QBE announced General Insurance Company of the Year

September 3rd, 2010
QBE has won the title of General Insurance Company of the Year at the 2010 Australia and New Zealand Insurance Industry Awards in Sydney.
Chief Executive Officer for QBE Australia Asia Pacific Vince McLenaghan said it was a great honour to be recognised among the industry’s finest: “To be conferred with this award would not have been possible without the dedication of the team at QBE, as well as the commitment and loyalty of our intermediary partners and customers.”
“While QBE was not exempt from the impacts of the natural catastrophes over the past year, our team was able to demonstrate its ‘can do’ approach and play a part in the industry’s remarkable response to catastrophe relief. I am proud to be a part of the team responsible for these achievements.”
In addition to QBE’s continued display of strong corporate governance practices, the judges acknowledged QBE’s demonstrated industry leadership, through its approach to product and distribution diversification as well as its support of the insurance industry.
ANZIIF chief executive Joan Fitzpatrick said all the winners were a “standard bearer” for the industry’s professionalism.
“The annual Awards are hosted by the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) and Asia Insurance Review to recognise dedication to best practice and the highest standards of professionalism within the Australian and New Zealand insurance industry throughout the previous year.

Government to replace Fire Services Levy

September 3rd, 2010
The Brumby Labor Government has announced it has “accepted in principle the 2009 Victorian Bushfires Royal Commission’s recommendation to replace the Fire Services Levy with a progressive property-based levy and introduce concessions for low-income earners.”
Victorian Treasurer John Lenders said the Fire Services Levy was already under review by the Brumby Labor Government and he would use the existing review process to determine the best model for the new levy. “The Brumby Labor Government is taking the tough decisions and doing the hard work to keep Victoria fire ready and safe. This reform will ensure that our fire services are funded more sustainability while also taking the squeeze off the cost of property insurance.” he said.
Mr Lenders said the existing green paper process and the Royal Commission had provided the Government with enough evidence to move to a property levy.
“However, the Royal Commission was silent on the fine details of how the levy would operate and our Government will work through how such a levy would be applied,” Mr Lenders said.  “We want to ensure that the necessary funds are raised to sustain our crucial fire services.”
Fire services are currently funded through a mix of funding through the Fire Services Levy on insurance premiums, direct contributions from the State Government and through metropolitan councils. Under the new arrangement the new levy would replace the money contributed through insurance premiums.
The Government released a statement saying they have started the process to determine the best model for the new levy by releasing a set of policy principles that a new model would need to satisfy. The new model would be:
 a progressive property-based levy,
 provide the same level of funding as the existing FSL to the CFA and MFESB respectively,
 collect no more revenue than would be collected under the current model and
 provide a 50 per cent concession to low income earners.
The Government said it will embark on a period of thorough consultation to determine the best model and options will be put into a white paper which will be released in February. The new system would be fully in place on 1 July 2012 “to honour an undertaking made during the existing review process to the people of Victoria and the insurance industry that the transition would be as simple and easy as possible”.
The Government said it will also take steps to ensure that the insurers pass on the full benefit from having the Fire Services Levy removed from premiums. Lenders said data collected to date showed some property owners in Victoria were getting a free ride because they were not insuring their properties.
“This reform will ensure that everyone who has a property protected by our world-renowned fire fighters contributes to their budgets,” Mr Lenders said.
He said the previous government had promised to reform the system in 1992 but had failed to deliver because they found it too hard to implement.
“I call on the Opposition to support the four policy principles for the new model in a bipartisan way and work towards the best model for funding our fire services,” Mr Lenders said.
“Now is Ted Baillieu’s opportunity to join us in the hard policy work which we commenced in October last year.”
More details of the reform of the fire services levy including a copy of the Government’s green paper released in October is available at www.dtf.vic.gov.au

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Ausure Insurance Newcastle scoops up more awards

September 3rd, 2010
Travis Hargreaves, Founding Director of Ausure Insurance Newcastle, won the Young Achiever Award for 2010 presented by Allstate at the Ausure Group’s Conference at Hilton Sydney. This award is given to a young individual (under 35) who demonstrates loyalty and dedication, is proactive, focused on achieving and has been identified as an asset to their business.
Travis commenced working at Ausure Head Office, spending time in the Tamworth Branch before starting his own branch in Newcastle from scratch. He later purchased another small brokerage in the local Newcastle area to add to his existing business. Travis then built Ausure Insurance Newcastle to an office of eight staff and won the prestigious Map Marketing Fastest Growing Award in Financial Services in 2008. His success has been further rewarded by Nathan Wicks joining him as a Director in February 2010 to form one of the most respected insurance brokerages in Newcastle.
Ausure Insurance Newcastle was also a finalist in the Fastest Growing Branch Award presented by Centrepoint. This award recognises the branch that achieves the highest percentage growth on last year’s earnings and has been with Ausure for the more than 24 months.

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APRA issues revised proposal for Financial Claims Scheme

September 2nd, 2010
The Australian Prudential Regulation Authority (APRA) has released a response paper and draft reporting standard in the second round of consultation on the implementation of the Financial Claims Scheme (FCS) for authorised deposit-taking institutions (ADIs).
The FCS was established in October 2008 and is designed to protect depositors up to a defined amount, and to provide them with timely access to their deposits, in the event that their ADI becomes insolvent and is placed into liquidation.   The response paper provides comments on key issues raised in submissions to APRA’s discussion paper on the FCS released in January this year. APRA has made some modifications to the original proposals in response to certain concerns raised by industry. These include:
· extending the period for providing FCS-related data to APRA from 48 hours to 72 hours of a request being made for the data;
· requiring a reasonable assurance audit initially and every three years thereafter, rather than every year as proposed earlier, with limited assurance reviews in the intervening years;
· no requirement for ADIs to include accrued interest, fees and charges in their reporting of deposit data for FCS testing purposes; and
· providing a transition period of at least 12 months (extendable for up to a further 24 months on a case-by-case basis) before the FCS reporting obligations take effect.
Once the reporting standard comes into force, and after the relevant transition period, ADIs will be required to report FCS-related data in a prescribed format to APRA within a short period of being requested to do so.  ADIs will be tested periodically on their ability to do this.
Submissions on the response paper and reporting standard are due by 15 October 2010. Subject to industry feedback, APRA will release the final reporting standard in late 2010, to take effect from 1 April 2011.
The consultation package can be found on the APRA website at: http://www.apra.gov.au/Policy/ADI-FCS-Response-to-submissions-and-draft-reporting-standard-August-2010.cfm
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding approximately $3.6 trillion in assets for 22 million Australian depositors, policyholders and superannuation fund members.

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Allianz Life Insurance receives five star rating from CANSTAR CANNEX

September 2nd, 2010
Allianz’s Life Plan product has been awarded a CANSTAR CANNEX Five Star Rating for Outstanding Value in Direct Life Insurance.
Allianz Managing Director Terry Towell said of the award, “When Allianz entered the direct life insurance market a few years ago we promised to give the sector a shake-up, by offering market-leading levels of cover at highly competitive prices. Achieving a Five Star Rating for Outstanding Value for the second year running, is recognition that Allianz Life continues to deliver on this promise.”
The direct life insurance market has expanded rapidly over the last few years – sales increased by around 27% in the last year – as insurers have developed products with high levels of cover that can be obtained quickly and easily, without the need for medical tests or the need to use a financial adviser.
Mr Towell said, “Allianz Life Plan offers life cover of up to $1.5 million, which can be obtained online or over the phone in around 12 minutes, and recently also increased the maximum level of permanent disability cover to a market-leading $1.5 million.”
The CANSTAR CANNEX Five Star Rating is awarded to a direct life insurer that
offers outstanding value across all 16 individual profiles (eg age, gender) analysed
and two levels of cover ($100,000 and $400,000).
The CANSTAR CANNEX report said, “Allianz is a general insurance giant which repeated its feat of last year, thanks to consistently cheaper products in all our profiles. Allianz’s Life Plan adds a strong suite of features to its premium price structure to offer attractive direct life insurance to the majority of consumers.”
Mr Towell commented, “There is a chronic underinsurance problem in the life insurance segment. This has come about for a range of reasons, including lack of affordability, apathy and an unfounded belief that the life cover people have within their superannuation policy will be adequate.”
“By offering market-leading levels of direct life cover, that can be obtained quickly and easily and at affordable prices, Allianz is playing an important role in helping to reduce the level of underinsurance and assisting Australians and their families to be financially sustainable should the worst happen.”

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Allianz increases disability insurance cover

September 2nd, 2010
Allianz has announced a market-leading increase in disability insurance cover in its maximum Permanently Unable to Work cover benefit to $1.5 million.
Announcing this new initiative, Terry Towell, Allianz Managing Director, said, “Allianz Life has been a pioneer in the direct life insurance market since the company launched in 2007. At that time, Allianz offered Australians the ability to purchase up to $1.25 million in life insurance online without the need to see an insurance adviser or undertake medical tests and at premiums up to 30% below comparable products offered by its competitors. Allianz maintained its leadership position in the direct market with an increase in its maximum life cover benefit to $1.5 million in 2008.
“Allianz’s market leadership position is now further enhanced with an increase in the maximum benefit for Permanently Unable to Work cover to $1.5 million, bringing it into line with Allianz’s benefit level for Life cover. This is the highest limit for this sort of cover available direct to the public over the internet or phone without the need for a medical assessment.”
Permanently Unable to Work cover provides a lump sum payment in the event of total and permanent disability as a result of sickness or injury where a person is unlikely to ever be able to work again.
Mr Towell added, “To date the maximum benefit limit for disablement cover from Allianz and other insurers in the direct market has been $1.25M. Allianz Life is again showing the way in the direct life market by increasing this amount to the new market-leading level of $1.5 million.”
Permanently Unable to Work cover is an important risk protection strategy for individuals. No-one plans to get sick or injured but it’s worth taking the time to think about the impacts of permanent disability and how this impacts a person’s ability to earn an income. The reality is that accidents and illnesses can strike at any time and often with devastating consequences. Permanently Unable to Work benefit payments can be used for a range of purposes such as the repayment of debts such as a home mortgage, to provide for long-term medical care such as rehabilitation, or for daily living expenses.
Mr Towell said, “Underinsurance is widespread in the Australian community with research indicating that only 22% of Australians have life insurance and those that do are typically underinsured by an average of $460,0002. And the need for greater levels of insurance to protect against the risk of long-term disability is just as important as it is for greater protection against the risk of premature death. Allianz is pleased to be able to assist in reducing the underinsurance problem by providing market-leading levels of life insurance cover that can be accessed by Australians simply, quickly, without the need for medical tests and at competitive prices.”

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Zurich extends Directors & Officers insurance cover

September 2nd, 2010
Zurich Financial Services Australia has extended its Directors and Officers (D&O) insurance cover to ensure both local and global companies have global protection. This was in recognition of “Australia and New Zealand becoming more litigious in the boardroom – part of a global corporate trend.”
Zurich’s worldwide coverage means that claims are covered no matter if it is against a foreign insured in a foreign jurisdiction (where local policy issuance is not required); or an insured located outside such foreign jurisdiction.
“Zurich now provides a seamless blend of covers around the world as we craft a global D&O solution,” said Ms Susan Elias, Zurich’s National Underwriting Manager – Financial Lines.
“Zurich’s commitment is to resolve the uncertainty around the application of licensing laws and premium tax requirements, so we have added our Overseas Entity Liability insuring clause. This provides cover for the policyholder in connection for financial interest loss where a subsidiary is located in a restricted foreign jurisdiction,” she said.
“There is growing evidence that Australia and New Zealand are becoming part of the global trend of litigation against boards, directors and senior management. In particular, Australian and New Zealand companies are facing potential legal issues in overseas markets and vice versa, global companies facing potential legal threats here..Zurich’s global reach means we are able to provide world-wide coverage.”
As part of its new D&O cover Zurich also offers its Zurich Multinational Insurance Proposition (MIP), which helps resolve the uncertainty around the application of licensing laws and premium tax requirements applicable in more than 170 countries where cross-border risk is written.
“This is critically important to provide protection for any multinational company that has directors and officers in multiple jurisdictions,” said Ms Elias.
The new D&O insurance also has environment mismanagement cover. This includes coverage for climate change and global warming disclosure claims; retaliation claims against insured persons, non-securities misrepresentation claims; and securities claims arising out of or attributable to actual or alleged climate change or global warming.

Financial Sector scholarships announced by APRA

September 2nd, 2010
The Australian Prudential Regulation Authority (APRA) has announced the recipients of the 2010 Brian Gray Scholarship to study topics in the financial sector. The two recipients are Tahlia Parrish (Honours candidate, Bachelor of Commerce (Finance) and Bachelor of Laws and Legal Practice, Flinders University) and David Rowell (PhD candidate, Australian Centre for Economic Research on Health, The University of Queensland) and
Under the Scholarship program, the recipients will devote a substantial amount of time to an agreed research topic and present their findings to APRA upon completion of their research.
Tahlia Parrish will research “Divers of the selection of superannuation funds.” David Rowell will be researching the top of “Moral hazard and adverse selection in the market for automobile insurance” and
The Brian Gray Scholarship program was established by APRA and the Reserve Bank of Australia (RBA) in September 2002 in memory of Brian Gray, APRA’s former Executive General Manager, Policy Research and Consulting, who spent more than two decades shaping regulatory policy in the financial area in his role at the RBA and later at APRA. The scholarships are valued at $12,500 each.
The Scholarship program is open to Australian and New Zealand citizens and permanent residents who are currently studying a topic of relevance to prudential regulation. While the program focuses on honours year students, postgraduate students can also apply. More information on the Brian Gray Scholarship is available on APRA’s website at: www.apra.gov.au/Careers/Brian-Gray-Scholarship-Program.cfm.
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding approximately $3.6 trillion in assets for 22 million Australian depositors, policyholders and superannuation fund members.

Financial Sector scholarships announced by APRAThe Australian Prudential Regulation Authority (APRA) has announced the recipients of the 2010 Brian Gray Scholarship to study topics in the financial sector. The two recipients are Tahlia Parrish (Honours candidate, Bachelor of Commerce (Finance) and Bachelor of Laws and Legal Practice, Flinders University) and David Rowell (PhD candidate, Australian Centre for Economic Research on Health, The University of Queensland) and Under the Scholarship program, the recipients will devote a substantial amount of time to an agreed research topic and present their findings to APRA upon completion of their research. Tahlia Parrish will research “Divers of the selection of superannuation funds.” David Rowell will be researching the top of “Moral hazard and adverse selection in the market for automobile insurance” and The Brian Gray Scholarship program was established by APRA and the Reserve Bank of Australia (RBA) in September 2002 in memory of Brian Gray, APRA’s former Executive General Manager, Policy Research and Consulting, who spent more than two decades shaping regulatory policy in the financial area in his role at the RBA and later at APRA. The scholarships are valued at $12,500 each.The Scholarship program is open to Australian and New Zealand citizens and permanent residents who are currently studying a topic of relevance to prudential regulation. While the program focuses on honours year students, postgraduate students can also apply. More information on the Brian Gray Scholarship is available on APRA’s website at: www.apra.gov.au/Careers/Brian-Gray-Scholarship-Program.cfm.The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding approximately $3.6 trillion in assets for 22 million Australian depositors, policyholders and superannuation fund members.

Ausure supports small business in the Hunter

September 2nd, 2010
Ausure Insurance Brokers has shown support for the achievements of small business in the Hunter Region by co-sponsoring the 2010 Hunter Region Business Excellence Awards to be announced on 3 September 2010.
Foster Brown, who set up Ausure Insurance Brokers Hunter Valley in 2007 says, “It takes an enormous amount of skill, personal investment and passion to achieve success and growth in a new business. Through co-sponsorship of this award, we are able to show our support for fellow business people who are achieving their goals and dreams.”
Foster has almost 50 years of experience in the insurance industry to his credit. Over the years, Foster has established four new insurance offices in country areas that needed them. This included starting an Ausure office in Cootamundra, literally from scratch without even one client. Foster grew that office to boast $1,3 million in premium income by the time he left. At age 62, he wasn’t fazed about starting all over again by setting up Ausure Insurance Brokers Hunter Valley with the assistance of Wayne Brown of the Ausure Group.
Foster believes in advice learnt during his earlier training days, “There are three things you have to do to succeed in business: 1) Look like a million dollars (must look clean, neat and tidy), 2) Know what you are talking about (f you do not know then how can you advise your clients) and 3) Be Honest – honest to yourself, honest to your company and honest to your clients.”
Wayne Brown is the Chairman and Founding Director of the Ausure Group, based in Newcastle, and has over 27 years experience in the insurance industry. Wayne started Ausure in 1996, and together with his family and colleagues, has built the business to boast over 90 branches across Australia.
Ausure received the award for the Fastest Growing Financial Services business with headquarters in the Hunter region three times during the last four years (MAP Marketing 2006, 2007 and Eclipse 2009). Ausure was also selected as Small Business Champion Award State Finalist for two years running (Commonwealth Bank, 2008 and 2009) and Ausure’s MD Wayne Brown achieved Small Business Champion Entrepreneur Award Finalist in 2008.
In January 2010 Wayne’s son Troy Brown took over the reigns as Managing Director of the Ausure Group. At the time, Wayne commented, “I have the utmost confidence Ausure is positioned to not only continue our progression toward No 1 but to be the undisputed leader of the Authorised Representative (AR) space in Australia.”
“When Ausure started, the industry looked upon ARs as agents who were unprofessional small brokers. However, with the quality of our network and the procedures we have implemented, this has changed. We have received numerous awards but without doubt the most pleasing aspect of our achievements is the fact that, through the professionalism and credibility of our people, we have changed the thinking of professionals in our industry including insurers.”
Asked what contributed to his success, Wayne replies, “The best advice I can offer is to do the hard work with honesty and the rewards will follow. The success we have achieved was never expected in regards to our size but we always knew the industry needed a licensee who was proactive and placed an emphasis on local, regional professional Insurance people.”
“We were able to achieve our current status by being interested in the business of our clients (AR’s) ensuring all decisions that were made were in the best interests of our business and not with monetary gain as the motivator. We worked tirelessly in the beginning with limited resources and in the past couple of years have been able to employ quality people to service the growing demands.”
“Small business is the backbone of our economy and it is astonishing how much they contribute. Ausure is proudly based in the Hunter and I have met many highly talented people here who run small businesses and a number of others who would make ideal business proprietors. If I am able to assist or encourage just one business or new proprietors, I have contributed to the business community.”
“The insurance industry is one of the most rewarding industries to be involved in. To be successful you only require the ability to work hard, communicate and most importantly transact business honestly. I have had a number of employees that we have assisted in setting up their own businesses and the opportunity to be able to do this in a lot of other industries is very limited.”
The diversity of the Hunter creates exciting opportunities to commence business. It’s not surprising many Hunter-based businesses have received national recognition for their services. We look forward to congratulating the winners of the Hunter Region Business Excellence Awards on September 3 this year.”
The winners of the Hunter Region Business Excellence Awards will be announced on Friday 3 September 2010 at the Maitland City Bowls and Recreation Club. There are 22 business categories and from these, the “Business of the Year” will be determined.

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Ausure Insurance Newcastle scoops up more awards

September 2nd, 2010
Travis Hargreaves, Founding Director of Ausure Insurance Newcastle, won the Young Achiever Award for 2010 presented by Allstate at the Ausure Group’s Conference at Hilton Sydney. This award is given to a young individual (under 35) who demonstrates loyalty and dedication, is proactive, focused on achieving and has been identified as an asset to their business.
Travis commenced working at Ausure Head Office, spending time in the Tamworth Branch before starting his own branch in Newcastle from scratch. He later purchased another small brokerage in the local Newcastle area to add to his existing business. Travis then built Ausure Insurance Newcastle to an office of eight staff and won the prestigious Map Marketing Fastest Growing Award in Financial Services in 2008. His success has been further rewarded by Nathan Wicks joining him as a Director in February 2010 to form one of the most respected insurance brokerages in Newcastle.
Ausure Insurance Newcastle was also a finalist in the Fastest Growing Branch Award presented by Centrepoint. This award recognises the branch that achieves the highest percentage growth on last year’s earnings and has been with Ausure for the more than 24 months.

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Please note Quotesonline Insurance News is an information service provided by third parties Insure247 Pty Ltd doesn't warrants the accuracy of any information contained there in, readers should make their own enquiry's before relying on information in the stories Terms of Service