Perhaps understanding why premiums are going up will help with your decision-making.

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1 Why are Premiums Increasing? It s the number 1 hot topic! There s no doubt about it premiums are going up! Many of our clients are struggling with a tough economic climate and the last thing they want to hear from us is that their insurance is going to cost them more than last year. Perhaps understanding why premiums are going up will help with your decision-making. After all, deciding to can your insurance could have catastrophic consequences in the event of a disaster. What would be left for you and your family then? Consider this. In the past 12 months Australia has suffered the following spate of natural disasters resulting in these associated claims: Queensland Floods $2,400 million Victoria Floods $122 million Cyclone Yasi $1,330 million Victorian Storms $412 million Cyclone Carlos (NT) $15 million WA Bush Fires $35 million Margaret River Bush Fires $52 million Christmas day storms (Melbourne) $772 million This is over $5 billion in one year on top of the normal day to day claims of house fires, burglaries, car accidents and liability claims etc. And Australia is not alone. This kind of disastrous pattern is occurring around the world. Lloyd s of London, one of the world s major reinsurers, has just reported a loss of 516 million after paying out 12.9 billion in claims, the biggest amount in its 324-year history! The maths then is simple. The cost to insurers in recent years of running their businesses has increased dramatically because of a historic peak in claims. In order to survive, they must increase their income by raising premiums. But where does this leave you? Talk to us. There may be things you and your broker can do to reduce your premium. Phone us now to book a review.

2 Vital time to consider bushfire risk Conditions prompt special warning The Insurance Council of Australia (ICA) is warning that large spring bushfires and predictions of a hot, dry summer are sending a strong reminder to households in fire zones to prepare for a higher risk this bushfire season. The ICA said Australia is moving towards hotter spring and summer weather, and recent bushfires were evidence of the high fire risk. The Bureau of Meteorology is warning the chances of bushfires this spring and summer are much higher than the previous couple of years, said ICA CEO Rob Whelan. The very wet weather Australia experienced over the past two years has created optimal conditions for the growth of grasslands, providing potential fires with an abundant fuel source and means there will be a high fire risk from now until March. The seasonal outlook also points to higher-than-average temperatures for much of Australia. Whelan said the east coast of Australia had already experienced some significant bushfires that threatened homes and businesses, including the NSW Central Coast, and Queensland s Darling Downs and Atherton Tablelands. Bushfires have also affected Western Australia and the Country Fire Service in South Australia has announced total fire bans in parts of the state. This is just the start of the traditional fire season and it is clear the bushfire threat is very real, said Whelan. Householders in areas at risk of bushfires should take steps to prepare now. They should make sure their properties are physically prepared, and this should also serve as a reminder to review insurance needs.

3 Understanding Management Liability Often over-looked but worth considering Many business owners insure themselves against property damage or injury but overlook the key economic exposure of Management Risk. Imagine the impact of claims against you as the manager of a business like wrongful termination, theft of trade secrets, unfair competition or sexual harassment. No matter how baseless you might think a claim against is, it will still cost time and money to defend successfully. Management Liability protects the individuals and the company in relation to the exposures associated with managing a company. Key elements of the cover are: Directors and Officers Company Cover Employment Trustee Crime To explore your exposure to Management Risk and find out more about Management Liability, talk to your MGIB Broker.

4 New definition brings clarity Queensland floods raise questions for insurers Following the devastating Queensland Floods, many questions were raised about Flood Definitions for insurance purposes. With no standard definition in place, many flood victims were unfortunately left confused when they tried to claim on their insurance with some finding they were covered, while others weren t. It s a problem the general insurance industry has been battling with for a while. Back in 2008 an attempt was made to introduce a standardised Flood Definition but it was knocked back by the ACCC which argued the idea was anti-competitive. But through consultation with the Federal Government the standard is now in place providing consumers with greater clarity and peace-of-mind. Many insurers have already adopted the standard definition however there is a 2-year transition period in place to allow for contracts to be updated. If you would like to clarify your entitlements in the event of flood, contact your MGIB Broker.

5 Confusion reigns on funeral cover ASIC says people don t understand what they re buying New ASIC research has shown people don t fully understand products they are buying to pay for their own funeral. As a result they risk unknowingly burdening family with unforeseen expenses or having to cancel their insurance when premiums rise and losing all the money they had previously invested in the plan. ASIC s research showed people tended to settle for the first product they found to avoid being a burden on others. They were less likely to pick the product which best suited their circumstances or consider issues like value for money or long-term costs. There was a lot of confusion around different common products such as Funeral Plans, Funeral Bonds and Funeral Insurance. If you would like to know more about Funeral expenses cover or would like to review your existing cover, phone your MGIB Broker.

6 Sponsorship creates lasting memory MGIB is helping the South West Football League groom talent When the South West s best footy stars are selected by committee to compete in the prestigious annual Landmark Carnival in Perth, they get to keep their guernsey as a momento of their achievement. And this gesture is made possible each year due to MGIB s sponsorship of the South West Football League over the past 4 years. SWFL General Manager John Vidos said the chance to keep their playing jumpers had proven a terrific incentive for players to try for selection in the side. John said a team of 27 players aged between 18 and 32 were drawn from the League s 10 competing clubs. These young men are the new stars of tomorrow, he said. They aspire to develop their skills by playing at a higher level. Participation in the Landmark Carnival provides them with exposure and even opportunities to be drafted into the State and National sides. SWFL has claimed the WA Title for the past two years running, a clear demonstration of the quality and depth of talent in the region. John said a Landmark Carnival guernsey, featuring MGIB as a major sponsor, had become a sought-after item among players who often used them as training jumpers.