The Talent Drought
Why I chose work from home for my next employee
When recruiting for the next position, I decided that I would take the route of a work from home position, rather than an employee in our Brisbane CBD office. Being in the industry for so long, I have noticed that there is definitely a talent drought. The good Brokers have either started their own businesses, or they have the perfect working environment (good salary, work life balance, career advancement opportunities, friends, mentors etc) at their current role, that you couldn't convince them to jump ship even if you offered them a million dollars. It seemed rare to find great talent.
I was nervous at the thought on how long it would take to fill the role, or the level of quality of candidates that would apply.
Fortunately, offering a work from home role was exactly what was needed. Skilled, well known and reputable candidates were interested, from all different states of Australia. Now, I had an abundance of choice. Is this the key to finding great talent during a drought?
The Talent Drought
I can only speculate why the insurance broking sector is facing a lack of skilled candidates for new roles and positions. The industry is lacking younger professionals entering the field to replace the senior Brokers of this generation.
It also could be that industry is not well known of? I know that I've spoken to many potential clients before, and they hadn't realised that insurance brokers existed, or what services they provide.
For the purpose of this, an Insurance Broker is your biggest advocate for your financial security. Lacking sufficient insurance protection can put your business, personal assets, and financial stability in jeopardy. Our role is to provide you with a shield against these risks by providing tailored insurance policies and ongoing support.
The rise of insuretech
Insurtech is a rapidly growing sector that aims to modernise and simplify the insurance experience through technological advancements. The use of AI, automated software, online quote and bind platforms surely will have a major impact on the industry talent.
Other industries/the Gig Economy, and ECommerce
E-commerce and side hussles can offer attractive and flexible work life balance, the potential to earn more income quicker (if successful), and be more rewarding creating something of your own, drawing potential candidates away from traditional fields like insurance broking.
Skills
The job requires a unique combination of sales skills, compliance understanding, and detailed knowledge of a range of insurance products. This can really rule out a lot of potential candidates given it's complexity.
Offshore help
Offshoring can be more cost-effective for insurance brokerages. Lower labour costs mean that they can get the same work done for less money. However, this has a negative impact on the local insurance talent. Instead of hiring younger entry level juniors to do basic admin and assistant roles, allowing for more talent to start a career in insurance broking, these jobs are going to offshores. I can see this having a negative effect on the pool of candidates in the coming years.
To mitigate this talent drought, the industry needs to enhance its image and invest in targeted recruitment to the younger generation and school leavers. I also believe that a more flexible working environment is needed, such as the opportunity to work from home.
What are your thoughts?
Your needs, not our wallet
Choosing an Insurance Broker with experience is the smartest move you can make for your business.
Maybe it's that time of year again, and your insurance policy has fallen due for renewal; or you're looking at purchasing insurance for the first time. With the cost of living (and everything in between) increasing, so are insurance premiums. You have to do your due diligence and research to ensure that you're not being over charged for the right insurance coverage.
Fortunately, Morgan Insurance Brokers provide exactly this service. With access to over 150 insurers and underwriters, this is our speciality.
In the instance where you've approached multiple insurance brokers, which is very common, and you receive a quote back that's close to, or even cheaper than one we've provided, your comparative analysis on which policy you should take up should not be based on purely price.
With the skill and talent shortage in the industry of late, insurance brokers are not equal in the service and knowledge they can provide. A lot of insurance brokerages can sell you insurance, but not all can provide you with the service and experience you need. Just because you're dealing with an Insurance Broker, does not mean you're dealing with an Insurance Professional.
Asking your prospective insurance broker about their experience is crucial because insurance is a complex field, and a knowledgeable broker can provide valuable insights and guidance on policy covers, ongoing support, and claims service. Here's why experience matters:
Expertise in Navigating Complexity
Insurance involves intricate policies, regulations, and risk assessments. As an experienced broker, have encountered various scenarios and can navigate the complexities of insurance to provide tailored advice.
Risk Assessment Skills
As experienced brokers, we are skilled at assessing risks specific to your industry and business. We can identify potential gaps in coverage and recommend suitable policies to mitigate risks effectively.
Relationships with Insurers
As we've been in the game for over a decade, close to two, we have established relationships with insurers. This means better negotiation capabilities, potentially securing more favourable terms, coverage, or premiums for your business.
Claims Handling Experience
In the unfortunate event of a claim, an experienced broker is essential. We can guide you through the claims process, ensuring a smoother resolution and advocating on your behalf to maximise the benefits of your policy.
Your needs, not our wallet
As an experienced broker, we prioritise providing sound advice over making a quick sale. We understand the importance of building long-term relationships and ensuring you have the right coverage for your specific needs. There are also instances where we turn away potential clients if their approach to insurance does not match ours.
Industry Knowledge
Different industries have unique insurance requirements. An experienced broker with knowledge of your industry can tailor policies to address specific risks and compliance needs.
While cost is a significant factor in choosing insurance, prioritising the broker's expertise and reputation is essential. As your Insurance Broker, we understand your business, have industry knowledge, and can provide reliable advice that can ultimately help you secure the most suitable coverage for your needs.
Inflation and the impacts on insurance premiums
Understanding how insurers collect premiums and the role that they play in providing insurance coverage
Insurers are important entities that provide peace of mind and protection for individuals, families, and businesses all across the world. One of the primary ways in which they fulfill this crucial function is by collecting premiums from policyholders - these are payments made by customers in exchange for insurance coverage, which can protect them from unexpected events, losses, and damages. The process of collecting these premiums is vital because it allows insurers to maintain financial stability and security, which, in turn, enables them to fulfill their commitments to policyholders. By understanding how insurers collect premiums and the role that they play in providing insurance coverage, individuals can have greater confidence in their ability to protect themselves and their assets in an unpredictable and ever-changing world.
Adjusting premiums to reflect the increased replacement costs
In the current economy, inflation is a looming concern that is causing the price of goods and services to rise. As a result, major insurance providers are taking proactive measures to ensure they can continue to offer adequate coverage and reliable service to their clients. A key part of this means adjusting premiums to reflect the increased replacement costs for homes and belongings. Insurance providers must stay ahead of the rising cost of living to provide the best possible coverage and care to their valued customers. By doing so, they can help protect households and communities against the financial burdens that often arise in times of crisis.
Expenses for insurance companies
Insurance companies have to bear numerous expenses in the course of their operations. Besides the direct costs of underwriting policies and managing claims, they also incur other expenses such as administrative costs, employee salaries, marketing expenses, and other operational costs. These costs can directly impact the overall cost of premiums charged for insurance services.
The overall cost of insurance
Administrative costs include expenses such as rent, utilities, and technology infrastructure, among others, which are essential for running insurance operations. Salaries for employees including underwriters, agents, and customer service representatives, form another significant cost for insurance providers. Marketing, advertising, and promotional expenses are also crucial to insurers, as they help them attract new customers and retain existing ones. All in all, these necessary operational costs are essential for any insurance provider to operate effectively. Nonetheless, they form part of the overall cost of insurance and contribute to the premiums paid by policyholders.
The generation of additional income
The generation of additional income is crucial for insurers as it enables them to offset the costs of running their business. To achieve this, insurers invest a percentage of the premiums they receive from their clients. This is a common practice among insurance providers, as investing can provide a source of revenue that compliments their core business operations. As a result, investment decisions can greatly impact an insurer's financial performance. If investment returns are low, the insurer may have to rely more heavily on the premiums they charge their clients to generate income, which can ultimately lead to higher premium costs.
The world of insurance is highly complex
As everyone knows, the world of insurance is highly complex. One of the factors that plays a critical role in the calculation of premiums is the performance of an insurer's investment portfolio. A variety of economic conditions, such as changes in interest rates and market fluctuations, can have a significant impact on how a portfolio performs. This, in turn, can affect the amount that consumers ultimately pay to secure the coverage they need. Since insurance companies must rely on their portfolios to generate the necessary funds to pay out claims, it is essential for them to closely monitor and manage their investments so that they can remain financially stable and continue providing their customers with the peace of mind and protection they require.
Need help with your insurance? Contact Morgan Insurance Brokers today!
Care, Custody and Control Insurance
What does property in your physical and legal control/ care custody and control insurance cover?
re, Custody, and Control insurance or property in your physical or legal control insurance is usually an automatic sublimit under a public liability insurance policy.
It is designed to protect businesses that have temporary possession of someone else's property with the intent to be worked upon/part of your insured business activities.
Examples could include
- Phones that are left overnight at phone repair stores
- Jewellery or watch repair stores
- Bicycle repair stores
- Computer repair stores
- Storage Facilities
This extension can offer cover to your customers goods if they have been damaged accidently whilst in the possession and under the care of your business.
Standard exclusions under a public liability insurance policy will still apply to this additional benefit.
Exclusions such as damages to motor vehicles, faulty workmanship, and damage to your own goods are a few examples.
The automatic sublimit is standardly $250,000 but can fluctuate between different insurers and occupations
Some insurers depending on your occupation will exclude this completely.
For example, a removalist, courier or transport operator as standard would have this exclusion applied. It would then be in the best interest of transport operators to take out a transit policy to cover their customers goods whilst in their custody, and whilst in transit.
Another example is a storage facility. It is quite difficult to obtain this extension for storage facilities given the high values of items insured at one address.
Contact Morgan Insurance Brokers today to discuss your public liability insurance policy.
What is a retroactive date?
What is a retroactive date?
A retroactive date in insurance, standardly when used within a Professional indemnity insurance policy refers to the date and time that your policy will respond to events that could arise in a claim.
Retroactive dates are also commonly used in Management Liability Insurance policies as well.
For example, if your retroactive date was today, then your Professional Indemnity Insurance policy would not cover you for claims made against you for actions or events that happened prior to today's date.
If a notification, or incident that could arise which would trigger your Professional Indemnity insurance policy, the policy would only respond to events that occured on or after the retroactive date.
Standardly, you have the option to choose an unlimited retroactive date or specify a specific date.
Is an unlimited retroactive date more expensive?
If you opt for an unlimited retroactive date to cover for any events in the past, the premium could be more expensive as it offers a greater level of protection for your business.
It is important to note that when you are transferring to a different insurer at any point in time, some insurers will request to see proof of your previous retroactive date before they will match your previous date - whether it be unlimited, or a specific date. A specific date could be the date where you first took out insurance.
Morgan Insurance Brokers can assess your cover requirements, along with your budget to provide you with comprehensive quotes that will protect your business from the risks they face. Contact us today.
Why it’s important that your subcontractors have their own insurances before working with you
Using subcontractors as part of your business is a very common occurrence. It is a good business strategy of outsourcing your work without the commitment and overheads of employing staff. However, did you know that although you engage subcontractors, you could be responsible for their actions?
In some instances, a business may be involved in a public liability claim and incur legal and defence costs even if they weren't directly responsible for the incident.
There are a few scenarios in which a business might be involved in a public liability claim without being directly responsible:
• Vicarious liability: vicarious liability occurs if an incident involves one of your subcontractors the youve engaged as part of your work, job or contract, where your business might be vicariously liable for the actions or negligence of their subcontractors while they were acting within the scope of their contract with you.
• Negligent supervision or inadequate induction processes: if your business has failed to provide adequate training or supervision to your contractors, you might be held partially responsible for the incident. If negligent supervision is proven, your business may be held financially responsible for the damages caused by your subcontractors.
What are the financial implications of being vicariously liable for the actions of my subcontractors?
There could be legal and defence costs incurred to understand and determine the facts of your the incident that has occurred and your level of involvement, and your potential contribution to the compensation claim brought against your company.
How can Public Liability insurance protect my business?
Public liability insurance is an insurance cover that protects businesses and individuals from claims brought against them for actual and alleged negligence to third parties that can result in bodily injury, or property damage.
 Who does Public liability insurance cover?
Public liability insurance will cover the named Insured on the policy. For example, a business could be an insured under the policy, but their employees could also be covered.
Are my subcontractors covered for their negligence under my public liability insurance policy?
If a subcontractor was found negligent and deemed responsible for damages, it is important that they have their own Public liability policy as your policy will not extend to cover their negligence.
Do I need to note subcontractors on my public liability insurance policy?
Ensuring that you disclose the use of subcontractors on your policy is an important part of your insurance cover. The use of subcontractors could increase the perceived risk for the insurance companies. They can also impose higher excess and different policy conditions as a result. Failure to disclose the subcontractors could limit your coverage when you come time to claim.
It is important to review your subcontractors' insurance coverage before they start working with you to ensure that the insurance coverage policies are adequate to protect your business, and theirs. It is recommended that you site their Certificates of Currency prior to them starting work.
Contact us to discuss your Public Liability Insurance in more detail to ensure you're adeqduately covered.
What Insurances do I need when entering a Commercial Lease?
Depending on the requirements of your landlord and real estate, there a few different Insurances that your business may be required to insure as part of your lease and Contractual Requirements. Bear in mind, that all leases are different and may not require all of those. The below mentioned Insurances fall part of a comprehensive Business Package Insurance Policy and can be tailored to meet your needs.
Public Liability Insurance
Public liability insurance protects your business from third party property or bodily injury claims where you're found liable for. It can pay the legal, defence and compensation costs in the event a claim is brought against your business.
The lease may require that you need $20,000,000 as a minimum. Some leases do not specify an amount.
Property Insurance
As you're occupying a physical office, retail space, warehouse or the likes, insuring your contents and stock against events such as fire or natural perils like storm is the obvious choice to protect your assets from the unknown.
Business Interruption Insurance
This insurance covers financial losses that may occur if your business is unable to trade because of a fire or natural peril. It will replace your lost business income until your business is back to pre-event turnover levels.
Plate Glass Insurance
Glass Insurance covers your internal or external, or both for Breakage.
Engaging Morgan Insurance Brokers means that we can review your lease and provide you with an insurance solution that will align with your lease requirements whilst also protecting your business.
Do I need Professional Indemnity Insurance?
What is professional indemnity insurance?
Professional indemnity insurance is a type of insurance coverage designed to protect professionals from claims that arise from errors, omissions, or negligence in their professional services that they've provided.
What industries need professional indemnity insurance?
Occupations and industries that provide professional services, and or give advice such as consultants, accountants, lawyers, architects, engineers. This is not an exhaustive list.
Do I need Professional Indemnity Insurance?
When professionals provide advice or services, there could be a risk that their work may result in financial losses. Professional indemnity insurance helps by protecting you and your business by providing coverage for legal costs and amounts claimed in compensation.
Examples of Professional indemnity claims
- Professional negligence Breach of professional duty
- Misrepresentation Defamation
- Infringement of intellectual property rights.
These are a few examples that could be covered under a professional indemnity insurance.
How using Morgan Insurance Brokers can help your business
Morgan Insurance Brokers can help guide you through obtaining a Professional Indemnity insurance policy that is going to best protect your business. Professional indemnity insurance policies can have quite a few conditions and exclusions that are difficult to interpret. We also have access to a large panel of providers that you may not have access to directly.
Contact us today.
Do I need Plate Glass Insurance?
Glass insurance may be a requirement of your commercial lease, or you may find yourself wanting to insure for glass if your unit or shop front has a large amount of glass. This can include internal and external glass.
What does glass insurance cover?
Glass cover can cover emergency costs to secure your address if there was a glass breakage.
It can pay for the cost of repairing or placing the broken glass.
Glass insurance can also pay for the costs incurred to replace sign writing if it needs to be replaced in the event of glass breakage.
How much am I insured for?
Standardly, the glass insurance limit is automatic up to $10,000. However, if you have items of glass that exceed this amount, we can look to get these covered as well.
Do I have to pay an excess?
An excess is usually applicable on all glass claims. $250 is the minimum excess that we see under a standard business package policy.
Contact Morgan Insurance Brokers today for a glass quote for your business!
