For businesses in the insurance space, 2022 saw challenges and opportunities coming harder and faster, arguably than ever before.
After two years, the COVID-19 pandemic finally released its grasp. After many years of a hard insurance market globally, some insurance areas showed signs of softening. The economy – especially the construction sector – appeared set for recovery and then contracted as inflation hit. Meanwhile, there was flooding across the east coast like never before, smothering insurers with claims. Major cyberattacks crippled Australian businesses and raised issues about the foundation of the insurance industry: personal data. Challenges like the unaffordability and unavailability of some coverages continued to plague consumers and industry stakeholders. Mergers and acquisitions by insurance companies went on into December. The highlights hitlist could go on.
In 2022, insurance firms also innovated and adapted. During the year, brokerages, underwriters and other insurance companies launched many new offerings, including in the intermediated space. Here are some of the innovations covered by Insurance Business during the past year:
“We have realigned our broker value proposition offering that enables easy access to decision makers across our underwriting, distribution and claims teams as well as valuable resources such as clear risk appetite guides,” said Anthony Pagano (pictured above), Vero’s head of distribution for commercial insurance.
Pagano said his firm, Suncorp’s primary intermediated insurance brand, had worked closely with brokers throughout the year.
“As a result of their feedback, we adopted the ‘You asked, we listened’ initiative and launched our new VeroEdge, a straight-through quote and bind platform for SME packages and commercial motor, making it quicker and easier for brokers to place business and recommend Vero to their clients,” he said.
In 2023, Vero will continue its NIBA YP Broker of the Year program which, Pagano said, is “a prestigious and highly regarded education academy” that has highlighted industry excellence for more than three decades.
“We will also deliver our Vero Learning Campus, Insightful Broker Series, SME Insurance Index, Future Ready You and Engage programs in 2023, which are all designed to upskill and elevate our brokers talent and capability in the ever-evolving insurance industry,” he said.
In June, Descartes Underwriting launched a parametric frost insurance product for local brokers and clients that it first developed for French vineyards.
“Parametric frost insurance for French vineyards was the first product Descartes offered after the founders identified a market niche,” said Sydney based Ben Qin, head of North Asia and Australia for Descartes.
Read more: Parametric frost insurance product launches
Qin said the product is “certainly” the first time parametric frost insurance has been offered so broadly in Australia to a such a wide range of agribusinesses. The other novel feature, he said, is the product’s use of on-site weather data rather than just BoM (Bureau of Meteorology) data that may not be as localised.
In July, for the first time in Australia, Marine Skippers Insurance launched, giving marine skippers their own dedicated insurance coverage.
“This is a standalone liability product for delivery and commercial skippers when they are in charge of vessels they do not own,” said Newcastle-based Nicholas Bedggood, director of sales and distribution for the offering.
Also in July, Johnny Marchant, managing director of School Fee Protect Insurance, discussed his new product with IB. His school fee protection coverage, he said, even for an expensive Sydney private school, would likely cost no more than $20 per month, per child.
“We can sell policies as of today,” said Marchant, who is a distributor using a Lockton license.
Apart from the financial side, Marchant said school fee insurance would allow school administrators to avoid having distressing conversations with parents whose money troubles could mean they have to take their children out of the school.
In November, FreightInsure, the Sydney insurtech, rolled out embedded goods-in-transit insurance. The firm expects brokers to be an important sales channel.
“As far as we know, we’re really the only ones in the market protecting freight itself rather than purchases,” said Simon Schwarz, co-founder and CEO. “We embed ourselves into the freight process and the freight booking process, rather than in the consumer purchase process.”
The year also saw many firms take the mental health of their employees more seriously. Also in November, Honan Insurance Group partnered with PukaUp to launch the Foundations of Wellbeing program. The program is designed to equip businesses and their employees with the tools and strategies to proactively manage their individual mental health and wellbeing.
Former North Melbourne and Sydney Swans AFL player Wayne Schwass founded PukaUp. Schwass has become a leading mental health advocate after speaking publicly about his own experiences with mental health conditions in 2006.
