Editor's Message
The trust cost of underinsurance
The FOFA reforms have been the talk of the sector over the past month. The possibility of wiping up to $1b in risk insurance commissions isn’t an attractive one, and could have major consequences.
However, there is little that the average broker can do on this one, bar sit it out and see what happens. NIBA, of course, continues to lobby government on your behalf.
There is something else that is estimated to be costing the industry significant amounts of money, however. And this is something that brokers can do something about – starting today. Underinsurance.
Around 80% of businesses in Australia are estimated to be at least 10% underinsured, and on page 32 we speak to a number of valuers, who reveal the true extent of this problem.
Some of the examples of underinsurance are staggering, with some businesses underinsured by up to 567%. Just how much is underinsurance costing the industry? How much money are you missing out on? Encouraging your top ten clients to get their assets revalued could be the most profitable thing you do this year.
Elsewhere in this issue, we catch up with two former international sportsmen who are now plying their trade in the insurance industry. Both Mark Coyne and Murray Bennett have achieved what the majority of us can only dream of – representing their country at a sport they love. We’ve asked Mark and Murray to relive their proudest sporting moments, and reveal the sporting lessons that they’ve been able to transfer to the world of business.
Of course, since the last issue, NIBA has announced that Dallas Booth is to take over as CEO on 1 July. On page 6 we speak to Mr Booth about his career so far, and we wish him every success in filling Noel Pettersen’s rather large shoes.
Enjoy the issue, and if you have any comments, responses or feedback, please do get in touch.
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