Farewell to FOS. Welcome, AFCA!

Finance

What you need to know:

  • From 1 November 2018, you will need to contact Australian Financial Complaints Authority (AFCA) to resolve any disputes about financial products and services provided by financial firms
  • Prior to lodging your complaint with AFCA/Financial Ombudsman Service (FOS), please contact us immediately as we will attempt to resolve your complaint as soon as possible

Preparations are currently underway for the FOS to transition into AFCA. AFCA will begin accepting financial services complaints from 1 November 2018. More details on AFCA can be accessed on their website.

“Consumers and small businesses across Australia will benefit from the establishment of AFCA”, said Kelly O’Dwyer, Minister for Revenue and Financial Services. “For the first time ever, consumers will be able to go to one place to resolve any kind of financial complaint, and the new AFCA scheme will operate under significantly higher monetary limits and compensation caps to boot”.

What should I do if I have a complaint?

Contact us with details about your complaint and we will do our best to resolve it quickly. If your complaint is not satisfactorily resolved, we will refer the matter to our Complaints Manager to investigate as a matter of priority. Alternatively, you can put your complaint in writing and mail it to our Melbourne or Sydney postal addresses noted below.

Melbourne
PO Box 4747
Melbourne VIC 3001
Sydney
PO Box R1782Royal Exchange NSW 2002

 

If your complaint cannot be further resolved to your satisfaction, you have the right to refer the matter to:

  • If lodged before 1 November 2018
    Financial Ombudsman Service Australia
    Online: www.fos.org.au
    Email: info@fos.org.au
    Phone: 1800 367 287
    Mail: Financial Ombudsman Service Limited, GPO Box 3, Melbourne VIC 3001, or
  • If lodged on or after 1 November 2018
    Australian Financial Complaints Authority
    Online: www.afca.org.au
    Email: info@afca.org.au
    Phone: 1800 931 678
    Mail: Australian Financial Complaints Authority, GPO Box 3, Melbourne VIC 3001

Need help?

If you would like more information about AFCA and these changes, please feel free to contact us on 03 9947 4333.

Our new brand and updates to the Honan Senior Executive Team

Last week, we launched our refreshed brand. Our new logo brings to life the importance we place on relationships, on delivering bespoke solutions, on constantly challenging and being courageous both for our clients, and ourselves. Whilst we look different–your service or relationship with us won’t change.

Honan has also made some changes at the senior executive level. Andrew Fluitsma has been appointed Chief Executive Officer of Australia and New Zealand and Brad Tymmons as Chief Executive Officer of Asia.

Damien Honan’s role has moved to Group Chief Executive Officer. Both Andrew and Brad have been instrumental in our growth journey and we are excited about the potential they bring to the business.

Click to read more in the Insurance News article.

Andrew Fluitsma features on Sky News to present on the importance of brokers.

Andrew Fluitsma features on Sky News to present on the importance of brokers.

As a Strata Manager it can be hard to keep up to date with every policy change.  Our role as your broker is to help navigate these changes.

Earlier this week, our Managing Director Andrew Fluitsma featured on Sky News – Smart Investing and spoke on the value of a broker, especially for Strata.

“With the Grenfell Tower and the Lacrosse building in Melbourne, it’s important to detail the way the risk is represented; the exclusions, the understanding of the market cycle, pricing, access to insurance companies, management of claims [and] legally qualified assistance–a lot of this is intermediated through a broker. It is important they select the right broker and see the value of the broker.”

Andrew also discusses the importance of having Landlords Insurance and how it’s distinguished from Home & Contents cover.

Click below to view the segments.

We welcome the appointment and updates across our Honan leadership: Travis Wendt & Kieran Drum.

We are pleased to announce the appointment of Travis Wendt as the Head of Broking & Carrier Management and Kieran Drum as National Head of Strata.

Travis will take charge of managing the group’s property and casualty placements, as well as its cluster and broader insurance supplier relationships. Travis will also work together with Henry Clark, Head of Financial and Professional Risks, on strategic carrier initiatives. Travis’ previous positions include Marsh and Aon, working on complex placements across numerous sectors specialising in energy markets before his move to Honan.

Kieran, having joined Honan in 2015, steps up from his former role as Head of Risk Consulting to support Honan’s commitment to providing resources and expertise to the growth and increasing sophistication of strata and property market in Australia. As our Managing Director, Andrew Fluitsma states, “We are heavily involved in the strata and property sectors. Through Honan’s expertise and insight, we are able to leverage marketplace insight/data, strong relationships with insurers and industry bodies to provide best-in-class solutions and expert advice”. Kieran’s previous experience includes Aon, Wills Towers Watson and Suncorp Group.

Travis and Kieran will be based in Melbourne.

Update to the NSW Coal Mines Insurance scheme

Industry

With changes to the Coal Industry Act 2001 that will come into effect on 1 July 2018, here are the key updates you need to be across to ensure you’re compliant.

What you need to know:

  • As of 1 July 2018, any employer of employees who work in or about a coal mine will be required to be insured for workers compensation
  • The approved workers compensation company under the Act is Coal Mines Insurance
  • A three-month grace period from July (by 1 October) has been granted to allow sufficient time for employers to ensure compliance

For technical advice on the scheme or any other workplace risk related queries, please feel free to contact our team on workplacerisk@honan.com.au.

Victoria Workers Compensation Update 2018-19

In this annual update, we provide an overview of the following topics.

  • Workers Compensation Renewal Notice
  • Premium Discounts and Premium Funding
  • Claims experience period 2018/19
  • Certificate of Currency
  • Remuneration details
  • How remuneration impacts premium
  • Have you reviewed your industry classification?
  • Key dates

Workers Compensation Renewal invoice

Victorian renewal premium invoices will be available from 12 July 2018.

Premium projections and industry classification comparisons are now available from Honan Workplace Risk Consultants based on your available claims statements and estimated wages. Please contact your Honan Workplace Risk Consultant if you would like further information.

VicWorkersCompcallout1

Premium Discounts and Premium Funding

To be eligible for 5% discount on your premium, please pay the full amount (the annual payment due as listed on your invoice) by 6 August 2018. Employers must also:

  • Pay any outstanding balance from 2017/18 (or previous years); and
  • Pay your full 2018/19 premium (less the 5% discount) by 6 August 2018.

Honan Tip!

You may also wish to consider a premium funding arrangement with Honan. The arrangement can involve financing the full payment as a lump sum, typically over a series of 6 – 10 instalments, to save upfront. Please contact your Honan broker if you would like to explore this option.

Claims experience period 2018/19

WorkSafe Victoria has confirmed that the claims experience period for the 2018/19 premium year will be maintained at 2.5 years.

This will mean that your claims experience for the period 1 January 2015 to 30 June 2017 will be used to calculate 2018/19 year’s renewal. This continues the pattern of recent policy years.

The maximum cost of any individual claim that will be included in your premium calculation is $390,600. (This amount is indexed each year and is an increase from last year’s calculation of $376,100.)

A limit of 30% is placed on premium rate increases per year to protect your business from premium rate fluctuations due to prior claims you may have incurred.

Certificate of Currency

If there is no outstanding premium to pay on your account, you can obtain a Certificate of Currency from 5 June either online or by requesting this from Honan Workplace Risk Consultants.

Are your remuneration details up to date?

Any wage updates received before 30 June will be reflected in your 2018/19 premium calculation. Otherwise, WorkSafe calculates your premium based on your remuneration estimate for 2017-18, indexed by 4.75%.

Our recommendation

To avoid any potential financial penalty, you will need to provide your Claims Agent a revised remuneration estimate within 28 days, if, at any time, you become aware that:

  • What you expect to pay in remuneration is 20% or above your current estimate, or
  • What you have paid in remuneration to date is greater than your current estimate for the whole financial year.

To update your remuneration or any other policy details, please visit WorkSafe’s Online Employer Services portal or seek advice from your Honan Workplace Risk Consultant.

You must certify your Rateable Remuneration by 30 October 2018 for 2017-18 (if your rateable remuneration for 2016–2017 was more than $200,000).

How remuneration impacts premium

Victorian remuneration includes wages, salaries, superannuation and other benefits you pay to your workers.

The below highlights how premiums are calculated based on remuneration.

VickWorkersComptable

Have you reviewed your industry classification?

Premiums are largely influenced by the industry classification of your business. If the industry classification is incorrect on your policy, you may be paying considerably more for premium than you should be.

Our recommendation

Review your industry classification before your renewal date. Contact your Honan Workplace Risk Consultant for any further information.

Key dates summary and parameters

The key dates summary and parameters for VIC workers compensation insurance premiums in the 2018/19 Premiums Order are listed as below.

  • 5 June 2018 – Certificate of Currency available
  • 12 July 2018 – Victorian premium renewal invoices available
  • 7 August 2018 – Premium due for 5% discount
  • 1 January 2015 to 30 June 2016 – Claims Reporting Period
  • 1 July 2014 to 30 June 2016 – Remuneration Experience Period
  • Minimum premium – $202 ($222.20 including GST)
  • Maximum claims cost for an individual claim – $390,600
  • Maximum legal costs for an individual claim – $73,100
  • Maximum recovery – for an individual claim allocated to an employers’ performance calculation – $390,600.

We’ll be in touch for any further developments. In the meantime, if you have any further queries, contact your Honan Workplace Risk Consultant for further information.

Our Experts

Kieran Drum

Head of Risk Consulting

kierand@honan.com.au

+61 488 688 656

Jules Paolino

Workplace Risk Consultant

julesr@honan.com.au

+61 499 799 464

Sharon Rutherford

Workplace Risk Consultant

sharonr@honan.com.au

+61 499 799 558

Tim Clifford

Workplace Risk Consultant

timc@honan.com.au

+61 499 799 456

Honan Insurance Group Pty Ltd (“Honan”) ABN 67 005 372 396, AFSL 246749. Honan is not the underwriter for any insurance product that you may decide upon and insurance is issued subject to the terms, conditions and exclusions as set by the particular underwriter.
Please note this information provided is for general advice only and does not factor in the objectives, needs or financial situation of the client. It is important for you to consider these matters and read the Product Disclosure Statement (PDS) and policy before deciding if this product is right for you. You can get a copy of the PDS on our website www.honan.com.au or by calling 03 9947 4333.

Are you confident in your combustible cladding exposures?

Strata News

There is often confusion around how to identify, reduce and eliminate cladding fire risk for property.

We have produced a handy guide for property owners, managers and occupiers to help them better understand their risk exposures to combustible cladding.

For more information, you can contact Kieran Drum on kieran.drum@honan.com.au, or Luke Hsu at luke.hsu@honan.com.au, or review our detailed guide below.

Honan Risk Consulting – Combustible Cladding & ACP Exposures 10 May 2018

Are you prepared for the mandatory Data Breach Notification regime?

Industry

Starting today, Thursday 22nd February, there is an important change to the way companies are required to manage and report data breaches.

The Australian Government introduced the Privacy Amendment (Notifiable Data Breaches) Bill 2016 to strengthen the protection of privacy and personal information, and to improve organisational transparency regarding data breaches.

Companies are now obliged to notify any individual whose personal information is involved in an eligible data breach that is likely to result in serious harm. Companies are also required to notify the Office of the Australian Information Commissioner (OAIC) of the eligible data breach.

Businesses should prepare by taking the following steps:

    1. Reviewing and understanding the data that is held and identifying personal information
    2. Revisiting the IT security policy and amending as appropriate
    3. Developing a sound data breach response plan with clear lines of authority
    4. Updating internal privacy and breach policies as appropriate
    5. Educating and training staff whilst setting out their responsibilities
    6. Taking out adequate insurance, including specific cyber cover. 

 

Cyber cover, whilst often overlooked, is fast emerging as one of the key ways to protect yourself from the risk of cyber-attacks. At Honan, we are dedicated to leading the market in providing our clients with comprehensive coverage options and have advisers with specialty knowledge of Cyber policies.

Give yourself the confidence that you’re covered. Call one of our advisers and we will assist you in analysing and understanding how your current insurance program will protect you amongst the changing regulatory and business environment.

For more background information on Cyber cover visit http://www.honan.com.au/the-cyber-minefield-for-directors-and-officers/

 

Some risk management tips:

  • Purchase a Cyber insurance policy
  • Write and put in place a data breach response plan in the event of a breach
  • Put in place a tried and tested business continuity plan for network downtime
  • Make sure you are aware of all regulatory requirements for all territories you work in or distribute to
  • Conduct employee training to ensure your staff are aware of risks the company faces
  • Put in place a “bring your own device to work” policy if you allow employees to use their own devices for work
  • Look at contracts with third party vendors providing data storage. Are there limitations of liability?
  • Conduct an external penetration test to highlight potential areas to address
  • Review system protection you have in place e.g. anti-virus, firewalls etc. and update regularly
  • Keep all your systems and software patched up
  • Enable multi-factor authentication
  • Enforce strong password policies

 

Honan Insurance Group Pty Ltd (“Honan”) ABN 67 005 372 396, AFSL 246749. Honan is not the underwriter for any insurance product that you may decide upon and insurance is issued subject to the terms, conditions and exclusions as set by the particular underwriter.

 Please note this information provided is for general advice only and does not factor in the objectives, needs or financial situation of the client. It is important for you to consider these matters and read the Product Disclosure Statement (PDS) and policy before deciding if this product is right for you. You can get a copy of the PDS by calling 03 9947 4333.

 

 

Are you prepared for the changes to icare and the new claims model?

From January 1, the new icare Claims Management model came into effect.

As part of the developments to icare, the new claims model was introduced at the start of 2018 in NSW.

The new model has moved away from the traditional claims approach. The main changes involve the way new claims will be lodged in 2018. All new claims will be lodged with Employers Mutual (EML), with existing claims transitioning to GIO or remain with Allianz.

We’ve summarised the main changes for you, click here for more information.

For more information, contact your Honan broker on 1800 981 377 or workplacerisk@honan.com.au.

Honan Insurance Group & MBS Insurance partner in JV to improve life insurance solutions for clients

Life Insurance

Joint Media Release

Honan Insurance Group & MBS Insurance partner in JV to improve life insurance solutions for clients

Tuesday December 5 2017

Australian-owned insurance and financial services broker Honan Insurance Group CEO Damien Honan and leading risk specialist practice MBS Insurance partner Drew Burden have announced they have joined forces to create a new company Honan Life Insurance Group.

Launched yesterday, the new life insurance venture is an important step in Honan’s 53 year history of leveraging a broad network of specialists to bring relevant expertise to its clients.

Commenting further, Damien Honan said since the inception of the company over five decades ago, the group has operated to ensure clients are provided the very best insurance and financial solutions to address their needs.

“The alliance with MBS Insurance under the Honan Life Insurance Group gives us the ability to enhance our marketplace and client offering with a more inclusive integrated insurance service”, added Damien Honan.

Drew Burden said, “As a leading life insurance specialist, we are excited to be joining Honan Insurance Group under this new brand. Collectively we bring together the best of our respective organisations to create a new way to engage with clients and support them to protect their financial futures”.

Headquartered in Sydney, MBS Insurance was started in 2006. Over the years the practice has grown steadily through adherence to the highest standards of best practice and through its business infrastructure provides a comprehensive risk offering to clients.

Today, MBS Insurance is a highly regarded rapidly growing national risk specialist. The JV with Honan Insurance Group is both an important milestone and acknowledgement of the organisation’s standing in the financial advisory sector.

Australia is one of the most highly developed and fastest growing economies in the world underpinned by a financial services sector with an overwhelming volume of offerings and complexities between standalone insurance products and offerings inside superannuation funds.

“Through specialisation MBS Insurance has been very successful in this environment over a long time and the JV with Honan Insurance Group positions our brand as an industry leader with distinctive strengths”, Drew Burden said.

Honan Insurance Group has over 180 employees with offices in Melbourne, Sydney, Brisbane, Perth, New Zealand, Singapore and the US.  Evolving into a global organisation was achieved in November 2001 when the group became a member of the Worldwide Broker Network (WBN), the world’s largest network of independent property and casualty brokers and employee benefits consultants, giving Honan the capability to provide a truly integrated global service.

Over the years Honan’s partnership with the WBN has strengthened, with Honan solidifying their position as the Risk Partner of Choice in Australia and New Zealand, eventually encompassing the entire Asia Pacific region.

Damien Honan concluded, “Honan Life Insurance Group is on an exciting growth journey and this new alliance will provide a valuable point of difference for us as an organisation and increase the value we provide to our clients.”

Issued jointly by

Honan Insurance Group    www.honan.com.au

&

MBS Insurance                   www.mbsinsurance.com.au

 

Media Enquiries:

Mr. Joe Perri

Joe Perri & Associates Pty Ltd

Telephone / fax:    +61 3 9324 0362

Mobile:                  +61 412 112 545

Email:                    jperri@joeperri.com.au

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