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March-April 2014

Welcome message _____________________________________________

Welcome to the March-April 2014 issue of Insurance Insight.

In this issue, in honour of April Fool’s Day, we have come up with

some insurance products... with a difference.

They’re not in the same league as the BBC’s famous bumper Swiss

spaghetti harvest report of 1957, Taco’s “purchase” of the Liberty

Bell or the left-handed Whopper, but we hope they give you a

chuckle.

While a good-natured stunt can provide great marketing exposure

on April Fool’s Day, it’s vital to stick strictly to the facts when

making any insurance claim.

Fraudulent claims can include exaggerating otherwise-legitimate

claims, deliberately misrepresenting the facts or organised

manipulation to gain financial advantage when there has been no

loss.

Insurance fraud costs an estimated $2 billion a year in Australia – to the detriment of legitimate businesses

and individuals who bear higher premiums as a result.

Insurers collect, share and analyse information to help counter insurance fraud and identify fraudulent

claims.

As brokers, we also support the fight against fraud, which is a serious criminal offence with penalties that

can include jail and/or a substantial fine.

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 send an email with ‘unsubscribe’ as the subject to

marketing@ebminsurance.com.au

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News in brief ____________________________________________

Heavy transport firm Scania is testing a system to

drive trucks automatically in traffic jams, with the

driver free to read and write emails, surf the web or

enjoy a movie through a smartphone, while

information about the surroundings and status of

the automatic system is shown around the edges of

the display.

Australia’s new consumer credit regime is now in

place. Under the system, credit providers will record

positive as well as negative information about your

repayment history on loans and credit cards. The

new system will include information on the type of

credit, maximum credit available, repayment history,

the date payment is due and the date payment is

actually made.

Sometimes, the simplest solutions can be the best – Russian and Indian authorities are reportedly investing

in old-school typewriters to counter cyber security threats.

A German group is pioneering a new model of insurance which combines traditional cover with social

networking peer-to-peer cover. Friendsurance claims that the system reduces fraud and enables better risk

selection, as people use private information to judge friends’ risk profiles. Friendsurance, which is not

available in Australia, claims users can reduce their premiums by as much as half if they have 10

connections.

Australians are misinformed about insurance held within their superannuation, with less than a quarter

aware of how much they were covered for regarding income protection insurance and just 15 per cent

identifying the relevant waiting period. More than half of almost 400 employees surveyed by Zurich said

they would be forced to sell assets in less than three months if they lost their income.

Business bookshelf: How to Give a Killer Presentation ____________________________________________

Few people on the planet are better qualified to

write a guide to successful public speaking than

Chris Anderson, the curator of TED.

For the uninitiated, TED is a conference with

presentations from people in all walks of life

with “ideas worth spreading” who speak for 18

minutes or less.

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Many of these TED Talks are available online and, collectively, have been viewed more than a billion times.

How to Give a Killer Presentation is an easily-digestible summary of what Chris has learned coaching

inexperienced speakers.

Here are a few of his tips:

Substance matters – if you don’t have something compelling to say, don’t speak.

Keep a tight focus – don’t try to cover too much ground.

Use examples to bring your talk to life.

Try to tell a story – organisations are boring, while ideas and narratives are interesting.

Ideally, speeches should be memorised word for word and practised until the delivery becomes second nature. If you don’t have time to memorise a speech thoroughly, use bullet points on note cards as opposed to reading from a full script.

Use a conversational tone – don’t orate.

Don’t project too much ego.

Learn to keep your lower body still when you’re speaking.

Make eye contact with five or six friendly-looking members of the audience.

Powerpoint slides are not compulsory, and many talks don’t require them.

Rehearse your talk to make sure you can do it in the allotted timeframe.

Caution on materials supplied by principal _____________________________________________

Sub-contractors can come unstuck when it

comes to insurance protection for any

valuable client materials under their care.

That’s because the contract principal often

requires the sub-contractor to insure these

expensive materials – but some policies

only provide cover based on a percentage

of the contract value.

For example, if you’re being paid $300,000

to install supplied equipment worth $1

million, you’re clearly going to be in trouble

if you hold a policy based only on the $300,000 contract value.

It’s worth reviewing your insurance with your broker before accepting any principal supplied materials.

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There should be insurance for that! ____________________________________________

In honour of April Fool’s Day, here are few types of

cover which don’t exist – yet!

PonyPact

PonyPact covers expectant parents against the risk of a

child being pony mad. In the event of a claim, cover

will include cost of one (1) pony, associated gear e.g.

saddle, horse float, riding lessons and agistment for

four (4) years. Parental travel time and event entry fees

are excluded under the terms of the PDS.

NoNostalgia

Guard against the risk of feeling your best days are

behind you! If you start feeling wistful, our

NoNostalgia policy will send a consultant to research

the era of concern, and send you a stream of images

and other reminders of everything that was wrong with

it.

40Up

A midlife crisis poses real financial risks. Some escape relatively unscathed, while others find themselves

purchasing expensive motor vehicles and/or boats and engaging in pricey pursuits such as divorce and

changing careers. For peace of mind, buy 40Up cover. Note: purchasers must be aged 30 or under and

maintain continuous coverage to qualify.

BullSure

It’s hard these days to know who to trust. By buying BullSure, you’re covered in the event that you’re taken

in by a Nigerian scammer, investment spruiker or other dishonest party due to your own gullibility. Note:

under the PDS, you must use your best endeavours not to be scammed.

Bureaucrasure

Red tape may be unavoidable, but you don’t need to be left financially vulnerable to its effects. With

Bureaucrasure, you’ll be compensated for any financial cost resulting from slow action on the part of

government or council e.g. interest costs while awaiting a planning application to be approved.

TalentToken

Whether it’s in sport or another field of endeavour, a highly talented child is an expense few parents can

bear without risk to their standard of living and that of their other children. Expenses include coaching,

competition entry, intensive camps and more. Expectant parents who take out TalentToken insurance are

covered in the event their little darling really is exceptional. Note: exceptional talent must be independently

validated in the event of a claim.

ThumbSure

In an Australian first, we’re proud to offer ThumbSure. If you or your kids rely on the convenience and

social connection offered by texting, injury to one or both thumbs could be very distressing. With

ThumbSure, you’ll be covered for counselling and get access to our patented text retraining program, which

will have you communicating with other digits in no time!

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BuyOath

The impact of buyers’ remorse is often underestimated. It can leave you doubting your own judgment... but

not if you take out a BuyOath policy. We swear that if you change your mind on a purchase and are unable

to return it, we’ll cover the difference between what you paid and what you’re able to sell it for. Note: the

BuyOath protection cannot be used to cover buyers regret over the purchase of a BuyOath policy.

MediaCover

If you deal with the media, MediaCover’s for you. It’s a specialist policy which covers you and your firm for

any fallout relating to unwise public statements, publicity stunts which backfire and even risks associated

with being quoted out of context. This policy is also useful for reality TV contestants, with provisions which

cover the cost of rehabilitating your reputation in the event you are portrayed as “the bad guy”.

FitSure

Shoppers, we’ve got you covered! With FitSure, you’ll be reimbursed fast whenever you come to the

distressing realisation that the item of clothing or footwear which seemed comfortable in the shop in fact

does not fit you. Note: poor fit due to weight gain (or loss) is excluded under the PDS.

Aussie businesses fear red tape risk more than global peers ____________________________________________

Regulatory and legislative changes are amongst

the highest-ranking risks facing Australian

businesses, according to the 2014 Allianz Risk

Barometer.

The risk ranked higher in Australia than in any

other of more than 30 surveyed by the insurer,

coming second only to business interruption.

Fears around regulatory risk outweighed other

top 10 risks such as natural catastrophes, the

availability of credit and market fluctuations.

Risks associated with technology and reputational loss are also increasing in importance relative to previous

years, both in Australia and globally.

The risk barometer was based on surveys with 400 corporate insurance industry figures, including 45 in

Australia.

Top 10 Business Risks for Australia:

1. Business interruption, supply chain 2. Changes in legislation and regulation 3. Loss of reputation, brand value 4. Cyber crime, IT failures, espionage 5. Natural catastrophes 6. Market fluctuations 7. Commodity price increases 8. Intensified competition 9. Talent shortage, aging workforce 10. Credit availability

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PersonalCover, personal service ____________________________________________

Jonnine Gould is as fired up in the boxing ring as she is

friendly on the phone when speaking to clients about their

personal insurance needs.

The Manager of EBM’s PersonalCover Division, Jonnine

works long hours but still manages to find time to train six days

a week.

“I’m a morning person. I’m up at 5.30am to go to boxing

classes on weekdays, and on weekends I swim. Sport has

always been a key part of my life,” says Jonnine, who is also a

West Coast Eagles member and keen supporter.

The PersonalCover Division arranges cover for all domestic

classes, including high end homes and luxury vehicles.

“We try to maintain a high service level, in contrast to direct

insurers where clients speak to a different person every time.

It’s one-on-one service; there is also a great deal of satisfaction

in obtaining the right policy that suits their needs. This in turn creates a high retention rate and ongoing

referrals.

She remembers hail storms in Perth in 2010 as a particularly challenging time.

“It certainly tested us based on the sheer volume of claims but we worked very hard to make sure our

claims were paid in the shortest possible time frame – EBM don’t have a separate claims department as

such, as brokers like myself manage the claims having the best knowledge fo the cover placed and the

clients circumstances. I’m pleased to say we didn’t lose any clients over that period, so we must have been

doing something right,” she said.

The PersonalCover Division also oversees StudentCover, a low cost policy parents can take out over the

internet to insure their kids attending school against accident and injury.

Jonnine started her career in fashion, before switching to insurance for a more secure industry where

she could achieve more.

She’s been in insurance for about 20 years now, rising from a call centre position through underwriting and

into broking before being made Manager of the PersonalCover Division some six years ago.

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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 164 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, Coverholder at Lloyd’s Elkington Bishop Molineaux Insurance Brokers Pty Ltd | AFSLN 246986 | ABN 31 009 179 640 | Est 1975