Get to know Arthur Frossos, Southern Region Senior Property Underwriter:

1. Where did you work before this position?

I have been at CGU for approx 28 years, and for the past 9 years in Property after working as a BRM and in claims for Commercial Union. I started my Insurance career at Colonial Mutual working in claims.

2. What is something you find challenging about your role?

The challenge for ISR is that it’s mostly a bespoke type of product and not a one size fits all. Customers often think that you can simply produce a price, which can be used as a comparison to another policy. Customers often focus on the end price, thinking they are comparing apples with apples without understanding things like sub-limits and application of endorsements (and what they actually mean). This makes for a wide range of variables, which is challenging, as it takes time to tailor the policy.

3. What do you see as the biggest influences in the Property market at present?

At present we are still in a hard market cycle. One of the longest ones for a while but by comparison the last soft cycle was quite extended, so all things do balance out. Property is thinking forwards, toward a focus on growth with the general expectation that the market would have softened by now. But we are still experiencing elements of the hard cycle that has been exaggerated by the impact of unprecedented events. Many large weather and perils-related events (floods, fire, etc.) are having a greater impact on reinsurance costs. Add COVID and the Ukraine war with rising inflation, and we are now experiencing increased pressure on supply chain and claims costs. Just as we thought we were seeing the end of the hard cycle these factors have now extended it.

4. In general, what types of Property opportunities are seeing and writing the most?

Generally, we are getting good results on accounts that are well-presented with a strong focus on risk management. Our strike rates on these accounts are excellent. Aged Care continues to provide prospects with competitor activity opening new opportunities. Property Owners where tenancies are in the medium to low hazard space (such as shopping centres) are getting good traction, as well as light to medium industrial/engineering/manufacturing risks. We are also looking at some accommodation type risks (i.e., 4 to 5 Star hotels). With CGU recently coming back into the > $1bn asset segment we are making good, early in-roads in that space, particularly with markets having thinned out. Having a major player like CGU back on board has aided brokers by filling capacity on those larger programmes. This also adds a level of stability for brokers not having to source capacity through agencies or overseas markets.

5. From your perspective, what would you say are CGU’s strengths in Property?

CGU is a market leader with a strong brand and is a stable Australian company. Our local underwriters are market-facing, experienced and knowledgeable and easily accessible to meet in person “old school style.” We know some of our competitors don’t do this as well, which is frustrating for our broking partners when they can only speak to someone on the phone. I think this is a real strength that is often underrated. CGU coming back into the >$1bn space also provides a strong leverage point, allowing us to look at other opportunities from our brokers to support in return.

6. What is one piece of advice you can give brokers when presenting their Property opportunities to underwriters?

We are easily accessible so always pick up the phone first to discuss the account in the first instance. You’re more likely to pique our interest straight away. If it’s not going to be a viable option, it will save time and most importantly you will know exactly what we need to see and what information to provide. This also helps to manage your expectations. If it’s a last-minute placement, we will let you know if we can accommodate it, rather than sending us a slip a week out from renewal hoping for the best. Providing the right information at the outset goes a long way to getting a good response and outcome. If we have discussed the opportunity and have the right information, then the risk is on our radar likely to be on top of the pile.