Risky Business

December  2013


All of us at CPR Insurance Services and NAS Insurance Brokers are 

most grateful for having you as our valuable client and friend. Thank you for helping our business to continue to grow. We wish you a safe Christmas and a happy and prosperous New Year.

2013 has been a big year. Please check out our reflections and forecasts below.

  Insurance News 

What a Year! 

- But next year should be even better


As 2013 draws to a close, it is timely to reflect on events and developments that have shaped this year and will likely continue to develop into 2014.


Once again, the world and Australia saw its fair share of natural catastrophes. The record breaking Storms in the Phillippines that have devastated so many could certainly happen in our region.


Bushfires once again caused great loss of property and life around Australia. Debate continues about whether these events are becoming more intense with experienced fire fighters reporting these are becoming much more difficult to fight than ever before. However, good emergency planning procedures have reduced the loss of lives compared to previous years, but what else can communities do? Burning off the fuel for such fires is always debatable. Better building codes to fire proof homes? Perhaps even restricting where people can live? While Insurance is available to cover the property losses, will the premiums stay reasonably priced to cover these risks? Difficult decisions but we do need to adapt more to our environment.


With climate change does come more extremes of weather but it is not helped by  arsonists who seemingly continue to start many of the Bushfires we see. Out of the 55,000 bushfires Australia has each year, half are estimated to have been started by Arsonists. Why do this? Will larger penalties help?


One thing for sure, more research needs to be done on reducing the chance of and severity of these fires.


Storms too appear to be becoming much more intense and are causing a great deal of property damage on buildings that previously could withstand the ravages of our weather. This year the majority of our claims received were from storm damage and the resultant water damage that occurs. Older buildings seem to be the most prone to these risks. We continue to ask our clients to be storm ready this year.

Cyber Attacks  

Also this year, we have seen the rise of Cyber Risks  from everyone from government down to a little country school or medical practice. The ability to find various ways to bring down a company's internet, intranet, telephone systems or social media sites is causing many interruptions to business, large rectification costs and sometimes the theft of confidential information is making this an increased risk to be aware of and to manage into the future. Insurers have begun to offer cover in this area while currently, most businesses are hoping their IT Consultants and Anti-virus and security software will manage the risks for them. Will this be enough in the future? We expect Cyber Risk Insurance will be sought after cover next year.


The number one claim event for Insurers turned out to be  Fraud! Sadly, staff stealing from their employers has grown enormously. Gambling habits appear to be the biggest reason for those caught, along with drug addiction or simply greed and morale issues. There is no doubt technology is contributing to the methods used but still often comes down to systems and controls by employers. Trust and complacency with staff allows these systems and controls to often break down and it can be so devastating to have these events occur. This year it has even happened to some Insurance Companies.


However, all these risks are insurable and will give you peace of mind if the cover is adequate. If you want to discuss any of these risks further and how they could affect your business, do not hesitate to give us a call.


Christmas Cheer


A couple were Christmas shopping. The shopping centre was very crowded, and as the wife walked through one of the malls, she was surprised when she looked around to find that her husband was nowhere to be seen.


She was quite upset because they had a lot to do. She phoned him on her mobile phone to ask him where he was. In a quiet voice he said, "Do you remember the jewelers we went into about five years ago where you fell in love with that diamond necklace that we couldn't afford, and I told you that I would get it for you one day?"


Tears started to well up in the wife's eyes as she said, "Yes, I do remember that shop."


He replied, "Well, I'm in the pub next door." 


See you next month.




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