How Beneficial is it to Have Motor Insurance

October 16, 2022

by ED Admin with No Comment blog

Are you an Australian who drives a motor vehicle?

With 20.1 million registered motor vehicles in Australia as of the beginning of 2021 it is highly likely that your answer is “yes”. If you own a car then you likely already have at least a minimal understanding of the necessity of car insurance.

But do you really know how beneficial motor insurance is and how it can protect your wallet if you need to repair or replace your car due to damage or theft? We’ve compiled the following guide to help you understand these benefits.

What is Motor Insurance

Firstly, let’s start with the most simple facts: and take a broad look at what it is.

Motor insurance covers your vehicle against cases of accidental damage or theft. It also protects you from costs associated with repairing or replacing another person’s vehicle if you are involved in an accident where you are at fault.

Accidental Damage

Accidents can happen at any time and are usually completely unexpected, yet can leave us heartbroken and in debt. To prevent a little of this pain you can ensure your vehicle is insured and your wallet is protected.

With comprehensive insurance you can ensure any damages are repaired by repairers of your choosing or one from our books, either way you will receive a repair guarantee on all materials and workmanship during the authorised repairs.

With this cover you can also opt to include an excess free windscreen claim every year. So, you don’t have to deal with looking through old chips or scratches.

If your car is written off within three years and has less than 60,000 kilometres during an accident or natural disaster then your insurance company will help cover the replacement of the same make and model of your vehicle.

With this cover you only have to worry about paying your agreed upon excess amount, which in most situations is much less than the cost of all the required repairs.

If You’re at Fault

We know you’re probably a great driver so you may think you don’t have to worry about protecting yourself against the unlikely situation of you causing an accident. But, all it takes is one tiny distraction and you could end up in debt, trying to pay for someone else’s car as well as your own.

To avoid this situation, no matter how unlikely you may think it is, it’s important to protect yourself with third party insurance. Having third party property damage (TPPD) insurance will ensure that in the case that you are at fault for the damage or write off someone else’s car, the costs will be covered.

This however does not cover any damages incurred to your car during the accident. So, you would only rely on this cover alone if you have a low-value vehicle, and are mainly concerned about any costs incurred for the damage your car could do to someone else’s more valuable vehicle or other property.

To ensure you are completely protected and not left with a mountain of debt after an accident, it is beneficial to have comprehensive cover. A comprehensive insurance policy will also help you pay for any damage that your car sustains during an accident even if you are at fault.

Theft

Now onto a risk that has nothing to do with you and your driving abilities.

Hopefully, you will never have to experience this heartbreak of your car being stolen. However, with over 15,805 thefts in 2021 it’s an unfortunate risk that you need to protect yourself against.

With comprehensive motor insurance your insurance company will pay you an agreed price or the equivalent of your car’s market value so you can afford to replace your stolen vehicle.

If you opt for this cover you can also be granted a rental car for up to 14 days so that you are not left stranded while you are searching for a new car.

In the case that your keys are stolen but not the car or the car is recovered in working condition, your insurance policy covers the cost of rekeying and re-coding your car to ensure it is secure.

Final Notes

One tip we want to mention is that you can only reap the benefits of auto insurance if you follow the rules. While each policy is different and can be tailored to your needs, there are a few things that you need to remember.

There are a few reasons that you may not be covered after being involved in an accident, including if you or the person driving your car is unlicensed, under the influence of drugs or alcohol, and if your car is being used in a sport or time trial.

If you and everyone you let drive your car is responsible then you will be covered and have peace of mind that you will not be left out of pocket if your car is damaged or stolen.

To learn more about our motor insurance policies and how we can help you, you can visit our website or contact us to schedule a quote.

Credits:

Motor Vehicle Census, Australia – https://www.abs.gov.au/statistics/industry/tourism-and-transport/motor-vehicle-census-australia/latest-release

Understand Insurance – https://understandinsurance.com.au/types-of-insurance/car-insurance#:~:text=It%20protects%20any%20person%20that,property%2C%20or%20your%20own%20vehicle

Insurance Business Australia – https://www.insurancebusinessmag.com/au/news/breaking-news/australian-states-and-cities-with-the-most-motor-vehicle-thefts-413862.aspx#:~:text=21%20Jul%202022-,Australian%20states%20and%20cities%20with%20the%20most%20motor%20vehicle%20thefts,leading%20car%20insurers%20in%20Australia.

Why Management Liability Insurance Is Important

September 29, 2022

by insuranceadmin with No Comment blog

As a business owner you are personally liable for most things that go wrong in your business whether you are actually at fault or not, the liability will always be on your shoulders as the owner.

And it’s not just larger businesses that are at risk, small and medium sized businesses can be affected as well, so it is important that you protect yourself and your business.

Investing in management liability insurance can save you from unexpected liability expenses and legal costs from any claims that arise.

To give you an idea of what this insurance can do for you exactly, here are a few of the protections that management liability cover offers.

Employment Practice Liability

When running a business you will have your own inhouse systems for managing employee disputes and ensuring everyone is being treated fairly. However, if any of your employees claim that a wrongful act such as wrongful dismissal, workplace bullying, or discrimination has occured it can be costly to you and your business.

Having management liability insurance cover can protect you by financing the payouts for employment breach claims.

Directors and Officers Liability

As a business owner you are responsible for protecting everyone that works for you including directors, officers and employees.

Having business insurance can help protect your company’s past, present and future directors, officers and managers against claims of wrongful acts, such as misrepresentation or breach of duty.

Crime

There are a range of crimes that can occur in the workplace, so it is important to be prepared. While management liability cover won’t protect against all forms of criminal activity, this cover will protect your business from claims of employee or third party fraud.

There are additional policies you can look into for cover for various workplace crimes, depending on the severity of the crime.

Statutory Liability

Statutory liability covers costs associated with defending and settling claims from outside parties who are alleging wrongful conduct, as well as investigation into the affairs of the company.

This ensures your business can afford to get a high level of legal defence and protection without facing large financial losses which could bankrupt your business.

Defence Costs

If your business ends up in court for any reason it can be expensive to seek legal advice and great defence lawyers. Without insurance, going to court can destroy a small business if they cannot come up with sufficient funds.

Having management liability insurance can protect your business, no matter the size, by covering all the costs associated with going to court.

If you are a business owner and do not yet have liability insurance or are looking to upgrade your policy we can help.
Business Insurance Consulting specialises in a wide variety of business insurance policies including management liability. To learn more about our services and how we can help protect your business, you can visit our website or contact us to request a quote.

Benefits Of Cyber Protection Insurance

September 26, 2022

by insuranceadmin with No Comment blog

It is no secret that the majority of our lives and business is completed online, this also means however, that the risk of cyber attacks is now higher than ever. So, it is essential to protect yourself and your business from cyber attacks.

You can do this by investing in cyber protection insurance. This is a relatively new form of cover as cyber risks have recently begun to become more prevalent.

Some of the biggest benefits of cyber protection insurance include covering financial and reputational losses incurred by cyber attacks, as well as providing liability protection.

Let’s take a look at some of the ways that cyber protection insurance can help your business.

Business Interruption Losses

Having cyber insurance will ensure any and all financial and work related losses that you may suffer as a result of a cyber incident or attack are covered, so your business is not significantly impacted.

Cyber Extortion

Depending on the nature of the cyber attack, the hackers may try to blackmail your business by requesting a payment in exchange for your data or systems.

Without insurance this can be costly, and if you cannot afford the ransom amount you risk losing all your data. With cyber insurance, all the costs of hiring professional negotiators, covering the demands, and preventing future threats will be covered.

Electronic Data Replacement

Repairing, recovering and replacing your business’s data can be a time consuming and expensive process following a cyber attack.

If you have insurance, through this process won’t hurt as much, as all costs will be reimbursed. This ensures you can get back to normal business operation as soon as possible, with minimal financial losses.

Security and Privacy Liability

Cyber breaches can result in damage to your reputation if any third party data held in your system ends up in the wrong hands.

Having cyber liability insurance your insurance company will help minimise the damage to your business. They will cover the included costs of immediate responses, ensuring payments are made on a no fault basis without admission of liability. This will ensure your business’s reputation is protected.

Legal Costs

If you need to seek any legal defence or have to face court for any reason related to a cyber breach or attack, your insurance will cover all relevant legal costs.

As well as covering defence costs, your insurance company will also cover all legal expenses and costs that arise from government regulator investigations.

Electronic Media Liability

Cyber attacks can result in a massive data breach, which can have detrimental effects on your business, financially and reputationally.

Cyber insurance will ensure your reputation remains intact and cover all costs associated with data breaches, including copyright infringement, defamation claims, and the misuse of certain types of intellectual property online.

Crisis Management Expenses

If you have to call in crisis management experts to help manage the effects a cyber attack has had on your business or team, your insurance provider will cover for the costs.

Notification and Monitoring Expenses

Notifying all of your customers of a security breach and monitoring all of their data against future attacks can be expensive and time consuming. However, with insurance it doesn’t have to be, your insurer will cover all of these expenses for you.

If your business has a website or any electronic data online, it is important that you protect it. If your business is in need of cyber protection insurance we can help.
You can visit our website to learn more about our insurance services or contact us to request a quote to start protecting your electronic data.

Suncorp sells bank with intentions to focus on insurance sector

August 22, 2022

by insuranceadmin with No Comment blog

Suncorp has recently announced the $4.9 billion sale of its banking operations, with the hopes that this will simplify the business, and allow it to focus its attention on insurance in Australia and New Zealand.

ANZ will purchase the regional bank in a cash deal expected to close in the second half of 2023, subject to regulatory clearances.

Suncorp Group CEO Steve Johnston says the transaction won’t change the insurance strategy, but it will strengthen the company’s focus as it continues to drive the performance of its brand portfolio.

“Strategically we feel it is an opportunity for us to really focus exclusively on our insurance business and drive the sort of performance we think we can deliver in that business,” Mr Johnston said.

Suncorp estimates net proceeds of $4.1 billion from the deal, and say that “consistent with the approach taken in previous divestments”, the current intention is to return the majority of that to shareholders.

Chairman Christine McLoughlin says both businesses will benefit from a singular focus on their growth strategies and investment requirements.

The company’s brands include AAMI, GIO, Suncorp, Shannons, Apia and Vero. In New Zealand, it also has the AA insurance joint venture and Asteron Life.

“Our purpose of building futures and protecting what matters – the focus of our company for over 100 years – will remain at our core and enable our people to deliver on our vision to create the leading Trans-Tasman insurance company,” she said.

Mr Johnston says Suncorp has momentum in its motor portfolio and he expects the home portfolio to ultimately recover some lost market share after the company shifts pricing to reflect increasing costs.

“I go into this transaction with a very comfortable disposition around the performance of our insurance business,” he said.

Both Suncorp and ANZ have made commitments to the state of Queensland as part of the transaction.

Suncorp’s commitment includes establishing a Disaster Response Centre of Excellence, which will incorporate modern technology to monitor, prepare for and respond to extreme weather events and natural disasters.

This centre will also include an employment hub for the firm’s flexible event workforce.

Mr Johnston says the company has recruited more than 1000 new employees over the past six weeks to manage the east coast flooding, with a large majority of the new staff in Queensland.

Home insurance and ‘side hustles’: how worried should we be?

August 8, 2022

by insuranceadmin with No Comment blog

There’s momentum building on an insurance issue that could theoretically invalidate thousands of home and contents policies, and has consumer groups throwing around accusations of “junk” cover.

When customers take out home and contents policies they are invariably asked if any business activity takes place at the home. If the answer is no, and that’s not accurate, or it later becomes inaccurate, there’s a serious risk of claims being denied.

At first glance it doesn’t seem that different to any other non-disclosure issue, and if consumers are dishonest, or careless with the truth, or fail to tell their insurer about changed circumstances, then the consequences are on them.

There are also very good reasons why business activity increases risk – even extra visitors to the home adds to liability concerns – and if insurers don’t want to take that on, well, that’s up to them.

But is it quite that simple?

There are estimated to be hundreds of thousands of Australians carrying out some form of business activity from home, especially since covid. And business activity can be quite difficult to define.

Recent examples highlighted by ABC News where claims have reportedly been denied or cover withdrawn include eggs being sold from an honesty box, bike repairs taking place in a garage, and a food truck parked at – but not trading from – a home address.

One broker told insuranceNEWS.com.au that a pensioner client of his was informed that continuing to sell $5 worth of eggs to his carer every month would force the cancellation of their home and contents policy.

While we may not have all sides of every story, and insurers are entitled to decide which risks they want to pass on, these articles don’t pass the all-important “pub test”. And the more stories that are told, the more this threatens the industry’s reputation.

Consumer Action Law Centre CEO Gerard Brody told the ABC that if a consumer has a policy that was never going to provide coverage, it’s “effectively junk” and insurers need to “look at the fairness of what they’re doing and come up with a better solution for their customers”.

Politicians are getting in on the act too, with ACT Independent Senator David Pocock writing to the Insurance Council of Australia, Financial Services Minister Stephen Jones and others.

“There is a real issue here,” one industry source told insuranceNEWS.com.au.

“Lots of people will be doing little business activities for modest amounts of income. I wouldn’t be surprised if ASIC turned around and wrote a letter saying ‘review your home book and let us know the extent of this issue’.

“It’s something that the industry needs to think through just to satisfy ourselves that there isn’t some great big latent systemic issue out there.”

Bringing us back down to earth is that fact that we haven’t heard about many claims being denied on this basis.

Insurers are paying out hundreds of thousands of home claims in the wake of a spate of natural catastrophes – and if flood claims were being denied en masse on the basis of undisclosed garage sales or fresh produce honesty boxes, we would surely have heard about it.

Insurers don’t appear to be actively investigating such activity, and in most cases, how would they even know about it?

The Australian Financial Complaints Authority (AFCA) says complaints about the issue are not common, pointing to only one relevant determination in recent years.

That case related to a fire caused by undisclosed jewellery manufacturing taking place in a garage.

The complainants thought it was more a hobby than a business, but AFCA pointed out that income was generated, there was a business bank account and an ABN.

Some have flagged the fact that the duty of disclosure changed on October 5 last year to a duty to take reasonable care not to make a misrepresentation.

This swings the balance slightly in favour of consumers, and means the insurer needs to ask questions clearly and specifically, and communicate to the insured the importance of answering correctly, and the possible consequences of failing to do so.

However, it may not have much impact on this issue. Answering a question about business activity inaccurately is probably going to fall foul of either duty. And the same applies to not updating a previous answer on renewal, so long as the insurer has issued the renewal notice correctly.

Contrary to popular belief, the claim would not have to be directly related to the business activity for the insurer to deny it.

But under the new duty the insurer would need to prove that a misrepresentation had occurred, that reasonable care was not taken, and that, had it known about the undisclosed matter, it would not have offered cover in the first place.

“It comes down to the basis of the insurer’s denial,” AFCA’s Senior Ombudsman General Insurance Chris Liamos tells insuranceNEWS.com.au.

“If it’s a non-disclosure or a failure to take reasonable care not to make a misrepresentation, they don’t necessarily have to prove a link between the claim and the non-disclosure.

“What we are looking at, because it’s a precontractual issue, is what would the insurer have done differently, and what’s the prejudice that they’ve suffered.

“The insurer will still need to step through how it would have affected them. If they still would have issued the policy on the same terms then they can’t deny a claim on that basis.

“If they would have charged an additional premium they can deduct that from the claim, or if they would have applied an exclusion that wasn’t applicable to the claim then there is no prejudice.”

As to how business activity is defined, AFCA would first look for definitions within the policy. If there were none, it would move to the ordinary meaning of those words.

Mr Liamos admits “it’s a difficult one” and there are some “grey areas”.

“If your kid is selling lemonade at the front door, that would be a big stretch to say that’s somehow a business.

“On the flip side, if you’ve got a situation where someone has got an ABN and a fairly large turnover they are generating from their home, that might be less controversial.

“We would be looking at what would be the ordinary consumer’s understanding of that term in the context of the policy wording. Then we would look at the specific activities of the insured that the insurer is saying falls foul of the language.”

Does simply working from home as a paid employee cause a problem? You’d think not, but can anyone afford to make assumptions?

One industry source suggests that policies may need to introduce greater clarity – and refer to specific income thresholds or activities.

And however daft some might think it is, insurers have every right to decline to cover home and contents customers due to low-level business activities, if that’s what they want to do.

“They have a commercial discretion as to what they’ll insure and under what circumstances,” Mr Liamos says.

“If they want to be strict about certain types of business they don’t want to insure then generally they are entitled to do that.”

The advice to consumers is, as ever, read the Product Disclosure Statement. If a customer is unsure about anything, they should give the insurer a call.

Don’t assume something relatively minor doesn’t matter – it might. And if something changes, they should tell their insurer immediately, and pay attention at renewal time, making sure to check that the answers previously given are still accurate.

A little extra cash can go a long way in easing the pressure as the cost-of-living rises. But it’s not worth invalidating insurance on your biggest asset.

And as far as the industry goes, prepare for more scrutiny on this issue – especially if more people decide to tell their story to the ABC.

Affordability

July 25, 2022

by insuranceadmin with No Comment blog

Why is insurance affordability so important?

Insurance plays an essential role in the economy, and affordable insurance is central to resilient communities.

Our members recognise that access to appropriate levels of insurance cover is a crucial to supporting our communities and national economic recovery and growth.

Committed to addressing affordability

Insurers share a commitment to addressing insurance affordability and availability over the short and long-term and the ICA works closely with all levels of government and consumers to help communities understand risk and work towards practical and meaningful solutions.

Why have some premiums been rising?

Insurance prices reflect the level of risk within a given market. Different types of insurance will therefore be priced differently.

Generally speaking, premiums tend to be lower and stable where there is competition, freely available reinsurance and known risk factors. As insurance works by pooling risk, insurers cannot have a concentrated exposure to any one source of risk and the level of premiums is one way they can manage their exposure.

In recent years, our changing natural environment has impacted the cost of insurance in parts of Australia. Catastrophic natural events have damaged or destroyed property worth tens of billions of dollars. This has been most recently visible in the Australian bushfires of 2019-20 and floods of 2021 and the increasing frequency of these events poses long-term questions for the insurance industry and the Australian community.

Reviews into insurance affordability

Two prominent reviews have taken place into insurance affordability in the last two years:

ACCC Northern Australia Insurance Inquiry
Role of the Private Insurance Market –Independent Strategic Review: Commercial Insurance

ACCC Northern Australia Insurance Inquiry

Concentrated impact in northern Australia

Catastrophic natural events impact different parts of Australia in different ways. In northern Australia, the increasing scale and frequency of claims due to cyclones and flood has raised costs and rendered the insurance market unprofitable over a long period of time. This focus was the subject of recent reports, including:

ACCC Northern Australia Insurance Inquiry(released in December 2020)

Findings of ACCC Northern Australia Insurance Inquiry

Over three years, the ACCC conducted a wide-ranging inquiry into the supply of residential building, contents and strata insurance in northern Australia.

The final report, released in December 2020, concluded that “the higher risk of natural disasters in northern Australia is driving higher premiums” and suggested that “reforms to land use planning and building standards may offer the best hope for achieving sustainable and equitable improvements to insurance affordability in northern Australia in the future.”

Role of the Private Insurance Market – Independent Strategic Review: Commercial Insurance

An independent report was commissioned by the Insurance Council of Australia and led by industry expert John Trowbridge in collaboration with economist Michael Blythe. A draft was released in May 2021 and the final report, including 13 recommendations, was released on 20 September 2021.

The final report concluded that in the context of a hardening insurance market there is no one-size-fits-all solution to issues of affordability and availability for small business sectors, and that solutions require collaboration and goodwill between the insurance sector, the SME sector, and governments.

The Review’s recommendations broadly fall into three categories: improved engagement between insurers and the SME sector; better understanding of insurance by SME policyholders; and advocacy to government and transparency. The ICA supports all recommendations of the Review.

Submissions to the ICA

Access submissions to the ICA for the ‘Role of the Private Insurance Market –Independent Strategic Review: Commercial Insurance’

ICA encourages Government review on Queensland building resilience

July 11, 2022

by ED Admin with No Comment Uncategorized

Building resilience in Australian homes has been a long discussed topic in the insurance world.

With the recent catastrophic flooding in Queensland and New South Wales earlier this year (February and March 2022), the conversation has only grown even stronger.

The Insurance Council of Australia (ICA) has welcomed the Queensland government’s independent review of the Queensland Building and Construction Commission (QBCC) to ensure homes in the state remain resilient to extreme weather.

The independent review, ‘QBCC Governance Review 2022’, discusses developers’ role in the Queensland building and construction industry, and it aims to establish a steering committee to monitor and report on the progress of QBCC’s recommendations.

The recommendations in the review have matched the ones made by the ICA in ‘Building a more resilient Australia’, a report outlining the need to improve protections for Australians from extreme weather risks.

ICA CEO Andrew Hall has long been outspoken on the issue, and the need for more action from the Government.

“As the regulator of the third-largest contributor to the Queensland economy, the Queensland Building and Construction Commission has an integral role to play in improving the resilience of Queensland homes to worsening extreme weather,” said Mr Hall.

“The ICA and insurers are pleased with the recommendations of the independent review as it drives home the urgent need to improve resilience for homes, which will directly impact on premiums for at-risk communities.”

The Queensland government made a statement saying it supports and is committed to addressing the independent reviewer’s findings to deliver reforms that reflect outcomes sought by recommendations and review.

It also recognised that many of the specific actions needed are complex and will need further detailed analysis before deciding how to deliver on the recommendations’ intention.

“The Queensland government is prioritising actions that strengthen the conflicts of interest framework, improve transparency, impartiality, fairness, and consistency in the QBCC’s decision-making processes,” it said.

“Other priorities include separating the functions of the mediation, resolution, and review unit from the QBCC licensing and compliance functions, as well as ongoing staff training to deliver a regulator with a clear focus on outcomes and customer service.”

Credit: https://www.insurancebusinessmag.com/au/news/natural-catastrophe/ica-welcomes-review-on-queensland-resilience-411705.aspx

Nearly $1 billion paid to policyholders after 2022 floods

June 28, 2022

by ED Admin with No Comment Uncategorized

According to the Insurance Council of Australia (ICA), almost $1 billion has been paid to policyholders after one of the most costly flood events occured in Queensland and NSW earlier this year.

The ICA has increased the estimated insured losses for the disaster by 28% to $4.3 billion.

The only Australian catastrophes to cost more were the 1999 Sydney hailstorm ($5.57 billion), the 1974 Cyclone Tracy ($5.04 billion), and the 1967 Cyclone Dinah ($4.69 billion) on a normalised loss basis.

The ICA had previously estimated $3.4 billion, however due to claims progression and an increase in larger commercial claims, the bill estimate has dramatically increased.

Across NSW and QLD, there have been 216,465 claims, and more than a fifth of them are already closed.

ICA CEO Andrew Hall says the government will have a role to play in ensuring that Australians can access insurance for future catastrophes.

“Keeping Australia insurable as extreme weather events worsen requires governments to invest in appropriate physical mitigation and adaptation strategies,” ICA CEO Andrew Hall said.

From February 22 to March 9, intense rainfall struck Maryborough in Queensland down to Grafton in NSW. Many areas received more than half their average annual rainfall in just a week. NSW’s Lismore suffered devastating flooding as the Wilsons River exceeded the former record set in 1954 by over two metres.

As Australia continues to experience extreme weather events all across the country, it’s important to make sure that you are keeping your home and assets protected.

Contact the team at Business Insurance Consulting to learn more about your home and business insurance today!

Credit: https://www.insurancenews.com.au/local/almost-1-billion-paid-to-flood-claimants-so-far

Increased fire danger in NT after record dry levels

June 25, 2022

by ED Admin with No Comment Uncategorized

Dry conditions in northern parts of Australia will increase bushfire threat in the region in the coming months, reports the Australian Fire and Emergency Services Authorities Council (AFAC).

AFAC’s Season Bushfire Outlook for Winter 2022 reports that NT areas surrounding the Gulf, Victoria River and Katherine regions will face fire risks above expected levels from June to August.

“Our colleagues in the NT are preparing the landscape and the community for the dry season, with some locations near or at record dry levels over the past three months, which increases their fire risk,” AFAC CEO Rob Webb said.

The report forecasts a wet winter season, with above average rainfall expected in the ACT and parts of Queensland and NSW, reducing the likelihood of fire threats in those areas.

“We have seen significant rainfall this year for much of the country, and are expecting above average rain to continue through winter,” Mr Webb said.

However, he warns that the decreased threat poses an additional risk for traditional fire seasons later in 2022.

“While this reduces fire potential for this season, it will increase grass and fuel as we move into spring and summer. Agencies will continue to monitor local conditions and manage risks accordingly.”

AFAC warns that deadly fires could still occur in normal fire risk zones, and suggests that all Australians remain vigilant to fire threats.

With the devastating floods that affected Queelsnad and NSW earlier this year, it’s even more poignant that Australians are taking measures to protect their homes and businesses.

While the Government needs to be pushed to take action to ensure that there are proper mitigation measures, Australians need to ensure they are insured against extreme weather events.

If you need help discussing your business or home insurance options, you can talk to the team at Business Insurance Consulting to explore your options today!

Credit: https://www.insurancenews.com.au/local/record-dry-levels-increase-fire-danger-in-nt

The Benefits of Using Insurance Brokers

June 21, 2022

by ED Admin with No Comment Uncategorized

A recent podcast series hosted by Insurance News MD Andrew Silcox discussed the benefits of using brokers, rather than buying insurance directly.

The podcast, Insurance with INsight, is produced by Insurance News in partnership with Vero, and discusses the results of the latest Vero SME Index.

Each year the Vero SME Index measures the effectiveness of insurance and brokers who work with small to medium-sized businesses.

The podcast considers statistics from the Index that show broker clients are far more likely to be satisfied with the claims process than those who buy insurance direct.

This episode features contributions from Vero’s National Manager Commercial Property Claims Kira Pellicano and Gallagher Head of Claims Adam Squire.

The Index reveals that 63% of broker clients are satisfied with the result of their claims, compared to only 42% of direct buyers.

“99% of the problems that we have in claims are because communication has failed,” Mr Squire says.

“If a client ever rings me and says, ‘I don’t know what’s going on with my claim’, we as an industry have failed. It’s as simple as that.”

Ms Pellicano says SMEs that tap into broker expertise have access to crucial support.

“The added benefit is then when something does go wrong, you’re not on your own and you actually have support of an insurance professional through that claims process.”

You can listen to the episode recording here.

Using an insurance broker can be especially beneficial for businesses, as insurance can be complicated. Having someone who understands the details of a policy can help you better understand what level of cover you may need, and avoid certain errors in claims.

Need help with your business or home insurance? Get in touch with the team at Business Insurance Consulting today for all your insurance needs.

Credit: https://www.insurancenews.com.au/daily/sme-claims-podcast-highlights-benefits-of-using-brokers

Is Australia becoming uninsurable?

June 12, 2022

by ED Admin with No Comment Uncategorized

Earlier this year Queensland and NSW experienced extreme flooding, leaving many homes with significant damage.

While extreme weather events are not a new phenomenon in Australia, the increased severity and frequency of them has been cause for major concern.

A study released by the Climate Council says insurers are raising premiums to cover the increased cost of claims and reinsurance as the threat of extreme weather events grows, with the risk set to worsen unless Canberra starts acting swiftly to phase out burning coal and other fossil fuels.

According to the report, Australia is now facing the prospect of becoming an “uninsurable nation”, with more than half a million homes (1 in 25 properties) forced to go without insurance cover in 8 years time because of climate change.

“Climate change is creating an insurability crisis in Australia due to the worsening extreme weather and sky-rocketing insurance premiums,” the report, Uninsurable Nation: Australia’s Most Climate-Vulnerable Places, says.

The report states that insurance will become increasingly unaffordable in major parts of the country, and there is also a possibility that insurers could decide that offering policies in high-risk areas is not viable.

“We have a number of places in Australia where people are not insuring their homes because of cost,” Climate Council CEO Amanda McKenzie says.

“So that means that those homes are effectively uninsurable.”

She further elaborates that the recent floods and the Black Summer bushfires are a “massive red flag” for the country.

“Scientists have been saying for decades Australia is highly vulnerable to climate change risks and now we’re seeing it play out before our eyes,” Ms McKenzie said.

According to the recent Climate Council report, NSW and Queensland account for seven of the top 10 list of federal electorates that are most vulnerable to climate change-fuelled extreme weather events such as floods and bushfires.

The report says that about 15% of properties (165,646), or about one in every seven properties in the top 10 list will be uninsurable this decade.

These properties have projected annual damage costs equivalent to 1% or more of the property replacement cost, and are referred to as uninsurable, the report says.

“Whilst policies might still be available, premiums are expected to become too expensive for people to afford,” it explains.

ICA has responded to the Climate Council report, with a spokesman saying that although there are some locations where there are affordability and availability concerns, there is no area of Australia that is uninsurable at present.

“Insurance prices risk, and that means that for those in flood-prone or cyclone-prone locations, cover can be costly,” the spokesman said.

ICA CEO Andrew Hall says that while no area is uninsurable, the question should more so be focussed on what needs to be done in these extremely high risk areas.

“In some cases we have seen, particularly in these most recent floods, homes that are flooded three times in 10 years and so the question has to be asked ‘when you’ve got homes that are in harm’s way and are often being damaged catastrophically like this, what do we need to do’,” he said.

Mr Hall says Australia needs to look at adaptation measures and mitigation investments to improve resilience and existing building standards.

“We do have a problem in this country that we have got to simply address and that is more money has to go upfront to protect homes rather than in the clean-up.” he says.

Mr Hall says an “extreme outcome” could involve relocating homes, buying the land and turning it into recreational or environmental areas. However, he adds on that people have to be given options if they choose to stay where they are.

This “uninsurable nation” tagline has raised some debate within the industry.

Many have said that this is an alarmist interpretation, but the report insists this is a make or break time for Australia’s insurability crisis.

But one thing that cannot, or should not, be debated is that action must be taken on making this country more resilient to natural disasters.

If you have any questions or concerns about your home or business insurance, you can reach out to the friendly and knowledgeable team at Business Insurance Consulting!

Source: https://www.insurancenews.com.au/analysis/uninsurable-nation-maybe-maybe-not-but-action-needed-either-way

High level of underinsurance in flood affected areas

March 28, 2022

by ED Admin with No Comment Uncategorized

The Queensland and NSW floods have caused losses reaching an estimated $2.3 billion. This devastating extreme weather event has deeply impacted many families and businesses.

A survey conducted by the Insurance Council of Australia (ICA) has highlighted a significant level of underinsurance among the affected communities.

The ICA reported on March 21st that insurers had received 153,769 claims, which is a 2% increase from the previous week’s figures.

ICA also released results from a survey of more than 1000 people from three flood-prone areas in southeast Queensland and NSW. The survey found that 37% of respondents say they wouldn’t have enough insurance to rebuild.

Two-thirds of respondents also stated they don’t believe governments are investing enough to properly protect homes and communities from extreme weather events. More than 90% of those respondents said the spending should at least double.

From the survey the ICA reports that an astonishing 94% of people said there should be better controls on where homes are built so they are not at risk of flood.

On affordability and availability constraint drivers, the survey finds 47% say flood cover can be difficult or expensive to obtain due to the risk of flood, one in five says it is driven by insurer profits and 11% cite climate change.

“The Insurance Council has long called for greater investment in measures that better protect homes and communities from the impact of extreme weather,” ICA CEO Andrew Hall said.

“This most recent flood has unfortunately brought this issue into sharp relief, and now those directly impacted have added their voices to this call.”

The ICA survey was conducted from March 11th-14th across the Northern Rivers, Western Sydney and Greater Brisbane regions.

If you wish to discuss your home or business insurance options, you can contact Craig from Business Insurance Consulting.

Email: [email protected]

Phone: 0412 212 099

Credit: https://www.insurancenews.com.au/local/flood-losses-rising-as-survey-shows-high-levels-of-underinsurance

Personal hardship assistance extended to more flood-affected areas across South-East Queensland

March 8, 2022

by ED Admin with No Comment Uncategorized

On March 2nd, the Insurance Council of Australia (ICA) stated that insurers received 48,220 claims related to the flooding in South-East Queensland and the New South Wales coast.

This was a 53 percent increase from the previous day’s claims count, and further demonstrated the significant impact from this event.

37,807 of the claims were from Queensland, with the remainder from New South Wales. The New South Wales figures are expected to increase, as more policyholders return to their homes and businesses.

Eight-four percent of the total claims relate to property, with the rest being motor vehicle claims. Insurers do not currently have an estimate of claims costs.

The personal hardship assistance has been extended to more flood-affected individuals and families, as flooding continues to affect people across South-East Queensland.

Grants are available through the jointly funded Commonwealth-State Disaster Recovery Funding Arrangements (DRFA) for eligible flood-affected residents in Ipswich, Lockyer Valley, Moreton Bay and Somerset. The personal hardship grants have also been extended to the entire Local Government Area of Gympie Regional Council, Fraser Coast and Sunshine Coast.

The Federal Minister for Emergency Management and National Recovery and Resilience Senator the Hon Bridget McKenzie said that if eligible, the DRFA assistance would provide grants of up to a maximum of $900 for a family of five or more, or $180 per person.

“These payments are designed to cover essential items such as food and clothing for people who are doing it tough as a result of the floods, in addition to the reconnection of essential services once it’s safe to return home.”

“Areas affected by flooding in Brisbane and Logan are currently being assessed for the provision of personal hardship financial assistance and those assessments are being progressed as a matter of priority.”

“Brokers are contacting their clients in affected areas and are offering their assistance,” said NIBA CEO Philip Kewin.

“The Australian and Queensland governments continue to work closely to support ongoing recovery efforts and identify where further assistance is required to ensure all flooded communities have the assistance they need to get back on their feet.”

You can find more information on Personal Hardship Assistance and Essential Services Hardship Assistance here, or contact the Community Recovery Hotline 1800 173 349.

Credit:

https://www.niba.com.au/2022/03/01/personal-hardship-assistance-for-insurance-catastrophe-affected-areas/?utm_medium=email&utm_campaign=Broker%20Buzz%202%20March%202022&utm_content=Broker%20Buzz%202%20March%202022+CID_e6939488bb93f5b6d1e850621fed373c&utm_source=Email%20marketing%20software&utm_term=Personal%20hardship%20assistance%20for%20flood%20affected%20communities

Insurers step up their commitment to tackling climate change

February 27, 2022

by ED Admin with No Comment Uncategorized

Allianz Australia has stepped up their climate commitment in 2021 by becoming the first insurer to join Climate League 2030.

Climate League 2030 is a private sector-focussed 10-year initiative that aims to reduce Australia’s annual greenhouse gas emissions, in line with the targets set by the Paris Agreement in 2015.

The Investor Group on Climate Change (IGCC) launched the initiative in October 2020, starting with investor participants.

IGCC is a collaboration of both Australian and New Zealand investors focussed on the financial impact of climate change on investments.

Supporting Climate 2030 means Allianz must commit to taking at least one new action each year that will make a demonstrable contribution to reducing Australian emissions.

Allianz Australia MD Richard Feledy says the business is “proud” to be the first insurer to join the initiative.

“Allianz is committed to a net-zero emissions future and we are decarbonising our operations, insurance portfolio and investments to help us achieve that goal,” Mr Feledy said.

“We believe climate risks are better mitigated when we collaborate with other organisations, industries and markets.”

“By joining initiatives such as Climate League, we hope to enable an orderly transition.”

IGCC CEO Rebecca Mikula-Wright says hopefully more insurers will follow Allianz and join the initiative.

“More and more investors, banks and insurers are now recognising that reducing emissions on a Paris-aligned pathway represents responsible action to secure a healthy economy for Australia,” she said.

“The Investor Group on Climate Change continues to support other organisations, including hopefully more insurance firms, to join Climate League to support a stronger 2030 national emissions reduction commitment, which will remain in focus in the lead up to COP27 in Egypt next year.”

Allianz also announced changes to reduce their ties with fossil fuels. They are removing thermal coal from proprietary investment and underwriting portfolios and in 2021 the insurer stopped insuring or investing in infrastructure facilities that derive more than half their revenue from thermal coal.

From 2023, Allianz plans to no longer provide property & casualty insurance or make proprietary investments in companies that plan new coal mines, generate more than 25% of revenue from thermal coal mining, or produce more than 10 million tons of thermal coal annually.

This focus on handling climate change is no new thing, and has been a hot topic in the insurance industry.

After a turbulent year last year in terms of extreme weather events, Suncorp CEO Steve Johnston also made comments on the need to face this issue head on.

“Call it La Nina, climate change, or just bad luck, it really doesn’t matter – the results and impacts are the same.” he said.

“At a time when homeowners really need adequate home insurance, allowing tax revenue from insurance to keep growing due to climate change makes little economic sense.

“Pushing people out of the insurance market simply transfers the cost of the extreme weather event, and the one after, to the taxpayer.”

Mr Johnston said “climate change is an intergenerational challenge that must be tackled” by setting ambitious targets and providing support for industries and jobs impacted by the transition.

You can read more about what he had to say here.

Australia continues to face extreme weather conditions each year.

If you want to discuss your personal, home or business insurance, get in touch with us today!

Credit:

https://www.insurancenews.com.au/corporate/allianz-steps-up-climate-commitment

Questions remain after cyclone reinsurance pool details are released

February 16, 2022

by ED Admin with No Comment Uncategorized

After announcing that they would be going ahead with the long-debated proposal, the Federal Government has quickly moved to develop a cyclone reinsurance pool.

The draft legislation was released December 2021. It provided various details, but still left key questions regarding the pool unanswered.

The two-week public consultation period on the draft bill closed on the 17th of December 2021, and the legislation is due to be introduced into Federal Parliament this year, and the pool is set to commence from July. This is ahead of the election due by late may this year.

The pool will cover cyclone and related flood damage for claims that arise from the beginning of a cyclone until 48 hours after it ends. The cover includes wind, rain, rainwater, rainwater run-off, storm surge, and riverine flood damage.

The Australian Reinsurance Pool Corporation (ARPC) will administer the scheme, and based on advice from the Bureau of Meteorology they will declare an event. The initial announcements regarding the proposed pool had referred to a region above the Tropic of Capricorn, however the new material simply refers to “cyclones in Australia”, including offshore territories such as Norfolk Island.

The eligible policies include, household property, residential and mixed-use strata, small business, charity and not-for-profit property policies, and farm residential policies.

However there are certain restrictions.

Business property policies would need to have sums insured of $5 million or less and strata and community title properties will be eligible where at least 80% of the total floor space of units are used mainly for residential purposes. Business marine cover remains a work in progress and is set to be included from the middle of 2023.

This cyclone pool will be mandatory and insurers are expected to start entering into agreements with the ARPC from July.

Large insurers have until December 31 next year to join the scheme, and small insurers have an extra 12 months to ensure all eligible risks are reinsured with the scheme.

The pool will be funded by insurer premiums but the scheme is backed by a $10 billion annual Government guarantee. In the case of rare cyclone activity levels that draw down the available funds, the Government guarantee can be increased after talks involving the Prime Minister, Treasurer and Financial Minister.

Premiums determined by the ARPC will be subject to actuarial review, and won’t include a profit margin. The pricing formula is set to be finalised before July and will use property-level data such as geography, building characteristics, and mitigation.

Treasury says key principles for the formula include that it should lower the reinsurance cost for most policies with medium-to-high exposure to cyclone risk and have minimal impact on premiums for lower cyclone-risk properties.

The treasury says it should also maintain incentives for risk reduction and offer discounts for properties that undertake mitigation.

From July to June 30, 2025, the cyclone pool should cover the entire cost of eligible cyclone and related flood damage claims above the policyholder excess, “to support insurer transition and maximise the potential premium reductions through the pool”.

After that time, the pool will operate on a risk sharing arrangement with the insurers, where the pool will continue to cover a significant proportion of eligible claims.

Insurers will continue to manage any of the claims, while the policyholders will still be able to choose their insurer.

“The scheme is expected to improve insurance access and affordability in cyclone-prone areas, build the financial capability of affected households and small businesses to recover from natural disasters, and support the economic resilience and development of cyclone-prone areas,” the Treasury paper says.

“The scheme is also expected to increase competition by encouraging greater insurer participation in cyclone-prone areas and support higher levels of insurance coverage by property owners.”

Pricing and the pass-through of savings from the scheme will be monitored by the Australian Competition and Consumer Commision. The first review is scheduled for three years after it commences, and every five years thereafter.

While the scheme is expected to commence in July this year, critical issues around the setting of premium pricing are still to be determined. Debate continues about the breadth of this cover, and the expected level of savings for policyholders remains unknown.

You can read the draft legislation, along with further details here.

Credit: https://www.insurancenews.com.au/analysis/cyclone-pool-details-revealed-but-questions-remain

AFCA says there is no excuse for not disclosing your claims history

January 30, 2022

by ED Admin with No Comment Uncategorized

A couple has lost their claims dispute after failing to remember their previous claims history when purchasing an Auto & General motor policy.

The Australian Financial Complaints Authority (AFCA) has ruled that the oversight was a breach of the disclosure obligations and the insurer was entitled to decline the latest claim for damage to the couple’s vehicle.

When purchasing their policy, the couple was asked how many claims they had made in the last five years. They indicated they were unsure whether it was one or two, and the insurer’s representative suggested that they disclose two claims.

The couple should have disclosed four claims. If they had disclosed the full extent of their claims history, the insurer’s underwriting criteria would have ruled them out.

“The complainants say they forgot about one of the non-recoverable claims,” the AFCA’s ombudsman said.

“While this may have been the case, it does not change the outcome.”

“It is reasonable to expect a person to know their claims history. I do not accept forgetting means the claims history was not known to the complainants for the purpose of section 21A(5)(i) of the [Insurance Contracts] Act.”

The AFCA said that an innocent non-disclosure is still a non-disclosure, and therefore a breach of the complainant’s duty.

“I am satisfied that, by failing to disclose two of the four claims the complainants had in the five years prior to policy inception, the complainants failed to comply with their duty of disclosure.”

“I am satisfied if the complainants disclosed their full claims history, the insurer would not have agreed to offer the policy and would not have insured the complainants.”

“Therefore, under section 28 of the Act, the insurer is entitled to reduce its liability to nil and refuse to pay the claim.”

You can read the full ruling here.

Interested in a dedicated broker for your home or business? Contact us for your own specialised quote.

Credit:

https://tinyurl.com/yhwdseck

Worldwide losses from natural disasters on the rise

January 20, 2022

by ED Admin with No Comment Uncategorized

In 2021, natural disasters caused substantially higher losses worldwide when compared to the previous 2 years, according to the Munich Re 2021 Nat Cat report.

From the data, Munich Re discovered that storms, floods, wildfires and earthquakes, and other extreme weather events destroyed assets totalling US$280 billion. This was a massive increase from US$210 billion in 2020, and US$166 billion in 2019.

Only US$120 billion of the 2021 losses were insured, but this was up from US$82 billion in 2020 and US$57 billion in 2019.

The United States accounts for a large share of these natural disaster losses in 2021, costing around US$135 billion. Tornadoes, tropical storms and deep freeze were the extreme weather events responsible for major losses in the USA in 2021.

Torrential rainfall triggered severe flooding in Europe that resulted in devastating losses to local areas, especially in western Germany. Within the affected regions of Europe, this rainfall was the highest in over a hundred years.

In the River Ahr in Rhineland-Palatinate, the flash flooding swept away countless buildings and severely damaged infrastructure, including railway lines, roads and bridges. The death toll was over 220 people.

This natural disaster caused losses of US$%54 billion.

In the Asia-Pacific, the losses from natural disasters remained modest in comparison. The overall economic loss was US$50 billion, with only US$9 billion being insured.

This region accounted for 18% of overall losses, with the costliest from natural catastrophes being a severe flood in Henan Province in central China.

Many rivers, including the Yellow River, burst their banks and hundreds of thousands of homes were flooded.

Overall losses in the Asia-Pacific region totalled to US$16.5 billion, and only 10% of these were insured losses.

Ernst Rauch, chief climate and geoscientist at Munich Re and head of the climate solutions unit, said the latest disaster statistics are striking as these extreme weather events are likely to only become more frequent or severe due to climate change.

“Among these are severe storms in the USA, including in the winter half-year, or heavy rain followed by floods in Europe. For hurricanes, scientists anticipate that the proportion of severe storms and storms with extreme rainfall will increase because of climate change,” Rauch said.

“Even though events cannot automatically be attributed to climate change, analysis of the changes over decades provides plausible indications of a connection with the warming of the atmosphere and the oceans. Adapting to increasing risks due to climate change will be a challenge.”

Natural disasters in 2021 were devastating to many, and many scientists believe this will only get worse in 2022 and later as climate change continues to be a risk factor.

Many of these catastrophic losses weren’t insured, and will leave families and businesses with long term impacts.

If you want to discuss insurance for you or your business, get in touch.

Credit: https://www.insurancebusinessmag.com/au/news/natural-catastrophe/munich-re-natural-disasters-losses-soar-in-2021-321577.aspx

What You Need to Know About Cyber Threats

December 28, 2021

by ED Admin with No Comment Uncategorized

As the internet has become an even more integral part of our lives and businesses, cyber threats have become a more prevalent danger.

Each and every day, cyber security incidents impact small businesses, large companies and individuals.

These cyber threats can cause devastating results for many small businesses.

Not every owner has the time or resources to effectively manage their cyber security, so this list includes a few tips to help protect your business from cyber attacks.

Common Cyber Threats

In order to better protect yourself against a cyber security incident, it’s important to understand what the most common cyber threats are.

Malicious Software (Malware)

Malware is software that is created to cause disruption or damage. It can include viruses, spyware, trojans and worms.

Criminals can use malware to access confidential information, such as bank or credit card numbers, passwords, and other personal information.

Some types of malware can gain access and take control of a user’s computer, using this information to commit fraud or identity theft. This security risk can disrupt business, and risk the security of sensitive data and intellectual property.

Malware creators can be located anywhere, as long as they have a computer and the technical skills, criminals can easily access cheap tools to use malware against you.

Email Scams (Phishing)

Phishing emails are a type of scam where a criminal impersonates a legitimate organisation, such as a business, via email, text message or advertisement, in order to steal sensitive information.

Often these criminals will pretend to be an individual or organisation you think you know and trust, in order to trick recipients out of their money and data. They may use official branding and logos to mimic businesses such as banks, and make themselves seem legitimate.

The emails or calls will most often attempt to trick businesses and individuals into performing specific actions, including:

Paying fraudulent invoices, or changing payment details on legitimate invoices
Reveal confidential information such as bank account details, passwords and credit card numbers
Give remote access to your computer, device or server, through opening an attachment that contains malware
Purchase gift cards and send them to the scammer

Phishing attacks are becoming more common, increasingly sophisticated and even more difficult to spot.

Always be cautious regarding urgent requests for money, changes to bank accounts, unexpected attachments and requests to confirm login details.

If you believe a message or call might truly be from an organisation you trust, you should find a reliable contact method to confirm.

You can search for the official website or call their advertised phone number. Do not use the links or contact details supplied in the message you have been sent or given over the phone, as these could be fraudulent.

You can also report suspicious emails and suspected scams to Scamwatch.

Ransomware

Ransomware is a type of malware that locks your computer or files down until a ransom is paid. This malicious software works by locking up or encrypting files so that you can no longer use and access them. This can sometimes result in your computer crashing.

Ransomware can be picked up in the same ways as other malware, such as:

Visiting unsafe and suspicious sites
Opening links, emails or files from unidentified sources
Having poor security on your network, mobile devices and servers

It’s important that you never pay a ransom. Paying for the ransom does not guarantee that the files will be restored, and it won’t prevent the stolen data from being published or sold.

Paying the ransom can actually increase the likelihood of being targeted again.

If you experience a ransomware incident and need support, you can call the Australian Cyber Security Centre hotline on 1300 292 371, or report the incident via ReportCyber.

Ways To Protect Yourself

In order to protect yourself and your business it’s important that you are implementing some sort of strategy to manage your software, data and online accounts.

This can protect your computer networks from attacks, and save you the trouble of dealing with online criminals.

Here are just a few of the things you can do within your business to improve your cyber security.

Automatic Updates

Keeping up to date with software updates is one of the best ways to protect yourself and your business from a cyber security incident.

An update provides you with an improved version of software, whether it’s a program, app or your operating system.

By setting your servers, computers and mobile devices up for an automatic update, you will get software improvements as soon as they are available, helping you prevent data breaches, and improving your information security.

Updating to the newest version of a software can help reduce the chance of a cyber criminal using a known weakness to run malware or hack your device.

Automatic updates can also just help make your life easier, saving you time. If automatic updates aren’t available, you should regularly check for new updates. You can also set a more convenient time for your updates to occur so that you reduce disruption to your business.

If you have antivirus or security software, you should always make sure these are set to update automatically.

Automatic Backups

A backup is a copy of your most important information, such as customer details and financial records. You can save this either on an external storage device or to the cloud.

Setting up automatic backup creates a ‘set and forget’ system that will backup your important information without the need for human intervention.

You should disconnect and remove your backup storage device after each back to ensure it remains secure in the event of a cyber incident.

Backing up is a precautionary measure to keep your data accessible if it is ever lost, stolen or damaged. It gives you the room to recover in the event of a cyber incident, and helps you get back on your feet faster.

You should test your backups regularly, and keep at least one backup disconnected from your device.

Multi-Factor Authentication

Multi-factor authentication is a security measure that requires two or more proofs of identity to grant you access to a device or account.

This usually requires a combination of things:

Password, PIN, or security questions
Authenticator app, smart card, or physical token
A fingerprint or other biometric method

This can be one of the most effective ways to prevent unauthorised access to valuable information and accounts.

These layers make it much more difficult for a criminal to attack your business. They might be able to steal your password, but obtaining the right combination of proofs of identity is much harder to accomplish.

As a business you should implement MFA on all possible accounts, especially financial and email accounts.

Access Control

Access control can help you limit access to your computer system. It can protect your business by restricting access to critical infrastructure such as;

Files and folders
Apps
Databases
Inboxes
Online accounts
Networks

Most of your staff will not need to have full access to all data, accounts and systems to perform their job. You should restrict access to sensitive information where possible, so employees and external providers do not accidentally or purposefully endanger your business.

Having an access control system in place will allow you to;

Decide who needs access to files, databases and emails
Control access permitted to external providers such as accountants, website hosting providers
Restrict access to social media and website accounts
Reduce damage if information becomes compromised
Revoke access if an employee changes roles or leaves the business

As a small business, typically the safest way is to give employees the bare minimum access and permissions they need to perform their job.

Passphrases

A passphrase is a more secure version of a password, and can be useful in situations where you can’t use multi-factor authentication.

Passphrases consist of four or more random words that make up your password. For example, ‘milk bridge toenail soup’.

Passphrases are intended to be hard for cybercriminals to crack, but easy for you and your employees to remember.

Your passphrase should be:

Long: the longer the better, but as a guide it should be a minimum of 14 characters
Unpredictable: use a mix of unrelated words, don’t use famous phrases, quotes or lyrics
Unique: don’t reuse your passphrase on more than one account

Employee Training

Employee training is a must when it comes to keeping your business safe from cyber attacks. You should teach yourself and your staff how to prevent, recognise and report a cybercrime.

Your staff should know the basics, such as how to update their devices, secure their accounts and identify scam emails.

You may also want to implement a cyber security incident response plan so your employees have a guide in the event of a cyber incident.

This will help you understand what your critical devices are, and what processes need to be in place.

Employees can be the first line of defence against a cyber threat, so training will help change habits and behaviour to ensure cyber security is everyone’s responsibility.

Regular awareness training is going to help keep your business safe. Scams and cyber attacks are only getting more sophisticated, and evolving as things change. Keeping your staff up to date on the latest cyber security threats could be the difference between a criminal gaining access to your vital data.

Keep Your Business Safe

These steps should help you understand more about what cyber threats are, and some of the strategies you can use to protect yourself.

Unfortunately, this does not mean that you will always be able to protect yourself or your business from the increasingly clever cyber threats.

If you’re considering Cyber cover for your home, or business, contact us today for a specialised quote.

Email: [email protected]

Credit: https://www.cyber.gov.au/acsc/view-all-content/publications/small-business-cyber-security-guide

Action on home resilience needed to minimise impact from cyclones

December 13, 2021

by ED Admin with No Comment Uncategorized

$23 billion in claims costs have been generated by cyclones since 1967.

The Insurance Council of Australia (ICA) says homes are not resilient enough, and the risks are expected to rise with climate change. The impacts from these extreme weather events are set to worsen unless action is taken.

According to a report prepared by the James Cook University Cyclone Testing Station in association with Risk Frontiers, changes need to be made to the design methods and criteria for new homes to avoid an increase in the already high impacts and losses.

The report recommends that the National Construction Code should consider resilience in new property construction as well as life safety. It suggests that federal and state governments should support the development and expansion of schemes for existing homes, like the North Queensland Household Resilience Program.

ICA CEO Andrew Hall says the National Construction Code needs to consider resilience for all new property construction if all of Australia is to remain insurable.

“Australia’s modern houses are not resilient to the tropical cyclone hazard of today,”

“Implementation of stronger building codes and retrofitting programs, improved land-use planning, and permanent physical mitigation measures, where necessary, will be key to ensuring an insurable Australia.”

Australia’s most costly natural disaster was Cyclone Tracy, which hit Darwin in 1974. The cycle generated a $5.5 billion insurance bill, normalised to 2017 values.

Recent cyclones in North Queensland, such as Yasi, Marcia and Debbie have cost $3.83 billion in insurance costs.

The National Construction Code is updated every three years, and the next revision is due late 2022. Decisions on any updates are administered first through the Australian Building Codes Board (ABCB). The ABCB is made up of state and territory government representatives, the Australian Local Government Association and seven industry reps.

“The ABCB are considering resilience initiatives and programs,” an ICA spokeswoman said. “It’s expected that consideration will take an extended period.”

If any National Construction Code amendments are made, it will still be up to each state and territory to decide whether they adopt the changes.

The cyclone report also includes recommendations for building codes to be updated to address water ingress issues, as well as a public awareness campaign to promote regular maintenance on vital home features.

The ICA report also suggests that it is time to invest in more fixed and mobile weather stations, and an Australian Historical Tropical Cyclone Footprint database should be developed to represent land wind speeds.

“A nationally consistent asset register could assist in improving data quality regarding housing construction type, wall construction, roof type, year of construction, renovations and retrofitting works,” the cyclone report says.

“This information is essential for the owner of the home or future buyers as well as emergency services, insurers and banks.”

This cyclone report is the second in ICA’s Climate Change Impact Series. It follows a study released last month on the impact of actions of the sea, and there are plans for a final report on floods to be released.

RACQ Group Executive Insurance Tracy Green says the report is a vital resource for explaining the growing risk of cyclones.

“Australia needs insurance to be sustainable and affordable and this report complements the growing amount of evidence that investment in resilience and future-proofing our assets is long overdue,” she said.

You can find the report here.

Credit: https://www.insurancenews.com.au/daily/cyclone-impacts-set-to-worsen-without-action-on-home-resilience-ica?utm_medium=email&utm_campaign=Daily%20insuranceNEWScomau&utm_content=Daily%20insuranceNEWScomau+CID_104083c4a61267ca59686b5cfcf16410&utm_source=EmailCampaign&utm_term=Cyclone%20impacts%20set%20to%20worsen%20without%20action%20on%20home%20resilience%20ICA

Floods predicted for Australia this spring and summer

November 16, 2021

by ED Admin with No Comment blog

The Bureau of Meteorology warns that above-average rainfall and flash flooding could occur in Australia this spring and summer.

Atmospheric and oceanic observations have yet to consistently reach La Nina levels, but there’s still a 70% chance of a La Nina system developing.

“Regardless of whether La Nina thresholds are met, a La Nina-like pattern in the Pacific may still increase the chances of above-average rainfall for northern and eastern Australia at times during spring and summer,” the bureau said in its latest update.

Various other weather systems are combining to point to wetter than average conditions across much of Australia.

The negative Indian Ocean Dipole (IOD) has weakened, but cloud patterns in the eastern Indian Ocean suggest the atmosphere is still responding to warmer than average sea surface temperatures in the region.

A negative IOD increases the chances of above-average spring rainfall for much of southern and eastern Australia.

Meanwhile, a Madden–Julian Oscillation (MJO) is forecast by some climate models to strengthen and move eastwards into the western Pacific over the coming fortnight. If the MJO strengthens this would increase the chances of heavy rain across northeast Australia, the bureau says.

The Southern Annular Mode (SAM) has been positive for the past three weeks and is forecast to remain at positive levels to the end of the year.

A positive SAM during summer typically brings wetter weather to eastern parts of Australia, but drier than average conditions for western Tasmania.

It’s more important than ever for Australians to prepare for the oncoming storm season.

The QLD Get Ready campaign, supported by Suncorp and featuring representatives from Queensland Fire and Emergency Services and Lifeline urges Queenslanders to prepare for the risk of flooding, torrential rain and other severe weather events.

Get Ready recommends three steps: prepare an emergency plan, pack an emergency kit and make sure insurance is up to date.

Suncorp CEO Steve Johnston says the insurer is committed to helping encourage Queensland households and businesses to be weather-ready as “waiting until a storm is bearing down is just too late”.

“Each summer, we see homes and communities destroyed by natural disasters, with much of this damage avoidable,” he said. “Even small-scale events can have a big impact, financially, emotionally and even physically, so it is critical Queenslanders undertake home preparation and maintenance now.”

Queensland has been hit by almost 90 significant natural disasters and weather events in the past decade, leaving a recovery and reconstruction bill of more than $16.8 billion. Last season, it was hit by 11 natural disaster events across 50 local government areas including hailstorms, bushfires, floods and cyclones.

Credit:

https://www.insurancenews.com.au/regulatory-government/queensland-launches-suncorp-backed-get-ready-storm-campaign

https://www.insurancenews.com.au/daily/la-nina-holds-off-for-now-but-floods-still-feared

IAG and Suncorp raise peril costs expectations after storms

November 10, 2021

by ED Admin with No Comment blog

Storms in South Australia and Victoria have been declared a catastrophe by the Insurance Council of Australia (ICA). These extreme weather events have elevated claims within the insurance industry, and Suncorp and Insurance Australia Group (IAG) have raised their outlooks for financial-year natural peril costs.

IAG increased its full-year natural perils forecast by 36.6% to $1.045 billion and lowered its reported insurance margin guidance range to 10-12% from 13.5-15.5% previously.

IAG says its net cost for the storm’s catastrophe is anticipated to be $169 million, the maximum retention for the first loss under its catastrophe program.

The full-year figure includes $535 million for the first four months. In addition to the recent storms, that comprises $204 million for the September quarter, $142 million for other weather events across eastern Australia in October and $20 million for attritional events last month.

Suncorp expects natural hazard costs of $1.105-$1.130 billion for the fiscal year. That’s $125-150 million above the previously announced $980 million allowances, divided equally between the first and second halves.

There have been six declared weather events in October. Suncorp says costs for the half have also been inflated by the 2021 Victorian earthquake and other storms in both Australia and New Zealand.

Suncorp expects the total cost from the recent storm events could reach $225-250 million, which led to a revised year-to-date estimate for natural hazard costs of $597-702 million.

Earlier in the year Suncorp had begun issuing grants for remote, rural and regional Australia in the hopes to rebuild resiliently in preparation for any future disasters.

Credit

https://www.insurancenews.com.au/corporate/iag-suncorp-raise-peril-costs-expectations-after-storms

Over Four Decades Natural Disasters Are Projected To Cost Australia $1.2 Trillion

October 18, 2021

by ED Admin with No Comment blog

Natural disasters costs are set to almost double over the next forty year period. $1.2 trillion is the projected cost to the Australian economy according to the Deloitte Access Economics estimate. They have estimated that natural disasters will drain the Australian economy of at least $73 billion per year by 2060.

The three main cost drivers are climate change, rising property values and population growth. Two thirds of these costs will be incurred in Queensland and New South Wales due to the rising temperature of oceans. Creating tropical cyclones and floods further south.

This figure projection was presented in Deloitte’s “Update to the economic costs of natural disasters in Australia” report, which was commissioned by the Australian Business Roundtable for Disaster Resilience & Safer Communities.

As the population grows major flooding from extreme weather events are forecast, increasing costs and social impact further. According to the report “coastal population centres in South East Queensland and North East NSW will experience some of the highest increases in costs as they become more exposed to tropical cyclones and floods.”

It also warned that a high emissions scenario introduces an additional $125 billion in costs over the same timeframe. It expressed that a low emissions future is imperative to offset climate change impact on natural disaster risks.

“Delaying action will ultimately mean paying more later as the costs from natural disasters increase.” the special report update mentioned.

The roundtable has released five independent research reports that include the financial and social costs of disasters. Each report recommends investment in disaster resilience and mitigation activities in response to natural hazards.

IAG MD and CEO Nick Hawkins says the action to limit climate change must be used in conjunction with interventions and creating resilient communities. Mr Hawkins said “the Roundtable members are seeing firsthand the impacts of more extreme, more frequent weather events on Australians, and this latest report provides further evidence that we must all continue to invest in increasing resilience to protect communities and ultimately, save lives.”

The report takes into consideration the smaller natural disaster events that aren’t always recorded by insured-loss data. These are utilised to consider how costs vary under various future temperatures scenarios.

Buy Now, Pay Later Option For Insurance Introduced By Coverpay

October 7, 2021

by ED Admin with No Comment blog

From next month “buy now, pay later” company Coverpay will offer a general insurance product. This will be aimed at consumers and SME’s after raising $2.5 million in launch funding to establish the platform.

Managing Director Steve Gilbert shared that the company has taken inspiration from “buy now, pay later” in the retail sector when developing this product. A product that is aimed at insurance that will offer customers another policy payment option.

The platform is embedded into a merchants existing transaction process and can be used at the checkout for online policy sales. It can also be used in conjunction with payment portals, on invoices or utilising embedded links. The bill can be split over 12 fortnightly payments for the customer and Coverpay pays the merchant in full.

A management fee of $7 is applied to each instalment. Customers are also given three days to make up a missed payment. After this time a default fee of $40 is added to any outstanding payment.

The fees that they charge are fixed, which according to Mr Gilbert, “aligns with our guiding principles of fairness and transparency.”

“Underinsurance continues to be a significant issue in Australia and we know that affordability is a key aspect of coverage choice,” he said. “We believe Coverpay can play a part in addressing underinsurance by directing more funds into a customer’s insurance budget.”

Coverpay will initially provide payment plans for up to $2500. Mr Gilbert has over 20 years in the insurance and finance industries. Rosalie Lau, Lisa Woodley, Vibul Imatarnasan and Kiersten Lethbridge also make up the core team at Coverpay.

Insurance Awards Finalists Named By ANZIIF

September 21, 2021

by ED Admin with No Comment blog

The finalists for the Australian Industry Awards have been announced by the Australian and New Zealand Institute of Insurance and Finance (ANZIIF).

ANZIIF will reveal the winners on October 26 via a free “online movie” production due to the current COVID-19 situation. The event was originally intended to be held at the Star Event Centre in Sydney.

The CEO Prue Willsford said, “whilst it would have been lovely to frock up and celebrate it is just not possible, so this year a professionally produced online movie will celebrate the incredible achievements from individuals and companies, and their contribution to raising the standard of professionalism for the insurance and financial services industry”.

The ANZIIF awards celebrate the accomplishments of individuals and companies within the insurance industry. The annual affair to highlight the accomplishments of those in the general insurance industry was cancelled last year due to the pandemic.

The following are the insurance provider finalists:

Small General Insurance – Adica Insurance, Guild Insurance, Lawcover Insurance, RACT Insurance

Large General Insurance Company – Allianz, CGU, Hollard Insurance, QBE Australia Pacific, Zurich General Insurance (Australia & New Zealand)

Excellence in workplace diversity and inclusion – Allianz Australia, CHU Underwriting Agencies, Hollard Insurance, Marsh, MetLife Australia, QBE Insurance Australia Pacific

Both the Insurance Leader and ANZIIF Lifetime Achievement Award winners will be announced on October 26.

Credit

Free Image – Canva.com

ANZIIF Names Insurance Awards Finalists – insurancenews.com.au

Profitability Improves For Global Industry As Rates Increase

September 6, 2021

by ED Admin with No Comment blog

According to a report on the results of global firms, insurer and reinsurer combined operating ratios improved in the first half, as rate increases outweighed claims. Double-digit rate increases were reported by six of the 18 tracked. QBE led with a 26% increase due to rising commodity prices in its North American crop business.

Pricing in commercial lines increased premiums, whilst rate growth for reinsurance also supported the momentum. Favourable pricing is expected to continue this year according to Willis Re. Some management teams have mentioned that further rate increases are likely to be less significant and portfolios have started to ease.

The increased profitability was supported by lower than expected personal lines loss frequency and some reserve releases were achieved despite higher natural catastrophe losses. The average combined ratio for the half was 93.7% with every company below 100%. Experiencing higher profit performance compared to the same period the previous year, which included substantial COVID losses.

Willis Re discussed the long term outlook of rating the environment and the current cyclical upswing as well as if profit margins are set to continually increase. Inflation impacts many areas in the short term as well as longer-term. Potentially including loss ratio deterioration, due to lags in pricing response, loss development increases above-booked levels and reductions in the market shares according to the report.

The report states that “In the current pricing cycle, companies appear to be proactively taking pricing action, but it remains to be seen whether it is sufficient”.

There are a number of companies included in the report such as QBE, Chubb, AIG, Aviva, Liberty Mutual, MS&AD, Allianz, Axa, Zurich, Travelers, Mapfre, Hannover Re, Swiss Re, Munich Re, Generali, Sompo. Tokio Marine and Scor.

Credit

Insurance News – https://www.insurancenews.com.au/international

Suncorp Offering Grants To Rebuild After Natural Disasters

August 31, 2021

by ED Admin with No Comment blog

Suncorp pledged 1 million in grants to assist with the rebuilding in remote, rural and regional areas within Australia. In the hopes to rebuild resiliently in preparation for any future disasters. The first round of grants is now open and currently available to communities within NSW and South East Queensland impacted by severe flooding in March.

NSW experienced record rainfall within a 7 day period since data began being collected in 1900. The rainfall in the area of the state that drains into the Tasman Sea averaged 252.9 millimetres in the seven days leading up to March 24, breaking previous records.

Suncorp has partnered with Foundation for Rural & Regional Renewal (FRRR) to conduct the Suncorp Rebuilding Futures program. Individual grants of up to $15,000 are being offered to local community groups and not-for-profit organisations to support the long term recovery and resilience building of vulnerable communities. The first round is open until September 15 with successful applicants being named in November.

10,000 insurance claims were received by Suncorp following the flooding in rural and regional communities. More than 60% of the total claims have now been finalised, assisting the community to recover from natural disasters.

CEO Steve Johnston said “I’ve seen firsthand the devastation and emotional toll of natural disasters, which is why we are supporting communities to not just build back but to make themselves more resilient than before. We are working closely with our building partners to progress repairs as fast as possible”.

Suncorp’s Rebuilding Futures grants aim to empower locals to collaborate and design local solutions. They understand that recovery is a marathon but communities are best placed to steer their own future.

The CEO of FRRR, Natalie Egleton mentioned that “This program, with a focus on the medium to long-term needs and building back better, will mean that when there are significant disasters support will be available to local groups’”.

The first round of funding consists of $200,000 in grants and applications are open until September 15 to help support the long term recovery of flood-impacted communities.

Credit

Insurance News – https://www.insurancenews.com.au/daily/suncorp-offers-1-million-in-grants-to-rebuild-after-floods

Insurance News – https://www.insurancenews.com.au/local/suncorp-flood-rebuilding-grants-open-until-mid-september

Insurance Companies Join COVID Vaccination Push

August 16, 2021

by ED Admin with No Comment blog

Some of Australia’s largest insurance companies are urging eligible staff members to receive a COVID-19 vaccination. With the possibility of offering an employer-assisted vaccine roll-out. The government is currently assessing a policy that could allow vaccinated employees to return to work.

Suncorp CEO Steve Johnston stated the insurer is “strongly advocating” for vaccines as “our ticket to a more ‘normal’ existence”. Mr Johnston has himself been fully vaccinated after receiving two doses of AstraZeneca. He encouraged “doing everything possible to support and encourage our employees to play their part and get vaccinated”.

They are currently working with chief medical officers to answer any queries employees may have and to continue the vaccination program. Members of staff have access to paid leave to attend vaccination appointments during work hours and Suncorp is actively considering playing a role in employer-assisted vaccine roll-out.

Allianz mentioned that it is “actively encouraging” all of its employees to receive the vaccine and is offering flexible work options to attend their appointment during work hours. A spokesman said that they have “also registered their interest with Australian Vaccine Services to participate in a corporate vaccination program”.

Allianz has recently introduced a pandemic leave policy giving their employees access to paid leave if they have exhausted all of their normal leave and are unable to work due to COVID related restrictions.

IAG introduced measures, in June, to support their employees, including leave to attend COVID-19 vaccination appointments. A spokesman mentioned that “employees can take a half day paid leave for each of their vaccination appointments”.

Many companies are jumping on the bandwagon including Broker Marsh who says it is encouraging all eligible staff to get vaccinated, while Willis Towers Watson believes vaccination protects “family, friends and colleagues”.

The Head of Australasia and Head of Corporate Risk and Broking Simon Weaver says “WTW is strongly encouraging all colleagues to get vaccinated once eligible”. Recognising the importance of slowing COVID-19 cases. Understanding the difficulty to secure appointments they are offering flexibility for employees to attend appointments.

Credit

Insurance News – https://www.insurancenews.com.au/daily/get-jabbed-insurers-join-covid-vaccination-push

Estimated ASIC Funding Levy Tops $24.7 Million

July 29, 2021

by ED Admin with No Comment blog

The estimated levy recovered by The Australian Securities and Investment Commission (ASIC) totals $24.7 million. These funds will be recovered from the general and life insurance industries to cover the cost of regulating the sectors in the last financial year. $16.1 million is projected to come from the cost recoveries levy whilst the remaining $8.5 will be obtained from statutory levies.

It is projected that overall funding levies of $359.6 million will be collected from the financial services sector to support ASIC’s 2020/21 regulatory costs. ASIC released these estimates last week as part of their draft Cost Recovery Implementation Statement, seeking feedback on how these funds will be recovered as industry levies under the industry funding model.

The corporate regulator expects to publish the final levies in December and invoices to be issued in January. ASIC has created a draft cost recovery statement annually since the government introduced the industry funding model for the corporate regulator in 2016.

The insurance focus areas for the 2020/21 financial year include claim handling, mis-selling, hardship assistance, small business insurance cover, Hayne royal commission reforms and unfair contract terms review.

In the draft statement, which can be found here, the ASIC says “we continue to consult and develop information for industry on our expectations of fair and transparent behaviour. We will review specific market sectors and products, we will take regulatory action…where necessary”.

August 13th is the closing date for submissions.

Credit:

ASIC Australian Securities & Investments Commission – https://asic.gov.au/

Insurance News – https://www.insurancenews.com.au/

What is Motor Insurance

Accidental Damage

If You’re at Fault

Theft

Final Notes

Credits:

Employment Practice Liability

Directors and Officers Liability

Crime

Statutory Liability

Defence Costs

Business Interruption Losses

Cyber Extortion

Electronic Data Replacement

Security and Privacy Liability

Legal Costs

Electronic Media Liability

Crisis Management Expenses

Notification and Monitoring Expenses

Why is insurance affordability so important?

Reviews into insurance affordability

Common Cyber Threats

Malicious Software (Malware)

Email Scams (Phishing)

Ransomware

Ways To Protect Yourself

Automatic Updates

Automatic Backups

Multi-Factor Authentication

Access Control

Passphrases

Employee Training

Keep Your Business Safe

OUR NETWORK

BUSINESS INSURANCE CONSULTING PTY LTD

QUICK LINKS

Important Note