Insurance Adviser May 2024

MAY 2024

PASSING THE TORCH NIBA CEO Phil Kewin on taking NIBA and broking forward

Features: GEARING UP FOR ADELAIDE A glimpse of the 2024 NIBA Convention

CHALLENGE YOUR THINKING Jeff Murdoch on going ‘Beyond the Status Quo’

Also inside: NEW HOPE IN CONSTRUCTION Construction industry is undergoing a transition phase

CARRYING THE LOAD

Emerging threats in marine insurance

WE ARE YOUR VOICE

CONTENTS May 2024

ACN 006 093 849 ABN 94 006 093 849 Insurance Adviser magazine is the monthly magazine of the National Insurance Brokers Association (NIBA).

Insurance Adviser magazine is published by NIBA

Publisher

Philip Kewin, CEO, NIBA T: (02) 9459 4305 E: pkewin@niba.com.au W: niba.com.au

FEATURES 11 GEARING UP FOR ADELAIDE NIBA President Gary Okely and Convention Chair Di Phelan on what to expect at the 2024 NIBA Convention

NIBA Editor Virat Nehru

Editorial enquiries

E: editor@niba.com.au

National Partnerships Manager Wayne Egelton E: wegelton@niba.com.au

Design

Citrus Media www.citrusmedia.com.au NIBA gives no warranty and makes no representation that the information contained in this magazine is, and will remain, suitable for any purpose or free from error.

To the extent permitted by law, NIBA excludes responsibility and liability in respect of any loss arising in any way (including by way of negligence) from reliance on the information contained in this magazine or otherwise in connection with it.

18 WELL POSITIONED FOR THE FUTURE

The contents of Insurance Adviser are protected by copyright and NIBA reserves its rights in this regard.

Outgoing CEO Phil Kewin on taking NIBA and broking forward

26 CHALLENGE YOUR THINKING Jeff Murdoch, senior leader and past director of Emjay Insurance Brokers, on what it takes to go ‘Beyond the Status Quo’ NIBA.COM.AU / 3

CONTENTS May 2024

FEATURES

30

LEGISLATION AND REGULATION BRING NEW HOPE TO CONSTRUCTION

The construction industry is going through much needed transition

IN EVERY ISSUE NIBA CEO Welcome..................................... 6 Member Benefits ............................................. 8 Representation .............................................. 10 Industry Bulletin .......................................... 20

40

CARRYING THE LOAD

Emerging threats need serious consideration in marine insurance

Insure Your Future ....................................... 24

EVENTS Upcoming Events ......................................... 15

REFERENCE Community Hub .......................................... 48 Insurer Strength Ratings .............................. 54

DISPLAY ADVERTISING INDEX – MAY 2024 Vero.......................................................... IFC

Allianz..........................................................16

Community Underwriting..................39

Gala Lunch..................................................5

Insure Your Future................................ 25

Ark Mutual................................................43

Macquarie....................................................7

Liberty Global.........................................33

GT Marine.................................................45

Allianz Risk................................................. 9

Mecon........................................................ 35

Code of Practice.................................... 47

NIBA Convention...................................14

CBN............................................................ 37

CGU...................................................... OBC

If you’d like to advertise your products and services through NIBA, please contact Wayne Egelton today on 0481 196 820 4 / INSURANCE ADVISER MAY 2024

Gala Lunch Series Join us for an unforgettable experience where you can meet old and new friends, relax, and enjoy a delicious lunch with soft live music in the background.

We are excited to announce the CGU-sponsored Broker of the Year and Vero-sponsored Young Broker of the Year awards.

Plus, don’t miss the opportunity to hear from our new CEO, Richard Klipin, during his first NIBA appearance.

Gather your colleagues and secure your table now to make these events memorable.

NSW

WA

WEDNESDAY, 10 JULY THE FULLERTON HOTEL, SYDNEY

FRIDAY, 12 JULY CROWN, PERTH

https://bit.ly/NSWGalaLunch

https://bit.ly/WAGalaLunch

Qld

Vic

WEDNESDAY, 17 JULY ROYAL ICC, BRISBANE

FRIDAY, 19 JULY SOFITEL ON COLLINS, MELBOURNE

https://bit.ly/QLDGalaLunch

https://bit.ly/VicGalaLunch

SA FRIDAY, 26 JULY ADELAIDE OVAL, ADELAIDE

https://bit.ly/SAGalaLunch

Secure your tickets now

CEO / Welcome

FAREWELL AND THANK YOU

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s we head into the busy renewal season, brokers are poised to ensure they are achieving the best outcome for their clients. It is stating the obvious to us, but it still seems to be lost on some that an insurance broker acts on behalf of the client. This is the only way you can ensure that the client’s best interests are at the forefront when it comes to an appropriate risk management solution.

So, while we have seen some softening of late in some markets, this June promises to be as challenging as ever, and the good brokers won’t just be passing on the renewals from insurers, they will be actively seeking a solution that delivers the most appropriate program, at the most appropriate cost.

This month’s feature on construction insurance highlights the value of the broker and the need to develop strong relationships with insurers specialising in the field.

We also underline the fact that “cheapest is not always the best”, and insurance is about peace of mind – when you pay the premium, you want the policy to deliver.

Most of us by now would have seen the footage of the cargo ship, the Dali, as it careered into Baltimore’s Francis Scott Key Bridge, which not only reeked of immediate destruction and human casualties, but also shone the spotlight on marine insurance. The industry has already been on high alert due to geopolitical tensions in the Ukraine and the Red Sea, as well as emerging threats such as Taiwan and the South China Sea, but every now and then, an event comes out of the blue that truly emphasises the fundamentals of risk, risk mitigation and protection. The impact can be felt on large businesses and SMEs, but no matter what the size, it can be substantial.

In Western Australia, the role of the broker has been recognised in relation to workers compensation. Workcover WA has released its Insurance Brokers Principles and Standards of Practice, that outline the role and expectations of a broker when dealing in workers compensation. NIBA held a workshop on 23 May to run through the important aspects of the Standards.

Meanwhile, the NSW Government is continuing its consultation into the review of the Emergency Services Levy, which is currently inequitably shared among insurance policyholders. I thank those members who provided feedback and want to reinforce that while NIBA will always work hard to advocate for brokers, at times we really need your feedback to provide relevant and valued insights into issues impacting insurance.

By now, you would have seen that we have gone live with registrations for the NIBA Gala Lunch Series and, of course, our annual NIBA Convention, this time to be held

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at the Adelaide Convention Centre. Adelaide locals NIBA President Gary Okely and Convention Chair Di Phelan share their enthusiasm for this year’s Convention, and if last year was anything to go by, it promises to be “that” event which we all enjoy as the one time we can all come together to network, learn and grow.

Unfortunately, I will not be there, and this is my last Insurance Adviser message as the NIBA CEO. The Dalai Lama said, “The purpose in life is to be happy,” and I have been extremely happy to serve as the NIBA CEO for the past few years. As someone who comes from outside the broker world, I can say how impressed and proud I am of the broking profession.

I would like to take this opportunity to thank those who have helped me to not only do the job I needed to do but become a better person as a result. Firstly, the NIBA community has been so welcoming and happy to engage. I am in awe at the contribution made by the various Divisional and YP Committees, who give up their time to enhance the NIBA experience for members. This makes such a difference to NIBA and what we do, and your contribution is much appreciated. The NIBA Board has been outstanding, and it is so fulfilling to have a collective who have no other objective than the best interests of brokers and their clients at the forefront of what they do.

When I joined NIBA, Di Phelan was President, and I can confidently say I don’t think I would have been able to integrate into NIBA and move ahead without the guidance and support from Di. Current President Gary Okely likewise provides similar support.

So, I bid farewell, and thank you, for a most rewarding experience.

PHILIP KEWIN Chief Executive Officer, NIBA

What’s next for insurance businesses?

P

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Read our 2024 insurance benchmarking report, with detailed metrics across financial, operational, people, challenge and focus areas.

Scan the QR code to access the report.

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NIBA / Member Benefits

GET TO KNOW THE NIBA DIVISIONAL COMMITTEE CHAIRS

NIBA SAYS CONGRATULATIONS NIBA CONGRATULATES THE FOLLOWING MEMBERS FOR RECEIVING THEIR QPIB DESIGNATIONS Anna Cook, Ausure Insurance Brokers Katherine Oxnard, PSC Insurance Jodie Krafft, WTW

demonstrating the strength of our own commitment to transparent disclosure and self-governance. Alongside the Code of Practice, the work NIBA performs in relation to education and CPD activities ensures that high standards of professional practice are delivered across insurance brokers operating in Australia.

What is the one broking topic or issue you’re a passionate advocate for?

I am a passionate advocate for advancement of, and commitment too, our professional standards across insurance broking. The implementation of the NIBA Insurance Brokers Code of Practice was a major step towards us, as a profession, setting out the level of professionalism that we expect from our peers and hold ourselves accountable to.

KEVIN BAKER COMPANY: AON JOB TITLE: REGIONAL DIRECTOR, SOUTH EAST AUSTRALIA – NATIONAL AND NIBA VIC/TAS DIVISIONAL COMMITTEE CHAIR Why does NIBA matter to me?

There are two critical areas where I think NIBA delivers its most important impact.

The representation that NIBA provides to insurance broking as a profession is incredibly important. This representation ensures that the member organisations speak loudly with one voice that specifically advocates in the interest of all insurance brokers.

The importance of this voice has been demonstrated over recent times as part of the Quality of Advice Review by Treasury, and the advocacy in relation to the NIBA Insurance Brokers Code of Practice

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What is something you’re proud of having accomplished in your role as Vic/Tas Divisional Committee Chair?

There are a couple of initiatives that have been championed by members of the Vic/ Tas committee during my tenure as Chair, not by me specifically, but nonetheless I am incredibly proud on their behalf. Firstly, Cameron Sheild has been a vocal advocate for the importance of the promotion of insurance broking as a career of choice since joining the Vic/Tas committee.

The recently launched ‘Insure Your Future’ initiative is a fantastic evolution of this drive for promotion of our profession and aligns us towards collectively articulating the benefits of a career in broking. Equally, Leigh Stalker has passionately reinvigorated NIBA in Tasmania. Leigh has taken the role of CoVice Chair as a platform to renew activity in Tasmania that supports the insurance broking fraternity. It has been amazing to support Leigh in this endeavour.

Deon Locke, Lockmor Insurance Brokers Nancy Wotherspoon, Aon Insurance Daniel Rooney, OXINS Risk Solutions Kieran Volpe, North Queensland Insurance Brokers Scott Stewart, Insurance Mentor Skie Mitchell, Tasmanian Insurance Brokers Jack Maxwell, Simplex Insurance Solutions Ellen Mills, Adroit Insurance & Risk Pty Ltd Jessica Cudia, Simplex Insurance Solutions Joshua Boyd, Aon Insurance Matthew Bates, Bell Partners Insurance Harold Wiafe, Aon Risks Services Australia Pty Ltd Dean Kennedy, Cruden Read Pty Ltd Shannon Osborne, BurMac Financial Services Christian Athanasakis, Aviso Broking Pty Ltd William Freitas, Confio Insurance Wahyudi Suyanto, PSC Insurance Jack Miles, Kerrie Woodards Insurance Rebecca Heatley, Holdfast Insurance Brokers Lachlan Birrell, Aon Neil Daniel, Holdfast Insurance Brokers Will Laundy, Pillar Brokerage

NIBA CONGRATULATES THE FOLLOWING MEMBER FOR BECOMING AN ASSOCIATE MEMBER Kevin Duggan, Nsure General Insurance Advisors Justin Micale, Marsh Harumi Hancox, IFS Insurance Solutions Pty Ltd Dion Owens, Honan Insurance Group

NIBA / Member Benefits

ALLIANZ COMMERCIAL

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Insurance issued by Allianz Australia Insurance Limited ABN 15 000 122 850, AFS Licence No.234708. This information is general advice only and does not take into account your objectives, financial situation or needs. Consider the relevant PDS in deciding whether to buy or continue to hold any insurance products.

NIBA.COM.AU / 9

NIBA / Representation

WE ARE YOUR VOICE! A key part of NIBA’s role is representing the interests of brokers to government and regulators to ensure that all Australians have access to trusted risk advice. NIBA also maintains strong relationships with government, regulators, relevant industry bodies, consumer groups and government agencies.

DELIVERING BETTER FINANCIAL OUTCOMES

In March, legislation was introduced into Parliament to enact Tranche 1 of the Delivering Better Financial Outcomes package.

This package of legislation delivers on a number of recommendations from the Quality of Advice Review, including the commission disclosure and consent provisions.

The Bill addressed a number of concerns raised by NIBA, including the obligation to inform the client of the name of the insurer prior to gaining consent. The Bill addressed the concerns by providing that the name of the insurer only has to be disclosed “if known”.

Shortly after, stakeholders identified that the conflicted remuneration exemption for general insurance commissions had been limited to personal advice. Treasury later confirmed this was not the intention and committed to amend the legislation to preserve the conflicted remuneration exemption for general insurance commissions when providing both general and personal advice.

The legislation was referred to the Senate Economics Legislative Committee for review. NIBA provided a submission to the review calling for the reinstatement of the conflicted remuneration exemption for general insurance commissions. The committee will provide its report by 26 June, before the Bill returns to Parliament.

Legislation to implement Tranche 2 of the reforms has yet to be released. Tranche 2 will implement a number of reforms relevant to brokers including: • Removal of Safe Harbour and the introduction of a modernised Best Interest Duty; • Replacement of Statements of Advice with a fit-for-purpose record of advice; and

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• Introduction of a new class of financial advisors to deliver ‘simple advice’.

NEW SOUTH WALES EMERGENCY SERVICES LEVY

Last month, the NSW government released a consultation paper, outlining four potential revenue base models for replacing the NSW Emergency Services Levy: • Capital improved value, used in Victoria and South Australia; • Unimproved land value, used in the Australian Capital Territory and in New South Wales for the purposes of land tax and council rates;

•G ross rental values, used in Western Australia and Tasmania, or; • A fixed charge model, used in Queensland.

In addition to the revenue model, the government also sought feedback on whether either of the remaining two revenue streams should be replaced. Currently, the NSW Fire and Emergency Services are funded through a combination of insurance levies, including council contributions collected from property owners and State government contributions from general revenue.

NIBA members provided feedback which was used to inform NIBA’s submission to the review.

CONTACT NIBA

As always, brokers who have questions about these or any other government or regulatory matters should feel free to contact Head of Policy & Advocacy Allyssa Hextell at ahextell@niba.com.au

NIBA / Convention

Gearing up for Adelaide: A glimpse of what’s in store at the 2024 NIBA Convention

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Adelaide is getting ready to welcome the diversity and expertise of the insurance industry and the broking profession for the 2024 NIBA Convention.

It’s an event like no other, which holds a special place in the broking calendar.

fter encouraging brokers to ‘Reimagine and Think Differently’ in 2023, this year is all about taking a step into the future of insurance broking and moving ‘Beyond the Status Quo’ at the 2024 NIBA Convention. Discover cutting-edge insights, changing industry trends, and innovative strategies that will challenge you to reshape your approach.

From 20-22 October, attendees from all over will embrace this year’s theme to challenge conventional wisdom, explore new horizons, and delve into uncharted territories.

Be it seasoned veterans or emerging talents representing diverse entities, including listed groups, international firms, and SMEs, the gathering at the NIBA Convention embodies the full spectrum of the broking profession.

For more insights about how the 2024 NIBA Convention is shaping up, including a glimpse at this year’s Master of Ceremonies and Keynote Speakers, Insurance Adviser caught up with NIBA President Gary Okely and the 2024 Convention Chair and Past President Di Phelan – two South Australian locals who know the pulse of Adelaide and our insurance broking industry like the back of their hand.

NIBA.COM.AU / 11

NIBA / Convention

Your Master of Ceremonies: Gemma Acton

Gemma Acton will be a familiar face to many Australians on TV. She has worked across finance and broadcast media for more than two decades and is currently the Network Finance Editor at 7 News.

Convention Chair Di Phelan enthusiastically welcomed Gemma as the MC for this year’s Convention.

“When looking for a Convention MC, we wanted to find someone who is well credentialed and brings a fresh perspective to the role,” said Di. “Gemma will be well known to many who watch Channel 7 news, and we look forward to getting to know her as she helps guide us through the Convention program.”

Insight into your Opening Keynote Speaker: Emma Isaacs

The Opening Keynote this year will be delivered by the trailblazing entrepreneur Emma Isaacs, the Founder and Global CEO of Business Chicks. A success story for the ages, Emma was business owner by the age of 18, property investor by 19, and self-made millionaire by 23.

Di shared excitement at the opportunity to hear the stories that Emma will share.

“We are excited to have Emma as our Opening Keynote speaker,” said Di. “We have some wonderful Australian women entrepreneurs and Emma is one of them. Her messages will inspire everyone in the room to go ‘Beyond the Status Quo’. Now more than ever, we need to think, plan and then take the leap into the unknown and I am sure Emma will set the scene for the theme of our Convention in an inspiring and entertaining way.”

12 / INSURANCE ADVISER MAY 2024

Insight into your Plenary Speaker: Andrea Clarke

The Plenary sessions this year will be led by writer and news reporter Andrea Clarke, who will ignite ideas about how to become a ‘future fit’ in a dynamic world.

“The Plenary Speaker is always a Convention highlight,” said Di. “This year, we welcome Andrea Clarke, who many of you may recognise from her work as an Australian television news journalist who brought stories from across the globe to our television screens and has since become an award-winning writer.

“Andrea will no doubt challenge our thinking about what a future workforce will look like and how we will be fit for what lies ahead. Undoubtedly, Andrea’s session will force us all to think ‘Beyond the Status Quo’ and provide tactical advice to take straight back to your business.”

Insight into your Closing Keynote Speaker: Dr Ben Hamer

After two days of bustling activity that ignite meaningful conversations and spark knowledge sharing across the broking community, the Convention will end on a high with the Closing Keynote by Dr Ben Hamer.

An accredited futurist, Ben is a passionate advocate for pushing our understanding of what future of work looks like, being awarded the number one thought leader for the Future of Work in the Asia-Pacific.

“Ben and his insights will bring our two days of learning to go ‘Beyond the Status Quo’ together, in what will prove to be highly thought provoking and entertaining closing session,” said Di.

NIBA / Convention

An exciting and singular opportunity for everyone

NIBA President Gary Okely highlighted the value of the Convention, which remains one of the only occasions when the broader insurance industry and the broking profession converge under the same roof.

The conversations that occur and the professional relationships that are developed through this endeavour are priceless.

“I think the NIBA convention is truly the only opportunity for the insurance broking profession and the wider insurance community to come together in a single location to collaborate, learn, and build stronger networks,” said Gary.

“We saw the results of the 2023 Convention highlight exactly why the NIBA Convention was a significant opportunity for broking organisations of all sizes, complexity and geographies to use this event for their organisation and for all of their employees to benefit from the experience.

“Importantly, it will be the first opportunity for most attendees to personally meet our new CEO, Richard Klipin. Similarly, for Richard, it is a great opportunity for him to meet the entire industry in one location,” noted Gary.

Showcasing professionalism

Gary underscored that the Convention was also a unique opportunity for the broking fraternity to showcase its upholding the highest standards of professionalism to other important stakeholders.

“More than just networking and learning, the Convention is a stage for us to display our professionalism to key stakeholders,” said Gary.

“For many, their insight into the daily operations of brokers is limited. By spotlighting our professionalism and collaborative ethos, we can underscore the immense value we offer our clients and highlight the exceptional aspects of our profession. Let’s promote our professionalism and the value we provide to our clients and showcase all that’s great about our profession.”

Conversation starters at the 2024 NIBA Convention

Both Di and Gary shared their views on what they believed to be the burning issues that would form important discussion points at the upcoming Convention.

“Continued discussion around regulation and the burden it places on brokers will still be a topic that brokers will want covered during the Convention,” said Di. “We will certainly cover that based on the current state of affairs, particularly the outcomes of the Quality of Advice Review, which should be clearer by October,” added Di. “By the end of the year, NIBA will commence the next review of our Code of Practice. Increased awareness of the Code and consumer and governing body expectations regarding it will also be a hot topic as we embark on the next step in our journey of selfregulation and professionalism.”

Gary agreed with Di, noting the importance of this journey of ongoing self-regulation for the profession.

“The NIBA Code of Practice is now in full swing, and disclosure requirements will have been in operation for [about] 12 months when the 2024 Convention kicks off,” highlighted Gary.

Super Early Bird registrations for the 2024 NIBA Convention are open. As a NIBA member, you can secure your Super Early Bird ticket today for just $990 ex GST and save 31% off the standard member ticket price. Scan the QR code to register for the Convention today.

NIBA.COM.AU / 13

NIBA / Events

SUPER EARLY BIRD REGISTRATIONS NOW OPEN Secure your Super Early Bird ticket to the 2024 NIBA Convention today.

NIBA member tickets are just $990 ex GST, saving 31% on the standard price.

NIBA Convention Registrations

Super Early Bird Price Available till 11 June 2024

Early Bird Price Standard Price Available 12 June- From 1 August 31 July 2024 2024

NIBA Member Full $990 Convention Registration

$1,200

$1,440

Non-Member Full $1,290 Convention Registration

$1,440

$1,730

Young Professional $930 (under 35) Full Convention Registration

$930

$1,040

NIBA Member Day Registration

$660

$660

$660

Non-Member Day Registration

$800

$800

$800

Accompanying Partner Registration

$500

$500

$500

NIBA Member 8Plus Group Discount*

$930

$930

$1,040

Discount applies for group tickets of eight or more delegates*.

Convention fees are in Australian dollars and quoted exclusive of GST.

14 / INSURANCE ADVISER MAY 2024

SUPER EARLY BIRD PRICES APPLY UNTIL 11 JUNE 2024

Proudly sponsored by

EARN UP TO 10 CPD POINTS

Scan the QR Code or Register at: www.2024nibaconvention.com.au

NIBA / Events

NIBA EVENTS

NIBA stages a variety of educational and social events across Australia for the whole intermediated insurance community.

VICTORIA 2024 NIBA Geelong Introduction to Loss Adjusting

2024 NIBA Vic Wine & Cheese Networking Event

Join us for Geelong’s Introduction to Loss Adjusting Lunch and Learn session and hear from experts at Crawford and Company who will present an informative demonstration of the value add that Loss Adjusting brings to claims management for key clients.

Venue: Deakin’s Geelong Waterfront Campus Tickets: NIBA Members: $10 + GST Non-Members $15 + GST CPD Points: 1 point

MAY

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NEW SOUTH WALES

Join us for a wine and cheese networking event at the Handpicked Cellar Door. This event promises an evening of delightful connections and enriching experiences.

Prepare to indulge your senses with delicious wines and cheeses from Melbourne vineyards in the city’s heart.

Venue: Handpicked Cellar Door Tickets: NIBA Members: $60 + GST Non-Members: $70 + GST

2024 NIBA SA Business Interruption & Material Damage Underinsurance Seminar

Join other industry professionals and receive the latest updates on key initiatives at the 2024 Newcastle Member Update & Networking Function. Current trends and hot topics will be explored followed by a 4-person panel where participants will have an opportunity for some Q&A and thoughtprovoking discussions.

MAY

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Tickets: NIBA Members: $15 + GST Non-Members: $20 + GST CPD: 2 CPD points

30

SOUTH AUSTRALIA

2024 NIBA Newcastle Member Update & Networking Function

Venue: Merewether Surfhouse – 5 Henderson

MAY

Join us for South Australia’s Business Interruption & Material Damage Underinsurance Seminar, delivered by LMI Group’s CEO, Steve Manning, and joined by Andrew Nock, Director of Andrew Nock Valuers. We will explore common additional covers, underinsurance impacts, and how to protect yourself from potential Professional Indemnity exposure.

Venue: The Gallery Tickets: NIBA Members: $25 + GST Non-Members $35 + GST CPD Points: 2 points

MAY

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TASMANIA 2024 NIBA/AILA TAS General Insurance Masterclass

The Tasmanian Branches of NIBA and AILA are pleased to introduce the inaugural co-branded 2024 General Insurance Masterclass. Join other industry professionals and hear from experts about important and influential topics in relation to general insurance such as general insurance trends, calculating risk, management liability trends and contractual indemnities and cover.

Venue: Crowne Plaza Tickets: NIBA & AILA Member: $100 inc GST Non-Member: $120 inc GST Students: $10 inc GST CPD Points: 4 points

Check out NIBA’s upcoming events Scan the QR Code to register.

MAY

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Workers compensation change gives brokers and employers choice There is plenty to think about when choosing which workers compensation insurer to partner with.

From 30 June 2024, more employers in NSW will be able to choose which workers compensation insurer they partner with, after icare’s decision to drop the premium threshold enabling that choice from $500,000 to $200,000.

“As part of our offering for mid-corp businesses, we’ve appointed an Injury Prevention Manager, whose role is to provide brokers with strategic solutions, and identify any programs that clients need to create safer workplaces and reduce injury frequency,” says Pittman.

For brokers, this means the ability to work with clients to place their workers compensation policy with the insurer that best meets that organisation’s needs. For insurers, meanwhile, it means increased competition, new ways of thinking, innovation and, most importantly, improving outcomes for people injured at work.

Working in partnership with brokers

Mark Pittman, General Manager, Government Services (Personal Injury) at Allianz, says Pittman, “The partnership between broker, employer and insurer is crucial, and it’s important to have confidence the insurer you partner with will deliver the very best outcomes, both in terms of helping people get back to work, and reducing incidents in the first place, too.”

Dedicated claims team focused on outcomes Workers compensation is all about people, and for Allianz, people are of paramount importance throughout the process.

“We make sure that our claims management teams have low caseloads to support a focus on outcomes,” explains Pittman.

Those relationships are key to a successful, ong-term workers compensation relationship between insurer, broker and client – and Allianz is proactively partnering with brokers to help educate clients about risk mitigation in the workplace. After all, reducing workplace injuries is the best outcome for everyone.

“As part of our offering for mid-corp businesses, we’ve appointed an Injury Prevention Manager, whose role is to provide brokers with strategic solutions, and identify any programs that clients need to create safer workplaces and reduce injury frequency,” says Pittman.

To enable this, Allianz’s Innovation Fund will support the co-design of programs with brokers and clients to help mitigate and prevent workplace injuries and help businesses respond to injuries in the best way if they do happen.

Supporting brokers and businesses to help reduce and mitigate workplace incidents, Allianz is also offering a series of regular interactive education webinars and face-to-face training forums, to help businesses create safer workplaces for their employees.

Regional hubs with people on the ground Key things to consider when choosing your workers compensation partner At Allianz, we recognise the value and importance of face-to-face relationships. We also understand that businesses in regional NSW face different challenges than those in urban areas.

To support our regional brokers and clients, we are establishing regional hubs, which will host regular events for brokers and clients, while regional claims specialists will be based in regional areas, working face-to-face with brokers and businesses.

“Wherever a broker and their clients are based in NSW, regular communication with a dedicated team and faceto-face interaction are vitally important to building a longterm workers compensation partnership,” says Pittman.

Using innovation and technology to deliver better outcomes To deliver the very best, holistic service for broker partners and clients, Allianz’s workers compensation program also offers a host of other benefits, including access to its psychosocial risk management tool, which helps brokers and employers understand their obligations, and access to Allianz’s e-learning platform, which covers modules on topics ranging from workplace bullying and harassment to ergonomics.

Brokers and clients will also have access to Allianz’s digital reporting tool AVA which enables brokers to access their clients’ portfolios, as well as enabling brokers and clients to drill down into individual claims to understand status and progress.

For brokers, choosing a workers compensation partner for clients with premiums of $200,000 or more is an important decision, and Pittman says it’s important to consider several factors.

“Good, strong communication with experienced people who are dedicated to you and your clients is vital, as you need an insurer you can partner with over the long term,” he says.

“Ask about case management experience, retention and tenure, ask about the support and education services on offer for both you and your clients, and choose an insurer that has people on the ground, able to meet you and your clients face to face.”

While workers compensation is ultimately about facilitating the optimal outcomes for injured workers, the very best workers compensation insurers are equally focused on supporting broker partners and employers to reduce those incidents in the first place.

To transfer a NSW workers compensation policy to Allianz, log into icare’s customer portal, and select Allianz as the claims service provider.

For more information, email allianzWCnewbusiness@allianz.com.au

NIBA / Special Feature

Well positioned for the future

Insurance Adviser sat down to have a chat with outgoing NIBA CEO Phil Kewin about some of his notable achievements, the crucial role of NIBA in broking advocacy and passing the torch to incoming CEO Richard Klipin.

Bringing my own shoes

Looking back, Phil reminisced about the emotions he felt when he took over the mantle of NIBA CEO a few years ago.

“It was quite daunting following in the footsteps of Dallas, as he had established such a sound reputation,” said Phil.

“I’d like a dollar for every time someone said that they are big shoes to fill. I could only say that I am bringing my own shoes.”

Despite the daunting prospect of taking the reins over from Dallas, there was palpable excitement to make the most of the opportunity that had come his way. Phil noted how passionately he felt about the value he could add to enhance NIBA’s already strong reputation as the ‘one voice’ for the broking profession.

“I was also excited at the opportunity, and while I didn’t know much about ‘general insurance’ specifically, I had been though a lot of regulatory challenges with my previous roles,” said Phil.

“I could see the vision the Board had regarding self-regulation and felt I could contribute, and importantly, I felt passionately that if we got on the front foot, and got it right, we would not only maintain our [NIBA’s] strong reputation, but enhance it.”

The importance of advocacy

Phil shared his thoughts on the role NIBA plays in advocating for the broking profession and the value that it continues to provide for its members. As the broking landscape evolves, this role will be more important than ever.

“The advocacy role is usually only one of those things where attention is drawn when you get something wrong,” said Phil.

“When it goes right, people assume that it ‘just happened’. We recognise that one of the aspects of advocacy is not only doing a

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good job, but communicating with your members and educating them on the work that is being done.”

Phil also highlighted the significant role that NIBA members play as strong advocates for the broking profession.

“You can’t underestimate the value that members provide in advocacy also,” said Phil.

“Brokers see clients every day and do great things. This creates reputational benefits and ensures that when a broker wants to be heard, their voice is respected, be it individually or via NIBA. Phil reaffirmed the need to stay on your toes, especially as the broking landscape evolves.

“While I think we have done a good job so far, and the number of complaints against brokers is minimal, you can never be complacent. Community standards and expectations are evolving rapidly, governments change and then there is a new degree of regulatory focus,” said Phil.

Notable accomplishments from the time at NIBA

Phil outlined some notable achievements from his tenure that he was most proud of and underscored that every achievement was always a team effort.

“I personally wouldn’t say I’m responsible for anything alone,” said Phil.

“But, there are many big and small achievements over the last few years. Transitioning into the role [as CEO] for starters, to continue the good work from Dallas.

“Then, being able to finalise and launch the Insurance Brokers Code of Practice is definitely a highlight. This took

NIBA / Special Feature

us ahead of the curve and two years on it still offers standards and requirements greater than what is required by law and is something we should be very proud of. It’s easy to then start to say how it can be improved, but it was universally lauded at the time of release, and as said—still sets standards above the law,” added Phil.

“Updating the Code meant updating the IBCCC Charter, and also, it was time to update the NIBA Constitution, which hadn’t been done for a number of years.

“We introduced a new website, database and back-office system that helps provide a greater user experience and enhances our service to members. This means we are in the process of updating our membership to take it over 15,000.

“Of course, the 2023 NIBA Convention on the Gold Coast was a real highlight. Everybody brought their best selves, and it was and still is, the only Convention that brings together insurance brokers from cluster groups, small, independent and international firms. It was very rewarding to be part of that and see how much everyone benefitted from it.

“More recently, we launched the ‘Insure Your Future’ initiative to promote the insurance broking profession and address the fact that we really don’t do a good job in promoting how good and how rewarding insurance broking can be as a career. A dedicated group had been working on this for over 12 months, so it was important that we brought something to market as a starting point and build from there,” said Phil.

Passing the torch: taking NIBA and insurance broking forward

As NIBA undergoes a transition, with the CEO mantle being passed on to Richard Klipin, Phil expressed his eagerness to see Richard take NIBA and insurance broking forward through his extensive experience.

“I think Richard is coming at a good time,” said Phil.

“While my tenure finished sooner than originally anticipated, I think there has been a transitioning period that can be built upon to take insurance broking and NIBA into the future. Richard will bring his own strengths, experience and unique skillset.”

Making a difference

Phil thanked everyone whose involvement with NIBA, driven by a passion to be strong advocates for the profession, helps the association to make a difference.

“In particular, Di Phelan who was President at the time I started, and more recently Gary Okely, who made my immersion into NIBA that much easier and more rewarding,” said Phil.

“I remain impressed with the dedication and commitment of not only the NIBA Board, but also the Committee members and volunteers in various work groups.

“Some have been Chairs or have been members of Committees for years and without their work, we wouldn’t be able to do what we do to make a difference.

“NIBA and brokers are well positioned for the future,” Phil concluded.

NIBA.COM.AU / 19

PROFESSIONALISM / Industry Bulletin

MEETING CLAIMS HANDLING TIMEFRAMES AN ONGOING CHALLENGE FOR GENERAL INSURERS

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he latest report released by the General Insurance Code Governance Committee (CGC), highlights ongoing challenges in meeting claims handling timeframes for the general insurance industry.

The Annual Data and Compliance Report, published recently, noted an increase of 16% in claims-handling breaches of the industry Code of Practice during the 2022-23 reporting period, totalling over 45,000 breaches.

Ms Veronique Ingram, Chair of the CGC, acknowledged the increased volume of claims during the year while expressing deep concern over the findings.

“Claims handling timeframes are crucial for customer wellbeing. It is troubling that we saw such significant numbers of breaches in this reporting period,” Ms Ingram remarked.

The report identified insufficient resourcing, training, and technology investment by insurers as key factors

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contributing to the breaches. Ms Ingram emphasised the need for insurers to address these underlying issues, stating, “Addressing these issues will lead to better outcomes for customers.”

Interestingly, the report noted that a small group of insurers were accountable for the majority of breaches, while others successfully reduced breaches related to claims handling timeframes. Ms Ingram commended the positive steps taken by some insurers, urging all insurers to review and enhance their claims handling procedures and customer communications.

“We welcome the positive steps, and we know that some insurers have worked hard on reducing breaches in this area following reports in recent years from Deloitte, ASIC and the CGC,” Ms Ingram said.

The report also highlighted a 61% increase in reported complaints, marking this the fourth consecutive year of escalation.

Ms Ingram attributed this increase in part to an expanded definition of complaints, but also pointed out its correlation with the rise in claims-handling breaches.

“It is a consequence of the increase in claims-handling breaches. As we see the breaches go up, we see more complaints come in,” said Ms Ingram.

Insurers were urged to analyse their complaints data to identify areas for improvement, particularly in claims handling and communication delays. The report emphasised the importance of adequately resourcing complaints handling functions and investing in technology to streamline processes.

Ms Ingram reaffirmed the CGC’s commitment to engaging with insurers on areas of concern.

“We expect insurers to consolidate the progress made in the coming year,” she concluded.

PROFESSIONALISM / Industry Bulletin

EARLY PREPARATION IS KEY, EMPHASISES ASIC CHAIR ON MANDATORY CLIMATE REPORTING

A

SIC Chair Joe Longo has revealed some early guidance regarding the regulatory body’s strategy for mandatory climate-related disclosures, underscoring the need for entities to proactively prepare for the forthcoming regulatory landscape.

Highlighting the urgency of compliance, Longo underscored the need for entities to commence preparations as soon as possible.

He cautioned against delaying action until after the legislation passes, urging stakeholders to initiate the process of data gathering, capability building, and recordkeeping without delay.

EARLY PREPARATION IS KEY

Addressing a gathering of industry stakeholders at the Deakin Law School International Sustainability Reporting Forum recently, Longo emphasised the necessity for entities to commence preparations early to comply with the evolving climate reporting requirements.

With over 6,000 entities slated to report under the new regime in the coming years, Longo urged proactive measures in implementing requisite systems, processes, and governance practices to meet the impending obligations.

ASIC’S APPROACH – PRAGMATIC SUPERVISION AND ENFORCEMENT

Longo reassured stakeholders that ASIC would adopt a pragmatic approach to supervising and enforcing the new regime.

While refraining from divulging a step-by-step roadmap, he affirmed ASIC’s commitment to issuing guidance to aid entities in meeting their obligations effectively. Longo emphasised the collaborative effort between ASIC, the government, and other Council of Financial Regulators (CFR) agencies to support the implementation of the climate reporting regime.

He also stressed ASIC’s support for aligning Australian standards with international benchmarks, noting the potential benefits of harmonisation for efficiency, and reducing regulatory burden.

AVAILABILITY OF SUPPORTIVE MEASURES TO ASSIST WITH COMPLIANCE

In tandem with the enforcement of the climate reporting regime, ASIC pledged to provide comprehensive guidance to facilitate compliance. Longo outlined plans to develop regulatory guidance, including a dedicated page on ASIC’s website for climate-related financial disclosures, offering resources for both preparers and users of sustainability reports.

WHAT DOES PROGRESS LOOK LIKE? As part of its oversight responsibilities, ASIC committed to monitoring progress and market practices in climate-related disclosures. Longo intends to implement proactive surveillance efforts, including

reviews of disclosures made by entities in financial reports, to glean insights and inform regulatory responses.

Longo acknowledged the evolving nature of the climate disclosure landscape, stressing ASIC’s commitment to continuous learning and adaptation.

He underscored the need for ongoing collaboration with industry stakeholders and international partners to navigate challenges and drive meaningful progress in climate reporting.

ASIC will provide further guidance as the proposed legislation moves towards becoming the law. However, Longo reiterated the need to start preparations earlier than later in his concluding remarks.

“You need to start preparing for the future, now,” he said.

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PROFESSIONALISM / Industry Bulletin

QUEENSLAND GOVERNMENT INITIATES REVIEW FOR FUTURE DISASTER PREPAREDNESS

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o improve future disaster preparedness, the Queensland government has announced a comprehensive review of severe weather events related to the 2023-24 severe weather season. Led by the InspectorGeneral Emergency Management (IGEM), the review will include severe storms, tropical cyclones, tropical lows, flooding, and bushfires.

Premier Steven Miles underscored Queensland’s proactive stance so that the state is ready for future events.

“Queensland is the most disaster-affected state in the country. Our first responders always do an amazing job, but we know we can always do better, which is why we undertake these reviews,” he said. He emphasised the importance of continuous

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improvement and expressed anticipation for the review’s outcomes.

Police Minister Mark Ryan echoed this sentiment, highlighting Queensland’s resilience in the face of severe weather events.

“This review will examine Queensland’s responses and practices to identify any possible improvements in how we deal with extreme events,” he stated. Minister Ryan emphasised the exemplary role of Queensland’s IGEM, which leads the nation in emergency management practices.

Acting Police Commissioner Steve Gollschewski noted the significance of the review in enhancing support for Queenslanders during natural disasters.

“Anything we can do to minimise harm, speed up recovery, and improve the process is very worthwhile,” he remarked.

Commissioner Gollschewski reiterated Queenslanders’ resilience and emphasised the importance of seeking new and better ways to support communities.

The review aims to identify enhancements to Queensland’s disaster management arrangements through engagement with impacted communities and carefully considering community feedback. An interim report is expected by July 30, 2024, with the final review report due by September 30, 2024.

“Queensland’s office of the InspectorGeneral Emergency Management leads the nation and is being closely looked at by other states and Territories.

“I look forward to receiving the IGEM report and any recommendations that may accompany it,” said Police Minister Mark Ryan.

PROFESSIONALISM / Industry Bulletin

RELIEF MEASURES EXPANDED FOR MORE FLOOD-STRICKEN NSW COMMUNITIES

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n the aftermath of heavy rainfall and flooding wreaking havoc across New South Wales since April, disaster assistance is being extended to several local government areas (LGAs) to aid affected communities in their recovery efforts.

The federal and state governments have joined forces to provide comprehensive support through the Commonwealth-State Disaster Recovery Funding Arrangements (DRFA). The LGAs now covered include Armidale, Campbelltown, Lismore, Moree Plains, Northern Beaches, and Port Stephens.

Assistance measures encompass a spectrum of support tailored to meet the diverse needs of flood-affected residents and businesses. Eligible individuals can avail themselves of emergency accommodation, small cash payments, grants for replacing

essential household items, and funding for structural repairs to restore their homes to a safe and habitable condition.

Furthermore, affected local councils will receive support to aid in the cleanup and restoration of damaged public assets.

Small businesses, primary producers, non-profit organisations, and sporting/ recreation clubs can access concessional interest rate loans and grants to repair or replace damaged property. Additionally, freight subsidies are available for primary producers to facilitate the transportation of livestock and fodder.

Federal Minister for Emergency Management, Murray Watt, emphasised the ongoing assessment of the flooding impact, acknowledging the widespread damage inflicted upon homes, farms, businesses,

and volunteer groups. He affirmed the commitment of government agencies and community groups to continue the arduous clean-up effort, underscoring readiness to provide support as needed.

NSW Minister for Emergency Services Jihad Dib highlighted the extension of the Natural Disaster Declaration as part of the state government’s ongoing response to the calamitous events.

“The extension of this disaster declaration unlocks assistance for additional communities in need, as the full extent of the damage becomes known,” Minister Dib said.

Residents seeking financial assistance, guidance on replacing lost documents, or information on the nearest recovery centre are urged to contact Service NSW.

NIBA.COM.AU / 23

NIBA is proud to present a first-of-its-kind initiative to promote insurance broking as a career of choice, Insure Your Future.

The aim of the initiative is to promote insurance broking as a career, attract more people into the profession and increase resources and information available about the profession.

Flexibility the key to unlocking NIBA’s dedicated Insure Your Future Committee will keep you updated on the progress. the potential ofproject’s working parents Do you have or thoughts on need whatfor weflexibility should as include?

Like many others, the broking profession is facing significant “My role ideas was created around my a mother Have you seen something similar being done well elsewhere? staffing challenges due to the global talent shortage. In with young children,” Catherine shares. She can successfully Or do you just want to find out more about the initiative and order to tackle this, organisations have had to become carry out her professional and personal responsibilities thanks how you can get involved? more flexible, opening up to different candidates and ways to a suite of flexibilities offered by her employer. of working. Indeed, the talent pool that is working parents Please email info@insureyourfuture.com.au or contact your Through working remotely from home, Catherine has been – including those returning to work and those starting or state NIBA Committee representative. able to continue her career while raising her children. Sharing making a career change – represent a valuable yet often her role with a colleague, Cara, further helps, meaning she overlooked resource due to their need for certain flexibilities can be truly present as a parent on her days out of the office or differing working arrangements. while also ensuring her clients are fully taken care of in her As part of the research behind ‘Insure Your Future’, we have absence and queries are answered without delay. interviewed individual employees as well as having had Catherine believes that the current landscape in the discussions with several firms on how they are supporting insurance space is ripe for seeking flexible working their employees. The following interview with Catherine gives arrangements. She explains, “Insurance is an excellent a fantastic insight into how the ability to job share has enabled profession with a variety of roles available. Many companies her to be fully present both personally and professionally. are willing to be flexible and utilise part-time staff due to Catherine began her insurance broking career with a resourcing issues we are facing.” Her insights suggest a traineeship 14 years ago and has not looked back since. growing recognition within the industry of the value of She says the variety of her role excites her the most: accommodating diverse working arrangements to address “I enjoy participating in site visits, workshops, meetings, staffing challenges and leverage a broader talent pool. presentations, and spending time with my colleagues, For parents contemplating a start or return to a career in underwriters and clients and building strong relationships.” broking, Catherine encourages open communication: As a mother to two young children, Catherine required “Be open and honest with what you need to assist you back flexibility to carry out her role as a Senior Associate at Lockton, into the workplace. Find an employer who is happy to work which involves the day-to-day servicing of global and corporate with you to get the right balance for you both.” clients’ accounts while contributing to business development.

insureyourfuture.com.au

NIBA is proud to present a first-of-its-kind initiative to promote insurance broking as a career of choice, Insure Your Future.

The aim of the initiative is to promote insurance broking as a career, attract more people into the profession and increase resources and information available about the profession.

NIBA’s dedicated Insure Your Future Committee will keep you updated on the project’s progress.

Do you have ideas or thoughts on what we should include?

Have you seen something similar being done well elsewhere?

Or do you just want to find out more about the initiative and how you can get involved?

Please email info@insureyourfuture.com.au or contact your state NIBA Committee representative.

insureyourfuture.com.au

NIBA / Special Feature

CHALLENGE YOUR THINKING

Speaking with Insurance Adviser, past director of Emjay Insurance Brokers and the 2017 Lex McKeown Trophy winner Jeff Murdoch shared what it takes to live the mantra of going ‘Beyond the Status Quo’ as a senior leader. Whether it’s addressing the knowledge gap, making insurance broking more attractive, or adapting to stay one step ahead in a dynamic landscape, he offered his perspective on some of the burning challenges prevalent in our industry today.

W

ith almost 44 years in the insurance industry, nine years in underwriting and over three decades in insurance, Jeff Murdoch has always embraced challenges in his illustrious career to stay ahead of the curve.

What’s his secret? Let’s find out. With this year’s NIBA Convention theme urging our industry and the profession to go ‘Beyond the Status Quo’, who better than Murdoch – someone who has lived, breathed and put this theme into practice – to share his insights as a senior industry leader.

CREATING CONFIDENT LEADERS

According to Murdoch, debate and interaction is a necessary part of professional growth, and one of the ways you can facilitate that growth is by surrounding yourself with people who challenge your thinking.

“Post-COVID, the world has gone through a fundamental shift,” he said.

“People are more likely to have meetings online via MS Teams or Zoom, but I don’t think it replaces direct contact. We’re all people and we all desire human contact.

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We all desire human acknowledgement, human discussion, and want to debate on both business and personal issues. This engagement and interaction is a very good process, and it often changes people’s views – it helps us to grow. You don’t grow unless you’re around people that challenge you and your thinking.”

“We need support and direction as people.

If people get that support and direction, they become confident. And confident people become better leaders. This way, you cultivate better cultural environments within the workforce,” he added.

our jobs better. Murdoch makes a strong case that everyone needs to shift their thinking when it comes to technology, so that intergenerational knowledge sharing can take place.

“How does a broker give advice if he doesn’t go to a person’s premises, if that’s what it requires? How does he get people to give honest opinions and answers if he doesn’t build trust? How do you build trust over a phone or over a computer?

“I’m not saying you have to spend the same time in face-to-face interactions as what we did in the past because technology

“If people get that support and direction, they become confident.

And confident people become better leaders. This way, you cultivate better cultural environments within the workforce.”

TECHNOLOGY IS AN ENABLER, NOT A REPLACEMENT

When it comes to technological disruption, we need to understand that technology is a support mechanism that can help us to do

is there to support us now, but it can’t replace it. Support and replacement are two different things,” said Murdoch.

“Everyone needs to adapt and change.

We’ve got to have a happy medium

NIBA / Special Feature

Jeff Murdoch, Past Director, Emjay Insurance Brokers and 2017 Lex McKeown Trophy Recipient

NIBA.COM.AU / 27

NIBA / Special Feature

of what society expects today. This is important so that intergenerational knowledge sharing can happen in a meaningful way. Do I think that some of my thinking [as a senior leader] has got to change? Yes, most definitely. But at the same time, younger generations also need to be open to adapting some of their patterns of thinking,” he added.

PROMOTING BROKING AS A CAREER OF CHOICE

Changing the language around how we talk about insurance broking to attract talent is one of the major challenges our industry and profession faces today. NIBA recently launched ‘Insure Your Future’, a talentattraction initiative aimed at promoting insurance broking as a career of choice.

got risk management, you’ve got sales and communications, you’ve got technical and social skills that are going to be developed.

As a profession, there are a lot of different areas under that umbrella which will suit different people in different ways.

“There’s a lot of opportunity in a lot of different areas of specialty. The trick is to not talk about ‘insurance’ as a term, but the skills that it will give you – the communication skills, the soft skills and the technical skills you’ll learn. These skills shall be valuable for the rest of your life. Even if you transition into something else, they will stay with you.

“Some people are naturally technical.

Others may want to get out and develop their social skills and their selling skills.

Some people desire interaction. Some don’t know what they want. So, you work with

“We’ve got to identify senior leaders and have them express their want to be involved. People will stay involved if they feel they are needed. We need to create that environment where senior leaders can see the success from their input.”

“Broking has a lot of branches in it. It’s great that NIBA – as the ‘one voice’ for the profession – is trying to shift how we talk about broking and create new pathways,” acknowledged Murdoch.

“Unfortunately, ‘insurance’ as a word is not sexy. When you think of ‘insurance’, it doesn’t conjure up an image of what could be a great career. But, when people do get into the industry, the majority of them tend to enjoy it. The industry provides a lot of support and training that a lot of other industries don’t have. All of us must be advocates!” he added.

MAKING THE INSURANCE INDUSTRY AN ATTRACTIVE PROPOSITION

To get around the challenge of ‘insurance’ as a term being decidedly unsexy, Murdoch suggests focussing on the many different transitory skills and job profiles that prospective entrants to the industry can get access to.

“We’ve got to use different terminology when we talk about the insurance industry as advocates, to make it more appealing,” said Murdoch.

“The insurance industry is just the overarching umbrella. Within it, you’ve

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those people to tailor their career to what suits them best,” he added.

THE VALUE OF MENTORING

A passionate advocate of the NIBA Mentoring Program, Murdoch has been a valued mentor who has been associated with the program since it started. Being part of the program made him realise that he truly enjoyed working with younger people to help advance their careers.

“I’ve been part of the NIBA Mentoring Program since its inception,” noted Murdoch.

“I was asked by a friend’s [Rebecca Wilson, Managing Director, Austbrokers ABS] daughter to help her as a mentor and get involved, which was very flattering. But I had no expectations. What I learned after doing it a couple of times is that I really enjoyed working with people and helping them advance their careers.

“I got satisfaction out of them enjoying the opportunity to advance their career just through my subtle support. As an individual, you’ve got to work out what makes you tick, and I really like working with people, it’s my passion.

“The relationships I’ve developed out of it have truly been fantastic. I usually

meet with my mentees on a regular basis, or they’ll take the initiative to reach out when needed.

“I’m catching up with a mentee who’s just changed to another international brokerage and wants to have a chat. The people vary, but the process is still the same.

You just tailor it to work in better ways with people’s personalities and their vision for personal growth,” said Murdoch.

ATTRIBUTES OF A GOOD MENTOR

Trust and honesty are the two most important things to establish in a successful mentor-mentee relationship. But, and it’s important to note, this is not a one-way street. It’s equally essential for both to be open to these discussions.

“The first thing that you try to establish is trust. And that’s followed with honesty,” said Murdoch.

“We create self-belief through those two combinations. And then you try and support the person in a manner that they can evaluate themselves and are accountable to themselves in the process.

“I’ve never had one person that didn’t want to be more successful than what they were before. All they wanted was different views on how they could actually go about it, and then get that honest feedback.

“If you’re going to ask me a question about something that you’ve done and desire the feedback, I’m not going to pull someone apart – but you’ve got to be prepared to receive honest feedback. The way you deal with people mightn’t be getting the best results. You could ask if they have thought of alternatives in how they approach people in order to get better outcomes,” said Murdoch.

IT’S A SUPPORTIVE INDUSTRY

Mr Murdoch highlighted that the insurance industry is a supportive place.

He underlined the fact that senior leaders such as himself get a lot of satisfaction by offering their input and guidance to help out young careers.

“It’s the one industry that you can approach anybody at any level. In the insurance industry, you really get genuine and honest support,” said Murdoch.

“I’ve seen that happen with one of my young mentees. I introduced him to the CEO of Zurich one day because he hadn’t met him. We had a chat and my mentee said to me that I wouldn’t have thought to do that – just go up and

NIBA / Special Feature

introduce myself. I told him that there’s nothing stopping you from going up and saying hello to people. And in fact, senior leaders want to be involved and they get a lot of satisfaction in seeing younger careers blossom.

“But at the same time, early career professionals have to be accountable to themselves and they have to have a passion for success. A lot of people do have it, but also, many of them can’t express it because they’re worried that they might have come across a little bit egotistical or a bit brash in their nature,” added Murdoch.

ADDRESSING THE KNOWLEDGE GAP

Murdoch spoke passionately about identifying senior leaders and getting them to express their want to be involved in the industry, which could be one of the ways through which a widening knowledge gap could be lessened. He gave his own example, about how being involved with the NIBA Mentoring Program made him feel valued as a senior leader and helped stay in touch with the industry, even after transitioning from full-time broking.

“People have always been coming and going in the industry. But the number of senior leaders who have exited the industry suddenly has been more evident in recent times. There are social influences like people wanting to retire, or other lifestyle choices. They may also want to do something post or in transition to retirement,” said Murdoch.

“There are ways in which one can stay in touch with the industry and the profession. I stay in touch, for example, through the NIBA Mentoring Program even though I’ve transitioned from doing five days a week broking.

“We’ve got to encourage more experienced people to be more engaged and connected with our industry as they transition. The gaps are in the above 45-year-old bracket. You’re always going to get a lot of 20 to 30-year-olds coming in.

It’s really about how we [as senior leaders] assist the younger brokers in their career so that they can then pass that knowledge on at a later date.

“We’ve got to identify senior leaders and have them express their want to be involved. People will stay involved if they feel they are needed. We need to create that environment where senior leaders can see the success from their

input. One way is through the NIBA Mentoring Program. Seeing the success stories of young people is a fantastic feeling. I wish I had someone, a mentor figure when I started.”

“You’ve got to create a need for senior industry leaders to be respected and wanted, within a life that’s transitioning. Everybody wants to be needed. Everybody wants to feel that they’re useful,” Murdoch reiterated.

TIPS FOR YOUNGER PEOPLE COMING INTO BROKING

What advice does Mr Murdoch have for younger brokers entering the profession?

He calls it the ‘simple old boring stuff’, but sometimes, it’s the simple things that can really make the difference.

“Be honest with yourself and what you want to achieve. You’ve got to have a clear view about yourself and what you want to achieve and what you actually have to forego to get there and in what period,” said Murdoch.

“If you want to be at a certain a position within a certain period of time, you’ve got to step back from day-to-day life and work out what steps you need to accomplish to progress to get to the next level. It’s an old

12 months ago, where they are today, and where they want to be in 12 months or up to three years.

“Unfortunately, in a lot of CVs that are running around, it looks very glossy on top, but when you sit down and delve into what they’ve actually been taught, it doesn’t do anyone justice to be put in a position where they can’t execute properly.

“I think that’s where NIBA comes to the fore, creating environments that generate these opportunities for younger people to look outside their own circle.

The more peer interactions they can have the better. The conversations they have early on will affect what their position is and how they execute on steps in their career,” noted Murdoch.

ADAPTING TO AN EVOLVING LANDSCAPE – EQ BEATS IQ

With the broking landscape evolving rapidly, adapting and staying on your toes is key. And this is where your emotional quotient (EQ) comes to the fore. Despite the evolution of broking through the decades, it still was, is and will be a relationship-driven business.

“EQ beats IQ when you’re looking to adapt. When things are evolving and you need to adapt, you’ve got to understand multiple things. You’ve got to understand where different kinds of people are coming from and work with them.” adage that to be accountable, you’ve actually got to put your goals down in front of you in writing. And then, you’ve got to measure them.

“This is really simple old boring stuff, but it is so effective. If you don’t visualise what you want to do, it’s going to be very difficult to progress. You’ve also got to be accountable to a time frame if you want to be more successful.

“Sometimes things come to you – it happened a lot in my career – just naturally. And that’s because you put in effort and people recognise that effort and so you’re rewarded accordingly. It doesn’t always work that way. Depending on where you are, you may need to change direction and your environment.

“When I get together with my mentees, we talk about where they thought they were

“EQ beats IQ [intelligence quotient] when you’re looking to adapt,” highlighted Murdoch.

“When things are evolving and you need to adapt, you’ve got to understand multiple things. You’ve got to understand where different kinds of people are coming from and work with them.

“You need to understand issues and how do to address those issues in different ways. You also need to work out an execution strategy and then communicate that strategy in a way that can get people around you to successfully execute it at the highest possible function they can.

“So, EQ always beats IQ when you need to adapt. You got to have an IQ, but if you don’t have an EQ, you can’t work with people and you can’t address issues successfully,” concluded Mr Murdoch.

NIBA.COM.AU / 29

FEATURE / Construction Insurance

LEGISLATION AND REGULATION BRING

NEW HOPE TO CONSTRUCTION The complex world of construction provides challenges aplenty, but we are moving towards a new, more robust industry – albeit slowly.

By MARTIN WANLESS

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FEATURE / Construction Insurance

NIBA.COM.AU / 31

FEATURE / Construction Insurance

T

he construction sector in Australia is rarely out of the headlines. From building defects and owners left with a huge mortgage and little to show for it to construction companies going under, the industry rarely fails to provide a story.

While there are some positive signs on the horizon, there are a number of challenges that need to be navigated over the coming months and years. And, in the short term at least, it’s likely to be more of the same, with companies struggling and shortcuts potentially being taken.

“The construction insolvency trend is forecasted to continue during Q1/Q2 of 2024 and will likely be maintained into Q3/Q4,” says David Boots, National Technical Head, Construction & Engineering/National Executive Adjuster, Crawford Specialty Loss Adjusting.

“Calls for further state and federal government assistance in the short to medium term, to counter labour and skill shortages, as well as inflationary pressures on material supplies, could lead to increasing risks associated with construction companies continuing to trade while potentially insolvent.”

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One of the consequential risks that emerges, says Glenn Ross, CEO at MECON, is a change in the quality of work.

“When building companies encounter financial difficulties, leading to liquidation, they will often look to cut costs, and cut corners, which can translate into sub-standard materials and building practices – which is why there is a limited insurance market for these risks.

“The claims received by construction insurers from this source have often been through the NCAT, VCAT/builder’s warranty channels before they are submitted as a claim against a construction policy. They can be complex and difficult because of the time-lapse and the predominance of defects – which are not insured by construction policies.”

Insurers are experiencing a surge in claims as projects are left incomplete and sites remain open, increasing the possibility of weather events, theft, or damage, leading to financial losses for various stakeholders, says Angela O’Neil, General Manager, Broking, at Resilium.

“This could potentially lead to an adjustment in insurance premiums as insurers reassess the risks involved. In

“THE NUMBER ONE THING IS TO UNDERSTAND YOUR CLIENT’S CORE BUSINESS. THIS MAY SOUND OBVIOUS BUT WHEN IT COMES TO CONSTRUCTION, THE RIGHT INSURANCE POLICY CAN MEAN THE DIFFERENCE BETWEEN A PROJECT BEING PROFITABLE OR NOT PROFITABLE.” – DAVID BOOTS, NATIONAL TECHNICAL HEAD, CONSTRUCTION & ENGINEERING/NATIONAL EXECUTIVE ADJUSTER AT CRAWFORD SPECIALTY LOSS ADJUSTING

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FEATURE / Construction Insurance

the medium term, insurers may become more cautious in underwriting construction projects, tightening their underwriting criteria and possibly increasing premiums to mitigate the heightened risk. In the long term, repeated instances of construction company failures could lead to a shrinking pool of insurers willing to cover construction risks, potentially resulting in a less competitive market and higher insurance costs for builders and developers, as well as an increase to builders warranty premiums and a decrease in availability.”

NEW CASH FLOW STRUGGLES COMPOUND THE EXISTING

The knock-on effects of the issues and challenges facing the construction industry are many.

David Sloan, NSW State Manager, CRD Building Consultants & Engineers, says, “Suppliers – for example, architects, engineers and subcontractors – are concerned with the construction industry landscape right now. Those concerns are then driving them to insist on more stringent payment terms, like requiring full payment upfront before materials are even ordered. This places cash flow pressure on builders where one delay causes a knock-on effect to all projects.”

“DEVELOP STRONG RELATIONSHIPS WITH THOSE INSURERS SPECIALISING IN CONSTRUCTION INSURANCE TO ACCESS THE BEST TRAINING ENVIRONMENT AND TO LEARN FROM THOSE WHO HAVE THE MOST SOUND UNDERSTANDING OF CONSTRUCTION INSURANCE.” – ANGELA O’NEIL, GENERAL MANAGER, BROKING AT RESILIUM

This is putting even more stress on an industry that’s already under immense strain.

“Many – or most – of the builders who have liquidated say that fixed-price contracts, combined with supply chain delays and increased costs, caused their businesses to fail,” says Ross.

“Many of the builders left standing either had, or have, moved to cost-plus models for residential home building. Those who are bound by state laws to adhere to fixed-price contracts are ensuring that they have included higher cost variation contingencies. The net effect is that building costs have increased dramatically since COVID caused supply chain delays.”

Sloan agrees: “Many builders on fixedprice contracts are not making any profit due to delays and inflation,” he says.

INCREASED REGULATION OFFERS LONG-TERM HOPE

The continued struggles within the construction industry have, of course, generated significant scrutiny from regulators and legislators, with NSW leading the way in attempting to tackle the issues present, and build a more robust and better regulated construction sector.

“Increased and improved legislation is absolutely required to build more

SUBCONTRACTORS UNDER SCRUTINY Many industries and sectors have been affected by recent regulation around subcontractors, and it’s another risk the construction sector is needing to manage exceptionally well.

Angela O’Neil says, “Recent legal developments and recovery actions by workers compensation insurers related to subcontractors have influenced insurers’ approaches to underwriting and claims management in the construction sector. Insurers may scrutinise subcontractor agreements more closely and impose stricter requirements to mitigate the risk. An added pitfall will be the potential for a lack of availability of affordable insurance to those small businesses who exclusively utilise subcontractors and labour hire.”

34 / INSURANCE ADVISER MAY 2024

FEATURE / Construction Insurance

confidence within the industry,” says Sloan.

“As an example, NSW has introduced the Design and Building Practitioners Act 2020 which applies to Class 2 developments (e.g. apartments) – it’s been in place since 2021.

Prior to that, there were several very public failures in high-rise apartments, including Opal Towers and Mascot Towers. With an increasing population in Sydney, it is critical that the public is confident in purchasing these units off the plan.

Ross says that the NSW hands-on approach should help build that confidence.

“In NSW, with the introduction of legislation and the development of the iCIRT, together with the NSW Building Commissioner taking a very visible, vocal and hands-on approach to improving construction quality and restoring consumer confidence, the construction industry in NSW – for the builders left standing – should be robust.

“Victoria is monitoring NSW initiatives and is starting to move in a similar direction. It still has issues that need a more in-depth and hands-on approach.

Until that happens, the construction industry and their consumers in Victoria are still exposed to considerable risk.

“Although the Queensland and Western Australia systems of construction industry

36 / INSURANCE ADVISER MAY 2024

management are different from each other – and elsewhere – they encounter less adverse media reporting around defective buildings. However, the builders there are under similar financial pressures to elsewhere and susceptible to the same foibles. Strengthening the construction industry in all states has gained national prominence since the Grenfell Tower/ Lacrosse fires and the Opal Towers issues.

The long-term outlook is for a more regulated and vastly improved construction industry in Australia.”

Sloan cautions, however, that costs could rise as a consequence.

“Naturally, increased legislation will inevitably increase cost and time on each project. Additional time is required to meet the design requirements under the Act. Time is money so the longer it takes, the more it costs, generally speaking. What all this means is that brokers and insureds should feel more confident that new buildings will comply with current Standards and will perform for the designed life expectancy of the building.”

SPECIALIST RELATIONSHIPS EVER MORE CRUCIAL For brokers working with construction clients, O’Neil says that keeping up to date with regulatory changes, as well as

PROJECT DURATION CAUSES CONCERN Glenn Ross says project duration has recently proved challenging for some insureds, and brokers need to be aware of clients’ projects that overrun.

“We understand that a number of recent claims against annual construction policies have been declined when projects exceeded the maximum duration for projects specified in the schedule. Unlike the value of a project, duration is not subject to Section 54, thus allowing such claims to be legitimately declined as they fall outside the policy parameters.

It was this recent trend that prompted us to provide cover to our clients under the Project Duration Extension endorsement.”

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FEATURE / Construction Insurance

educating clients about risk mitigation strategies, is critical.

So too, are strong relationships with specialist insurers.

“Develop strong relationships with those insurers specialising in construction insurance to access the best training environment and to learn from those who have the most sound understanding of construction insurance,” she says.

“Educate clients about the importance of comprehensive coverage, risk management strategies, and compliance with regulatory requirements to minimise exposures and protect their financial interests. It may not be the cheapest coverage that comes to the rescue after an event, but it will always be the most comprehensive coverage

“THOSE CONCERNS ARE THEN DRIVING THEM TO INSIST ON MORE STRINGENT PAYMENT TERMS, LIKE REQUIRING FULL PAYMENT UPFRONT BEFORE MATERIALS ARE EVEN ORDERED.” – DAVID SLOAN, NSW STATE MANAGER AT CRD BUILDING CONSULTANTS & ENGINEERS

that will bring peace of mind following a claim.”

Boots underlines that the right construction policy can determine whether or not a project is profitable.

“The number one thing is to understand your client’s core business,” he says.

“This may sound obvious but when it comes to construction, the right insurance policy can mean the difference between a project being profitable or not profitable.

“The standard ‘DE’ and ‘LEG’ defect wordings can produce significant claim adjustments depending on the nature of the project and/or works performed.

“Early claim notification is essential to achieve the best outcome for your client, and also to be able to manage contractor’s expectations and cash flow/ profit forecasts.”

DECENNIAL LIABILITY INSURANCE – A COMPLEMENT, NOT A REPLACEMENT Decennial liability insurance (DLI) is helping give buyers confidence in NSW. David Sloan explains.

“The DLI relates to Class 2 Apartment buildings in NSW. This insurance is intended as a first-resort policy obtained by the developer or builder, and it provides protection to subsequent purchasers of the units as it will cover major defects in common property elements for up to 10 years after completion of the building.

“The defects covered by decennial liability insurance include things such as: • the fire safety systems for a building within the meaning of the National Construction Code • waterproofing •a n internal or external load-bearing component of a building that is essential to the stability of the building, or a part of it (including but not limited to in-ground and other foundations and footings, floors, walls, roofs, columns and beams)

38 / INSURANCE ADVISER MAY 2024

• a component of a building that is part of the building enclosure, and • those aspects of the mechanical, plumbing and electrical services for a building that are required to achieve compliance with the National Construction Code.

“It is important to understand that while the insurer may cover the costs to repair the major defects, builders and developers may be required to contribute to the costs claimed against the DLI policy, as required by the insurer.”

O’Neil adds: “Brokers should understand that decennial liability insurance supplements rather than replaces traditional construction insurance policies. This type of policy provides additional protection against long-term risks and can be a valuable risk management tool for developers, contractors, and building owners. It is another detailed and complex cover for brokers to learn and understand so we can be there for our clients.”

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FEATURE / Marine Insurance

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FEATURE / Marine Insurance

CARRYING

THE LOAD

While geopolitical challenges continue to occupy marine operators, emerging threats need serious consideration.

By MARTIN WANLESS

NIBA.COM.AU / 41

FEATURE / Marine Insurance

W

ithin moments of the incident happening, images of the cargo ship, Dali, crashing into Baltimore’s Francis Scott Key Bridge – and its immediate collapse – were spreading across the globe.

The Dali was carrying nearly 4,700 containers – under half of its capacity – and from an insurance perspective at least, put the importance of marine cover front and centre for insurers, brokers, underwriters and those involved in the shipping industry.

Of course, the Dali isn’t the only incident in recent times to cause pause for thought.

“The industry has been getting a lot of attention over the last few years, with the supply chain challenges and shipping cost inflation we saw through Covid, the disruptions to shipping in the Red Sea and the Panama Canal, the challenges of shipping goods around the world and the need for appropriate insurance protection are a more regular topic of conversation than they have been in the past,” says Daniel Morrison, Head of Marine Portfolio at NTI. “From a non-insurance perspective, there’s a lot more understanding of the benefits of insurance or the challenges 42 / INSURANCE ADVISER MAY 2024

of insuring goods and the need to be properly insured to protect customers against some of these changing and challenging events. And not only is there a lot of conversation about cargo, but – as we’ve seen with attacks on ships in the Gulf of Aden, and the incident in Baltimore – vessels themselves are also getting a lot of attention.”

NEW GEOPOLITICAL CHALLENGES EMERGE

The global geopolitical landscape perhaps affects the marine and cargo industries more than most, and while the RussiaUkraine war continues to impact, new situations are continually emerging.

“The situation in the Red Sea has significantly impacted marine insurance due to a surge in attacks on commercial ships,” says Jill Murphy, Managing Director at RedSky Insurance.

“This has prompted some shipping companies to reroute vessels via the Cape of Good Hope, adding significant time and fuel costs to their journeys.

“Overall, the crisis has led to a sharp increase in marine insurance war risk

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FEATURE / Marine Insurance

premiums with some insurers cancelling cover for war risks in the regions altogether.”

Of course, navigating political instability comes with the territory for marine insurers.

“Where it does pose a challenge is the additional costs that can come about from rerouting and the subsequent delays, like we are currently seeing due to instability with the Red Sea,” says Brett Hamilton, Product & Pricing Lead for Marine at GT Insurance.

“This has many flow-on effects. For example, it impacts those industries that manage their inventory on a just-in-time basis, and it may also adversely affect perishable commodities.”

Hamilton says that while attention is focused on the geographical locations already mentioned, a potentially greater risk is on the horizon in the South China Sea with the People’s Republic of China/ Taiwan situation.

“If the People’s Republic of China continues with their ambitions to

“THE SITUATION IN THE RED SEA HAS SIGNIFICANTLY IMPACTED MARINE INSURANCE DUE TO A SURGE IN ATTACKS ON COMMERCIAL SHIPS.” – JILL MURPHY, MANAGING DIRECTOR AT REDSKY INSURANCE

bring Taiwan back under their rule, blockades creating further disruption in established shipping lanes are not out of the question.”

THE CYBER THREAT

Generally in Australia, cyber attacks are excluded in marine insurance policies.

However, this is an area that brokers need to be talking to marine clients about – as the threat is as real for businesses operating in this space as any other.

“It’s not a new threat, but it does seem as if the adoption of cyber cover has been limited in logistics,” says Morrison.

“The global shipping industry’s connected nature means it needs to be very conscious and aware of how to manage those situations.”

It’s another area for brokers to provide value for clients operating in this space, as Hamilton outlines.

“What occurred with DP World Ports last year highlighted how much of an issue a largescale cyber attack is becoming,” he says.

HOW DISRUPTORS AND COMMODITISATION ARE CHANGING MARINE INSURANCE Brett Hamilton says that new entrants to the market and a change of approach from some major players is changing the marine insurance sector.

“Locally, there has been a change in some of the existing smaller marine players as well as the introduction of some new disruptors challenging the current way of operating in the marine market. In addition to new entrants, the major players have, to varying degrees, continued to push towards commoditisation of marine products, particularly in the cargo and carriers space.

“To some extent, that commoditisation is making market conditions more favourable to the new entrants, including underwriting agencies, whose agility is particularly attractive to brokers in the SME space.

“The commoditisation strategy has advantages and disadvantages. While creating savings and bringing process efficiencies, it has reduced the traditional ability to offer specialised services and technical expertise.

This has, we feel, contributed to the shortage of experienced marine underwriters, claims consultants, and development personnel evident in the marine market.

“The move towards commoditisation means that to remain competitive, insurers must invest in systems that provide ‘whole of cycle’ product service online.

While this means a large percentage of policies require minimum intervention from underwriters, it does affect the traditional relationships the industry was established on.”

44 / INSURANCE ADVISER MAY 2024

FEATURE / Marine Insurance

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NIBA.COM.AU / 45

FEATURE / Marine Insurance

THE BENEFITS OF BEING IN CONTROL Jill Murphy says more education is needed about the benefits of controlling the purchase of insurance when buying or selling goods.

“So many times we see importers buying goods cost, insurance, freight (CIF) and not having control of the insurance in the event of a claim.

“When goods are imported into Australia, CIF cover will cease at the port of discharge. So an importer could have goods arrive at, for example, the Port of Melbourne and have no insurance protection for the goods between the port and their warehouse. It can be difficult to find an insurer to protect that last leg of the journey because they are wary of any pre-existing damage.

“If the goods arrive in port damaged, the importer has to rely on a foreign insurer paying their claim – an insurer with whom they have no relationship and with no one to advocate on their behalf. Often, they are dealing with an insurer who speaks a different first language and who works in different time zones. They then must rely on a foreign insurer to settle their claim in a timely manner.

“It would be far simpler for them and less stressful if they had used a local insurer with whom they have an ongoing relationship.”

46 / INSURANCE ADVISER MAY 2024

“There was significant disruption and delays to local cargo deliveries creating problems similar to those currently being experienced in the Red Sea.”

REDUCING THE RISK

Risk mitigation strategies are essential for every client, and in this space, Morrison says it’s important not to assume knowledge.

“In the SME space in particular, people who take a cargo product aren’t cargo buyers or sellers. They see themselves as, for example, T-shirt manufacturers, or meat producers. They don’t see themselves as shippers.

“So, for those SME clients, it’s important to go through the basics – how to pack goods for shipping, how to make sure there are no holes in the containers, and how to understand contractual agreements with logistics partners and freight forwarders.

“For example, we had a client that imports and exports food products, and the ventilation wasn’t set correctly in the container. It wasn’t until our risk engineer worked with them and spotted this as an issue that they realised they needed to pay attention to it.

“Sometimes, the most simple things are the most important.”

INSURANCE BROKERS

FEATURE / Marine Insurance

CODE OF PRACTICE NIBA launched the 2022 Insurance Brokers Code of Practice on 1 March 2022, and it came into effect on 1 November 2022. It is important that all members have implemented the necessary policies and procedures to comply with their new Code obligations. A number of resources are available on the NIBA website to assist members in implementing the Code.

For a copy of the Code, visit niba.com.au/insurance-brokers-code-of-practice

S&P GLOBAL RATINGS

*For the S&P Global Insurer Financial Strength Ratings Definitions visit: https://www.niba.com.au/resource/standardandpoors.pdf

Copyright © 2023 S&P. This material is reproduced with the permission of S&P. Reproduction of this the S&P Information in any form is prohibited without S&P’s prior written permission. Neither S&P, its affi liates 25/7/2022 1:40 pm nor any of their third-party licensors: (a) guarantee the accuracy, completeness or availability of the S&P information, or (b) make any warranty, express or implied, as to the results to be obtained by Insurer Financial Strength Ratings or any other person from the use of the S&P information or any other data or information included therein or derived therefrom, or (c) make any express or implied warranties, including any warranty of merchantability or fitness for a particular purpose or use, or (d) shall in any way be liable to Insurer Financial Strength Ratings or any recipient of the S&P information for any inaccuracies, errors, or omissions, regardless of cause, in the S&P information or for any damages, whether direct or indirect or consequential, punitive or exemplary resulting therefrom.

IA0722p58-60 Events Pictorial.indd 59

For a copy of the Code, visit niba.com.au/code

Ratings are statements of opinion, not statements of fact or recommendations to buy, hold, or sell any securities. S&P Global (Australia) Pty. Ltd. holds Australian financial services licence number 337565 under the Corporations Act 2001. S&P Global credit ratings and related research are not intended for and must not be distributed to any person in Australia other than a wholesale client (as defined in Chapter 7 of the Corporations NIBA.COM.AU / 47 Act). Ratings are based on information received by Ratings Services. Other divisions of S&P Global may have information that is not available to Ratings Services.

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At Newline Australia, we underwrite:

Life Science, Clinical Trials, Public & Products Liability insurance, Professional Indemnity (PI) insurance, Financial Institutions insurance, Directors & Officers insurance and Crime insurance

Key Liability Occupations:

Key PI Occupations:

Key FI Occupations:

• Alternative & Complementary medicines • Automotive • Biotechnology • Clinical Trials / Research • Cosmeceuticals / Nutraceuticals • Defence – machinery, weaponry & protective equipment • Life Science / Pharmaceuticals • Medical & Surgical Devices (including invasive implants) • Medical Equipment / Products • Medicinal Cannabis • Mining • Rail – Products, Maintenance, Locomotive Engineering, operators, Rolling Stocks & Engine Manufacturers • Universities • Veterinary Medicines

• Accountants • Architects • Engineers • Environmental Consultants • Insurance Brokers / Underwriting Agencies • Law Firms • Management Consultants • Miscellaneous Risks • Real Estate Agents • Universities • Valuers

• Fund Managers/Investment Managers • Stock Brokers • Managed Investment Schemes • Excess lines for Financial Planners

Will Clarke

Stephen Mullaly

Linda Sepala

Head of Liability

Head of Professional Indemnity

Head of Financial Lines

Mobile: 0477 222 534 Phone: 03 9912 4021 Email: wclarke@newlinegroup.com.au

Mobile: 0400 051 712 Phone: 03 9912 4017 Email: smullaly@newlinegroup.com.au

Mobile: 0499 504 185 Phone: 03 9912 4010 Email: lsepala@newlinegroup.com.au

Key D&O • Insured firms can be not-for-profit, privately held or publicly traded • Side A/DIC placements • Medicinal Cannabis risks • All industry sectors, both commercial and financial, are underwritten

Key Crime Commercial Crime Insurance is also offered alongside other Financial Lines products

Newline Australia Insurance Pty Ltd ABN 81 118 089 651 NIBA.COM.AU / 43 / 51 NIBA.COM.AU PO Box 16208 Collins St West VIC 8007 PH: 03 9999 1901 newlinegroup.com.au quotes@newlinegroup.com.au Newline Australia Insurance Pty Ltd is wholly owned by Newline Underwriting Management Ltd and 100% secured by Newline Syndicate 1218 at Lloyd’s (NWL1218)

COMMUNITY HUB

52 / INSURANCE ADVISER MAY 2024

COMMUNITY HUB

Advertise with the most influential and trusted voice in the Australian intermediated insurance Industry - NIBA Who we are

Our print and online publications are the official source for industry news, events and information for members of the National Insurance Brokers Association (NIBA).

Who we reach

Our publications reach four core audiences: insurance brokers, senior executives at major insurers, underwriters and financial services professionals and loss assessors.

What we do for your brand

Through integrated packaging we set your brand apart from the rest. We break through the clutter to provide you with prime positioning and special advertising opportunities, placing you directly in front of NIBA members. THIS IS NIBA

What we do

• Print publications including Insurance Adviser • e-Newsletters including the weekly Broker Buzz newsletter • NIBA website • Need A Broker website • Targeted email campaigns • Events – NIBA Annual Convention

Contact Wayne Egelton National Partnerships Manager E: wegelton@niba.com.au

NIBA.COM.AU / 53

INSURER STRENGTH RATINGS

BEST’S

NEW ZEALAND

FINANCIAL STRENGTH RATINGS

The following is a list of AM Best Financial Strength Ratings (FSRs) assigned to insurance companies in Australia and New Zealand.

Ratings as at 25 April 2024.

Contact: Mr. Rob Curtis Co-CEO & Managing Director A. M. Best Asia-Pacific (Singapore) Pte Ltd. Tel: +65 9633 6118 Email: rob.curtis@ambest.com

AUSTRALIA

RATING

LIFE, ANNUITY AND ACCIDENT General Reinsurance Life Australia Ltd.

A++/STABLE

PROPERTY/CASUALTY Ansvar Insurance Limited

A-/STABLE

First American Title Insurance Company of Australia Pty Limited

A/STABLE

General Reinsurance Australia Ltd

A++/STABLE

Guild Insurance Limited

A-/STABLE

Pacific International Insurance Pty Limited

B++/STABLE

The New India Assurance Company Limited (Australia Branch)

B++/STABLE

Rating Disclosure: Use and Limitations: A Best’s Credit Rating (BCR) is a forward-looking independent and objective opinion regarding an insurer’s, issuer’s, or financial obligation’s relative creditworthiness. The opinion represents a comprehensive analysis consisting of a quantitative and qualitative evaluation of balance sheet strength, operating performance and business profile or, where appropriate, the specific nature and details of a security. Because a BCR is a forward-looking opinion as of the date it is released, it cannot be considered as a fact or guarantee of future credit quality and therefore cannot be described as accurate or inaccurate. A BCR is a relative measure of risk that implies credit quality and is assigned using a scale with a defined population of categories and notches. Entities or obligations assigned the same BCR symbol developed using the same scale, should not be viewed as completely identical in terms of credit quality. Alternatively, they are alike in category (or notches within a category), but given there is a prescribed progression of categories (and notches) used in assigning the ratings of a much larger population of entities or obligations, the categories (notches) cannot mirror the precise subtleties of risk that are inherent within similarly rated entities or obligations. While a BCR reflects the opinion of A.M. Best Rating Services, Inc. (AMBRS) of relative creditworthiness, it is not an indicator or predictor of defined impairment or default probability with respect to any specific insurer, issuer, or financial obligation. A BCR is not investment advice, nor should it be construed as a consulting or advisory service, as such; it is not intended to be utilised as a recommendation to purchase, hold or terminate any insurance policy, contract, security, or any other financial obligation, nor does it address the suitability of any particular policy or contract for a specific purpose or purchaser. Users of a BCR should not rely on it in making any investment decision; however, if used, the BCR must be considered as only one factor. Users must make their own evaluation of each investment decision. A BCR opinion is provided on an “as is” basis without any expressed or implied warranty. In addition, a BCR may be changed, suspended, or withdrawn at any time for any reason at the sole discretion of AMBRS. *Denotes FSR is under review with developing implications.

54 / INSURANCE ADVISER MAY 2024

RATING

COMPOSITE Quest Insurance Group Limited

B/STABLE

LIFE, ANNUITY AND ACCIDENT American Income Life Insurance Company (New Zealand Branch)

A/STABLE

Chubb Life Insurance New Zealand Limited

A/STABLE

Co-operative Life Limited

B++/STABLE

DPL Insurance Limited

B++/STABLE

Fidelity Life Assurance Company Limited

A-/STABLE

Foundation Life (NZ) Limited

A-/STABLE

General Reinsurance Life Australia Limited (New Zealand Branch)

A++/STABLE

Momentum Life Limited

B++/STABLE

Partners Life Limited

A/STABLE

Pinnacle Life Limited

B+/STABLE

PROPERTY/CASUALTY Accuro Health Insurance Society Limited

B u/DEVELOPING*

Aioi Nissay Dowa Insurance Company, Limited (New Zealand Branch)

A+/STABLE

Beneficial Insurance Limited

B++/STABLE

First American Title Insurance Company of Australia Pty Limited (New Zealand Branch)

A/STABLE

FMG Insurance Limited

A/STABLE

General Reinsurance Australia Ltd (New Zealand Branch)

A++/STABLE

Mitsui Sumitomo Insurance Company Limited (New Zealand Branch)

A+/STABLE

New Zealand Medical Indemnity Insurance Limited

B+/STABLE

Pacific International Insurance Pty Ltd (New Zealand Branch)

B++/STABLE

Police Health Plan Limited

A-/STABLE

Provident Insurance Corporation Limited

B/POSITIVE

The New India Assurance Company Limited (New Zealand Branch)

B++/STABLE

Tokio Marine & Nichido Fire Insurance Company Limited (New Zealand Branch)

A++/STABLE

Tower Limited

A-/STABLE

Union Medical Benefits Society Limited

A/STABLE

Veterinary Professional Insurance Society Incorporated

B/STABLE

Virginia Surety Company, Inc. (New Zealand Branch)

A+/STABLE

S&P GLOBAL

AUSTRALIA

INSURER FINANCIAL STRENGTH RATINGS

AA-/STABLE

Achmea Schadeverzekeringen N.V.

A/STABLE

AIG Australia Limited

A/POSITIVE

Allianz Australia Insurance Ltd.

AA-/STABLE

Allied World Assurance Co. Ltd.

A/WATCH POS

Berkshire Hathaway Specialty Insurance Company

AA+/STABLE

BHP Marine & General Insurances Pty Ltd.

A-/STABLE

Chubb Insurance Australia Ltd.

AA-/STABLE

Factory Mutual Insurance Company

A+/POSITIVE

Great Lakes Insurance S.E (Australia Branch)

AA-/POSITIVE

Insurance Australia Ltd.

AA/STABLE

Liberty Mutual Insurance Company Limited

A/STABLE

AA-/STABLE

Mitsui Sumitomo Insurance Company Limited

A+/STABLE

A/STABLE

NorthStandard Ltd.

A/STABLE

QBE Insurance (Australia) Ltd.

A+/STABLE

QBE Insurance (International) Ltd.

A+/STABLE

Society of Lloyd’s

AA-/STABLE

Sompo Japan Insurance Inc.

A+/STABLE

Contact: Craig Bennett, S&P Global Ratings, 03 9631 2197

RATING

NON-LIFE INSURERS AA Insurance Ltd. AIG Insurance New Zealand Ltd. Aioi Nissay Dowa Insurance Co., Ltd

NON-LIFE INSURERS AAI Ltd.

The following is a list of S&P Global Ratings insurer financial strength ratings assigned to insurance companies in Australia and New Zealand. Ratings as at 26 April 2024.

NEW ZEALAND

RATING

A+/STABLE

Allianz Australia Insurance Limited

AA-/STABLE

Berkshire Hathaway Specialty Insurance Company

AA+/STABLE

Chubb Insurance New Zealand Ltd.

AA-/STABLE

Southern Cross Benefits Limited

A/STABLE

Factory Mutual Insurance Company

A+/POSITIVE

Tokio Marine & Nichido Fire Insurance Co., Ltd.

A+/STABLE

Great Lakes Insurance SE

AA-/POSITIVE

XL Insurance Company SE

AA-/STABLE

Hannover Life Re of Australasia Ltd.

AA-/STABLE

Zurich Australian Insurance Ltd.

AA-/STABLE

IAG New Zealand Ltd.

AA/STABLE

LENDERS MORTGAGE INSURERS

Medical Insurance Society Ltd.

A/STABLE

Arch Lenders Mortgage Indemnity Ltd.

A/STABLE

Helia Insurance Pty Ltd.

A/STABLE

QBE Lenders' Mortgage Insurance Ltd.

A+/STABLE

Mitsui Sumitomo Insurance Co. Ltd (New Zealand Branch)

A+/STABLE

NorthStandard Ltd.

A/STABLE

QBE Insurance (Australia) Ltd.

A+/STABLE

Society of Lloyd’s

AA-/STABLE

Southern Cross Benefits Ltd.

A/STABLE

Southern Cross Pet Insurance Ltd.

A/STABLE

Teleco Insurance (NZ) Ltd.

BBB+/STABLE

Tokio Marine & Nichido Fire Insurance Co. Ltd. (New Zealand Branch) A+/STABLE

LIFE INSURERS AIA Australia Ltd.

A+/STABLE

Challenger Life Company Ltd.

A/STABLE

MetLife Insurance Ltd.

A+/STABLE

REINSURERS Aspen Insurance UK Ltd.

A-/STABLE

Berkley Insurance Company

A+/POSITIVE

Vero Insurance New Zealand Ltd.

AA-/STABLE

General Reinsurance Australia Ltd.

AA+/STABLE

Vero Liability Insurance Ltd.

AA-/STABLE

General Reinsurance Life Australia Ltd.

AA+/STABLE

AA-/STABLE

Hannover Life Re of Australasia Ltd.

AA-/STABLE

Hannover Rück SE

AA-/STABLE

HDI Global SE

A+/STABLE A+/STABLE

Zurich Australian Insurance Ltd.

HEALTH INSURERS NIB NZ Ltd.

A/STABLE

HDI Global Specialty SE

Southern Cross Medical Care Society

A+/STABLE

Munchener Ruckversicherungs-Gesellschaft (Munich Reinsurance Co) AA-/POSITIVE

LENDERS MORTGAGE INSURERS Helia Insurance Pty Ltd. (New Zealand Branch)

A/STABLE

QBE Lenders’ Mortgage Insurance Ltd.

A+/STABLE

LIFE INSURERS Asteron Life Ltd.

AA-/STABLE

Medical Life Assurance Society Ltd.

A/STABLE

NIB NZ Insurance Ltd.

A/STABLE

REINSURERS HDI Global Specialty SE

A+/STABLE

Munich Reinsurance Co. of Australasia Ltd.

AA-/POSITIVE

Pacific Life Re (Australia) Pty Ltd

AA-/STABLE

QBE Blue Ocean Re Ltd.

A+/STABLE

RenaissanceRe Europe AG

A+/STABLE

RGA Reinsurance Co. of Australia Ltd.

AA-/STABLE

SCOR Global Life Australia Pty Ltd.

A+/STABLE

SCOR Reinsurance Asia Pacific Pte Ltd.

A+/STABLE

Swiss Re Asia Pte. Ltd., (Australia Branch)

AA-/STABLE

Swiss Re International SE

AA-/STABLE

Swiss Re Life & Health Australia Ltd.

AA-/STABLE

Transatlantic Reinsurance Company

AA+/STABLE

* See page 47 for S&P Global disclaimers and additional information

NIBA.COM.AU / 55