Dear Prof. Allan, Thanks for all your recent information provided about Covid-19, and the effect it has on insurances. I do have a question which is not related to Covid-19, and never understand the reason behind it. Why is there an average clause on business insurances? I look forward to your response. Thanks, Amber [surname and email provided] The simple reason comes down to pricing. […]
The level of uninsured and under insurance is of increasing concern
2020 has certainly had a start many people will not forget in a hurry. While looking after bush fire claims, my own home and every other house in our street was smashed by hail. Both my children live in the same street and so we are all in the same boat. We also had 2 cars damaged; one a write off. What is of increasing […]
Understanding the penalty for under insurance #2
Last week I posted an article on why insurers have a penalty for co-insurance. I got this question following that post from someone who is not in the insurance industry but which comes up quite often after a claim. “So you are saying that if a commercial insurance policy is for example 500k and a policy typically gives the Insured a 20% tolerance factor (to […]
Under Declaring – You are now the insurer!
Yesterday I had one of those calls where you can feel the frustration and stress in the broker, where a long standing client is under attack by another broker who is simply selling on price and stripping away the years of hard work that the holding broker has put into the client. In this case, the attacking broker is advising the Insured to only declare […]
I fully support the review of Fire Service Levy in NZ
It was a nice way to end a tough week to read in InsuranceNEWS that the New Zealand Government is looking at alternatives to having the fire service levy heavily funded by insurance. There is absolutely no doubt that people buy less insurance when the price goes up. We saw it here in Victoria before the Black Saturday bush fires, in North Queensland due to […]
Changes to the New Zealand Residential Tenancies Act and to PolicyComparison in Australia on methamphetamines.
The Residential Tenancies Amendment Bill (No 2) has just passed the Select Committee stage of the New Zealand legislative process. The Bill will change the Residential Tenancies Act (1986) in ways that will affect general insurers in the following areas: clarifying the state of the law regarding tenants’ responsibility for careless damage to property, including insurers’ rights of recovery; requiring landlords to disclose information about their […]
Are fines imposed on SME’s for data breaches fair?
As from 23rd February 2018 legislation now requires that Australian businesses report data breaches. I have heard that there have already been an average of 10 notifications a week but this figure was on social media and I have not been able to verify the number. I appreciate that we all have a duty to protect the personal data of our customers and employees but I […]
The major risks facing business in 2018
Business Interruption, cyber attacks, and natural catastrophes are, not surprisingly to us in the industry, the leading business risks this year, according to more than 1,900 risk experts from 80 countries polled for the latest Allianz Risk Barometer. The survey by Allianz Global Corporate and Specialty reveals that cyber attacks and business interruption remain the leading two risks in Australia. What remains disappointing is that […]
NSW Government continue to bend the facts to hide their ineptitude.
Like all rate payers in New South Wales, I received this (image) flyer from the New South Wales Government on the emergency services levy. I cannot accept that deferring the levy is going to help those that are currently bearing the cost of funding the fire and emergency services. Fact 1: everyone in New South Wales benefits from having an efficient, well funded, well trained […]
Another broker angry at the NSW Government
I received this email last night and it mirrors many phone calls and emails I have received. “The NSW ESL Insurance Monitor has now gazetted a new Section 30 Notice which requires premium comparisons to be provided with renewal invitations and renewal schedules for residential property insurance in NSW from 1 July 2017.” At what point does the State Government pull their head in & […]