This year is shaping up to be one of the worst in terms of catastrophe losses the insurance industry has ever incurred, as data for the third quarter of 2018 paints a grim picture.

During Q3 2018, the US was beset by the destructive Hurricanes Florence and Michael, which together caused more than $31 billion in economic damages. The quarter also saw wildfires erupt in some parts of the country. California – in particular – continues to suffer its worst fire season on state record, having experienced 32 wildfires in Q3 2018 alone.

In Asia, meanwhile, Typhoons Jebi and Trami devastated Japan, while Southeast Asia had to deal with Typhoon Mangkhut.

“This has been a year in which the frequency of catastrophes seems potentially larger than last year,” RMS meteorologist and event response manager Tom Sabbatelli told The Financial Times.

The Financial Times analysed third-quarter filings from over 20 of the world’s major insurers and found that the companies have recorded losses of about $9.1 billion.

RMS is anticipating up to $20 billion of combined insured losses from Hurricanes Florence, Michael and Jebi alone.

These loss projections make 2018 one of the worst years in the past decade for natural catastrophes.

“[2018] is an above-average year. It is a reminder to the market that we shouldn’t expect a return to [the low level of natural catastrophes] in 2015 and 2016,” explained Jefferies analyst Philip Kett.

Of the many insurers affected by third quarter losses, AIG is expecting the biggest hit. In an earlier release, the company projected pre-tax catastrophe losses for the third quarter at around $1.5 billion to $1.7 billion.

This article was first published on insurancebusinessmag

Few things are more devastating in business than thinking you’re covered for a loss only to find out your insurer has rejected your claim. Here’s how to appeal that decision.

Just because you’ve received bad news, doesn’t mean you should give up.

There are a number of avenues for appealing such a decision, and a good broker can be your best ally.

How you appeal a rejected insurance claim depends on the nature of the rejection, which usually comes down to one of two things.

“It’s either rejected because it doesn’t fall within the operative clause or an exclusion applies. So that’s a wording type issue,” says Steadfast’s Broker Technical Manager, Michael White.

“Or it might be a factual issue.”

White provides the example of a rejected claim for storm damage to a property – the owner may claim that damage was the result of a storm, while the insurer argues that the damage is caused by gradual deterioration.

“It’s hard to believe, but lots of people make claims when they don’t actually have insurance,” says White. “Or they’ve insured their business but they haven’t insured themselves for theft or business interruption.”

Insurance brokers have renewed calls for businesses to ensure they have cyber-risk management and cyber insurance in place to mitigate against increasing cyberattacks, following new statistics on notifiable breaches.

The Office of the Australian Information Commissioner (OAIC) has revealed that from April 01 to June 30, it logged 242 notifications under the Notifiable Data Breaches (NDB) scheme; and had posted the biggest month-on-month surge for data breaches, receiving 55 notifications in March 2018, which spiralled to 90 in June.

Of the attacks registered by the OAIC over the quarter, 59% were criminal or malicious in nature, and 36% were due to human error – highlighting that more can be done to boost cyber security for businesses’ own protection.

“Cyber is no longer silent,” with mandatory breach notifications now a reality, cyber breaches are part of the public sphere, which brings with it challenges for all businesses. From a compliance perspective, it is better to be safe than sorry. If you think you fall under the regulation, a framework you put in place will only benefit your business from a security and trust standpoint.”

The majority of the attacks were due to cyber incidents, such as phishing, malware, and ransomware, as 97 were reported in total. Theft of paperwork or data storage devices was the second-most popular attack method with 31 breaches, followed by social engineering and insider threats as the third-most common attack method with seven breaches each.

Cyber insurance and adequate protection against cyberattacks is paramount.

Conversations around cyber insurance have picked up markedly in the last 12 months following new legislation and a series of major global ransomware attacks in 2017. As legislation at home and abroad continues to develop, it is key that all businesses understand the cyber exposures they face and how best to mitigate against the threat of breaches that could be costly from both a financial and reputational perspective.”

Contact Sarina Insurance to discuss if cyber insurance can protect your business.

Did you know that one in five Australian parents will be unable to work, or will die, before they hit retirement age? Research has also shown that 81 per cent of Australians think that life insurance is too expensive, but 61 per cent of them have actually overestimated the cost.

Life insurance is one of the last things most people want to think about, but it is pretty important.

If you were to get diagnosed with a terminal illness or die today, what would happen to your family financially? Life insurance is designed to mitigate the risks associated with this in the event of serious illness or death with a lump sum being paid to your loved ones. Some life insurance policies will also include funeral cover. So, as morbid as the topic is, understanding life insurance is a must!

Here, we look at five life insurance facts that a lot of people don’t know about!

Life Insurance in Australia is More Than 180-Years Old

The first Australian life insurance policy was sold by Alliance Assurance (now known as Asteron Life Limited) way back in September of 1833. The policy was sold to Joseph Tice Gellibrand, who was a barrister for the Supreme Court of Tasmania and the state’s first Attorney-General.

Alliance Assurance then paid their first claim on a life insured when Gellibrand went missing near Geelong in February of 1837. He and his companion, George B. L. Hesse were travelling to Melbourne from Geelong via the Barwon River and the Leigh River but never arrived at their destination. It’s suspected the two men got lost and died in the heat of the summer. Search parties were arranged but the men’s bodies were never found.

There Are More Than 30 Active Providers in Australia’s Life Insurance Marketplace

Since Asteron first introduced life insurance to the Australian marketplace in the early 1830s, dozens of other providers with a diverse range of product and service offerings have joined the field.

Australia currently has 32 life insurance providers including the likes of AAMI, Bendigo Bank, Bupa, Woolworths, GIO and many more!

Most Life Insurance Providers Will Renew Your Policy Even if Your Health Condition Changes

In most cases, once you’ve taken out your life insurance policy you don’t necessarily have to notify your insurer of any changes to your health. Allowing you pay your premiums on time, your policy can continue to be renewed up until the maximum age limit that’s listed in the policy. This means that taking out life insurance when you’re young can be beneficial as you get older and your health starts to deteriorate.

Life Insurance Encompasses More Than Just Death Cover

Most life insurance policies will pay a lump sum payment upon death to the people named on your policy. However, that’s not the only way life insurance can provide financial protection. You can also include the following cover in your policy:

• Income protection: If you’re temporarily unable to work due to injury or illness, income protection will usually pay 75 per cent of your monthly gross income until you can return to work or the policy expires.
• Total and permanent disability insurance (TPD): If you become totally and permanently disabled from injury or illness, TPD will pay a lump-sum benefit.
• Trauma Insurance: If you suffer a critical injury or are diagnosed with a critical illness, you can receive a trauma insurance payout. (Keep in mind that this doesn’t include cover for fatal conditions, only core life insurance provides that).

There’s No One-Size-Fits-All Formula for Determining a Life Insurance Policy

As with most types of insurance, there’s no one-size-fits-all when it comes to life insurance. Each individual and family will have different requirements, as you’ll need to take into account your current and future financial obligations.

To ensure you find the policy that’s right for you, you’ll need to have it tailored to suit any debts that you have, your household expenses, funeral costs and etc. As awful as it sounds, the only way your insurance broker will be able to set you up with the cover that will meet your family’s needs, is if you think about what expenses will need to be covered if you were diagnosed with a debilitating disease, or if you died today.

So, do you have life insurance? If not, it could be time to look into it. Talk to Sarina Insurance about the options available to you today!

READ MORE: AIA Testimonial_Geoff’s story