Veracity - May 2018 edition

By  Vero Insurance

Andrew Mair, EGM Intermediaries Suncorp

For some time, we’ve been hearing a lot of the business buzzword ‘disruption’. The term refers to the impact of new ideas and technologies and the unsettling changes they cause. It’s threatening because it challenges things as they are and implies re-programming the way we do things.

I prefer to put it more simply. ‘Disruption’ really means upsetting the apple cart. It is an interruption or change to the usual way a system, process or event works.

Maybe that’s why the concept leaves so many people feeling uncomfortable. Change impacts everyone. There is a familiarity in the way things are and any departure from this can have a destabilising effect.

According to a recent McKinsey and Company report*, “… business models are less durable than they used to be. The basic rules of the game for creating and capturing economic value were once fixed in place for years, even decades, as companies tried to execute the same business models better than their competitors did. But now, business models are subject to rapid displacement, disruption, and, in extreme cases, outright destruction.”

No wonder many business people are anxious. But then change is inevitable and the pace of innovation continues to accelerate.

Slow to react

Nowhere is disruption more keenly felt than in financial services. Let’s be honest – our industries have traditionally been slow to react to change. We can be our own worst enemy. Founded with rusted-on conservative principles, we tend to resist change with a passion.

But new technologies are impacting every part of our lives – from the multiple messages you wake to find on your smart phone to the daily doses of hi-tech news you ingest on your 4G curved-screen TV – the inputs are multiple and relentless.

It’s the same in business.

There is a constant raft of business innovations – like Artificial Intelligence which could bring real efficiencies to the way we do things, the Insurtechs who are seeding and harvesting new niche markets and the big data industry which is providing fresh insights into the customers we deal with.

You can call them ‘disruptions’ or just new ideas, but they affect our commercial lives.

It is impossible to ignore these powerful waves of change. Our industries may have been born conservative, but that philosophical stance has no place in the face of today’s dynamic realities. What we really need to do is learn how to cope with change.

‘Round up the wagons’

So how can we adapt to these new technologies and learn how to live with them? One answer is to ‘round up the wagons’

Remember the old Western movies? When the wagon train was under attack, the order would go out to form a circle with the wagons so everyone could better defend themselves.

Vero’s recently released SME Insurance Index** research study tells us that this is just what 58% of SMEs are now doing and this trend has grown by 11% in the last year! Business people are collaborating with their peers – associates, friends and relatives – and increasingly relying on them for advice. All this is happening in an era when more information than ever is freely available online.

Clearly, there’s a lot of comfort to be gained by rounding up the wagons and learning from each other’s experiences.

This was also supported by the Ernst and Young report in September 2017 which told us that intermediaries who collaborate with insurers and have a good understanding of their strategy, gain in confidence and are less concerned about the impact of changes in customer behaviour.

Collaboration deals with new ideas

Mr Carl Wocke, Managing Director of Merlynn Intelligence Technologies, delivered a paper on Artificial Intelligence (AI) at Suncorp’s Synergy event last year.

He discussed the impact that AI could have on our industries and said; “The next major evolution is therefore very likely to be the ability for AI to acknowledge additional fuel sources – that of the human expert. The ability to not only learn from data but to learn from people…from experts. Systems that think like people.”

This concept fascinated many of the delegates who had taken time out to attend our seminar. AI suggests the replacement of many tasks that are now tackled manually with automated processing.

But the concept gained real momentum when delegates collaborated and began exchanging their views on its impact. These robust conversations between a mix of intermediaries from banking, commercial insurance, life and wealth produced a healthy new understanding of AI. It was suddenly less of a threat and delegates could plan strategies for adapting to this new technology.

A report from PwC*** had told us that combining solutions from banking, life and general insurance was a trend that our end customers would favour. Participants in our Synergy events were happy sharing of ideas from their respective industry sectors. While each had their own challenges, it was interesting to hear how much they had in common.

Following on the success of Synergy, we are planning a second series of seminars shortly.

Is collaboration the key?

Whether we label the contemporary challenges impacting all of us as disruption, innovation or simply change – it seems the most natural way to help us cope with it all is to take a little time, round-up the wagons and collaborate. Seek the help of your peers – after all, they are in the same boat as you.

Exchanging thoughts, reactions and experiences between industry sectors has been proven to explain, comfort and reassure us.

Today, we are assaulted by more new ideas, stimulus material and advice than ever before in mankind’s history on this planet. There’s a lot of good new thinking to be found out there and there’s plenty of bad ideas to reject.

That’s even more reason to put our heads together and share our experiences. Collaboration is the key – it’s a sure-fire way to help you cope with the onslaught.

*de Jong and van Dijk, McKinsey & Company 2015

**Vero SME Insurance Index 2018

***PwC 2017 report


Enhanced Equipment Breakdown cover launched

Today, your clients' business equipment is more important than ever. As technology develops and equipment becomes even more sophisticated – their exposures grow even larger!

Recognising this, Vero has announced significant new covers and removed exclusions in their new, enhanced Equipment Breakdown policy.


Is your business missing something?

That’s the question Vero will be asking business owners throughout May and June as we give them the opportunity to ‘fill in the missing piece’ in their business with a $20,000 grant.  

A common challenge for many SMEs is finding that extra bit of cash necessary to make key improvements to their business so they can stay on their path to success. This will be the fifth cash grant Vero has awarded to business owners in the past 3 years.

Vero customers who purchase or renew selected SME Package policies between 30 April and 30 June 2018 and enter their details online at vero.com.au, will be eligible to win. Please make your clients aware of this great opportunity and contact your Vero Representative if you have any questions. Or, head straight to the competition to find out more.


Vero database records large commercial property losses

Work recording Commercial Property Losses has been ongoing since 2012 and Vero took custody of the database in 2016. 

It was designed to improve underwriter data and insights into large non-natural event losses in the Australian market. Large single event fires are a significant feature of losses in Australian with the most recent examples being the Thomas Foods fire in South Australia in January 2018 and the Sunpork factory fire in Queensland in November 2016. 

Vero now tracks over 500 large commercial fires around the country each year.

While the Insurance Statistics Australia database on commercial property losses provides statistics, the Vero database offers more.

What does the Vero database provide?

Our database records detail on individual large losses to property that are not related to natural events. The primary cause of loss is fire and the dataset includes the date, location and occupation of the loss.

Where possible, it adds the cause of loss, insured name, a print article and other details. Improvements in technology now make it easier to source this information.

Vero’s is the only known national database of commercial property fires. We list information from a wide variety of sources including news feeds, fire brigades, adjusters, our own claims data and market intel.

We encourage staff and clients to send any information they have to uwintel@suncorp.com.au.

What have we learned

The data not only provides better insights for our underwriting of risk, but also has a broader audience with insurance brokers, risk professionals and clients using the insights to drive risk management conversations within their businesses.

We encourage our broker partners to engage with their Vero contacts to see how the database can help you.

2017 Commercial Property Fire Database


Hands typing on laptop

Have you accessed OneTouch claims yet?

OneTouch claims are lodged, paid and finalised at the very first touch point between the broker and Vero. This now means that SME and Property claims up to $10,000 can be processed in as little as 15 minutes and less than a day overall.

What we need from you

All we require when lodging your claim is the complete information outlined here; including EFT details - Lodgement is easy!

  • Simply call 1300 888 073 to lodge your claim over the phone
  • Complete the OneTouch claim form, attach supporting documents and email lodgeclaim@vero.com.au.

For more information

Now you have Vero’s OneTouch claims working for you.


Updates to Letters of Authority and Letters of Appointment

Vero and GIO Workers Compensation have updated the terms for handling Letters of Authority to Review and Quote (LARQ) and Letters of Appointment (LOA) in-line with NIBA’s guidelines. These will ensure consistency in our approach to Intermediary partners and the market.

Key points:

  • An LARQ should be printed on client letterhead for a business policy. Information released on business policies will be limited to claims history only.
  • An LOA should be printed on client letterhead for a business policy. Any client who does not have a letterhead must acknowledge the fact as follows:
    “Whilst this Letter of Authority to Review and Quote/Letter of Appointment is not on any letterhead, I attest to its authenticity and intent in my capacity as [insert position].”
  • An LARQ/LOA is not likely to be acceptable if written on a broker’s letterhead.
  • An LOA must be presented within 90 days of the date it was signed by the client with the effective date of the change being on or after the date it was signed. We will honour the LOA effective date.
  • To protect the interest of the previous broker, we will allow them 2 business days to confirm with the client before the change is made:
    • When contacting the previous broker to advise of the appointment, we will not share details of the newly appointed broker 
    • To withdraw the LOA, the previous broker will require a new LOA to be signed by the client  
    • Note: for large Workers’ Compensation policies’ the LOA may be processed on the date of receipt so as not to prejudice the client at a WorkCover or claims level
  • Workers Compensation only – the previous broker is responsible for collection of actual wages for the completed period of insurance and is also entitled to any additional commission payable on extra premiums or clawback on return premiums. Any arrangements outside of this are subject to senior internal approval.
  • We may refuse to quote an opposing broker if we already hold the business.
  • Commission will be managed in accordance with NIBA’s guidelines.

More information can be found on NIBA’s website.


RM Advancer nominations are now open

RM Advancer is Australia's premier risk management awards program, recognising our clients for outstanding performance in risk management. The event showcases the risk management achievements of Vero and GIO Workers Compensation clients and their brokers. Now in its thirteenth year, these prestigious awards are open to small to medium enterprises (SMEs) as well as large organisations.

Nominations are now open!

To submit a nomination or to find out more, visit RM Advancer.


Make the most of your grand adventure Adam!

Adam Ware

Vero wishes our 2017 Warren Tickle Award winner, Adam Ware of BJS Insurance, the very best of experiences on his up-coming European adventure.

Adam leaves Melbourne on 13 May for Manchester, UK where he will attend the British Insurance Brokers association (BIBA) annual conference. He will also spend valuable time with a local brokerage.

Next on the agenda is London where he will participate in the Lloyds GDP Program. We hope he enjoys every aspect of this wonderful learning experience.

Have a great trip Adam – you’ve earnt it!


Find a broker viewed on mobile

First impressions count

Last month, Vero launched its new website – the first intermediary Suncorp brand to have its public facing website digitally improved.

The site can be used easily from any device, is simple to navigate with claims information, policy documents and contacts pages available at your fingertips.  

There is a new articles section and a number of our product pages have been enhanced.

We’re also excited about the 'Find a broker' tool helping customers connect with brokers via this new feature.

Take a look!


Why you really shouldn’t use your mobile phone while driving

This month’s RM Insight considers the potentially dangerous practice of using a hand held mobile phone whilst driving a motor vehicle.

Vero RM Insight newsletter article – Mobile phone usage