Document Sample
EXPOSURE.     The newsletter of the MGA Insurance Group
                                                                                                                            INSURANCE BROKERS

The Chairman’s Report .....................1     Are Premiums Low or High?
                                                 – Which way are they likely to go? .......3
Charity Update
– Royal Flying Doctor Service ...........2       Making it Easier
                                                 – A Guide for the cost of
The Way Forward
                                                   rebuilding dwellings .......................3
– MGA moves into the future with
  VOIP Technology ...........................2   MGA
                                                 – Proud to be a National Network…... 4

THE                                              Latest figures suggest that insurance
                                                 claims from the March storms in Perth
                                                                                                   Calls were instantly re-routed centrally
                                                                                                   so that we could continue providing
CHAIRMAN’S                                       and Melbourne will top a combined                 service to our customers who were

REPORT                                           $2 billion with about 106,000 claims
                                                 in Victoria and 120,500 in West
                                                 Australia. In the wake of cyclone Ului
                                                                                                   facing real difficulties.
                                                                                                   I would like to acknowledge the efforts
                                                                                                   of the MGA Ceduna office staff who
                                                 in Queensland, registered losses are
                                                                                                   have recently been recognised with
                                                 in the vicinity of $3.7 million, flagging
                                                                                                   the “Best Business Support Award”
                                                 a very expensive first quarter for the
                                                                                                   for their work and support of the local
                                                 Insurance Industry in Australia.
                                                                                                   Indigenous Community Organisation:
                                                 Generally, there have been some                   Tjutjunaku Worka Tjuta Inc.
                                                 increases in rates and Insurers seem
                                                                                                   Finally, I would also like to acknowledge
                                                 to be holding the line. Insurance in
                                                                                                   recently retired MGA Pt Lincoln Broker,
                                                 this country continues to be generally
                                                                                                   Adrian Kraft and his wife Raeleen for the
                                                 available and affordable.
                                                                                                   assistance they provided to volunteers
                                                 MGA continues 2010 with ongoing                   and the bushfire victims in regional
                                                 developments in IT and systems. Early             Victoria (Yarra Glen and Kilmore).
                                                 last year, our networked telephone
                                                                                                   It is through generosity like this that
Despite many challenges over the                 system was rolled out across 23
                                                                                                   these communities can start to heal
last year there have been a number of            branches. We experienced the
                                                                                                   and rebuild.
positive areas, with most farmers in             benefits of this when lines went down
Australia experiencing a reasonable              in Pt Lincoln during the bushfires in
season after several years of drought.           December 2009.                                    John George
Good crop seasons flow through our
regional economies and have a positive
effect on our national economy.
Although there have been some good
results, the news has been mixed, with
many irrigators relying on water from
our river systems enduring particularly
tough years.
The wine industry continues to be
resilient in the face of depleting exports
and tough market conditions.
With our world leading products, I
have confidence that these challenges
will be met.                                         MGA Head Office
                                                     176 Fullarton Rd, Dulwich                                                    We work for you                                                                  1

                                          The work of the Royal Flying Doctor          •	 a Rural Women’s General
                                          Service is vital and at the core of the         Practitioner Service;
                                          Australian spirit. MGA Whittles Group is     •	 an emergency medicine training
                                          proud to continue our commitment as a           program for country doctors and
                                          major event partner for the 2010 year.          nurses;
                                                                                       •	 First Aid training for those who live in
                                          The Wings for Life Ball, held in May
                                                                                          regional and remote communities;
                                          2010 was the main focus of our support
                                          this year. The RFDS has a fleet of 53
                                                                                       •	 a Healthy Living Program aimed at
                                          aircraft operating from 21 bases across
                                                                                          improving the health and well-being
                                          the nation. In addition to its traditional
                                                                                          of communities.
                                          role of providing emergency aero
                                          medical evacuations, the RFDS also           Our business continues to be built
                                          delivers a broad range                       through the people who live and work
                                          of essential primary health care             around rural and regional Australia;
                                          services to rural and remote                 many of our city corporate clients also
                                          communities, including:                      operate businesses in these regions.

                                          •	 regular clinic flights to isolated        MGA Whittles Group has a
                                             communities with doctors, nurses          recognisable affinity with regional
                                             and health specialists;                   Australia and we are proud of our
                                          •	 radio and telephone medical               commitment and support of the Royal
                                             consultations with remote patients;       Flying Doctor Service.
                                          •	 provision of medical chests to
                                             isolated persons and communities;

During 2009 MGA completed the roll
out of a new networked phone system
to 17 branches nationwide. The new
system is based on VOIP (Voice over
Internet Protocol) technology and
allows users to communicate more
easily between offices with
increased functionality.
The VOIP system utilises MGA’s existing
data lines for voice communications,
reducing the overall cost of calls to
the business. In addition to this, the    This increased flexibility allows MGA
system is centrally managed in the IT     offices to transfer calls between
area so, in the case of a catastrophe     branches seamlessly. MGA has
or emergency, MGA can mobilise            selected Polycom handsets on the
immediately to provide the required       basis of their superior sound quality,
back-up or support in affected areas.     ease of use and reliability.

  “Change is inevitable – except from a vending
  machine” Robert C. Gallagher                                           We work for you                                                            2
                                                                                            MAKING IT
                                                                                            A GUIDE FOR THE
                                                                                            COST OF REBUILDING

                                                                                            Between 2007 - 2009 there were
                                                                                            significant increases in the cost of
                                                                                            building materials, especially steel
                                                                                            which had a flow on effect to the
                                                                                            total cost of building. This, along
                                                                                            with general increases in materials
                                                                                            and labor would have an impact on
                                                                                            the rebuilding cost of your home.
INSURANCE PREMIUM PREDICTIONS                                                               The most accurate way to establish
                                     2010 Increase /               2011 Increase /          a rebuilding cost is to engage a
                                       Decrease                      Decrease               builder or professional valuer to
                                                                                            provide a report. Before you do that,
Fire and ISR Risks              + 6%                          + 5%
                                                                                            you may like to get an indication of
Commercial MV                   + 6%                          + 5%                          your value. MGA in conjunction with
                                                                                            a professional valuing company has
Public/Products Liability       + 4%                          + 4%                          created a guide to calculate your
                                                                                            home building replacement value
Professional Indemnity          + 8%                          + 6%                          and also provides information about
                                                                                            your contents.
Directors and Officers          + 9%                          + 7%
Source: J.P. Morgan Deloitte 2009 General Insurance Survey
                                                                                            to review your sums insured. If you
                                                                                            have any questions or would like to
ARE PREMIUMS LOW OR HIGH?                                                                   increase your replacement value

                                                                                            for your home or contents, please
                                                                                            contact your MGA Broker.

Like any market, general insurance           In the wake of 2001 until around
works in cycles. A major catastrophe         2003/4, certain risks which were readily
overseas can impact Re-Insurers              available in the market were now
and can have effects on premiums in          unavailable or unaffordable.
Australia. Locally, our two significant
                                             Today, competition is strong and a wide
market catalysts of the past 10-years
                                             number of products continue to be
were in 2001.                                                                            These may range from buildings, stock,
                                             available in the market.
                                                                                         motor vehicles, and various forms of
This included the collapse of HIH
                                             Some areas of property insurance            liability insurance. One way to be
Insurance on March 15 and the terrorist
                                             have seen increases (especially             assured of the lower rate in any market
attacks on September 11. Not only was
                                             sandwich paneling risks) where the          cycle is to be proactive with risk
the global market in turmoil but our local
                                             catalyst of increases has been through      management strategies, particularly
market suffered an additional shock.
                                             loss experience.                            those recommended by the insurer, and
Insurers started to question basic risk                                                  where possible implementing measures
                                             In such cases, Insurers tend to become
acceptance practices following the HIH                                                   to reduce exposures to risk. Your broker
                                             reluctant to insure that type of product;
collapse and struggled with the new                                                      can assist in this process.
                                             the availability of market diminishes,
dimension of risk possibilities in the
                                             rates become higher driven by the           A recent survey of the General
wake of September 11.
                                             increase risk factor and lack of supply/    Insurance Industry provided an outline
This led rather quickly to contraction       competition. A typical commercial           of what can be expected during 2010
of the market and what is known in the       business will have a number of risks        and 2011 when applied over the
industry as “hard” market conditions.        to insure.                                  entire industry.                                                  We work for you                                                       3
MGA has been expanding nationally
since the mid 1990’s and are now
represented in all states except
WA and TAS. The below is a brief
                                        MGA – PROUD TO BE A
introduction to our branches and
people working outside of MGA’s
                                        NATIONAL NETWORK
founding state of South Australia.

SYDNEY (NSW)                            NEWCASTLE (NSW)                           WARRNAMBOOL (VIC)
Portfolio Managers: Andrew Faber        Regional Director:   Ross Lewis           Portfolio Manager: Dennis Morgan
                    Trevor Gould        Office Manager:      Kerrie Baldwin       Broker:            Gareth Morgan
Broker:             Stephen Runge       Admin Staff:         Lauren Baldwin       Admin Staff:       Jade Davey
Admin Staff:        Bernard Tuaimau                          Kerry Hockley                           Caitlin Pulham
                    Gemma Gould
                    Simone McWhirter
                    Denise Gould

MILDURA (VIC)                           TOOWONG (QLD)                             ROMA (QLD)
Portfolio Managers: Chris Grant         State Director:      Paula Bebee          Portfolio Manager: Gordon Rowlings
                    Selena McKendrick   Admin Staff:         Kim Dewar            Admin Staff:       Vanessa Lavelle
Admin Staff:        Lisa Grant                               Chris Aitken                            Janet Rowlings
                    Noelene Pulham
                    Virginia Silvia
                    Courtney Verbeek
                    Dianna Horvat
                    Natasha Smith

SUNSHINE COAST (QLD)                    DARWIN (NT)                               ALICE SPRINGS (NT)
Branch Manager:    Todd Redman          Regional Manager: Jon Bourke              Branch Supervisor: Andrew McCormack
Broker:            Debbie Morris        Admin Staff:      Kerri Corey             Admin Staff:       Hayley Speck
Admin Staff:       Alison Tucker                          Traci Young                                Gemma Dean
                   Yolande Dean                  MGA Insurance Brokers Pty Ltd ABN: 29 008 096 277 AFSL: 244601                            2