Insurance Adviser November 2023

NOVEMBER 2023

AN UNFORGETTABLE NIBA CONVENTION Relive the best moments inside

Features: PREPARING FOR INTERRUPTION Business interruption

NEW RISKS IN IMPORT AND EXPORT Import/export insurance

Look inside: 2023 NIBA GALA DINNER AND AWARDS

An evening of recognising the standout talent in broking

WE ARE YOUR VOICE

CONTENTS

November 2023

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

NIBA Editor Virat Nehru

Editorial enquiries

FEATURES 14 HIGHLIGHTS FROM THE 2023 NIBA CONVENTION Relive the best moments from an unforgettable Convention

E: editor@niba.com.au

National Sales Manager Tony May E: tmay@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.

24 CELEBRATING STANDOUT TALENT Recognising the best of the industry and the broking profession

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.

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

33 A TIRELESS ADVOCATE FOR INSURANCE BROKING A conversation with the 2023 Lex McKeown recipient Gary Seymour NIBA.COM.AU / 3

CONTENTS

November 2023

FEATURES 36

PREPARING FOR INTERRUPTION

With summer approaching, business interruption is back in the spotlight

44

IN EVERY ISSUE

NORMALITY RETURNS, BUT NEW RISKS ARE EMERGING IN IMPORT/EXPORT

NIBA CEO Welcome..................................... 6 Member Benefits ............................................. 8

As things return to pre-pandemic levels, brokers need to stay alert

EVENTS Forthcoming Events.................................... 10

REPRESENTATION All About Disclosure .................................... 13

REFERENCE Community Hub .......................................... 52 Insurer Strength Ratings .............................. 58

DISPLAY ADVERTISING INDEX – NOVEMBER 2023 Vero.......................................................... IFC

Insure Your Future................................. 17

NTI Marine............................................... 47

QBE................................................................5

Liberty........................................................ 23

Ebix.............................................................49

Allianz............................................................7

Tech Assessing........................................39

ASR............................................................... 51

UAC............................................................... 9

IUA................................................................41

Code of Practice.................................... 57

Hunter.......................................................... 11

Our Ark......................................................43

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

If you’d like to advertise your products and services through NIBA, please contact Tony May today on (02) 9459 4303 4 / INSURANCE ADVISER NOVEMBER 2023

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CEO / Welcome

TOWARDS NEW MILESTONES

T

he date 1 November 2023 marked a milestone in terms of the self-regulation of insurance brokers and NIBA’s commitment to professionalism. The full provisions of the 2022 Insurance Brokers Code of Practice came into effect, including commission disclosures for retail clients. Of course, these aren’t the only new provisions of the new Code, the rest of which have been in effect since November 2022.

It hasn’t been plain sailing, and mistakes have been made along the way, but the key is that as a profession, insurance brokers have moved forward, and have made a commitment to their clients that collectively delivers a Code delivering unprecedented levels of professional commitment, ethical behaviour, transparency, and accountability. At the time of writing, there is no legislation or draft legislation that promotes these levels of disclosure. Things never stand still, and we will continue to review the Code, including the formal three-year review due in 2025. But right now, it’s about supporting brokers in delivering the right outcomes for clients.

This year will be the first full year that Code compliance applies to the new Code. I believe this will result in a much better outcome in terms of recording breaches and gaining productive insights into improving systems and processes in broking practices. The recent annual IBCCC Data Report for 2022 showed that while breach reporting increased by 17%, the number of overall breaches reduced by 5%. This highlights the subscribers’ commitment to the Code and the Code principles, although the IBCCC was concerned that there are still 45% of subscribers not recording breaches.

I believe the new Code goes a long way in addressing this, as subscribers will see much clearer guidelines for compliance under the new Code. A lot of feedback has been that there is uncertainty and ambiguity in the old Code.

The way these are reported back to the IBCCC has also been flagged by subscribers as being complex, and we have a working group established with members and the IBCCC to address these concerns. Overall, I believe this will deliver better outcomes.

Speaking of delivering, the NIBA 2023 Convention at the Star on the Gold Coast certainly delivered on the promise of “thinking differently”. It was great to see the broker community attend in great numbers, with a diverse range of delegates not seen at any other industry conference.

There were representatives from large internationals to small specialist and boutique businesses, and everything in

6 / INSURANCE ADVISER NOVEMBER 2023

between, all coming together to celebrate, learn and grow. I would like to take this opportunity to thank the Convention Committee headed by Steven Hill, for their time, and importantly their preparedness, to deliver on the brief of thinking differently. The Convention certainly did deliver a number of different concepts, and the overwhelming feedback is that delegates and sponsors alike gained immensely from the experience.

The Convention finale was a gala event recognising those who stood out this year. Congratulations to Barry Sonter and Taylor Burstow who won the coveted Broker of the Year and Young Broker of the Year awards respectively, both of whom spoke exceptionally in their acceptance speeches and demonstrated the characteristics that contributed to their award wins. Congratulations also to Charmaine Field, who won the inaugural Claims Broker of the Year award, and Paula Cruden for her work with not-for-profit organisations, who won the Community Excellence award. A record number of respondents in our broker market survey this year saw Vero take out the Large General Insurer of the Year, Liberty Specialty Markets the Specialist Insurer of the Year Award, and NTI the Underwriting Agency of the Year Award. Congratulations to all for helping to raise the standard of service and professionalism in insurance.

We now look ahead to 2024 when the NIBA Convention will be held in Adelaide in October.

PHILIP KEWIN Chief Executive Officer, NIBA

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NIBA / Member Benefits

GET TO KNOW THE NIBA TEAM and other industry stakeholders. We updated the NIBA Constitution and refreshed our database and website, but the full benefits of this are still just being realised. The recent NIBA Convention was something we are all proud of. Given the crowded space for conventions, it proved there is still a demand for an industry-wide Convention.

PHILIP KEWIN NIBA CEO How long have you worked at NIBA? Two years.

Congratulations on your two-year anniversary as NIBA CEO. Looking back, what are some highlights for you in these last two years?

One of the highlights has been part of the launch of the 2022 Insurance brokers Code of Practice and the way it has been embraced by brokers, insurers

What are some initiatives that excite you when you look ahead?

We launched ‘Insure Your Future’ at the Convention and we’ve been overwhelmed by the positive response. It’s still in its early stages, but this initiative is not only about encouraging school leavers, graduates and career changers to pursue insurance broking as a career, it also promotes and enhances the value of insurance brokers in the broader community.

What’s the last show or series that you binge-watched?

I realised I had not watched the final two seasons of How I Met Your Mother so have been binge-watching that from start to finish, but for something a little heavier I’ve been glued to Succession. I find the characters very unappealing, but it is strangely addictive.

NIBA SAYS CONGRATULATIONS NIBA CONGRATULATES THE FOLLOWING MEMBERS FOR RECEIVING THEIR QPIB DESIGNATIONS Angelene Eynon, Westside Insurance Specialist Travis Head, Barrack Broking Manisha Sharma, Link Insurance Brokers Pty Ltd Trent Sampson, Webinsure Liam Knight, AIE Insurance Broking Group Paul Canavan, Aon Risk Services Alisha Cornish, Steadfast Taswide Insurance Brokers Pty Ltd

NIBA CONGRATULATES THE FOLLOWING MEMBER FOR BECOMING AN ASSOCIATE MEMBER Hunta Brider, Aon Risk Services Australia Ltd

ABOUT NIBA OUR MISSION

NIBA is the one voice for insurance brokers in Australia, representing their interests and promoting high standards of professionalism and competence.

OUR OBJECTIVES Representation

We represent the interests of members and their clients to governments, regulators, industry stakeholders, the media and the community in a manner that is respected and relevant. We have forged strong relationships at a state and national level to ensure that your interests are represented.

8 / INSURANCE ADVISER NOVEMBER 2023

Professionalism

We set and promote high standards of professional practice for insurance brokers for the benefit of their clients and the community through the development of professional standards, QPIB, CPD accreditation and the Insurance Brokers Code of Practice.

Community

We provide members with opportunities to meet, share, grow and prosper, and build professional networks with the wider intermediated insurance community that will last throughout whole careers.

GET IN TOUCH!

Whatever your age, or level of experience, NIBA ha s brokers’ best interests at the core of everything we do. Fin d out what we can do to help be nefit your business and your tea m at niba.com.au/membe rship

NIBA / Events

STAY UPDATED!

NIBA EVENTS

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

UPCOMING EVENTS 2023 NIBA/UAC PERTH UNDERWRITING EXPO WHERE: Optus Stadium, 333 Victoria Park Dr, Burswood, Perth WHEN: Wednesday 15 November 2023 Looking to stay ahead of the curve in the everevolving world of insurance? Join us for the annual 2023 NIBA/UAC Underwriting Expo.

Discover the latest products and services from a range of underwriters and explore new opportunities to grow your business.

It is recommended that brokers download the UAC event app​in advance. This will assist with scanning the entry/exit codes, exhibitor QR codes and support allocation of CPD points.

2023 NIBA TASMANIA MEMBER UPDATE AND NETWORKING FUNCTION WHERE: T42 Hobart, Franklin Wharf 4, Hobart, Tasmania WHEN: Monday 20 November 2023 NIBA CEO, Philip Kewin, Vice President, Nicholas Cook and the Vic/Tas Committee

10 / INSURANCE ADVISER NOVEMBER 2023

invite you to join them for an exclusive evening of celebration and networking.

Celebrate 2023 in style at an iconic waterfront venue, which showcases some of Tasmania’s best produce, while members of NIBA’s executive team provide insights into their strategic priorities for the upcoming year.

Spaces at this event are strictly limited, register today to secure your spot.

2023 NIBA VIC END OF YEAR GOLF PARK EVENT WHERE: 23 Aughtie Drive, Albert Park, VIC WHEN: Thursday 30 November 2023 Join us in celebrating the end of the year at the 2023 NIBA Vic End of Year Golf Park event.

Don’t miss out on this unique opportunity to connect with your peers, all while enjoying the perfect mix of golf, mini golf, and relaxation at the exclusive rooftop bar of Melbourne Golf Park.

Melbourne Golf Park is the ultimate haven for golf enthusiasts of all skill levels. And a recently constructed

Check out what is happening close to yo u and registe r via the events cale ndar at niba.com.a u/ events

rooftop bar offers panoramic vistas of the city skyline and the tranquil splendour of Albert Park Lake.

During the event, you can practice your golf swing at the driving range and mini golf, enjoy your beverages and refreshments in a rooftop bar, and our professional photographer will be on hand to capture all the fun.

2023 NIBA NSW WESTERN SYDNEY CHRISTMAS BOWLS EVENT WHERE: 79 Castle Street Castle Hill, NSW WHEN: Tuesday 7 December 2023 Celebrate the end of the year at the 2023 NIBA NSW Western Sydney Christmas Bowls event. Don’t miss out on this fantastic opportunity to relax and network with fellow professionals during an enjoyable lawn bowls competition followed by drinks and light refreshments.

This event will be held at the Castle Hill Bowling Club. This club, affectionately referred to as “The Friendly Club,” is home to two of Sydney’s finest lawn bowling greens.

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NIBA / Representation

WE ARE YOUR VOICE!

The following is an overview of some of the things NIBA has been examining on behalf of members.

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.

INQUIRY INTO INSURERS’ RESPONSES TO 2022 MAJOR FLOOD CLAIMS

NIBA has provided a submission to the House of Representatives Standing Committee on Economics inquiry into insurers’ responses to 2022 major flood claim.

The inquiry looked at such areas as: • the experiences of policyholders before, during and after making claims; • the different types of insurance contracts offered by insurers and held by policyholders; • timeframes for resolving claims; • obstacles to resolving claims, including factors internal to insurers and external, such as access to disaster hit regions, temporary accommodation, labour market conditions and supply chains; • insurer communication with policyholders; • accessibility and affordability of hydrology reports and assessments to policyholders; • affordability of insurance coverage to policyholders; • claimants’ and insurers’ experience of internal dispute resolution processes; and • the impact of land use planning decisions and disaster mitigation efforts on the availability and affordability of insurance.

NIBA’s submission was developed based on feedback received from members and NIBA divisional committee members and focused on the handling of

12 / INSURANCE ADVISER NOVEMBER 2023

vulnerable clients, delays in processing claims, increases in AFCA and IDR complaints and the availability and affordability of insurance.

“Members have expressed concerns about the lack of a consistent industry-wide approach to vulnerable clients, with some insurer policies having no practical impact on the handling of the claim and others failing to meet their obligations under the Code despite being notified that the client is experiencing vulnerability. ”

AFCA 2022/23 COMPLAINTS DATA

AFCA has published their annual complaints data for the 2022-23 Financial Year. The data reveals a surge in complaints, with AFCA recording 27,924 complaints against general insurers, a significant portion of which were attributed to the devastating flood events that impacted many parts of Australia. Complaints against general insurance brokers also increased, with 217 complaints made to AFCA. Of the 217 complaints received, 136 progressed to case management, with 127 cases resolved prior to AFCA issuing a determination. Of those that required an

AFCA determination, 66% were found in favour of the broker.

Notably, home building insurance took the lead in specific product complaints at 34%, with claim handling delays (28%), claim amount disputes (20%), and denial of claims (17%) dominating the issues raised.

The most commonly complained about products for general insurance brokers were home building insurance, credit insurance, and small business/farm insurance.

Interestingly, the increase in general insurance complaints wasn’t solely attributed to severe weather events but stemmed from routine claims, exacerbated by industry resource shifts and supply chain disruptions – ineffective communication with policyholders added to the feeling of discontent.

AFCA’s report also highlights a decline in industry responsiveness to complaints before reaching AFCA and increased delays and non-responses from insurers during the AFCA process. Of the complaints relating to general insurance brokers, 34% did not receive a response from brokers at referral, which is significantly higher than the 11% average for all AFCA members.

In response to significant events, AFCA swiftly addressed storms and floods in various regions throughout the financial year. Notably, complaints from these events often centered on claim denials due to exclusions or conditions. However, the Newcastle hailstorm in May 2023, though anticipated, hadn’t yielded complaints as of June 30, 2023.

NIBA / Representation

ALL ABOUT DISCLOSURE: SECTION 6.1 GOES LIVE On 1 November, the Insurance Broker Code of Practice remuneration disclosure obligations came into effect. These provisions were first announced in March, with a 20-month implementation period to allow members sufficient time to update their systems and processes.

Your obligations under the Code If the client is a Retail Client (as defined in the Corporations Act) and the broker is acting on their behalf, the broker must provide them with information about any remuneration or other benefits they will or expect to receive as a result of providing Covered Services.

Importantly, the Code obligations only apply where there is a reasonable expectation of receiving commission.

Where a Subscriber provides general advice on a class of product but does not recommend a particular product, the Code obligations would not apply.

What must be disclosed?

This information must include: i. the dollar amount of commission you will or expect to receive in providing Covered Services; ii. any non-monetary remunerations you receive from insurers as a result of providing Covered Services; iii. any fees payable by the client in relation to your services to them; and iv. w hether you intend to keep any portion of the commission or service fee if the policy is cancelled before it is due to expire.

When must disclosure occur?

This information must be provided at the same time as your advice. Or where operating under a no-advice model, prior to payment.

What if I don’t know the amount of commission?

If you do not know the amount of commission you will receive at the time of providing advice an estimate should be provided (for example, by providing a percentage range), with the actual amount provided as soon as reasonably practicable.

Incidental retail cover and disclosure Many insurance products contain a combination of both Retail and Wholesale type, for example a business pack policy that includes cover for loss/theft of personal effects. In this example, although the product includes a retail-type cover the product is still considered to be a wholesale product and therefore the remuneration

disclosure obligations outlined in the Code would not apply.

Who can I contact if I still need help?

Members who still have questions about their disclosure obligations or any other part of the Code should contact NIBA’s Policy & Advocacy Manager, Allyssa Hextell at ahextell@niba.com.au.

CONTACT NIBA

As always, brokers who have questions about these or any other government or regulatory matters should feel free to contact NIBA CEO Philip Kewin at: pkewin@niba.com.au

NIBA.COM.AU / 13

2023 NIBA CONVENTION / Community

HIGHLIGHTS FROM THE

2023 NIBA CONVENTION The insurance broking community descended upon the Gold Coast, otherwise known as the ‘spiritual home’ of NIBA for the 2023 NIBA Convention. With this being the first traditional face-to-face Convention in more than three years, there was a strong turnout of delegates, sponsors and exhibitors ready to engage, network and be inspired by an exciting lineup of speakers.

PRESIDENT’S ADDRESS

N

IBA President, Gary Okely kicked off the 2023 NIBA Convention on Monday morning, welcoming all the delegates, sponsors and exhibitors in attendance to the Gold Coast, the ‘spiritual home’ of NIBA. He spoke about the three main NIBA pillars – community, representation and professionalism.

With regards to the community pillar, he highlighted that over 3000 brokers have been involved with NIBA events in the past year, and it was fantastic to see the broking community come together and engage with each other.

Regarding representation, he highlighted the work NIBA is doing advocating with federal government agencies such as with NEMA (National Emergency Management Agency) around disaster resilience.

On the professionalism front, which is all about maintaining professional standards for our profession and industry, he highlighted the need for growing talent.

14 / INSURANCE ADVISER NOVEMBER 2023

2023 NIBA CONVENTION / Community

2023 NIBA CLAIMS BROKER OF THE YEAR AWARD WINNER To recognise excellence in claims management and to celebrate those members working in a claims-specific role in a brokerage, NIBA has created the inaugural Claims Broker of the Year award with the support of our sponsor, Sedgwick.

Congratulations to Charmaine Field, Claims Manager at NQIB for winning the 2023 Claims Broker of the Year award.

Charmaine was presented her award

by NIBA President, Gary Okely and Colin McEnery – Client Director – Sedgwick.

2023 NIBA COMMUNITY EXCELLENCE AWARD WINNER

Congratulations to Paula Cruden, Managing Director at Integrite Insurance for winning the 2023 NIBA Community Excellence award, proudly sponsored by Liberty Specialty Markets.

Paula was presented her award

by NIBA President, Gary Okely and Peter O’Leary - Vice President - Relationship Management & Marketing, Asia Pacific, Liberty Specialty Markets.

Peter said “Paula shows true commitment to helping clients and her community. Not only does her business specialise in providing insurance services to a diverse group of non-profit organisations (NFPs), community groups and disability service providers, she also supports her clients by participating in and donating to fundraising events.”

LAUNCH OF ‘INSURE YOUR FUTURE’ Philip Kewin, NIBA CEO unveiled a first-of-its-kind initiative to promote insurance broking as a career of choice, ‘Insure Your Future’.

NIBA CEO, Philip Kewin and Chair of the Promoting Insurance Broking Careers Committee, Cameron Sheild discussed the development of the ‘Insure Your Future’ initiative and how it will provide information and clear pathways for people to take their first steps into discovering the insurance broking industry. ‘Insure Your Future’ will be launching in phases over the coming months. To register your interest, visit www.insureyourfuture.com.au.

NIBA.COM.AU / 15

COMMUNITY / 2023 NIBA Convention

OPENING KEYNOTE SPEAKER – DR JORDAN NGUYEN

In his keynote, Jordan spoke about how AI and cutting-edge technology can be used to have a positive impact on people and society, including improving the lives of people with disabilities, in aged care and wildlife conservation. Jordan shared his vision of where he believes the world is moving towards, which is one of having “shared control” – this is where a person and AI have shared control of their surroundings.

He highlighted exciting examples of how biomedical technology, AI and machine learning can be used to improve the lives of people, including from the Catalyst documentary called “Becoming Superhuman”.

INSURER RESPONSE TO AUSTRALIA’S MOST EXPENSIVE NATURAL DISASTER Insurance Council of Australia CEO, Andrew Hall provided an insight into the most expensive natural disaster experienced in Australia and how insurers responded. He acknowledged the role that brokers played in helping people and communities back on their feet after last year’s floods in Southeast Queensland and the Northern Rivers and the claims experience that followed.

Andrew discussed the Parliamentary Inquiry that’s underway on the insurer response to the 2022 major floods. The Inquiry will look at claims handling and affordability, among other things. Insurers are expected to be called to the Inquiry in early 2024.

PLANNING & RESILIENCE: WHERE TO FROM HERE? Andrew Hall’s presentation flowed into the next session of the conference, exploring a strategic approach to future planning and resilience that will better position Australian communities to protect against and deal with natural disasters.

A panel of industry leaders including Andrew Hall, CEO, ICA, Drew MacRae, Consumer Representative Insurance Brokers Code Compliance Committee, Andrew Minack First Assistant Coordinator General, Policy and Programs National Emergency Management Agency, Gary Okely, NIBA President explored what a future path in disaster resilience might look like. The panel acknowledged that there is a need for greater cooperation around emergency management at a community, state and federal level. All levers need to work together for effective disaster resilience.

16 / INSURANCE ADVISER OCTOBER 2023

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.

Over the coming months, you will receive updates from NIBA’s dedicated Insure Your Future Committee on the project’s progress, with our website launching in early 2024.

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

COMMUNITY / 2023 NIBA Convention

FUTURE RISKS – PROPERTY INSURANCE DONE DIFFERENTLY Brian Maruncic, Head of Climate Business for Australia and New Zealand at AXA XL delved into the realm of parametric insurance product creation and application through an exploration of the integration of physical risk assessments.

Right now, property insurance is very reactive. But, we need to think about what happens when we can predict when certain events happen. That’s where parametric insurance comes in. Mr Maruncic shared valuable insights into the practical utilisation of parametric insurance through real-world instances that showcase its effectiveness in mitigating global weatherrelated challenges.

UNLOCKING PURPOSE, PERFORMANCE AND POWER In her afternoon keynote, Dr Bronwyn King AO, shared stories from her life that led her to becoming an elite swimmer and the Australian swimming team’s doctor and starting her campaign against tobacco.

She shared her inspiring journey in how she started her not-for-profit organisation called “Tobacco Free Portfolios”, with the aim of getting the finance sector to stop investing in tobacco companies and tobacco products.

Four key learnings from Dr King’s presentation were:

• Life just doesn’t go from A to B in a straight line. The key is not to get upset.

Never lose sight of your exact goal.

• Impossible is an unhelpful word.

• Don’t get disheartened when you hear the word ‘no’.

• Transparency helps build trust. It’s okay to say, ‘I don’t know’.

Thank you to Solution Underwriting for sponsoring this session.

SHARING RISK TO CREATE A BRAVER WORLD

Patrick Tiernan, Chief of Markets at Lloyd’s of London, shared his insights about how insurance can be affordable, accessible, and relevant to customers.

The four themes he covered in his session were – affordability and availability of insurance, how insurance can play a role in tackling climate and natural catastrophes, the challenges of geopolitical risk and the rise of cyber, and some of the innovative solutions that Lloyd’s have produced to tackle these above challenges.

There is a disparity in the risks that society is currently facing versus the risks that the industry currently covers. This is called the ‘protection gap’. This gap is 60% for natural catastrophes and with cyber, that goes up to almost 90%.

Focusing on innovation, mitigation and resilience can help in mutualising risk and help bridge the protection gap.

Cyber is the fastest growing class of business at Lloyd’s. The growth of cyberattacks will only increase and there is a need to future-proof against those losses resulting from cyber-attacks.

Thank you to Solution Underwriting for sponsoring this session.

18 / INSURANCE ADVISER NOVEMBER 2023

2023 NIBA CONVENTION / Community

TRADITION TO TRANSFORMATION: ATTRACTING TALENT TO THE INDUSTRY In an insightful discussion, panellists Tom Wheeler, William Thompson, Cameron Sheild and Jodie Krafft discussed how tradition and historic methods and preconceptions within the insurance industry may be standing in the way of current efforts to attract and retain talent – and how to address this.

The panel took delegates on a journey, first looking into the context of the talent shortage, how things have been done historically and what misconceptions plague our profession.

They then turned to some of innovative approaches to talent attraction being used currently, and the obstacles which remain in the way of their success.

Thank you to Solution Underwriting for sponsoring this session.

BREAKOUT SESSION 1 – SOFT LANDINGS ARE HARD TO DO In a highly engaging and insightful session, Martin Lakos, Divisional Director at Macquarie Bank provided a deep dive into the current global economy, with a key focus on the US and China economies and geopolitical risks, including the Russian/ Ukraine conflict.

Martin outlined how the contraction of growth in China and their efforts to reinvigorate the economy is having an impact on global economies, including Australia. He also provided an in-depth analysis of the current Australian economy.

BREAKOUT SESSION 3 – REIMAGINING KEY ALLIANCES: 5 KEYS TO BUILDING MEANINGFUL BUSINESS RELATIONSHIPS

This highly interactive session got delegates thinking about and discussing the value behind building strong and meaningful connections.

Nikki Heald shared five top tips on how you can ensure that you are maximising your opportunities to network to build truly beneficial relationships.

1. Y ou have to challenge yourself and put yourself out there 2. Find ways to keep in touch 3. T ake the time and invest in your reputation and build your personal brand 4. Find ways to add value for others 5. Do what you say you are going to do.

BREAKOUT SESSION 2 – UNLOCKING NEW HORIZONS: TECHNOLOGY AND AI TRANSFORMATIONS IN BROKERAGE As technology and artificial intelligence continue to revolutionise the insurance landscape, brokers are presented with unprecedented opportunities to elevate customer service and streamline their operations.

In this enlightening session, a panel of industry experts shared their insights on the emerging trends both in Australia and globally, and their profound implications for insurance brokers.

NIBA.COM.AU / 19

2023 NIBA CONVENTION / Community

BREAKOUT SESSION 4 – LEADING CHANGE IN A CHANGING WORLD This session gave delegates some practical insights into how leaders can help their people and organisations through change.

Jenny Haddad, Principal Consultant from Spring Business Consulting began by referencing a Forbes study which found that leaders within organisations spend, on average, 20% of their time managing or leading their people through change. That’s one day per week.

While change is a given, acceptance levels of change vary drastically between people. However, being open to change is actually crucial.

Noel Kelly, Director from AEI Insurance Broking Group shared his experience and the adjustments that his team went through as they have grown from a team of 10 to 105.

He shared the highs and was honest about the lows, but he encouraged delegates to be open and embrace change.

BREAKOUT SESSION 5 – THE EXEC CHAT, PANEL SESSION An empowering and enlightening panel discussion focused on trailblazing women in insurance, including Rebecca Wilson, Dianne Phelan, Lynette Walsh, and moderated

by NIBA Convention Chair Steven Hill. In celebration of the remarkable contributions made by women and female leaders in the industry, this session showcased their expertise, leadership, and achievements.

Through a diversity and inclusion lens, this panel discussion shed light on the unique perspectives and experiences of women in insurance and the inspiring careers journeys that have led them to success.

BREAKOUT SESSION 6 – HOW TO GROW YOUR BROKERAGE – EFFICIENT SYSTEMS AND STRUCTURED PROCESSES Managing and growing a brokerage can be challenging, especially if your technology is dated and consists of multiple systems.

Pieter Versluis, General Manager at Trans-West Insurance Brokers shared his valuable insights about how his business chose to engage JAVLN in 2020 to implement a central cloud-based platform.

Thank you to simfuni for sponsoring this session.

SUPPORTING VULNERABLE CLIENTS: INSIGHTS FROM BANKING’S BEST PRACTICES In her afternoon session, Prue Monument, General Manager Code Compliance, AFCA covered three broad areas – the Code obligations for the broking community, what actions brokers can take to remain compliant and support vulnerable clients, and some examples of best practice.

Ms Monument identified five key areas that are important in identifying and supporting vulnerable clients.

These areas are: • Executive oversight • Skills and capabilities

20 / INSURANCE ADVISER NOVEMBER 2023

• Policies and procedures • Inclusive service design • Ongoing review and improvement.

2023 NIBA CONVENTION / Community

STRATEGIC DIRECTION OF NIBA

THE GREAT DEBATE Representatives from brokers and insurers went head-to-head in an entertaining and thought-provoking debate about the future of insurance broking. The affirmative side argued that there will be a considerable shift in the roles insurance brokers perform, the way they engage with their clients, and how

they transact business with insurers.

The negative side argued that we need to accept that technology might influence an insurance broker’s day-to-day working life, but the role of a broker will be fundamentally the same, as will the way they engage with their clients and insurers.

The session outlined the key priorities from a NIBA strategic perspective and was a chance for NIBA members to ask any questions they might have about NIBA’s priorities.

The panel, consisting of NIBA CEO Phil Kewin, NIBA President Gary Okely, NIBA Past President Dianne Phelan and NIBA VicePresident Nicholas Cook, discussed the recommendations of the Quality of Advice Review, the challenges of attracting talent to the industry and the lack of understanding in the broader public about the value of an insurance broker and what an insurance broker does.

CONVENTION CLOSE NIBA Convention Chair Steven Hill delivered the Convention Closing Address, recapping some of the major highlights from the past two days. The winner of the NIBA Marketplace Engagement Competition was revealed. Congratulations to Sherese Peckham from IOOF for winning the competition.

The date for next year’s Convention was also revealed. The 2024 NIBA Convention will be held at the Adelaide Convention Centre from 20 – 22 October 2024.

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2023 NIBA CONVENTION / Community

GUS BALBONTIN – CLOSING KEYNOTE SPEAKER A natural innovator and someone who has never fit in defined systems all his life, the Convention’s closing keynote speaker Gus Balbontin, the former CTO of Lonely Planet challenged the attendees to embrace novelty in their lives and break conventional patterns. With his enthusiastic personality and a bundle of energy, his presentation lit up the room with infectious laughter that captured everyone’s attention.

He shared many stories from his life which demonstrated the value of novelty. One of the inspiring projects he’s been involved with include The Unrealistic Foundation.

Focused on changing the future of education, The Unrealistic Foundation invests in companies or startups that have both the ambition and desire to find better ways to educate and learn.

NIBA MARKETPLACE In between sessions, delegates could be found networking and engaging with exhibitors at the NIBA Marketplace.

A big thank you to our delegates, sponsors and exhibitors for making the 2023 NIBA Convention an unforgettable event.

22 / INSURANCE ADVISER NOVEMBER 2023

2021

Thanks for recognising Liberty for the third consecutive year

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The independent NIBA Broker Market Survey was conducted from 18 July to 14 August 2023 and compared 24 Insurers and Underwriting Agencies in Australia.

Liberty Specialty Markets is a trading name of Liberty Mutual Insurance Company, Australia Branch (ABN 61 086 083 605) incorporated in Massachusetts, USA (the liability of members is limited).

COVER STORY / 2023 NIBA Gala Dinner and Awards

Celebrating standout talent

from the industry and the broking profession At the conclusion of the 2023 NIBA Convention, attendees made their way to the Gold Coast Convention and Exhibition Centre for what everyone was awaiting with bated breath – the Gala Dinner!

The industry and the broking profession celebrated those who have led the way for the past 12 months in what would be an unforgettable evening at the 2023 NIBA Gala Dinner and Awards ceremony.

24 / INSURANCE ADVISER NOVEMBER 2023

COVER STORY / 2023 NIBA Gala Dinner and Awards

KICKING OFF THE EVENING Sam Lane was the Master of Ceremonies for the evening. She kicked off the proceedings with an Acknowledgement of Country, followed by recapping the main highlights from the recently concluded 2023 NIBA Convention, and thanking the sponsors, delegates, and attendees for making the event a resounding success.

NIBA CEO’S ADDRESS Philip Kewin, NIBA CEO, in his opening address at the Gala Dinner, thanked everyone whose participation, enthusiasm and tireless efforts had made this 2023 NIBA Convention an event to remember.

He also noted how wonderful it was to engage with everyone – colleagues old and new – and have conversations in person with the larger broking community in one place, given that the broking profession is one that’s built around maintaining longterm professional relationships.

NIBA.COM.AU / 25

COMMUNITY / 2023 NIBA Gala Dinner and Awards

INSURER AND UNDERWRITING AGENCY AWARDS After the opening round of speeches, it was time for the first set of awards, which focused on the insurers and underwriting agencies. These awards are determined based on the feedback provided by brokers through the annual Broker Market Survey.

The Broker Market Survey is conducted on behalf of NIBA by independent market research firm called NielsenIQ. “This year, over 720 brokers had their say through the Broker Market Survey, which is a record number and an extremely pleasing result,” said NIBA CEO Philip Kewin.

Mr Kewin was joined on stage by Angela Carter, Director of Consumer Insights, NielsenIQ. Ms Carter noted some key things that are measured in the Broker Market Survey, that help determine the winners. These key things revolve around the questions brokers are asked about their insurance partners, including: 1. Are the insurers you use partners you can truly trust?

2023 LARGE GENERAL INSURER OF THE YEAR Vero was named the 2023 Large General Insurer of the Year winner. NIBA President Gary Okely presented the award.

The top three finalists in the running for the 2023 Large General Insurer of the Year award were: 1.

Chubb 2.

Vero 3.

Zurich.

26 / INSURANCE ADVISER OCTOBER 2023

2. Would you go to another insurer just for a cheaper price?

3. H ow do insurers compare to their competition?

4. A re the services/benefits you get from your insurer worth the money paid for it?

5. Do they provide products and servicing to attain the highest level of satisfaction?

6. Do they offer products and services that are responsive to your needs and requirements?

The Broker Market Survey provides a deep understanding of brokers’ expectations, brand perceptions and broker customer experience. These insights are used to measure the attitudes and engagement of brokers with regards to insurers and determine outstanding performers amongst insurers in a sophisticated and robust way.

COVER STORY / 2023 NIBA Gala Dinner and Awards

2023 UNDERWRITING AGENCY OF THE YEAR The Underwriting Agency of the Year award was developed in 2020 to acknowledge the fact that brokers deal with several underwriting agencies, or managing general agents, as well as deal with APRA authorised insurance companies operating in the Australian market.

NTI were announced as the winner of the 2023 Underwriting Agency of the Year award. NIBA President Gary Okely presented the award.

The top three finalists in the running for the 2023 Underwriting Agency of the Year award were: 1.

Emergence 2.

GT Insurance 3.

NTI.

2023 SPECIALTY INSURER OF THE YEAR The Specialty Insurer of the Year award, which was created in 2022 to celebrate excellence by niche/specialty insurers.

Liberty Specialty Markets was named the 2023 Specialty Insurer of the Year winner. NIBA President Gary Okely presented the award.

The top three finalists in the running for the 2023 Specialty Insurer of the Year award were: 1.

Berkley 2.

Berkshire Hathaway 3. Liberty Specialty Markets.

NIBA.COM.AU / 27

COMMUNITY / 2023 NIBA Convention

2023 YOUNG BROKER OF THE YEAR The Vero-sponsored 2023 Young Broker of the Year award was won by Taylor Burstow of East West Insurance Brokers from Queensland.

Taylor has been an insurance broker for the past 15 years and joined East West Insurance Brokers in 2021 as the Head of Client Services.

In congratulating Taylor on his win as the 2023 Young Broker of the Year, Anthony Pagano, Vero’s Head of Distribution, Commercial Insurance said: “Taylor’s thirst for knowledge, his drive and inquisitive mind truly shone through the program.

In addition to his outstanding work ethic, Taylor has shown a true passion for giving back to the community, and we’re excited to provide ongoing support to him and other young brokers across the country.”

“Congratulations Taylor on an impressive achievement as the 2023 Young Broker of the Year award winner,” Mr Pagano added.

NIBA CEO, Philip Kewin said, “When I look ahead towards the future of insurance broking, it fills me with positivity and enthusiasm, thanks to the immense promise of this group of finalists. The finalists this year demonstrated a high standard of professionalism and an awareness of their responsibility to be positive role models for

the community. I congratulate Taylor and all the finalists.”

The national finalists for the 2023 Young Broker of the Year award were: • Olivia Hancock, Marsh (VIC/TAS) • Joel Morrell, Network Insurance Group (NSW/ACT) • Adam Luppino, Guardian Insurance Group (SA/NT) • Taylor Burstow, East West Insurance Brokers (QLD) • Justin Purslowe, Aviso WA Ibsurance Brokers (WA).

NIBA would like to congratulate all the finalists.

Special thanks to Vero for sponsoring the Young Broker of the Year award

28 / INSURANCE ADVISER NOVEMBER 2023

COVER STORY / 2023 NIBA Gala Dinner and Awards

2023 BROKER OF THE YEAR The QBE-sponsored 2023 Broker of the Year award was won by Barry Sonter of Finsura Insurance Broking from NSW. Barry commenced his career in underwriting and then transitioned into insurance broking in 1981. He is the Corporate Account Manager at Finsura Insurance Broking, a brokerage that he has been employed with since 1993.

Lorelle Hillman, QBE Australia Pacific General Manager, Partnerships, said Mr Sonter’s focus on relationship building was outstanding.

“Over his career, Barry has fostered strong long-term relationships with many across the industry, enabling him to work collaboratively and achieve great customer outcomes on even the most complex and technical coverage situations,” she said.

“He has also dedicated his time to mentoring and developing colleagues, building their technical knowledge and soft skills, so they can forge their own successful paths. It’s this commitment to

his customers and the broader insurance community that ensured Barry stood out, and we’re proud to recognise his efforts alongside NIBA.” NIBA CEO Philip Kewin said, “Barry is an inspiring broker and role model, passionate about delivering outstanding service to his clients, and passionate about his role in the community. All the finalists should be incredibly proud, they’ve set a very high benchmark for the broking profession.”

The national finalists for the 2023 Broker of the Year award were: • Nick Hodges, Marsh (VIC/TAS) •B arry Sonter, Finsura Insurance Broking (NSW/ACT) •G ary Thomas, Thomas Insurance Brokers •L isa Shanta, SB Protect Insurance Brokers • Frans du Plessis, Grace Insurance.

NIBA would like to congratulate all the finalists.

Special thanks to QBE for sponsoring the Young Broker of the Year award

NIBA.COM.AU / 29

COVER STORY / 2023 NIBA Gala Dinner and Awards

2023 LEX MCKEOWN TROPHY WINNER The final award of the night, the Lex McKeown Trophy, was presented

by NIBA President Gary Okely.

The Lex McKeown Trophy is presented by the NIBA President in consultation with the NIBA Board and the CEO to a long-standing NIBA member who has provided outstanding service to NIBA and has made a significant contribution to the broking profession.

Gary Seymour, Chairman of Edgewise Insurance Brokers, was presented with the 2023 Lex McKeown Trophy.

“Gary has been a distinctive pillar of our broking profession for more than four decades and has made an invaluable contribution to NIBA over the years and through his tenure as a Director on the NIBA Board,” said Gary Okely, NIBA President.

With a career spread across more than four decades, Mr Seymour first joined the insurance industry in 1978, while growing up in Shepparton in Victoria. In the early 1980s, he established GIS with the late Graham “Bear” Stevens, growing GIS into an international business, and connecting with Bradstock in the UK. By 2000, Bradstock GIS Insurance Broking had grown to become one of Australia’s largest privately owned insurance broking groups.

In 2009, he partnered again with Graham Stevens and other brokers, including Richard Coloretti, to establish Edgewise Insurance Brokers. He’s still involved with the organisation to this day. Currently, Mr Seymour is on several boards and advisory roles within the financial services sector.

30 / INSURANCE ADVISER NOVEMBER 2023

Among his many roles, Mr Seymour is the Chairperson of Community Broker Network (CBN), the Chairperson of Whitbread Holdings, a Non-Executive Director of Chubb Insurance Australia & NZ, and a Non-Executive Chairman of Partners Wealth Group. He’s a graduate of the Australian Institute of Company Directors, past Board Director of NIBA, past President and Honorary Life Member of the Australian Insurance Institute and an ANZIIF Senior Associate.

“On behalf of the NIBA Board, I extend my warmest congratulations to Gary on being the Lex McKeown Trophy recipient for 2023 and thank him for his tireless efforts and contributions to the broking profession, over what has been a remarkable career,” Okely added.

To read Insurance Adviser’s interview with Gary Semour, please go to page 33.

COVER STORY / 2023 NIBA Gala Dinner and Awards

MORE PHOTOS FROM THE 2023 NIBA GALA DINNER AND AWARDS NIGHT

To explore more photos and relive your favourite moments from the 2023 NIBA Gala Dinner, please scan this QR code.

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COVER STORY / 2023 NIBA Gala Dinner and Awards

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INSURANCE JOURNEY / Gary Seymour

A tireless

advocate for insurance broking A conversation with the 2023 Lex McKeown Trophy recipient, Gary Seymour.

O

n Tuesday 10 October – a day which just so happened to be his birthday – Gary Seymour, Chairman of Edgewise Insurance Brokers, received an unexpected birthday surprise when he was announced as the 2023 Lex McKeown Trophy recipient at the 2023 NIBA Gala Dinner and Awards.

With an illustrious career spanning more than four decades, Mr Seymour has been one of the major pillars of the insurance broking profession Insurance Adviser caught up with Mr Seymour to get his thoughts on being this year’s Lex recipient, how he entered insurance broking, the changes he’s seen over the years, his limitless passion for the broking profession and share little nuggets of wisdom with younger brokers coming into the profession.

On being awarded the 2023 Lex McKeown Trophy

Mr Seymour shared that he was in the audience when some of the past winners of the prestigious Lex McKeown Trophy were announced, but never really contemplated that one day he would be up there himself.

“It gives me a sense of pride to be recognised by my peers and colleagues because, at the end of the day, they’re the ones that really know what you’re about,” he said.

“And for them to recognise my career to-date, I feel it brings added responsibility to live up to the standards of those who’ve come before me and to continue to promote and encourage careers in insurance broking and the professional development of our people.”

NIBA.COM.AU / 33

INSURANCE JOURNEY / Gary Seymour

The early years

Growing up in Shepparton in country Victoria, insurance broking wasn’t a career that was front of mind for Mr Seymour. He fell into it – as many people have – because his father wanted him to have some kind of a job while he took a break from his studies after finishing Year 12.

“Through a family connection – I knew somebody in insurance – I ended up getting a job in Shepparton for GRE Insurance,” he said. “The deal was, as long as I had a job, dad was happy for me to take a year off [from studies]. I got a little bit of government support back in those days, and at the end of the 12 months, I’d enjoyed the work.”

“I guess in a funny way, I was another accidental insurance broker. I didn’t seek it out but once I got in there, I was a pretty quick student.”

Mr Seymour was definitely a quick student, as can be evidenced from one of his earliest pay summaries from 1982, showing that he got a 24% pay increase to his then gross salary of $10,920.

On his long friendship and professional partnership with late Graham ‘Bear’ Stevens

Mr Seymour had a close personal friendship and professional partnership with past NIBA President and Lex McKeown recipient Graham ‘Bear’ Stevens. He reflected on why they worked so well together and the enduring legacy of Mr Stevens.

“Graham and I met in the early 80s, when he was working at GRE Insurance,” said Mr Seymour.

“We were mates. We never had a cross word, which didn’t mean we always agreed. We always figured out what was best for the business. And we became lifetime business partners,” he said.

“It was a great friendship. In a funny way, he was almost like a brother to me. I was with him the day before he passed. He still had a great zest for life, a great love of this industry and he had no regrets. His words to me were that he’d loved every minute of it.

He just wished [his journey] could’ve gone on for longer.

“That was just the type of man he was, and I miss him terribly.

But his legacy lives on, and for me to now also be a Lex recipient, like he has been, is special.”

Reflecting on his time at the NIBA Board

Mr Seymour has also served as a NIBA Board Member for several years – between 2000 to 2007. He shared some important milestones from his time as a NIBA Board Member and noted the work that NIBA does as the voice of the profession.

“We went through the ‘Spitzer and disclosure’ issue back in those days,” said Mr Seymour. “Everybody will remember the case of Spitzer and when he took on Marsh and the disclosure regime that came after that. That’s flowed through into a lot of the legislation we’ve had in Australia.”

At the time, in 2005, Marsh & McLennan Companies had agreed to pay $850 million to settle a lawsuit accusing it of cheating customers by rigging prices and steering business to insurers in exchange for incentive payments.

“So that was probably the biggest single event that we dealt with. I think we’re still feeling the effects of that today,” he said.

34 / INSURANCE ADVISER NOVEMBER 2023

“I recognise, and this has become even more important, that NIBA is the broking profession’s voice and representative – with industry, government, and in many cases, the community.

“The work is vital, and we all need to be proud and where possible, be active supporters and promoters of our industry.

Now, does that mean that NIBA gets it right every time? No. But I’ve seen how well the Board and Committees work. I’ve seen how hard they’re trying to get things right.

“I’d encourage the detractors to put their hand up and get involved and make a contribution. It’s very easy to sit outside the tent and criticise. These are complex issues and complex times and there isn’t a silver bullet. There needs to be proper consideration and conversation.”

Regulatory change and its impact on the industry

Currently serving on several boards and advisory roles within the financial services sector, Mr Seymour has been instrumental in both sides of the industry – promoting the broking side as well as the underwriting side, making sure that he brings the industry together. Due to his unique vantage point, he shared his thoughts on the pace of regulatory change and what that means for the industry.

“More recently and post the Royal Commission, the pace and the level of regulation bothers me,” said Mr Seymour.

“And, I’m not sure the consumers are getting the intended benefits. I think advice is being withdrawn and innovation is being stifled. Obviously, costs are soaring. People who should be giving advice and talking to clients are caught up in red tape and the many layers of regulation. I’ve seen it from a broker perspective, but I also have had first-hand experience on what it looks like on the underwriter side.

“Do I think the regulators have got it right? I think it’s gone too far. I think we tend to be drawn to the lowest common denominator on some of this regulation, which I think is sad. I don’t know that we’re necessarily weeding out those that shouldn’t be practicing in our industry.”

Being a passionate advocate for the insurance broking profession

A tireless and passionate advocate for the profession, Mr Seymour believes that brokers can sometimes sell themselves short in talking about the significant value they add to the social fabric of society and making a tangible difference to people’s lives.

“I think we sometimes have almost an inferiority complex,” he said. “It’s always bothered me that insurance brokers don’t seem to be proud and say – if you had a barbecue, do you say to people proudly that you’re an insurance broker? I always have.

But some people don’t.”

“And if you’re not proud of it, how do you then sell your values? So, that’s still an area I think we can continue to get better. I thought the recent NIBA Code of Practice was a lost opportunity. If we truly want to be a profession, surely, the minimum standard is that we disclose our earnings. I know

INSURANCE JOURNEY / Gary Seymour

we’re moving in the right direction, but can you imagine lawyers, accountants, architects, doctors not disclosing what they’re charging and being paid?

“We need to believe in the value that we bring and be comfortable to charge. Charge with pride.”

It’s all about the relationships you build and foster with your clients

Mr Seymour expresses his concern, that for a profession that’s essentially about maintaining strong relationships, events such as the pandemic have isolated some brokers and impacted their relationships with clients.

“I talk to brokers about the last time they actually sat in front of a client, and they’re just not doing it enough,” he said. “So, I think that’s the risk at the moment – being too isolated post-pandemic.

You’ve got to go and sit in front of clients and get a sense of what the real world is for them.”

“When I get a chance to talk to clients, I don’t typically go out with a renewal manual and start asking them insurance questions.

I go out there with the blank sheet of paper and talk to them about their business. Become a good listener – the old adage I was taught in my early days – you’ve got two ears and one mouth. If you learn to use your ears, it’s amazing how much it helps you do your job as an insurance broker.”

Advice for younger brokers

With over four decades of experience and having seen insurance broking evolve over the years, Mr Seymour also shared some important nuggets of wisdom for new entrants into the insurance broking profession. “I firstly congratulate them on choosing insurance broking as a career, if they actually chose it. And I’d encourage them to stay committed and have patience,” he said.

“I’d suggest they take time to decide in which direction they want to take their career. Servicing, placements, risk management or engineering. There are so many directions you can go in insurance broking. I’d encourage them to approach people in the industry and talk to them about their roles and experiences. Find role models and consider the NIBA Mentoring Program. It’s a great experience for the mentor and the mentee.

“Taking an old person like me for a cup of coffee or even a beer and talking to us about our experiences, it’s a great way to learn. I wouldn’t be sending an invite for a video call. I’m old school. Get across the table and let’s have a proper chat.

“Also, importantly, have fun. If you’re not enjoying what you’re doing, make a change. If you think you’ve got stuck, don’t lose confidence in insurance broking. Think about where you need to change and how you can make it fun because the industry has a wonderful social aspect as well as the professional aspect. It provides endless opportunities.”

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FEATURE / Business Interruption

PREPARING FOR INTERRUPTION With summer fast approaching, business interruption is back in the spotlight – and the right conversation can preserve livelihoods.

By MARTIN WANLESS

W

e’re well-accustomed to extreme weather events here in Australia and, as a profession, we know only too well the impact the weather can have on clients from both a personal and professional point of view, as well as the role the insurance sector as a whole has to play in disaster recovery.

The floods that parts of the country experienced last summer, together with memories of the summer of 2019-20 and the El Niño currently in progress, means the possibility of clients’ businesses suddenly being interrupted is very much front of mind.

“The industry experienced huge losses from back-to-back disasters, which has forced up premiums as well as the implementation of cover restrictions, particularly around flood and prevention of access,” says Dave Bazen, Chief Executive Officer of ASTA Group.

It’s unsurprising, therefore, that, across the globe, concern about business interruption is high, particularly after

36 / INSURANCE ADVISER NOVEMBER 2023

High Court rulings in favour of insurers post-COVID-19.

“The impact of the COVID-19 pandemic on businesses was unprecedented and for a while, Australian insurers were at risk of being flooded by a wave of COVID-induced business interruption claims,” says Steve Bar-bara, Executive Loss Adjuster at Technical Assessing.

“Notwithstanding the eventual High Court ruling in insurers’ favour, business interruption insurance wordings took centre stage and focused the market’s attention on the need for clarity in policy drafting, particularly with respect to the exclusion/inclusion of pandemic cover.

“The Allianz Risk Barometer 2023 globally ranked business interruption (BI) and supply chain disruption as one of the main risks of concern, second only to cyber-related exposures, while in Australia, the report ranked the top three concerns as natural catastrophes, business interruption and climate change. The interconnectivity of these three risks is obvious.”

FEATURE / Business Interruption

BEING AWARE OF THE COMPLEXITIES

And it’s that interconnectivity, overlaid by recent experiences, that has prompted significant activity ahead of the summer’s weather patterns really kicking in.

Business interruption is at the forefront for everyone, with brokers striving to ensure that clients are adequately covered for the foreseeable and the unforeseeable.

“There is a greater awareness of the complexities of reconstruction in regional areas,” says Charles Pollack, CEO of Our Ark Mutual.

“Significant events in regional areas create flow-on effects for everyone affected.”

That may be due to a shortage of trades in regional areas, or the fact that those trades – and the people providing them – have also suffered losses.

“In regional communities with flood events like we saw in New South Wales, particularly the Lismore area, the trades that would have mobilised to begin repairs were also unable to trade,” he says.

“Plus, even if a business in a regional area can trade, its customer base may fall away due to the personal circumstances everyone is enduring or, there may be a shortage of people to work, as they were also affected or had to move away.”

Christopher Connolly, Head of IUA Underwriting Manager, says finding tradespeople to do the work and finish jobs is one concern, as is getting hold of replacement equipment.

“Lead times to get replacement machinery and equipment, locally and from overseas, have blown out,” he says.

“The longer the business waits to reinstate the equipment and trading activity, the greater the risk of losing customers, clients and orders; their business needs to continue, and no matter how great loyalty is, the world will move forward without you.”

ENSURING ADEQUATE COVER Underinsurance is a perennial issue across many areas of the profession – and business interruption is certainly no exception.

“Business interruption has always been plagued with issues surrounding underinsurance,” says Bazen.

“Many business owners do not have a realistic understanding of their business performance, and this leads to understating sums insured. As insurance becomes more expensive, along with other costs of living rising, the pressure to keep premiums down at the expense of correct cover can lead to disastrous results come claim time.

“Clients should seek good financial advice on their true business performance and have open and honest discussions with their brokers to ensure all risks are adequately covered.

Bruce Murphy, Consultant at Technical Assessing, says it’s important to take everything into consideration – particularly salaries.

“The need to amend a claim settlement to reflect a material level of underinsurance is not an uncommon occurrence and can be the cause of significant financial hardship. This is especially the case

THINGS TO CONSIDER WHEN SELECTING APPROPRIATE BUSINESS INTERRUPTION RISK PROTECTION Charles Pollack, CEO of Our Ark Mutual, offers the following tips.

Things to consider include: •W ill an alternative building be needed?

•W hat would that building need to provide?

•W hat are the vital requirements?

•A re there other buildings within the business where some tasks/functions can be moved to?

•W ould some employees work from home (e.g. Admin roles)?

If the business is unable to trade, are costs reduced from things like: •F ewer casual staff being required to operate day to day?

•R educing/ceasing advertising?

•R educing stock?

•R educing cleaning costs due to smaller buildings or people working from home?

38 / INSURANCE ADVISER NOVEMBER 2023

What may affect the time it takes to remediate a site?

• If it was a fire, will there be a police investigation, which may increase the time to remediate?

• The site may require clearance from engineers or other specialists before entry can be made either for a police investigation or, as a work site for repairs.

• If it was a flood or earth slip, would access be hindered?

Are there external factors related to the location, such as restrictions on the use of heavy vehicles at a location, which may delay rebuilding?

Are there special aspects of the organisation (building or contents) that may extend rebuild time and affect the ability to operate, such as special

roofing materials, asbestos, special equipment, and heritage overlays?

What interruptions to your business are included in any insurance or risk protection product wording?

• Prevention of site access due to flooding or bushfires?

• Interruption to utility services (power, water, gas)?

Specific community-centric organisations may need to consider: • Loss of rental income or fees for tenanted community housing properties, regional accommodation providers, aged and disability care or rehabilitation services.

• The loss of revenue from being unable to find adequate alternative buildings suitable for childcare services or education facilities.

FEATURE / Business Interruption

“THAT MAY BE DUE TO A SHORTAGE OF TRADES IN REGIONAL AREAS, OR THE FACT THAT THOSE TRADES – AND THE PEOPLE PROVIDING THEM – HAVE ALSO SUFFERED LOSSES.” – CHARLES POLLACK, CEO AT OUR ARK MUTUAL

when there is limited cash flow and/or we are dealing with a family business whose owners have mortgaged their homes to invest in the operation.

“Each enterprise will have its own particular coverage requirements, and great care needs to be exercised with determining the extent of potential exposures, including cover for wages.

This is particularly the case when a Dual Payroll Basis coverage (where gross profit and payroll are separately insured) is sought.

“In the current climate of reported labour shortages, it is vital for each enterprise to retain their skilled staff, and failure to properly recognise this factor can have dire consequences.”

Ultimately, however, it’s about making sure the importance of business interruption cover is well understood.

“For ever, the Australian way has been ‘she’ll be right, mate’ and ‘give it a go’,” says Connolly.

“The idea of having a business continuity plan and planning for disaster has been pretty much ignored. A major part of ‘best business practice’ suggests that all businesses have a business continuity plan – as a very basic example, if a business is out for 10 weeks and they need $10,000 per week to make ends meet – does the business owner have $100,000 in the bank as savings to pay their way?

“Business interruption insurance has been considered too hard to sell and therefore a secondary policy – but it can be a matter of bankruptcy or not.”

40 / INSURANCE ADVISER NOVEMBER 2023

CASE STUDY:

STORM DAMAGE CAUSES YEAR-LONG ISSUES FOR SYDNEY PRINTER A long-standing family-owned printing business in the Northern Suburbs of Sydney was making good progress towards re-establishing a sense of normality after COVID-19 had significantly affected its operations, when severe storms damaged the roof, and resultant water ingress damaged stocks and plant and equipment – including a CNC machine critical to production.

Following the initial make-safe, the landlord was recalcitrant in carrying out adequate repairs, which led to further ingress during subsequent heavy downpours and the risk of additional damage and an unsafe work environment.

Investigations into the CNC machine became protracted, with the original equipment manufacturer stating that the unit needed to be replaced (at a significant cost) and the appointed electrical engineer of the opinion that the unit could be repaired.

In the meantime, production levels dropped significantly, which impacted sales and put long-standing customer relationships at risk.

Early discussions led to a plan that included outsourcing production at an additional cost. This allowed the insured to deliver existing orders, including those with more immediate deadlines. While the outsourcing did not prevent a total loss of income,

the Declared Value for Annual Gross Profit was adequate, which provided the appropriate level of cover for ongoing costs, including wages, while maintaining the net profit.

Issues with the roof persisted, and the insured did not want to reinstate expensive equipment in a building that did not provide satisfactory protection. The insurer agreed to cover the relocation costs to an alternative premises, which became the insured’s permanent home. Furthermore, a contribution was made towards some of the set-up costs, which acknowledged the benefit received by the insurer during the indemnity period and was net of the ongoing residual benefit to the insured.

The claim ran for just under a year and was the cause of much stress for the business owner. However, notwithstanding the adverse circumstances suffered by the insured, the silver lining was that it found itself relocated to more secure premises with an improved workspace, and had retained its skilled workforce and maintained profitability.

Had there been no BI insurance or had the level of coverage been significantly inadequate, then the outcome may have been very different.

Case study provided by Technical Assessing.

NOT ALL BUSINESS INTERRUPTION POLICIES ARE CREATED EQUAL The IUA Interruption Insurance Policy Wording is designed to ensure that small and large businesses receive the help and support they need, so they can continue trading as quickly as possible.

CLAIMS PAID WEEKLY. NO TIME EXCESS OR WAITING PERIOD. Discover the IUA advantage.

P 02 9307 6655 | E underwriting@iua.com.au | W www.iua.com.au This advertisement is intended for insurance intermediaries only. The contract of insurance is issued by Miramar Underwriting Agency Pty Ltd (ABN 97 111 534 797, AFSL 314176) t/as Interruption Underwriting Agencies (‘IUA’) who acts under a binding authority as an agent for certain underwriters at Lloyd’s, the insurer of the product. Terms, conditions, limits and exclusions apply to the product referred to above.

FEATURE / Business Interruption

PLANNING FOR EVERY EVENTUALITY

With event-related business interruption becoming more significant, a focus on disaster planning can reap dividends in both reduced direct losses and reduced business interruption, says Pollack.

“Doing whatever is possible to minimise risk and limit claims should be a priority – whether that is cleaning gutters, maintaining electrical equipment like refrigeration or air conditioning units to protect stock, having a habitable workplace and minimising the risk of fires from electrical equipment failure,” he says.

“Ensuring that the basic routine maintenance for the business, its buildings and contents is done, is very important.

Making sure everything is as resilient as possible to whatever nature throws at it can

“FINDING TRADESPEOPLE TO DO THE WORK AND FINISH JOBS IS ONE CONCERN, AS IS GETTING HOLD OF REPLACEMENT EQUIPMENT.” – CHRISTOPHER CONNOLLY, HEAD OF IUA UNDERWRITING MANAGER

make a huge difference to an organisation being able to operate or not. Most people would agree that it is preferable to avoid a loss in the first place than to have your business interrupted and have to go through the claim process.”

For brokers, too, looking holistically at the business will enable additional risks to be identified.

“Do businesses have the ability to transform their supply chain with local reinvestments or partners in safer geographical regions?” says Murphy.

“If not done so already, time spent by brokers and their clients reflecting upon how supply might be diversified would be well spent.”

For brokers and clients alike, it’s essential to be prepared. And, as we quickly head towards summer, the time to have those conversations is now.

COMMON REASONS FOR UNDERINSURANCE Underinsurance remains a perennial issue, and Steve Bar-bara of Technical Assessing says causes for this may include: •A misunderstanding of the definition of gross profit per the PDS. •C onfusing an accountant’s definition of gross profit with that per the PDS (particularly with a manufacturing business).

•S imply rolling over the level of cover from one year to the next with no consideration for growth/changes in the business.

•N o consideration of the level of gross profit that the business is likely to achieve over the 12-month period if a loss occurs on the last day of the period of insurance.

42 / INSURANCE ADVISER NOVEMBER 2023

• A failure to realistically estimate the growth of income. This is particularly pertinent to a new business or a going concern that had a change of management and/or an injection of capital to revamp/improve it.

• Insuring for a period of greater than 12 months but not realising that the gross profit needs to be declared at the relative multiple of the annual gross profit. For example, if the indemnity period of 18 months is selected, then the declaration would need to be for a value equivalent to 1.5x of the projected Annual Gross Profit.

• A desire to save on premiums and a purposeful conservative declaration without any recognition of how this may affect a claim settlement.

THE MUTUAL FOR ORGANISATIONS AT THE HEART OF LOCAL COMMUNITIES

$

Fair Prices

Few Exclusions

Tailored Product

Rapid Claims

No Excess

$

Surplus Retained

RISK PROTECTION FOR BUILDINGS, CONTENTS & INDUSTRY SPECIFIC BUSINESS INTERUPTION www.ourark.com.au Our Ark Mutual Limited is a discretionary mutual managed by Our Ark Management Pty Ltd ABN 42 619 600 118 an Authorised Representative (AR No: 1302936) of Picnic Licensing Pty Ltd (AFSL No: 532540). Statements in this document include general advice which does not take account of your personal circumstances. Discretionary protection is not the same as insurance. To learn more, contact Our Ark for more information before deciding to become a member including Our Ark’s Constitution, its Product Disclosure Statement and Financial Services Guide.

FEATURE / Import/Export Insurance

44 / INSURANCE ADVISER NOVEMBER 2023

FEATURE / Import/Export Insurance

NORMALITY RETURNS, BUT NEW RISKS ARE QUICKLY EMERGING

IN IMPORT AND EXPORT As a global industry, there’s no surprise there’s plenty happening in the import and export market.

And, while we’re just getting back to the pre-pandemic normal, there are a number of elements brokers need to be aware of.

By MARTIN WANLESS

NIBA.COM.AU / 45

FEATURE / Import/Export Insurance

O

ver recent months, the global supply chain that was so significantly disrupted during COVID-19 has returned to something resembling normality. However, there are some new and emerging risks that could create another wave of disruption.

“We’ve seen significant improvement in the global supply chain,” says Daniel Morrison, Head of Marine Portfolio at NTI. “The pricing of shipping has normalised, the reliability of global shipping is returning, and the level of claims have returned to normal, too.”

However, while things are beginning to look a lot more normal on a day-to-day basis, there are a few more challenges on the horizon.

EMERGING RISKS IN IMPORT AND EXPORT

Of course, there are a number of emerging risks in this area. One of the key things that changed during the pandemic was the ready acceptance of goods. With limited supply,

46 / INSURANCE ADVISER NOVEMBER 2023

the tolerance threshold for quality levels dropped as businesses just wanted to get their hands on goods.

“With limited supply, people were accepting goods much more readily, even if they weren’t perfect,” says Morrison.

“It was harder to get things, but they would still accept them. Now, whether that starts to shift back and we see an increase in claims remains to be seen. We haven’t seen it yet, but with the economic situation that we’re facing, and with lower demand and improved supply, it may be the case we see claims in this area increase.”

In addition to the current economic climate and the ongoing conflicts in Ukraine and Gaza, brokers are encouraged to look broadly at what’s happening globally.

“Brokers should be aware of global trends that may impact an underwriter’s appetite,” says James Butchart, Head of Marine, General Insurance, Zurich Australia & New Zealand.

“Sustainability targets play a key role here and may restrict appetite for commodities such as coal.”

“THE PRICING OF SHIPPING HAS NORMALISED, THE RELIABILITY OF GLOBAL SHIPPING IS RETURNING, AND THE LEVEL OF CLAIMS HAVE RETURNED TO NORMAL, TOO.” – DANIEL MORRISON, HEAD OF MARINE PORTFOLIO, NTI

The world of Marine insurance is Eva and Nick’s backyard.

Part of our national team of experts, Nick Aiello and Eva Bisseh have the knowledge to provide clients with solutions they can depend on. With nearly 50 years’ experience in transport, logistics and shipping NTI is well established as the leading Marine insurance specialist in Australia.

Bring the experts on board nti.com.au Insurance products are provided by National Transport Insurance, a joint venture of the insurers Insurance Australia Limited trading as CGU Insurance ABN 11 000 016 722 AFSL 227681 and AAI Limited Trading as Vero Insurance ABN 48 005 297 807 AFSL 230859 each holding a 50% share.

National Transport Insurance is administered on behalf of the insurers by its manager NTI Limited ABN 84 000 746 109 AFSL 237246. NTI.M182.1.032023

FEATURE / Import/Export Insurance

In addition, the global climate is having an impact too, with water levels in the Panama Canal disrupting the supply chain.

“Water levels are limiting the size of vessels and the amount of cargo that can transit through the Panama Canal on a daily basis,” says Morrison. “So, there’s some disruption getting goods from Australia to the East Coast of the USA. There’s been some slowdown there, and that always causes a backlog, which has a domino effect through the industry – as soon as one part slows down, it impacts other parts of the supply chain.”

Over recent years, bigger shipping vessels have entered the market, too.

Whereas 20 years ago, the larger vessels could carry around 8000 containers, today on certain routes, we’re seeing vessels carrying 24,000 containers.

48 / INSURANCE ADVISER NOVEMBER 2023

“FOLLOWING A FRAMEWORK SUCH AS ‘INCOTERMS’ ENSURES NO GAPS IN COVERAGE AS THE GOODS MOVE FROM THE ORIGINAL PRODUCER THROUGH THE SUPPLY CHAIN.” – JAMES BUTCHART, HEAD OF MARINE, GENERAL INSURANCE, ZURICH AUSTRALIA & NZ

While this has obvious benefits, it also brings with it risks – particularly around accumulation.

“Instead of having two containers on one vessel, a customer might have four containers or six containers on a vessel, and there’s a risk to their business and the balance sheet from an accumulation perspective,” says Morrison.

WORKING WITH IMPORT AND EXPORT CLIENTS

When working with import/export clients, having a thorough understanding of both the client’s business and the global environment affecting that business’s dayto-day is critically important.

Butchart says, “First and foremost, brokers should have a full understanding of their customer’s needs. How a customer trades overseas can have an impact on the conditions of their insurance policy and following a framework such as ‘Incoterms’ ensures there are no gaps in coverage as the goods move from the original producer through the supply chain.”

Morrison says it’s smart to look holistically at the business, and de-risk the supply chain as much as possible.

FEATURE / Import/Export Insurance

“Another thing that we’re seeing off the back of all the supply chain disruption is manufacturers, suppliers and receivers looking at how they can de-risk their supply chain, so they’re not overly reliant on one or two suppliers globally. They are looking at how they can manage their stock

levels and reduce the impact if there’s a future disruption.”

Of course, over the past few years, different strategies have been deployed to ensure the supply chain is running as smoothly as possible. And, with global inflation impacting prices, it’s important that coverage is suitable for the client’s activities today.

Morrison says, “It’s essential to ensure the policy is reflective of the risks they’re facing. If alternative markets have been used, or values have increased, this needs to be considered.”

After all, the bottom line is that it’s essential to make sure the client is covered.

DIGITISING THE IMPORT/EXPORT MARKET As with much of our professional and personal worlds, digitisation is well underway in import and export, and Daniel Morrison of NTI says this is something brokers and clients need to be aware of.

There’s a lot of investment in digitisation in the shipping industry as well as insurance generally, and legislation has just been passed in the UK about accepting digital documents for shipping and logistics.

This will transfer throughout the industry and have a — hopefully positive — impact on trade. It’s speeding things up and will reduce environmental impact too.

“As a profession, we’ve got to be able to ensure we’re part of those digital transactions.

“From a client perspective, customers need to be aware of what it means if things are transacted digitally, rather than on paper. Does it change the process?

“For example, if you have a physical document when something was delivered, you could make a note on the delivery docket if it wasn't received in the condition it was expected to be. Is there a mechanism to do that digitally? How do you manage that from a risk perspective?

“There’s going to be lots to think about.”

50 / INSURANCE ADVISER NOVEMBER 2023

COMMUNITY HUB

COMMUNITY HUB NOVEMBER 2023

The COMMUNITY HUB is your space to showcase your products and services to a specialist audience.

INDEX

Affinity Insurance Brokers....................................................................... 55

AB Phillips ...................................................................................................... 52

Wellington Underwriting......................................................................... 55

AIBI.................................................................................................................... 53

Pollard............................................................................................................... 55

Australasia Underwriting......................................................................... 53

Moran Insurance Brokers..........................................................................57

Newline Group............................................................................................. 53

MGA Insurance Group...............................................................................57

WANT TO ADVERTISE IN THE INSURANCE ADVISER? If you’re a NIBA member with a product or scheme you’d like to promote to a broker audience in our Community Hub section, please contact Tony May E: tmay@niba.com.au

52 / INSURANCE ADVISER NOVEMBER 2023

COMMUNITY HUB

The difficult The The Thedifficult difficult difficult made easy made easy

�aibi

made madeeasy easy

The difficult made easy

Adult Industry Business Insurance

Deliveringinsurance insurance differently Delivering differently Delivering Delivering insurance insurancedifferently differently with a solutions-first approach. with aasolutions-first approach. with with asolutions-first solutions-firstapproach. approach.

Delivering insurance differently Target Liability Risks with aOccupations solutions-first approach.

Target Property Risks Liability Risks •Target Asbestos RemovalRisks / Risks Demolition / Target Property Property Risks Risks Target Target Liability Liability •Target Distressed or Difficult Target Property Risks

Contractors • Vacant Properties incl Heritage •• Earthmoving Asbestos Removal • Distressed ororDifficult Occupations Asbestos • Asbestos Removal Removal / /Demolition /Demolition Demolition / // • Distressed • Distressed or Difficult Difficult Occupations Occupations • Abattoirs / Seafood Processing / Target Propertyincl Risks Target Liability Risks listed properties.

Earthmoving Contractors • Vacant Properties Heritage Earthmoving Earthmoving Contractors Contractors • Vacant • Vacant Properties Properties incl incl Heritage Heritage & Beverage •• EPS Risks / or Food & Beverage ••• Food Asbestos Removal / Demolition / / // Abattoirs Seafood Processing Distressed Difficult Occupations listed properties.

Abattoirs • Abattoirs //Seafood / Seafood Processing Processing listed listed properties. properties.

• Civil Engineers & Construction Manufacture / Distribution Earthmoving Contractors • Vacant Properties incl Heritage Food & Beverage Beverage Food Food & & Beverage • EPS Risks / Food & Beverage • EPS • EPS Risks Risks / Food / Food & Beverage & Beverage (+10m t/o) • Remote & Timber Pubs / Wineries / •• Abattoirs / Seafood / listed properties.

Civil Engineers Construction Civil • Civil Engineers Engineers &&Construction &Processing Construction Manufacture / Distribution Manufacture Manufacture / Distribution / Distribution • Plumbing & Electrical Contracting Food & Beverage •• Distilleries EPS Risks / Food & Beverage (+10m (+10m t/o) t/o) (+10m t/o) • Remote Remote Timber & Timber Pubs Pubs Wineries / Wineries • Remote && Timber Pubs / /Wineries // / • Plastics / Timber Manufacturing • Service to Mining Industry • Civil Engineers & Construction Manufacture / Distribution Distilleries Distilleries storage – Chemicals, Plumbing • Plumbing &&Electrical &Electrical Electrical Contracting Contracting Distilleries Plumbing Contracting •• High-hazard •• Welding & Fabrication (+10m t/o) Remote & Timber Pubs / Wineries / • Plastics • Tyres Plastics / Timber / Timber Manufacturing Manufacturing Service • Service to to Mining Mining Industry Industry • Plastics / Timber Manufacturing Service to Industry •••• Chemicals Fertiliser Distilleries Plumbing &&Mining Electrical Contracting • High-hazard High-hazard storage storage Chemicals, – Chemicals, Welding • Welding &&Fabrication & Fabrication ••• North – Manufacturing Traditional & •••• Railside exposure • High-hazard storage – –Chemicals, Welding Fabrication PlasticsAustralia / Timber Service to Mining Industry Tyres Tyres Chemicals • Chemicals &&Fertiliser &Fertiliser Fertiliser •••• Waste && Recycling Tyres Chemicals • Parametric High-hazardoptions storage – Chemicals, Welding Fabrication • North • North Australia Australia – Traditional – Traditional & & • Railside • Railside exposure exposure • Waste & Recycling • North Australia – Traditional & Railside exposure Tyres •• Chemicals & Fertiliser •• Renewable Energy Storage && Parametric Parametric options options Waste • Waste &exposure & Recycling North Australia – Traditional ••• Railside Parametric options Waste &Recycling Recycling • Waste • Production Waste & Recycling & Recycling Parametric options • Waste & Recycling • Waste &/Recycling ••• CAR Erection All Risks (+10M) • Renewable Renewable Energy Energy Storage Storage && Waste &Energy Recycling • Renewable Storage & Production ProductionEnergy Storage & • Renewable Production • CAR / Erection AllAll Risks (+10M) • Production CAR / Erection Risks (+10M) • CAR / Erection Risks (+10M)today on 1300 988 643 or visit our website: Contact ourAllunderwriters • CAR / Erection All Risks (+10M) AIBI is a registered trading name of Thurston Insurance Brokers Pty Ltd. Thurston Insurance Brokers Pty Ltd is a Corporate Authorised Representative of McLardy McShane Partners Pty Ltd, Australian Financial Services Licence No 232987 ABN 14 064 465 309.

McLardy McShane Partners Pty Ltd is a member of The Steadfast Group.

Australasiaunderwriting.com.au

Contact Contact our our underwriters underwriters today today onon 1300 1300 988 988 643 643 oror visit visit our our website: website:

Contact ourour underwriters 1300988 988643 643oror visit website: Contact underwriterstoday today on on 1300 visit ourour website:

Australasiaunderwriting.com.au Australasiaunderwriting.com.au

Australasiaunderwriting.com.au Australasiaunderwriting.com.au

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/ 53 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)

INSURANCE BROKERS

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/code 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.

A0722p58-60 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 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.

SPECIALISTS IN COMMUNITY HUB EQUINE LIABILITY

COMMUNITY HUB

Accommodation

Equine Assisted Learning

Petting Zoo

Agistment

Equine Assisted Therapy

Pony Parties

Animal & Petting Zoo

Equine Associations

Pony Rides

Breeding & Studs

Equine Events

Pre-training & Breaking

Carriage Driving

Facility Hire

Rehabilitation

Clinic Organisers

Farriers

Riding Clubs

Clinics

Horse Carriage Driving

Riding Schools

Coaching

Horse Trainers

Saddle Fitters

Dentists

Massage Therapists

1300 130 535 www.affinityib.com.au Affinity Insurance Brokers is an Authorised Representative (No 1288354) of Aon Risk Services Australia Limited AFSL 241141

Untitled-3 1

24/6/2022 12:24 pm

Wellington Underwriting Agencies specialise in labour hire/recruitment, complex liability risks and niche property solutions.

Labour Force includes Broadform Liability, Professional Indemnity and Management Liability and has been developed for: • labour hire companies • recruitment companies • group training and registered training organisations Our Combined General Liability wording has been tailored for complex risks including: • construction • manufacturing • rail • resource sector; and • other hard to underwrite risks Wellington’s Property capabilities are focussed on niche exposures including: • catastrophe-exposed properties • mining sector

Contact our Underwriters today or visit our website at

www.wellingtonu.com.au NIBA.COM.AU / 55

AUGUST 2023

Reimagine: Think Differently

REGIS TER YOUR PLAC

TODA E JUNE 202 3Y

AT THE 2023 NIBA Neet the st M CONVENTIO ate fi ly:

the 2023 You nalists of ng Broker of the Year aw ards

Thin k Different t About Attracting Talen er About the Role of a BrokTHE FUT

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Features:

RECAPPING NIBA GALA LUNCHES

FINANCIAL CLIMATE HITS SUPPLY CHAIN

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 Tony May

National Advertising Sales Manager E: tmay@niba.com.au

INSURANCE

BROKING PRO

FESSION

THE NEW EVENTS MODULE IN YOUR MEMBER PORTAL

THE CHALLENGES OF MANAGEMENT LIABILITY

WE ARE YOUR VOICE

COMMUNICAT Also CHANGING OF THE GUA ION’ THE MIC IS YOU S NEVER BEEN SO IMPO RD Energy Insurance RTANT Profession 2:19 PM RS Patrick8/8/23 Tiernan, al IA0823p01 Cover.indd

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NIBA.COM.AU / 57

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 20 October 2023.

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

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

Ansvar Insurance Limited

A-/STABLE

Partners Life Limited

A/STABLE

First American Title Insurance Company of Australia Pty Limited

A/STABLE

Pinnacle Life Limited

B+/STABLE

General Reinsurance Australia Ltd

A++/STABLE

PROPERTY/CASUALTY

Guild Insurance Limited

A-/STABLE

Accuro Health Insurance Society Limited

B u/STABLE*

Pacific International Insurance Pty Limited

B++/STABLE

A+/STABLE

The Hollard Insurance Company Pty Ltd

A-/STABLE

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

The New India Assurance Company Limited (Australia Branch)

Beneficial Insurance Limited

B++/STABLE

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

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.

58 / INSURANCE ADVISER NOVEMBER 2023

The Hollard Insurance Company Pty Ltd (New Zealand Branch) A-/STABLE 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/STABLE

Allianz Australia Insurance Ltd.

AA-/STABLE

Allied World Assurance Co. Ltd.

A/STABLE

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/NEGATIVE

AA-/STABLE

Medical Insurance Australia Pty Ltd.

A-/STABLE

A/STABLE

Mitsui Sumitomo Insurance Company Limited

A+/STABLE

NorthStandard Ltd.

A/STABLE

QBE Insurance (Australia) Ltd.

A+/STABLE

QBE Insurance (International) Ltd.

A+/STABLE

Society of Lloyd’s

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 20 October 2023.

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

Sompo Japan Insurance Inc.

A+/STABLE

Factory Mutual Insurance Company

A+/POSITIVE

Southern Cross Benefits Limited

A/STABLE

Great Lakes Insurance SE

AA-/POSITIVE

Tokio Marine & Nichido Fire Insurance Co., Ltd.

A+/STABLE

Hannover Life Re of Australasia Ltd.

AA-/STABLE

XL Insurance Company SE

AA-/STABLE

Zurich Australian Insurance Ltd.

AA-/STABLE

IAG New Zealand Ltd.

AA-/STABLE

Medical Insurance Society 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

A+/STABLE

AIA Australia Ltd.

A+/STABLE

Southern Cross Benefits Ltd.

A/STABLE

Challenger Life Company Ltd.

A/STABLE

Southern Cross Pet Insurance Ltd.

A/STABLE

MetLife Insurance Ltd.

A+/STABLE

Teleco Insurance (NZ) Ltd.

BBB+/STABLE

REINSURERS

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

AA-/STABLE

Vero Liability Insurance Ltd.

AA-/STABLE

Zurich Australian Insurance Ltd.

AA-/STABLE

HEALTH INSURERS NIB NZ Ltd.

A-/STABLE

Southern Cross Medical Care Society

A+/STABLE

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

LENDERS MORTGAGE INSURERS Arch Lenders Mortgage Indemnity Ltd.

A/STABLE

Helia Insurance Pty Ltd.

A/STABLE

QBE Lenders' Mortgage Insurance Ltd.

A/STABLE

LIFE INSURERS

Aspen Insurance UK Ltd.

A-/STABLE

Berkley Insurance Company

A+/STABLE

General Reinsurance Australia Ltd.

AA+/STABLE

General Reinsurance Life Australia Ltd.

AA+/STABLE

Hannover Life Re of Australasia Ltd.

AA-/STABLE

Hannover Rück SE

AA-/STABLE

HDI Global SE

A+/STABLE

HDI Global Specialty SE

A+/STABLE

Munchener Ruckversicherungs-Gesellschaft (Munich Reinsurance Co) AA-/POSITIVE 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 53 for S&P Global disclaimers and additional information

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