Insurance industry close to full recovery after Asia-Pacific disasters.

Nearly two years on from the devastating series of natural disasters that saw floods, bushfires, earthquakes and tsunamis scar the Asia-Pacific region, the insurance and reinsurance industry is close to recovery. With the great majority of short-tail claims now settled, insurer capital is returning to regular levels and consequent capacity across a range of product lines and industries is bringing renewed opportunities for insurers and insured’s alike. Additionally, there is an increasing level of ‘alternate capital’ that is now entering the market and is prepared to operate at a far lower return on capital than traditional insurers and reinsurers.

That was the positive news greeting attendees from some of Australia’s leading business and insurance organisations at the Aon Advanced Risk Finance Conference in Melbourne last week.

According to Steve Nevett, Chairman, Pacific Region, Aon Risk Solutions, positive news for the insurance industry spells positive news for Australasian business, freeing insurers and reinsurers to invest in developing more targeted risk management solutions.

“The APAC region suffered terribly due to a string of natural disasters in 2010 and 2011. With insurer and reinsurer capital and capacity significantly depleted as a result, there was limited opportunity for innovation and development – despite the clear need for new solutions as industry risk profiles change,” explained Mr Nevett. “However the relatively clear run that we’ve had over the past two years in Australasia has helped the market find its feet and apply its growing capacity to underwriting new risks and expanding product offerings.”

In addition to examining broader global and local risk financing trends, the conference offered practical lessons in risk management techniques and strategies from leading corporations including UPS and Coca-Cola Amatil.

“A key lesson from both was that business cannot treat supply chain risk mitigation as a ‘set-and-forget’. Instead, each potential risk should be addressed in line with need and adjusted as circumstances change,” said Mr Nevett.

The UPS case study was a reminder to attendees that managing risk can be difficult for any corporation, regardless of size. From an internal perspective, best practice risk management is dependent on all the parts – people, processes and technology – working together seamlessly.

The Coca-Cola case study addressed supply chain risk management, drawing upon their experiences from the recent spate of natural disasters. It focused on how important it is for corporations to continually monitor the types of risks applicable to their individual situation so as to ensure they have appropriate protection – be it through intelligent and responsive risk management frameworks or risk transfer strategies such as insurance.

Perhaps the standout presentation was one that compared the daily risk management strategies of elite fighter pilots with those of risk management professionals in business.

Delivered by aeronautical daredevils, Afterburners Australia, it addressed the respective role of planning, briefing, execution and debriefing in any successful exercise. The key message from these expert risk-takers? That execution comprises only about 5% of success. It’s the other components that have a far greater influence.

“It’s hard to imagine a more risky occupation than being a fighter pilot, so it was of particular interest to note that planning, briefing and debriefing is their focus, over and above the flight itself. It’s a formula for success that is just as relevant to risk management professionals. And it’s our hope that much of what attendees heard and experienced at our conference will help them achieve that level of success and flawless execution.”

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AON expands regional footprint.

Aon has announced plans to extend its regional presence – with three new offices planned for opening in Geelong, Springwood and the South Coast region by the start of next year.

The decision to establish a presence in these regions follows increased interest and demand from local clients and will enable Aon to provide its growing client base with more direct and specialised customer support.

Commenting on these growth plans, Steve Nevett, Chairman, Pacific Region, Aon Risk Solutions, said:

“Our regional branch network has long been a strong contributor to our profitable growth and growing our presence in regional locations is part of our core business strategy. We have confidence in the SME opportunities in these locations and we very much want to strengthen our market presence there.

It’s an exciting time for Aon as we continue to help our clients understand their unique challenges – providing expert, practical guidance on broking and insurance solutions.”

Aon’s branch network currently extends across every state and territory with 28 offices in capital cities and regional centres.

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Mr. Lambrou is Aon’s current Head of the London Global Broking Centre and Chief Broking Officer for Europe, Middle East and Africa (EMEA). He has worked across both complex client placements and structured portfolio solutions in a variety of roles and, having spent some 16 years of his working life here, has a strong understanding of the Australian market.

Mr. Lambros will report to the current Australian ARS CEO, Steve Nevett, who will step down from this role but continue as Chairman, Pacific Region. Mr. Nevett has been the CEO of ARS in Australia for almost seven years and Chairman of the Pacific Region since 2010.

“We couldn’t be happier about Lambros’ appointment, which will further strengthen our already successful Australian leadership team.  Our clients can expect to benefit from his outstanding understanding of global insurance markets and we’re very much looking forward to cementing his expertise into our business here,” said Mr. Nevett.

“Being able to fill this very important role internally is particularly pleasing: we know Lambros and he knows us, which means he can hit the ground running on behalf of our clients and colleagues.”

Prior to his current role in London, Mr. Lambrou was based in Chicago as Head of Aon Analytics and then as Chief Operating Officer, Aon Broking. From 1992 to 2008 he worked for Aon in Australia in roles that spanned reinsurance and retail broking.

Mr. Lambrou’s appointment will allow Mr. Nevett to focus on the execution of Aon’s broader strategy across the Pacific and work to further build a number of key client and market relationships.

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Aon named ‘Large Broker of the Year’.

Aon Australia has been named ‘Large Broker of the Year’ and has won the ‘Generation i Youth Development and Employer of the Year’ category at the Australian Insurance Industry Awards, held in Sydney on Wednesday night.

Hosted by the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) and founding partner Asia Insurance Review (AIR), these are the peak awards honouring achievements in the Australian insurance industry.

Commenting on the wins, Steve Nevett, Chairman, Pacific Region, Aon Risk Solutions, said: “These awards are all about industry recognition. The fact that the awards are judged by our peers makes them all the more meaningful and is a genuine sign that we are making real strides as leaders in delivering client value.

“I’d like to thank all those involved in the activities and initiatives that contributed to our achievements, especially the dedication and quality of our people whose efforts made every day on behalf of our clients and our business have been recognised,” he said.

On winning the ‘Large Broker of the Year’ category, ANZIIF cited Aon’s “ongoing commitment to providing excellent services to clients”.  The judging panel was particularly impressed with Aon’s measurement initiatives and the client satisfaction achieved through activities such as the Aon Risk Management Benchmarking Survey, the Aon Risk Maturity Index, quarterly Insurance Market Update and its corporate publication, Currency.

Later in the evening, Aon also received the inaugural ‘Generation i Youth Development and Employer of the Year’ award, in recognition of its continued investment in and support of the industry through its development of younger industry members.

Aon Risk Solutions boasts an impressive 82 per cent retention rate among young professionals, which Aon attributes to employee development initiatives such as the ‘Learning Standards Framework’ and ‘Momentum through Mentoring’, along with scholarship and leadership initiatives such as its  ‘Emerge Early’ career development program and the ‘Geoff Freeman Scholarship’ to support career development.

“Supporting our people by investing in career development programs, particularly for the younger generation, creates a positive internal culture that fosters a sense of loyalty and excellence which ultimately flows through to our clients in the quality service we provide.  We have invested heavily in creating useful initiatives for all our people, but particularly for our younger employees, and while we see they really appreciate it, it’s also immensely rewarding to have our commitments in this regard recognised by the wider industry,” said Mr Nevett.

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