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A year in review - Insurance 2020

As the end of 2020 approaches faster than ever, it’s appropriate to take a look at where we have been and what the future likely holds for the insurance industry. That’s because at Insurance Advisernet we are committed to building a sustainable future where our clients and community can grow and prosper, despite the distresses of the past year.
So let’s take a look at some of the major obstacles and natural disasters that we, as a community, have overcome this year. Not forgetting to give credit to the many SMEs that have demonstrated their overwhelming strength and resilience, time and time again, in the face of extreme hardship.
 
Cyber crime is on the increase
Cyber attacks continue to grow, even in the face of the pandemic. Business Email Compromises (BEC), Ransomware and Phishing attacks are all continuing to pose significant threats to SMEs. Solutions to these attacks include multi-factor authentication for your company’s email accounts and remote desktop protocols for employees working at home. Insurance Advisernet will also work with you to minimise your cyber security risks and protect your business with Cyber Insurance that’s tailored to your specific needs.
 
Natural disasters continue to assault Australians
Bushfires and floods highlight the increasing trend towards more extreme weather events in Australia, a situation that the Insurance Industry has been prepared for since 2019. One of the solutions was to increase the disaster budget to help insurance providers support their clients through these trying times, but the downside has been that premiums have increased in some areas. Nevertheless, the industry is working towards developing better models of climate risks with the goal of providing our clients with more realistic and accurate premium rates in the future.
 
Aftermath of the Royal Commission
The insurance industry has had to face a number of challenges during 2020, one of which is integrating the legislative changes brought about by the Royal Commission. Other challenges have been how to address the reduced capacity of the industry, as well as incorporating a more customer-centric but streamlined approach to client services. These changes are ongoing, but at Insurance Advisernet, we are focusing on helping our clients customise their insurance cover for their business, because one size doesn’t fit all. 
 
COVID-19 completes the disaster trifecta
The aim for many insurance providers in Australia has been to slowly increase capacity during 2020, despite a hardening market, and then the pandemic hit Australia. The result has been a dramatic change in how SMEs operate with many closing their doors, possibly never to reopen again. However, despite these disasters, the vast majority of SMEs have asked their insurance providers for help and are regaining some sense of normalcy, even as we enter into a recession. It’s in these tumultuous times that some Insurance policies can be the difference between carrying on in the face of adversity or closing your doors forever.

Management Liability insurance is designed to provide protection to both the business and its directors or officers for claims of wrongful acts in the management of the business.

A business insurance pack can provide cover for your business premises and contents, against loss, damage, theft or financial loss from an insured interruption to the business.

Purchase up to six products under one Business Insurance Package. 

The aim for many insurance providers in Australia has been to slowly increase capacity during 2020, despite a hardening market, and then the pandemic hit Australia. The result has been a dramatic change in how SMEs operate with many closing their doors, possibly never to reopen again. However, despite these disasters, the vast majority of SMEs have asked their insurance providers for help and are regaining some sense of normalcy, even as we enter into a recession. It’s in these tumultuous times that some Insurance policies can be the difference between carrying on in the face of adversity or closing your doors forever.
 
What about the next 12 months?
Over the next 12 months, Insurance Advisernet will continue to support all our clients. We will work with you to ensure that your insurance policies are still relevant for your business as we work our way out of the pandemic. We have no doubt that 2021 will see many SMEs building even more resilience into their structure and operations with the goal of not getting caught out again by these disasters. 
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.


Gail Findlay, IA South West, AFSL 240549

This article originally appeared on Insurance Advisernet News and has been published here with permission.

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