2014 | ADVERTISING KIT VOLUME 36 01 ISSUE NO. 1 / 2013 PRINT POST NO. PP 342748/00014 PP NO. POST PRINT FEATURE: SPREADING OUR WINGS: ANZIIF OPENS IN CHINA 展翅亮羽 澳新学会在中国开业 INDUSTRY LEADERS’ VIEWPOINT REINSURANCE: RIDING THE STORM? REINSURANCE TRENDS David Sandoe OAM: former Finity GM After riding out the storm of the There are a number of challenges looks back on forty years and forward GFC and record catastrophe losses, awaiting the industry in this changing to a new life promoting men’s health. how will the industry cope in 2013? global macro-economic environment. 6 / TRENDS 7 / TRENDS NATURAL DISASTERS IN AUSTRALIA TRENDS BILLION SYDNEY HAILSTORM As Victoria balances on the precipice of the most 4.29 APR 1999 dangerous month for bushfires, ICA has released further information regarding damage bills across AUSTRALIA’S CYCLONE TRACY affected states. Tasmania claims continue to rise past 4.09 DEC 1974 $52+ the $52 million mark, while Victorians are yet to feel COSTLIEST the full extent of weekend burns, its bill sitting NEWCASTLE EARTHQUAKE ANZIIF JOURNAL MILLION around $9 million (and climbing). 3.24 DEC 1974 TAS NATURAL Source: Insurance Council of Australia, QUEENSLAND FLOOD www.insurancecouncil.com.au. DISASTER 2.38 DEC 2010 1.74 HUNTER VALLEY STORMS MORE THAN THREE HUNDRED PEOPLE JUNE 2007 ARE HOMELESS AS A RESULT OF THE ASH WEDNESDAY – VIC TASMANIAN BUSHFIRES, ACCORDING 1.49 FEB 1983 300+ TO THE STATE GOVERNMENT. , CYCLONE YASI NSW4219 1.41 PEOPLE Source: Western Magazine, www.westernmagazine.com.au. FEB 2011 HOUSE FIRES 1.26 BLACK SATURDAY – VIC The ANZIIF Journal is the official publication INCREASE FEB 2009 Suncorp has warned the Federal government to step up efforts limiting Last year was a dangerous year for house fires: in 2012 there were PERTH HAILSTORM losses caused by natural disasters – or risk insurance costs spiraling 1.05 NA TURAL 21 preventable fire deaths, 649 fire injuries and more than 4,219 MAR 2010 out of control. More than 420 claims have been placed for the fires in house fires in NSW in 2012. The latest Fire & Rescue NSW (FRNSW) Tasmania, with insured losses estimated around $42 million so far: MELBOURNE HAILSTORM DISAS TERS figures show small increases in the number of fire deaths and house claims almost doubling from the estimated $26 million. 1.04 MAR 2010 fires compared to 2011. The biggest increase was the number of fire Source: The Age, www.theage.com.au. injuries, up 33 compared to 2011. Nearly three quarters of the fire Indexed for inflation of the Australian and New Zealand Institute victims were male and nearly 30% of those were aged more than 65 years. Source: NSW Government. Fire & Rescue NSW, Source: Insurance Council of Australia www.fire.nsw.gov.au. www.insurancenews.com.au. AFFORDABILITY After the disastrous floods of 2011, the of Insurance and Finance (ANZIIF). ANZIIF insurance industry made a significant FLOOD DATA BUSHFIRE effort to ensure flood cover was clear and available to those in areas of risk. However, Work to expand and centralise flood data for STRESSES just because it’s available, doesn’t mean future studies is well under way, according The recent bushfires in Victoria will it’s affordable. John Trowbridge, director to the Federal government’s response to undoubtedly lead to increased mental of the National Disaster Review, says that the Queensland floods inquiry. In a report health problems in a significant proportion the availability issue has been solved, to Parliament, then Attorney-General Nicola of those directly affected. There is is the leading provider of education, training but affordability is still a huge issue. He Roxon says the government has agreed in overwhelming evidence that disasters can is advocating that the government should full or in part with the 38 recommendations lead to a range of post-traumatic mental adopt a premium discount scheme and a relevant to the Commonwealth. One of the health problems. Over the past several publicly funded reinsurance pool to assist key recommendations of the Queensland decades, much research has informed us those most in need. Floods Commission of Inquiry is the creation about the array of psychological problems and maintenance of a “repository of data” arising from natural, and man-made, Source: The Australian, www.theaustralian.com.au. for a comprehensive flood study. disasters. and professional development services to the Source: Insurance News Australia, Source: Australian Psychological Society, www.insurancenews.com.au. www.psychology.org.au. Journal Vol 36 / Issue No.1 Journal Vol 36 / Issue No.1 insurance and financial services industry in Australia, New Zealand and the Asia Pacific 12 / VIEWPOINT 13 / VIEWPOINT “ I’ve worked for fifty years, with 42 of those in financial In 2002, I was invited to take up the role of General Manager at what was then called services/insurance, and have had a wonderful working life.” Trowbridge Consulting, later became region. Trowbridge Deloitte, and for the past eight years has been Finity Consulting, Q. David, you’ve been in the insurance Looking after half the world which is an actuarial and management- industry for more than forty years: In 1980, I was moved to Melbourne as an consultancy firm. where did you begin your career? assistant manager of a large branch. From I’ve worked for fifty years, with 42 of those A. I started my insurance career in 1971 as a there I went to Newcastle as deputy manager, in financial services/insurance, and have district inspector with the South British United and was later sent to the Auckland head had a wonderful working life. Now I’ve Insurance Company in Tamworth, country office, where I was one of two underwriters resigned from my full-time day job as New South Wales. That’s where I realised I who monitored the underwriting performance General Manager and a Principal of Finity The Journal is a professional issues-based, needed some insurance qualifications, so of all international operations. I looked after so that I can concentrate on my full-time I started studying with what was then called one half of the world for 18 months, while “night job” as the National Chair of the Australian Insurance Institute. Over the my colleague did the other half, and then Prostate Cancer Foundation of Australia. next few years I achieved my associateship, we swapped. The workload and travelling Pam and I also run the Sydney Adventist followed by my fellowship – and then my were intense. I was married then, with Hospital – Prostate Cancer Support Network, career took off. three small children. which has two meetings a month and a newsletter that goes to more than eight When I left school in 1962, I wanted to I completed my MBA at Auckland University, hundred recipients. be a vet, but my pass wasn’t good enough. came back to Sydney in 1986, and then Zurich bi-monthly publication, featuring articles from tapped me on the shoulder and I was appointed I thought the next best thing was a wool Q. How did your family cope Assistant General Manager in the technical broking stock and station agency, so I with all the moves? obtained a management cadetship with Elder division in Sydney. The career-development A. We’ve just downsized to our twenty-sixth Smith Goldsborough Mort. Subsequently, opportunities through the variety of roles home in 45 years of married life! The amazing a firm called Schute Bell Badgery Lumby I held over 15 years within South British part is we lived in our family home until just in Sydney offered me a similar job, and this United really prepared me well. recently for twenty years. So this indicates is where I met my wife, Pam. I did stints In 1989, I was appointed General Manager the pressure during those early years of all sectors of the insurance industry, including in Bathurst and Young, where I was a stock of the commercial division for the UK and travelling. We had the procedure down pat. and station agent. Ireland. I was in charge of 500-plus staff and Once I was appointed to a particular role, 18 branches, and did a lot of tripping around I was drafted into national service, and was we put our house on the market to sell it the UK and Ireland with regular visits to actually one of the fortunate ones – although quickly because it was always well prepared: Zurich, Switzerland. I had the opportunity I didn’t think so at the time – because I that was part of the formula. We’d arrive in to attend the IMD Business School in didn’t go to Vietnam with my mates as I had the new place and stay in a hotel while Pam Lausanne, Switzerland, to undertake a Zurich wanted to. I was allocated into the Psychology looked at about a hundred homes and created executive course. I also went to Northwestern general insurance, insurance broking, life Corps and fortunately was seconded to the a shortlist for me. We’d decide within two University in Chicago to complete another Pacific Island Regiment in Papua New Guinea, weeks, and by the end of two months we Zurich-sponsored executive course. which was a whole new experience, though would move into our new place because VIEWPOINT: These were exceptional opportunities and I had to convince my mates I was in the it took six weeks to complete the legals. INDUSTRY LEADERS Psych Corps for work, not for treatment! very beneficial to my career development. We couldn’t accumulate things; we couldn’t SHARE THEIR VIEWS. Zurich’s purchase of GRE Insurance Limited Pam and I were engaged during my time in have pets; we couldn’t have a boat; we brought me back to Australia in 1992 in the the army.