LMI Group's latest news

New Lumley Private Motor comparison

Mon, 06 Sep 2010 00:00:00 +1000

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

LMI assist Christchurch earthquake claims

Sun, 05 Sep 2010 00:00:00 +1000

LMI Group's Claims Services division, Loss Management International ("LMI"), have started assessing and preparing claims arising from the 7.1 magnitude earthquake in Christchurch that occurred yesterday.

LMI's catastrophe response is headed by Peter MacLeod, a very experienced claims expert with disaster response experience dating back to the early 1970s. Peter has an experienced team in Christchurch with backup from LMI's Auckland and Australian offices.

Anyone wishing to have their client's claim prepared should contact 0508 782 537 in New Zealand or 1300 564 476 in Australia.

LMI assist Christchurch earthquake claims

Sun, 05 Sep 2010 00:00:00 +1000

LMI assist Christchurch earthquake claims

Sun, 05 Sep 2010 00:00:00 +1000

LMI assist Christchurch earthquake claims

Sun, 05 Sep 2010 00:00:00 +1000

LMI assist Christchurch earthquake claims

Sun, 05 Sep 2010 00:00:00 +1000

LMI assist Christchurch earthquake claims

Sun, 05 Sep 2010 00:00:00 +1000

LMI assist Christchurch earthquake claims

Sun, 05 Sep 2010 00:00:00 +1000

LMI assist Christchurch earthquake claims

Sun, 05 Sep 2010 00:00:00 +1000

LMI assist Christchurch earthquake claims

Sun, 05 Sep 2010 00:00:00 +1000

New Vero Secure Home Elite Comparison

Fri, 03 Sep 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparisons of the Secure Home Elite Insurance wording are now available.

New Vero Secure Home Extra Comparison

Fri, 03 Sep 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparisons of the Secure Home Extra Insurance wording are now available.

New Associated Marine Comparison

Fri, 03 Sep 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparisons of the Associated Marine Single Transit (within Australia) Insurance wording are now available.

New Associated Marine Comparisons

Fri, 03 Sep 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparisons of the Associated Marine Goods in Transit Insurance wording are now available.

New Ansvar General Public & Products Liability Comparison

Thu, 02 Sep 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparisons of the Ansvar General Public and Products Liability wording are now available.

New Zurich Aged Care Professional Indemnity Comparison

Thu, 02 Sep 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparisons of the Zurich Aged Care Professional Indemnity Insurance wording are now available.

New Zurich Professional Indemnity Comparison

Thu, 02 Sep 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparisons of the Zurich Professional Indemnity Insurance wording are now available,

New Zurich Aged Care ISR Comparison

Thu, 02 Sep 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparisons of the Zurich Aged Care Industrial Special Risks Insurance wording are now available.

Ansvar Faith Organisations Policy

Fri, 27 Aug 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparisons of the Ansvar Faith Organisations Product Disclosure Statement and Policy wording are now available.

LMI Congratulate Mr Brumby on dropping Fire Service Levy

Fri, 27 Aug 2010 00:00:00 +1000

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

LMI Group's CEO, Dr Allan Manning, was ecstatic about this news, welcoming the leadership and statesmanship of Premier Brumby, who has been a long-term advocate to retain the Fire Service Levies.

This is great for the Victorian economy, for the citizens, and the business owners. Well done, Mr Brumby!

LMI Group are proud of their part in this longstanding fight, contributing with their NoTaxOnInsurance campaign and website, and a detailed submission provided to the Royal Commission. This was just one such push that we are sure contributed to this outstanding result.

Further details on stamp duty and the alternative funding will be watched with interest. Hopefully, the State Governments of New South Wales and Tasmania will follow suit. The fight will go on till all Australian States and New Zealand drop their unfair tax on Insureds.

LMI Congratulate Mr Brumby on dropping Fire Service Levy

Fri, 27 Aug 2010 00:00:00 +1000

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

LMI Group's CEO, Dr Allan Manning, was ecstatic about this news, welcoming the leadership and statesmanship of Premier Brumby, who has been a long-term advocate to retain the Fire Service Levies.

This is great for the Victorian economy, for the citizens, and the business owners. Well done, Mr Brumby!

LMI Congratulate Mr Brumby on dropping Fire Service Levy

Fri, 27 Aug 2010 00:00:00 +1000

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

LMI Group's CEO, Dr Allan Manning, was ecstatic about this news, welcoming the leadership and statesmanship of Premier Brumby, who has been a long-term advocate to retain the Fire Service Levies.

This is great for the Victorian economy, for the citizens, and the business owners. Well done, Mr Brumby!

LMI Congratulate Mr Brumby on dropping Fire Service Levy

Fri, 27 Aug 2010 00:00:00 +1000

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

LMI Group's CEO, Dr Allan Manning, was ecstatic about this news, welcoming the leadership and statesmanship of Premier Brumby, who has been a long-term advocate to retain the Fire Service Levies.

This is great for the Victorian economy, for the citizens, and the business owners. Well done, Mr Brumby!

LMI Congratulate Mr Brumby on dropping Fire Service Levy

Fri, 27 Aug 2010 00:00:00 +1000

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

LMI Group's CEO, Dr Allan Manning, was ecstatic about this news, welcoming the leadership and statesmanship of Premier Brumby, who has been a long-term advocate to retain the Fire Service Levies.

This is great for the Victorian economy, for the citizens, and the business owners. Well done, Mr Brumby!

LMI Congratulate Mr Brumby on dropping Fire Service Levy

Fri, 27 Aug 2010 00:00:00 +1000

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

LMI Group's CEO, Dr Allan Manning, was ecstatic about this news, welcoming the leadership and statesmanship of Premier Brumby, who has been a long-term advocate to retain the Fire Service Levies.

This is great for the Victorian economy, for the citizens, and the business owners. Well done, Mr Brumby!

LMI Congratulate Mr Brumby on dropping Fire Service Levy

Fri, 27 Aug 2010 00:00:00 +1000

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

LMI Group's CEO, Dr Allan Manning, was ecstatic about this news, welcoming the leadership and statesmanship of Premier Brumby, who has been a long-term advocate to retain the Fire Service Levies.

This is great for the Victorian economy, for the citizens, and the business owners. Well done, Mr Brumby!

LMI Congratulate Mr Brumby on dropping Fire Service Levy

Fri, 27 Aug 2010 00:00:00 +1000

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

LMI Group's CEO, Dr Allan Manning, was ecstatic about this news, welcoming the leadership and statesmanship of Premier Brumby, who has been a long-term advocate to retain the Fire Service Levies.

This is great for the Victorian economy, for the citizens, and the business owners. Well done, Mr Brumby!

Brumby to Drop Fire Service Levy

Fri, 27 Aug 2010 00:00:00 +1000

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

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

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

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

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

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

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

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

A spokesman says the State Government will embark on “a period of thorough consultation to determine the best model and options”.

The new system will be fully in place on 1 July 2012 “to honour an undertaking made during the existing review process to the people of Victoria and the insurance industry that the transition would be as simple and easy as possible”. The spokesman said the Government “will also take steps to ensure that the insurers pass on the full benefit from having the FSL removed from premiums”.

Allianz SureCover Gold Motor Insurance Comparison

Tue, 24 Aug 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the Allianz SureCover Gold Motor Insurance Policy wording is now available.

Allianz SureCover Plus Motor Comparison

Tue, 24 Aug 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the Allianz SureCover Plus Motor Insurance Policy wording is now available.

New Ansvar Home Comparison

Fri, 20 Aug 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the Ansvar Home Insurance Policy wording is now available.

New Ansvar Contents Comparison

Fri, 20 Aug 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the Ansvar Alpha Contents Insurance Policy wording is now available.

New Ansvar Contents Comparison

Fri, 20 Aug 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the Ansvar Omega Contents Insurance Policy wording is now available.

New Ansvar Contents Comparison

Fri, 20 Aug 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the Ansvar Basic Contents Insurance Policy wording is now available.

New Ansvar Pleasurecraft Comparison

Fri, 20 Aug 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the Ansvar Pleasurecraft Insurance Policy wording is now available.

New Ansvar Motor Vehicle Comparison

Fri, 20 Aug 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the Ansvar Motor Vehicle Insurance Policy wording is now available.

Ansvar Business Insurance Policy comparison now available

Thu, 19 Aug 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the Ansvar Business Insurance Policy wording is now available.

Zurich Motor Fleet Insurance Comparison now available

Wed, 18 Aug 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the Zurich Transportation Motor Fleet Insurance wording is now available.

QBE Fleet and Heavy Haulage Motor Vehicle Insurance

Wed, 18 Aug 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the QBE Australia Fleet and Heavy Haulage Motor Vehicle Insurance policy wording is now available.

Pandemics a continuing risk

Tue, 17 Aug 2010 00:00:00 +1000

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

“Risk management is helping organisations learn lessons from the past and ensure they are well prepared for future low-frequency/large-loss events like pandemics.”

Whether from a reinsurance or institutional perspective, it is clear that the lessons learned and the preparations made to respond effectively to potential pandemic risks have become vital to ensure businesses and society can continue to function when the next pandemic strikes.

New QBE Office Package Comparison

Mon, 16 Aug 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the QBE Office Package wording is now available.

New Zurich Aged Care D & O Liability Comparison

Mon, 16 Aug 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the Zurich Aged Care Directors and Officers Liability Insurance wording is now available.

New Vero Secure Motor Plus Insurance Comparison

Mon, 16 Aug 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the Vero Secure Motor Plus Insurance wording is now available.

New Zurich Aged Care Combined General Liability Insurance

Mon, 16 Aug 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the Zurich Aged Care Combined General Liability Insurance wording is now available.

New Zurich Aged Care ISR Comparison

Mon, 16 Aug 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the Zurich Aged Care Industrial Special Risks Insurance wording is now available.

New Associated Marine/Zurich Transportation Insurance

Mon, 16 Aug 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the Associated Marine Zurich Transportation Insurance wording is now available.

New Ansvar Commercial Motor Vehicle Insurance Available

Mon, 16 Aug 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the Ansvar Commercial Motor Vehicle Insurance wording is now available.

LMI entrusted with major Brisbane fire

Sun, 15 Aug 2010 00:00:00 +1000

LMI Group's claims services team, Loss Management International (“LMI”) were recommended by an insurance broker and subsequently appointed by the Insured to assist with the mitigation of losses and quantification and preparation of both their material damage and business interruption claims, following a major fire in their Eagle Farm factory.

The fire at a snack foods manufacturer started at about 3:45am and quickly took hold. The losses are estimated at over $10 million.

LMI have assigned two of their most experienced claims experts, Steve Grandidge and Carl Greenhalgh to assist the client.

It is now that the true value of the insurance contract comes into play. The premium paid is irrelevant compared to the quality of cover afforded by the policy, the financial strength of the insurer, and the claims service provided to the client. LMI will assist by providing the highest level of claims service available, but it is up to every business owner to ensure that the important issues of coverage and financial strength rating are considered at the time the policy is taken out. It is far too late at claim time to find the policy is not worth the paper it is written on.

Fortunately, the client in this instance had a good quality insurance broker and these issues were brought to the client’s attention at each renewal, which is the sign of a good insurance adviser.

When questioned on this subject, LMI Group’s CEO Dr Manning said, “a good insurance broker is as important to a business as a lawyer or accountant is. Everything the business owners/managers tell their lawyer or accountant, they should tell their broker”.

We wish the management, owners and staff of Gold Line Foods every success for a quick and painless recovery.

LMI Group awarded Innovator of the Year @ Industry Awards

Thu, 12 Aug 2010 00:00:00 +1000

LMI Group was awarded the Innovation of the Year Award at tonight’s Australia and New Zealand Insurance Industry Awards held at the Sydney Convention Centre.

The judges panel offered the following explanation for their selection of LMI Group for this prestigious award.

“The winner of this year’s ‘Innovation of the Year’ Award is LMI Group.

While undertaking their core business of claims, LMI has developed innovative and useful tools to assist brokers and insurers alike.

LMI has produced a range of innovative online products which serve to improve the failure rate of businesses following a major loss. All of LMI’s activities rely on continuous research and market feedback mechanism. Their products are continually updated with new information which is linked directly to LMI Group’s claims management system allowing data and lessons learned during actual claims handling to automatically populate the products.

The judges were impressed with LMI’s investment in innovation to assist the industry’s understanding and comparison of insurance policies. LMI PolicyComparison, produces over 250,000 comparisons each year, with a vast number of brokers and insurers in both the Australian and New Zealand markets subscribing to this service.

The judges also cited LMI’s business interruption calculator which provides training and a smart-form calculator to assist insurance advisers and their clients in understanding business interruption insurance and setting the correct sum insured.

After 3 years of development, LMI Group released LMI RiskCoach to the market in 2009. This service is designed to provide risk management underwriting information relevant to industries in both Australia and New Zealand. Over 5,000 brokers and underwriters are currently using this service, with very positive feedback.

The judges also cited the development of iPhone and smartphone applications, including an Under-insurance Calculator, developed for the Australian and New Zealand industries.”

The award was accepted by LMI Group’s CEO, Dr Allan Manning who thanked his team which he described as the most diverse group of individuals imaginable who nonetheless had several attributes in common: a wealth of knowledge; a great desire to continue learning; a detest for mediocrity; and a passion for the insurance profession.

After thanking his entire team and his wife Helen, he said that there is only one thing that would make him equally happy as winning the ANZIIF Insurance Industry Award and that would be the removal of Fire Service Levies on insurance.

LMI Group awarded Innovator of the Year @ Industry Awards

Thu, 12 Aug 2010 00:00:00 +1000

LMI Group awarded Innovator of the Year @ Industry Awards

Thu, 12 Aug 2010 00:00:00 +1000

LMI Group awarded Innovator of the Year @ Industry Awards

Thu, 12 Aug 2010 00:00:00 +1000

LMI Group awarded Innovator of the Year @ Industry Awards

Thu, 12 Aug 2010 00:00:00 +1000

LMI Group awarded Innovator of the Year @ Industry Awards

Thu, 12 Aug 2010 00:00:00 +1000

LMI Group awarded Innovator of the Year @ Industry Awards

Thu, 12 Aug 2010 00:00:00 +1000

LMI Group awarded Innovator of the Year @ Industry Awards

Thu, 12 Aug 2010 00:00:00 +1000

LMI Group awarded Innovator of the Year @ Industry Awards

Thu, 12 Aug 2010 00:00:00 +1000

LMI Group awarded Innovator of the Year @ Industry Awards

Thu, 12 Aug 2010 00:00:00 +1000

LMI Group awarded Innovator of the Year @ Industry Awards

Thu, 12 Aug 2010 00:00:00 +1000

LMI Group awarded Innovator of the Year @ Industry Awards

Thu, 12 Aug 2010 00:00:00 +1000

LMI Group awarded Innovator of the Year @ Industry Awards

Thu, 12 Aug 2010 00:00:00 +1000

LMI Group awarded Innovator of the Year @ Industry Awards

Thu, 12 Aug 2010 00:00:00 +1000

LMI Group awarded Innovator of the Year @ Industry Awards

Thu, 12 Aug 2010 00:00:00 +1000

New QBE Commercial Retail Industrial Business Package

Tue, 10 Aug 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the QBE Commercial Retail Industrial Business Package wording is now available.

Real Estate Institute agree Fire Services Levy should go

Mon, 09 Aug 2010 00:00:00 +1000

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

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

The levy is used to fund the fire services.

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

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

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

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

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

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

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

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

New Ansvar Faith Organisations Comparison

Fri, 06 Aug 2010 00:00:00 +1000

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

What will it take to see Sense on Insurance Taxes?

Wed, 04 Aug 2010 00:00:00 +1000

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

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

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

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

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

Mr Brumby, please listen to the wise counsel of the Commissioners and show some real statemanship. Get rid of the tax on insurance, and encourage the community to buy full insurance to protect themselves from financial losses should the unthinkable happen to them and they suffer an insurable loss, particularly with only a few months to go before we're looking down the barrell of another bushfire season. Victorians deserve nothing less!

What will it take to see Sense on Insurance Taxes?

Wed, 04 Aug 2010 00:00:00 +1000

What will it take to see Sense on Insurance Taxes?

Wed, 04 Aug 2010 00:00:00 +1000

What will it take to see Sense on Insurance Taxes?

Wed, 04 Aug 2010 00:00:00 +1000

What will it take to see Sense on Insurance Taxes?

Wed, 04 Aug 2010 00:00:00 +1000

LMI entrusted with Hotel Fire

Tue, 03 Aug 2010 00:00:00 +1000

LMI Group's claims services division, Loss Management International, has been appointed by the owners of the Bridge Inn at Maindample near Mansfield, following a major fire late last month.

Loss Management International have assigned two highly experienced claims experts, Gordon Lum and Paul Johnson, to assist the client in mitigating their losses, developing a business recovery plan, and preparing their claim under their insurance policy.

The claims preparation service has often been described as the 'best kept secret in insurance'. Like many business owners, the hotel proprietors were unaware that the service existed and only heard about it from a business owner who had previously used the service, finding it of great benefit following last year's Black Saturday bushfires.

Now that a fire has occurred, the owners appreciate the importance of insurance and, in particular, the quality and adequacy of the cover, the financial strength rating of the insurer, and the level of claims service provided by the insurer. The cost of the insurance, that is, the premium paid, is forgotten! What they want is a Rolls Royce service, which is what Loss Management International is renowned for.

Insurance Council Applauds FSL Call

Sat, 31 Jul 2010 00:00:00 +1000

Insurance Council applauds FSL call

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

LMI CEO supports Bushfire Royal Commission Recommendation

Sat, 31 Jul 2010 00:00:00 +1000

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

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

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

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

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

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

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

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

LMI CEO supports Bushfire Royal Commission Recommendation

Sat, 31 Jul 2010 00:00:00 +1000

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

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

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

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

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

Fire levy is in need of an overhaul

Thu, 29 Jul 2010 00:00:00 +1000

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

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

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

The first concerns how our fire services are financed.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

CGU boss calls for fire services funding reform

Mon, 26 Jul 2010 00:00:00 +1000

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

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

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

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

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

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

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

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

ANZIIF CIP points for LMI RiskCoach subscribers

Fri, 23 Jul 2010 00:00:00 +1000

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

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

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

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

ANZIIF CIP points for LMI RiskCoach subscribers

Fri, 23 Jul 2010 00:00:00 +1000

New BBL Insurance Motor Comparison

Wed, 21 Jul 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the BBL Insurance Motor wording is now available.

New Kmart Tyre and Auto Car Comparison

Wed, 21 Jul 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the Kmart Tyre and Auto Car Insurance wording is now available.

New RACT Strata Comparison

Wed, 21 Jul 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the RACT Insurance Strata Building wording is now available.

New AAMI Home comparisons

Tue, 13 Jul 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the AAMI Home Contents wording is now available. Also available, Fire and Theft Contents Insurance and Third Party Property Damage Car Insurance.

New Wesfarmers Private Plan comparison

Mon, 12 Jul 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the Wesfarmers Private Plan wording is now available.

New UAA Professional Contractor comparison

Thu, 08 Jul 2010 00:00:00 +1000

LMI PolicyComparison is pleased to advise subscribers that our comparison of the UAA Professional Contractor (Procon) wording is now available.

New C & G Rothbury Material Damage