LMI Group's latest news

LMI launches PolicyComparison UK

2012-05-17T00:00:00+10:00

LMI Group launched its well-known comparison service LMI PolicyComparison into the UK market today.

Steve Manning representing LMI Group is attending the British Insurance Brokers Association ("BIBA") Conference where PolicyComparison UK is being shown for the first time and generating a great deal of interest.

Unlike an insurance aggregator site which focuses on the price of insurance, PolicyComparison ignores price and provides a detailed comparison of the features and benefits of each policy it compares. This allows the insurance broker to explain the cover afforded by the policy moving the emphasis away from price onto protection.

2012-05-17T00:00:00+10:00

2012-05-14T00:00:00+10:00

LMI Group are pleased to announce that IAG Australia have joined the ever growing list of general insurers and advisers who subscribe to LMI RiskCoach.

The on-line subscription service, joins LMI's long standing products PolicyComparison.com and BIcalculator.com as a reference service.

In the case of LMI RiskCoach it provides advice on risk and insurance by industry classification and covers the vast majority of industries operating in Australia and New Zealand.

Welcome aboard IAG.

Talk about missing the boat!

2012-05-06T00:00:00+10:00

was mortified to see that the only response that the Insurance Council of Australia made to latest news on the fire service levy was to applaud the news. see http://www.insurancecouncil.com.au/media/89752/010512-victorian-budget-fsl-final.pdf

To my mind this press release completely misses the boat. Let me explain why:

It was the Brumby Government under pressure from the Victorian National Party following the Victorian Black Saturday Royal Commission, and campaigns such as that mounted by www.NoTaxOnInsurance.com.au, Insurance News, Insurance News Australia, NIBA, Zuich Insurance and a great many individuals within the Insurance Industry that announced the removal of fire service levy back on 27th August 2009 and not this current Baillieu Government.
For this, the 2011/2012 period the Fire Service Levy imposed on the insurance industry went up by nearly $100 million from $544.2 million in 2010/2011 to a revised $641.9 million for 2011/2012.
The expected Fire Service Levy for 2012/2013 is a further $580.5 million.
The reason for the increase is that this government pushed through $250 million (1/4 billion dollars) of capital expenditure in full to the Insurance Industry before it moves to property rates. The benefit of this capital expenditure will benefit all Victorians for 20+ years and yet the Insurance Industry through the prudent and risk adverse have met the full cost.
Despite Queensland, South Australia and Western Australia all realising the need to pro-rata the transition of fire service levy between the outgoing tax on insurance and the property tax, the Baillieu Government are saying that the Insurance Industry has to meet the full cost.
The Victorian Government refuse the Insurance Industry to work together to work out a uniform approach to solve the major problem. (I wonder if the Victorian Government will take the same approach to the local governments. I doubt it – the policitical back lash would be too great.)
Let us not forget the Baillieu Government delayed the removal of the insurance based Fire Service Levy by 12 months!
The government have had since August 2009 to work this out and could have (should have) followed the working success of the transitional arrangements used by Queensland, South Australia and Western Australia) but only give the Insurance Industry less than 1 month to sort it out.

It is point 5 that is causing the greatest grief to the Insurance Industry including the insurance companies that the ICA claims to represent.

Let me explain why. We all know that everyone in the community’s insurances do not fall due equally each month. There is still a cluster around the end of each quarter with 30 June the busiest time, particularly for business insurance.

The situation is made more complicated by different rates charged for Insured’s in the Metropolitan Fire Brigade area as opposed to the Country Fire Authority area. On top of this there is a higher rate for commercial, business interruption and contract works than there is for home and contents.

Yet another complication is that the amount each insurer pays is based on their market share for the product at the end of the period not at the start. No one can forecast their market share with 100% accuracy.

Let us ignore all these complications and for the sake of simplicity, let us assume that insurances did fall due equally each month and that people paid their rates each quarter. This means that if $580,000,000 is be collected the Insurance Industry need to collect $48,333,333 per month for 12 months.

If the Victorian Government had said in this year of transition: right insurance industry we need half from you ($290,000,000) and we need half from property owners ($290,000,000) through rates then it would be a realitively simple exercise to divide the monthly figure by 12 and the pro-rata the number of months the Insured is expected to meet the fire service levy. That is 11.5 months for July 2012 renewals down to .5 for June 2013 as set out in the following table.

Total Amount to be Collected by Insurance	Month	Portion collected by Insurance Industry	Portion to be collected from Property Rates	Total Collected
$ 48,333,333	Jul-12	$ 46,319,444	$ 2,013,889	$ 48,333,333
$ 48,333,333	Aug-12	$ 42,291,667	$ 6,041,667	$ 48,333,333
$ 48,333,333	Sep-12	$ 38,263,889	$ 10,069,444	$ 48,333,333
$ 48,333,333	Oct-12	$ 34,236,111	$ 14,097,222	$ 48,333,333
$ 48,333,333	Nov-12	$ 30,208,333	$ 18,125,000	$ 48,333,333
$ 48,333,333	Dec-12	$ 26,180,556	$ 22,152,778	$ 48,333,333
$ 48,333,333	Jan-13	$ 22,152,778	$ 26,180,556	$ 48,333,333
$ 48,333,333	Feb-13	$ 18,125,000	$ 30,208,333	$ 48,333,333
$ 48,333,333	Mar-13	$ 14,097,222	$ 34,236,111	$ 48,333,333
$ 48,333,333	Apr-13	$ 10,069,444	$ 38,263,889	$ 48,333,333
$ 48,333,333	May-13	$ 6,041,667	$ 42,291,667	$ 48,333,333
$ 48,333,333	Jun-13	$ 2,013,889	$ 46,319,444	$ 48,333,333
$ 580,000,000		$ 290,000,000	$ 290,000,000	$ 580,000,000

Talk about missing the boat!

2012-05-06T00:00:00+10:00

LMI Group's Managing Director, Prof. Allan Manning was mortified to see that the only response that the Insurance Council of Australia made to latest news on the fire service levy was to applaud the news. see http://www.insurancecouncil.com.au/media/89752/010512-victorian-budget-fsl-final.pdf

In response he wrote in his blog:

To my mind this press release completely misses the boat. Let me explain why:

It was the Brumby Government under pressure from the Victorian National Party following the Victorian Black Saturday Royal Commission, and campaigns such as that mounted by www.NoTaxOnInsurance.com.au, Insurance News, Insurance News Australia, NIBA, Zuich Insurance and a great many individuals within the Insurance Industry that announced the removal of fire service levy back on 27th August 2009 and not this current Baillieu Government.
For this, the 2011/2012 period the Fire Service Levy imposed on the insurance industry went up by nearly $100 million from $544.2 million in 2010/2011 to a revised $641.9 million for 2011/2012.
The expected Fire Service Levy for 2012/2013 is a further $580.5 million.
The reason for the increase is that this government pushed through $250 million (1/4 billion dollars) of capital expenditure in full to the Insurance Industry before it moves to property rates. The benefit of this capital expenditure will benefit all Victorians for 20+ years and yet the Insurance Industry through the prudent and risk adverse have met the full cost.
Despite Queensland, South Australia and Western Australia all realising the need to pro-rata the transition of fire service levy between the outgoing tax on insurance and the property tax, the Baillieu Government are saying that the Insurance Industry has to meet the full cost.
The Victorian Government refuse the Insurance Industry to work together to work out a uniform approach to solve the major problem. (I wonder if the Victorian Government will take the same approach to the local governments. I doubt it – the policitical back lash would be too great.)
Let us not forget the Baillieu Government delayed the removal of the insurance based Fire Service Levy by 12 months!
The government have had since August 2009 to work this out and could have (should have) followed the working success of the transitional arrangements used by Queensland, South Australia and Western Australia) but only give the Insurance Industry less than 1 month to sort it out.

It is point 5 that is causing the greatest grief to the Insurance Industry including the insurance companies that the ICA claims to represent.

Total Amount to be Collected by Insurance	Month	Portion collected by Insurance Industry	Portion to be collected from Property Rates	Total Collected
$ 48,333,333	Jul-12	$ 46,319,444	$ 2,013,889	$ 48,333,333
$ 48,333,333	Aug-12	$ 42,291,667	$ 6,041,667	$ 48,333,333
$ 48,333,333	Sep-12	$ 38,263,889	$ 10,069,444	$ 48,333,333
$ 48,333,333	Oct-12	$ 34,236,111	$ 14,097,222	$ 48,333,333
$ 48,333,333	Nov-12	$ 30,208,333	$ 18,125,000	$ 48,333,333
$ 48,333,333	Dec-12	$ 26,180,556	$ 22,152,778	$ 48,333,333
$ 48,333,333	Jan-13	$ 22,152,778	$ 26,180,556	$ 48,333,333
$ 48,333,333	Feb-13	$ 18,125,000	$ 30,208,333	$ 48,333,333
$ 48,333,333	Mar-13	$ 14,097,222	$ 34,236,111	$ 48,333,333
$ 48,333,333	Apr-13	$ 10,069,444	$ 38,263,889	$ 48,333,333
$ 48,333,333	May-13	$ 6,041,667	$ 42,291,667	$ 48,333,333
$ 48,333,333	Jun-13	$ 2,013,889	$ 46,319,444	$ 48,333,333
$ 580,000,000		$ 290,000,000	$ 290,000,000	$ 580,000,000

With the Victorian Government refusing to allow the transition between property rates and the insurance industry, insurers are left with two choices. The first alternative is to just charge the $48,333,333 per month across all insureds.

The unfairness of this is easily shown. I have already explained that for historical reasons a disproportionate number of commercial policies fall due on 30 June each year. Australian insurance policies expire at 4 pm in most cases. This leaves 8 hours of insurance cover from 4 pm on 30th June to midnight on 30 June and the Insured is expected to pay 12 months fire service levy for that 8 hours bearing in mind they paid the other 365 days less 12 hours with the 30th June 2012 renewal. That same insured will then get hit for the full 12 months fire service levy with their property rates.

The alternative is that the Insurance Industry pro rata the Fire Service Levy for the full $580,000,000 to be collected. The effect of this approach is shown in the table below:

Total Amount to be Collected by Insurance	Month	Portion collected by Insurance Industry – Pro-rata with Rates	Portion to be collected from Insurers alone
$ 48,333,333	Jul-12	$ 46,319,444	$ 92,638,889
$ 48,333,333	Aug-12	$ 42,291,667	$ 84,583,333
$ 48,333,333	Sep-12	$ 38,263,889	$ 76,527,778
$ 48,333,333	Oct-12	$ 34,236,111	$ 68,472,222
$ 48,333,333	Nov-12	$ 30,208,333	$ 60,416,667
$ 48,333,333	Dec-12	$ 26,180,556	$ 52,361,111
$ 48,333,333	Jan-13	$ 22,152,778	$ 44,305,556
$ 48,333,333	Feb-13	$ 18,125,000	$ 36,250,000
$ 48,333,333	Mar-13	$ 14,097,222	$ 28,194,444
$ 48,333,333	Apr-13	$ 10,069,444	$ 20,138,889
$ 48,333,333	May-13	$ 6,041,667	$ 12,083,333
$ 48,333,333	Jun-13	$ 2,013,889	$ 4,027,778
$ 580,000,000		$ 290,000,000	$ 580,000,000

Clearly this is equally as inequitable. In the last year of the fire service levy if your insurance falls due between July 1 and 31 December 2012 you are expected to pay much more than the norm for the same service as someone whose policy falls due in June!

There is just no simple fair and reasonable solution other than to have a transition where the collection of the tax is partially funded by fire service levies and part by property rates.

With the state of the Victorian economy compounded by the uncertainty of the effect of the carbon tax on reinstatement and replacement values of insurance the position the Baillieu/Ryan Government have put home and business owners in is simply unforgivable and shows a complete abrogation of their duty as a government. (I mention Peter Ryan here as he is the responsible minister and the one who campaigned so hard against the fire service levy while in opposition. – To me he has broken an election promise as important and damaging on our economy as Ms Gillard on the Carbon Tax).

So what will happen? Insureds are already writing to me saying they will not insure and take the risk. That is no good for them, their employees or the economy. Clients will ask their insurance broker or insurer to extend their insurance until 1 July rather than pay for a full 12 months. This will mean double the administration and at the end of the day most insurance in Victoria falling due on 1 July which from a protection point of view is unwise. I have spent the last 10 years campaigning to brokers to move the renewals way from 30 June.

Insurers are already changing their policy on refunds and will not refund Fire Service Levy or State Government Stamp duty on policies that are cancelled mid term. I have already posted that the first of the major insurers have increased their fire service levy across the board.

This is without doubt the biggest cock up I have seen in my 41 year insurance career. Like most of us, I have come to expect this from our politicians. They just do not get it. It is all about their position and stuff the economy, the business owner, the home owner and the employee.

But I think there is more to it than just a cockup. Remember the old adage about it being a cock up or a conspiricy? Well I genuinely believe the Victorian Government know exactly what they are doing. They want the benefit of the triple tax that GST and State Goverment Stamp Duty brings to them by leaving the Fire Service Levy with insurance for as much as possible. See http://www.allanmanning.com/?p=924. That is why they will are not prepared to follow the earlier states example. It is pure unadulerated greed when you factor in the 1/4 billion capital expenditure and the delay by 12 months of the removal of the levy! They think the electorate is stupid and cannot see the trickery that is going on because it is not spelt out in the budget.

What I cannot understand or accept is the Insurance Council of Australia’s stance on this. They got caught with their pants down with the flood issue. I can live with that as it was sudden and the media attack was fierce. This issue is completely different. The ICA should have been on top of this for our industry and more importantly for their members and the insuring public for the past 20 years or more. Clearly from their press release they only have a superficial understanding of what is really going on and have fallen for government’s spin: hook, line and sinker.

I ask the member companies of the ICA to question the value of their industry association. To me, our industry and our economy would be better off without them. If they congratulate a government that has introduced such a flawed policy then it makes it even harder to have the position over turned. It also means that the New South Wales government, who are currently carrying out a review of their Fire Service Levy may well follow the Victorian example.

We have a completely ineffectual opposition in Victoria and while industry journalists clearly understand the problem, the main stream media do not.

So where does that leave the rest of us that can see just how damaging this is for our industry, our customers and for the Victorian government.

The first thing is to write to your local member and explain to them the problems that the current policy will create for the insuring public. Secondly, no matter what your political persuasion, show your displeasure at the next state election and remember who got rid of the tax (the Brumby Government) and who stuffed up and got unbelievably greedy with the transition (the Baillieu/Ryan government)!

The contents of this article are that of Prof Allan Manning and are not necessarily those of the LMI Group. To get regular updates on issues such as this from Prof Manning please go to www.allanmanning.com

Talk about missing the boat!

2012-05-06T00:00:00+10:00

In response he wrote in his blog:

To my mind this press release completely misses the boat. Let me explain why:

It was the Brumby Government under pressure from the Victorian National Party following the Victorian Black Saturday Royal Commission, and campaigns such as that mounted by www.NoTaxOnInsurance.com.au, Insurance News, Insurance News Australia, NIBA, Zuich Insurance and a great many individuals within the Insurance Industry that announced the removal of fire service levy back on 27th August 2009 and not this current Baillieu Government.
For this, the 2011/2012 period the Fire Service Levy imposed on the insurance industry went up by nearly $100 million from $544.2 million in 2010/2011 to a revised $641.9 million for 2011/2012.
The expected Fire Service Levy for 2012/2013 is a further $580.5 million.
The reason for the increase is that this government pushed through $250 million (1/4 billion dollars) of capital expenditure in full to the Insurance Industry before it moves to property rates. The benefit of this capital expenditure will benefit all Victorians for 20+ years and yet the Insurance Industry through the prudent and risk adverse have met the full cost.
Despite Queensland, South Australia and Western Australia all realising the need to pro-rata the transition of fire service levy between the outgoing tax on insurance and the property tax, the Baillieu Government are saying that the Insurance Industry has to meet the full cost.
The Victorian Government refuse the Insurance Industry to work together to work out a uniform approach to solve the major problem. (I wonder if the Victorian Government will take the same approach to the local governments. I doubt it – the policitical back lash would be too great.)
Let us not forget the Baillieu Government delayed the removal of the insurance based Fire Service Levy by 12 months!
The government have had since August 2009 to work this out and could have (should have) followed the working success of the transitional arrangements used by Queensland, South Australia and Western Australia) but only give the Insurance Industry less than 1 month to sort it out.

It is point 5 that is causing the greatest grief to the Insurance Industry including the insurance companies that the ICA claims to represent.

Total Amount to be Collected by Insurance	Month	Portion collected by Insurance Industry	Portion to be collected from Property Rates	Total Collected
$ 48,333,333	Jul-12	$ 46,319,444	$ 2,013,889	$ 48,333,333
$ 48,333,333	Aug-12	$ 42,291,667	$ 6,041,667	$ 48,333,333
$ 48,333,333	Sep-12	$ 38,263,889	$ 10,069,444	$ 48,333,333
$ 48,333,333	Oct-12	$ 34,236,111	$ 14,097,222	$ 48,333,333
$ 48,333,333	Nov-12	$ 30,208,333	$ 18,125,000	$ 48,333,333
$ 48,333,333	Dec-12	$ 26,180,556	$ 22,152,778	$ 48,333,333
$ 48,333,333	Jan-13	$ 22,152,778	$ 26,180,556	$ 48,333,333
$ 48,333,333	Feb-13	$ 18,125,000	$ 30,208,333	$ 48,333,333
$ 48,333,333	Mar-13	$ 14,097,222	$ 34,236,111	$ 48,333,333
$ 48,333,333	Apr-13	$ 10,069,444	$ 38,263,889	$ 48,333,333
$ 48,333,333	May-13	$ 6,041,667	$ 42,291,667	$ 48,333,333
$ 48,333,333	Jun-13	$ 2,013,889	$ 46,319,444	$ 48,333,333
$ 580,000,000		$ 290,000,000	$ 290,000,000	$ 580,000,000

The alternative is that the Insurance Industry pro rata the Fire Service Levy for the full $580,000,000 to be collected. The effect of this approach is shown in the table below:

Total Amount to be Collected by Insurance	Month	Portion collected by Insurance Industry – Pro-rata with Rates	Portion to be collected from Insurers alone
$ 48,333,333	Jul-12	$ 46,319,444	$ 92,638,889
$ 48,333,333	Aug-12	$ 42,291,667	$ 84,583,333
$ 48,333,333	Sep-12	$ 38,263,889	$ 76,527,778
$ 48,333,333	Oct-12	$ 34,236,111	$ 68,472,222
$ 48,333,333	Nov-12	$ 30,208,333	$ 60,416,667
$ 48,333,333	Dec-12	$ 26,180,556	$ 52,361,111
$ 48,333,333	Jan-13	$ 22,152,778	$ 44,305,556
$ 48,333,333	Feb-13	$ 18,125,000	$ 36,250,000
$ 48,333,333	Mar-13	$ 14,097,222	$ 28,194,444
$ 48,333,333	Apr-13	$ 10,069,444	$ 20,138,889
$ 48,333,333	May-13	$ 6,041,667	$ 12,083,333
$ 48,333,333	Jun-13	$ 2,013,889	$ 4,027,778
$ 580,000,000		$ 290,000,000	$ 580,000,000

There is just no simple fair and reasonable solution other than to have a transition where the collection of the tax is partially funded by fire service levies and part by property rates.

We have a completely ineffectual opposition in Victoria and while industry journalists clearly understand the problem, the main stream media do not.

So where does that leave the rest of us that can see just how damaging this is for our industry, our customers and for the Victorian government.

Talk about missing the boat!

2012-05-06T00:00:00+10:00

In response he wrote in his blog:

To my mind this press release completely misses the boat. Let me explain why:

It was the Brumby Government under pressure from the Victorian National Party following the Victorian Black Saturday Royal Commission, and campaigns such as that mounted by www.NoTaxOnInsurance.com.au, Insurance News, Insurance News Australia, NIBA, Zuich Insurance and a great many individuals within the Insurance Industry that announced the removal of fire service levy back on 27th August 2009 and not this current Baillieu Government.
For this, the 2011/2012 period the Fire Service Levy imposed on the insurance industry went up by nearly $100 million from $544.2 million in 2010/2011 to a revised $641.9 million for 2011/2012.
The expected Fire Service Levy for 2012/2013 is a further $580.5 million.
The reason for the increase is that this government pushed through $250 million (1/4 billion dollars) of capital expenditure in full to the Insurance Industry before it moves to property rates. The benefit of this capital expenditure will benefit all Victorians for 20+ years and yet the Insurance Industry through the prudent and risk adverse have met the full cost.
Despite Queensland, South Australia and Western Australia all realising the need to pro-rata the transition of fire service levy between the outgoing tax on insurance and the property tax, the Baillieu Government are saying that the Insurance Industry has to meet the full cost.
The Victorian Government refuse the Insurance Industry to work together to work out a uniform approach to solve the major problem. (I wonder if the Victorian Government will take the same approach to the local governments. I doubt it – the policitical back lash would be too great.)
Let us not forget the Baillieu Government delayed the removal of the insurance based Fire Service Levy by 12 months!
The government have had since August 2009 to work this out and could have (should have) followed the working success of the transitional arrangements used by Queensland, South Australia and Western Australia) but only give the Insurance Industry less than 1 month to sort it out.

It is point 5 that is causing the greatest grief to the Insurance Industry including the insurance companies that the ICA claims to represent.

Total Amount to be Collected by Insurance	Month	Portion collected by Insurance Industry	Portion to be collected from Property Rates	Total Collected
$ 48,333,333	Jul-12	$ 46,319,444	$ 2,013,889	$ 48,333,333
$ 48,333,333	Aug-12	$ 42,291,667	$ 6,041,667	$ 48,333,333
$ 48,333,333	Sep-12	$ 38,263,889	$ 10,069,444	$ 48,333,333
$ 48,333,333	Oct-12	$ 34,236,111	$ 14,097,222	$ 48,333,333
$ 48,333,333	Nov-12	$ 30,208,333	$ 18,125,000	$ 48,333,333
$ 48,333,333	Dec-12	$ 26,180,556	$ 22,152,778	$ 48,333,333
$ 48,333,333	Jan-13	$ 22,152,778	$ 26,180,556	$ 48,333,333
$ 48,333,333	Feb-13	$ 18,125,000	$ 30,208,333	$ 48,333,333
$ 48,333,333	Mar-13	$ 14,097,222	$ 34,236,111	$ 48,333,333
$ 48,333,333	Apr-13	$ 10,069,444	$ 38,263,889	$ 48,333,333
$ 48,333,333	May-13	$ 6,041,667	$ 42,291,667	$ 48,333,333
$ 48,333,333	Jun-13	$ 2,013,889	$ 46,319,444	$ 48,333,333
$ 580,000,000		$ 290,000,000	$ 290,000,000	$ 580,000,000

The alternative is that the Insurance Industry pro rata the Fire Service Levy for the full $580,000,000 to be collected. The effect of this approach is shown in the table below:

Total Amount to be Collected by Insurance	Month	Portion collected by Insurance Industry – Pro-rata with Rates	Portion to be collected from Insurers alone
$ 48,333,333	Jul-12	$ 46,319,444	$ 92,638,889
$ 48,333,333	Aug-12	$ 42,291,667	$ 84,583,333
$ 48,333,333	Sep-12	$ 38,263,889	$ 76,527,778
$ 48,333,333	Oct-12	$ 34,236,111	$ 68,472,222
$ 48,333,333	Nov-12	$ 30,208,333	$ 60,416,667
$ 48,333,333	Dec-12	$ 26,180,556	$ 52,361,111
$ 48,333,333	Jan-13	$ 22,152,778	$ 44,305,556
$ 48,333,333	Feb-13	$ 18,125,000	$ 36,250,000
$ 48,333,333	Mar-13	$ 14,097,222	$ 28,194,444
$ 48,333,333	Apr-13	$ 10,069,444	$ 20,138,889
$ 48,333,333	May-13	$ 6,041,667	$ 12,083,333
$ 48,333,333	Jun-13	$ 2,013,889	$ 4,027,778
$ 580,000,000		$ 290,000,000	$ 580,000,000

There is just no simple fair and reasonable solution other than to have a transition where the collection of the tax is partially funded by fire service levies and part by property rates.

We have a completely ineffectual opposition in Victoria and while industry journalists clearly understand the problem, the main stream media do not.

So where does that leave the rest of us that can see just how damaging this is for our industry, our customers and for the Victorian government.

Talk about missing the boat!

2012-05-06T00:00:00+10:00

In response he wrote in his blog:

To my mind this press release completely misses the boat. Let me explain why:

It was the Brumby Government under pressure from the Victorian National Party following the Victorian Black Saturday Royal Commission, and campaigns such as that mounted by www.NoTaxOnInsurance.com.au, Insurance News, Insurance News Australia, NIBA, Zuich Insurance and a great many individuals within the Insurance Industry that announced the removal of fire service levy back on 27th August 2009 and not this current Baillieu Government.
For this, the 2011/2012 period the Fire Service Levy imposed on the insurance industry went up by nearly $100 million from $544.2 million in 2010/2011 to a revised $641.9 million for 2011/2012.
The expected Fire Service Levy for 2012/2013 is a further $580.5 million.
The reason for the increase is that this government pushed through $250 million (1/4 billion dollars) of capital expenditure in full to the Insurance Industry before it moves to property rates. The benefit of this capital expenditure will benefit all Victorians for 20+ years and yet the Insurance Industry through the prudent and risk adverse have met the full cost.
Despite Queensland, South Australia and Western Australia all realising the need to pro-rata the transition of fire service levy between the outgoing tax on insurance and the property tax, the Baillieu Government are saying that the Insurance Industry has to meet the full cost.
The Victorian Government refuse the Insurance Industry to work together to work out a uniform approach to solve the major problem. (I wonder if the Victorian Government will take the same approach to the local governments. I doubt it – the policitical back lash would be too great.)
Let us not forget the Baillieu Government delayed the removal of the insurance based Fire Service Levy by 12 months!
The government have had since August 2009 to work this out and could have (should have) followed the working success of the transitional arrangements used by Queensland, South Australia and Western Australia) but only give the Insurance Industry less than 1 month to sort it out.

It is point 5 that is causing the greatest grief to the Insurance Industry including the insurance companies that the ICA claims to represent.

Total Amount to be Collected by Insurance	Month	Portion collected by Insurance Industry	Portion to be collected from Property Rates	Total Collected
$ 48,333,333	Jul-12	$ 46,319,444	$ 2,013,889	$ 48,333,333
$ 48,333,333	Aug-12	$ 42,291,667	$ 6,041,667	$ 48,333,333
$ 48,333,333	Sep-12	$ 38,263,889	$ 10,069,444	$ 48,333,333
$ 48,333,333	Oct-12	$ 34,236,111	$ 14,097,222	$ 48,333,333
$ 48,333,333	Nov-12	$ 30,208,333	$ 18,125,000	$ 48,333,333
$ 48,333,333	Dec-12	$ 26,180,556	$ 22,152,778	$ 48,333,333
$ 48,333,333	Jan-13	$ 22,152,778	$ 26,180,556	$ 48,333,333
$ 48,333,333	Feb-13	$ 18,125,000	$ 30,208,333	$ 48,333,333
$ 48,333,333	Mar-13	$ 14,097,222	$ 34,236,111	$ 48,333,333
$ 48,333,333	Apr-13	$ 10,069,444	$ 38,263,889	$ 48,333,333
$ 48,333,333	May-13	$ 6,041,667	$ 42,291,667	$ 48,333,333
$ 48,333,333	Jun-13	$ 2,013,889	$ 46,319,444	$ 48,333,333
$ 580,000,000		$ 290,000,000	$ 290,000,000	$ 580,000,000

The alternative is that the Insurance Industry pro rata the Fire Service Levy for the full $580,000,000 to be collected. The effect of this approach is shown in the table below:

Total Amount to be Collected by Insurance	Month	Portion collected by Insurance Industry – Pro-rata with Rates	Portion to be collected from Insurers alone
$ 48,333,333	Jul-12	$ 46,319,444	$ 92,638,889
$ 48,333,333	Aug-12	$ 42,291,667	$ 84,583,333
$ 48,333,333	Sep-12	$ 38,263,889	$ 76,527,778
$ 48,333,333	Oct-12	$ 34,236,111	$ 68,472,222
$ 48,333,333	Nov-12	$ 30,208,333	$ 60,416,667
$ 48,333,333	Dec-12	$ 26,180,556	$ 52,361,111
$ 48,333,333	Jan-13	$ 22,152,778	$ 44,305,556
$ 48,333,333	Feb-13	$ 18,125,000	$ 36,250,000
$ 48,333,333	Mar-13	$ 14,097,222	$ 28,194,444
$ 48,333,333	Apr-13	$ 10,069,444	$ 20,138,889
$ 48,333,333	May-13	$ 6,041,667	$ 12,083,333
$ 48,333,333	Jun-13	$ 2,013,889	$ 4,027,778
$ 580,000,000		$ 290,000,000	$ 580,000,000

There is just no simple fair and reasonable solution other than to have a transition where the collection of the tax is partially funded by fire service levies and part by property rates.

We have a completely ineffectual opposition in Victoria and while industry journalists clearly understand the problem, the main stream media do not.

So where does that leave the rest of us that can see just how damaging this is for our industry, our customers and for the Victorian government.

Talk about missing the boat!

2012-05-06T00:00:00+10:00

In response he wrote in his blog:

To my mind this press release completely misses the boat. Let me explain why:

It was the Brumby Government under pressure from the Victorian National Party following the Victorian Black Saturday Royal Commission, and campaigns such as that mounted by www.NoTaxOnInsurance.com.au, Insurance News, Insurance News Australia, NIBA, Zuich Insurance and a great many individuals within the Insurance Industry that announced the removal of fire service levy back on 27th August 2009 and not this current Baillieu Government.
For this, the 2011/2012 period the Fire Service Levy imposed on the insurance industry went up by nearly $100 million from $544.2 million in 2010/2011 to a revised $641.9 million for 2011/2012.
The expected Fire Service Levy for 2012/2013 is a further $580.5 million.
The reason for the increase is that this government pushed through $250 million (1/4 billion dollars) of capital expenditure in full to the Insurance Industry before it moves to property rates. The benefit of this capital expenditure will benefit all Victorians for 20+ years and yet the Insurance Industry through the prudent and risk adverse have met the full cost.
Despite Queensland, South Australia and Western Australia all realising the need to pro-rata the transition of fire service levy between the outgoing tax on insurance and the property tax, the Baillieu Government are saying that the Insurance Industry has to meet the full cost.
The Victorian Government refuse the Insurance Industry to work together to work out a uniform approach to solve the major problem. (I wonder if the Victorian Government will take the same approach to the local governments. I doubt it – the policitical back lash would be too great.)
Let us not forget the Baillieu Government delayed the removal of the insurance based Fire Service Levy by 12 months!
The government have had since August 2009 to work this out and could have (should have) followed the working success of the transitional arrangements used by Queensland, South Australia and Western Australia) but only give the Insurance Industry less than 1 month to sort it out.

It is point 5 that is causing the greatest grief to the Insurance Industry including the insurance companies that the ICA claims to represent.

Total Amount to be Collected by Insurance	Month	Portion collected by Insurance Industry	Portion to be collected from Property Rates	Total Collected
$ 48,333,333	Jul-12	$ 46,319,444	$ 2,013,889	$ 48,333,333
$ 48,333,333	Aug-12	$ 42,291,667	$ 6,041,667	$ 48,333,333
$ 48,333,333	Sep-12	$ 38,263,889	$ 10,069,444	$ 48,333,333
$ 48,333,333	Oct-12	$ 34,236,111	$ 14,097,222	$ 48,333,333
$ 48,333,333	Nov-12	$ 30,208,333	$ 18,125,000	$ 48,333,333
$ 48,333,333	Dec-12	$ 26,180,556	$ 22,152,778	$ 48,333,333
$ 48,333,333	Jan-13	$ 22,152,778	$ 26,180,556	$ 48,333,333
$ 48,333,333	Feb-13	$ 18,125,000	$ 30,208,333	$ 48,333,333
$ 48,333,333	Mar-13	$ 14,097,222	$ 34,236,111	$ 48,333,333
$ 48,333,333	Apr-13	$ 10,069,444	$ 38,263,889	$ 48,333,333
$ 48,333,333	May-13	$ 6,041,667	$ 42,291,667	$ 48,333,333
$ 48,333,333	Jun-13	$ 2,013,889	$ 46,319,444	$ 48,333,333
$ 580,000,000		$ 290,000,000	$ 290,000,000	$ 580,000,000

The alternative is that the Insurance Industry pro rata the Fire Service Levy for the full $580,000,000 to be collected. The effect of this approach is shown in the table below:

Total Amount to be Collected by Insurance	Month	Portion collected by Insurance Industry – Pro-rata with Rates	Portion to be collected from Insurers alone
$ 48,333,333	Jul-12	$ 46,319,444	$ 92,638,889
$ 48,333,333	Aug-12	$ 42,291,667	$ 84,583,333
$ 48,333,333	Sep-12	$ 38,263,889	$ 76,527,778
$ 48,333,333	Oct-12	$ 34,236,111	$ 68,472,222
$ 48,333,333	Nov-12	$ 30,208,333	$ 60,416,667
$ 48,333,333	Dec-12	$ 26,180,556	$ 52,361,111
$ 48,333,333	Jan-13	$ 22,152,778	$ 44,305,556
$ 48,333,333	Feb-13	$ 18,125,000	$ 36,250,000
$ 48,333,333	Mar-13	$ 14,097,222	$ 28,194,444
$ 48,333,333	Apr-13	$ 10,069,444	$ 20,138,889
$ 48,333,333	May-13	$ 6,041,667	$ 12,083,333
$ 48,333,333	Jun-13	$ 2,013,889	$ 4,027,778
$ 580,000,000		$ 290,000,000	$ 580,000,000

There is just no simple fair and reasonable solution other than to have a transition where the collection of the tax is partially funded by fire service levies and part by property rates.

We have a completely ineffectual opposition in Victoria and while industry journalists clearly understand the problem, the main stream media do not.

So where does that leave the rest of us that can see just how damaging this is for our industry, our customers and for the Victorian government.

LMI Group entrusted with major fire in Sydney

2012-05-06T00:00:00+10:00

2012-04-27T00:00:00+10:00

Due to a combination of a last grab for cash by including $250 million of captial expenditure in the CFA budget over the past 3 years and the ridiculous way that the Baillieu Government has transitioned the move of Fire Service Levy from the Insurance Industry to property rates, insurers were expected to have to increase the FSL rate that they charged their customers.

The first major insurer announced that as from today, the following rates would apply from today 27th April 2012:

	Victorian	Victorian
	Country	Metro
Fire / ISR / Consequential Loss	95%	54%
Fire / ISR / Consequential Loss	(previously 85%)	(previously 44%)
Construction Risk	95%	54%
Construction Risk	(previously 85%)	(previously 44%)
Householders & House Owners	46%	28%
Householders & House Owners	(previously 36%)	(previously 18%)

*Item*	*Tax Rate*	$	*Tax*	*Tax on Tax*
Premium inc Terrorism Levy		1,000.00
*Plus* Fire Service Tax	95%	950.00	950.00
Sub Total		1,950.00
*Plus* GST	10%	195.00	195.00	95.00
Sub Total		2,145.00
*Plus* Stamp Duty	10%	214.50	214.50	114.50
Total Cost of Insurance		2,359.50	1,359.50	209.50

It needs to be kept in mind that:

Insurers have had to increase premiums due to the over $5 billion in catastrophe payouts during 2011.
Business owners need to increase their property and business interruption insurance covers due to the increase cost of reinstating damaged buildings, machinery and plant due to the introduction of the carbon tax. If they fail to do so they will be caught with penalties for under insurance and in the case of a major loss find they do not have enough to replace their assets.
The $1,000 premium that the insurer collects includes a Federal Terrorism levy.
Out of the $1,000 premium, Insurers have to pay rents, wagers, reinsurance costs, taxes and the biggest expense, insurance claims.
The pure tax the Government is charging is 139.50% of the premium.

Both the Liberal and National Parties campaigned heavily at the last election on this issue and we now find that through their greed and incompetence adequate insurance is now less affordable than ever.

We all know that people lost their lives in the Victorian bush fires where people who were not insured stayed back to protect their property and perished.

It is the role of any good government to a) protect its citizens and b) the economy. The Bailliue/Ryan Government with their handing of the fire service levy forcing people to go un or under insured combined with their pillaging of WorkCover has demonstrated that it does not support small, medium or big business.

The Victorian Government has stated they will have a $100 million surplus. The real question is at what cost to our economy?

What should have happened is not rocket science. Every other state that has removed Fire Service Levy did it smoothly and without this need for an increase or extra administration.

Knowing that the cost of insurance must go up due to the spike in natural disasters, even if they wanted to sneak in the massive capital expenditure which would not pass the accounting standard in a third world country, all they had to do was pro rata the FSL down each month for the insurance industry and pro rata it up at the same rate on property rates. To expect an Insured to pay a full year’s FSL when their insurance falls due next April, May or June 2013 is just plain dumb.

The problem we all face is that we have come to accept dumb incompetent government as the norm. Or have we? The Queensland election showed that the electorate is not as gullible as our politicians believe.

While we wait for the next Victorian election to show our displeasure it is not going to help business and home owners. I really urge you to seriously consider what you risk when you do not insure. The question I ask you: if something does happen to your home or business, if you are not fully insured who is going to get what is left? You and your family, or your bank/finance company?

If your business is like mine, it is your sole source of income, your major investment, the mortage over your home and your superannuation. It is far too much to risk to not be fully insured!

So what does this all mean for business in Victoria? Well it is simple. The overall cost of insurance will go up significantly. The following table shows the huge amount of tax that a business has to pay. If we start with a $1,000 base premium and we add the 11.76% higher rate of 95% the total premium comes to $2,359.50. With the triple taxation effect of the GST and State Government Stamp Duty the tax on tax is $209.50.

Fire Service Levy could not come at worst time!

2012-04-27T00:00:00+10:00

The first major insurer announced that as from today, the following rates would apply from today 27th April 2012:

	Victorian	Victorian
	Country	Metro
Fire / ISR / Consequential Loss	95%	54%
Fire / ISR / Consequential Loss	(previously 85%)	(previously 44%)
Construction Risk	95%	54%
Construction Risk	(previously 85%)	(previously 44%)
Householders & House Owners	46%	28%
Householders & House Owners	(previously 36%)	(previously 18%)

*Item*	*Tax Rate*	$	*Tax*	*Tax on Tax*
Premium inc Terrorism Levy		1,000.00
*Plus* Fire Service Tax	95%	950.00	950.00
Sub Total		1,950.00
*Plus* GST	10%	195.00	195.00	95.00
Sub Total		2,145.00
*Plus* Stamp Duty	10%	214.50	214.50	114.50
Total Cost of Insurance		2,359.50	1,359.50	209.50

It needs to be kept in mind that:

Insurers have had to increase premiums due to the over $5 billion in catastrophe payouts during 2011.
Business owners need to increase their property and business interruption insurance covers due to the increase cost of reinstating damaged buildings, machinery and plant due to the introduction of the carbon tax. If they fail to do so they will be caught with penalties for under insurance and in the case of a major loss find they do not have enough to replace their assets.
The $1,000 premium that the insurer collects includes a Federal Terrorism levy.
Out of the $1,000 premium, Insurers have to pay rents, wagers, reinsurance costs, taxes and the biggest expense, insurance claims.
The pure tax the Government is charging is 139.50% of the premium.

We all know that people lost their lives in the Victorian bush fires where people who were not insured stayed back to protect their property and perished.

The Victorian Government has stated they will have a $100 million surplus. The real question is at what cost to our economy?

What should have happened is not rocket science. Every other state that has removed Fire Service Levy did it smoothly and without this need for an increase or extra administration.

If your business is like mine, it is your sole source of income, your major investment, the mortage over your home and your superannuation. It is far too much to risk to not be fully insured!

Fire Service Levy could not come at worst time!

2012-04-27T00:00:00+10:00

The first major insurer announced that as from today, the following rates would apply from today 27th April 2012:

	Victorian	Victorian
	Country	Metro
Fire / ISR / Consequential Loss	95%	54%
Fire / ISR / Consequential Loss	(previously 85%)	(previously 44%)
Construction Risk	95%	54%
Construction Risk	(previously 85%)	(previously 44%)
Householders & House Owners	46%	28%
Householders & House Owners	(previously 36%)	(previously 18%)

*Item*	*Tax Rate*	$	*Tax*	*Tax on Tax*
Premium inc Terrorism Levy		1,000.00
*Plus* Fire Service Tax	95%	950.00	950.00
Sub Total		1,950.00
*Plus* GST	10%	195.00	195.00	95.00
Sub Total		2,145.00
*Plus* Stamp Duty	10%	214.50	214.50	114.50
Total Cost of Insurance		2,359.50	1,359.50	209.50

It needs to be kept in mind that:

Insurers have had to increase premiums due to the over $5 billion in catastrophe payouts during 2011.
Business owners need to increase their property and business interruption insurance covers due to the increase cost of reinstating damaged buildings, machinery and plant due to the introduction of the carbon tax. If they fail to do so they will be caught with penalties for under insurance and in the case of a major loss find they do not have enough to replace their assets.
The $1,000 premium that the insurer collects includes a Federal Terrorism levy.
Out of the $1,000 premium, Insurers have to pay rents, wagers, reinsurance costs, taxes and the biggest expense, insurance claims.
The pure tax the Government is charging is 139.50% of the premium.

We all know that people lost their lives in the Victorian bush fires where people who were not insured stayed back to protect their property and perished.

The Victorian Government has stated they will have a $100 million surplus. The real question is at what cost to our economy?

What should have happened is not rocket science. Every other state that has removed Fire Service Levy did it smoothly and without this need for an increase or extra administration.

If your business is like mine, it is your sole source of income, your major investment, the mortage over your home and your superannuation. It is far too much to risk to not be fully insured!

Fire Service Levy could not come at worst time!

2012-04-27T00:00:00+10:00

The first major insurer announced that as from today, the following rates would apply from today 27th April 2012:

	Victorian	Victorian
	Country	Metro
Fire / ISR / Consequential Loss	95%	54%
Fire / ISR / Consequential Loss	(previously 85%)	(previously 44%)
Construction Risk	95%	54%
Construction Risk	(previously 85%)	(previously 44%)
Householders & House Owners	46%	28%
Householders & House Owners	(previously 36%)	(previously 18%)

*Item*	*Tax Rate*	$	*Tax*	*Tax on Tax*
Premium inc Terrorism Levy		1,000.00
*Plus* Fire Service Tax	95%	950.00	950.00
Sub Total		1,950.00
*Plus* GST	10%	195.00	195.00	95.00
Sub Total		2,145.00
*Plus* Stamp Duty	10%	214.50	214.50	114.50
Total Cost of Insurance		2,359.50	1,359.50	209.50

It needs to be kept in mind that:

Insurers have had to increase premiums due to the over $5 billion in catastrophe payouts during 2011.
Business owners need to increase their property and business interruption insurance covers due to the increase cost of reinstating damaged buildings, machinery and plant due to the introduction of the carbon tax. If they fail to do so they will be caught with penalties for under insurance and in the case of a major loss find they do not have enough to replace their assets.
The $1,000 premium that the insurer collects includes a Federal Terrorism levy.
Out of the $1,000 premium, Insurers have to pay rents, wagers, reinsurance costs, taxes and the biggest expense, insurance claims.
The pure tax the Government is charging is 139.50% of the premium.

We all know that people lost their lives in the Victorian bush fires where people who were not insured stayed back to protect their property and perished.

The Victorian Government has stated they will have a $100 million surplus. The real question is at what cost to our economy?

What should have happened is not rocket science. Every other state that has removed Fire Service Levy did it smoothly and without this need for an increase or extra administration.

If your business is like mine, it is your sole source of income, your major investment, the mortage over your home and your superannuation. It is far too much to risk to not be fully insured!

Fire Service Levy could not come at worst time!

2012-04-27T00:00:00+10:00

The first major insurer announced that as from today, the following rates would apply from today 27th April 2012:

	Victorian	Victorian
	Country	Metro
Fire / ISR / Consequential Loss	95%	54%
Fire / ISR / Consequential Loss	(previously 85%)	(previously 44%)
Construction Risk	95%	54%
Construction Risk	(previously 85%)	(previously 44%)
Householders & House Owners	46%	28%
Householders & House Owners	(previously 36%)	(previously 18%)

*Item*	*Tax Rate*	$	*Tax*	*Tax on Tax*
Premium inc Terrorism Levy		1,000.00
*Plus* Fire Service Tax	95%	950.00	950.00
Sub Total		1,950.00
*Plus* GST	10%	195.00	195.00	95.00
Sub Total		2,145.00
*Plus* Stamp Duty	10%	214.50	214.50	114.50
Total Cost of Insurance		2,359.50	1,359.50	209.50

It needs to be kept in mind that:

Insurers have had to increase premiums due to the over $5 billion in catastrophe payouts during 2011.
Business owners need to increase their property and business interruption insurance covers due to the increase cost of reinstating damaged buildings, machinery and plant due to the introduction of the carbon tax. If they fail to do so they will be caught with penalties for under insurance and in the case of a major loss find they do not have enough to replace their assets.
The $1,000 premium that the insurer collects includes a Federal Terrorism levy.
Out of the $1,000 premium, Insurers have to pay rents, wagers, reinsurance costs, taxes and the biggest expense, insurance claims.
The pure tax the Government is charging is 139.50% of the premium.

We all know that people lost their lives in the Victorian bush fires where people who were not insured stayed back to protect their property and perished.

The Victorian Government has stated they will have a $100 million surplus. The real question is at what cost to our economy?

What should have happened is not rocket science. Every other state that has removed Fire Service Levy did it smoothly and without this need for an increase or extra administration.

If your business is like mine, it is your sole source of income, your major investment, the mortage over your home and your superannuation. It is far too much to risk to not be fully insured!

Victorian Fire Service Levy - the good news the bad news

2012-04-22T00:00:00+10:00

The good news is that the Victorian Government has finally confirmed, that the inequitable Fire Service Levy imposed on the insurance industry causing triple taxation making insurance so expensive, is to be completely removed by 1 July 2013 ready for the 2013 State elections.

The bad news is that the Baillieu State Government has extracted a whopping 1/4 billion (not it is not a typo) in Capital Expenditure for the Country Fire Authority (CFA) out of those prudent enough to insure over the last 2 years since the Brumby Government said they would dump the tax.

Now we learn that unlike any other state that has removed the tax, namely Queensland, South Australia, and Western Australia, the Baillieu Government refuses to allow a transition between the new funding model and the current model. This is a complete nightmare for the insurance industry and just proves that the general view that this is one of most ineffectual out of touch state governments in the history of Victoria.

I am apolitical only seeking a change of government believing that Peter Ryan, as the leader of Victorian National Party got it when it came to the FSL. He is now the Deputy Premier of Victoria and holds the portfolios of Regional and Rural Development, Police and Emergency Services and Bushfire Response. He of all people should understand the problem but like so many politicians he is all talk and no meaningful action.

If we had our time over, I think a lot of us would have preferred Premier Brumby had been allowed to finish the job and see the end of the FSL while he was at the helm.

Victorian Fire Service Levy - the good news the bad news

2012-04-22T00:00:00+10:00

If we had our time over, I think a lot of us would have preferred Premier Brumby had been allowed to finish the job and see the end of the FSL while he was at the helm.

Victorian Fire Service Levy - the good news the bad news

2012-04-22T00:00:00+10:00

If we had our time over, I think a lot of us would have preferred Premier Brumby had been allowed to finish the job and see the end of the FSL while he was at the helm.

LMI appointed on flood claims from around the world.

2012-03-09T00:00:00+11:00

The LMI Group have been appointed on several new claims valued at near $2 billion arising from the Thai floods, the Queensland floods of 2011 and the recent flooding of the Murrumbidgee River which has effected many towns in New South Wales .

2012-03-06T00:00:00+11:00

When major clothing brand Sprider Stores SA sustained a major fire in Athens recently they turned toGreek based International Insititute of Claims Preparers ("IICP") member FAIR Consulting.

With years of training and experience in engineering, business interruption and insurance claims preparation, FAIR Consulting is ideally placed to assist the insured business.

Being a close association of highly skilled claims professionals, assistance will be provided as an when required from other IICP members world wide to ensure that this client receives the best possible advice and guidance. Something that IICP member companies bring to each and every claim on which they are entrusted.

IICP Member FAIR Consulting appointed on major Greek fire

2012-03-06T00:00:00+11:00

When major clothing brand Sprider Stores SA sustained a major fire in Athens recently they turned toGreek based International Insititute of Claims Preparers ("IICP") member FAIR Consulting.

With years of training and experience in engineering, business interruption and insurance claims preparation, FAIR Consulting is ideally placed to assist the insured business.

IICP Member FAIR Consulting appointed on major Greek fire

2012-03-06T00:00:00+11:00

When major clothing brand Sprider Stores SA sustained a major fire in Athens recently they turned toGreek based International Insititute of Claims Preparers ("IICP") member FAIR Consulting.

With years of training and experience in engineering, business interruption and insurance claims preparation, FAIR Consulting is ideally placed to assist the insured business.

IICP Member FAIR Consulting appointed on major Greek fire

2012-03-06T00:00:00+11:00

When major clothing brand Sprider Stores SA sustained a major fire in Athens recently they turned toGreek based International Insititute of Claims Preparers ("IICP") member FAIR Consulting.

With years of training and experience in engineering, business interruption and insurance claims preparation, FAIR Consulting is ideally placed to assist the insured business.

When will the taxes on insurance go?

2012-03-04T00:00:00+11:00

Many within the insurance industry and others in Victoria are awaiting the news from the Victorian Government that the promise they made at the last State election will be honoured and that the completely unjust and downright crazy Fire Service Levy will be phased out from commercial property, and home & contents insurance from 1 July 2012 with it being removed completed by 30 June 2013.

The decision to remove this impost on Victorians was in fact made by the Brumby Labour Government in line with the recommendation of the “Black Saturday” Royal Commission. Mr Brumby announced this on the 27th August 2010. After many years with my own personal campaign through www.NoTaxOnInsurance.com.au and other avenues, it was one of the great highlights of my career to see the end of this insidious tax.

I thought we were certain to see the end of the tax even with the change of government in Victoria as Mr Ryan, the leader of the Victorian National Party was such a harsh critic of the tax.

The main problem I saw with the tax was that it resulted in too many home and business owners not insuring or if insuring not insuring enough. This tax on the prudent and risk averse meant that many people were found homeless or in the case of business, with their life’s work turned to ashes during the Victorian “Black Saturday” bushfires. Many families are yet to recover despite the very generous donations of the Australia people and people from all around the world for that matter.

With tax on tax on tax, it got to the ludicrous position that for every $1,000 paid by Victorian rural business they were paying tax of $1,226.40. Even Mr Brumby had to accept that when you double the price of any commodity people by less. This is simple basic economics. The full calculation speaks for itself in the table below:

Item	Tax Rate	$	Tax	Tax on Tax
Premium inc Terrorism Levy		1,000.00
Plus Fire Service Tax	84%	840.00	840.00
Sub Total		1,840.00
Plus GST	10%	184.000	184.00	84.00
Sub Total		2,024.00
Plus Stamp Duty	10%	202.40	202.40	102.40
Total Cost of Insurance		2,226.40	1,226.40	186.40

The elephant in the room was how many people lost their lives trying to save their uninsured home or business rather than flee in safety knowing they could replace their assets with insurance.

Insurers have to have the basis for the removal of the Victorian Fire Service levy shortly as it is only a few short weeks before the June renewals will start to be processed and forwarded out to Insureds and their insurance brokers.

We have seen a lot of broken promises of late, particularly in Federal politics of late. Victorian business cannot afford to see this promise broken. With insurance premiums on the rise due the massive natural disaster payouts during 2011 in Australia ($4.9 billion) coupled with those from elsewhere around the world combined with higher reinsurance rates means that further delays will force more and more home and business owners to cut insurance. Victoria will suffer as a result.

Victoria is not the only state with this counterproductive tax. New South Wales, Tasmania (business insurance only) and New Zealand all retain the tax which the other Australian states have got rid of years ago. I only hope we do not have to witness the loss of another 173 lives and yet another Royal Commission to show these governments the bleeding obvious. All in society benefit from a modern well equiped fire service, we all need to contribute to the cost, not just those smart enough to insure.

There is no doubt in my mind after my discussions with an Insured LMI is helping following the Christchurch/Canterbury earthquakes in New Zealand that they were under insured in an attempt to reduce their insurance premium, a premium artificially inflated by a burdensome fire service levy. When will all governments learn?

Come on the Baillue Government, do the right thing for your state and confirm that tax will go from 1 July 2012.

When will the taxes on insurance go?

2012-03-04T00:00:00+11:00

I thought we were certain to see the end of the tax even with the change of government in Victoria as Mr Ryan, the leader of the Victorian National Party was such a harsh critic of the tax.

Item	Tax Rate	$	Tax	Tax on Tax
Premium inc Terrorism Levy		1,000.00
Plus Fire Service Tax	84%	840.00	840.00
Sub Total		1,840.00
Plus GST	10%	184.000	184.00	84.00
Sub Total		2,024.00
Plus Stamp Duty	10%	202.40	202.40	102.40
Total Cost of Insurance		2,226.40	1,226.40	186.40

The elephant in the room was how many people lost their lives trying to save their uninsured home or business rather than flee in safety knowing they could replace their assets with insurance.

Come on the Baillue Government, do the right thing for your state and confirm that tax will go from 1 July 2012.

When will the taxes on insurance go?

2012-03-04T00:00:00+11:00

I thought we were certain to see the end of the tax even with the change of government in Victoria as Mr Ryan, the leader of the Victorian National Party was such a harsh critic of the tax.

Item	Tax Rate	$	Tax	Tax on Tax
Premium inc Terrorism Levy		1,000.00
Plus Fire Service Tax	84%	840.00	840.00
Sub Total		1,840.00
Plus GST	10%	184.000	184.00	84.00
Sub Total		2,024.00
Plus Stamp Duty	10%	202.40	202.40	102.40
Total Cost of Insurance		2,226.40	1,226.40	186.40

The elephant in the room was how many people lost their lives trying to save their uninsured home or business rather than flee in safety knowing they could replace their assets with insurance.

Come on the Baillue Government, do the right thing for your state and confirm that tax will go from 1 July 2012.

Thanks for your Support

2012-02-25T00:00:00+11:00

LMI turned 13 today, having been founded by Dr Allan Manning and starting operations officially on 25 February 1999.

Dr Manning in his weekly external blog www.allanmanning.com wrote: We have done a lot of growing up in that 13 years and we continue to do so bringing skilled people into our business not only to do our core businesses of claims services, risk management, business continuity, knowledge management, and training but also to support those that do the front line work. Significant investment has been made in the areas of Researchers, Finance, IT, Sales and HR. It is all part of any business growing up to provide meaningful, prompt and accurate service to our customers.

Having now reached our teenage years, like most teenagers we feel a bit rebellious, challenging the way things are done (both internally and in our industry) and now looking to take on the world in in the case of Knowledge Services, Learning and Development and ultimately Claims Services. Like teenagers and most companies that have grown rapidly we are also feeling against some growing pains, but these are nothing we cannot and will not manage.

The lessons we have learned in the school of life (perhaps that should read, "school of hard knocks") and our investments in our team, our eServices, and our brand have resulted in a great many opportunities being laid before us as we enter our 14th year.

Like our past achievements, some of these we built and the people are coming, others we have raised a problem and a possible answer and we have been encouraged to implement the solution, while more and more, others are coming to us for a solution to a particular problem.

We have come a long way so far but getting to 13 is not the end. It is not even the beginning of the end. We certainly have had a good start and we have moved beyond being a start up business. After thinking about where we are up to as an organisation, I borrow a line from a speach Winston Churchill gave in November 1942, " it is the end of the beginning" and the start of a new, exciting and challenging time in the life of LMI.

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

It is for exactly this reason that LMI developed and maintain the on line product comparitor website www.policycomparison.com . The site compares over 3,000 policies, providing a link to each wording and tens of thousands dating back to 1900.

The focus on the site is understanding policy coverage not price. In addition to the comparisons, the site has a Points to Consider section which explains the relevance of each section of the policy and trips to be careful of. There is also a library of insurance related articles and papers.

It takes a dedicated team of 16 staff to keep the site constantly up to date. Only 1 insurer is known not to subscribe. All insurance brokers in Australia subscribe as does the Financial Ombudsmen Service themselves.

While I do not wish to contradict the General Insurance Ombudsmen, I can give him comfort that the problem is not universal with over 250,000 comparisions done on the site each year and the usage rates increasing every month. As a subscriber themselves, it must be disheartening to FOS to know that the training and comparison site is available to the sellers of insurance and yet not all make the most of it. This is a feeling, as the inventor of the site, naturally share.

On a positive note, the value of the service has been appreciated in other jurisdictions. It is already available in New Zealand and this year will be available in the UK, South Africa and the United States.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

FOS claim sellers of insurance don't know what they sell

2012-02-23T00:00:00+11:00

This is the headline from ABC News on the 23rd February 2012. To read the entire article please go to http://www.abc.net.au/news/2012-02-23/insurance-ombudsman-urges-staff-training/3847102.

In a nutshell Ombudsman John Price told AM there must be a greater focus on training and communication in the industry to ensure frontline staff provide customers with clear information.

To take a tour of the services provided by the site go to http://www.policycomparison.com/taketour.aspx .

Water Perils

2012-02-23T00:00:00+11:00

Once again we have seen heavy rains and flooding in different parts of Australia, lending further impetus to the Government and media focus on the industry’s response to claims. To assist subscribers in this regard we have introduced an additional option on Home and Contents and Commercial Package – Material Damage comparisons allowing the selection of the “Water Perils” items consolidated in one place. This option is available by clicking on the appropriate radio button at the top of the comparison. This comparison summary is displayed in the form of symbols, but hovering the mouse over each symbol reveals the relevant text.

LMI Welcomes 5 new team members

2012-02-21T00:00:00+11:00

As LMI grows and expands its range of services within Australia and New Zealand as well as internationally, fhe recruitment of quality team members who share the organisation's passion for knowledge management and transfer, technical expertise, customer satisfaction and utmost good faith is of paramount importance.

We are pleased to introduce 5 key staff who have joined our Melbourne based team thus far in 2012.

From left to right, Paul Tilley joins as a claims preparer with expertise in property, business interruption, and all casualty classes. Fergal O'Connell is an engineer and claims preparer specialising in construction, machinery, heavy motor and buildings, Katherine Horsey joins as a researcher in LMI Publications area, Peter Cocks heads HR and Global Operations and Elle Cody is the new receptionist in Melbourne Office.

2012-02-11T00:00:00+11:00

Dr Allan Manning, LMI Group, Managing Director, spoke to delegates at the 2012 AFMA / IAAA Conference held at the Marriott Hotel on the Gold Coast. The topic of Dr Manning's talk was the lesson's learned from the spate of natural disasters to hit Australia and New Zealand during 2011.

In view of the importance of the topic Dr Manning was brought on early and given extra time to address the issues. Dr Manning continues to rate as one of the most entertaining and informative speakers on general insurance delivering over 120 seminars, lecturers and training sessions per year.

2011-12-26T00:00:00+11:00

Despite being a very intense year with very few days off during the entire year, LMI Group's Claims Services Division, Loss Management International, has responded to all three natural disasters to hit Australia and New Zealand over the past few days.

2011-12-15T00:00:00+11:00

LMI Group and the International Institute of Claims Preparers ("IICP") are proud of the fact that our Managing Director and International President of the IICP, Dr Allan Manning, has been rated amongst the top 20 most influential people in Australia and New Zealand for the second year running. The reason for this award, as reported in Insurance NEWS (the magazine), are:

2011-12-15T00:00:00+11:00

For a full copy of the article, please go to: http://www.lmigroup.com/documents/top20.pdf

Congratutions, Allan, well done and well deserved!

New Recipient of LMI Group’s Phoenix Award

2011-12-08T00:00:00+11:00

2011-12-04T00:00:00+11:00

Just how many comparisons are maintained by LMI PolicyComparison for the insurance industry was demonstrated recently when the stats were run to determine the number of policies that had been reviewed and updated on the LMI PolicyComparison website. Not only were the policies counted, but also a check of the total number of pages to which these policies run.

The staggering truth is that if you wanted to print off just the policies that had changed and were updated on LMI PolicyComparison, you would need a full dozen boxes of copy paper...assuming you printed each page double-sided.

This is only around 25% of all the policies available for comparison to subscribers at any one time. Add to this policies from New Zealand and, more recently, the United Kingdom and South Africa, and the volume of work behind the product is appreciated.

The highly dedicated team of researchers continue to update not only the comparisons, but the templates and fields that are compared, to ensure that the comparisons remain relevant and up-to-date.

Plans are now well underway to take the product into North America in 2012 at the request of existing subscribers. This is perhaps the greatest compliment of all.

To learn more about LMI PolicyComparison or to maximise your subscription, please contact the head of LMI PolicyComparison, Peter Jenkins, via email: peter.jenkins@lmigroup.com.

LMI PolicyComparison Highlights Changing Insurance Market

2011-12-04T00:00:00+11:00

The highly dedicated team of researchers continue to update not only the comparisons, but the templates and fields that are compared, to ensure that the comparisons remain relevant and up-to-date.

Plans are now well underway to take the product into North America in 2012 at the request of existing subscribers. This is perhaps the greatest compliment of all.

To learn more about LMI PolicyComparison or to maximise your subscription, please contact the head of LMI PolicyComparison, Peter Jenkins, via email: peter.jenkins@lmigroup.com.

LMI PolicyComparison Highlights Changing Insurance Market

2011-12-04T00:00:00+11:00

The highly dedicated team of researchers continue to update not only the comparisons, but the templates and fields that are compared, to ensure that the comparisons remain relevant and up-to-date.

Plans are now well underway to take the product into North America in 2012 at the request of existing subscribers. This is perhaps the greatest compliment of all.

To learn more about LMI PolicyComparison or to maximise your subscription, please contact the head of LMI PolicyComparison, Peter Jenkins, via email: peter.jenkins@lmigroup.com.

LMI PolicyComparison Highlights Changing Insurance Market

2011-12-04T00:00:00+11:00

The highly dedicated team of researchers continue to update not only the comparisons, but the templates and fields that are compared, to ensure that the comparisons remain relevant and up-to-date.

Plans are now well underway to take the product into North America in 2012 at the request of existing subscribers. This is perhaps the greatest compliment of all.

To learn more about LMI PolicyComparison or to maximise your subscription, please contact the head of LMI PolicyComparison, Peter Jenkins, via email: peter.jenkins@lmigroup.com.

New Feature - Home and Motor

2011-11-24T00:00:00+11:00

Prestige vs. Standard Domestic Home & Contents/Private Motor Comparisons – You can now directly compare Prestige Home & Contents and Prestige Private Motor beside Standard Home and Contents and Private Motor policies on the one screen.

All the features of Prestige comparisons are now included in our new Domestic Comparison selections:
• Home and Contents (including Prestige)
• Private Motor (including Prestige)

As a separate selection for Prestige products is no longer required, this has been removed from our selection menu.

This improvement is a direct result of listening to your feedback. We trust you will find this new feature makes comparing domestic products easier and quicker.

Please let us know of any further improvements you would like to see to LMI PolicyComparison.

LMI Group MD Speaks at RMIA Conference

2011-11-20T00:00:00+11:00

2011-11-10T00:00:00+11:00

New Allianz Motor Fleet Comparison

2011-10-24T00:00:00+11:00

LMI PolicyComparison is pleased to advise subscribers that our comparison of Allianz Motor Fleet Insurance is now available.

LMI Group Launches New Portal

2011-10-21T00:00:00+11:00

LMI Entrusted with Claim Following Major Fire

2011-10-21T00:00:00+11:00

LMI Group's claims services division, Loss Management International Pty Ltd, have been appointed by the owners of a Tullamarine factory severely damaged by fire.

The fire damaged stock, plant and machinery as well as the building. Damage, including loss of rent and business interruption, is estimated in the millions.

The work of mitigating the loss and quantifying both the material damage and business interruption losses is now underway.

LMI Entrusted with Claim Following Major Fire

2011-10-21T00:00:00+11:00

LMI Group's claims services division, Loss Management International Pty Ltd, have been appointed by the owners of a Tullamarine factory severely damaged by fire.

The fire damaged stock, plant and machinery as well as the building. Damage, including loss of rent and business interruption, is estimated in the millions.

The work of mitigating the loss and quantifying both the material damage and business interruption losses is now underway.

LMI Recognise Broker Professionalism

2011-10-14T00:00:00+11:00

LMI Group's Managing Director, Dr Allan Manning, presents the brokers award to Mr Tom Powell of Westcourt, recognising the fact that Broker Powell's client survived a major loss and that the client remained with the broker 2 years after the loss.

LMI created the Phoenix Award as research shows that 50% of businesses fail within 2 years of a major loss, while 25% of those that survive change their insurance broker citing poor advice before the event or bad claims service afterwards.

The LMI Group is doing all it can to reduce both business failure and businesses view on insurance with its claims services division as well as knowledge based services such as LMI PolicyComparison, LMI BIcalculator, LMI RiskCoach, LMI PolicyCoach and LMI ContinuityCoach.

The Phoenix Award for brokers recognises responsible broking practice when put to the most important test. Test under fire!

Building Cost Calculator Update

2011-10-10T00:00:00+11:00

To be of benefit to subscribers, it is important that the building rates are updated on a regular basis and the latest update was made today.

In addition, the RiskCoach Building Cost Calculator has recently been updated to include information on estimated demolition costs for different types of buildings, which can be accessed from the 'Demolition Costs' area on the calculator page.

Traralgon, Victoria has also been added to the list of locations available and the website calculators' data has now been updated to the most recent figures (October).

Once logged in, you can access the Building Cost Calculator from under the 'Calculators' tab at the top of the screen.

The Building Cost Calculator data is kindly provided by Andrew Nock Valuers.

The most important point to keep in mind is that the calculator is an estimate only and should not be used to set a sum insured or declared value but does assist in determining whether a full risk/site specific valuation is required and it is LMI's strong recommendation to arrange full valuations done as a minimum of every three years.

LMI also provide financial valuations on the business interruption exposure and you are invited to contact your nearest LMI to learn more.

Building Cost Calculator Update

2011-10-10T00:00:00+11:00

To be of benefit to subscribers, it is important that the building rates are updated on a regular basis and the latest update was made today.

Traralgon, Victoria has also been added to the list of locations available and the website calculators' data has now been updated to the most recent figures (October).

Once logged in, you can access the Building Cost Calculator from under the 'Calculators' tab at the top of the screen.

The Building Cost Calculator data is kindly provided by Andrew Nock Valuers.

LMI also provide financial valuations on the business interruption exposure and you are invited to contact your nearest LMI to learn more.

NIBA Tells Treasurers to Add Insurance

2011-10-07T00:00:00+11:00

NIBA has urged NSW Treasurer, Mike Baird, and Queensland Treasurer, Andrew Fraser, to include insurance taxes on their post-tax forum working group agenda.

The two Treasuers were assigned by consensus to examine tax harmonisation among all states and territories.

Dallas Booth, NIBA CEO on behalf of members, urged Mr Baird of NSW to follow Victoria's lead and be the last mainland state to commit to abolishing the fire services levy on property insurance.

"When combined with GST and NSW stamp duty, the cost of the policy is increased by over 50%," he said.

Economic research had shown that by replacing these imposts with new or increased broader based taxes, gross domestic product would grow by almost 2% and leave the nation $500 million a year better off.

New Lumley Liability comparison

2011-09-27T00:00:00+10:00

LMI PolicyComparison is pleased to advise subscribers that our comparison of Lumley Broadform Liability Insurance is now available

New Ansvar Home comparisons

2011-09-27T00:00:00+10:00

LMI PolicyComparison is pleased to advise subscribers that our comparisons of Ansvar Home Cover and Home Cover Maxi Insurance are now available

Guild Insurance Subsribe to LMI RiskCoach

2011-09-26T00:00:00+10:00

The strong relationship between Guild Insurance and LMI Group continues with the recent decision by Guild to subscribe to LMI RiskCoach. “Guild have subscribed RiskCoach for a pilot group” said Neil Myhre, LMI’s Chief Knowledge Officer. “We certainly hope they will find it to be an invaluable research and training service, as with other LMI eServices”.

2011-09-26T00:00:00+10:00

LMI PolicyComparison is pleased to advise subscribers that our comparison of TIO Home Accidental Damage Insurance is now available

New TIO LE Home comparison

2011-09-26T00:00:00+10:00

LMI PolicyComparison is pleased to advise subscribers that our comparison of TIO Listed Events Home Insurance is now available

New TIO Landlord comparison

2011-09-26T00:00:00+10:00

LMI PolicyComparison is pleased to advise subscribers that our comparison of TIO Landlord Insurance is now available

Submission on Victorian Fire Service Property Levy

2011-09-25T00:00:00+10:00

Manning makes submission on Victorian Fire Services Levy

2011-09-25T00:00:00+10:00

Dr Allan Manning submitted his response today to the Victorian Government’s request for feedback to the Department of Treasury and Finance’s Options Paper on the Victorian Fire Services Property Levy.

Allan who has been a long time campaigner againt the tax, applauded the government in moving the tax away from insurance as Queensland, South Australia and Western Australia have already done. He also agreed and recorded his support on a number of the recommendations put forward.

He did urge government not to overcomplicate the new process and recommend that the transition be done it be done on a monthly pro rata basis rather than daily to minimise the transition costs to all concerned.

Dr Manning pointed out that what appears completely unjust at the present time is the significant amount of capital expenditure that has been included in the CFA budget in the 2011-2012 and 2012 -2013 budgets.

In fact from the time the decision was made to remove Fire Service Levy from insurance to when it will be finally removed just under $250 million of Capital Expenditure will be have been included in the CFA budget. (State Capital Program – Country Fire Authority, Page 53.)

While the benefits of this expenditure will be to all those living and working in the CFA region for up to the next 20 years, on the current funding model a massive 77.5% is to be borne by only by those that insure over the next year or two.

While this may allow the government to introduce the new tax at a lower level it puts an enormous burden on the home owners and business owners/operators that insure at a time when insurance premiums have to increase, typically by 25%, due to the $4 billion in catastrophe losses paid out the insurance industry during this calendar year.

The significant increase in premiums and fire service levy are made worse by the triple tax effect caused by GST and State Government Stamp Duty.

With two full fire seasons to go through before the tax on insurance is removed I fear this will cause both home owners and business owners, particularly in the CFA regions.

This whole issue is something that the current government, particularly Mr Peter Ryan and the Nationals campaigned heavily on to win government on and the people of Victoria appear to be have been let down and dare I say betrayed by the inclusion of such a huge amount of capital expenditure being included in the run off period of the existing inequitable Fire Service Levy.

Dr Manning recommended that during the transition that all capital expenditure be removed from the amount used to calculate the Fire Service Levy and only an amortised proportion based on the value to the state during the period be brought to account and taxed.

The 17th Century philosopher, John Lock (1681) argued that "Government has no other end but the preservation of property". Allan took this one step further and suggested that the primary role of government is to encourage and protect homes and businesses, and safeguard the on-going growth of the economy. The current system of funding fire services in Victoria has been working contrary to this primary role and this transition model is even worse as it will force people to not insure all classes or under insure.

As we saw following the ‘Black Saturday” bushfires this leads to people being caught in a cycle of poverty and dependence on welfare which places a greater burden on all within the community.

On the question of the appointment of a Essential Services Commission, Dr Manning gave it his full support however he went on to recommend that the power of the Essential Services Commission be extended to include the monitoring of expenses charged to the budgets of both the MFB and CFA; the fees paid to council etc to ensure that all parties involved act honestly and in the best interests of the people of Victoria.

For a full copy of Dr Manning’s submission please click here.

Manning makes submission on Victorian Fire Services Levy

2011-09-25T00:00:00+10:00

The significant increase in premiums and fire service levy are made worse by the triple tax effect caused by GST and State Government Stamp Duty.

With two full fire seasons to go through before the tax on insurance is removed I fear this will cause both home owners and business owners, particularly in the CFA regions.

As we saw following the ‘Black Saturday” bushfires this leads to people being caught in a cycle of poverty and dependence on welfare which places a greater burden on all within the community.

For a full copy of Dr Manning’s submission please click here.

Manning makes submission on Victorian Fire Services Levy

2011-09-25T00:00:00+10:00

The significant increase in premiums and fire service levy are made worse by the triple tax effect caused by GST and State Government Stamp Duty.

With two full fire seasons to go through before the tax on insurance is removed I fear this will cause both home owners and business owners, particularly in the CFA regions.

As we saw following the ‘Black Saturday” bushfires this leads to people being caught in a cycle of poverty and dependence on welfare which places a greater burden on all within the community.

For a full copy of Dr Manning’s submission please click here.

Manning paints Insurance Industry in positive light

2011-09-25T00:00:00+10:00

Dr Allan Manning of the LMI Group was interviewed by Miller Communications for a segment in their documentary “When The Rains Come Again” which aired on Sunday 25^th September 2011 on the 9 network.

Allan explained that insurance is there to help home and business owners when they need it most. He went on to explain that the covers are clearly spelt out in most insurance policies and that if anyone is not certain of what they want or need then they should engage an insurance broker to assist them as a trusted adviser.

One of our Senior Researchers - Wendy Hayden had a big shock when she was diagnosed with MS earlier this year. Wendy has worked with PCI since its inception, and continues to be a critical team member today. Wendy, only in her late 30's with 2 young boys, continues to have an amazing positive attitude and is determined to make the most out of life. Wendy has good and bad days and thankfully the good outnumber the bad. She has daily injections and now has a big vitamin regime plus having regular physical therapy.

Wendy says .... It's all a bit of a learning curve at the moment figuring out what my physical (and sometimes mental) capabilities are and ways to try manage my limitations The MS Society has been enormously helpful to us as a family providing support and resources as well as the physio, counselling and speech therapy at no cost. They regularly phone me and come out to visit when I am unable to get to them. We have been astounded by their support and know that we wouldn't have made it through this without them. Doing the Moonwalk is our way of saying thank you to the great people at the MS Society and to try and raise some much needed funds so that the next person who is diagnosed with this disease is as supported as we have been"

The team aims to raise $10,000 to help the MS society continue to support families like Wendy's.

LMI Group is sponsoring the team shirts for Lunar Moves Insurance Girls (LMIG) and are making a donation. Your support would be very greatly appreciated.

Please take a moment to view our online fundraising web page and help us reach our team goal. It’s easy and will take no time at all. You can donate quickly and easily online by clicking on the link below:

http://www.msqldevents.org.au/MS-Moonlight-Walk-2011/Lunar+Moves+Insurance+Girls/g

All information is secure and all donations will be sent electronically to MS Australia - QLD. A tax-deductible receipt will be sent straight to you when the transaction has been completed

Your support is greatly appreciated. Thank you!! - From Lunar Moves Insurance Girls

Please support the PolicyComparison Girls walk for MS

2011-09-22T00:00:00+10:00

The LMI PolicyComparison team in Brisbane are participating in MS Moonlight Walk 2011 on Friday 14 October 2011 to raise funds for more than 20,000 people living with multiple sclerosis

The team aims to raise $10,000 to help the MS society continue to support families like Wendy's.

LMI Group is sponsoring the team shirts for Lunar Moves Insurance Girls (LMIG) and are making a donation. Your support would be very greatly appreciated.

http://www.msqldevents.org.au/MS-Moonlight-Walk-2011/Lunar+Moves+Insurance+Girls/g

All information is secure and all donations will be sent electronically to MS Australia - QLD. A tax-deductible receipt will be sent straight to you when the transaction has been completed

Your support is greatly appreciated. Thank you!! - From Lunar Moves Insurance Girls

Please support the PolicyComparison Girls walk for MS

2011-09-22T00:00:00+10:00

The LMI PolicyComparison team in Brisbane are participating in MS Moonlight Walk 2011 on Friday 14 October 2011 to raise funds for more than 20,000 people living with multiple sclerosis

The team aims to raise $10,000 to help the MS society continue to support families like Wendy's.

LMI Group is sponsoring the team shirts for Lunar Moves Insurance Girls (LMIG) and are making a donation. Your support would be very greatly appreciated.

http://www.msqldevents.org.au/MS-Moonlight-Walk-2011/Lunar+Moves+Insurance+Girls/g

All information is secure and all donations will be sent electronically to MS Australia - QLD. A tax-deductible receipt will be sent straight to you when the transaction has been completed

Your support is greatly appreciated. Thank you!! - From Lunar Moves Insurance Girls

Manning speaks at NIBA 2011

2011-09-20T00:00:00+10:00

LMI Group's Managing Director, Dr Allan Manning, in his role as international president of the International Institute of Claims Preparers spoke today at the 29th Annual NIBA Conference as part of the Allianz Thought Leadership Day.

Dr Manning was introduced by Sarah Johns, Segment and Marketing Coordinator, Broker and Agency Allianz. Allan covered four topics, those being: 1) Placing Slips; 2) Policy Comparisons; 3) Verbal and Written Communication; and Fire Service Levies.

Allan used his experience from the recent catastrophes in Australia and New Zealand using case studies of many of the regular issues he had seen. Fire Service Levies are of particular concern to Allan and he outlined why he believes the home and business owners in rural Victoria have been betrayed by the new State Government who have allowed the taxes to increase by 33% for homeowners and 30.7% for business owners at a time when insurance premiums have to increase due to the frequency and size of the catastrophe losses.

Estimated Removal of Debris costs now on LMI RiskCoach

Allan's talk went through the history of fire service levies, the terrible impact the high taxes caused by triple tax has on under and non insurance and how the Liberal National Government in Victoria has betrayed the rural voters in that state by including hundred's of millions of dollars of capital expenditure items into the upcoming year's levy when the benefit will be to all Victorian's over the next 20+ years.

As usual the talk was well received which explains why Allan is asked to speak at industry conferences, seminars and professional development days over 125 times each year.

Manning speaks at NIBA Allianz Thought Leadership Day

2011-09-13T00:00:00+10:00

The theme of the conference is "Stretch Your Thinking". Allan spoke on four subjects: 1) Placing Slips; 2) Policy Comparisons; 3) Communication and 4) Fire Service Levies.

The talk sponsored by Allianz Insurance was introduced by Ms Sarah Johns, Segment and Marketing Coordinator, Broker and Agency Allianz.

During the talk Allan used case examples of errors in placing slips seen during the recent catastrophes throughout Australia and New Zealand.

As usual the talk was well received which explains why Allan is asked to speak at industry conferences, seminars and professional development days over 125 times each year.

Manning speaks at NIBA Allianz Thought Leadership Day

2011-09-13T00:00:00+10:00

The theme of the conference is "Stretch Your Thinking". Allan spoke on four subjects: 1) Placing Slips; 2) Policy Comparisons; 3) Communication and 4) Fire Service Levies.

The talk sponsored by Allianz Insurance was introduced by Ms Sarah Johns, Segment and Marketing Coordinator, Broker and Agency Allianz.

During the talk Allan used case examples of errors in placing slips seen during the recent catastrophes throughout Australia and New Zealand.

As usual the talk was well received which explains why Allan is asked to speak at industry conferences, seminars and professional development days over 125 times each year.

Manning speaks at NIBA Allianz Thought Leadership Day

2011-09-13T00:00:00+10:00

The theme of the conference is "Stretch Your Thinking". Allan spoke on four subjects: 1) Placing Slips; 2) Policy Comparisons; 3) Communication and 4) Fire Service Levies.

The talk sponsored by Allianz Insurance was introduced by Ms Sarah Johns, Segment and Marketing Coordinator, Broker and Agency Allianz.

During the talk Allan used case examples of errors in placing slips seen during the recent catastrophes throughout Australia and New Zealand.

As usual the talk was well received which explains why Allan is asked to speak at industry conferences, seminars and professional development days over 125 times each year.

Fire-zone levy soars

2011-08-30T00:00:00+10:00

Insurance costs are set to soar for regional homeowners and businesses, thanks to a massive hike in the fire-services levy.

The Insurance Council of Australia has recommended to its members that it raise the levy by more than 30 per cent in Country Fire Authority zones, which covers most of the state.

Homes will be slugged an extra 31 per cent and businesses 33 per cent.

Those closed to the city and serviced Metropolitan Fire Brigade will be spared, with costs stagnant.

The hike means home owners in CFA areas will pay an additional 85 per cent of their premium, with a home owner paying $1000 for insurance paying $850 in fire levy.

The State Government told the ICA that it would cost an extra 30 per cent to run the CFA, with most of that cost being passed onto the public.

The Government says the extra revenue will pay for $68 million worth of investment in fire stations and vehicles.

Insurance payments by country Victorians contribute 77.5 per cent of the CFA’s funds, with the rest paid for by the State Government.

ICA general manager of risk Karl Sullivan said the Government gave it a figure it needed to raise to pay for fire services and insurers would adjust accordingly.

Extra taxes would likely end in homeowners paying double their insurance premium.

“By the time you take on board the fire-services levy, stamp duty and GST, you are doubling your (insurance) premium,” he said.

“Our position is that the fire service levy discourages people from taking (home insurance out), it . . . leaves people vulnerable and we are working closely with government to work out the transition away from the levy.

The Government had promised to phase out the fire-service levy by 2013, following recommendations by the Bushfire Royal Commission. The levy will be replaced by a new property based tax, which will force every homeowner to pay for fire services not just those who choose to insurance.

A government spokeswoman blamed the former Labor government for the mess, saying “the insurance based levy should have been scrapped years ago”.

“The coalition Government has begun long overdue reform to replace the insurance-based fire services levy with a property based levy,” she said.