Larger SMEs need bespoke product suite
Jaydon Burke-Douglas and Damien Coates of DUAL talks to Insurance Business TV about why larger SMEs need something beyond standard Management Liability cover.
Video transcript below:
Reporter: Companies face an increasing regulatory burden as Jaydon Burke-Douglas from Dual Australia reminds us. This makes insurance a must have for all organisations.
Jaydon Burke-Douglas, Speciality Risks Practice Leader, Dual Australia
Jaydon Burke-Douglas: There is an ever increasing regulatory burden on Australian businesses. Recently we have seen the harmonisation of workplace health and safety rules. We have seen introduction of anti bullying rules in the Fair Work Act, we have seen introduction of privacy legislation which attracts a huge regulatory burden. Global companies are operating in an ever increasing global economy with global regulations. The increases in this regulation are certainly a good reason why insured should be purchasing more and better bespoke insurance solutions.
Reporter: As Damien Coates also of Dual Australia ascertains a company’s first port of call is normally management liability insurance.
Damien Coates, CEO, Asia Pacific, DUAL Australia
Damien Coates: Management liability is one of the true innovations in the insurance market, where we have seen a product that is being developed specifically, a packaged product specifically developed for the needs of SME businesses and as we have seen the product evolve, started with less than 2% of companies would have purchased a management liability to now most brokers are saying that 20% of their SME clients are purchasing a management liability policy. It’s a great cover and it addresses in one aggregate limit various exposures from EPL, STAT, D&O, tax audit, crime.
Jaydon Burke-Douglas: Management liability is a product which is really great for small to medium size enterprises. But it isn’t always an ideal solution for larger clients which do require more tailored bespoke solutions. Management liability as an official product albeit easy to transact, it’s not always easy to buy the tailored bespoke solutions. For that you would need stand alone products and at Dual what we are really trying to do is evolve a product suite to bridge the gap between management liability and stand alone products.
Reporter: As Coates explains Dual’s new product evolution aims to correct this.
Damien Coates: It is the bespoke tailored solution specifically addressing the needs to mid to large size companies. What it does it puts in place separate towers of cover for reaching the various insuring clauses, whilst maintaining the simplicity of the packaging of management liability. What we can’t afford is that management liability with its amazing simplicity will afford this information and you combine a policy, that’s not adequately going to address the risk of a mid to large size company. However, by the other end of the spectrum, by getting separate D&O, crime, stat, epl and tax audit cover, if you were to look at that in a traditional packaging that will be 120 pages of proposals, vast amounts of information, the pricing point would be significantly higher. So what evolution is retaining the simplicity of management liability but allowing a bespoke tailored solution to be put in place that adequately addresses the risks of mid to large sized companies and also giving them the balance sheet protection.