Veracity - May 2018 edition

For some time, we’ve been hearing a lot of the business buzzword ‘disruption’. The term refers to the impact of new ideas and technologies and the unsettling changes they cause. It’s threatening because it challenges things as they are and implies re-programming the way we do things.

I prefer to put it more simply. ‘Disruption’ really means upsetting the apple cart. It is an interruption or change to the usual way a system, process or event works.

Maybe that’s why the concept leaves so many people feeling uncomfortable. Change impacts everyone. There is a familiarity in the way things are and any departure from this can have a destabilising effect.

According to a recent McKinsey and Company report*, “… business models are less durable than they used to be. The basic rules of the game for creating and capturing economic value were once fixed in place for years, even decades, as companies tried to execute the same business models better than their competitors did. But now, business models are subject to rapid displacement, disruption, and, in extreme cases, outright destruction.”

No wonder many business people are anxious. But then change is inevitable and the pace of innovation continues to accelerate.

Slow to react

Nowhere is disruption more keenly felt than in financial services. Let’s be honest – our industries have traditionally been slow to react to change. We can be our own worst enemy. Founded with rusted-on conservative principles, we tend to resist change with a passion.

But new technologies are impacting every part of our lives – from the multiple messages you wake to find on your smart phone to the daily doses of hi-tech news you ingest on your 4G curved-screen TV – the inputs are multiple and relentless.

It’s the same in business.

There is a constant raft of business innovations – like Artificial Intelligence which could bring real efficiencies to the way we do things, the Insurtechs who are seeding and harvesting new niche markets and the big data industry which is providing fresh insights into the customers we deal with.

You can call them ‘disruptions’ or just new ideas, but they affect our commercial lives.

It is impossible to ignore these powerful waves of change. Our industries may have been born conservative, but that philosophical stance has no place in the face of today’s dynamic realities. What we really need to do is learn how to cope with change.

‘Round up the wagons’

So how can we adapt to these new technologies and learn how to live with them? One answer is to ‘round up the wagons’

Remember the old Western movies? When the wagon train was under attack, the order would go out to form a circle with the wagons so everyone could better defend themselves.

Vero’s recently released SME Insurance Index** research study tells us that this is just what 58% of SMEs are now doing and this trend has grown by 11% in the last year! Business people are collaborating with their peers – associates, friends and relatives – and increasingly relying on them for advice. All this is happening in an era when more information than ever is freely available online.

Clearly, there’s a lot of comfort to be gained by rounding up the wagons and learning from each other’s experiences.

This was also supported by the Ernst and Young report in September 2017 which told us that intermediaries who collaborate with insurers and have a good understanding of their strategy, gain in confidence and are less concerned about the impact of changes in customer behaviour.

Collaboration deals with new ideas

Mr Carl Wocke, Managing Director of Merlynn Intelligence Technologies, delivered a paper on Artificial Intelligence (AI) at Suncorp’s Synergy event last year.

He discussed the impact that AI could have on our industries and said; “The next major evolution is therefore very likely to be the ability for AI to acknowledge additional fuel sources – that of the human expert. The ability to not only learn from data but to learn from people…from experts. Systems that think like people.”

This concept fascinated many of the delegates who had taken time out to attend our seminar. AI suggests the replacement of many tasks that are now tackled manually with automated processing.

But the concept gained real momentum when delegates collaborated and began exchanging their views on its impact. These robust conversations between a mix of intermediaries from banking, commercial insurance, life and wealth produced a healthy new understanding of AI. It was suddenly less of a threat and delegates could plan strategies for adapting to this new technology.

A report from PwC*** had told us that combining solutions from banking, life and general insurance was a trend that our end customers would favour. Participants in our Synergy events were happy sharing of ideas from their respective industry sectors. While each had their own challenges, it was interesting to hear how much they had in common.

Following on the success of Synergy, we are planning a second series of seminars shortly.

Is collaboration the key?

Whether we label the contemporary challenges impacting all of us as disruption, innovation or simply change – it seems the most natural way to help us cope with it all is to take a little time, round-up the wagons and collaborate. Seek the help of your peers – after all, they are in the same boat as you.

Exchanging thoughts, reactions and experiences between industry sectors has been proven to explain, comfort and reassure us.

Today, we are assaulted by more new ideas, stimulus material and advice than ever before in mankind’s history on this planet. There’s a lot of good new thinking to be found out there and there’s plenty of bad ideas to reject.

That’s even more reason to put our heads together and share our experiences. Collaboration is the key – it’s a sure-fire way to help you cope with the onslaught.

*de Jong and van Dijk, McKinsey & Company 2015

**Vero SME Insurance Index 2018

***PwC 2017 report

Enhanced Equipment Breakdown cover launched

Today, your clients' business equipment is more important than ever. As technology develops and equipment becomes even more sophisticated – their exposures grow even larger!

Recognising this, Vero has announced significant new covers and removed exclusions in their new, enhanced Equipment Breakdown policy.

Have you accessed OneTouch claims yet?

OneTouch claims are lodged, paid and finalised at the very first touch point between the broker and Vero. This now means that SME and Property claims up to $10,000 can be processed in as little as 15 minutes and less than a day overall.

What we need from you

All we require when lodging your claim is the complete information outlined here; including EFT details - Lodgement is easy!

• Simply call 1300 888 073 to lodge your claim over the phone
• Complete the OneTouch claim form, attach supporting documents and email lodgeclaim@vero.com.au.

For more information

• Download the Information flyer (and keep it at your desk)
• Download the Claim Notification form

Now you have Vero’s OneTouch claims working for you.

Vero wishes our 2017 Warren Tickle Award winner, Adam Ware of BJS Insurance, the very best of experiences on his up-coming European adventure.

Adam leaves Melbourne on 13 May for Manchester, UK where he will attend the British Insurance Brokers association (BIBA) annual conference. He will also spend valuable time with a local brokerage.

Next on the agenda is London where he will participate in the Lloyds GDP Program. We hope he enjoys every aspect of this wonderful learning experience.

Have a great trip Adam – you’ve earnt it!

First impressions count

Last month, Vero launched its new website – the first intermediary Suncorp brand to have its public facing website digitally improved.

The site can be used easily from any device, is simple to navigate with claims information, policy documents and contacts pages available at your fingertips.  

There is a new articles section and a number of our product pages have been enhanced.

We’re also excited about the 'Find a broker' tool helping customers connect with brokers via this new feature.

Take a look!