Veracity

Volume 7, 2012

// “Change is the law of life.”

// Matching values

Annus Horribilis!Businesses under threat if disasters strike again

Having experienced the recent extraordinary period of disasters, the insurance industry in Australia now knows what an “Annus Horribilis” is!

Yet despite this spate of catastrophes, many businesses remain underinsured and with the economic uncertainties they are facing, appear reluctant to maintain the level of cover they need. This is one of the conclusions of a recently released Suncorp “Insurance Insights” White Paper - “After the storm. Can insurers save businesses after disasters?”

“Businesses’ reluctance in this economic climate to be adequately covered is aggravated by the fact that post the major catastrophes, many insurers have been forced to increase premiums,” said the author of the white paper, Matt Pearson, EGM CI Claims.

“While businesses accept the increase in such costs as purchasing new equipment, they often baulk at ensuring they have the insurance to cover those increases,” said Matt.

The white paper notes that businesses’ understanding of what cover they need is limited.

“There is a crucial role for the insurance industry to educate businesses about the necessity of proper insurance cover,” said Matt. “The industry needs to work collectively to demonstrate the value of insurance to businesses.”

The white paper notes that, whilst the spate of concurrent and consecutive natural disasters put an incredible strain on the insurance industry, it has also produced some positive effects.

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Contents //

PG3Annus Horribilis!

PG6“Change is the law of life.”

PG8Matching values

PG10of working age

PG12Vero expo – Coming soon to a centre near you

PG13Bytesevents calendar

In 1992, an emotional Queen Elizabeth described the year as an “Annus Horribilis”. Three of her children’s marriages had failed and worse still, her beloved Windsor Castle had been gutted by fire.

“the catastrophes have taught insurers about a new level of response and also created new dimensions to review their portfolio of products…” – Matt Pearson

Annus Horribilis!Businesses under threat if disasters strike again

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With the numerous weather-related disasters in recent times, insurers have become better at doing their jobs. That is, moving rapidly and efficiently – both on the ground at the disaster and in the claims centres – to help people and their businesses back on their feet as quickly as is possible.

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“the catastrophes have taught insurers about a new level of response and also created new dimensions to review their portfolio of products...” – Matt Pearson

It has demonstrated that the insurance industry plays a vital role rebuilding communities and helping people at a time of need.

“However, while the insurance industry is proactively making sure it can help businesses and communities when disaster strikes, governments and local bodies seem to be dragging their collective feet.

“The need for governments and local bodies to take pragmatic and practical mitigation action to minimise the effects of disasters is

now paramount. The litany of disasters in recent times should be a trigger for authorities to proactively take measures to protect risky areas.

“Otherwise, insurers will either become more reluctant to insure various areas or be forced to increase premiums to cover the repeated costs they have to pay out on risk areas being hit time and time again by catastrophic events.”

Claims are the moment of truth for insurers and for the insured. People reluctantly pay their insurance premiums – it is a grudge purchase – until disaster strikes and they need help to get their business back together again.

That’s when the insurers are there to help. //

“The catastrophes have taught insurers about a new level of response and also created new dimensions to review their portfolio of products as they piece together the costs, consider the heightened risks and work out how to deliver to their customers,” said Matt.

Another irony is that perceptions amongst SMEs of our response have improved because we do it very well. A by-product of the recent catastrophic events is an increase in community awareness of the value of insurance being greater than ever before.

Strong relationships between insurers and brokers are vital in the trying times after disaster strikes. In the 2012 Roma floods, Suncorp actually co-located with the broker who had the highest customer exposure to the event.

This enabled the broker, who became part of the team, to provide valuable feedback and prioritisation of customers based on their needs or special circumstance.

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“Change is the law of life.”

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Late in May this year, Vero announced a long list of changes to products, processes and procedures in its business packages product range. Put it down to too much information, but we had so much research into both your clients’ needs and the changes your businesses wanted, we could clearly see the changes and improvements you were looking for.

Business packages product changes inspired by research.

Vero’s SME Index had given us a better understanding of the attitudes of SMEs towards insurance and how they are thinking. It produced insights into the ways they buy insurance, particularly the channels they use. It also told us how frequently they change their insurance arrangements and why.

Our YourView survey continues to canvass brokers’ needs and aids our understanding of what you are thinking and feeling. Supplemented by the regular contact you have with Vero’s BDMs, this helps paint a three dimensional picture of your businesses.

That’s why we put forward the many changes and improvements we had made to the business packages product suite with real confidence. After all, when you work with professionals, you gain an advantage.

We knew that Management Liability would be great addition to the business packages and help you to better market that product to your clients by offering them the added protection that this cover brings. We understood how the many other changes could help to streamline the way you do business with Vero.

We have used our library of research data and put it into action. Hopefully, you’re already seeing the benefits these changes will bring. //

“Change is the law of life. And those who look only to the past or present are certain to miss the future.” – John F. Kennedy

We understood how the many other changes could help to streamline the way you do business with Vero.

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Matching values“When I see those values, I know GIo Workers Compensation can work successfully with this business.” – susie Walford

A Canberra local, Susie Walford knows better than most the challenge of retaining skilled staff where high-paying public service jobs abound. Her solution has been to build a business based on partnering with brokers and employers who share the values of respect and rehabilitation.

“Burnout is a substantial risk for people managing workers compensation claims,” says Susie, Senior Leader Underwritten Claims ACT/TAS.

“Negotiating with stressed employers and injured workers is demanding and emotionally draining, so I put in lot of effort into making sure we’re working with people who share GIO’s values and approach to claims management.”

For Susie, that means employers who value their workers compensation insurer as an extension of their business.

“When we conduct site visits, it’s an excellent opportunity to assess the employer’s approach to their staff,” says Susie.

“It’s immediately apparent if they have a personal interest in the worker’s welfare and want to get them back on the job quickly.

“When I see those values, I know GIO Workers Compensation can work successfully with this business.”

Since Susie arrived in 2008, GIO’s presence in the ACT market has grown dramatically as has their reputation as the leading claims manager. Susie also provides advice on workers compensation issues to the ACT Government through her position on several committees and through the Chief Minister’s Office.

“Successful claims management means understanding that the most cost-effective approach is to treat people with respect and support them through their rehabilitation,” says Susie.

“When that’s second nature to everyone, the outcome will always be positive.” //

GIO Workers Compensation’s ACT/TAS Manager knows that having an aligned culture is critical when partnering with clients and brokers.

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Of working ageAge Discrimination Commissioner The Hon Susan Ryan AO discusses the ageing workforce, the role of employers and the insurance industry.

“We need a breakthrough with employers. some are doing this really well and their profits are growing as a result...” – susan Ryan

When Susan Ryan speaks, the passion is evident. As Australia’s first Age Discrimination Commissioner, she is determined to change attitudes towards employing and insuring older workers.

“There’s an old fashioned notion of what old is. People are living into their 80s and 90s now so why are we saying that in their 50s they should leave the workforce,” says Ms Ryan.

Since 2004, the Age Discrimination Act has prohibited discrimination on the basis of age in particular areas – employment being one of them. But according to Susan Ryan, a fear still exists when it comes to employing older workers.

“We need a breakthrough with employers. Some are doing this really well and their profits are growing as a result,” she says.

“Employers need to focus on the fact that, longer term, they will need to be employing a lot of people who are in their 60s.

“There shouldn’t be any more onerous OHS responsibilities for employers as they accommodate older workers, but it’s important to conduct regular work capacity testing.”

Regarding the role of insurance in providing cover for older workers, Susan Ryan is looking to the industry to meet the challenge.

“It’s not impossible that the government could introduce new regulation requiring policies to be offered to a certain age, but that approach works against the environment we’ve had with business for a couple of decades now,” says Ms Ryan.

“I hope that the industry sees the opportunities and gets on with it without waiting for the big stick of regulation.” //

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Vero’s Expo season is re-launching in Perth on September 12 before moving on to Adelaide on September 19.

A packed program with celebrity keynote speakers and fascinating content in streams designed for both Principals and Account Executive make Vero Expo unmissable!

This year’s Expo will lead off with a keynote address from intrepid explorers James Castrission and Justin Jones who walked all the way to the South Pole and rowed together right across the Tasman Sea – each depending totally on the strength, courage and persistence of the other.

They will demonstrate how maintaining your focus on the long term goal can lead you to its ultimate achievement. The lessons they have learnt have endless applications to both your business environment and your lives in general.

They will be followed by a fascinating trilogy of thought leadership where three expert speakers discuss key aspects of the tomorrow we will all face.

Vero Expo – Coming soon to a centre near you

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Weatherzone expert Alex Zadnik will examine the factors that caused an unprecedented spate of disasters and help predict how the weather will impact our lives in the next twelve months. Then, Suncorp CI CFO Michael Miller examines the impacts of our weather patterns plus the looming financial variables – including the Eurozone risks, the rising cost of reinsurance and impending regulatory changes that will have dramatic impact on our business future.

Finally, our very own Andrew Mair, EGM Distribution, puts it all together to paint a picture of what the insurance industry can expect over coming months and beyond.

Vero Expo goes on to examine how new media can build relationships and a competitive advantage, it will dissect the detail behind business relationships, analyse professional indemnity and examine world economic trends through the eyes of an expert, globetrotting economist.

Expo also presents a great opportunity for you to network with your industry peers and key Vero people.

Ask anyone who’s been to Vero Expo before and they’ll tell you what a great experience it is. And this year’s event could just be our best ever.

Vero Expo will be visiting the eastern seaboard in 2013. //

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▼ The nominations for this year’s RMAdvancer risk management awards, sponsored by Vero closed on 31 August. For further information go to http://www.vero.com.au/vero/about-rmadvancer

▼ Suncorp’s general insurance pricing engine has now been applied to all SME products. GIPE leverages off the Suncorp Group’s massive dataset to adopt a ‘perils based’ approach to pricing – pin-pointing individual risks according to key factors.

▼ Tax Probe Plus is an upgraded stand-alone product from Vero specially designed for Self-Managed Superannuation Funds. It can cover professional fees incurred in an audit, as well as additional professional fees required to appeal to an administrative tribunal.

▼ Great Wall of China walk raises over $50,000! Chris McHugh, Suncorp EGM Statutory Portfolio and Underwriting Management, walked the wall to raise money for Youngcare – the national charity working to get young people with disabilities out of aged care.

▼ Stop Press: Suncorp was just named Claims Service Provider of the Year at the ANZIIF Insurance Industry Awards in Sydney.

Did you know?Suncorp Group CEO Patrick Snowball was judged ‘Insurance Leader of the Year’ in the 2012 Australian Insurance Industry Awards.

Events calendar

ConferencesVero expo Perth – 12 september

Vero expo Adelaide – 19 september

nIBA Conference – 6-9 october

IAA Conference – 15-17 october

Public holidayLabour Day nsW – 1 october

Bytes

In NSW, GIO General Limited operates the NSW WorkCover Scheme. In WA, ACT, TAS and NT, Workers Compensation insurance is issued by GIO General Limited ABN: 22 002 861 583.

Vero Insurance Limited ABN 48 005 297 807

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