LMI Group's latest news

New Lumley Private Motor comparison

2010-09-06T00:00:00+10:00

LMI PolicyComparison is pleased to advise subscribers that our comparison of the Lumley Private Motor is now available.

LMI assist Christchurch earthquake claims

2010-09-05T00:00:00+10:00

2010-08-27T00:00:00+10:00

We have just learnt that Premier John Brumby has agreed to accept the Royal Commission's finding to drop the Fire Service Levy.

2010-08-27T00:00:00+10:00

Victorian Premier John Brumby announced this morning that the State will abolish the insurance industry-based fire services levy ("FSL").

Speaking in Melbourne this morning in an official response to the 2009 Bushfires Royal Commission recommendations, he said the Government will heed the Commission’s Recommendation 64 to replace the insurance-based levy with a property-based charge.

The new system is scheduled to be in place by 1 July 2012. The favoured method of FSL collection – most probably through local government property rates – will be announced in a government white paper in February.

The move is a victory for the general insurance industry, which has fought for some 20 years to have the levy dropped as it distorts property insurance premiums and, in many cases, makes insurance unaffordable.Mr Brumby says his government will also introduce concessions for low-income earners.

Treasurer John Lenders says the Government’s ongoing FSL review will “determine the best model for the new levy”.

Speaking shortly after Mr Brumby announced the move, Mr Lenders said the reform “will ensure that our fire services are funded more sustainably, while also taking the squeeze off the cost of property insurance”. Further, that the existing green paper process and the Royal Commission “provided the Government with enough evidence to move to a property levy. However, the Royal Commission was silent on the fine details of how the levy would operate and our government will work through how such a levy would be applied. We want to ensure that the necessary funds are raised to sustain our crucial fire services".

The Government started the process to determine the best model for the new levy by today releasing a set of policy principles that a new model would need to satisfy. The new model would be:

a progressive property-based levy;
provide the same level of funding as the existing FSL;
collect no more revenue than would be collected under the current model; and
provide a 50% concession to low income-earners.

2010-08-17T00:00:00+10:00

Globalisation in the past 20 years has enabled systemic risks to spread further and faster than ever before.

The latest Lloyd’s 360 Risk Insight report – “Globalisation and Risks for Business” – identifies pandemics as one of the top risks businesses face due to increased international travel and trade.

Among other recent pandemics, the outbreak of the H1N1 swine flu virus last year outlined a range of the challenges facing governments, businesses and institutions in preparing for these events.

The Lloyd’s report identifies three main threats in the event of a pandemic: human resource depletions, interruptions of services and supply chains, and the loss of customers and markets.

It says businesses need to develop their risk management systems and strategies through risk audits, contingency and disaster management plans and test scenarios.

Munich Re Value and Capital Actuary Murray Glase says the threat of the SARS virus, and more recently swine flu and avian flu, have greatly increased global awareness of the risk of pandemics.

“We have been fortunate that none of these diseases have developed into a serious pandemic,” he told insuranceNEWS.com.au “But we certainly can’t ignore and we are not ignoring that one of these diseases has the potential to turn into something very serious.”

Mr Glase says many businesses now have risk management plans in place to deal with the possibility of pandemics, with the Australian Prudential Regulation Authority also taking a leading role by making pandemic risks an explicit component of proposed new prudential capital requirements.

“We have to be prepared for something when it does eventually occur,” he said. “We have seen governments setting up their own pandemic risk plans and we have many types of business [with] business continuity plans.

“There is also a lot of research going into learning how to control and possibly to contain and treat potential pandemics.”

Mr Glase says insurers, reinsurers and businesses generally need to understand the nature of pandemic risks and design plans to deal with each potential event.

This is complicated by the wide range of diseases, which include but are not limited to strains of the influenza virus that could develop into a pandemic.

He says globalisation means disease can now spread further faster than ever before, as was seen with the swine flu virus.

Australia’s higher education sector is particularly vulnerable to pandemic risks due to exchange programs throughout the world, and particularly in Asia, as well as the number of overseas students studying in Australia.

Higher education mutual Unimutual was involved in helping Australia universities respond to the swine flu virus last year.

GM Risk Management Services Harry Rosenthal says while not all swine flu risk management preparations were required in dealing with that threat, they have left universities far better prepared to respond to future large scale threats.

“Pandemic is a real risk – it will happen,” he told insuranceNEWS.com.au. “We have seen the cycles in the past, and it is just a matter of when.

Real Estate Institute agree Fire Services Levy should go

2010-08-09T00:00:00+10:00

THE REAL ESTATE Institute of Victoria has rejoined the fire services levy battle in Victoria on the side of the insurance industry.

An REIV statement yesterday told its circulation audience the 2009 Victorian Bushfires Royal Commission has recommended that the state replace the fire services levy with a property-based levy as the current system – a tax on insurance companies that is, in turn, levied on insurance premiums – is inequitable.

The levy is used to fund the fire services.

The REIV said: “The inequitable nature of the levy has been highlighted in the aftermath of the catastrophic fires in Victoria last year. The state government has suggested that only around 87% of affected households and property owners had adequate levels of insurance.”

The outcome of this was that, while the entire community was able to access the services of either the MFB or the CFA, only those citizens who take out the suitable level of insurance were contributing to the scheme at adequate levels.

“So not everyone is paying their fair share for this critical service,” REIV agreed.

“But as a public service the MFB and CFA fought these fires and did not discriminate against properties depending on their level of insurance.”

This was not a new issue. The REIV, along with many other organisations, has called for reform of the levy over the past decade and it would welcome reform.

“The state government has, thankfully, already started the process,” REIV said.

Earlier this year it released a green paper canvassing a number of options, including the one recommended by the Royal Commission.

“The REIV has responded to the green paper arguing for a property-based levy and, as a result, we look forward to the acceptance and implementation of this recommendation,” the institute said.

New Ansvar Faith Organisations Comparison

2010-08-06T00:00:00+10:00

LMI PolicyComparison is pleased to advise subscribers that our comparison of the Ansvar Faith Organisations wording is now available.

What will it take to see Sense on Insurance Taxes?

2010-08-04T00:00:00+10:00

It is with great disappointment, but no real surprise, that I heard the Brumby Government has not accepted the call from the Bushfire Royal Commission to remove the unfair tax on general insurance and replace it with a broad-based property tax.

Mr Brumby himself has repeatedly said he sees no reason to change the current tax regime. To anyone who understands anything about basic economics, you know that if you increase the cost of a product or service, people buy less. This is the reasoning that governments use to increase taxes on tobacco, cigarettes and alcopops. They are justified in doing so as (i) it harms the people they are elected to protect, and (ii) it places a huge burden on the government's health system. However, by placing such a huge tax on insurance (in fact, triple tax given there is a fire service levy, GST and State Government stamp duties), the government is harming the people they are elected to protect. Under-insurance causes enormous financial loss to those that sustain major property losses, and also encourages people to stay and fight fires to protect their uninsured property. It also places an enormous burden on the community with business failures, loss of jobs and, in the worst situations, loss of life.

Every single person in the State of Victoria benefits from the great work of our fire fighters and other emergency service personnel. As such, we should all shoulder the burden for this; not just the prudent and risk-averse.

You see the complete hypocrisy of the current tax system when Premier Brumby said that in the event of a major bushfire the emphasis was on the protection of life, not property. So why is general insurance being taxed and not life insurance?

Begs the question, why Mr Brumby doesn't follow the example of the more enlightened States of Queensland, South Australia and Western Australia. These States removed the tax years ago and included a modest levy with Council rates; the reason is that it is a hidden tax. Under the guise of a fire services levy and with the triple tax effect, it is 'out of sight, out of mind'.

2010-07-31T00:00:00+10:00

Insurance Council applauds FSL call

THE INSURANCE Council of Australia welcomed the Victorian Bushfires Royal Commission recommendation that the current fire services levy (FSL) system in Victoria be replaced with a property-based levy

This was in the Royal Commission’s final report released today.

Rob Whelan, the Insurance Council’s CEO said: “Recommendation 64 of the final report recognises the position that the general insurance industry has put forward for many years – namely that the FSL is an unfair and economically inefficient tax that lacks transparency.”

The ICA fully supported the immediate removal of the FSL in Victoria because it was “inefficient, inequitable and places an unfair burdenon those who do the right thing and purchase insurance”.

“Replacing the FSL with a property-based levywill remove the inequities of the current system.”

The ICA called on the Victorian Government to implement Recommendation 64 without delay.

“The time for review after review of the current FSL system in Victoria is over. This issue requires real action, as recommended by the Victorian Bushfires Royal Commission, and a commitment from the Victorian Government to act in the best interests of the entire community,” said Mr Whelan.

The ICA also says that the funding pressures for Victoria’s fire services are worsening.

It says: “Each year funding pressures increase as the MFB and CFA demand more revenue to provide services to an increasingly larger population.

“In less than 3 years contributions from the insurance industry to the Victorian fire brigades has jumped by more than 50%. The current FSL funding model lacks transparency.

“Fire brigades are not accountable to the Victorian community for their current spending and provision of resources.”

The charge on property model provides the community with greater transparency and spreads the funding burden across the entire community not just those who take out insurance, it adds.

With greater transparency charges will be clearly set and determining on a sliding scale dependent on a clear set of factors such as the locality of a property and its value. In fact some charges can even be capped, particularly in rural areas, where the funding burden will decrease significantly.

To be fair to all citizens, the ICA says that not only is the charge on property model fairer but the ICA believes it will benefit everyone.

Based on the results of this model being used in South Australia and Western Australia, the ICA “can confidently conclude that the entire Victorian community will benefit.

“It is about having a system in place that is fair, efficient and provides effective protection for everyone. It isn’t about a few carrying the funding burden for the entire community.”

FURTHER SUPPORT: Robert Kelly, executive chairman of Steadfast Group Limited. Australia’s massive insurance broker cluster group, added his support to NIBA and the ICA.

He told Insurancenewsaustralia: “Steadfast supports the NIBA position 100%. Noel Pettersen has clearly articulated the issue. Hopefully the terms of reference will be wide enough to get a fair conclusion to what has been a frustrating period of negotiation with the relevant government authorities.”

LMI CEO supports Bushfire Royal Commission Recommendation

2010-07-31T00:00:00+10:00

In their final report released today, the Bushfire Royal Commission has recommended the replacement of the Fire Services Levy ("FSL") inflicted on Insureds in Victoria. This is unsurprising as every Royal Commission finds that the current system is inequitable.

For the reader's convenience, Recommendation 64 states: “The state replace the fire services levy with a property-based levy and introduce concessions for low-income earners”.

The Royal Commission found that when you take into consideration the 'tax on tax on tax' compounding effect on top of the FSL, a $500 premium for a house in Melbourne became $713.90, and $1,040.60 for a business in rural Victoria. This massive impost means that fewer people insure, and those that do tend to under-insure with life changing consequences when a major loss occurs.

The Bushfire Reconstruction & Recovery Authority estimated that 25% of those affected were not insured and, of those who were, as high as 80% were under-insured.

A long line of inquiries has already identified the FSL’s shortcomings:

Victorian State Business Tax Review (2001)
Victorian Treasury & Finance Review (2003)
HIH Royal Commission (2003)
NSW Independent Pricing & Regulatory Tribunal Review of State Taxation (2008)
The Australian Financial Centre Forum Report (2010)
The Henry Report: Australia’s Future Tax System (2010).

The more enlightened governments in South Australia, Western Australia and Queensland have all recognised the inequity of the FSL system, and have replaced it with the much fairer property-based taxes.

LMI Group's Chief Executive urges the Victorian government to do the right thing by the community and the economy, and follow this recommendation of this latest Royal Commission.

LMI CEO supports Bushfire Royal Commission Recommendation

2010-07-31T00:00:00+10:00

For the reader's convenience, Recommendation 64 states: “The state replace the fire services levy with a property-based levy and introduce concessions for low-income earners”.

The Bushfire Reconstruction & Recovery Authority estimated that 25% of those affected were not insured and, of those who were, as high as 80% were under-insured.

A long line of inquiries has already identified the FSL’s shortcomings:

Victorian State Business Tax Review (2001)
Victorian Treasury & Finance Review (2003)
HIH Royal Commission (2003)
NSW Independent Pricing & Regulatory Tribunal Review of State Taxation (2008)
The Australian Financial Centre Forum Report (2010)
The Henry Report: Australia’s Future Tax System (2010).

LMI Group's Chief Executive urges the Victorian government to do the right thing by the community and the economy, and follow this recommendation of this latest Royal Commission.

Fire levy is in need of an overhaul

2010-07-29T00:00:00+10:00

THE blame game must stop on Saturday and the real debate begin.

In two days the bushfires royal commission will release its report and recommendations into the tragic events of Black Saturday.

Importantly, two issues must be addressed. One needs urgent change, the other faces change for the worse.

The first concerns how our fire services are financed.

At present, both the Metropolitan Fire Brigade and Country Fire Authority are financed by a fire services levy.

This is a levy on all property insurance premiums in Victoria. It is not levied on vehicle insurance. Of course, the major flaw with this system is that only those who insure their properties pay the levy.

And boy do they pay, with the levy doubling the cost of insurance premiums for many, particularly farmers.

So, what happens when an uninsured home owner requires the fire brigade? They arrive, of course, as they would for anyone.

And car owners - who don't pay a cent - are responsible for about 15 per cent of MFB and 10 per cent of CFA call-outs.

Simply, those who don't pay the fire services levy get the same treatment as those who do.

The MFB and CFA can charge uninsured property owners for call-outs, but rarely, if ever, do. The CFA didn't charge uninsured property owners during the Black Saturday fires.

Hopefully the commission will listen to groups such as the Insurance Council of Australia, Municipal Association of Victoria, Victorian Farmers Federation - even the commission's own lawyers - and fix this crazy system, separating it from insurance premiums.

The second issue is the stay-or-go policy, where it is up to the resident to decide whether they leave before a fire arrives or stay to fight it.

There have been many critics of this policy since Black Saturday but the alternative suggested is frightening.

Last month counsel assisting the commission recommended the stay-or-go policy should be replaced by "voluntary evacuation" overseen by fire incident controllers. The theory is that as a fire approaches, fire controllers would tell those in its path to head for safer ground.

The flaws in this are frighteningly obvious. At what point does the controller decide to send the message?

What if a fire is spotting 15km or more away, as it was on Black Saturday? A fire controller would be powerless in such a situation.

And what of the thousands of cars flooding narrow winding roads of a highly populated hillside region, such as the Dandenongs? The potential death toll would be horrendous.

This system would place too much responsibility on fire controllers, and send the message that people will be told at an appropriate time when to leave their homes. It would breed complacency.

A third party - whose focus must be on fighting the fire - simply cannot decide when people should leave. The only ones who can decide are the residents themselves.

And that decision must be based on whether they have the skills and resources to defend themselves and their homes.

The stay-or-go policy is not perfect, as Black Saturday proved. But it is sure better than the system we could find the commission recommending on Saturday.

CGU boss calls for fire services funding reform

2010-07-26T00:00:00+10:00

CGU CEO Duncan West wants the Victorian Government to overhaul the way fire services are funded, slamming the existing system as “grossly unfair”.

In a submission to the Victorian Government’s review of fire services funding, Mr West has called on CGU’s behalf for a system that “does not discriminate against property insurance-holders”.

“The current funding model for the Victorian fire services is grossly unfair,” he says in the submission. “It unfairly penalises the members of the community – those with property insurance – by forcing them to carry the burden of funding fire services for the broader community.”

Victorian fire services currently depend heavily on the fire services levy charged on insurance premiums to fund around 75% of their annual budget. A similar system exists in NSW and Tasmania.

“Fire services are an essential component of a safe community, but the current funding system is unfair, inadequate and inefficient,” Mr West said.

CGU wants the levy replaced with a property-based system, but says this should be extended to include motor vehicle ownership.

“CGU believes fire services should be funded through property rates and motor vehicle registrations,” Mr West said. “This would more accurately reflect the 15% of Metropolitan Fire and Emergency Services Board and 10% of Country Fire Authority callouts attributed to motor vehicles.”

Submissions to the Victorian review closed on July 15. A review white paper is due to be released by the end of February.

ANZIIF CIP points for LMI RiskCoach subscribers

2010-07-23T00:00:00+10:00

The Australian & New Zealand Institute of Insurance & Finance ("ANZIIF") has confirmed today that subscribers to LMI Group's knowledge management service, LMI RiskCoach, are now able to claim up to 15 CIP points per annum for time spent using the service (1 point per hour, in 15 minute increments).

"This is a significant endorsement of the product and a great benefit for users", said LMI Group's CEO, Dr Allan Manning. "We hope that recognition by ANZIIF and CIP eligibility will encourage new industry participant subscribers and increased use by current subscribers."

Users are able to specify a reporting period and then print their CIP certificate for that period by selecting the 'My account' link that appears next to their name (above the navigation tabs), and then selecting the link 'ANZIIF CIP'.

New short courses and industry-specific 'Test Your Knowledge' components will be launched shortly to augment the current features of LMI RiskCoach.

ANZIIF CIP points for LMI RiskCoach subscribers

2010-06-21T00:00:00+10:00

2010-06-18T00:00:00+10:00

At the request of the Papua New Guinea ("PNG") market, LMI Group have today launched a PNG version of
LMI BICalculator. This includes the Knowledge Centre and cover calculator for the PNG Industrial Special Risks ("ISR") Mark VII wording.

2010-06-11T00:00:00+10:00

LMI Group are pleased to welcome Grant Silliss to head up LMI PolicyCoach. Grant comes with a wealth of experience in developing insurance-based online systems, having worked with Zurich Insurance, Munich Re and most recently, Ace Insurance.

Grant will be based in LMI Group's Sydney office. His first role is to ensure the smooth roll-out of the business pack module of LMI PolicyCoach, the sister product to the extremely successful LMI RiskCoach which was launched in 2009.

Welcome aboard Grant.

Grant Silliss joins the LMI PolicyCoach team

2010-06-11T00:00:00+10:00

Welcome aboard Grant.

New SGIC Comparison

2010-06-09T00:00:00+10:00

LMI PolicyComparison is pleased to advise subscribers that SGIC EasyBiz@home Business Insurance comparison is now available.

New RACV Comparison

2010-06-07T00:00:00+10:00

LMI PolicyComparison is pleased to advise subscribers that RACV EasyBiz@home Business Insurance comparison is now available.

LMi Mobile on iTunes

2010-06-07T00:00:00+10:00

The world's first mobile under-insurance calculator has been developed by LMI Group for the benefit of insurance professionals. The first of a suite of mobile insurance tools, which includes other calculators, research tools, training materials and other add-ons, was released for download today.

"We saw an obvious need to provide a simple to use calculator to assist insurance advisers explain the risk that business owners take, even on a partial loss, when they under-insure. The calculator, which can be adjusted to show actual estimates, clearly demonstrates this to the Insured. Early trial versions in use by selected insurance brokers has resulted in very positive feedback", said LMI Group's CEO, Dr Allan Manning, today at the offical launch.

To download the free application from iTunes, click here.

Blackberry and other phone versions are soon to be released.

LMi Mobile on iTunes

2010-05-24T00:00:00+10:00

LMI PolicyComparison is pleased to advise subscribers that CGU Commercial Motor comparison is now available.

New Austbroker/CGU comparison

2010-05-24T00:00:00+10:00

LMI PolicyComparison is pleased to advise subscribers that Austbroker/CGU Commercial Motor comparison is now available.

New AAMI Home Comparison

2010-05-13T00:00:00+10:00

NIBA held out few hopes

2010-05-12T00:00:00+10:00

NIBA HELD out few hopes for any form of relief on insurance taxes as the Federal Treasurer Wayne Swan delivered the Federal Budget last night May 11.

Noel Pettersen, NIBA CEO, said today: “There was nothing in the budget relating to general insurance.

“It did report Victoria will get $11.2 billion in GST revenue from Canberra. Notwithstanding that 30% of that will go to health as agreed recently, maybe some could also go to abolishing insurance taxes including fire service levy on insured's... or is that a pie in the sky?

“The simple fact remains that the government only accepted around 10 of the 130 Henry (Tax Review) recommendations – for whatever reason.

“Certainly it could not be called ‘tax reform’. It has been suggested that Henry (Ken, Secretary of the Treasury) did want to get rid of state taxes on property, payrolls and insurance but (Prime Minister) Rudd did not want another stoush with the states, so soon after the health and hospital problems.

“Of course, the states will also have to play ball and the Brumby Government in Victoria has made it quite clear that an insurance levy, which brings in $510 million a year from policyholders, is the fairest way to collect fire services levy funds.”

The good news was that the Henry Review did at least put on record that all state taxes on insurance were inefficient and should be abolished, Mr Pettersen said.

“NIBA is in there for the long haul on this issue. It’s now getting more traction in the media and NIBA has been relentless in showing how world record taxes impact ordinary Australians – we will just keep on doing this and encouraging our members and their clients to make some more noise as well.”

The pressure was mounting for change.

“We’re also very hopeful the Victorian Bushfires Royal Commission will accept the advice from Counsel assisting the Commission and replace the current insurance based model with a property based levy (in its final report later this year).”

In a message to members about the Federal Budget, Mr Pettersen added: “You should seek your own advice as to how the Budget impacts you or your business.”

Rob Whelan, CEO of the Insurance Council of Australia, was tied up in a series of meetings in Canberra today and was not immediately available for comment.

New Calliden Liability comparison

2010-05-05T00:00:00+10:00

LMI PolicyComparison is pleased to advise subscribers that Calliden Broadform Liability comparison is now available.

New CGU Motor comparison

2010-05-05T00:00:00+10:00

LMI PolicyComparison is pleased to advise subscribers that CGU Motor Composite comparison is now available.

No relief to taxation on insurance following Henry Review

2010-05-02T00:00:00+10:00

It is with great disappointment that insurance, the protector of personal assets and wealth creation, has all but been ignored in the media statements of the Prime Minister, Treasurer and Minister for Financial Services; all having made media statements today.

2010-03-23T00:00:00+10:00

Global Transport

2010-03-23T00:00:00+10:00

Public and Products Liability now available.

Club Marine Pleasurecraft now available

2010-03-23T00:00:00+10:00

LMI Group responds to storm claims in Qld & WA

2010-03-23T00:00:00+10:00

LMI Group's Claims Services team is responding to the large number of claims following yesterday's voilent storms in Perth and south-west Western Australia, and to damage claims resulting from Cyclone Ului in far north Queensland.

With these storms hitting hard on the heels of the Melbourne storm only a few weeks ago, most firms are stretched, but Loss Management International's disaster recovery team is handling the influx in their stride.

Claims can be lodged at claim@lmigroup.com or by phoning 1300 LMI GROUP (1300 564 476).

LMI Group responds to storm claims in Qld & WA

2010-03-23T00:00:00+10:00

Claims can be lodged at claim@lmigroup.com or by phoning 1300 LMI GROUP (1300 564 476).

Savings and Loans

2010-03-23T00:00:00+10:00

Home Accidental Damage, Home Defined Events, Motor Vehicle and Caravan now available.

SGIC Motor Fleet now available

2010-03-23T00:00:00+10:00

Latest version of LMi Mobile iPhone app launched today

2010-03-19T00:00:00+10:00

2010-03-17T00:00:00+10:00

LMI entrusted with claim for restaurant fire in Cairns

2010-03-17T00:00:00+10:00

Kung Flu Continuity Planning launched for PGA

2010-03-11T00:00:00+10:00

Today at the Australian Pharmacy Professional conference on the Gold Coast, the Kung Flu Continuity Planning system was successfully launched.

Six months prior to this highly successful launch, the Pharmacy Guild of Australia (“PGA”) identified the need for pharmacies, which are an essential service and particularly vital to the community during a pandemic, to develop a business continuity planning system to address the potential threats of a pandemic.

With funding assistance from the Australian Government, which shared the PGA’s vision, LMI ContinuityCoach was chosen to develop a business continuity planning system specifically for Australian pharmacies. Due to its ease of use, combined with the PGA’s need to implement a complete and compliant system, LMI ContinuityCoach was the obvious choice.

The Kung Flu Fighter was chosen to promote the service, and delegates who completed the program received their black belt in Kung Flu Fighting.

Over 70 pharmacists logged on to LMI ContinuityCoach’s Kung Flu Fighter and, following detailed instruction from a panel of presenters, including LMI Group's CEO, Dr Allan Manning, completed a comprehensive business continuity plan. Where necessary, PGA members were assisted by other members of LMI Group’s Risk Management division: John Worthington, Andrew Aisbett, Maree Worthington and Les Sheward.

So, within 6 months of identifying the problem, Kung Flu Business Continuity Planning has successfully launched on time and on budget.

Kung Flu Continuity Planning launched for PGA

2010-03-11T00:00:00+10:00

LMI Group respond to storm claims in Vic & Qld

2010-03-08T00:00:00+10:00

LMI Group's Claims Services division, Loss Management International, is in full swing handling storm claims arising from the extreme bad weather in Brisbane and Melbourne.

The Melbourne office itself was damaged, as were the homes of several staff. Nonetheless, the Melbourne and Brisbane offices are both operational and fully staffed, despite today being a public holiday in Melbourne.

Drying equipment is at a premium, and every favour known to man is being drawn upon with the most critical situations being prioritised. An international business required a portable air conditioner and it was one of LMI Group's support staff that located a hire one and personally collected and delivered it to the grateful client in less than an hour. Even while the storm in Melbourne was still raging, staff delivered drying equipment to retailers that were desperate to continue trading. LMI Group was able to use its influence to push them up the list with a major restoration company.

"It is not just preparing claims but managing them and that means mitigating the loss wherever possible”, said LMI Group's CEO, Dr Allan Manning.

Additional staff from LMI Group's NSW, SA, WA and NZ offices are on standby if required.

Not to be left out completely, LMI Group's Sydney office were appointed on a major claim in Newcastle this morning. As the old saying goes, "it never rains, it pours".

Mecon Annual Projects Contract Works now available

2010-03-08T00:00:00+10:00

Mecon Annual Projects Contract Works, Single Projects Contract Works and Contractors Plant now available

LMI Claims Services respond to Melbourne Hail Storm

2010-03-06T00:00:00+10:00

As one of Melbourne's most intense storms in history was still raging, calls to Loss Management International’s (“LMI”) Emergency Claim Service started coming through. LMI’s Claims Services division responded well in attending many premises and/or arranging for drying and restoration services using the good relations the team has with their regular suppliers.

In one case, in the midst of the storm, the partner of one of the Claims Services team personally delivered a wet vac to a distraught retailer who was keen to clean up as quickly as possible and trade as normal the following day. Nothing is too much trouble for the LMI team.

LMI Launch iPhone app to fight under-insurance

2010-03-04T00:00:00+10:00

LMI Group's IT division has launched its first mobile phone application for the insurance industry, the LMi MobileUnder-insurance Calculator which is based on the popular LMI RiskCoach feature.

Designed to assist brokers explain the penalty a client will incur in the event of a claim, the mobile version makes it that much easier to take out in the field. One click of the button and the user is straight into the calculator.

While mobile apps have been successfully used internally by LMI Group for such things as handling emergency after hour claims calls, the LMi MobileUnder-insurance Calculator is the first to be released publicly. LMI Group's IT Developer Khan Thompson predicts more useful apps will follow.

Nautilus Marine Boat Insurance now available

2010-03-03T00:00:00+10:00

11 years of service - the road to success

2010-02-25T00:00:00+10:00

2010-02-24T00:00:00+10:00

AAMI Comprehensive Car, Landlord Insurance, Strata Title Landlord and Third Party Prop Damage now available.

APIA Boat Insurance now available

2010-02-24T00:00:00+10:00

APIA Boat Insurance, Caravan Insurance, Home Insurance Apartment and Home Insurance Assisted Living Now available.

Technology and Communications Sectors Professional Indemn

2010-02-22T00:00:00+10:00

LMI CEO featured in Insurance & Risk Professional

2010-02-19T00:00:00+10:00

2010-02-18T00:00:00+10:00

LMI Group's Claims Services division, Loss Management International (“LMI”) have been engaged to prepare insurance claims for many businesses affected by the heavy rains along the east coast of Australia.

Steve Smith and Derek Jorgensen of LMI's Sydney operation were appointed to a multi-million dollar loss at the iconic Bourbon and Beefsteak bar and nightclub in Kings Cross. Just before midnight, fire rescue officers were called to the nightclub when flooding caused the ceilings to collapse on three levels, bringing down power cables and sprinkler pipes. Fortunately no one was injured, but with the sprinkler ruptured ruptured, there was extensive water damage.

LMI are working to mitigate the loss of both property and business interruption and will prepare the insurance claim for the owners.

AAMI Caravan, Home Building, Home Contents, Home Contents Fire and Theft now available

2010-02-18T00:00:00+10:00

AAMI Caravan, Home Building, Home Contents, Home Contents Fire and Theft now available

Youi Home and Car Insurance now available

2010-02-18T00:00:00+10:00

Youi Home and Car Insurance now available.

BBC sends NIBA comments around world

2010-02-08T00:00:00+10:00

The BBC Radio news service has sent comments about Victoria's exorbitant fire service levy around the world.

The BBC news picked up on comments from Noel Pettersen, NIBA chief executive, about the high cost of the fire services levy on insurance policies in the state of Victoria in an interview with an ABC television news reporter and broadcast the remarks on its international service.

The interview came on the anniversary of Victoria's devastating Black Saturday bushfires that caused the deaths of 173 people, razed some 2500 homes and many other buildings and cost about $1.1 billion estimated by the Insurance Council of Australia.

On the prime time 7pm ABC TV news service Mr Pettersen explained how the high cost of the FSL - sometimes doubling the cost of the insurance premium - obviated people taking out insurance or under-insuring.

The segment followed comments from an insured in one of the ravaged townships about the needs for insurance and the problems of cost negating some people taking out cover.

The comments also followed emailed complaints to media from insureds in the fire regions about the home and contents premiums rising.

One man, unnamed, was reported by the Melbourne Herald Sun complaining that his house and contents premium had increased by 18%.

But the same report was headlined "Bid to axe fire service levy" saying "Australia's peak insurance body is putting pressure on the Victorian Bushfire Royal Commission to axe the fire service levy".

It quoted from the Insurance Council's 2nd submission to the commission in January.

The high taxes and charges in property insurance in Victoria add 84% on Victorian country and commercial insurance basic premium up to 123% when GST and stamp duty were applied.

LMI PolicyComparison service in high demand

2010-02-04T00:00:00+10:00

The number of comparisons being conducted by the insurance industry on LMI PolicyComparison has grown by more than 20% over the past six months.

Over 250,000 comparisons are provided from the site in a wide range of general insurance products in Australia alone. The comparison service is also offered in New Zealand with plans underway to deliver it in other countries.

APIA Car, Home, Home Extra, Home Village and Landlords now available

2010-02-03T00:00:00+10:00

APIA Car, Home, Home Extra, Home Village and Landlords now available.

LMI entrusted to prepare major fire claim

2010-02-02T00:00:00+10:00

LMI Group's Claims Services division, Loss Management International ("LMI"), has been entrusted with the business recovery and insurance claim preparation following a major fire in the New South Wales town of Inverell on 24 January 2010.

Steve Smith of LMI's Sydney office is heading up the loss management/claim preparation team.

LMI entrusted with multi-million dollar fire in Adelaide

2010-02-01T00:00:00+10:00

LMI Group's Claim Services division, Loss Management International ("LMI"), were appointed to assist the Insured and broker mitigate losses and prepare an insurance claim following a major fire in Burton.

LMI's South Australian State Manager, Erik Kroon, met with the owners and the insurance broker on Saturday and again today, beginning the all important process of business recovery.

Test session..

2010-02-01T00:00:00+10:00

test...

LMI Claims Services division 2-day technical conference

2010-01-29T00:00:00+10:00

Realising the importance of ongoing professional development, LMI Group's Claims Services division, Loss Management International ("LMI"), today completed a two-day intensive technical training conference in Melbourne.

Claims experts from within LMI Group's various offices, including Victoria, New South Wales, Queensland, South Australia, Western Australia, New Zealand, Singapore, China and Indonesia all attended.

Subjects included a range of business interruption topics, using examples and lessons learnt from the numerous major claims that LMI have recently handled.

The next internal conference is scheduled for April 2010 for the LMI RiskCoach research team.

Taxing Situation

2010-01-26T00:00:00+10:00

Australian Panel Says Taxes, Regulatory System Hinder Nonlife Insurance Growth

The Australian Financial Center Forum, a government-appointed panel, has suggested lifting all state taxes and levies on the nonlife insurance sector to improve insurance penetration and industrial development in Australia.

The rang and diversity of state traxes and levies such as stamp duties, insurance protection taxes and fire service levies are adding to insurance costs, said the forum, which includes representatives from financial services, in a report on Australia as a financial center.

Total state taxes on insurance amounted to A$4.25 billion (US$3.9 billion) in the financial year 2007-2008. The panel said such taxes and levies have led to underinsurance in the business and consumer sectors. Further, there is no consistency in tax application across the states, the panel found.

Australia's insurance companies are generally profitable and well-capitalised, and a number of leading nonlife insurers have significant offshore subsidiaries. However, the report said "domestic business has been affected by high indirect taxes and, to a lesser extent, by nonharmonised state regulation."

James Cullen, media adviser at the Treasury of Australia, told BestWire the report is up for public discussion. As some of the recommendations are tax-related, the government will put it rhough an indipendent tax and budget review. It will take about six months or more for the government to respond to the recommendations.

"In the curren fiscal enviornment, the government is obviously cautious about things which have a substantial cost, but we'll be working that through and we'll be considering it in that budgetary context," said Chris Bowen, financial services minister of Australia.

Australia's tax system,. with high withholding tax rates, has partly hindered the promotion of Australia as a financial services center. "Australia has long had the slogan of being a financial services center but there hasn't been the policy backup," said Bowen, in a statement.

Australia has the fourth-largest pool of funds under management in the world, but it only exports about 4$ of that. "So only 4$ of the funds we have under management coes from offshore. It's much higher in many other Asian nationals," said Bowen.

"I just don't think there's been a focus from government in identifying and removing barriers to the export of Australia's financial services," added Bowen in a statement.

The industry's first priority is with domestic policy issues, said the Insurance Council of Australia in the report." If our members can operate their business profitably, this puts them in a strong position to compete for offshore business," said the council. Taxation and nonprudential state regulation are primary policy issues faced by insurers.

Differences in state regulations, such as with motor vehicle license rules, workers' compensation and builders' insurance, increase costs for national insurers and subsequently for consumers. "The complexity of these regulations may also act as a barrier to entry and therefore limit competition," said the forum in its report.

State regulations for the insurance sector should be standardised for a broader view at the national level, said the forum.

Australia's nonlife sector accounted for about 60% of the insurance market, according to the report. The nonlife sector is dominated by domestic players including Insurance Australia Group Ltd. [86837], Suncorp Metway Ltd. [87834) and QBE Insurance (Australia) Ltd. [885181], who between them have about 60% of the overall market share. Foreign companies have about 26% of the nonlife market share.

Australian nonlife insurers' growth strategies vary substantially, between those focused on domestic growth and those heavily into developing offshore business, according to the report.

"Looking at the three dom,inant domestic general insurers, the proportion of premium revenue from offshore operations in 2008 rangd from 10% to 80%," said the forum.

The forum suggested resolving the tax and regulatory issues will provide the basis for a more competitive and efficient domestic insurance industry, contributing to growth opportunities, economics of scale, lower administrative cost and less compliance complexity.

The government will consider the recommendations in the report before responding later in the year, said Bowen in a statement. A considerable amount of consultation already went into the preparation of the report.

"We are committed to ensuring that our financial sector is well-placed to make the most of those opportunities that will emerge as the economic recovery takes hold," said Bowen. There are opportunities to expand the exports and imports of Australia's financial services, along with the promotion of Australia as a financial services hub.

The forum is comprised of five panel members and industrial associations from the financial services sector.

Associated Marine Transit now available

2010-01-21T00:00:00+10:00

Associated Marine Transit now available.

Panel call to scrap taxes on insurance

2010-01-19T00:00:00+10:00

ALL state taxes and levies on the general insurance sector should be abolished to help address the high level of under-insurance in Australia, a government-appointed panel has recommended.

The Australian Financial Centre Forum, chaired by former Macquarie Bank director Mark Johnson, found that the range and diversity of state taxes added significantly to the cost of insurance, especially for businesses operating Australia-wide.

It said the issue should be addressed urgently.

"(State taxes) are undoubtledly a factor contributing to under-insurance, with consequent increased demands on the public purse," the forum said in a 160 page report released by Assistnt Treasurer Chris Bowell on Friday.

"Along with the variety of state non-prudential regulations, they also act as a barrier to new entrants to our insurance sector."

Australia's $24 billion general insurance market is dominated by four players - Suncorp, Insurance Australia Group, QBE and Allianz - and premium rates have been climbing steadily amid rising claims costs.

The forum, which included representatives of the financial services industry, found that differences in state regulations, such as motor vehicle licence rules, workers' compensation and builders' insurance, increased higher costs for national insurance companies, which passed them on to consumers.

"Resolving these tax and regulatory issues will provide the basis for a more competitive and efficient domestic insurance industry by providing growth opportunities, economies of scale, lower costs through less administrative and compliance complexity and potentially more competition," the forum said.

"A stronger and more competitive domestic industry may also provide a stronger base from which to expand offshore."

There was also scope for more global insurance companies to use Australia as a regional headquarters, the forum said.

The forum recommened that state insurance regulations be standardised under a national system.

The Insurance Council of Australia, which represents the general insurance industry, said harmonising the different state and territory statutory insurance schemes would require a significant, long-term commitment by the federal government.

The AFCF report made a host of recommendations aimed at turning Australia into a regional financial hub, in line with the federal government's long-term ambitions.

LMI Group welcomes Steve Grandidge to Claim Services

2010-01-18T00:00:00+10:00

LMI Group is pleased to announce the appointment of Steve Grandidge to its Claims Services division.

Steve will be based in Brisbane, bringing with him a wealth of experience. His career commenced with GAB Robins in Sydney where he served his apprenticeship under one of the doyens of the industry, John Dobinson. Within a short time, Steve was promoted to Executive Adjuster status and appointed as State Manager Western Australia. Steve left GAB to start Robertson & Co in Brisbane (now Crawfords).

His high technical ability and passion to see businesses survive major losses are just the attributes that LMI Group were looking for to expand its Queensland Claims Services division.

Welcome aboard, Steve.

Vero Professional Services Policy now available

2010-01-14T00:00:00+10:00

Vero Professional Services Policy now available.

RACQ - Caravan, Boat, Body Corporate, Home, Private Motor and Unique Motor now available

2010-01-14T00:00:00+10:00

RACQ - Caravan, Boat, Body Corporate, Home, Private Motor and Unique Motor now available.

LMI Group welcomes our Research & Training Assistant

2010-01-12T00:00:00+10:00

LMI Group are pleased to announce the appointment of Kelly Flahavin to the Knowledge Management division. Kelly brings to the team a wealth of experience in knowledge management and training. She holds a Bachelor of Business and Certificate IV in Training, and is currently studying for her MBA. Kelly's role will be to assist Neil Myhre and his team with the further development of LMI RiskCoach and the online short courses available via LMI RiskCoach and other LMI Group online knowledge-based services.

LMI RiskCoach, which took more than 3 years of development, is the latest online service to be developed by LMI Group and, despite only being launched late in 2009, already has well over 2,500 regular users.

Neil Myhre, Chief Knowledge Officer of LMI Group said, "The take-up and ongoing use of LMI RiskCoach is much higher than even our most optimistic estimates. The feedback from users has likewise been very positive. Kelly joining us will allow us to further increase the roll-out of additional industries, which is currently running at around five per week. It also demonstrates the ongoing commitment of LMI Group to provide practical, easy-to-use knowledge-based services to the insurance industry".

Welcome aboard, Kelly.

LMI entrusted with major motel fire

2010-01-11T00:00:00+10:00

LMI Group were entrusted to assist the owners of the Comfort Inn in Hay to mitigate their loss and accurately prepare their insurance claim following a multi-million dollar fire at the motel over the weekend.

Graham Cox and Dayan De Silva are travelling to Hay to provide immediate assistance, meeting both the broker and loss adjuster who are expected on site tomorrow.

If the shoe fits - LMI entrusted with major claims.

2010-01-08T00:00:00+10:00

LMI Group has recently been entrusted with two separate claims involving footwear. One loss affected a footwear retailer and the other a footwear manufacturer.

LMI Group's Claims Services division, Loss Management International is working to get both businesses back up and trading as quickly as possible.

Loss Management International welcomes a new team member

2010-01-07T00:00:00+10:00

LMI Group is pleased to welcome Dayan Di Silva to the Claims Services division, Loss Management International ("LMI").

Dayan, a qualified accountant, is currently working under the expert supervision of LMI’s senior analyst, Angus Stewart, to analyse and quantify a multi-million dollar fraud claim that was entrusted to LMI on the day Dayan joined. During a meeting with the client today, the Insured had nothing but praise for Angus and Dayan's work, which has already gone a long way to uncovering the methods used to carry out the embezzlement.

Welcome aboard, Dayan.

New Prestige Motor Product Class now available

2010-01-06T00:00:00+10:00

New Prestige Motor Product Class now available.