongoing support services are provided and managed by the licensee.”

Shaun Standfield: “You get to build an asset for you and your family. IA doesn’t own clients; that’s our advisers’ role. We provide the ‘back office’ to enable advisers to spend time servicing and developing new clients.”

Richard Crawford: “I think the capacity to build flexibility into your life, to be selfmanaging, and to build a professional life that balances with your personal life is a real attribute of this role.”

Troy Brown: “You are a business owner, driving your own business and building an asset. You need to work within the framework and systems provided by your licensee but otherwise are free to operate your business as you wish.”

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vary greatly, with the cost of compliance being the largest unknown.

“An AFSL holder who has a strong compliance focus would be allocating significant financial and human resources to their compliance function and culture,” Brown says.

And Richard Crawford, Community Broker Network’s (CBN’s) general manager, distribution, talks about the time those responsibilities take away from other essential broking duties.

“What you do by putting that AFSL requirement into a business is you create complexity,” he says. “It’s time that you spend on something other than serving your clients and delivering advice, which is fundamentally what the business is there for.”

Right for the job?

So, what type of person is generally a suitable candidate to run an AR business?

“We find many brokers who want to establish their own broking business want to focus on their customers and don’t want to get caught up in meetings, strategy sessions and long work hours that don’t benefit them, their families or … the customer,” says Walker.

Speaking in reference to PSC Connect’s own model, he says an AR should be diploma-qualified and preferably have a minimum of five years’ broking experience across all product lines.

“We expect them to be sales-focused, energetic, maintain high professional standards and be prepared to overdeliver to their customers,” Walker says. “They must also have a sound business plan that will enable them to generate a reasonable level of income. Once we understand their business plans, we will work with each AR to help them achieve their goals.”

Brown says that given they will be running their own business, an AR is

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“The costs and resources required to maintain your [AFSL] are significant, and I suspect these costs will continue to grow as legislation evolves further” Shaun Standfield, Insurance Advisernet typically somewhat entrepreneurial.

“They need to have the mindset of a small business owner,” he says. “They need to have a solid plan for their business and where leads and opportunities will come from.”

Standfield says anyone with the drive and ability to build client relationships can be successful at IA. “It relates more to having a business plan and an understanding that when you start as an AR, it will take some time to really start to generate a meaningful income. The good

news is that persistence does pay off in the long run.”

Standfield says the major hurdle for new ARs joining IA is being the right cultural fit for the network.

“Any new ARs that have a solid business plan are asked to meet with some existing ARs for two reasons,” he says. “Firstly, to get feedback from a current IA adviser that this potential new adviser will fit in and, secondly, to assist the new adviser in building their networks with IA.”

Once an offer is extended to a candidate to join IA, Standfield says, the new adviser is walked through a recently launched program, which he describes as “the A-Z in starting your own business” with IA. “It covers everything from setting up your legal entity, what computer equipment to buy, cash flow planning, marketing, website development, branding, IA compliance regime, professional development plan, gaining access to leads we provide, and our proprietary broking and adviser advice tools.”

Walker tells Insurance Business that PSC Connect’s recruitment process involves several people, in order to ensure that brokers who sign up fit into the organisation’s culture and understand what’s required of them to achieve agreed standards and business goals.

“The last thing we want is to have an AR join us and then find in 12 months’ time it’s all too hard and they are not achieving the

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FEATURES

SECTOR FOCUS: AUTHORISED REPRESENTATIVES

WHAT RESOURCES SHOULD AN AR EXPECT FROM A NETWORK? Tony Walker: “Running an insurance broking business involves many components to ensure a professional, well-managed business delivers a quality service to their customers. Key parts of the business that should be supported by the licensee include: a complete IT remote platform delivering access to insurer and broking platforms financial management, including trust account and insurer payments compliance and audit reviews and returns to statutory bodies complaints and breach escalation access to ongoing advice, including insurance advice, compliance advice and business strategies agreements and relationships with insurers, including leveraging better wordings, commission levels, as well as having access to key underwriters access to exclusive products, schemes and value-add services that benefit the AR and their customers access to group insurance cover, including professional indemnity, management liability and crime as part of the offering additional marketing support, including website development, marketing content and generic and targeted industry campaigns”

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level of income expected,” he says. “It’s not good for either party.”

Crawford talks about the kind of candidate CBN seeks.

“Ideally, we’re looking for people with a significant depth of insurance broking experience so that they come really wellequipped there and that doesn’t distract them from the job they’ve got to do, which is to build their own business and grow their own customers,” he says.

“But even if they’re not hugely experienced,

Connect’s “number one priority” to ensure its licence is protected and that best practice results are delivered for customers’ benefit.

“This involves regular audits of our ARs to ensure they act in a professional manner and in accordance with legislation and customer expectations,” he says.

“In addition, our training programs not only extend to technical insurance knowledge to assist our ARs maintain competency but also include information about how to run a professional insurance business that will continue to develop

“[ARs] need to have the mindset of a small business owner … They need to have a solid plan for their business” Troy Brown, Ausure we can support them and ensure their professional development and then, beyond that with onboarding, we familiarise them with systems and tools and resources they need to operate the business, but we also coach and support them in how to go about building referral networks, finding customers, and creating plans and activity programs that will ensure their business success.”

Compliance culture Because responsibility for compliance lies with the network, it’s essential that ARs join a network that adheres to rigorous standards.

“I would encourage any prospective adviser to spend the time to understand the compliance culture, management experience and board oversight,” Standfield says. “From Insurance Advisernet’s perspective, we can only control our own destiny by having strong procedures around money handling, compliance, adherence to ASIC reporting guidelines and external audit protocols. We pride ourselves on our strong governance and timely payment of our insurance partners.”

Walker describes compliance as PSC

and prosper, while remaining compliant within current regulations.”

Walker says prospective ARs should ask about the compliance training and assistance they will receive from the network and what compliance checks are in place.

“We invite any new prospect wanting to join PSC Connect to speak to some of our existing ARs to better understand the culture within the PSC network and how they have fitted into our network,” he says. “Networks may promise a lot but the proof is in the delivery, and this is what will get the buy-in from an AR.” Brown suggests candidates ask networks if they can actually see the systems the licensee uses to monitor ARs. “There should be evidence of regular remote monitoring and physical compliance visits to ARs,” he says. “Ask to see examples of where the licensee has assisted ARs with compliance-related matters. Ask about complaint handling and monitoring and to see the systems that are used.

“Don’t accept verbal explanations; ask to see the systems.”

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FEATURES

SECTOR FOCUS: AUTHORISED REPRESENTATIVES

Crawford thinks compliance and education go hand in hand, and suggests prospective ARs look for a network that has a strong culture around continuing professional development and learning, and that can direct them towards clear and specific guidelines and requirements around what compliance means.

“Compliance is the minimum standard as it’s regulated. But beyond that is performance, and that’s where we try to encourage our people to operate to, so that they’re not just meeting the minimum requirements but meeting the standards that we think will make them different in the market,” he adds.

General culture Brown describes network culture as the most overlooked aspect when people choose an AR group.

“Who owns the licensee? Is that a good fit for my business, and what does that mean for me? How long has the licensee been operating? What is their reputation in the industry? What is the culture of the group, and does it have a sense of community? Call some insurers and existing ARs to find out.”

Crawford also offers guidance on how prospective ARs can look for signs of a good network culture.

“I think the very first thing you should listen for is the language and how people talk about the network and its purpose,” he says. “The use of inclusive language around ‘we’ is really important. Good networks are those where there’s an undercurrent of generosity; where most of the members are there to support other members of the network.”

Walker says meeting with key members

“We expect [our ARs] to be salesfocused, energetic, maintain high professional standards and be prepared to overdeliver to their customers” Tony Walker, PSC Connect of the AR network is important, in order to get a feel for how the organisation operates and its expectations.

“As well as positive feedback, other signs of a good culture are a strong proactive management team, a robust support offering, ongoing training, and transparent processes and procedures,” he says.

Asked about feedback received from IA’s own ARs, Standfield says the network’s

INVESTING IN TECHNOLOGY Shaun Standfield: “This isn’t optional as technology and all its benefits are expected by our clients today and in the future. We provide our advisers with technology-based advice tools and also provide apps and other tools to assist our advisers’ clients in mitigating and managing risks.”

Tony Walker: “We continue to expand and develop our IT capabilities to ensure our ARs can access all the products and services available in a timely manner. We have our own internal IT experts who understand the business and work with our AR network to improve service and performance and provide our team with innovative and practical solutions.”

Troy Brown: “We consider ourselves a leader in the insurance broking industy with regard to technology. Ausure was a driver and co-developer of the Eclipse broking system, which has now been adopted by Steadfast as its broking system of choice.”

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advisers are surveyed annually and he characterises the results as “excellent”.

“Anyone thinking about joining Insurance Advisernet can call anyone of our ARs, whether they have been with us 20 years or just a few months, as I am confident that all of our advisers are extremely satisfied with the services, brand reputation and, importantly, the support of the whole IA family.”

Walker says PSC Connect often receives

positive feedback from its ARs about the support they receive from the network.

“Not only administratively but also in key insurance broking areas such as difficult placements and complex claims,” he says.

“Our ARs like the freedom to build their own business, knowing they are backed by a professional progressive organisation that can help them achieve their long-term goals.”

Crawford describes becoming an AR as an “extraordinary” and “grossly underestimated” career opportunity for those wanting to run their own business.

“What the authorised representative structure has allowed us to do is build a network of people who own their own businesses and own their relationships with their customers and are delivering the kind of personal service that insurance used to be known for, and should be known for,” Crawford says.

“It’s also a fantastic opportunity for our profession to get a whole lot of new, exciting, innovative people working in our ranks.”

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31/01/2018 10:40:42 AM

FEATURES

SECTOR FOCUS: MOTOR FLEETS

Staying on the road Experts provide their insights into the motor fleet market and highlight recent and upcoming legislative changes that should be on the radar MOTOR FLEET insurance has not been a source of profitability for Australian insurers in recent years, according to Scott Guse, KPMG’s Asia-Pacific IFRS Insurance leader.

“There has been a slight improvement this year,” he says, “but it’s still losing money.”

Guse says no dramatic change to the state of play appears to be on the horizon, but this is an area of business in which more innovation is starting to occur.

He says a lot of insurers are now going out to fleet businesses to assist in educating fleet

drivers, facilitating defensive driving courses and other programs that can help to limit an organisation’s risk exposures.

“You tend to find that those sorts of programs actually pay off,” Guse says. “They [insurers] invest a couple of thousand dollars up front and it will save them tenfold down the track, in terms of reduced claim numbers.”

Changing road conditions Looking at the legislative landscape, a recent change enacted in NSW was the Motor

FATAL INJURIES IN THE WORKPLACE Last September, Safe Work Australia released its latest national statistics on work-related injury fatalities. For 2016, it recorded 182 deaths across Australia.

Of those, 45% were caused by vehicle incidents.

Vehicle incidents 45% Being hit by moving objects 29% Falls, trips and slips of a person 14% Heat electricity and other environmental factors 11% Sound and pressure 1% Hitting objects with a part of the body 1% Source: Safe Work Australia, Key Work Health and Safety Statistics 2017

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Accident Injuries Act 2017, which came into force on 1 December 2017. The Act introduces changes to how motor vehicle injuries are compensated.

“These changes significantly impact how the scheme operates, extending the cover afforded to at-fault drivers and replacing lump-sum settlements for most injured motorists with defined benefits, including regular payments for economic loss,” a QBE spokesperson tells Insurance Business.

While the definition of ‘motor accident’ has not changed, says the spokesperson, any change in legislation brings with it a risk of new legal challenges.

“It’s important to ensure that [a] Comprehensive Motor Fleet insurance policy, which covers damage to the vehicle and to third party property, includes appropriate ‘Supplementary Bodily Injury’ cover, or that similar cover is provided under the fleet operator’s General Liability insurance program,” the spokesperson says.

Tim Atkins, director of Marsh and McLennan Agency, mentions upcoming changes to the Heavy Vehicle National Law (HVNL).

“The new laws being introduced in 2018 are intended to align more closely to workplace health and safety legislation,” Atkins says.

The HVNL applies to all vehicles operating in excess of 4.5 tonnes Gross Vehicle Mass in Australia, excluding Western Australia and Tasmania.

“The law currently provides for chain of responsibility (COR) in relation to transport operations,” says QBE’s spokesperson.

“Currently, these laws dictate that the parties responsible for transport tasks are responsible for complying with the laws, and for any breaches.

“Midway through 2018, the HVNL will be amended to make it very clear that every party in the supply chain has a ‘duty’ to ensure safe practices.”

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QBE’s spokesperson explains that the new HVNL law prescribes that it will be “an obligation to eliminate and minimise public risks by doing everything reasonable to ensure transport-related activities are safe” – which is referred to as the primary duty.

“COR requirements will now also extend to heavy vehicle standards and maintenance, and liability of executive officers will broaden to require due diligence for safety across the HVNL. These laws and the duty imposed will apply across all business types where there is heavy vehicle operation.”

Addressing the subject of consequences for breaching the new HVNL, the spokesperson says: “Penalties for breaches of a primary duty under the new laws will be at similar levels to those under workplace health and safety laws.”

Increasingly, fleets are fitted with telematics

“The new [heavy vehicle chain of responsibility] laws being introduced in 2018 are intended to align more closely to workplace health and safety legislation” Tim Atkins, Marsh and McLennan Agency devices allowing operators and business owners to monitor driver behaviour and use information collected to take action to attempt to reduce vehicle accidents. The information collected can help operators ensure that a driver takes the most direct and/or fuelefficient route to their destination.

But as QBE’s spokesperson highlights, legal

responsibilities arise when an organisation installs telematics technology in its vehicles.

“Once installed, there is a legal obligation to review and monitor drivers on a regular basis,” the spokesperson says. “Depending on the size of the fleet, this may require a full-time resource just to keep an eye on the drivers’ behaviour. It then imposes a legal risk if there

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FEATURES

SECTOR FOCUS: MOTOR FLEETS

PROTECTING A MOBILE WORKPLACE Allianz Australia’s head of motor, Brett Lamond, points to statistics revealing that a person who drives for work is twice as likely to be involved in an accident, and that the chance of that accident being fatal is higher.

Lamond’s team recently shared five tips regarding the management of a mobile workforce.

Lead by example Risk management will only be effective if those responsible for its institution are genuinely invested in ensuring their drivers’ safety.

Messages in policy documents and other communications should reinforce to drivers the business’s investment in protecting employees’ safety.

1

Have the right policies and procedures in place This includes a driving policy containing the business’s safety values, procedures and policies, which clearly communicates expectations and behaviours; and undertaking workplace incident reporting and management reporting.

2

Get driver selection right the first time Have a sound recruitment process in place that assists the business in protecting itself from recruiting higher-risk drivers.

3

Familiarise your drivers with their vehicles Recognising that not all vehicles are the same, new drivers should have the opportunity to familiarise themselves, prior to driving, with new technology and equipment for use in-vehicle.

4

Be accountable Businesses should ensure that managers appreciate their responsibility for employees’ day-to-day safety and are held accountable for any non-compliance.

5

Source: Brett Lamond, head of motor, Allianz Australia, The Mobile Workplace

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is a clear indication that drivers are behaving in a way that could be a risk to themselves or others and the business does not regularly review the data or take appropriate action when required.

“Telematics has great potential; however, businesses should seek legal guidance before proceeding.”

Conversation points It’s obviously essential that brokers ask the right questions when conversing with fleet operator clients to accurately ascertain their risk exposures. Atkins reinforces the need for brokers to know precisely what’s in a

Australian dollar increases costs of vehicles’ accessory imports”, Atkins says.

QBE’s spokesperson reports that some brokers tend to underestimate the level of ‘Dangerous Goods’ cover clients require.

“Placarded loads of dangerous goods incur a minimum statutory requirement of $5m per vehicle, to cover personal injury, property damage and clean-up costs,” the spokesperson says. “This means that a B-double vehicle carrying dangerous goods on both trailers would require Dangerous Goods Liability insurance for $5m per trailer.”

On the subject of broker conversations with clients, Matthew Summers, account manager

“Fleet operators need to be educated about claims inflation, with the cost of repair and replacement of modern vehicle accessories gradually increasing” Tim Atkins, Marsh and McLennan Agency client’s fleet, particularly if that fleet includes non-standard vehicles, such as cranes, tractors and forklifts.

“A broker needs to identify the uses for these vehicles so that they are correctly listed and understood by the insurer,” Atkins says, adding that they should also discuss the level of deductible a client is willing to manage.

“While most are happy with the industry standard, some might opt to accept a higher level of risk to reduce their premium spend,” he says.

“Fleet operators also need to be educated about claims inflation, with the cost of repair and replacement of modern vehicle accessories gradually increasing, and the importance of informing their broker about any modified or imported vehicles that are in the fleet.”

Brokers should also “communicate the effects of currency fluctuation, as a weakening

in Willis Towers Watson’s corporate team, says: “The one thing we would emphasise is the need to commence the renewal process early, and for brokers to be across major claims and loss ratios.”

Atkins says insurers are generally willing to consider the attractiveness of a client’s fleet insurance against the opportunities of their broader insurance program, so it is up to a broker to engage with underwriting specialists across insurers.

“Catastrophe exposure is another element of fleet insurance where a broker can add value,” he says.

“For example, some fleets are only used during business hours and parked off-premises at other times, which could expose their fleet to hail, flood or fire. This is a good opportunity for brokers to offer risk management strategies to lower their clients’ risk profile.”

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22/01/2018 10:41:46 1:38:10 PM 31/01/2018 AM

FEATURES

DRONES

Drone rules: Comply before you fly Drones are a hot topic in insurance and aviation circles and, as Clyde & Co’s James M Cooper and Jess Harman write, the fast-developing nature of the industry presents challenges for operators, insurers and regulators alike

THE CIVIL Aviation Safety Authority (CASA) is responsible for the regulation of drones in Australia. Led by the work of CASA, Australia has been recognised internationally as a leader in drone regulations.

Current rules for commercial drone operations The most recent regulations took effect in September 2016 and are contained within Part 101 of the Civil Aviation Safety Regulations.

Currently, the key regulatory considerations for an operator considering commencing commercial drone operations include: The applicable rules depend on the size of the drone. Commercial operators using the following drones are not required to be licensed or certified by CASA: • “very small” drones (ie weighing less than 2kg) • “small” drones (ie between 2kg and 25kg) operated by private landowners on their own property • “medium” drones (ie between 25 kg and 150kg) operated by private landowners on their own properties (subject to some additional licensing requirements)

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They must comply with the ‘Standard Operating Conditions’ unless special authorisation is obtained from CASA. Those conditions are: • Only fly during the day and keep the drone within visual line of sight.

• Never fly higher than 120 metres above the ground.

• Keep the drone at least 30 metres away from other people.

• Keep the drone at least 5.5km away from controlled airspace; • Never fly over populous areas such as beaches, parks and sporting fields.

• Never fly over or near an area affecting public safety or where emergency services are underway, without prior approval.

• Only fly one drone at a time.

CASA must be notified at least five days before the operator’s first commercial flight any commercial drone operations using a large drone or occurring outside of the Standard Operating Conditions require authorisation from CASA and are likely subject to further licensing and/or certification requirements.

New rules on the way?

Although many have welcomed the flexible regulatory approach adopted by CASA, others have voiced concerns that the regulations do not address the potential safety threats posed by the rapidly expanding drone industry.

Seemingly prompted by pressure from the industry, the Australian Government is undertaking a substantive review of the current regulations, which is being conducted by CASA as well as a separate Senate Inquiry.

The ongoing review focuses on several regulatory approaches that CASA could adopt to manage drone-related activities, including: introducing a mandatory registration system for all drones using geo-fencing technology to contain drones within a particular area, or to exclude drones from sensitive areas (for example, in the airspace of airports) in order to prevent drone interference with other aircraft activity compulsory training or education requirements for all drone operators

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well as the availability and development of insurance products covering cyberspecific risks for drones.

Commercial users will need to take heed of the different safety measures that CASA is currently considering to address concerns raised by the industry, whether in the form of more stringent registration requirements, the introduction of geo-fencing technology, or increased training requirements.

Penalties for the breach of operating conditions by drone users in Australia include fines, and possible imprisonment (for more serious infringements). It is expected that increased resources will be made available to assist CASA in identifying potential breaches by drone operators and enforcing penalties.

Drone operations in Australia: need to know With the proliferation of drones in recent years at both a commercial and recreational level, there is now a wealth of information available in the public domain for prospective drone operators. This, however, creates its own problems for those seeking to navigate through what can sometimes be a complex and confusing set of rules and requirements.

With that in mind, the following are some key need-to-know features of drone use in Australia for those exploring a move into this exciting field.

While drone operators in Australia are not currently required by the regulations to take out insurance, it is important that steps are taken to obtain appropriate insurance coverage. This is particularly so because of the risk of potentially large exposures for third party damage caused by drones on the ground (eg property damage or personal injury).

Drones are increasingly becoming a target for cyber hackers. It is expected that greater focus will be given to government regulation addressing the vulnerability of drones to such attacks, as

It is important that brokers advising clients who have commenced or are considering the commercial use of drones remain apprised of regulatory developments, given the fluid nature of this industry. In addition to the ongoing government reviews in Australia, the UK has recently announced a new drone bill tightening the existing laws there. The success or otherwise of new drone regulations overseas is likely to have a significant bearing on the approach that the Australian authorities adopt moving forward.

James M Cooper is a special counsel in Clyde & Co’s aviation group in Australia. He is recognised as a “rising star” in transport by Doyle’s Guide to the Australian Legal Profession.

Jess Harman is an associate in Clyde & Co’s aviation group in Australia. She specialises in contentious and non-contentious aviation law matters in Australia and internationally.

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FEATURES

BUSINESS MANAGEMENT

What to change about your business in 2018 Management consultant Stephen Barnes proposes three New Year’s resolutions you should make for your business

THERE IS a Latin phrase, omne trium perfectum, meaning everything that comes in threes is perfect, or every set of three is complete. It is a principle known as the ‘Rule of Three’ that can be applied to business too and suggests that events or characters introduced in threes are more humorous, satisfying, or effective in executing a story and engaging the audience. The audience is also more likely to remember the information conveyed. This is because having three entities combines both brevity and rhythm with having the smallest amount of information to create a pattern. It makes the author or speaker appear knowledgeable, while being both simple and catchy.

So, to help you get back into gear after the Christmas and New Year holiday period, here are my Business Rules of Three – things to change about your business in 2018.

1

Move from practitioner to business owner

Plumbers, electricians and builders go to trade school and undertake both practical and theoretical lessons as part of their training. Software developers, chefs, lawyers, hairdressers and doctors – they all learn the skills to do their jobs both capably and competently.

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Then they finish their education or apprenticeship and get their first job and discover that they know less than they thought. So they continue learning. After a few years they’re an expert. However, throughout this period they are only learning to become an effective practitioner and not a successful business owner.

Running a business is a separate job and a skill too, and therefore it requires time and investment to learn and develop business skills to become capable and competent to do that job well. Unfortunately, business skills are not part of a plumbing, hairdressing or electrical apprenticeship, or part of the curriculum for lawyers, doctors or

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accountants. (No, that’s not a typo; contrary to popular belief, accounting courses do not equip you with the skills to run a business.)

If you look at most business start-ups, they either evolve from what was once the business owner’s hobby, or they are a result of someone wanting to work for themselves.

Think of all the tradies, web designers, bookkeepers, etc. These people are experts in their fields and have skills, but this is what often happens when they go out on their own ill-prepared: they work hard and build up a customer and client base, then they get even busier, and later you hear that they’ve either gone out of business and/or their family life or relationships have broken down.

Were these people incompetent or unskilled at what they did? No. Their mistake was that they did not work on their businesses.

It’s human nature to spend more time doing what you enjoy and what you do best.

So, our self-employed small business owners gravitate to what they like doing, rather than mastering the business skills they lack. The result is that they spend way too much energy in their business and not on their business.

You’re running a business now, not just working. Stop being a worker and start being a director. You need to skill up and learn how to run a successful business.

2

Remember – every business is a family business

One of the nice things about working for yourself is the flexibility it gives you with regard to the hours you work. This reason alone is why lots of people head off and start their own businesses – myself included. “I’ll be able to take the kids to basketball practice”, or “I can have the whole summer holiday off and we’ll head off camping”. Sound familiar?

As the business grows, you start working harder – before the family wakes and after they have gone to bed. You take work calls while you’re driving to basketball practice.

Your family are supportive as they hope you are living your dream.

Father’s Day breakfast comes along, and you go to school with your children. (You can do this because you run your own business, right?) After the breakfast, you are invited to see the children’s work in their classroom.

Your eldest daughter has written a poem about Dad, and one verse goes: “Daddy – talk, talk, talk on the phone all day”.

busy to have a holiday, or they couldn’t leave their business to others to run while they were away, or it wouldn’t be a holiday as they would be tethered via technology to their emails and phone calls and disengaged from their families, you’d be able to go on holiday (or stay on holiday) and still make money.

How do you overcome this? Systemise your business. Systemising is the process of documenting everything you do in your

Our self-employed small business owners gravitate to what they like doing, rather than mastering the business skills that they lack You’ve got the message. And isn’t this the complete opposite of what you wanted when you started your own business? You have been isolating yourself from your family and not engaging with your family. Before you know it, you’re not running a business, the business is running you.

Business can destroy your family life and your family. If you have your own business and you have a family, then it’s their business too. You might be happy to work 24/7, but they won’t be.

Every business is a family business, but it is only a business and not your entire life.

A business can have a profoundly negative impact on your life if you let it. It can also serve you and your family well as long as you start working on your business, and work more on the strategy and less on the tactical aspects of the business.

If you have a family and you work for yourself, then you have a family business – so you must be fair on your family and make time for them away from your business.

3

Systemise your business

If you had a dollar for every time you’ve heard people say they were either too

business – from answering the phone and opening the mail, to pricing work and after-care service. Without putting systems and processes in place, your business will become all-absorbing, with endless tasks to complete – like painting the Sydney Harbour Bridge.

Systems and processes allow others to share the load. These people then become what a studio recording is to Taylor Swift. A Taylor Swift song can be played by millions of people all at the same time. It sounds the same every time it is played, and Taylor Swift collects a royalty every time the recording is played. Create a recording – a system – of your business, your talents, your way of doing something, and then, like a song, replicate it, market it, distribute it and manage the revenue.

Stephen Barnes is the principal of management consultancy Byronvale Advisors. He has spent more than 20 years advising clients, from new business start-ups to publicly listed companies and across a wide array of industries.

He is also the author of Run Your Business Better – Essential Information Every Business Owner Should Know and Use. To find out how Stephen can help you run your business better, visit www.byronvaleadvisors.com.

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PEOPLE

CAREER PATH

MAKING IT ALL ADD UP

Two decades ago, Austbrokers ABS’s Rebecca Wilson followed her father into insurance and has gone from strength to strength ever since Wilson’s father, an insurance professional, sparked her interest in the industry. She joined Employers Mutual Ltd as an underwriter, later becoming a business development manager.

“I started off in accountancy and quickly realised that wasn’t for me. Then my father introduced me to the insurance sector”

1996

INDUCTED INTO INSURANCE

2009

ARRIVES AT AUSTBROKERS ABS Wilson joined Austbrokers ABS as a business development manager, quickly moving up to the role of commercial division manager.

“This was testament to the company that I worked for … I had a boss that was my mentor and sponsor who helped me reach my potential … I feel very fortunate for the opportunities I have been given.”

2011 CLIMBS THE LADDER Wilson continued rising through the ranks of Austbrokers ABS, becoming general manager of broking operations (southern).

“This role gave me a real taste of executive leadership, including setting new challenges that I didn’t really anticipate. It helped propel me to be the leader I am today.”

2003 BREAKS INTO BROKING Wilson began as a broker at Warren Saunders Insurance Brokers, progressing to an account manager role. It was during this time that she gained extensive experience in managing insurance programs for commercial clients across Australia.

“My time here taught me how to be a good broker and allowed me to acknowledge and recognise my potential.”

2010

EARNS PRESTIGIOUS RECOGNITION Wilson received the prestigious Warren Tickle Memorial Award for Young Insurance Professional of the Year, taking home both the NSW and national award.

“Even to this day this is the absolute highlight of my career. I feel very humbled and have a real sense of pride for every other young person that wins the award.”

2017 Today and beyond REMAINS CLIENT-FOCUSED Today, Wilson is general manager and principal of Austbrokers ABS, managing the entire business and overseeing service delivery for the general insurance broking business, including affinity, SME business development, claims management, commercial/corporate insurance broking, workers’ compensation and operations divisions.

“I pride myself on understanding clients’ needs, negotiating tailored solutions to meet those needs, and having solid, sound relationships across the insurance market.”

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RISING STAR BECOMES SHOOTING STAR Wilson and eight of her colleagues raised funds for the Children’s Cancer Institute, visiting Ronald McDonald House in Randwick and cooking for more than 30 families. Austbrokers ABS also supports the Reach Foundation, and Rebecca was recently awarded the ‘Shooting Star’ for her work.

“I have a strong focus on making sure young people are well and protected, and given the encouragement to reach their potential.

Both of these charities are all about young people, so they really align with my beliefs.”

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PEOPLE

CAREER PATH

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