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| SHC Insurance Brokers: Protecting Clients and Rebuilding Confidence in Construction |
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“You’ve got to be honest, and you’ve got to execute
exactly what you say that you’re going to execute.”
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SHC Insurance Brokers: Protecting Clients and Rebuilding Confidence in Construction
29/10/2016
"The Middle East Times Int’l": has conducted an interview with Mr. Stefan Hicks, the CEO of SHC Insurance Brokers, who brings 37 years of business experience to the challenges facing Australia’s construction and property sectors." In this interview, he reflects on the company’s growth, the importance of earning clients’ trust and the responsibility of supporting them when claims arise. He also discusses rising cyber threats, balancing insurance costs with appropriate protection and ensuring clients understand policy exclusions. A central focus is latent defects insurance, which he believes can help improve building quality, protect purchasers and rebuild confidence in the property market, with particular relevance to the Lebanese and Arabic-speaking business communities. Following are edited excerpts from the interview:
Please give us a brief overview of your background and the challenges you have faced.
“I started in 1989, when I was 23, and have now been in business for 37 years. It has been an extensive journey, with opportunities, setbacks and many lessons along the way.”
We began in Perth, Western Australia, before expanding nationally, including into Sydney. Our journey also included an ASX listing in 2015 and expansion into London in 2016. When the board subsequently decided to sell the original SHC Insurance Brokers business, another director and I bought it back. It has been privately owned since 2018.
Managing growth has been the greatest challenge. A smaller business is like a yacht compared with the oil tanker of a large corporation: we prefer to remain nimble and respond to changes in the industry and the economy.
Recognising opportunities is one thing; managing expansion while maintaining service and stability is another.
How did the company earn its reputation as a specialist insurance brokerage?
We have specialised in construction and property from the beginning. That longstanding focus has allowed us to develop detailed knowledge of the industries, their risks and their insurance requirements.
Our reputation has grown through that expertise and the relationships we have maintained over many years. When clients stay with us for a long time, we regard that as an important reflection of the service we provide.
We like clients to see us as specialists who understand their businesses and can help them navigate the risks associated with their work.
What distinguishes your company from others, particularly given the intense market competition?
Expertise, service and trust are central to the difference. In a competitive market, clients need confidence that their broker understands their industry and will deliver on commitments.
During the interview Our international relationships are also important. We work extensively with insurance partners in London and other overseas markets, helping us access products and develop solutions for Australian clients.
One significant example is our work with latent defects insurance. We have placed that product at the centre of a broader insurance package, supported by risk management and technical inspections.
We describe this as an insurance “ecosystem”. The information and risk management associated with latent defects cover can help support other insurance arrangements, creating opportunities for broader policy terms and reduced premiums, depending on the project and the cover involved.
The true test of insurance comes when a loss occurs. How do you support clients during the claims process, and what steps are available if compensation is delayed or denied?
Our role is to bring our expertise to representing and supporting the client. That becomes particularly important during a claim, because this is when the insurance and our service are needed most.
We work to progress claims and resolve issues as quickly as possible, helping minimise disruption to the client’s normal business activities.
If a claim is delayed or disputed, there are several avenues we may pursue. These include the insurer’s internal dispute resolution process, external dispute resolution and, where appropriate, legal assistance.
The approach depends on the circumstances, but our objective remains to achieve a resolution on the client’s behalf.
What errors or risks can arise in your work, and how do you minimise them?
Insurance broking involves financial products and services, so accuracy and compliance are essential.
We operate within a regulatory framework, including oversight by ASIC, and follow compliance processes designed to minimise errors and risks when providing services to clients.
However, wherever people are involved, mistakes remain possible. If an error occurs, our approach is to be transparent with the parties involved and work to rectify the situation promptly.
Managing risk requires both sound processes and a willingness to address problems openly when they arise.
** How do you address escalating risks, such as natural disasters and cyberattacks, and how aware are clients of the importance of insurance against them?
Natural hazards are well understood in the construction and property industries. Businesses have considerable experience of insuring their physical assets against those exposures.
Cyber risk presents a different challenge. It may threaten operations and income without causing physical damage to a building or other assets.
Educating clients about this exposure has been a slower process. Businesses often understand the need to protect their property more readily than the need to address threats to their systems and day-to-day operations.
Cyber threats also continue to evolve, particularly with developments in artificial intelligence. Insurance can provide protection when an incident occurs, but the threats themselves keep changing.
Helping clients understand the potential business consequences remains an ongoing part of our work.
Many people discover the limitations of their insurance only when filing a claim. How do you help clients understand exclusions and terms before taking out cover?
It is the broker’s job to understand the client’s business, identify its risks and explain the limitations of the insurance being arranged.
We need to sit down with clients, particularly at renewal, and discuss what each policy covers, where restrictions apply and what additional protection may be available.
That discussion should extend beyond physical assets to operational disruption, income protection and consequential losses.
Once gaps have been identified, clients can make an informed decision about whether to purchase additional cover or retain a particular risk themselves.
They should understand those choices before a loss occurs. Clear explanations are a fundamental part of the broker, such as SHC Insurance Broker’s service.
** What have been the most significant changes in the insurance needs of individuals and business owners in recent years?
For our construction and property clients, latent defects insurance has been a particularly significant development.
Its importance extends beyond the policy itself to the associated risk management, including technical inspections. We believe that combination can help improve building quality and provide greater reassurance to purchasers.
Concerns about defects and rectification have damaged confidence in buying apartments off the plan. Addressing those concerns matters to consumers, strata communities, developers and builders.
Greater buyer confidence can also support sales, project feasibility and financing.
Affordability is another important consideration. Insurance markets move through pricing cycles, and the broker must examine available options to match appropriate protection with a competitive premium.
Our work involves looking at both Australian and international markets to find suitable arrangements for clients.
What is your vision for SHC’s future, and what is your message to clients across the wider Australian and Arabic-speaking communities?
Our vision is to continue providing professional, specialist service to the construction and property industries. We want to remain recognised for our expertise and maintain the standards our clients expect.
International relationships will continue to support that work. Meetings with partners in London, Paris and elsewhere help strengthen relationships and progress discussions about products and client needs.
For the Lebanese and broader Arabic-speaking communities, these issues are especially relevant because of their strong involvement in construction and property.
The benefits of better risk management and stronger consumer confidence extend to those businesses, their customers and the wider community.
Our focus is on helping clients understand their exposures, obtain appropriate protection and move forward with greater confidence. |
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