While ChatGPT and similar AI software programs are in the headlines, over half of businesses already use AI for email & website cybersecurity and banking to minimise fraud. 

This Forbes article found that up to 97% of business owners looked to AI as helping their business in some way, while 40% were also concerned about becoming overdependent.

Top 10 key benefits

AI is playing an increasing role in enhancing customer experiences across several touchpoints. This not only benefits the customer; it also is expected to bring increased productivity and reduce expenses. According to the Forbes Advisor survey, the main areas being:

Chatbots 73% - most businesses currently use or plan to use Chatbots soon to help manage prospective and existing customers' simple requests or questions.

Email optimisation 61% - not only assisting in sorting and prioritising emails, but AI writing tools can also draft emails and personalise them to increase engagement. 

Customer Service 56% - the main areas are understanding the client and improving decision-making, as well as decreasing response times and reducing mistakes. Other areas include personalised services through customer product recommendations and ads, text messaging and phone communication. 

Cyber security/ Fraud Management 51% - AI fraud management systems can identify and prevent various types of fraud, such as payment fraud, identity theft or phishing attacks. They can also adapt and learn from new fraud patterns and trends, improving their detection over time.

Digital Personal Assistants 47% - Voice-powered virtual assistants or virtual assistant voice services like Alexa from Amazon or Apple's Siri utilise Natural Language voice commands and speech recognition technology to interpret and respond to verbal prompts and voice interaction. Google is also working on a new AI personal assistant to perform more personalised tasks,

Inventory Management 40% - by analysing various data sources, such as sales records, customer behaviour, weather, seasonality, promotions and such, AI programs can generate accurate and timely forecasts that can help businesses plan their inventory levels and re-ordering strategies. This reduces inventory wastage and helps maximise financial resources.

Content Production 35% - AI can help to optimise content for search engines and social media platforms, making it more visible and shareable. It can also analyse user data and generate personalised content that resonates with specific customer groups.

Product Recommendations 33% - AI recommendation systems are widely used in e-commerce to suggest products to users based on their browsing and purchase history, preferences, and behaviour. The recommendation system analyses customer data to identify patterns and trends in their purchase behaviour and recommends products that interest them.

Supply Chain Operations 30% - AI is already proving very beneficial across all supply chain stages by optimising inventory management, enhancing warehousing and storage and supporting process automation — helping raise efficiency and productivity, preventing human error, and assisting in limiting supply chain disruption. 

Recruitment and talent sourcing 26% - AI software is already in use for recruitment and can assist in sourcing and screening candidates, analysing resumes and job applications, conducting pre-employment assessments, and even predicting candidate success and cultural fit.

Key Concerns

The main concerns from the survey are:

• Dependence on technology – shortage of trained employees to implement, monitor and update technology. Additional training requires time and resources. Reputational damage and potential financial impact if AI-generated information is inaccurate or wrong. Vulnerability of systems to breaches of privacy and loss of commercially sensitive data from cyber-attacks. 
• Job Displacement: As is the case with automation of processes, there's a concern about work and job losses. Tasks historically performed by administrative staff, HR recruiters, software developers, copywriters, etc. are likely to become redundant.
• Ethical Considerations include the management of bias and fairness.  AI systems, as sophisticated as they are, can still carry biases as guides and parameters have to be programmed in initially. Laws such as the Disability Discrimination Act 1992, Racial Discrimination Act 1975 and the Age Discrimination Act 2004 all apply to the AI process, in particular to HR teams. Therefore, the presence of a trained person to monitor both input and output is essential. 

While AI-powered claims processing systems promise a future of increased efficiency and accuracy, they also bring challenges and ethical dilemmas. As with any technology, the key lies in balancing the benefits with the potential drawbacks and ensuring that the human element remains central to decision-making.

General Advice Warning

This communication including any weblinks or attachments is for information purposes only. It is not a recommendation or opinion, your personal or individual objectives, financial situation or needs have not been taken into account. This communication is not intended to be a constitute personal advice. We strongly recommend that you consider the suitability of this information, in respect of your own personal objectives, financial situation and needs before acting on it. This document is also not a Product Disclosure Statement (PDS) or a policy wording, nor is it a summary of a particular product’s features or terms of any insurance product. If you are interested in discussing this information or acquiring an insurance product, you should contact your insurance adviser to obtain and carefully consider any relevant PDS or policy wording before deciding whether to purchase any insurance product.

Reinsurance is insurance for insurance companies. Just like any business, insurers buy insurance for large catastrophes to ensure they have enough money available to pay claims. 

The main reinsurance renewal dates are 1 January and 30 June. This is when insurers must look at whether they also need to change their customers' policy cover or prices charged to customers. 

Reinsurance can be purchased for all types of cover, including aviation, crop, property risks and catastrophes. 

Just like a business insuring a motor vehicle, an excess is payable in the event of a claim. However, insurers can pay up to $350 Million excess towards any one event, such as a bushfire or hailstorm. Of the $6 Billion in claims following the March 2022 Eastern Australian storms and floods, reinsurers reimbursed insurers $2 Billion - $3 Billion of the $6 Billion total value of these claims. 

Projections for Reinsurance 2023/ 2024

Reinsurers are in business to make a profit, like any other business. Due to the increasing number of natural catastrophises around the world, reinsurers are charging higher premiums to insurers and negotiating increases in excesses. This change is a permanent structural change. 

The insurance industry expects similar premium and excess increases in 2024.

Society and insurance

Insurance is essential to everyone: businesses, consumers, and governments. However, due to the increasing number and cost of catastrophises, some areas and types of risk are fast becoming uninsurable. They will need to be managed by the government and society through mitigation, prevention, and climate change adaptation, with insurance as a response to manage volatility.

Impact on Insurance Consumers

As insurers pay higher premiums and excesses, these costs will increase the pressure on insurers to increase their premiums to customers. Insurers are also earning higher investment income. However, this is partly offset by continuing high inflation, resulting in increased labour and parts costs for claim repairs.

It is possible that more insurers will decide not to offer insurance cover for certain areas due to the catastrophe risks of storms, floods, or bushfires. 

General Advice Warning

This communication including any weblinks or attachments is for information purposes only. It is not a recommendation or opinion, your personal or individual objectives, financial situation or needs have not been taken into account.This communication is not intended to be a constitute personal advice. We strongly recommend that you consider the suitability of this information, in respect of your own personal objectives, financial situation and needs before acting on it.This document is also not a Product Disclosure Statement (PDS) or a policy wording, nor is it a summary of a particular products features or terms of any insurance product. If you are interested in discussing this information or acquiring an insurance product, you should contact your insurance adviser to obtain and carefully consider any relevant PDS or policy wording before deciding whether to purchase any insurance product.

Recently, IA Authorised representatives, Chantelle, Natasha, and Nigel, had the honour of presenting a generous donation of $10,000 to Zig Zag, a vital resource centre dedicated to aiding young, vulnerable women across Queensland. This contribution underscores the foundation's commitment to making a tangible difference in the lives of those in need, particularly in supporting women's empowerment and well-being.

Zig Zag has long stood as a beacon of hope and support, providing a wide range of services designed to assist young women facing challenging circumstances. From housing and counselling to essential support services, Zig Zag's efforts are critical in offering a lifeline to many. "It was great to hear about the work that Zig Zag does in the community, assisting young women at a time of need," shared Nigel, reflecting on the importance of the centre’s mission.

The donation from the IA Foundation will bolster Zig Zag's capacity to serve its community, especially during these tough times. Beyond its core services, Zig Zag also extends its support by distributing food and clothing, kindly donated by the local community. This comprehensive approach not only addresses immediate needs but also fosters a sense of belonging and community among the women it serves.

As the IA Foundation continues to support initiatives that make a difference, this donation to Zig Zag is a testament to the power of community and compassion. It's a reminder that together, we can overcome challenges and create a brighter future for all. We look forward to seeing the positive impact this contribution will make and is committed to continuing its support for initiatives that empower and uplift communities.

The Insurance Advisernet Foundation recently made a donation of $25,000 to Sacred Heart Mission, a pivotal organisation dedicated to supporting individuals facing homelessness, deep disadvantage, and social exclusion. This generous donation has significantly bolstered the Mission's ability to provide crucial services to those in need, highlighting the power of community and corporate support in making a tangible difference in people's lives.

A Beacon of Hope: Women's House in St Kilda

One of the primary beneficiaries of the Insurance Advisernet Foundation's donation is the Women's House in St Kilda. This Engagement Hub stands as a sanctuary for all women, including cisgender and transgender individuals, who find themselves navigating the challenges of homelessness, financial instability, or barriers to social inclusion. Over the past financial year, there’s been an impressive 529 presentations at the Women's House, offering a safe, supportive, and welcoming environment tailored to meet the unique needs of each visitor.

Wellness Place: Nurturing Mind and Body

The donation will also play a critical role in supporting Sacred Heart Mission's Wellness Place, a haven designed to address the impacts of trauma, addiction, isolation, and chronic health issues. Last financial year, the Wellness Place was able to host 1,666 appointments and group activity attendances . Through a variety of groups, educational programs, and complementary and allied health therapies, the Wellness Place works tirelessly to foster healing and well-being for those it serves.

Feeding the Community: The Dining Hall

Perhaps one of the most immediate impacts of the donation will be felt in Sacred Heart Mission's Dining Hall. In the 2022-23 period, the Mission served 92,822 nutritious meals to the community. The Dining Hall, known as the heart of the Mission, offers a warm and welcoming space where hundreds of individuals experiencing homelessness and social disadvantage can enjoy a community meal and engage with the Mission's services every day of the year.

A Momentous Presentation

The presentation of the cheque was facilitated by John Burke, an Authorised Representative of Insurance Advisernet, handing it over to Hang Vo, CEO of Sacred Heart Mission. This moment underscored the partnership and shared commitment between the Insurance Advisernet Foundation and Sacred Heart Mission to making a positive impact in the community.

A Testament to Community Support

The Insurance Advisernet Foundation's donation to Sacred Heart Mission is a powerful example of how corporate philanthropy can play a crucial role in supporting vital community services. Through its generous contribution, the Foundation has helped ensure that Sacred Heart Mission can continue its invaluable work, providing support, nourishment, and hope to those who need it most. This act of kindness not only benefits the immediate recipients but also strengthens the fabric of the community, demonstrating that together, we can make a significant difference in the lives of others.

In the Internet and social media era, where news travels at the speed of light, companies are under constant scrutiny. 

A single error or unforeseen event, such as a government investigation or an injury or death of a key executive, that could swiftly impact or damage a company's reputation, built up over many years, potentially resulting in significant reputational harm as well as financial damage. 

Many insurers cover up to $100,000 in Public Relations (PR) expenses or Crisis Costs when you purchase certain types of insurance, including Management Liability or Public & Products liability. 

Key cover

PR expenses or Crisis coverage is designed to help companies by paying the cost of a PR or crisis management team to manage a sudden event's reputational or financial impact. 

The Importance of Reputation Insurance

1. Rapid Response: businesses can swiftly engage PR experts, legal consultants, and crisis communication specialists to help in managing a potentially harmful incident. Immediate and professional response can assist in avoiding a reputational disaster.
2. Financial costs: Beyond the immediate PR event, damage to a reputation, built up over many years, can be lost in minutes, along with customers, sales, and even stock price. 
3. Stakeholder Confidence: Knowing that a company has a backup plan in the form of reputation insurance can instil confidence in stakeholders, be they investors, employees, or customers. It signals a proactive approach to risk management and a commitment to maintaining a professional public image.
4. Improved Decision-Making: When a crisis hits, companies often need to make quick decisions. Having this insurance cover in place can be a key part of your guidelines and frameworks, ensuring that decisions align with long-term reputational protection.

Reputation in the Age of Virality

With the proliferation of social media and 24/7 news cycles, information – both accurate and misleading – can go viral in mere moments. In this context, PR or Crisis management cover is essential.

Reputation, a company's most intangible asset, often takes years, if not decades, to build but can be lost or damaged in minutes. Contact your local adviser today to discuss your risks and available options.

General Advice Warning

This communication including any weblinks or attachments is for information purposes only. It is not a recommendation or opinion, your personal or individual objectives, financial situation or needs have not been taken into account. This communication is not intended to be a constitute personal advice. We strongly recommend that you consider the suitability of this information, in respect of your own personal objectives, financial situation and needs before acting on it. This document is also not a Product Disclosure Statement (PDS) or a policy wording, nor is it a summary of a particular products features or terms of any insurance product. If you are interested in discussing this information or acquiring an insurance product, you should contact your insurance adviser to obtain and carefully consider any relevant PDS or policy wording before deciding whether to purchase any insurance product.

One of the most important forms of insurance cover a self-employed person can have is Personal Accident Insurance. This protects you financially if you are injured or become ill and cannot work for an extended period.

1.     What is Personal Accident insurance – it's an insurance policy that is renewed each year. It provides a pre-agreed weekly benefit (up to 85% of your salary) if you cannot work for an extended period due to an injury or become seriously ill (optional cover). 

The policy will also pay out a lump sum benefit if you cannot return to work or have a permanent disability, such as loss of an eye or figures. 

2.     Business Expenses – some insurers also offer the option to insure certain business expenses. Business Expenses insurance means that the fixed expenses of your business will still be paid even if you cannot work due to injury or sickness. 

3.     Flexible cover – you can choose the amount of weekly benefit and capital sum insured, which is the amount you are paid if permanently disabled or in the event of your death.  You can also choose the number of weeks as your waiting period, which is the time before you start to be paid benefits. The longer the waiting period, the greater the premium discount. 

4.     It is important to know that - most self-employed people cannot purchase workers' compensation for themselves, only their employees. Therefore, if there’s an accident at work or driving between job sites, there’s no payment for lost income or lump sum benefit. 

Personal Accident insurance is renewed each year, and the availability of cover and premium depends on your occupation, age, sum insured and claims experience. Insurance may not be offered on renewal if you have had a claim or are diagnosed with a serious illness. 

5.     Other types of insurance protection - Personal Accident Insurance is one type of insurance that can protect you and your business financially. 

Others include: 

• Non-cancellable income protection or disability insurance is usually part of your life insurance and covers part of your usual income if you’re unable to work through sickness or accident.
• Life insurance provides a lump sum or series of payments if you die.
• Trauma insurance provides a lump sum if you have a specified life-threatening illness.
• Business interruption or loss of profits insurance covers you if your business suffers from damage to property by fire, storm, etc. It can help you pay your ongoing fixed expenses and net profit.
• Management liability provides financial protection, paying legal expenses or damages in the event of an actual or alleged wrongful act by a manager in the business.
• Employee dishonesty covers losses from employee PR contractor theft or fraud.

Tangible Benefits

While the primary advantage of having disability insurance is income replacement, it also offers peace of mind, knowing that you're financially protected if injured. If you’re self-employed and haven’t considered personal accident insurance, now is the time to prioritise it. Contact us today to discuss this further.

General Advice Warning

This communication including any weblinks or attachments is for information purposes only. It is not a recommendation or opinion, your personal or individual objectives, financial situation or needs have not been taken into account. This communication is not intended to be a constitute personal advice. We strongly recommend that you consider the suitability of this information, in respect of your own personal objectives, financial situation and needs before acting on it. This document is also not a Product Disclosure Statement (PDS) or a policy wording, nor is it a summary of a particular products features or terms of any insurance product. If you are interested in discussing this information or acquiring an insurance product, you should contact your insurance adviser to obtain and carefully consider any relevant PDS or policy wording before deciding whether to purchase any insurance product.