Roll of Honour 2007
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General Insurance Company of the Year
QBE Insurance (Australia) Limited
QBE Insurance (Australia) Limited (QBE) has been awarded the General Insurance Company of the Year award, recognising its vision to be Australia’s leading insurer.
QBE achieved exceptional underwriting results in 2006 including combined operating ratio of 82.9%, insurance profit to net earned premium of 24.7% and gross written premium up 2% (from 2005). QBE’s success is evident through its strong balance sheet, technical underwriting skills and proven claims management expertise.
However, QBE are not resting on their laurels. QBE constantly challenges itself to grow its product and service offering and develop ever stronger relationships with business partners and customers. QBE never stop thinking about what will make them first choice.
A major focus for QBE in 2006 was on “Building Smarter Partnerships” with its intermediary customers. By partnering with key customers, QBE identify and pursue opportunities for mutual
business success.
Judges were impressed with the results from QBE’s customer satisfaction surveys which found that 76% of intermediaries were ‘very satisfied’ or ‘satisfied’ with the service they receive from
QBE. Despite strong results QBE uses the feedback to continually enhance their world-class products and services.
QBE prides itself on responsiveness to customer needs, evident through the launch of @QBEConnect and QBE’s quick response to an Egyptian bus crash involving QBE policyholders. 24 hours after the crash, QBE dispatched a medical team to the region which was responsible for the welfare of 62 people, including relatives of injured passengers.
The unique QBE Connect approach to Workers Compensation was enhanced in 2006 with the launch of @QBEConnect, an online claims reporting and analysis tool. @QBEConnect provides employers and intermediaries access to claims and analysis in real time, enabling them to respond faster to their business and client needs.
QBE encourages innovative thinking amongst staff as it constantly seeks new and better ways of doing business. QBE broke new ground in March 2006, with the launch of its new liability insurance package, PURPL. It combines public, product and professional liability in an all-in-one package to manage the increasing risks and compliance demands facing business.
PURPL offers six types of liability insurance in one policy with one insurer, one quote, one transaction, one claims process and one renewal application. In 2006, just under 800 new policies were written and PURPL achieved a gross premium income of nearly A$10 million.
QBE enforces the highest level of professional standards and quality of service from its people. Its strong focus on training and education means staff are ‘specialists’ with a deep understanding of the industry. In 2006, QBE invested in more than 70,000 hours of formal training.
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Life Insurance Company of the Year
CommInsure
CommInsure has demonstrated yet again that it is a leader in the Australian life Insurance industry.
The judges were highly impressed with CommInsure’s aim to protect the lifestyles of ordinary Australians. As the insurance arm of the Commonwealth Bank, CommInsure are well placed to do this due to its existing relationship with millions of Australians.
CommInsure’s objective is to cover more Australians by making personal risk insurance more accessible and affordable. To do this, CommInsure regularly survey customer needs, market trends, competitive offerings and legislative changes. As many Australians aren’t aware that they need life insurance, education is a key component of the company’s marketing.
CommInsure’s products are driven by the people who buy and sell them. By talking to customers and advisers CommInsure develop product innovations that respond directly to their needs. Whether it’s simpler processes, broader conditions or new commission structures, CommInsure is always finding ways to improve its products and processes.
In 2006 CommInsure made customer retention a top priority and built strategies and product features to develop customer loyalty. One result of this, the Loyalty Bonus Benefit, will provide about $1.2 billion of free cover from October 2007.
CommInsure take its fiscal responsibilities very seriously. Its riskbased capital approach and reinsurance model consider a multitude of risks to determine the capital needed to support its products. According to CommInsure, customer service is what it all comes down to in the end, and in 2006 it reduced its claims case load by 20% to less than 45 claims per assessor. This balance between productivity and quality constitutes industry-leading practice.
For CommInsure, 2006 was a year replete with examples of product innovation and service improvements that enabled the company to achieve its planned objectives. CommInsure believe
that it is this philosophy that has built them up to where they are now, and that it will amply reward their advisers and customers in the years to come.
The judges were impressed with CommInsure’s industry leadership, striving to educate Australians on the need for life insurance to protect themselves and their families. CommInsure run two major marketing campaigns every year, containing significant public awareness and educational components. CommInsure has also joined IFSA to execute a protection gap strategic plan addressing Australia’s $1.6 trillion underinsurance crisis.
In 2006, the Group Risk team retained 95% of clients, despite several major clients’ renewals coinciding. In the light of this, CommInsure realised that there was a need to improve customer retention overall so created a Strategy & Business Development team specifically to devise strategies for customer retention, performance and feedback, growth opportunities and innovation.
Sponsored by
Broker of the Year
Aon
Impressing the judging panel with its holistic approach to excellence in business and service, Aon has been recognised as Broker of the Year.
The General Manager - Group Insurance of major national retail company said that his company’s decision to move to Aon in 2006 was based on their Corporate Service Methodology, encompassing the provision of superior process, strategic advice and proactive service delivery.
Aon’s entrepreneurial spirit gives it the flexibility to deliver true innovation. It has lead the industry in cover development for Australian poultry farmers. With local insurers no longer offering a solution to avian flu outbreak, Aon Australia drew on its global expertise to source an insurer providing a customised solution for Aon’s Australian clients. Aon is also responding to the market’s increasing demand for weather risk products, including facilitating cover for an energy broker in late 2006.
Aon’s thought leadership credentials include its Boardroom Series of intimate and high-level discussion forums that provide executives with the opportunity to develop their understanding of current issues and share their views on them.
Aon’s facilitation of industry research and knowledge-sharing is evident though their Australasian Risk Management and Total Cost of Insurable Risk Survey, the market leading study into the trends and costs associated with managing and financing risk.
The relevance and success of this survey has been replicated globally by Aon’s other international arms. Further dissemination of knowledge is also done through the creation of a national think tank to review the effectiveness of current insurance practices to meet the future needs of its clients and the development of The Analyst magazine, which provides clients with insights and commentary on insurance, reinsurance and risk, among other things.
Aon’s commitment to training and development has seen it implement a number of key initiatives throughout the previous year, including its own Learning Management System, ‘mylearning@aon’ as well as a specialist 4 day training program to assist staff in exceptional client service and a buddy program for its financial advisors.
Aon’s support for charities, including its own Aon Foundation, is commendable and part of the company’s wider community support which also sees it present the Aon Volunteer Recognition Awards to staff on a monthly and annual basis.
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Reinsurance Company of the Year
Munich Re Australasia
Munich Re has been awarded the 2007 Reinsurance Company of the year award recognising the company’s dedication to providing reinsurance solutions and service to the Australasian Life and Non-Life insurance markets for over 50 years and to global markets for 127 years.
Not being satisfied with simply maintaining the status quo, the Munich Re Group has recently announced a major global initiative “Changing Gear”. The focus of “Changing Gear” is to ensure that Munich Re installs state-of-the-art risk management at all levels, provides superior returns for shareholders, has the complete confidence of capital markets and that staff have the highest levels of competence and provide the best solutions for clients.
For Munich Re Australia this involves adopting a proactive stance on identifying new and emerging risks and bringing these to the attention of the market, maintaining a regional Life and Non-Life operation with offices in Sydney, Melbourne, Auckland, Perth and Brisbane, having a strong local mandate and the flexibility to work closely with clients to develop and grow their business, continuing an education programme to ensure staff have the leadership and technical skills required to provide clients with the highest level of professional service and a commitment to risk management practices that exceed minimum regulatory requirements.
Judges were impressed with Munich Re’s focus on turning risk into value. Munich Re Australasia effectively responds to business partners needs and establishes long term relationships leading to mutual benefits.
Munich Re holds regular strategy meetings with clients to look beyond their immediate needs to develop clients business. In partnership with Allianz, Munich Re has introduced an electronic business processing system to assist clients transact new business. The joint solution provides Australasian life clients with a proven path to increased sales, reduced costs and higher levels of efficiency.
Munich Re is a market leader in challenging issues such as climate change. Munich Re’s Geo Research identified and highlighted global climate change and the associated risks over 30 years ago. Through its Geo Risks research Munich Re continues the tradition of providing information on natural hazards and protection measures backed by empirical scientific research and analysis.
Focusing on results ahead of growth, the Munich Re Group posted a record result for the third year in a row in 2006 and exceeded the return on risk-adjusted capital targets. This allowed the company to increase dividends and conclude a successful share buyback programme.
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Loss Adjuster of the Year
GAB Robins New Zealand Limited
Judges were impressed with GAB Robins NZ innovative and structured steps to address a significant challenge that is facing the insurance industry as a whole.
The pending retirement of a number of the acknowledged experts within the industry will leave a significant “knowledge gap” if effective steps are not taken to pass on this expertise.
Adding to this challenge is the change in attitude of the upcoming Generation “Y” to work. Research shows that they will be less inclined to remain in the same employment – or even the same industry – for much of their working lives.
GAB Robins’ most experienced adjusters used to lead every major loss. This often did little to impart knowledge to the new adjusters who were building their skill base. The company is now using these knowledgeable practitioners as “internal consultants” on major losses – the next generation of adjusters are taking the lead in the major losses with active mentoring from the “old guard”.
GAB Robins NZ have also rethought its recruitment strategy – choosing now to recruit individuals with existing professional qualifications and relevant skills. These trainees can be fast tracked into dealing with serious issues as they work under the guidance and coaching of senior experienced adjusters.
As a demonstration of this fresh approach some of the new recruits into the company in 2006 / 2007 hold the following tertiary qualifications: Mechanical Engineering, Marine Engineering,
Quantity surveying, Chartered Chemist, Aeronautical Engineer and Trading Standards.
The company’s internal audit (review) of every adjuster’s files identifies training needs that become the focus for ongoing staff development at an individual and team level.
In 2007 the company has budgeted over $500,000 for the ongoing development of training and quality needs. With the support of formal training offered by the Institute and other organisations, targeted internal training and recruitment strategies, GAB Robins NZ is in a strong position to be able to meet the future requirements of the industry.
“Knowledge luncheons” are run within the organisation’s Specialist Commercial Adjusting team. At these luncheons specialists share their experience in a particular area of expertise with other adjusters.
GAB Robins NZ are committed to improving the insurance experience of its team. In any one examination cycle there will be a number of GAB Robins staff enhancing their skills by sitting examinations of the Institute.
GAB Robins NZ also encourage people to actively participate in the Institute’s CIP Programme and support staff attending conferences and events arranged by the Institute and other professional bodies.
Each year GAB Robins NZ handles in excess of 50,000 claims. The fact that this is achieved without significant dispute is a tribute to the experience and expertise of GAB Robins’ people and the
insurers who they work for.
Sponsored by
Risk Practitioner/Team of the Year
Guild Risk Services
In recognition of a year which saw a Risk Management culture further entrenched into business, Guild Risk Services is the Risk Team of the Year.
A division of the largest insurer of Australian allied healthcare professionals, Guild Risk Services (GRS) works with professions such as pharmacists, dentists, chiropractors, physiotherapists, childcare centres, aged care facilities veterinarians and the community sector.
Leading the way with its dedication to education and the implementation of risk awareness initiaves, GRS has been a driving force amongst its peers through initiatives and activities such as the establishment of risk management committees with key professions; its flagship GuildWatch publications; regular articles in over 50 professional journals and the online risk management tool RiskMASTER. GRS is also active in the Pharmacy Pandemic Working Group and the Insurance Council of Australia’s Strategic Risk Working Group.
GRS has embarked on a business and communications plan to educate its group and its customers and assist them in reducing profession-specific risk exposures. This is being carried out through changing business behaviours within the group; positioning risk management services as the core value-add to its insurance offer; providing education and awareness services; the building of a sophisticated risk database based on the ASNZS/4360 standard; and working closely with professional associations to develop targeted risk management messages addressing the individual needs of specific groups.
An online risk assessment tool, RiskMASTER, has also been developed and launched, accompanied by ‘GuildWatch for Associations’. An interactive tool, RiskMASTER allows its customers to consider and assess how they manage risk. Their responses to questions trigger related risk management messages and drive the provision of continuing professional development through profession-specific modules. GuildWatch, a series of publications developed for specific professions, has been further expanded with the addition of ‘GuildWatch for associations’, which addresses the high level risk faced by an association and introduces themes to challenge the association’s approach to the management of risk.
Sponsored by
Premium Funder of the Year
Pacific Premium Funding
A strong focus on retaining customer loyalty has gone a long way to helping Pacific Premium Funding win the award for Premium Funder of the Year.
By its own admission, 2006 was a tough and challenging year for all premium funders. In spite of this and through sheer hard work and a commitment to ongoing dialogue with its customers, Pacific achieved a growth in loan numbers of 5%, while simultaneously reducing operating costs, and a decrease in debt from .1% of GWP to 0.05%, compared to an industry average of around 0.3%.
A major achievement of 2006 was Pacific’s successful tender for the Austbrokers scheme, for which it competed against seven competitors. At year’s end, Pacific had increased GWP volume
with Austbrokers by 150% on the previous year’s results and had exceeded stretch targets for the period.
Pacific’s ‘Ask the Customer’ program obtains and acts upon feedback from intermediaries on a continuous basis. The program includes quantifying customer loyalty through measuring the Net
Promoter Score, a series of interviews and surveys seeking feedback on the three biggest business challenges facing intermediaries.
The knowledge and market awareness of Pacific is shared with the industry and its clients at industry conferences and seminars. More impressive however, is the company’s unique intermediary seminars which have provided over 1,000 education hours for the market in
the twelve months of 2006.
Technological savvy, Pacific’s pride at being informative and responsive is another jewel in the crown. In the qualifying period, the company introduced ‘Perpetual Renewal’, a quick and easy facility to renew policies; real-time announcements on its web application ‘EDGE’, providing timely communications to clients; and the development of interactive user guidelines demonstrating the benefits of the applications. Marked increases in EDGE quotes and users in recent times have provided a solid endorsement of Pacific’s IT strategy to keep apace of intermediary needs.
Pacific is committed to servicing regional areas and has offices in Townsville, Cairns, Newcastle, the Sunshine Coast, Canberra and Echuca.
Sponsored by
Service Provider to the Insurance Industry
Finity Consulting Pty Limited
Actuarial and insurance consulting company Finity Consulting has been named Service Provider to the Insurance Industry.
All of Finity’s consulting staff are general insurance specialists, with its fifteen person Principal group averaging over twenty years industry experience, an average twelve of which are with Finity and its predecessor companies.
Finity’s leadership and contribution to the insurance industry is evident in its role as regular advisors to the Insurance Councils in both Australia and New Zealand on policy development and regulatory issues; senior staff serving as office-bearers and organisers for industry bodies including the Institute of Actuaries of Australia (IAA); providing speakers at industry conferences and seminars; running an annual conference for smaller and regional insurers to share knowledge and meet with government and industry bodies; and supporting young insurance professionals through promotion and support of the Peter Corrigan International Exchange Award.
Finity underpin their work with extensive research, divesting around 4,000 research hours across a range of projects over the course of 2006. Their research and data formed the basis of the book Creating Value in General Insurance – a guide for Directors, Executives and Managers, which gives a comprehensive overview of the value matrix and company drivers, useful for the increasing number of industry executives coming from non-insurance backgrounds. Other research reports have been published in leading industry publications and distributed across the wider Asia-
Pacific region.
The important issue of climate change and its particular importance to the insurance industry is another area in which Finity has lead the market. Their précis of important research in this arena identified issues that insurers in the region need to be aware of when developing their responses to the climate challenge.
Given the responsibility by APRA of preparing the first Financial Condition Report, Finity have had extensive involvement with regulated insurers and are the Approved Actuary (AA) for twentyeight of them. In an effort to further support in-house AAs, the company developed ‘Finity In-House Approved Actuary Support’, making keeping in touch with emerging issues and allowing for easier dissemination of their research material.
Finity continue to manage Insurance Statistics Australia Limited (ISA) on behalf of member companies, supporting the Insurance Council of Australia by supplying valuable background information to assist with industry advocacy.
Sponsored by
Law Firm/Practitioner of the Year
Minter Ellison
One of the largest insurance and corporate risk practices in Australasia, the Lawn Firm/Practitioner of the Year award has been presented to Minter Ellison.
With offices in all major Australian capitals as well as Auckland and Wellington, Minter Ellison’s commitment to leading the regional insurance law industry is unquestionable. The practice covers all aspects of insurance law, including corporate advisory, mergers and acquisitions, policy drafting, professional indemnity, directors and offices cover, medical negligence, public liability, asbestos, product liability, marine, property, life and disability, personal accident and personal lines. They also advise on specialist fields to corporate such as aviation, motoring, environment, construction, shipping, pharmaceutical and health.
Appointed as the claims manager for the South Australian Department of Health, Minter Ellison have overseen a decrease of 74% in new claims received, through early identification of incidents and proactive risk management. The department’s legal spend also decreased by 20% at the same time. Another appointment, as the sole provider to WorkCover Corporation of South Australia, has seen the average duration of disputes slashed from 410 days to 180 days, including matters that proceed to trial. In the same period, WorkCover’s legal spend has been reduced by around 60%.
Minter Ellison are active within the industry at all levels and through a large pro-bono caseload. They participated in the IFSA working party, helping to shape amendments to the Insurance Contracts Act, and through AFSA, working in conjunction with actuaries to draft the exemption for funeral benefits and other risk products from Anti-Money Laundering law. The firm’s practitioners also serve on the management committees of various industry membership bodies.
The practice’s industry involvement goes deeper than the advisory level, through its publication of the Insurance Contracts Act Handbook, now in its fifth edition, and by hosting and presenting at many industry events and conferences.
Professional standards of their team are maintained by Minter Ellison’s strong learning and ethical culture, which includes learning and development programs, leadership management
programs, supporting external continuing education and association memberships.
Minter Ellison are the only law firm globally participating in the Corporate Responsibility Index and achieved a silver ranking in 2006.
Sponsored by
Technological Innovation of the Year
Savant Virtual Insurer
Judges were impressed with the fully web-enabled SAVANT® Virtual Insurer which unlike generic IT solutions, was developed with the input of insurance executives with in-depth knowledge and a
thorough understanding of the insurance market.
Smart-Insurer (Australia) Pty Ltd was formed with the specific purpose of developing together with SAVANT® Systems International a system responding to the specific needs of the insurance industry and to distribute the product.
SAVANT® Virtual Insurer is a complete but modular Property and Casualty Insurance System built on the novel, innovative and proprietary SAVANT® artificial intelligence engine that has been ported to IBM Lotus Domino®, specifically chosen for its unsurpassed security features.
The artificial intelligence engine delivers unprecedented power, versatility and flexibility to the entire system that can be interfaced with existing insurers’ and/or re-insurers’ legacy systems, brokers’ and/or agents’ operational systems as well as external service providers’ information to manage insurance processes.
The point of differentiation from other systems is its unique function in enabling business managers to have full and immediate control over the insurance portfolio performance and to make necessary adjustments immediately with little or no IT programming required.
SAVANT® Virtual Insurer automatically enforces the business rules and underwriting guidelines in all aspects of the insurance operations and throughout the base of all internal and external users.
SAVANT® Virtual Insurer is currently used by Lumley General as its EDI solution and the connectivity to the Sunrise Exchange platform (Telstra e-business) has become available for use in February 2007. The application is also interfaced with Lumley’s legacy system providing a fully integrated end to end solution.
Existing contracts with the “big end of town” have helped to bring the solution to commercial success and terms of the existing contracts (configuration costs, licence fee and ongoing ASP fee as percentage of GWP) provide the basis for a highly profitable financial performance.
SAVANT® Virtual Insurer is designed for multiple currencies and multiple languages. It is easily configurable to any taxation system in the world. The full complexity of the Terrorism Insurance Act was implemented in a total of 3 working days in September 2003.
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Services to the Community Award
Ansvar Insurance
In 2006 Ansvar Insurance enjoyed 34 community partnerships with not-for-profit groups. Each group provides valuable support to improve and enrich the lives of our youth so that they may contribute positively to the community in which they live. Impressed by Ansvar’s active role in supporting a wide array of programs, especially its partnership with ChildSafe, the judges decided to award Ansvar with the Services to the Community award.
ChildSafe is a Safety Management System for organisations working with children and young people. The system brings together policy and practice across a spectrum of child safety issues; protection of children from abuse or harm, high quality risk management processes for activities involving children, and levels of responsibility and accountability for people within an organisation working with children.
Ansvar Insurance had been looking for a web-based solution to the issue of risk management for churches and other volunteer based organisations for more than three years.
A major concern for Ansvar Insurance is after the event. No matter how well risk is managed, it cannot be entirely removed, and Ansvar want clients to clearly document their duty of care, to a level which would stand up in court. A web-based tool assists in providing a clear audit trail.
Scripture Union, a highly respected Christian organisation mobilises thousands of volunteers each year to work in holiday programs, at camps, secondary and primary schools, through sports, recreation, outdoor education and school chaplaincy. Child safety is of prime importance to its reputation.
Ansvar Insurance and Scripture Union had been partnering on other initiatives, and were keen to support the development of ChildSafe as a web-based risk management tool.
In 2006 Ansvar Insurance provided a grant which assisted the creation of ChildSafe Online. It is currently in pilot stage, expected to go live within the next few months.
Not only providing the grant Ansvar also jointly hosted a series of functions in five state capitals where Ansvar Insurance invited key clients and ChildSafe provided a presentation on Child Safety. Ansvar and ChildSafe regularly meet to discuss the development of ChildSafe including the design and functionality of ChildSafe Online.
Support of ChildSafe fits with the vision and values of Ansvar Insurance. Ansvar is committed to allocating part of its profit to providing funds for community education projects.
ChildSafe provides a vital tool to not-for-profit organisations all over Australia and New Zealand, regardless of their size, to manage their volunteers in a professional way. Their slogan Safe People Safe Programs makes their objectives crystal clear.
Ansvar Insurance is providing its clients with access to a tool which will help them govern their own organisations with a greater confidence, minimise their risks and therefore reduce their insurance claims.
Sponsored by
Insurance Leader of the Year
Bob Buckley
Following a year in which he lead Wesfarmers Insurance Division (WID) to develop new platforms for service and growth, Bob Buckley has been named Insurance Leader of the Year.
Beginning his career with NZI over 40 years ago, Mr Buckley worked in a variety of locations, including Toowoomba, Adelaide, Darwin and Melbourne, as well as three years in London. Appointed as General Manager of Wesfarmers Federation Insurance in 1993, his vision and leadership have seen the original one direct insurer with premiums of $110 million grow and evolve into an autonomous division with three underwriting businesses with two brokers who control premiums in excess of $2.3 billion and employ over 3,000 people.
Mr Buckley led WID in 2006 to purchase two of the largest brokers in Australia and New Zealand – OAMPS in Australia and Crombie Lockwood in New Zealand. The acquisition of these two brokers was carried out with the Wesfarmers philosophy in mind – careful evaluation and considered integration.
Known for his straight-talking communication style, Mr Buckley is confident and at home when speaking with either brokers and agents on the road or regulators, investors and analysts. Described by his staff as ‘generous with his knowledge and time’, Mr Buckley’s managerial style of being accessible to all levels of management is balanced with ease against leaving appropriate operational distance.
With his career coming to an end, Mr Buckley went on the front foot to develop and harness the next generation of leaders for his company. He mentored several young executives in 2006 and after deciding that the time was right to end his long and illustrious career, began the search for his successor and brought them into the fold. Confident his choice was the best one for WID, Mr
Buckley announced his succession plans well ahead of his intended retirement. Such a planned and structured success is indeed a rarity in the industry and leaves Wesfarmers well-placed to continue their growth under a leader ready to take the helm.
2006 was a ground-breaking year for Bob Buckley and Wesfarmers Insurance Division. After careful planning and analysis, Mr Buckley drove two landmark acquisitions that will potentially have a profound effect on the industry for many years to come.
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