The Grill - George Midas

George Midas, founder of Midas Insurance Brokers, spoke with DCN about how the insurance game has changed and the need to always read the fine print

You’ve been in the insurance game a long time. How did this career start for you?

My career began in 1972 when I joined National Mutual as a representative selling life and superannuation policies. In 1979, I started a general insurance agency where I acted for insurer companies selling business and personal insurance.

What was your first job and how did you get it?

I got my first job in the 1960s in the neon sign industry. One of my relatives encouraged me to join the firm he had a connection with. This lasted some five years before I joined the insurance industry, where I have remained.

What do you appreciate most about working in the maritime and logistics sector?

It’s an industry that I have been a part of for at least 38 years. When we started serving the maritime and logistics sector of our economy, we encountered a great diversity of players. There were mostly small and medium-sized local Australian companies, and a handful of large entities, including international companies.

How did you meet the insurance needs of such a diverse sector?

We identified opportunities to create insurance products to cater for their needs, such as professional indemnity insurance, marine cargo insurance for their clients, business insurance and the like. The freight forwarders and customs brokers have a particularly unique role to play in the supply and distribution of goods globally, because of the plethora of players involved in the journey. Things can go wrong in some cases in the supply chain cycle. That’s where we find our involvement becomes challenging, as we attempt to mitigate the loss, delays, and demands imposed on our clients. In the mix we have the freight forwarders, the shipping company, the governmental authorities, the insurers, and lawyers we must deal with. Having all these professions in the same circle is what we are proactive about. We engage to assist the client and endeavour to find a resolution that does not disadvantage the client on the issues and causes that arise.

What have been some of the major changes you’ve seen in the insurance industry?

The biggest catalyst was the Insurance (Agents and Brokers) Act 1984 in which the federal government established definitions for agents’ and brokers’ responsibilities and duties. That led to the flourishing of broker businesses operating to serve the best interests of those insured. This also compelled me to pursue a brokerage business, given my commitment to having a modus operandi that supports a broker business model.

What are some of the most interesting insurance cases you’ve been involved with in the maritime sector?

There are some interesting cases; one that springs to mind was the rejection of Australian meat exports to Sweden. The authorities rejected the supply for some obscure reasons. The insurers had to find alternative markets that would accept the perishable goods at a heavily discounted price. This had to be achieved within just a couple of weeks, but the claim was settled soon after, with a six-figure payout. Another case took place in the USA where an error was made by the freight forwarder, which triggered a claim under the policy wording, thus not making good the loss, which cost the insurer at least a million dollars. A substantial sum of this was paid to the lawyers.

How would things be different if you were starting your career journey today?

I would have needed a tertiary education to be starting now. The industry has evolved for the better over the past 10 years. You need to have an analytical mind and knowledge to understand contracts and their implications. As an insurance broker, the advice is crucial and of paramount importance to the client.

What is your favourite place in Australia?

We live in such a vast country with so many contrasts in colour and landscape – where do I start? Melbourne is my favourite city. I also like the Kimberley region in the west and the Cape York Peninsula in Far North Queensland.

Which Australians do you admire the most, either past or present?

In literature, I admire Thomas Keneally, David Malouf, Karl Kruszelnicki, Patrick White, and Henry Lawson, to mention a few. In the art world, I admire Sidney Nolan, Brett Whiteley, Albert Namatjira, and John Olsen. In politics, I admire Arthur Caldwell, Robert Menzies, Paul Keating, and John Howard.