Get to know Paul De Abreu, NSW, Senior Property Underwriter:
1. Where did you work before this position?
I’ve been in the insurance industry for over 20 years and part of the IAG/CGU insurance family over this time. I’ve worked as a Technical Property specialist for over 10 years with the group
2. What is something you find challenging about your role?
It is important to recognise that underwriting is more than risk selection and pricing. It requires a comprehensive set of capabilities across hard and soft skills, qualitative judgments about future industry performance, and rigorous portfolio management to avoid markets where even great underwriting cannot compensate for unfavourable conditions.
The challenge is having the ability to understand and judge how exposures are likely to change (emerging trends) and on how we can better identify these exposures and play a part to help manage these risks.
3. What do you see as the biggest influences in the Property ISR market at present?
As we continue to navigate through a hard market, the major influences are major weather events - including a growing number of natural catastrophes (hail, flood, and bushfires), social inflation, and a low-interest rate environment are making it difficult for insurance companies to achieve strong investment returns to offset poor loss ratios.
The cost of claims are increasing due to increased freight costs, material, labour costs, and lack of skilled tradespersons in some areas of the country, particularly in remote and rural regions
Insurers are also facing the costs of replacing legacy computer systems and improving technology, embedding digital technology as well as a shortage of insurance professionals (brokers and underwriters).
We continue to actively target (selective) new business within our “sweet spot” with the focus on delivering stability to our bottom-line results
4. In general, what types of Property ISR risks are you seeing and writing the most?
CGU’s property risk appetite is aligned to businesses with asset values of $10M and above.
We look for clients that demonstrate a commitment towards managing risk.
Our better-performing industries and recent successes include:
- Professional Services (e.g. Advertising Services, Legal Services, Government
- Administration, etc)
- Health/Accommodation (e.g Nursing Homes, Retirement Villages, 4-5 Star Hotels,
- Serviced Apartments, Hospitals, Medical Services, etc)
- Property Management (e.g. Property Owner – Offices, Mixed Retail, Car Parks, Shopping Centres, etc)
- Finance/Insurance (e.g Accountants, Banks, Credit Union, Buildings Societies, Insurance Services)
- Media (e.g Publishers, TV/Radio Studios, Printers, Recording Studios, Cinemas/Theatres)
- Manufacturing (Cement/Concrete Products, Metal Products, Glass Products, Electronic Equipment)
- Wholesaling (Cement/Concrete Products, Metal products, Glass Products, Landscaping Supplies, etc)
Notwithstanding the above, CGU has a very broad appetite and will consider most occupancies provided they have the information to assess the risk and provided with an appropriate lead time to underwrite the risk.
5. From your perspective, what would you say are CGU’s strengths in Property ISR?
We have a ‘Very Strong' Insurer financial strength rating and have built our brand around our customers and our partners. Our risk management capacities are also strong.
Our teams include Technical underwriting specialists with local decision-making capabilities in addition to dedicated onshore claims teams that are efficient, friendly, and responsive.
6. What is one piece of advice you can give brokers when presenting their Property ISR risks to underwriters?
Get buy-in from the Underwriter. Early engagement is important.
Tell us a story or provide insight about the opportunity/risk and include:
- Why is the account being marketed?
- What is important to your client?
- What are your expectations?
Always provide quality submissions capturing fundamental risk information such as:
C - Construction (age, materials)
O - Occupation (business activities, tenancy)
P - Protection (fire protection, security details)
E - Exposure (surrounding business)
Provide copy risk engineering reports where applicable and proactively respond to the insurer’s risk management requirements.