Insurance Adviser December 2023/January 2024

DECEMBER 2023 / JANUARY 2024

LOOKING AHEAD TO 2024

Features: SERVICE WITH A RELUCTANT SMILE Challenges in hospitality

2024 INDUSTRY OUTLOOK

NIBA Vice-President on the year ahead

Also inside: PROTECTING PRODUCTION

Manufacturing liability insurance

WE ARE YOUR VOICE

It’s now easier to do business with us We've launched our new risk appetite guides for SME, Workers Compensation, Farm and Motor Fleet Insurance, so you know exactly what we prefer to insure. Request quotes with confidence, answer questions faster and be ready with the best cover options for your clients.

Visit allianzengage.com.au to learn more.

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

CONTENTS

December 2023 / January 2024

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

Insurance Adviser magazine is published by NIBA

Publisher

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

NIBA Editor Virat Nehru

FEATURES 22 LOOKING AHEAD TO 2024 NIBA Vice-President Nick Cook on what lies ahead

Editorial enquiries

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.

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.

28 SERVICE WITH A RELUCTANT SMILE Things aren’t going to get any easier for the hospitality industry NIBA.COM.AU / 3

CONTENTS

December 2023 / January 2024

FEATURES

36

PROTECTING PRODUCTION

Numerous challenges are emerging in manufacturing liability

IN EVERY ISSUE

REPRESENTATION

NIBA CEO Welcome..................................... 6 Member Benefits ............................................. 8 Industry Bulletin .......................................... 12 Insure Your Future ....................................... 18 NIBA Member Portal ................................... 20

EVENTS

2023 in Review .............................................. 10

REFERENCE

Community Hub .......................................... 43 Insurer Strength Ratings .............................. 54

NIBA Mentoring Program........................... 42 Event Pictorials.............................................. 46

DISPLAY ADVERTISING INDEX – DECEMBER 2023 / JANUARY 2024 Allianz...................................................... IFC

Insure Your Future.................................19

ASR...............................................................41

Focusnet.......................................................5

Hunter........................................................ 23

QPIB...........................................................49

Community Underwriting.....................7

CBN............................................................. 31

Code of Practice.................................... 53

Insurance Advisernet............................. 9

Ebix............................................................. 37

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

Vero....................................................... 15, 26

NIBA Advertising ..................................39

If you’d like to advertise your products and services through NIBA, please contact Tony May today on (02) 9459 4303 4 / INSURANCE ADVISER DECEMBER 2023 / JANUARY 2024

CYBER RESILIENCE • SECURE VIRTUAL DESKTOP • M365 • 24/7 SUPPORT • INSURANCE AUTOMATION

I

AT

RE

FO

RM

SEC U

.T . IN

SU RA NC E

PL

INSURANCE TECHNOLOGY SPECIALISTS

Change is easy with FocusNet Frustration Free I.T.

info@focusnet.com.au

1300 077 777

focusnet.com.au

CEO / Welcome

HAPPY HOLIDAYS

A

s 2023 draws to a close, looking back, there is much to see. Looking to 2024, there is even more ahead.

Having started the year mopping up from floods in Northern NSW and South Queensland, we now brace for what is predicted to be a dry, hot summer.

Perhaps I am drinking the Kool-Aid, but I feel that insurance, more so the concept of “risk”, has never been more front of mind in terms of mainstream discussions.

Of course, risk can take on many forms, and insurance brokers are best placed to assist clients in identifying, managing and insuring against risk. Inflation and the increasing cost of living have forced families and businesses to look at their household spending and ensure they are getting the most value for their electricity, their internet, their groceries, and their insurance.

In NSW, the Emergency Services Levy artificially inflates premiums unnecessarily, and we were heartened when the NSW Government announced it would review the current system that penalises those who take out insurance. The Tasmanian Government is already well advanced in its review, but as is often the case, there are winners and losers, which has slowed the process.

Hopefully, NSW will not suffer the same fate that forced the Government to backflip a few years ago.

The Federal Government has pledged an unprecedented amount of funds into risk and mitigation through its Disaster Ready Fund. Adding to the federal investment are a few state initiatives. The Cyclone Reinsurance Pool continues to gain momentum as insurers join the pool, though it seems it will be some time before we see if there are any true benefits from the pool.

Cyber threats have long been talked about in insurance circles, but only recently has the reality hit, with several high-profile incidents reminding us how vulnerable we are and how important it is to be aware and mindful of how we interact and how we store our data.

Brokers continue to play a role in workers’ compensation through collaboration and cooperation in NSW through icare and Workcover WA in Western Australia.

The first tranches of draft Legislation relating to the Quality of Advice review have arrived and brokers are well placed, given the existing requirements that are already in place through the 2022 Insurance Brokers Code of Practice.

Next year, we will see continued challenges with inflation, but hopefully there are green shoots signaling the longawaited softening of insurance markets and opening capacity to improve accessibility and affordability of insurance.

6 / INSURANCE ADVISER DECEMBER 2023 / JANUARY 2024

NIBA will continue to advocate for its members through our pillars of Representation, Professionalism and Community.

On that note, I would like to take the opportunity to thank all of those in the NIBA broker community who have contributed to the success of NIBA this year. Our Divisional Committees, Young Professionals, and the Convention Committee, who helped deliver a wonderful return to the NIBA Convention at the Gold Coast. Thank you also to those who participated in the Mentoring Program, many of whom have done so for a number of years. Nurturing the next wave of professionals is so important, and we have been heartened by the extremely positive response to the NIBA ‘Insure Your Future’ initiative, thanks to the dedication of the Committee that has been ploughing away for the last 12 months to get the initiative off the ground and encourage more people to choose a career in insurance broking.

Thank you to all our sponsors and exhibitors who helped us deliver the various professional and social events throughout the year. It sounds clichéd, but we really can’t run these without you.

We started the year with a new Constitution and some fresh new faces on the Board, and we are lucky to have the variety of expertise and experience to help guide NIBA through different times. And through all this, the small but dedicated NIBA team managed to make things happen and introduced some exciting updates – our new webpage, database and Member Portal.

So, like me, I am sure you are all ready for a break. From everyone at NIBA, we wish you a Merry Christmas and an exciting 2024.

PHILIP KEWIN Chief Executive Officer, NIBA

2021 2020 2019 2018 2017 2016

Making a real difference to the way insurance is provided to the Not for Profit Sector

With more than $7.4m in donations so far, we are making a real difference to the way insurance is provided to the Not for Profit sector.

Insuring Not for Profits - it’s all we do

NIBA / Member Benefits

GET TO KNOW THE NIBA TEAM

HEIDI SCHMIT EXECUTIVE ASSISTANT AND OPERATIONS MANAGER What does a typical day in your role look like?

On a typical day, I handle numerous executive and operational requests.

However, what makes my role exciting is its unpredictable nature. No two days are the same – I could be working on completing a particular task or project at one moment and then suddenly be faced with unexpected challenges the next. And that’s what I love about my role.

What’s something you’ve achieved at NIBA that you’re proud of?

The search and implementation of the new Member Portal, along with a refreshed website, is probably the most significant project. I took the lead on this when I started at NIBA, and in the six months since launch, we are already seeing huge benefits in our internal processes, and it is also helping us better engage with members. It’s a continuous work in progress and I’m looking forward to seeing what more we can achieve in this space.

NIBA SAYS CONGRATULATIONS

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

I finished All The Light You Cannot See a few days ago and was truly moved by its message of finding hope in the darkest of times. On a lighter note, I have been watching a lot of The Big Bang Theory lately and can’t believe I went so long without seeing an episode!

Grant Handley, Aon Risk Services Australia

If you had to recommend a travel destination, what would that be?

Traveling is one of my greatest passions, and this year I had the pleasure of visiting France for a whole month. The food, the views, and the experience were all breathtaking. However, Portugal holds a special place in my heart, and it’s one of the places that I’d always want to revisit.

NIBA CONGRATULATES THE FOLLOWING MEMBERS FOR RECEIVING THEIR QPIB DESIGNATIONS Felice Phil Spagnuolo, Guardian Insurance Brokers Pty Ltd Matthew Tan, First Priority Financial Services Pty Ltd Matthew Herbig, Hann Insurance Brokers Pty Ltd

Nikita Willis, Knightcorp Holdings Pty Ltd Jessica Mercer, Phoenix Insurance Brokers Tracey Canwell, Marsh Wendy Yeung, Midland Insurance Brokers Australia Pty Ltd

NIBA CONGRATULATES THE FOLLOWING MEMBER FOR BECOMING AN ASSOCIATE MEMBER Reanda Renzella, AB Phillips Alexander Leete, RSM Build LeRoy Laaiva, McLardy McShane Partners Pty Ltd – Stewart Insurance Brokers

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.

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.

8 / INSURANCE ADVISER DECEMBER 2023 / JANUARY 2024

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

high quality

ADVICE BEGINS WITH A

high quality NETWORK

Insurance Advisernet is looking for you to join the most awarded Authorised Representative network in Australia.

As a network that prides itself on its positive and supportive culture, you’ll never feel more at home. Our emphasis on expert advice means that you will have access to all the support systems you need to perform at your very best, including referral leads, IA Foundation initiatives to support your local community, marketing support and BOT technology for product comparison, providing more efficiency for you and your team.

NIBA / Representation

REPRESENTATION: 2023 IN REVIEW While it’s safe to say 2022 was dominated by the Quality of Advice Review, NIBA’s policy and advocacy work for 2023 has focused on a varied range of issues across both state and federal government. Below is a sample of the issues and submissions NIBA engaged on throughout the year. As always, NIBA’s advocacy would not be as strong if not for the work of our divisional committees and members- we thank you for your insight and support over the past year.

SENATE REVIEW OF ASIC INVESTIGATION AND ENFORCEMENT

The year kicked off with the Parliamentary Joint Committee on Corporations and Financial Services review of ASIC investigation and enforcement. The Review, which was referred to the Committee in late 2022, considered the capacity and capability of ASIC to undertake proportionate investigation and enforcement action arising from reports of alleged misconduct.

In particular, the Review focused on whether ASIC was meeting the expectations of government, business, and the community with respect to regulatory action and enforcement and the range and use of the regulatory tools available to ASIC and their effectiveness in contributing to good market outcomes.

NIBA’s submission highlighted the challenges of a one-size-fits-all approach to financial services regulation and the impact this approach has on advisers and their clients, especially in the wake of the Royal Commission.

2023-24 PRE-BUDGET SUBMISSION

In the lead-up to the 2023-24 Budget, the Federal Government called for submissions from individuals, businesses and community groups on their views regarding priorities for the upcoming Budget. NIBA provided a submission outlining measures that it believes would increase household resilience to natural disasters.

In its submission, NIBA called for the expansion of the newly established Disaster Ready Fund (DRF) to allow Australian homeowners in disaster-prone areas to undertake urgent household-level disaster mitigation projects.

While reiterating its support for the public mitigation measures that are proposed to be funded by the DRF, the submission highlighted that for many communities, public mitigation works will have little impact on improving resilience to natural disasters and that

10 / INSURANCE ADVISER DECEMBER 2023 / JANUARY 2024

household-level mitigation works should be carried out in lieu of/to complement community-level mitigation.

The submission highlighted that such a program would have a number of benefits including reducing the risks and costs associated with recovery from natural disasters, contributing to the economy by creating jobs and stimulating investment in the construction and engineering sectors, promoting community resilience and reducing insurance premiums.

NIBA / Representation

SENATE SELECT COMMITTEE ON AUSTRALIA’S DISASTER RESILIENCE

Late last year, the Senate Select Committee on Australia’s Disaster Resilience was appointed by the Senate to inquire into Australia’s preparedness, response and recovery workforce models, as well as alternative models to disaster recovery.

NIBA’s submission to the Committee reiterated its call for increased investment in disaster mitigation through the expansion of the Disaster Ready Fund to enable homeowners in disaster-prone areas to undertake household-level disaster mitigation projects.

The submission pointed to the success of the Queensland Government’s Household Resilience Program, which allowed homeowners in northern Queensland to undertake cyclone resilience works on their property.

NIBA’s encouraged the Federal Government to work closely with the general insurance industry to ensure that mitigation works would be recognised by insurers when determining premiums so as to encourage homeowner participation.

An interim report was released in September, with 4 recommendations, the final report is expected to be tabled

by April 2024.

AFCA RULES AND OPERATION GUIDELINES REVIEW

In May, the Australian Financial Complaints Authority (AFCA) announced it would undertake public consultation on proposed changes to its official rules and operational guidelines in light of the recommendations of the Treasury-led Independent Review of AFCA. AFCA proposed changes to its Rules and Operational Guidelines in the following areas: 1. E nsuring complaints do not progress to case management or decision status where an appropriate offer of settlement has already been made.

2. Excluding complaints that share the same subject matter and content as a previously discontinued complaint.

3. Enabling AFCA to not consider complaints lodged by a “paid representative” where they do not hold an ACL/AFSL or are not acting in the client’s best interests and where appropriate exclude them from lodging future complaints for up to 12 months.

4. Excluding complaints who submit multiple complaints that are closed or discontinued by AFCA. 5. D iscontinuing complaints because of unreasonable and inappropriate conduct including bullying, harassment, intimidation, and abuse.

6. E nabling AFCA to discontinue a complaint where the complainant has not suffered any loss.

7. Minor changes to definitions and language to update certain areas of the Rules arising from legislative changes, to provide greater clarity and transparency of the scheme’s operation overall.

NIBA’s submission was largely supportive of the changes, as they would prevent financial firms from incurring fees where they have made genuine attempts to compensate the complainant for financial loss, or where the complaint had previously been discontinued.

Following consultation, the proposed changes were submitted to ASIC for approval with the approval process expected to be finalised by the end of the year.

INQUIRY INTO INSURERS’ RESPONSES TO 2022 MAJOR FLOOD CLAIMS

NIBA 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-impacted 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

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

The committee will provide a final report by 30 September 2024.

TASMANIAN FIRE LEVY

Following consultation in late 2021, the Tasmanian Government released the draft Tasmania Fire and Emergency Services Bill for consultation.

The Bill would significantly overhaul the states’ fire and emergency services funding, including abolishing the levy on commercial insurance policies.

NIBA’s submission encouraged the government to implement the reforms as a priority, noting that the current model fails to meet the characteristics of an effective tax system; fairness, simplicity, adequacy, transparency, and administrative ease.

QUALITY OF ADVICE REVIEW

The year closed with the Quality of Advice Review, with the government releasing the first tranche of legislation to introduce a number of recommendations made by the Independent Reviewer, Michelle Levy.

Among the reforms to be introduced in this first stage are; • I ntroducing client consent requirements for life insurance, general insurance and consumer credit insurance commissions; and •A mending FSG requirements to allow providers greater flexibility in the way they provide disclosure documents.

NIBA provided feedback supporting the draft legislation, in particular, NIBA praised the government for taking industry feedback on board to ensure that the commission consent requirements would not result in clients being left uninsured if advisers were required to wait for consent prior to renewing cover.

For more information on the proposed reforms, see page 12.

NIBA.COM.AU / 11

PROFESSIONALISM / Industry Bulletin

QUALITY OF ADVICE REVIEW LEGISLATION UNVEILED

L

ast month Assistant Treasurer and Minister for Financial Services, the Hon Stephen Jones MP unveiled the first tranche of legislation, to implement the government’s response to the recommendations of the Quality of Advice Review.

As announced by the Federal Government earlier this year in its ‘Delivering better financial outcomes roadmap’, the reforms will be introduced as part of a three-stage process, with each stage aligned to a different stream: • Stream one – removing red tape that increases the cost of advice; • Stream two – expanding access to retirement income advice; and • Stream three – exploring new channels for advice.

The legislation includes reforms aimed at removing regulatory red tape that increases the cost of advice including:

• Introducing client consent requirements for life insurance, general insurance and consumer credit insurance commissions (QoA recommendations 13.7-13.9); and • Amending FSG requirements to allow providers greater flexibility in the way they provide disclosure documents (QoA recommendation 10).

Other reforms that were originally slated for release in Stream 1 including replacing Statements of Advice with a fit-for-purpose record of advice (QoA recommendation 9) and the removal of Safe Harbour steps (QoA recommendation 5) have been postponed until Stream 2.

FLEXIBILITY FOR FINANCIAL SERVICES GUIDE (FSG) REQUIREMENTS

The draft legislation proposes amending the Corporations Act to allow providers of personal

12 / INSURANCE ADVISER DECEMBER 2023 / JANUARY 2024

advice to either continue to give their clients a FSG or instead make the FSG information publicly available on their website.

A provider can choose whether to continue providing a FSG in accordance with the current law or alternatively provide the FSG on their website. To rely on the alternative option, where a provider does not give the client a FSG and instead includes the information on its website, certain requirements must be met: • The financial service provided to the client is personal advice; and • At the time the advice is provided, the client has not requested a copy of the FSG and the information that would have been in the FSG is available on the provider’s website; and • At the time the advice is provided, each web page displaying the information is readily accessible, up to date and records the date the page was prepared or last updated.

PROFESSIONALISM / Industry Bulletin

NEW CONSENT REQUIREMENTS FOR GENERAL INSURANCE COMMISSIONS

The draft legislation introduces new client consent requirements for general insurance, life insurance and consumer credit insurance products. The requirement stipulates that advisers who provide personal advice to a retail client about a life risk insurance, general insurance or consumer credit insurance product must obtain the client’s informed consent before accepting a monetary benefit such as a commission.

The new requirement also stipulates that advisers must inform the client of any services that they will provide the client for the relevant product, mirroring the terms of engagement obligations under the current Insurance Brokers Code of Practice (Code).

Unlike the Code, which requires Subscribers to disclose the dollar amount of commission, the proposed legislation allows the disclosure to be limited to a percentage range i.e. 10-20% of the premium. In keeping with the Code’s commitment to set standards above those required by law, Subscribers will still be required to disclose the dollar amount of commission to retail clients.

The legislation stipulates that a written record of the client’s consent must be retained, however, clients are not required to provide consent in writing. This allows brokers greater flexibility when obtaining consent from clients.

In response to concerns raised by NIBA that the commission consent obligations could result in clients being left uninsured if brokers were required to wait for the client to provide consent prior to renewing a policy, the draft legislation does not require brokers

to obtain the client’s consent at each renewal provided the broker informed the client they would receive commission on each occasion that the policy is renewed prior to obtaining the client’s original consent.

Reactions to the draft legislation across the financial services landscape have been mixed. While most organisations welcomed the announcement many expressed concerns that the promised reforms to Statements of Advice and the Safe Harbour steps had been delayed.

“It is a missed opportunity to have deferred implementing key recommendations on abolishing the safe harbour steps and simplifying SoA, which would achieve the most in reducing the regulatory cost burden on financial advice,” said Financial Services Council CEO, Blake Briggs.

In a message to members, NIBA CEO Phil Kewin said, “We welcome the release of the draft legislation and look forward to working with government on these important reforms to remove regulatory red-tape and improve the affordability and accessibility of general risk advice.”

• Expanding the definition of personal advice so that all financial advice will be considered to be personal advice if, it is given to a client in a personal interaction or personalised communication by a provider of advice who has (or whose related body corporate has) information about the client’s financial situation or one or more of their objectives or needs.

• Removing the requirement to provide a general advice warning.

• Replacing the current Best Interest Duty with a duty to provide good advice.

In a briefing to media, the minister stated that the government intends to finalise their position on the remaining recommendations by the end of this year.

NEXT STEPS

Consultation on the draft legislation closed earlier this month. NIBA has provided a submission on behalf of members, expressing their commitment to work with government on the remaining reforms.

In their formal response to the Quality of Advice Review, the government accepted 14 of the 22 recommendations put forward by the independent reviewer and indicated it would consult further on a number of reforms relevant to insurance brokers as part of Stream 3. Among these reforms are:

NIBA.COM.AU / 13

PROFESSIONALISM / Industry Bulletin

NIBA WELCOMES ANNOUNCEMENT OF NSW ESL REFORM

T

he NSW Government has announced its intent to reform the Emergency Services Levy (ESL) in favour of a fairer and more sustainable emergency services funding model.

NIBA has long been a vocal advocate for ESL reform, recognising that the current model disproportionately penalises responsible property owners and places an unfair burden on those who take proactive steps to protect their homes and businesses, undermining the principle of shared responsibility in community safety.

NIBA CEO Phil Kewin said, “The announcement to reform the Emergency Services Levy is a positive move towards creating a fairer and more equitable system for all. The current ESL model penalises responsible home and business owners who invest in insurance to protect their assets.

NIBA has consistently highlighted the need to rectify this imbalance and create a system that incentivises responsible risk management practices and increases insurance affordability.”

The ESL accounts for about 18% of the cost of insurance for households in NSW, and up to about 30% for businesses.

The reform will replace the existing insurance-based levy with a “state-wide contribution” model. It is not yet known what form this model will take or how the government intends to collect the funds required to maintain the state fire and emergency services.

This year, the Actuaries Institute estimated that insurance costs went up by more than 50% on average for people in high-risk areas. The Institute also found that about 250,000 people experienced ‘insurance stress’, meaning the cost of insurance was higher than four weeks rent.

The Hon Stephen Jones, Assistant Treasurer and Minister for Financial Services, welcomed the move.

“It is great to see this announcement from Premier Minns today. The removal of the ESL from insurance policies is an excellent decision and a long overdue reform. It will come as a huge relief for

households and businesses in NSW feeling the crunch of cost-of-living pressures.”

The Insurance Council of Australia (ICA) also congratulated the NSW Government for its decision to reform the ESL. According to the ICA, abolition of the ESL on insurance will see the cost of home cover up to 15% lower on average, while for business cover, the figure will be around 23% lower.

State Budget Papers estimate that insurance customers will pay $1.3 billion through the ESL this year and, without reform, would pay more than $5.1 billion over the forward estimates.

“Reforming the ESL will be a major win for insurance affordability in New South Wales, an issue that is being discussed around kitchen tables and in small businesses around the state,” said Andrew Hall, CEO, ICA. Business NSW – the state’s peak business organisation representing almost 50,000 businesses – has also welcomed proposed ESL changes.

14 / INSURANCE ADVISER DECEMBER 2023 / JANUARY 2024

“There are thousands of mum and dad businesses that are one disaster away from shutting their doors permanently – all because they simply can’t afford insurance,” Business NSW CEO Daniel Hunter said.

“Businesses receiving insurance payouts are often obliged to rebuild their assets with the same inherent vulnerabilities as before the claim, in many cases leaving them yet again susceptible to the natural disaster that caused the original damage.”

The NSW Government says it will begin a consultation process with industry and stakeholders on the best options for NSW to move towards a better, more sustainable funding model.

This reform would bring NSW in line with other mainland states and territories, which fund state fire and emergency services through either a property levy or consolidated revenue.

NIBA will be engaging with the NSW Treasury on the proposed reforms and will make a formal submission on behalf of members when consultation begins in 2024.

ADVERTORIAL / Vero

A YEAR OF WORKING TOGETHER, TO WIN TOGETHER

R

eflecting on the year that’s been, it’s certainly true that the insurance industry and the broader market are evolving at an accelerating rate.

Addressing broker feedback has been a key focus for Vero in 2023, resulting in several improvements to the way we deliver insurance products to brokers and our shared customers.

Thanks to significant investment, the first phase of our upgraded SME platform has been rolled out, delivering a number of pricing and risk selection enhancements to improve the broker experience for new business. This improvement has seen Vero remove the reliance on outdated systems and enable us to address what was a key pain point for brokers. The next phase is well underway for SME renewals as well as additional products across selected broker platforms, which is due to be released in early 2024. These improvements will continue to free up Vero Underwriters to deliver greater value on more complex risks.

Vero’s commitment to delivering best-inclass claims has continued to be a cornerstone of our offering in market against a backdrop of natural disasters.

Consistent investment in both people and technology for commercial claims has been essential to Vero’s approach. Vero’s dedicated claims teams are the driving force behind their Best-in-Market commitment. Vero has strategically built a team of claims professionals supported by specialised external partnerships.

Digitalisation of claims processes aims to improve response times, whereas building depth and reach into our building panels and enhancing disaster response capabilities have been a priority to help support business customers in their time of need.

Listening to broker feedback By actively listening to broker needs and addressing training requirements, Vero ensures a strong customer relationship, which is essential for delivering a positive claims experience. The introduction of Claims Voice of Customer Surveys in 2023 further improved customer satisfaction. Sent at the time of claim finalisation, these surveys provide valuable feedback that drives continuous improvement and celebrates the exemplary work of Vero’s claims professionals.

Additionally, several other programs enable the team to stay close to broker sentiment and market feedback including Vero’s annual SME

Insurance Index, the NIBA Young Broker of the Year sponsorship & Mentoring program, Insightful Broker Forums, Future Ready You and Broker Learning Gateway programs, plus of course our dedicated state-based BDM & Underwriting teams.

Broker recognition It is great to see Vero’s efforts resonating with brokers and our team being recognised by several industry awards. Vero received the Gold Mansfield Award for Claims excellence for the fourth consecutive year and shortly after the NIBA Large General Insurer of the Year in 2023.

“These two awards are particularly important to us as they are voted for by brokers, and let us know we are focusing our efforts in the right places”, said Michael Miller, CEO Commercial and Personal Injury.

A new operating model Building on the positive momentum, Suncorp recently established a new operating model separating out the Commercial Insurance and Personal Injury business, led by Michael Miller as CEO. This change will facilitate end-toend responsibility for underwriting, pricing, product, distribution and claims for our Commercial Insurance customers.

The new operating model evolves with our strategy to provide an enhanced focus for the Commercial Insurance business (including workers compensation), further demonstrating our continued commitment to serving our customers.

Vero and our broker partners play an integral role in Suncorp’s strategic ambition and growth agenda as well as delivering on our purpose to achieve improved resilience for our shared customers.

Looking ahead to 2024 and beyond Vero remains committed to investing in its capabilities, prioritising automation and digital processes to enhance the overall claims experience, making it more efficient and seamless for customers.

As we enter FY24, Vero’s straight-through processing capabilities are poised to enable fast settlements for smaller claims, while their competent workforce is ready to handle more complex cases with exceptional support.

As Vero Insurance continues to grow and improve its service, clients and brokers can expect even greater support and efficiency, ensuring peace of mind during challenging times.

Find out more: Insurance issued by AAI Limited ABN 48 005 297 807 trading as Vero Insurance. Read the Product Disclosure Statement before buying insurance. The Target Market Determination (TMD) is also available. Go to vero.com.au for a copy. The information is intended to be of a general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon it – please make your own enquiries.

NIBA.COM.AU / 15

PROFESSIONALISM / Industry Bulletin

MORE THAN 400,000 COMPLAINTS TAKEN TO AFCA SINCE ITS INCEPTION

A

ustralia’s financial dispute resolution scheme has reached a major milestone – five years of operation. Consumers have taken more than 400,000 disputes to the Australian Financial Complaints Authority (AFCA) in that time, securing a total of $1.2 billion in compensation and refunds.

Since starting operations in November 2018, AFCA has worked with more than 16,500 victims of scams, more than 7,500 people affected by natural disasters (excluding COVID), and more than 30,000 people experiencing financial difficulty. It registered more than 17,000 COVID-related complaints, helping to resolve disputes involving financial products such as travel insurance and superannuation.

In addition, AFCA’s systemic issues work – where it identifies wider issues than a single complaint – resulted in 4.9 million people receiving more than $340 million.

“We have dealt with hundreds of thousands of cases over the past five years, but we are fully aware that behind every complaint is an individual, a family or small business,” AFCA’s Chief Executive Officer and Chief Ombudsman, David Locke, said.

“We know how stressful a financial dispute can be, and how critical it is to help consumers and firms resolve their differences.

“An ombudsman service also plays an important role in supporting public confidence in engaging with the financial services sector, because we are here to help when consumers and firms can’t resolve disputes on their own. We work to contribute to a fair and efficient financial services sector.”

Complaints to AFCA reached a record high of 97,000 in the last financial year.

Over its first five years AFCA resolved 60% of cases in less than 60 days – mostly by helping the two sides reach agreement.

16 / INSURANCE ADVISER DECEMBER 2023 / JANUARY 2024

Only 6% of cases needed to progress to a formal decision.

AFCA was set up after the 2017 Ramsay Review recommended the establishment of a single scheme to handle disputes formerly handled by the Financial Ombudsman Service, the Credit and Investments Ombudsman and the Superannuation Complaints Tribunal.

Since inception, AFCA has achieved the following: • 402,346 complaints registered • $1.18 billion in compensation or refunds for consumers and small businesses • 68% of complaints resolved by agreement • 6% of cases progressed to a formal decision • 46,097 members of AFCA Scheme (10,494 firms plus 35,603 individual authorised credit representatives) • 69% of financial firm members have not had a complaint made against them.

PROFESSIONALISM / Industry Bulletin

AN OPERATIONAL REVIEW OF ICARE TO BE CONDUCTED AS PART OF THE NEXT PHASE OF REFORM

A

n operational review into icare has been launched, that will look to cut excessive spending, waste and salary costs.

The number of senior executives and their remuneration will be scrutinised as part of the review, in line with the NSW Government’s commitment to freeze the pay and cut the number of senior executives across the government. Medical, income and other support provided to injured workers are not impacted by this review.

The review will be led by Treasury, after the NSW Government passed new laws to provide Treasury with powers to obtain information and records on icare spending.

Savings identified in the review will flow through to individuals and businesses across NSW by aiming to put downward

pressure on workers compensation premiums and protecting benefits to injured workers.

The review is expected to report in time for icare to identify permanent savings in its net cost of operations by 1 March 2024.

“We will remain unrelenting in our pursuit of best practice and best governance at icare. This review continues the long but necessary road of reform that began within weeks of Labor coming to government,” said the Minister for Work Health and Safety Sophie Cotsis.

“Businesses need access to a scheme with affordable premiums and workers need to be supported when things go wrong at work.”

The review follows previous reforms to icare implemented by the NSW

Government, including the passage of new laws in August to put worker and business representatives onto the icare board.

Back in August, new legislation was passed, allowing the Minister to appoint employer and employee body representatives to the icare board as the first step in the reform of icare’s governance.

Two suitably qualified employer and employee directors will be nominated by employer and employee representatives and will replace two non-executive directors, leaving the size of the icare board unchanged with nine directors.

The two new directors will provide fresh perspectives, helping to better represent the employers who pay workers compensation premiums and the injured workers who need to access the scheme.

NIBA.COM.AU / 17

So, how can you get involved?

• Ensure that your business is registered to feature on our Employer Directory This will enable potential talent to search through the largest variety of available and appropriate opportunities near them. To register, visit: insureyourfuture.com.au/directory-submission

• Is your business already doing things to attract talent? Get in touch!

We have had some very useful conversations with members who are actively taking steps to tackle the talent shortage within their businesses, giving unique insight into the different challenges currently being faced. It is invaluable to those working on IYF to hear about what is already being done and how IYF can support this, while also getting fresh ideas and valuable insight into what future resources may be useful. We would love to hear from more members on this so, if you have experiences to share, please email ienoizi@niba.com.au to organise a conversation.

• Keep an eye out We are always looking for innovative approaches to the talent shortage and want to offer a comprehensive set of resources to those who use the IYF site. We ask that members inform us of similar initiatives from either other countries or industries, so that we can add to our knowledge base. Please send any information or ideas to info@insureyourfuture.com.au.

The website and accompanying content for NIBA-led talent attraction initiative, ‘Insure Your Future’, is set to launch early 2024. Here is some insight into the work that has gone into the initiative to date.

The IYF Committee, comprising of NIBA staff and state representatives from across the country, has been meeting regularly since September 2022.

Their work has involved identifying demographics of people who can potentially be attracted to join the profession and the specific needs of these groups to make decisions about their broking career and create clear, actionable pathways for them to take.

The Committee has been researching these avenues as well as meeting with individuals and organisations who can provide relevant expertise or insights. This work has informed the development of a variety of content which will be hosted on the IYF website, helping to clearly explain the broking profession and the many different pathways available into and within it to those who might be potentially interested to take up the profession.

We have also spoken with NIBA members around the country about the efforts they are putting in to address the talent shortage and promote the broking profession in their communities. From these conversations, we have been able to gather inspiration for further resources IYF can provide to both members and talent in the long-term.

The consultation and research behind the initiative is ongoing, with new avenues and ideas still being explored with a view to expanding the resources IYF offers over time.

We've been doing career expos, going to universities, going to high schools for a long time.

But we want to up the ante. What we need from our members is their feedback and their participation. If you've got an idea, let us know.

We want to know what's happening in your local area, your regional area, your state area so we can spread Insure Your Future net further.

Cameron Sheild, Lockton Companies Australia Chair of the Insure Your Future Committee (previously the Promoting Insurance Broking Committee)

Visit insureyourfuture.com.au for more information

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

NIBA / Member Portal

USE YOUR NEW MEMBER PORTAL TO RECORD AND TRACK YOUR CPD Do you find it difficult to keep track of your Continuing Professional Development (CPD) activities?

Well, worry no more! With the ‘My Accreditation’ module available in your new Member portal, you can now easily record and monitor your CPD, ensuring that all your CPD activities are stored in one convenient location.

To help you better understand how to use this module, below is a step-by-step process.

1

3

FIND THE ‘MY ACCREDITATION’ MODULE IN THE TOP RIGHT CORNER OF YOUR MEMBER PORTAL.

THIS STEP ALLOWS YOU TO CREATE FOLDERS TO STORE AND TRACK YOUR CPD. IN THE BELOW EXAMPLE, WE WILL TRACK CPD BY YEAR, USING NIBA’S FINANCIAL YEAR AND POINT REQUIREMENTS AS A REFERENCE. Name of Accreditation: 2023-24 Selection Accreditation Classification: Unclassified as all other classification are irrelevant here Completion Deadline: The end of NIBA’s financial year, 31 October Total Hours Required: 25 points, as per NIBA’s requirements.

20 / INSURANCE ADVISER DECEMBER 2023 / JANUARY 2024

2

TO START, CREATE AN OVERALL ACCREDITATION.

NIBA / Member Portal

4

NOW YOU CAN ADD INDIVIDUAL CPD CREDITS TO THIS ACCREDITATION FOLDER.

6

5

ADD IN THE DETAILS OF THE LATEST CPD YOU ACHIEVED, UPLOADING YOUR CERTIFICATE FOR SAFE KEEPING.

AS YOU CONTINUE TO ADD CPD CREDITS, THE SYSTEM WILL TRACK YOUR PROGRESS TOWARDS COMPLETING YOUR YEARLY GOAL.

NIBA.COM.AU / 21

COVER STORY / 2024 Industry Outlook

Looking ahead

to 2024

As we count down to the final few days of 2023, it’s a welcome opportunity to reflect on the year that’s been and what are some of the key areas of focus that brokers and the industry-at-large must keep in mind to position itself for success in the time ahead.

I

nsurance Adviser caught up with Nick Cook, NIBA Vice-President and the Executive General Manager – Partner, Broker Services and Agencies for Steadfast, to get his thoughts on what trends stood out for him this year as well as his outlook on the challenges and possibilities that lie ahead in 2024.

A challenging year for insurers

Reflecting on how this year has fared for insurers, Mr Cook acknowledged that it has been a challenging year for them, as they’ve had to adapt to a changing and evolving landscape.

“Insurers continued to be challenged on a number of fronts,” said Mr Cook.

“Some of these challenges have been around compliance, remediation, and regulation. There have also been challenges around technology that hasn’t allowed insurers to be as nimble in capitalising on new opportunities, and around managing a hybrid workforce.”

The evolving role of the broker

In this evolving industry landscape, brokers have taken an important step in beginning to be seen as trusted advisers for their clients.

“The updated NIBA Code of Practice was released [this year], with improvements across the Code including around vulnerable customers, the terms of engagement, acting ethically, and remuneration disclosure,” said Mr Cook.

“There is much to be proud of with the updated Code, ensuring brokers move towards being seen as a trusted professional for their clients.”

22 / INSURANCE ADVISER DECEMBER 2023 / JANUARY 2024

Helping businesses afford the insurance they need

With 1 in 3 of our customers finding it difficult to make their repayments this year, we’re helping more businesses get back on track.

In challenging times, you can count on us to provide tailored support for your clients.

Visit HPF.com.au to find out how we can help today.

Hunter Premium Funding Limited ABN 80 085 628 913.

A company of Allianz Australia Insurance Limited ABN 15 000 122 850 AFS Licence No. 234708.

COMMUNITY / 2024 Industry Outlook

The rise of underwriting agencies

One of the more interesting trends this year has been how brokers have moved towards underwriting agencies, as they see that underwriting agencies have broader risk appetites, among other advantages.

“There has been a continued move by brokers towards underwriting agencies,” said Mr Cook.

“While insurer risk appetites have narrowed, underwriting agencies have broadened their risk appetite, and are critically providing the service response and turnaround levels that brokers need.”

Mr Cook believes the rise of the underwriting agencies will be a long-term challenge for insurers.

“Insurers will remain challenged by this move to underwriting agencies over the next few years as they come to grips with improving their technology, risk appetite, and service levels.”

Here’s what to keep an eye out for next year

Looking ahead towards 2024, Mr Cook identified some key areas of focus for the industry and the broking profession. One of these issues is around the continued pressure that’s being placed on insurer margins due to various factors and the impact this has on the broker.

“There is continued pressure on insurer margins, and that’s leading to further reductions in broker commissions, or ultimately, the withdrawal of a product from the broker channel,” said Mr Cook.

“I reference the broker channel, because the large domestic insurers here in Australia operate across the direct, banking, agribusiness, and broker channels.

“I expect there will be some pragmatic conversations across the insurers as to the best return for their deployment of capital, be it about the distribution channel and/or product.”

The rise of underwriting agencies also brings with it major possibilities of collaboration between the insurers and the agencies, which can only benefit both parties.

“Insurers are increasingly looking at providing capacity for underwriting agencies,” said Mr Cook.

“With their [insurers’] constraints across technology, people and compliance, the underwriting agency segment looks particularly attractive to insurers; particularly those underwriting agencies that can provide the insurer with technology, compliance, actuarial, and distribution support.”

“Large insurers must look at the success of underwriting agencies and look at how they can find the next opportunity to deploy their capital.”

Knowledge transfer to the next generation of brokers As one generation of brokers enters our profession and one generation transitions out, it’s important that the knowledge capital and skills of senior brokers are passed on, and the younger brokers can feel confident as future leaders of the profession.

“For the first time, we have four generations working alongside each other,” said Mr Cook.

24 / INSURANCE ADVISER DECEMBER 2023 / JANUARY 2024

“While the Baby Boomer generation are looking at succession plans, the younger generations – the Millennials and Generation Z – are still looking for their place in the industry and how they can contribute to the future of broking.

Unfortunately, I don’t think we give enough voice to these key generations coming through.”

Technology is just an enabler

As technology and technological disruption continues to have a transformational impact across industries including the broking profession, Mr Cook emphasises that technology is just a tool, and we shouldn’t lose sight of the fact that the crux of the profession is still about building strong relationships with people.

“With so many of us living our non-work lives through our devices, we are enabling more and more of our work lives to also be technology dominated,” said Mr Cook.

“We need to ensure that we don’t lose a very important part of our industry, which is all about relationships: with our business partners, our customers, and the community.

“Technology is an enabler, not a replacement.”

Monitoring emerging risks

With rising costs of living placing pressure on Australian families and businesses, Mr Cook warns of certain emerging risks – such as the threat of exposure to underinsurance and increasing supply chain costs – that brokers need to consider as they head into the new year and have conversations with their clients.

“We have a concerning dynamic occurring at the moment around the pressures of cost of living,” said Mr Cook.

“This places pressure on insurance budgets. Then, add in ever increasing building and supply chain costs, with sums insured not increasing in line with either inflation or building costs, and you have a real exposure to underinsurance at the time of a loss.

“This also extends to business interruption sums insured and indemnity periods.”

“Brokers should be using the various building replacement and business interruption calculators available to them,” added Mr Cook.

“They need to ensure that they [brokers] are making their clients aware of the correct sums insured the client needs to be looking at for the correct level of coverage.”

A promising year ahead

Despite the emerging risks, Mr Cook has a positive outlook when he casts his eye over to 2024 and believes that the industry and the broking profession should take pride in what they’ve achieved this year. According to him, the profession is well placed to capitalise on the opportunities that lie on the horizon.

“We have a lot to be proud of,” said Mr Cook.

“We have a comparatively quiet year ahead of us regulatory speaking, and we need to use this clear air to ensure that we continuously move ourselves forward, focusing on our professionalism, people, and communities.

“If we can achieve progress in all these areas, we are well placed for a bright future.”

COVER STORY / 2024 Industry Outlook

NICK COOK

NIBA Vice President Executive General Manager – Partner, Broker Services and Agencies, Steadfast

NIBA.COM.AU / 25

FEATURE / Hospitality

SERVICE WITH A

RELUCTANT SMILE The hospitality industry has done it tough over recent years. And it’s not about to get any easier, with inflation, workforce challenges and social media creating challenges.

By MARTIN WANLESS

I

f there’s one sector that has done it harder than most over the past four years, it’s hospitality.

Shutdowns and general disruption resulting from the pandemic caused significant issues at the time – and those issues continue to be felt. Combined with the inflationary pressures we’re all facing, supply chain shortages and a shallow talent pool, the industry is dealing with significant uncertainty.

A number of challenges stem from workforce-related repercussions following COVID-19, says Richard Robinson, Associate Professor at The University of Queensland Business School.

“There’s been a major disruption to the workforce, the pipeline of talent and the attractiveness of the industry to different labour markets that would traditionally have seen hospitality as appealing,” he says.

“During COVID-19, the middle tier of management, where a lot of the cultural capital of the industry and businesses sat, left the sector as they had valuable transferable skills.

“They’ve moved into sectors such as allied health and aged care, and that’s

left a really big gap – which a lot of us see evidence of when we have hospitality experiences now. Consequently, the industry has lost even more ground in terms of being attractive as a long-term career for many labour markets. And that’s going to take some time to build back.”

THE RISKS OF DIVERSIFICATION

As well as dealing with staffing challenges, hospitality venues are being forced to explore new avenues of revenue, and are changing business models – inadvertently introducing new risks, which, from an insurance perspective, prove challenging.

“We have found a lot of operators within the hospitality sector have diversified their revenue streams to boost profitability and respond to consumer behaviour,” says Ben Gair, Director at Bellrock.

“As such, the landscape of hospitality has shifted with an ever-increasing amount of live entertainment, pokies, technology and other functionalities.

This has led to reduced appetite in the

28 / INSURANCE ADVISER DECEMBER 2023 / JANUARY 2024

FEATURE / Hospitality

NIBA.COM.AU / 29

FEATURE / Hospitality

“THERE’S BEEN A MAJOR DISRUPTION TO THE WORKFORCE, THE PIPELINE OF TALENT AND THE ATTRACTIVENESS OF THE INDUSTRY TO DIFFERENT LABOUR MARKETS THAT WOULD TRADITIONALLY HAVE SEEN HOSPITALITY AS APPEALING.” – RICHARD ROBINSON, ASSOCIATE PROFESSOR, UNIVERSITY OF QUEENSLAND BUSINESS SCHOOL

insurance market, resulting in less capacity, fewer deductibles and, in many cases, exponentially increased premiums.”

In addition to changing offerings, some hospitality businesses have undergone changes in ownership structure, which creates new challenges from a liability perspective.

“Hospitality businesses often have a separation of ownership from operations, in that the people who own and maintain the asset aren’t the ones operating the business,” says Robinson.

“This trend is exacerbating, and from a risk perspective, there are complex contracts to unpick.”

FIRE-RELATED RISK MITIGATION

A significant risk for hospitality businesses is fire, and insurers are keenly looking for risk mitigation strategies to limit the threat of a blaze ending up a total loss.

“Fire risk is an ever-present factor,” says Gair.

“Hazard inceptions such as cooking areas are still causing fires, which has historically reduced appetite from

30 / INSURANCE ADVISER DECEMBER 2023 / JANUARY 2024

insurers. Maintenance programs and risk prevention controls such as fire suppression systems or sprinklers are looked on favourably by insurers.”

Sam Reid, Director – Head of G.O.A.T. Insurance, says almost all fire losses are a result of electrical or wiring overload, kitchens or fireplaces.

“It’s important that these risks are managed,” he says.

“There are simple procedures that can be undertaken to prevent these losses. Risk surveys, wiring scans, kitchen exhaust cleaning, deep fryer auto cut-off mechanisms, kitchen fire suppression and chimney cleaning are key areas where risk mitigation can be introduced, as well as monitored smoke detection if the premises are not occupied after hours.”

Reid says that, while a lot of the risk mitigation measures can seem laborious, they have a material and measurable impact on reducing risk and loss.

“We have numerous examples of when a wiring scan has identified a hot spot to prevent loss and a few examples of when this has not been carried out and resulted in a loss,” he says.

FEATURE / Hospitality

CASE STUDIES Insurance can come to the rescue for a diverse range of reasons, and Ben Gair of Blackrock shares three recent hospitality case studies.

The importance of disclosure A client who did not advise that the business was now holding functions (weddings, meetings, etc.) was subject to a claim after a slip and fall incident. Although we were able to have the claim indemnified, the insurer questioned and penalised the insured for non-disclosure.

Understanding true values During critiques of hospitality insurance programmes, we’re continually seeing declared values not being calculated in accordance with insurer wordings and the basis of settlement. The implications are significant when co-insurance is applied. Often insureds aren’t aware that their wordings have a co-insurance clause – where insureds have not suffered losses, they have not been made aware of this. It is important to review business interruption risk comprehensively – we use external consultants to ensure that the risk is soundly managed.

Getting hospitality businesses back on their feet Generally, the time to reinstate damaged property is taking longer.

Mainly due to material and labour shortages or delays in issuing permits or removing contaminated debris. Indemnity periods need to be reviewed to take the rebuild time and associated loss of revenue into account.

“We had a fire event as a result of faulty wiring in a roof space. The risk recommendation was to install a smoke detector in the roof space, and there was a fire, which set off the smoke alarm, which notified the publican, who was able to extinguish it. It was a relatively small claim, but without the smoke alarm, it would have been a total loss.”

The impact of a fire event can be devastating, reminds Stephen Alexander, Senior Account Manager at Cornerstone Risk Group.

“In the event of a fire, there may be catastrophic losses to property and potential loss of life, with evacuation procedures difficult to execute in high-rise or larger buildings. Insurers will be looking for venues that follow clearly documented policies and procedures relating to the responsible service of alcohol and workplace health and safety.

“A good level of fire protection combined with extensive signage and evacuation procedures are viewed favourably by insurers and mitigate the risk of large, costly claims.”

32 / INSURANCE ADVISER DECEMBER 2023 / JANUARY 2024

COSTS KEEP ON GOING UP!

Of course, in the event of a significant loss, underinsurance can raise its head. And, with purse strings tight and the economy changing quickly, it’s important that hospitality clients have recently reviewed their sums insured.

Alexander says, “Underinsurance remains a key risk, following a tough few years for the hospitality sector.

“Thanks to inflation, construction materials and services are much dearer than they were even a year ago, and the cost of replacing equipment has also increased considerably.”

And, with increasing frequencies of natural disasters, among other risks, business interruption cover is becoming ever more important.

“Business interruption insurance is another vital area of cover for a hospitality business,” says Alexander.

“Businesses might be covered for fire or storm damage, but do they also have business interruption cover? Expenses, like employee wages and rent, don’t stop just because the business is unable to trade as normal.”

FEATURE / Hospitality

21ST CENTURY HOSPITALITY RISKS

Another emerging risk in hospitality – which would have seemed somewhat far-fetched a couple of decades ago – is reputational damage via social media, which should be considered when evaluating business interruption insurance.

Gair says, “Social media is both a benefit and a curse when it comes to the hospitality sector, and we are experiencing a need for reputational risks to be considered as part of the insurance program.

“We have observed cases where trade may be considerably impacted, experiencing large losses due to the breakdown of air conditioning units, freezers/fridges/cool rooms, lifts and escalators, offering, for example, access into a venue.

“We urge clients not to underestimate the impact of reputational damage a venue may suffer as a result of a breakdown leading to poor experiences had by patrons.

Reputational damage, in the era of social

media, is a significant exposure and should be comprehensively addressed. Here we would recommend rigorous servicing and maintenance schedules proactively adjusted for seasonal adjustments.”

It’s a tough, challenging sector, and Robinson suggests it’s not about to get any easier for hospitality businesses.

“The hospitality market is changing, and consumer demand is dampening the consumer demand from traditional markets – middle Australia and young people.

“There’s some fairly strong economic evidence that boomers and retirees are cashed up and spending like never before, but for the majority of the population, their discretionary spending is really contracting.

“Hospitality businesses, as financially secure as they might be, depend on cash flow significantly due to the nature of their businesses, and I think within the next 12-18 months that’s going to compound any post-COVID recovery.”

“UNDERINSURANCE REMAINS A KEY RISK, FOLLOWING A TOUGH FEW YEARS FOR THE HOSPITALITY SECTOR.” – STEPHEN ALEXANDER, SENIOR ACCOUNT MANAGER, CORNERSTONE RISK GROUP

FAIR WORK CHANGES TO CAUSE PAUSE FOR THOUGHT The Fair Work Legislation Amendment (Closing Loopholes) Bill 2023 has proposed significant changes to the Fair Work Act. Of particular note for hospitality clients are the changes to casual employment and labour hire, with casual employees having the discretion to convert to permanent employment after six months (12 months for small businesses) if their role no longer meets the definition of a casual employee.

“I think there's a level of anxiety about the new industrial relations legislation,” says Richard Robinson.

“I applaud it. From my position, the evidence is that, relative to other industries, hospitality workers have traditionally been a lot less secure, and poorly represented – their conditions generally don’t measure up in a lot of respects.

“However, it has severe, quite significant implications on the way hospitality businesses structure their operations because they do become liable to having to convert people to full-time.

The seasonal nature of their business often isn't conducive to that, and it hurts the flexibility in their business model.”

NIBA.COM.AU / 33

FEATURE / Manufacturing Liability

34 / INSURANCE ADVISER DECEMBER 2023 / JANUARY 2024

FEATURE / Manufacturing Liability

PROTECTING

PRODUCTION Engineered stone benchtops are just one of a number of challenges for insurers covering manufacturing and product liability.

By MARTIN WANLESS

NIBA.COM.AU / 35

FEATURE / Manufacturing Liability

E

ngineered stone benchtops have been making news headlines recently, with research from Curtin University forecasting up to 10,000 Australians will develop lung cancer in their lifetime due to exposure to silica dust.

The risks that emerge from working with engineered stone often come to the fore years after exposure, and James Tuitavuki, Head of Liability at Ocean Underwriting, says, “It can be problematic because these injuries may not manifest immediately, potentially creating long-term health risks for people working in occupations like stone cutting and shop fitting.

“Workers may unknowingly be exposed to hazardous materials during the installation process. This could potentially lead to health problems that emerge years later, making it challenging to identify the source and seek appropriate compensation

or treatment. It highlights the importance of stringent work safety measures and awareness in these industries to prevent such latent injuries from occurring.”

The long-term repercussions of working with engineered stone are drawing comparisons with the consequences of working with asbestos – and it’s not just silica that’s causing the industry concern.

Perfluoroalkyl and polyfluoroalkyl substances (PFAS), a group of more than 4000 chemicals used in a range of applications – including stain and water protection, paper coating, cosmetics, sunscreen, and medical devices – are also under the spotlight.

“Anything containing perfluoroalkyl or polyfluoroalkyl or polymers are emerging as potential problems,” says Matthew McPhee, National Underwriting Manager, Berkley Insurance Australia.

I AM CONSTANTLY AMAZED BY THE NUMBER OF SME START-UPS THAT ARE COMPLETELY UNAWARE OF THEIR LIABILITY EXPOSURE AS IMPORTERS. – STEPHEN ALEXANDER, SENIOR ACCOUNT MANAGER, CORNERSTONE RISK GROUP

36 / INSURANCE ADVISER DECEMBER 2023 / JANUARY 2024

OTHER RISKS TO WATCH Morgan Long, CEO of Epsilon Underwriting, says toys and technology are also causing concern.

“Product liability in respect to toys and products designed for minors is problematic in that the tail from an insurance perspective is extended with the minor able to make a claim up to three years after their 18th birthday.

“Other product issues sit with new technology, where underwriters struggle with the risk simply because the product is not tried and tested.”

Stephen Alexander of Cornerstone Risk Group adds, “There has been a significant rise in fires related to lithium-ion batteries.

When lithium batteries fail to operate safely or are damaged, they present a fire and/or explosion hazard. Damage from improper use, storage, or charging may also cause lithium batteries to fail.

Manufacturers are increasingly turning to battery storage of solar power and battery-powered equipment, so it’s important they are aware of the risks associated with such devices.”

FEATURE / Manufacturing Liability

CASE STUDY

FERTILISER & CHEMICAL SUPPLIER The insured manufactures and supplies agricultural products, including herbicide used for control of broadleaf weeds.

Two farms alleged damage to crops following the use of a batch of the supplied product. Testing of the affected batch suggested a low level of glyphosate, a broad-spectrum herbicide, which can be harmful to the crops on which the product was used, and the matter was settled for several million dollars. The insured has improved their risk control measures to ensure additional testing of the product before it leaves the factory.

Case study provided by Berkley Insurance Australia

WHEN DISCUSSING RISK MITIGATION STRATEGIES WITH THEIR CLIENTS, BROKERS SHOULD STRESS THE IMPORTANCE OF MAINTAINING PRODUCT QUALITY, ESPECIALLY WHEN IT COMES TO INCOMING RAW MATERIALS FROM OVERSEAS. – JAMES TUITAVUKI, HEAD OF

LIABILITY, OCEAN UNDERWRITING

“In February, the European Chemicals Agency released a proposal recommending a sweeping ban on the production and use of PFAS in the European Union, including in imported products. With the occurrence nature of public/products liability, latent claims will cause issues in years to come.”

IMPORTING RISK

Many business models have changed over recent years, and subsequently, many businesses have unwittingly taken on risks that they didn’t consider or intend.

One such example arises through importing goods into Australia – a common practice for many e-commerce businesses or drop shippers. However, it’s one that can bring significant exposure from a manufacturing perspective.

“This is a huge risk, and I am constantly amazed by the number of SME start-ups that are completely unaware of their liability exposure as importers,” says Stephen Alexander, Senior Account Manager of Cornerstone Risk Group.

“Generally speaking, businesses that import goods into Australia assume liability

38 / INSURANCE ADVISER DECEMBER 2023 / JANUARY 2024

as though they were the manufacturer.

Insurers will typically want importers to identify the overseas manufacturer and provide proof the products comply with Australian standards.”

McPhee says, “The definition of manufacturer under the Australian Consumer Law means that an importer can be deemed to be a manufacturer, and therefore potentially liable for problems or defects with goods, even if they had no role in or control over their manufacture.

“The legal liability that attaches to importers can often be overlooked, and we regularly explain this to people who are unaware of the implications, especially if the importer is new to importing.”

Morgan Long, CEO of Epsilon Underwriting, says, “The insured needs to act like a manufacturer should and implement a quality control process whereby the insured assesses the quality of each product before distribution to the ultimate customer. It would be wise for an insured to maintain batch records and implement a product recall process.”

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

UREAlso inside: OF THE

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

Indemnity Insur Chief ance at the 2023 NIBAof Markets at Lloyd’s, and Guest Speak Convention er

1

IA0623p01 Cover.ind

d 1

WE ARE YOU R VOICE 6/6/23 3:04 PM

FEATURE / Manufacturing Liability

TAKING CONTROL

When working with clients that are involved in manufacturing, it’s important to understand exactly what processes are in place, and what rights they’re retaining.

“The insured, when supplying a product, should have a clearly documented quality control process,” says Long.

“In the event products are sourced locally, the insured should make sure that they are not waiving their rights of subrogation against the original manufacturer of the product.

It would be considered good risk management to maintain evidence of the product supplier’s public and product liability insurance.”

Tuitavuki says the importance of product quality should be a focal point of the conversation.

“When discussing risk mitigation strategies with their clients, brokers should stress the importance of maintaining product quality, especially when it comes to incoming raw materials from overseas,” he says.

Having a strong, open relationship with clients is essential to get the best possible outcome, and McPhee says it’s important that brokers also get expert advice if needed.

“Risk mitigation should include a broad examination of all the risks associated with the business,” he says.

“Even if a broker has significant experience in risk mitigation strategies, they should consider referring their client to a Quality Management consultant to develop a comprehensive program.”

ANYTHING CONTAINING PERFLUOROALKYL OR POLYFLUOROALKYL OR POLYMERS ARE EMERGING AS POTENTIAL PROBLEMS. – MATTHEW MCPHEE, NATIONAL UNDERWRITING MANAGER, BERKLEY INSURANCE AUSTRALIA

LABOUR HIRE CHALLENGES CONTINUE FOR MANUFACTURING Matthew McPhee, National Underwriting Manager, Berkley Insurance Australia, says labour hire continues to be challenging for manufacturers.

“With regard to claims trends, injuries to contractors, including labour-hire workers, continues to be a major concern for the industry. These claims tend to be larger than many other bodily injury claims, and because they are often late-notified, they are more difficult to manage and value.”

40 / INSURANCE ADVISER DECEMBER 2023 / JANUARY 2024

PROFESSIONALISM / NIBA Mentoring Program

Celebrating the success of the

2023 NIBA Mentoring Program 2023 marked the 15th edition of the NIBA Mentoring Program, and it featured an exciting development – for the first time, the program was conducted simultaneously in five different states with a record number of participants. Hear from three mentees about their experience of participating in the program this year.

How did you first hear about the NIBA Mentoring Program?

The Mentoring Program came highly recommended by my senior managers at the time of this year’s performance appraisal. The key offerings from the program encouraged me to join, as that could help me in achieving my 12-month professional development goal at my current workplace BAC Insurance Brokers.

“The NIBA Mentoring Program gave my selfconfidence a massive boost”

What did you want to achieve through the program?

I came into the program looking to learn new skills in handling complex claims including dispute resolution, along with learning communication/leadership skills, understanding different personalities and to adjust accordingly. Also, I wanted to learn techniques in ‘managing up’ to assist our executive management appropriately and efficiently.

How was your experience of being a mentee in this year’s program?

Every single week, I learned new things that helped build my confidence and knowledge to help me perform to my best ability in my role at BAC. During the course of the program, my mentor helped me realise that I was working towards my goals already and my professional knowledge was actually quite advanced, but it was my own confidence and self-doubt which was holding me back from excelling in my field.

What has the NIBA Mentoring Program given you?

Someone who has been in your shoes before will be able to help you in identifying your goals, provide you with guidance and materials on how to handle a complex situation, help to make you realise the things you are doing correctly or areas where you need improvement, provide constructive criticism, and also encourage you to take a step ahead to achieve success. The NIBA Mentoring Program gave my self-confidence a massive boost.

The webinars and workshops we attended helped put a lot of things in perspective for me which brought a positive change in my attitude, works ethic and performance at work. My mentor Gemma, who was my biggest supporter, is now a lifelong friend that I will always be grateful for. I also made new contacts from the program which will help me in future as well.

42 / INSURANCE ADVISER DECEMBER 2023 / JANUARY 2024

MENTEE Shruti Shah Senior Claims Consultant, Claims and Advisory BAC Insurance Brokers

PROFESSIONALISM / NIBA Mentoring Program

“Mentoring relationships often evolve into long-term connections” MENTEE Brittany May Account Executive Emjay Insurance Brokers Pty Ltd

How did you first hear about the NIBA Mentoring Program?

I first heard about the NIBA Mentoring Program through my office, as one of my directors has been a mentor himself for the last couple of decades. I participated in this program as I am passionate about bettering myself in all aspects of life personally and professionally. So naturally, this included growing as a broker.

How was your experience of being a mentee in this year’s program?

My experience as a mentee, from my one-on-one meetings with my mentor to our group meetings and webinars, have all played a part in my significant growth over the last three months.

The ‘Taking Charge of Your Emotions’ webinar was absolutely outstanding, and I have re-watched this webinar already since.

There are core experiences from this program that I will take on with me forever. Overall, it’s been a rewarding experience that has helped me grow personally and professionally. I can’t wait to see what the future holds for me as a broker.

Tell us a bit about your relationship with your mentor The relationship with my mentor, Asimina, has exceeded everything I went in this Program for. Asimina reminded me of how important it is to raise your standards in all aspects of life. We spoke a lot about our personal and work life and light bulbs went off in my head and where I could apply these insights to raise my standards. Asimina opened my eyes to the fact that if I put myself on a higher standard, everything else will come naturally.

Some areas the program focused on were the importance of goal setting, effective presentation skills and building relationships. How can these skills help a professional?

As brokers, effective presentation skills and building relationships form the core of our business. Effective presentation skills enable professionals to articulate ideas clearly and enhances our credibility and helps in earning trust of clients or stakeholders.

The knowledge and skills that I have learnt during the program will help me exceed now and in the future. I spoke about raising my standards and how important this is. I plan to continue to expand my knowledge from those around me, internally and externally. By raising my standards, it has subconsciously encouraged me to push myself a little more in my everyday work life.

What has the NIBA Mentoring Program given you?

The NIBA Mentoring Program offers guidance and support from experienced individuals. As a mentee, this gives you the opportunity to learn from someone who has already navigated similar paths and can provide insights to help you overcome challenges. As I have mentioned above, the program contributes massively to your personal and professional development. Having a mentor to guide and support you can boost your self-confidence, and they can provide fresh perspectives and alternative viewpoints. Mentoring relationships often evolve into long-term connections. I know myself and my mentor see this connection as a long term one. The continuing support and advice don’t have to end just because the program has.

Overall, being a mentee can be an invaluable experience that supports your growth, learning, and success in various aspects of your life and career.

Are you keen on joining the 2024 NIBA Mentoring Program? Please send your expression of interest to mentoring@niba.com.au, specifying whether you’d like to participate as a Mentor or Mentee.

NIBA.COM.AU / 43

PROFESSIONALISM / NIBA Mentoring Program

“I wish I had participated earlier on in my insurance career”

MENTEE Sanjay Adhar Senior Account Manager Allianz Australia Insurance Ltd How did you first hear about the NIBA Mentoring Program?

The first I heard about this program was at a NIBA Convention a few years back. I recall NIBA highlighting how rewarding this program can be, the professional career benefits associated with it, and noting the previous participants that are now leaders in our industry.

Knowing that this program pairs you with experienced insurance professionals outside of your workplace and seeing our industry constantly evolve, I felt this would be a great opportunity to share my career goals, see if they were still relevant and to seek perspective and guidance on how best to reach them.

How was your experience of being a mentee in this year’s program?

As a mentee, I have nothing but great things to say about my experience throughout this program. If anything, I wish I had participated earlier on in my insurance career. Throughout the 12week program, my mentor and I had weekly catch ups where we would review my progress, share experiences, discuss any current obstacles and determine if any of my original goals required amendments. I was fortunate to be paired with Anthony Scott, who brought a world of knowledge, experience and energy to each session and ensured I stayed on track throughout the 12-week program.

What did you want to achieve through the program?

I had a good idea of what my short, medium, and long-term goals were. I wanted to use this program to expand my skill set, improve my confidence, gain industry awareness, ensure my goals are relevant, and to strive to be the best professional version of myself.

Working in Distribution at Allianz for the last four years, I’ve always had a goal in mind, which is to be one of the best Broker Relationship Managers in market. Knowing NIBA would pair me with an experienced insurance broker, who would have experienced multiple Relationship Managers in the past, I knew this would be a great opportunity to rate myself honestly, identify areas of improvement, share ideas, and work on an achievable plan to bridge the gap between where I am and where I wanted to be.

What has the NIBA Mentoring Program given you?

Having the opportunity to connect with an experienced professional and gain perspective, insights and advice into your own career is an opportunity which seems far too valuable to pass on.

In today’s day and age, we can easily say we are time poor and lose sight of our career goals, and forego the necessary time and effort required to purse these goals. This program in some ways, forces you to make time and effort to understand your present situation, ensure your goals are achievable and determine whether you have the right framework in place to successfully pursue these goals. This program has allowed me to identity my strengths and weaknesses and how to become a professional within our industry.

The best thing about this is, despite the program concluding, I know I have built a solid trusting relationship with my mentor and can always lean on him to bounce ideas and situations in the future.

Are you keen on joining the 2024 NIBA Mentoring Program? Please send your expression of interest to mentoring@niba.com.au, specifying whether you’d like to participate as a Mentor or Mentee.

44 / INSURANCE ADVISER DECEMBER 2023 / JANUARY 2024

PROFESSIONALISM / NIBA Mentoring Program

THANK YOU TO OUR INCREDIBLE MENTORS NIBA would like to extend its heartfelt gratitude to all the Mentors who have contributed to the success of the NIBA Mentoring Program over the years. Your dedication and commitment have played a significant role in making this initiative a continued success.

ADAM RHODES, WTW

KARA MCINNES, CHU UNDERWRITING AGENCIES

ADRIANO BELLOCCHI, MARSH

KEVIN NEAVE, DOMUS PRIVATE CLIENTS

AMMON MACKIE, ALLIANZ

KIERAN MCALLISTER, AIS INSURANCE BROKERS

AMY MORRISON, TAYLOR MADE INSURANCE SERVICES ANDREW BASSINGTHWAIGHTE, XCELERATE ANDREW ROBSON, STRATA UNIT UNDEWRWRITING AGENCY

KYLEE HATCHARD, MARSH LAUREN REEVES, GUARDIAN INSURANCE BROKERS

ANDREW SHEPHERD, EBM RENTCOVER

LINDA BENNETT, CAPITAL INNOVATION INSURANCE GROUP

ANTHONY SCOTT, WATKINS TAYLOR STONE

LISA CARTER, CLEAR INSURANCE

ASIMINA KOUTSOURAIS, MERCER MARSH BENEFITS

MANDY COOPER, CPR INSURANCE SERVICES

BELINDA BASHA, RESILIUM INSURANCE BROKING

MARC CROSSMAN, UNDERWRITING AGENCIES OF AUSTRALIA

CAMERON SHEILD, LOCKTON CARLO ESTORQUE, FINDEX CHARLES GALAYINI, GSA INSURANCE BROKERS CHARLES HARRINGTON-JOHNSON, HOWDEN

MARK WHITE, AUSTBROKERS MARK WILSON, VERO MATT ENNIS, HOLLARD INSURANCE

CORINNE RICHARDSON, VERO

MATT HOPWOOD, VERO

DAN WOOLNOUGH, ALLIANZ AUSTRALIA

MATTHEW BATES, BELL PARTNERS ASSET PROTECTION

DANIELA ZACCONE, MARSH

MATTHEW DE GRUCHY, ALLIANZ

DARREN EVANS, ATTVEST FINANCE

NEIL WALLACE, REGIONAL INSURANCE BROKERS

DAVID HENDRY, MCKENZIE ROSS & CO DEREK FORD, FORDSURE DOUG NAPIER, PROTECTIT INSURANCE SERVICES EMMA LATCHAM, AUSTBROKERS COUNTRYWIDE

NEIL WATSON, ADCOR RISK CONSULTANTS NICOLE LANE, INSURANCE COMMISSION OF WESTERN AUSTRALIA OLIVIA HANCOCK, MARSH

FRASER GOW, CHU UNDERWRITING AGENCIES

PAUL BURTON, P.I. DIRECT INSURANCE BROKERS

GABRIELE MCDONALD, PROTECSURE

PAUL MCLEAN, AVISO BROKING

GEMMA DEHN, HALL & WILCOX

PETER DIVJAKINJA, CGU INSURANCE

GEORGE REID, AON RISK SERVICES

REECE COHALAN, PSC INSURANCE BROKERS

GINA ZAFIROPOULOS, MAXTON INSURANCE BROKERS GORDON BELL, CHU UNDERWRITING AGENCIES HELEN AURICHT, ALLIANZ INGRID IBBOTSON, BLUE ZEBRA INSURANCE

RICHARD DAVIES, MCLARDY MCSHANE PARTNERS ROSS CHAMBERS, SOLUTION UNDERWRITING AGENCY SAAD KHAN, HMIA

JASON HAWKSWORTH, ALLIANZ

SHANE SCHNEIDER, CHU UNDERWRITING AGENCIES

JASON JONES, MACEY INSURANCE BROKERS

SIMON ASCROFT, ARGYLE INSURANCE

JEFF MURDOCH, EMJAY INSURANCE BROKERS

STEPHEN BRADY, ARDENT INSURE

JEFFREY MCNALLY, INSURED CREATIVITY

STEPHEN CRAMMOND, IAA MERIMBULA

JENNY BAX, UNDERWRITING AGENCIES COUNCIL JOEL MORRELL, NETWORK INSURANCE GROUP JOHN MILLS, AUSURE HEAD OFFICE

STEVE PURSER, COVERFORCE SUMIT SOPORI, IMPERIUM INSURANCE & FINANCIAL SOLUTIONS

JONATHAN FITZGERALD, FITZPATRICK & CO INSURANCE BROKERS

TAMZIN KING, ALLIANZ

JOSEPH CUZZOCREA, MAXTON INSURANCE BROKERS

TIANA IUVALE, CGU

JUSTIN ARMAGNACQ, MARSH

TIFFANY AUSTIN SANCHEZ, SUREWISE

NIBA.COM.AU / 45

NIBA / Events

2023 NIBA SA Christmas Cocktails Event The 2023 NIBA SA Christmas Cocktails Event at Electra House in Adelaide was an unforgettable evening. Despite the unexpected heat, attendees relished networking, accompanied by delightful beverages and refreshments, all set to the backdrop of a lively music mix from a talented DJ. Electra House, renowned for its historic charm and elegant modern styling, provided the perfect setting for this enjoyable networking experience.

A special thanks to our event sponsors: Adelaide Insurance Builders, Aim Insurance Services, ASTA group, BOQ Finance, CGU, HPG Insurance & Maintenance Works, NTI, Steadfast and YDR.

46 / INSURANCE ADVISER DECEMBER 2023 / JANUARY 2024

NIBA / Events

2023 NIBA Qld Christmas Bowls Event Over 200 people attended the 2023 NIBA Qld Christmas Bowls Event held at the historic New Farm Bowls Club.

The attendees had a fantastic networking opportunity, engaging in spirited games of lawn bowls while enjoying the festive atmosphere under the Queensland sun.

The event was not only a celebration of the season but also a showcase of the vibrant community within the insurance industry. Attendees revelled in the camaraderie, forming new connections and strengthening existing ones, all while partaking in the friendly competition of lawn bowls.

A special thanks to our event sponsors: Attvest, Axa XL, Berkley, CHU, Chubb, CGU, GT Insurance, Hunter Premium Funding, iQumulate, QBE, Vero and Zurich.

NIBA.COM.AU / 47

COMMUNITY HUB

COMMUNITY HUB DECEMBER 2023 / JANUARY 2024

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

INDEX AB Phillips ......................................................................................................48 AIBI....................................................................................................................49 Australasia Underwriting.........................................................................49 QPIB..................................................................................................................49 Moran Insurance Brokers.........................................................................50

MGA Insurance Group..............................................................................50 Affinity Insurance Brokers........................................................................ 51 Newline Group.............................................................................................. 51 Wellington Underwriting......................................................................... 52 Pollard............................................................................................................... 52

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

48 / INSURANCE ADVISER DECEMBER 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

My QPIB designation showcases my commitment to professional excellence and continuous learning, adding to my credibility as a trusted advisor.

TAY L O R B U R S T O W Young Broker of the Year 2023

Q P I B – A S TAT E M E N T O F P R O F E S S I O N A L I S M

Apply online at niba.com.au or email NIBA Memberships Engagement Manager, Scott Raymond at sraymond@niba.com.au

J-8651 - NIBA - QPIB ad template_Taylor.indd 1

23/11/2023 11:32 am

NIBA.COM.AU / 49

COMMUNITY HUB

50 / INSURANCE ADVISER DECEMBER 2023

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

At Newline Australia, we underwrite:

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

Key Liability Occupations:

Key PI Occupations:

Key FI Occupations:

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

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

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

Will Clarke

Stephen Mullaly

Linda Sepala

Head of Liability

Head of Professional Indemnity

Head of Financial Lines

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

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

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

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

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

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

COMMUNITY HUB 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

QPIB designation demonstrates a dedication to staying updated on technical skills and innovation which is extremely important in the changing insurance climate.

BARRY SONTER Broker of the Year 2023

Q P I B – A S TAT E M E N T O F P R O F E S S I O N A L I S M

Apply online at niba.com.au or email 52 / INSURANCE ADVISER DECEMBER 2023 NIBA Memberships Engagement Manager, Scott Raymond at sraymond@niba.com.au

INSURANCE BROKERS

COMMUNITY HUB

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.

IA0722p58-60 Events Pictorial.indd 59

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

Ratings are statements of opinion, not statements of fact or recommendations to buy, hold, or sell any securities. S&P Global (Australia) Pty. Ltd. holds Australian financial services licence number 337565 under the / 53 NIBA.COM.AU 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.

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 22 November 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/DEVELOPING*

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.

54 / INSURANCE ADVISER DECEMBER 2023 / JANUARY 2024

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

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 23 November 2023.

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

NEW ZEALAND

RATING

NON-LIFE INSURERS

RATING

NON-LIFE INSURERS AAI Ltd.

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

Hollard Holdings Australia Pty Ltd.

BBB+/STABLE

The Hollard Insurance Co. Pty Ltd.

A/STABLE

Insurance Australia Ltd.

AA-/STABLE

AA Insurance Ltd.

AA-/STABLE

Liberty Mutual Insurance Company Limited

A/NEGATIVE

AIG Insurance New Zealand Ltd.

A/STABLE

Medical Insurance Australia Pty Ltd.

A-/STABLE

Aioi Nissay Dowa Insurance Co., Ltd

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

Allianz Australia Insurance Limited

AA-/STABLE

Berkshire Hathaway Specialty Insurance Company

AA+/STABLE

Chubb Insurance New Zealand Ltd.

AA-/STABLE

Society of Lloyd’s

A+/STABLE

Factory Mutual Insurance Company

A+/POSITIVE

Sompo Japan Insurance Inc.

A+/STABLE

Southern Cross Benefits Limited

A/STABLE

Tokio Marine & Nichido Fire Insurance Co., Ltd.

A+/STABLE

XL Insurance Company SE

AA-/STABLE AA-/STABLE

Great Lakes Insurance SE

AA-/POSITIVE

Hannover Life Re of Australasia Ltd.

AA-/STABLE

IAG New Zealand Ltd.

AA-/STABLE

Zurich Australian Insurance Ltd.

Medical Insurance Society Ltd.

A/STABLE

LENDERS MORTGAGE INSURERS

Mitsui Sumitomo Insurance Co. Ltd (New Zealand Branch)

A+/STABLE

Arch Lenders Mortgage Indemnity Ltd.

A/STABLE

A/STABLE

Helia Insurance Pty Ltd.

A/STABLE

QBE Lenders' Mortgage Insurance Ltd.

A/STABLE

NorthStandard Ltd. QBE Insurance (Australia) Ltd.

A+/STABLE

Society of Lloyd’s

A+/STABLE

Southern Cross Benefits Ltd.

A/STABLE

Southern Cross Pet Insurance Ltd.

A/STABLE

Teleco Insurance (NZ) Ltd.

BBB+/STABLE

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

LIFE INSURERS AIA Australia Ltd.

A+/STABLE

Challenger Life Company Ltd.

A/STABLE

MetLife Insurance Ltd.

A+/STABLE

REINSURERS Aspen Insurance UK Ltd.

A-/STABLE

Vero Insurance New Zealand Ltd.

AA-/STABLE

Berkley Insurance Company

A+/STABLE

Vero Liability Insurance Ltd.

AA-/STABLE

General Reinsurance Australia Ltd.

AA+/STABLE

General Reinsurance Life Australia Ltd.

AA+/STABLE

Hannover Life Re of Australasia Ltd.

AA-/STABLE

HEALTH INSURERS

Hannover Rück SE

AA-/STABLE

NIB NZ Ltd.

HDI Global SE

A+/STABLE

HDI Global Specialty SE

A+/STABLE

Zurich Australian Insurance Ltd.

Southern Cross Medical Care Society

AA-/STABLE

A-/STABLE A+/STABLE

LENDERS MORTGAGE INSURERS

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

LIFE INSURERS

RGA Reinsurance Co. of Australia Ltd.

AA-/STABLE

Asteron Life Ltd.

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

Helia Insurance Pty Ltd. (New Zealand Branch) QBE Lenders’ Mortgage Insurance Ltd.

A/STABLE A/STABLE

AA-/STABLE

Medical Life Assurance Society Ltd.

A/STABLE

NIB NZ Insurance Ltd.

A-/STABLE

REINSURERS HDI Global Specialty SE

A+/STABLE

* See page 53 for S&P Global disclaimers and additional information

NIBA.COM.AU / 55