High-calibre speakers for Sunny Side Up

AILA President's message – Melanie Quixley

It’s on 11 to 13 September at the Gold Coast Convention and Exhibition Centre, Broadbeach, Queensland, with the theme “Sunny Side Up”.

The conference will explore issues that will shape the insurance market in the future, and how the industry should respond.

The program includes perspectives from a diverse range of insurance industry specialists on a range of pertinent topics.

The organising committee has amassed many high-calibre speakers, with the keynote address presented by the Honourable Chief Justice Helen Bowskill of the Queensland Supreme Court.

Resolve has talked with several speakers to give you a sneak peek at what you can expect to hear during the conference.

Two lawyers will suggest insurers should carefully review the questions they ask potential insureds in light of the 2021 changes to the Insurance Contracts Act.

Barrister Ken Horsley and Minter Ellison Partner Katie Clark will examine the impact the revised duty of disclosure for consumer insurance contracts has had since it came into force in October 2021.

Ken says because the revised legislation gives insureds more “wriggle room” on what information they disclose on proposal or renewal forms, insurers must be “particular and precise” with the questions they ask.

He and Katie say some smaller insurers, particularly underwriting agencies, may be insufficiently focused on reviewing the questions they ask and may therefore see declined claims overturned.

Ken warns that some proposal forms are “still woolly”.

Katie says simplifying the disclosure regime “makes sense and fits with the unfair contract terms legislation”, but there has been no major litigation to give the industry guidance on how courts are likely to interpret the changes.
The pair will review examples of insurers’ proposal questions – good and bad – during their presentation.

Digitisation improves CX

A panel session will tell delegates that digitisation and relationship building are keys to improving customer experience in the insurance industry.

Nicola Mason, National General Lines Claims Leader at Willis Towers Watson, says communication is vital and the industry must do more to educate the public about the good news stories in insurance to help overcome the industry’s poor reputation.

“It’s not the media’s fault, the industry must put its hand up and call out what’s good. Fewer than 5% of claims go wrong, but they’re the ones you hear about,” she says.

Pete Diskin, Chief Client Officer and Deputy CEO with Gallagher Bassett (GB), says the third-party claims administrator is embracing digital technology and artificial intelligence to enhance customer relationships.

GB uses customer relationship management tools to ensure engagement is at the level each client expects. “That enables us to provide regular insights on claims costs and emerging risks so clients can make informed decisions,” he says.

Dallas Campbell, Suncorp Senior Lawyer and Leader for Legal Injury, says Suncorp, too, is embracing technology with a new digital platform to be rolled out soon.

“Digitisation will simplify and grow the way insurance products are purchased and improve claims response times aimed at building futures and protecting what matters,” Dallas says.

Nicola also backs greater use of digital technology. “People regard insurance as a necessary evil. They don’t understand insurance or how underwriters, brokers, loss adjusters and lawyers all pull together to make it happen.”

She’ll tell delegates the industry’s reputation makes it difficult to recruit, despite insurance being a good, long-term career path. She suggests brokers could arrange career expos and go to schools and universities to encourage greater industry participation.

Climate change opportunities

Sharanjit Paddam, Principal at Finity, ANZIIF insurance leader of the year in 2022, and 2023 actuary of the year, will tell delegates that climate change presents major risks for the insurance industry, but also opportunities.

He says climate change negatively affects home insurance affordability, but decarbonisation means the industry has new assets for which owners need insurance.

Sharanjit will outline the findings of the 2024 third annual report on home insurance affordability, prepared by Finity for the Actuaries Institute.

The 2023 report found one in eight households faced premiums of more than one month of household income, up from one in 10 in 2022. That meant insurance was likely beyond the financial reach of about 1.24 million Australian households, a rise of nearly 250,000 in just one year.

Sharanjit says: “Unless we take serious action on climate change, it will continue to drive up insurance premium costs, particularly for those living in disaster-prone regions.”

On a positive note, he says insurable assets are changing as homes and vehicles are electrified and that represents opportunities for insurers. As new industries develop, including significant investment in renewable energy, insurers must respond.

This is just a brief snapshot of thoughts from some of the speakers you will hear at the 2024 AILA National Conference. You can read more about these presentations here.