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July-August 2014

Welcome message _____________________________________________

Welcome to the July-August 2014 issue of Insurance Insight.

I’d like to wish all of our valued clients a happy and profitable new

financial year, and to thank you for relying on EBM to help

safeguard your business.

In this issue, we review some strategies which could help get your

business off to a good start this financial year and farewell veteran

Western Australian broker Lee Young – who is set to retire after

over 40 years in the industry.

I hope you enjoy this edition of Insurance Insight and look forward to

keeping you up-to-date with EBM and industry news.

Jeff Adams

Managing Director

If you wish to opt-out of receiving future newsletters simply click on the link at

the bottom of this email.

News in brief _____________________________________________

Experts sound warning for "Uber" users

The Insurance Council of Australia has warned that

Australians who are considering using “Uber” – the

new mobile phone app that connects private

drivers with fee-paying passengers – need to be

aware of a “high level of uncertainty” about how

insurance policies might respond in the event of an

accident.

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Hospitality industry concerned over credit card changes

Most of Australia’s 800,000 point of sale payment terminals will require a PIN number, rather than a

signature, to authorise credit card payments from 1 August 2014. The change is of particular concern to the

hospitality industry, which fears it will become more difficult for customers paying by card to leave a tip

because electronic terminals do not usually prompt for tips to be added in the way traditional paper-based

systems do.

German World Cup team valued at over $1 Billion

In mid-June, Lloyd’s of London correctly predicted Germany would win the World Cup – because its

players had the highest combined insurance value at more than a billion dollars. However Lloyd’s

predictions on the placegetters failed to come to pass.

False billing scams on the rise _____________________________________________

Almost 3700 small businesses reported

false billing scam attempts to the

Australian Competition and

The Consumer Commission last year – a

rise of 45 per cent on 2012. However

reported losses, totalling $725,000, did not

increase to the same extent, suggesting

businesses may become more adept at

avoiding the scams.

False billing schemes are attempts to trick

businesses into paying for unwanted

services such as advertising, web listings

or directories, office supplies or domain name renewal.

A common example is the “Yellow Pages” business directory scam where business owners are tricked into

joining an unrelated online business directory – instead of the genuine Sensis directory – by unauthorised

use of the “walking fingers” logo and the similar name “Yellow Page”.

The commission recommended that businesses have a clearly defined process for verifying and paying

accounts, and avoid allowing too many staff to pay invoices or make orders.

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Business bookshelf: Get the jump on FY2015

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The Australian Institute of Company Directors is usually associated with the big end of town, but it has produced a free white paper packed with tips for smaller enterprises in collaboration with Dynamic Business. Its first piece of advice is to recruit a two or

three person advisory board – not

necessarily paid – to help keep you focused

on long-term planning and to offer help

and advice.

While many heads can be wiser than one,

it’s probably also worth speaking to your

insurance broker to making sure your

volunteer advisors are not exposed to unnecessary risk as a result.

The Institute’s other tips include:

Move quickly to innovate, with lots of small risks spread over a number of initiatives.

Stay lean in terms of overheads even if business is good.

Take marketing, including social media, seriously – and have a plan.

Keep up with change via innovation and collaboration, while avoiding groupthink and maintain focus on those fundamentals which remain constant.

Find productivity gains by deciding where you can and can’t compete, investigating innovation in the whole supply chain and even be prepared to “cannibalise” parts of your existing business.

Dream big – Warren Buffett’s slow and steady approach yielded strong results over time.

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EBM pays tribute to 40 years of service _____________________________________________ Insurance industry leader Lee Young will retire later this year after more than 40 years as a trusted advisor to Western Australia’s business community. EBM Insurance Brokers Managing Director, Jeff Adams, thanked Lee for his service and wished him all the best for the future. “Lee has that special combination of people skills, business acumen and technical knowledge that makes for a good broker. I know there are clients out there who not only regard him as their trusted business adviser, but as a friend,” he said. Lee will pass the baton to recently-appointed Executive Account Manager Craig Goodwin, an underwriting specialist with 20 years’ experience, whose expert advice and support will be available to EBM’s valued clients. Jeff said that even as the risks facing businesses evolve, EBM’s tailored approach would remain the same. “EBM’s success over many years has been based on its ability to offer client-focused advice working on an open panel of insurers here and overseas for the greatest possible choice and value. With the support of the entire team, Craig will continue that tradition,” he said.

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WorkCover WA changes _____________________________________________ New “Certificates of Capacity” have been introduced in Western Australia by WorkCover WA. EBM Injury Management Manager, Amanda Tulloch, said the new certificates – which came into use from 1 July 2014 – provide greater clarity to all key parties when managing injury and return-to-work processes.

According to WorkCover WA, the certificates will:

help GPs focus on what the worker can do;

optimise communication of information, supporting a return to work; and

help insurers make more informed decisions by helping GPs articulate the workers’ progress and needs.

The start of the new financial year also saw the annual increase in prescribed entitlements available to injured workers. The weekly compensation gross rate of pay is now capped at $2,594.20. Legislation governing workers’ compensation in WA is also under review with a number changes recommended. The changes have been tabled in Parliament with final submissions closing on 31 July 2014. The proposed changes include amending the definition of a worker, the calculation of weekly compensation rates of pay and settlement pathways. Western Australian businesses use insurance firms approved by WorkCover WA to underwrite workers compensation obligations. EBM organises this cover for many clients and complements its service with the provision of an injury management team which is available to assist our clients. EBM’s injury management service:

examines new claims and provides advice on complex and/or sensitive matters;

supports the employer in ensuring a prompt and safe return to work;

reviews claims with a view to reducing risks – and future premiums;

documents and builds detailed cases to manage disputes;

monitors the performance of service providers (e.g. rehabilitation providers) engaged to ensure high quality outcomes and cost effective services;

assists with assessing medical reports, injury management issues and identifying claims that require a second medical opinion.

attends case conferences, settlement conferences, teleconferences and other meetings; and

assists with the review and development of internal Workers’ Compensation procedures. You can find lots of useful information for your business, regarding workers’ compensation obligations, on EBM’s website – scroll down and look for “Notice to WA Workers’ Compensation Clients” under “Downloads”.

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Congratulations Kris _____________________________________________ A young transport industry leader has spoken out in favour of proposed “chain of responsibility” regulations in Western Australia, after winning a scholarship to attend a major industry conference on EBM’s recommendation. The regulations, which are set to change before the end of the year, recognise the responsibilities of all parties in road transport – not just the driver and business owning the vehicle. The general manager of Clarkson Freightlines, Kris Clarkson, recently had the opportunity to discuss the issue first hand at the Australian Transport Association National Conference in Queensland. A founding member of Transafe WA, Kris was sponsored to attend after EBM successfully nominated him for a National Transport Insurance Young Leaders Scholarship. EBM Regional Manager, Owen Connolly, said Kris had learned the industry from the ground up, starting with helping out after school, and now managed the family business’s new Perth depot. EBM assists many firms in the transport industry with the unique and changing risks they face, using our specialised knowledge to determine the best risk minimisation strategy.

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Jesamine helps businesses through disaster ____________________________________________ The aftermath of a series of earthquakes in Christchurch, New Zealand, in 2010 and 2011 was a big challenge for Jesamine Shaw who guided her clients through extremely tough times. “Dealing with the anguish was challenging, but also rewarding,” she said. “There were people who had lost loved ones, their homes and their business premises. It was full on. “It was good going in to bat for clients who had lost everything and trying to put things right, and get their claims paid. We helped a lot.” Jesamine spent a decade working with a New Zealand brokerage, the last three exclusively working on earthquake claims, before she joined EBM as a Commercial Account Manager last year. “New Zealand’s South Islanders are a special breed. They just got on with what needed to be done. Christchurch is going to be amazing when they’ve finished rebuilding,” she said. “Businesses do need to be proactive and think about the worst case scenario but no-one is ever truly prepared for something like that. Some aspects of what happened in Christchurch were unprecedented.” Jesamine moved from green Palmerston North to Kalgoorlie about a year ago. She was attracted by the idea of a change for herself and her teenage daughter – and she had friends in the Western Australian town. She’s enjoying the move from managing claims for a brokerage to commercial insurance broking. “I love it. Every day brings something different, something new to learn, and someone new to meet. I’m a people person, so I enjoy getting out to see clients and having that personal contact. “Having a claims background is also good. I know what I’m talking about when I introduce a policy to a client. I know what can happen, and I can give examples.” Outside of work, Jesamine enjoys gardening, sewing and playing netball. She also devotes significant amounts of time ferrying her teenage daughter around town.

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Contact Us ____________________________________________ EBM Insurance Brokers, with offices in New South Wales, Victoria, Queensland and Western Australia, delivers local expertise combined with the national resources of one of Australia's largest insurance broking companies.

Email us at ebm@ebminsurance.com.au or contact a local broker who can help you determine your insurance needs. Call 1300 INSURE (1300 467 873) for your nearest office:

Sydney Level 4, 151 Castlereagh Street, Sydney New South Wales 2000 Melbourne Suite 4/651 Victoria Street, Abbotsford Victoria 3067 Perth Office 105 Outram Street, West Perth Western Australia 6005 Gold Coast Level 8/64 Marine Parade, Southport Queensland 4215 Bunbury 4 Victoria Street, Bunbury Western Australia 6230 Kalgoorlie 47-49 Boulder Road, Kalgoorlie Western Australia 6430 Geraldton 65A Forrest Street, Geraldton Western Australia 6530 Karratha Suite 122, The Pelago West Karratha Western Australia 6714 Sale 1/396 Raymond Street, Sale Victoria 3850 Important note: Our advice is provided for your general information and does not take into account your individual needs, you should read the respective insurers product disclosure statement which we can provide upon request before taking out cover.

All Enquiries: 1300 INSURE (1300 467 873) | ebm@ebminsurance.com.au | www.ebminsurance.com.au Sydney | Melbourne | Perth | Gold Coast | Bunbury | Kalgoorlie | Geraldton | Karratha | Sale Affiliated Offices: China, Hong Kong, Indonesia, Macau, Malaysia, Philippines, Singapore, Taiwan, Thailand, Lloyd’s at Coverholder Elkington Bishop Molineaux Insurance Brokers Pty Ltd | AFSLN 246986 | ABN 31 009 179 640 | Est 1975