Bad’s not going anywhere.
Neither are we.
An industry magazine for the insurance sector
Issue 33 – September 2014
Diversity
& inclusion
Why they're more than buzzwords for NZI
4,242,048
If New Zealand was a village of 100 people...
49
51
100
are male
are female
74
people
49
2013
NZ5569/10 04/14
37
1981
37
51
was our usually resident population in
2013. In our village of 100, each person
represents 42,420 people.
Leadership
Economy
Variety is the
spice of life
Welcome to the September issue of Connect
magazine – my final one, in fact (see page 3).
IAG's purchase of Lumley General Insurance
in New Zealand was completed on 1 July
and marked the start of an exciting new
chapter towards achieving our vision of
being New Zealand’s insurer of choice by
being the easiest to interact with. We’re
currently working on the plans and processes
necessary to ensure the long-term success of our expanded business.
A Transformation Management Office (TMO) has been set up
to coordinate and deliver the overall plans that will enable us to
successfully transform our intermediated business.
At the same time though, as they say, the show must go on, but
this is not without its challenges as we continue to operate in a
challenging market. Throughout my career I’ve seen a number of
market cycles, but this is the harshest of them with some in the
market demonstrating short memories and many learnings of past
market cycles ignored. For our part we believe it’s important to retain
the integrity and credibility of the industry, and that we all have a
part to play in that.
In this issue of Connect we explore the importance of diversity and
inclusion, and the place this has in our business. It’s really important
to us to ensure that diversity is reflected in our workplaces. As an
organisation we’re taking steps to make this a reality, including
setting ourselves a diversity ambition: “to respect and value
the different experiences of our people, and harness the opportunity
and benefits that diverse ideas and perspectives bring to our
organisation and stakeholders.”
For us, diversity is really about opening ourselves up to diverse
thinking and new ways of doing things – after all, our country is built
on different cultures, religions, ages and backgrounds. If we are to
stay connected with our customers, it’s imperative that we have an
understanding of our population, and that our workforce reflects this.
I hope you find this issue of Connect both informative and
interesting. And please see the last page for my final thoughts and
heartfelt thanks.
Karl Armstrong
Executive General Manager, NZI
1 NZI CONNECT
In this issue:
2
Mind the gap
Rod Oram discusses the chasm between
New Zealand's economic performance and potential
3
Passing of the baton
Travis Atkinson to take over from Karl Armstrong
as NZI’s Executive General Manager
5
Diversity and inclusion
Not just buzzwords – the importance of diversity
at NZI
7
What goes around comes around
9
Reflecting on the move to Sum Insured home
policies, particularly educating the marketplace
Pro Select proves popular
NZI’s new liability product proves a hit with brokers
10 Resilience: slowing down to speed up
11
How to improve productivity by training your brain
3D printing technology
How does it work and is it here to stay?
13 Working safer – the Government’s plan
What’s being done to improve workplace health
and safety
16 Creating value through partnerships
The benefits of preferred supplier agreements
17 An easy way to green your supply chain
The Sustainable Business Network’s new online
business directory
Front cover illustration from the 2013 Census
– New Zealand as a village infographic
Mind the gap between
performance and potential
Fresh from this year’s NZI Business Breakfast series, Rod Oram looks into the heart of our
country’s economic challenge – the chasm between our performance and our potential.
He outlines the contributing factors and makes the case for progressive changes in policy.
We’re enjoying our strongest economic
growth since the mid-2000s boom before
the Global Financial Crisis. A few big
factors are driving it, such as the rebuild
of Christchurch and spikes in the volume
and value of milk and log exports.
The Productivity Commission offers
some policy recommendations to help
transform the economy. But this is
essentially a conservative approach
aimed at incremental progress in our
existing business model.
But over recent months, conditions have
turned unfavourable for milk and log
exports. One sign was Fonterra’s recent
cut in its payout forecast from $7 per kg
of milk solids to $6.
Instead, we need progressive policies,
such as big changes in monetary policy
to relieve pressure on interest rates
and the dollar, a return to research
and development tax credits from the
current government grants, a capital
gains tax to help shift investment from
There’s enough momentum for GDP
growth to be close to the Reserve Bank’s
forecast of 3.5 per cent in the year to
next March. However, it will ease to just
over 2 per cent a year in the following
two years, the bank says.
This pattern goes right to the heart of
New Zealand’s economic challenge.
There is a big gap between our
performance and our potential.
housing to the productive sector, and
compulsory superannuation to deepen
our capital pool. Such policies would
trigger a step-change in growth and a
shift to high-value exports.
Regular business commentator and
journalist Rod Oram was keynote
speaker at the NZI Business Breakfast
2014 series held in July and August in
Auckland, Wellington, Christchurch and
Hamilton. You can download a copy of
the presentation from the news section
on the NZI website. NZI
Two factors account for most of the
gap: our international commercial
connections are weak and we
underinvest in science and technology.
The Productivity Commission offered
valuable insight on this in a report in
April. Based on macro policy factors,
such as consistent fiscal and monetary
policy and openness to trade, our GDP
per capita should have been $43,518 in
2009. This would have been well above
the OECD average of $37,191. But our
actual GDP per capita was $30,179, a
gap of 30 per cent from the potential.
Two factors account for most of the gap:
our international commercial connections
are weak and we underinvest in science
and technology. As a result, we depend
on exporting simple commodities rather
than selling sophisticated products
directly to consumers.
NZI CONNECT 2
People matters
People matters
Passing of the baton
Travis Atkinson will take over from Karl as Executive
General Manager NZI on 15 September. He’ll be returning
from a posting in Kuala Lumpur where he’s been Chief
Executive Officer of IAG’s Malaysian insurance joint venture
– AmGeneral Insurance Berhad – for the past two years.
After six years as Executive General Manager NZI, it’s with mixed emotions that
Karl Armstrong moves on to his new role as IAG New Zealand's Chief Risk Officer.
What are you most proud of in your
career as EGM NZI?
At a high level it would be that I’ve been
given the opportunity and privilege of
being custodian of NZI. I have loved
every minute of the six years in the role.
At a more granular level, I’d have to
say it’s the way the organisation rallied
to meet the needs and challenges the
earthquakes created. I was very proud of
how we did that and of how I observed
people rise to the challenge.
Who’s someone you admire?
You’re never too old to learn, says
Karl, as he shares with Connect his
reflections on his time leading NZI,
including his proudest moments, and
some advice for his successor.
How did your first day in the
insurance industry go?
I worked for NZI in Nelson as the office
junior. My job was to clear the telex
machine, among a number of other
menial tasks. On my first day I was told
to get a haircut as my long locks were
deemed unacceptable. A bit ironic now,
given I have the opposite challenge.
What have you enjoyed most about
the last six years, leading NZI?
I feel extremely fortunate to have
had the opportunity to meet so many
extraordinary people both within our
organisation and our broker network.
I’ve felt very supported and have
always had an extremely talented and
trustworthy team around me to share the
load. There have been some great times
and experiences along the way and I’ve
formed many long-lasting friendships.
3 NZI CONNECT
I admired Peter Blake. I was fortunate
enough to have some dealings with him
as at one stage he was an ambassador
for NZI. I had an opportunity to gain
insights into his thinking, leadership and
approach to teamwork. I enjoyed the
experience and took learnings that are
still with me today.
Do you have, or have you had, a
mentor or coach? What’s the value of
this been to you?
I’ve had an external coach for the past
five years. I’ve found it really useful to
have an independent sounding board
who has helped me manage my way
through challenges and issues with
peers, our people and my superiors. This
is not limited to my work career – I’ve
found this has helped me to formulate
my thinking on a wide range of issues
including elements of my personal life,
including my recent decision to make
a career change. I highly recommend
having an independent coach or mentor.
What’s the best advice you’ve ever
been given?
My grandfather told me “you’re never
too old to learn”. He lived it and at 72
years old he got his locomotive driver's
licence. I’ve never forgotten it and
that’s been part of informing my recent
decision to take up the role of Chief Risk
Officer as it’s a new learning opportunity.
What are you looking forward to
most in the next month?
That’s an easy one, I’m going on
holiday and am looking forward to the
opportunity to switch off for a while.
Increasingly throughout my career I’ve
learnt that time to recover and recharge
is absolutely essential if you want to
keep performing to a high level. It’s
been a really tough year so the holiday
is timely, but it also provides a great
segway into my new role.
What do you think the first six
months of your new role will hold?
As with everything new, I think it’ll
involve a lot of listening, learning and
thinking. There are a lot of people in
the business with experience in this
area so I’ll be able to benefit from their
insights and expertise. Also, as this is
a new role there’ll be a lot of thinking
and planning – I’m looking forward to
that time and I’ll also be able to tap into
the knowledge and expertise from my
counterpart in Australia.
If you had to give any advice to the
new EGM NZI, what would it be?
Invest in partnerships and relationships
as that’s really what our business is
about. And that extends to within the
organisation as well. The strength of the
organisation is its people, so what will be
gained from listening and learning will
provide a great foundation to continue
to grow the organisation. NZI
We’ve travelled a lot throughout
Malaysia and across the region and had
wonderful experiences. Asia is full of
many contrasts, fascinating history and
is changing so rapidly, which has been
fascinating to see.
Travis will already be known to
the majority of NZI’s broking and
financial institution partners as,
prior to Malaysia, his roles with IAG
included Executive General Manager
Business Partners, and National
Broker Sales Manager, responsible
for NZI’s branch network.
Why did you want to take on the
role in Malaysia?
I’ve always enjoyed the challenge and
opportunity of a change of role and
throughout my career I’ve lived in many
different parts of New Zealand and
worked in different divisions. While I
wasn’t actively looking to move overseas,
a number of things appealed such as
IAG’s strategy in Asia and commitment to
the region, the level of challenge the role
offered, and the sense of adventure.
What were the most exciting aspects of
both the role, and your time overseas?
I certainly wasn’t prepared for the
extent of change and the culture shock
– these were very challenging early
on. And having a two-year-old and a
three-month-old baby in tow added to
that challenge! But taking on the role
of CEO at a time when the business
had just made an acquisition, and with
the market facing a lot of change and
uncertainty, has been very rewarding.
Across all of our businesses in Asia, I see
the opportunity to really contribute and
make a difference, and things that we
take for granted in New Zealand and
Australia can help so much here.
What do you think the first six
months of your new role as EGM NZI
will hold?
I find myself in Malaysia often quoting
IAG’s value of “a considered sense of
urgency” and I think the immediate
future for us in NZI is to move ahead as
quickly as we can, but at the same time
ensuring our partners and people are at
the forefront of what we do. Personally
I expect to spend a lot of time with our
partners and our team.
Do you think there will be many
similarities between leading the
business in Malaysia and leading NZI?
Absolutely. Our vision and goals in
Malaysia all relate to building a great
company, one that leads the market, is
a strong partner, and fantastic place to
work. In Malaysia, and indeed across
Asia, we’re seeing very competitive
markets that are facing challenges and
opportunities from things like changing
regulation, customer demands and
technology. These are equally as relevant
in New Zealand, as is the need to
prioritise our people, communicate well
and build a great working culture.
What will you miss most about
Malaysia?
That’s easy; the people, food and the
weather. Even if it is too hot at times,
the 30-degrees-on-average climate
is something I’ve certainly got used
too. The quality and variety of food is
fantastic, and I’ve especially enjoyed
meeting and working with a wonderful
group of people.
Who’s someone you admire?
A particular individual doesn’t come to
mind, but coming from the West Coast
and having a great love of history, I’ve
always had great admiration for the
pioneers of New Zealand. While it was a
different era, the hardships and obstacles
they faced have always been something
I’ve found very inspirational.
What’s the best advice you’re ever
been given?
I recall a manager many years ago
encouraging me to be myself, be real
and open, and always be prepared to
learn, and I believe these are important
personal traits. A few years ago during
my MBA studies, a teacher challenged
me with the question “why should
anyone work for you?” and I’ve found
this very relevant in my work life.
What are you most looking forward
to about moving back to New Zealand
and undertaking this new role?
Being away for a couple of years has
reinforced to me how fortunate we are
in New Zealand. We have a beautiful
country and I’m looking forward to
travelling around it again. Being closer to
our families is important to us as well.
It’s a privilege to take on the
guardianship of NZI. We have such a
strong heritage, plus the future looks
extremely exciting. I love working in
our industry and I’m looking forward to
continuing the great work done by Karl
and the team, and ensuring we remain a
great company. NZI
NZI CONNECT 4
Workplace
Workplace
Diversity and inclusion:
more than buzzwords for NZI
A quick look at the latest New Zealand Census results shows we live in a hugely diverse
society. We are a country built on diverse cultures, religions, ages, family units and
backgrounds. This month, Connect explores the importance of diversity at NZI.
At NZI we want to see diversity reflected
in our workplaces. As an organisation
we are taking steps to make this a
reality, including setting ourselves a
diversity ambition: “to respect and
value the different experiences of our
people, and harness the opportunity
and benefits that diverse ideas and
perspectives bring to our organisation
and stakeholders.”
For us, diversity is really about opening
ourselves up to diverse thinking and
new ways of doing things.
Many organisations are talking about
diversity, and while it may feel like it’s
a bit of a buzzword, the benefits of
having a diverse workforce can’t be
underestimated.
International studies have shown
workplaces that embrace diversity have
better staff retention, better customer
service, improved recruitment, reduced
absenteeism, greater productivity and
they are more successful at attracting
new customers.
PwC New Zealand CEO Bruce Hassall has
said of diversity that “most of the world
already gets it” and New Zealand needs
to address the issue. “Our failure to
address diversity will increasingly impact
our future growth, competitive position
and our prosperity as a country in a
world that is rapidly changing.”
Why is it important to us?
We believe our diversity ambition will
help us attract and retain the people
we need to drive the future success and
sustainability of our company. It will
help us reach our ambition to be New
Zealand's insurer of choice by being the
easiest to interact with.
We recognise there are diverse ways of
seeing the world, solving problems and
The changing face of New Zealand
``New Zealand’s five largest ethnic groups are New Zealand European, Maori,
Chinese, Samoan and Indian.
``40% of Aucklanders were born overseas and 25% of all New Zealanders
were born overseas.
``Nearly 12% of New Zealand’s population – more than 470,000 people
– are Asian.
``More than 7% of New Zealanders are Pacific peoples.
``More than 87,000 New Zealanders do not speak English.
``The population aged 65+ will increase to 1.2 million in 2036 and 1.5 million
in 2061 – as a proportion of the population people aged 65+ will account
for more than a quarter by 2061.
Source: Statistics NZ
5 NZI CONNECT
working together. And at the end of the
day, it just makes sense for us to align
our people with the changing make-up,
and needs, of our population. If we’re to
really be connected with customers, we
need to truly understand them.
IAG New Zealand CEO Jacki Johnson says
that without a diverse workforce we can’t
meet the needs of our customers or keep
up with future demand for our services.
“If there is no ethnic diversity in our
underwriting and actuarial teams,
how will we serve the cultural mix
of customers expected to be buying
insurance in 2020? If there are no
women at the board table, how
will insurers find enough talent in a
workforce full of retiring baby boomers
and increasing proportions of highly
qualified young females?”
These comments about diversity are
particularly relevant in light of the 2013
Census results that identified 213
different ethnic groups in New Zealand.
Our five largest ethnic groups are New
Zealand European, Maori, Chinese,
Samoan and Indian, and in Auckland,
our largest city, almost 40 per cent of
the population was born overseas.
What are we doing in this area?
We have a common diversity ambition
across the IAG Group, which is led by an
IAG Diversity and Inclusion Action Group
with representatives from Australia and
New Zealand.
In September 2013, the New Zealand
Diversity and Inclusion Action Group
was formed, under Chair John Chandler,
to put in place initiatives that support
gender, age and ethnic diversity. The
group’s role is to help identify the local
New Zealand challenges requiring focus
and action.
Our village’s population has
tripled in the last 87 years...
The median age increased by
almost 10 years since 1981....
Our increasing population
Age group and median age
Based on the census usually resident population count
By sex, for the census usually resident population count
IAG is also one of the 40 organisations
working with Diverse NZ over a twoyear period to learn more – and share
information – about successful tools
and frameworks that help companies to
innovate new approaches to meet New
Zealand’s unique diversity challenges.
2013
100
Putting our money where
our mouth is
80
2001
1926
88
33
1936
37
NZI believes fostering diversity will help
our business identify and connect with
a culturally diverse client base, give us
access to different perspectives and
help attract the best talent from New
Zealand’s diverse talent pool. We hope
our NZI teams and brokers will all join us
on our diversity journey. NZI
60
1945
40
1996
85
1951
38.0
46
40
28.1
1956
1991
51
80
20
1961
57
1986
77
1966
1981
74
1976
73
1971
63
0
4
67
2
2
4 0
4
2
People
2
4 0
People
Male
Female
Median age (years)
If New Zealand was a village of 100 people, then every person would
represent 42,420 people (thus totalling 4,242,048, our usually resident
population in 2013). In the village 80 people are aged 15 years and over.
The graphics in this article are reproduced from Statistics New Zealand's
Census 2013 'New Zealand as a village' infographic.
Our ethnic groups *
Languages we use *
For the census usually resident population count
For the census usually resident population tcoun
To help ramp up our efforts we have
established a new role focused on
diversity. The role will help drive activity
around three focus areas: gender balance,
cultural diversity and mature workers.
Initiatives driven by the new position
will be aimed at increasing the number
of women in leadership roles, driving
inclusive leadership practices across IAG
NZ and improving our cultural diversity
at all levels of our organisation.
2013
Age (years)
95
We were delighted to recently host
and co-facilitate, alongside Auckland
Council, a session on diversity and
inclusion with key business leaders
and HR professionals from a range
of organisations. The session saw
several experts sharing insights into
how to monitor progress and ensure
accountability around workplace diversity.
This event also provided a great
opportunity to hear from organisations
at different stages of the diversity
journey and to understand the benefits
being realised along the way.
1981
people
2006
90
European
people
English
70 people
3
Māori
Middle Eastern /
Latin American /
African
2
Māori
1
14
1
Other ethnicity
2
Asian
11
Pacific peoples
7
each
Samoan
Hindi
each
Northern Chinese
French
Yue
Sinitic not further defined
German
Tongan
Tagalog
Afrikaans
Spanish
Korean
7
Other (including New Zealand Sign Language)
Not elsewhere included **
Not elsewhere included **
5
7
* Multiple answers possible so will total more than 100.
**Not elsewhere included: Don’t know, refused to answer,
response unidentifiable, response outside scope, and not stated
.
NZI CONNECT 6
Home
Home
But let’s face it, while we in the industry
are prone to getting excited about
insurance, the reality is customers don’t
necessarily see it this way.
As a rule, New Zealand home owners
invest little time in their house insurance
policy decisions, which is evidenced by
the statistics from a recent customer
survey of 1000 people we conducted:
What goes around
comes around
``93% of those customers say they
are aware of the recent changes to
home insurance
``Of those customers who are aware of
the recent change, 62% have actively
reviewed their Sum Insured and 37%
of these customers have changed it
``Of those customers who are aware of
the recent change, 31% haven’t
reviewed their Sum Insured.
It’s important as an organisation, and an
industry, that we continue to monitor
and understand decisions customers are
making. Recently we did some further
research to better understand Sum
Insured decisions and underinsurance
at different levels of income. Not
surprisingly we found that:
``households with larger net incomes
In the past year the home insurance market has significantly changed
with the major insurers' move to Sum Insured policies. Garry Taylor, NZI’s
General Manager Broker Personal Sales, considers the industry’s success
in educating the market and concludes it’s not over yet.
are more likely to select a Sum Insured
different to that ‘offered’
``as household net income rises, the
percentage of home owners who
increase their Sum Insured grows as
does the size of the increase
``the reverse is also true: as net income
The old adage ‘what goes around
comes around’ has certainly come
true for me in my insurance career.
I recall being involved in the move to
open ended polices some 20-odd years
ago when I started my career selling
insurance to customers across the
counter at State. Little did I know that
years later I’d be so closely involved in
the move from open ended polices
back to the Sum Insured model.
It’s been more than 12 months since the
home insurance market began the move
to Sum Insured policies and it’s probably
7 NZI CONNECT
safe to say that we’re all well versed on
the rationale for the move. However,
I think it’s important to reflect and
consider whether we‘ve been effective
as an industry in communicating these
changes and educating the marketplace.
In the last issue of Connect I mentioned
how NZI’s approach, as part of the wider
IAG family, was to front-foot it and take
a leadership position to help partners
and customers manage the change.
We wanted to ensure customers were
aware of the rationale for the change
and understood the best options to
ensure adequate protection. What
followed was a significant investment
in a campaign that included: the
Need2know website, an extensive press
and TV campaign and the Cordell online
calculator to help customers determine
a Sum Insured.
Since launching in March 2013 the
Need2know.co.nz site has had 1.6
million visits with an average session of 10
minutes. Thirty-five per cent are returning
visitors, 6500 people downloaded their
calculator PDF and almost 7000 people
viewed at least one video.
falls, the percentage reducing their
Sum Insured grows as does the size
of the decrease
``the risk of a particular location appears
to have little bearing on a customer’s
Sum Insured decisions and any
resulting underinsurance.
It’s interesting to note that 36 per cent of
NZI customers have changed their Sum
Insured. And of those who increased it,
the average change was 38 per cent.
These figures are significantly higher
than in direct channels, which we believe
demonstrates the real value brokers can
add. If ever there’s been a time when the
Thirty-six per cent of NZI customers
have changed their Sum Insured. And
of those who increased it, the average
change was 38 per cent.
expertise a broker can provide has been
highlighted, and their place in the industry
cemented, it’s through these changes.
However, the truth is we haven’t felt
the full effect of the changes to Sum
Insured yet. There are potentially many
customers who are unknowingly
carrying additional risk, in particular
in the event of a total loss. We have a
responsibility to continue to educate
clients about underinsurance and what
the implications are. Brokers are in
the perfect position to do this and the
figures of those changing their Sum
Insured support this.
The biggest challenge now is how we
collectively continue to create awareness
and educate customers on their part in
managing their insurance needs. Despite
our education investment, the job’s not
over yet and the success, or otherwise,
of the Sum Insured move is yet to be
tested. We all need to take responsibility,
as the best line of defence is to try to
address adequate cover and protection
at renewal time. NZI
NZI CONNECT 8
Products
Health and wellness
Pro Select proves popular
The new,
comprehensive
and costeffective
liability
product from
NZI Professional Risks has
proven a hit with brokers,
since its launch in May.
Aptly named due to the choice it offers
to brokers, NZI Pro Select contains the
full suite of professional liability cover. It
has sections for Professional Indemnity,
Directors and Officers, Broadform,
Statutory, Employers, Employment
Practices, and Internet Liability, as well
as Fidelity, Workplace Legal Defence
Costs, and Liability Consequential
Loss. It provides a unique opportunity
for brokers to tailor cover to meet the
liability needs of their clients in one
simple, convenient and integrated policy.
Brokers can select the sections of the
wording their client requires, with
separate sums insured for each or an
aggregate sum insured for further
premium saving. The only parameters
are that they must select a minimum
of five sections, and this must include
either the Professional Indemnity or the
Directors and Officers section.
NZI Professional Risks Manager Katie
Young says Pro Select has had a strong
introduction, with plenty of interest
from both brokers and clients.
“We’re seeing a number of brokers
upselling Pro Select to clients who
previously had only three or four
professional risks lines, or switching
clients over to the product, due to the
broader coverage it provides.”
Young believes NZI Pro Select is unique
in its flexibility to adapt to individual
clients' requirements.
“Unlike other packaged products in the
market, clients can select the lines of
cover that are relevant to their business.
For example, if someone is self employed
and has no staff, they won’t need
Employers Liability, Employment Practices
Liability or Fidelity cover, so they can
choose to omit these sections from their
policy, and as such, not pay for covers
not required,” she says.
Young adds that with litigation
becoming increasingly common in
today’s commercial environment, she
believes there’s a critical need for every
business to have comprehensive liability
cover, no matter what the size of the
business operation.
“We’ve ensured Pro Select is available
to any business from sole trader to large
corporate – they don’t have to meet any
criteria in size or turnover.”
Other distinguishing features of NZI
Pro Select include a greatly enhanced
Broadform Liability section containing
new covers and some higher sub-limits
to existing automatic extensions, as
well as Professional Indemnity, Directors
and Officers, Statutory Liability and
Employers Liability all being costs in
addition – with Liability Sum Insured
mirrored by a separate Defence Costs
Sum Insured.
Pro Select is exclusively available from
NZI Professional Risks, so please contact
your NZI Professional Risks underwriter
to see if it’s right for your client. NZI
We’re seeing a number of brokers
upselling Pro Select to clients who
previously had only three or four
professional risks lines due to the
broader coverage it provides.
9 NZI CONNECT
Resilience: slowing down to speed up
Andrew May is a leading performance and productivity expert who
coaches some of Australia and New Zealand’s leading corporates.
Connect recently sat in on one of his sessions about resilience and
discovered that slowing down is the best way to speed up.
Attending one of Andrew May’s sessions
is anything but boring, particularly when
it begins with a slide showing a pair of
men’s underpants, a pair of spectacles
and a clock. It turns out the underpants
or ‘jocks’ symbolise his earlier career as
a professional athlete, the spectacles
his academic pursuits and the clock his
focus on improving productivity at work.
May’s session was focused on resilience
and in particular, when the front row
and the back row engage. His thesis
is that the front row is our state of
mind (our first line of defence), which
is supported by the back row, our
physiology. When the two engage you’re
working optimally with more capacity
to ‘play’ in all areas of your life.
May says we need to start thinking of
the brain as a muscle we can train, just
as we train other muscles via physical
exercise. By training our brain we can
move into a flourishing state where
we are connected to all parts of our
life, as opposed to what he describes
as languishing – or ‘fair to middling’ to
borrow another footy analogy.
One way to train the brain is to focus
on self-talk, those thoughts that rush
around our heads all day, every day.
May says we can have as many as
50,000 different thoughts each day
and 12,000 conversations.
He says the stories we tell ourselves build
neural pathways, which means we can
think ourselves into a negative situation
and if left unchecked, continue to see
the world this way. Each of us will have
stories we need to ‘hang up’ to improve
our front line of defence.
The stories we tell ourselves build
neural pathways, which means we
can think ourselves into a negative
situation and if left unchecked,
continue to see the world this way.
Slowing down to speed up is an
approach gaining traction, including
with media entrepreneur and former
workaholic, Arianna Huffington. In a
recent Listener article Huffington says
she has become evangelical about the
discovery that people can get to where
they want to go faster by slowing down.
May agrees: “It’s only when we slow down
do we truly appreciate what we’ve got.
“Slowing down can be as simple as
taking a lunch break, walking around
the block, reading a book on the bus
home, listening to your favourite song,
or doing two minutes of deep breathing
– simple actions that can improve your
front line of defence.
“Take time out to train your brain and
you’ll be surprised just how much more
productive you can be.”
To find out more about improving
performance, check out Andrew May’s
blog ‘Performance Matters’ in the
Sydney Morning Herald. NZI
NZI CONNECT 10
Technology
Technology
A few years ago if someone told you
they’d fixed their dishwasher by printing
a replacement plastic part at home,
you’d think they were crazy. But this is
exactly what Murray Clark did.
3D
printing
:
fly-by-night fad
or here to stay?
3D printing seems to be
hot right now, but is it
all just hype? Connect
investigates.
In his day job as Marketing Manager for
Ricoh New Zealand, Murray had already
invested in a 3D printer at home when
customers started asking whether he
knew where they could get them. This
prompted him to look into the product
options available to Ricoh and, fast
forward to the latter part of last year,
Murray really did fix his dishwasher and
Ricoh had become the New Zealand
reseller of MakerBot 3D printers.
So just how do 3D printers work? The
basic premise is that the printer creates
solid objects from a digital file that is
designed using 3D graphic software or
created from a digital scan of an existing
object. The machine then ‘slices’ the file
into layers, which are then printed from
the base up. This is usually in a form of
plastic filament, which is pushed through
an extruder onto a build plate.
If you think this is a fly-by-night craze,
think again. A recent New Zealand
Herald article estimated the industry
was worth $2.2 billion globally, up
29 per cent from 2011, and predicted
to increase to $8.4 billion by 2025 if
medical uses are developed.
Murray Clark says one of the main
drawcards for 3D printers is that
they empower people to create and
repair things easily. “One-off or short
run objects can be made easily and
prototyping becomes a breeze.
“We have one customer using their 3D
printers to create scale models of interior
office fit-outs and another industrial
engineer who is making functional
working prototypes literally overnight.”
It seems the possibilities are truly endless.
3D printing has been used to create
artificial limbs, human organs, and is also
being used in the aerospace industry.
NASA is reportedly already building
11 NZI CONNECT
So how does 3D printing
impact the insurance industry?
some of its customised spacecraft and
instrument parts using 3D printing, and
it’s suggested that astronauts might even
make tools and replacement parts by 3D
printing them in space.
Like the earlier example of fixing
the dishwasher, it’s anticipated that
3D printers will change inventory
management practices forever. In the
not-too-distant future your mechanic
may 3D print a replacement part for
your car rather than order it from the
overseas manufacturer – good news for
the mechanic and the customer who
gets their car repaired faster, but what
about the original manufacturer?
It’s questions like this that expose 3D
printing for what it really is: a disruptive
technology that has the potential to
have an impact on virtually every aspect
of our lives.
The technology has even got the
attention of the White House. In last
year’s State of the Union address
President Obama said: “3D printing
has the potential to revolutionise the
way we make almost everything. We
must ensure that the Next Industrial
Revolution in manufacturing will happen
in America. We can get that done.”
One of the biggest benefits of 3D
printing is the savings in time and cost
creating replacement parts. From the
point of view of putting people back into
the same position they were before an
unexpected event, 3D printing can help
to do this faster and more cost effectively.
In the future, the ‘new norm’ may see
retail partners and repairers with the ability
to 3D print small parts and components to
replace those that were damaged instead
of requiring a brand new purchase, thus
allowing insurers to resolve a claim more
conveniently and easily.
And while it might sound science
fiction, the Guardian recently reported
that a company in Shanghai has been
3D printing houses using a mixture of
cement and construction waste. The
company, Shanghai WinSun Decoration
Design Engineering Co, 3D printed
10 houses in one day, which begs
the question of what this technology
could do for the Christchurch rebuild.
It’s clear that 3D printing, over time,
will no doubt have an impact on our
industry, particularly by assisting insurers
to get people back into housing in a
cost-effective manner following an
unexpected event.
3D printing has completely changed the
rules by mainstreaming technology that
was once the preserve of specialists. It’s
also connected with the Kiwi DIY spirit
and is a way of working that’s really
only scratched the surface of possibility.
Watch this space. NZI
NZI CONNECT 12
Safety
Safety
Working
– the Government’s plan
In New Zealand 75 people are killed in their place of work every year. That’s 75 working
Kiwis who don’t come home from work, period. Connect looks at what’s being done to
reduce the odds and the role business leaders play in workplace health and safety culture.
In August last year the Government
introduced Working Safer – a programme
of change to improve health and safety at
work that represents the most significant
reform of New Zealand’s workplace health
and safety system in 20 years. Pike River
is the catalyst for this programme of
change that aims to reduce the rate of
workplace fatalities and serious injuries
by at least 25 per cent by 2020.
The Health and Safety Reform Bill is part
of Working Safer and is currently before
the Transport and Industrial Relations
Select Committee. The Bill will create
the new Health and Safety at Work
Act, replacing the Health and Safety in
Employment Act 1992.
The Government’s intention is that the
Bill will be passed in 2014, with the new
Act coming into force from 1 April 2015.
For those of us who work in an office
and wonder what all the fuss is about,
it’s worth putting New Zealand’s
shocking rates into perspective. Statistics
New Zealand information suggests we
lose 2.8 people to workplace accidents
per 100,000 people every year, while in
Australia (on a pro rata basis) it’s 2.1
and in the United Kingdom 0.6.
One of the key aspects of the reform,
which is closely modelled on the
Australian legislation, is the allocation of
duty and responsibility. It’s proposed that
the primary duty for ensuring workplace
health and safety will be allocated to
a ‘person conducting a business or
undertaking’, a PCBU.
A PCBU has immediate responsibilities,
insofar as is “reasonably practicable”, to
the health and safety of workers directly
engaged by them and others affected
by the work. This means responsibility
for health and safety is wider than just
directors and includes upstream suppliers
who will have obligations relating to
the things that are within their area
of influence, for example, designers,
manufacturers, importers and suppliers
of plant.
Another area of focus is directors' duties.
The proposed law will create a “positive
duty”, which means directors will be
required to take proactive steps to meet
the due diligence requirements.
This is in contrast to the current
legislation, which makes directors
liable for any failure of the company
to comply with the legislation, if they
have participated in, contributed to, or
acquiesced in that failure. The proposed
approach means directors and other
officers are only liable where they fail to
perform their due diligence duty.
The Ministry of Business, Innovation
and Employment says this positive duty
supports the broad framework of the
proposed legislation because directors
and senior management set the direction
and provide leadership in health and
safety for their organisation, including
making resource decisions.
Pike River is the catalyst for this
programme of change that aims to
reduce the rate of workplace fatalities
and serious injuries.
13 NZI CONNECT
Workplace death
and injury stats
75
Each year about
people are killed at work.
There are conservative
estimates of
600
to 900
deaths from work-related
diseases such as asbestosis
and various cancers.
Direct costs and the human
capital costs of occupational
illness and injury were
conservatively estimated at
$3.5 billion
in a 2010 cost-of-injury
estimate prepared for
the New Zealand Injury
Prevention Strategy.
1 in 10
Around
workers are harmed each
year, with about 200,000
claims being made to ACC.
Source: Working Safer A blueprint for
health and safety at work, page 5
NZI CONNECT 14
Safety
Procurement
In addition, the language of due
diligence is familiar and consistent with
their governance role and it clarifies that
health and safety is part of governance.
James Fletcher, MD of facilities
management firm OCS Limited, agrees.
Speaking at a Trans-Tasman Business
Circle event, he said health and safety
culture should be driven from the top.
Fletcher believes that New Zealand’s
business leaders need to educate
themselves about health and safety and
that skills in this area are equal to skills
in finance and strategy.
“In my opinion, business leaders need
to get personally involved in health
and safety and by this I mean getting
involved in inductions and attending
tool box talks, for example.
“Leaders also need to be involved in
process aspects of health and safety
so it’s clear why things are done in a
certain way. I’d like to see health and
safety conversations become as natural
as those about customer service.”
Where to get more information
Further information about the Working
Safer programme can be found on the
health and safety section of the Ministry
of Business, Innovation and Employment
website – www.mbie.govt.nz
If you’d like to know more about the
role of directors in health and safety,
the Ministry of Business, Innovation
and Employment and the Institute of
Directors have produced a guideline for
good governance practices in managing
health and safety risks.
The guideline, along with other
associated documents, is available for
download from the Institute of Directors
website – www.iod.org.nz/Publications/
Healthandsafety
The Business Leaders Forum on Health
and Safety has a focus on the role of
leaders in creating zero harm workplaces
and runs a number of programmes
and events across the country. More
information can be found at www.
zeroharm.org.nz NZI
New Zealand’s business leaders need to
educate themselves about health and
safety, and skills in this area are equal
to skills in finance and strategy.
Examples of PCBUs
These people might all be PCBUs if they have people working to them:
``the owner of a multi-tenanted shopping centre, the manager of the shopping centre, each of the businesses operating
from shops in the shopping centre and those carrying out ancillary activities such as cleaning, security and shopping
trolley collection
``the principal contractor on a construction site, sub-contractors engaged by the principal contractor, sub-contractors engaged
Creating value through partnerships
Connect
checks in
with IAG’s
procurement
team to
understand
more about the preferred
supplier arrangements and
the benefits they generate
for our mutual customers.
Putting the customer first and creating
value are two of the core principles that
underpin NZI’s approach to business.
And in respect of the latter, NZI is
supported by a dedicated procurement
team at IAG that is driven to optimise
value, for both the company and the
customer, from the various supply
relationships entered into.
“Providing customers with a trusted
service and quality products is our
bottom line, but we also strive to ensure
that the cost of insurance remains
affordable,” he says.
David Freeman, IAG Procurement
Manager, says that creating maximum
value by delivering innovative, costeffective, sustainable and ethical
products and services from IAG’s
extensive preferred supplier network
is integral to NZI’s business, and the
other brands in the IAG family.
And being a preferred supplier isn’t
a ‘title for life’. David says he and his
team use the ‘watch, listen and learn’
approach that means they frequently
assess how partnerships are tracking.
“Our supply partners are an extension
of our business and our goal is to work
closely with them to deliver long-term
value, with the customer at the centre.
“We have preferred suppliers in most
of our high-volume claims categories
covering everything from auto and
domestic glass, electrical appliances,
computer and mobile phone repairs,
hearing aids, eyewear, jewellery
valuation, carpet restoration and
replacement, as well as an extensive
motor vehicle repairer network.”
“We do this by ensuring that the services
and products we buy are cost effective,
reliable and represent value for money
for our customers.”
“Through our category management
process we are able to review how cost
effective our supplier arrangements are,
analyse changes in the marketplace and
reassess business requirements to ensure
we’re meeting our customer needs.
“We also encourage feedback from
our customers and valued intermediaries
to help us remain relevant in the
marketplace and create supplier
partnerships that consistently deliver
trusted services and products for the
long term.”NZI
David says that in most cases the claims
fulfilment suppliers deal directly with the
customer, which is why they’re carefully
selected, monitored and managed to
ensure customers receive a high quality
service and a customer experience that
delivers on the NZI brand.
by the sub-contractors (including self-employed contractors), along with the client engaging the principal contractor
``a service station owner, the service station operator (if different from the owner), the mechanic (if running a separate
business), the PCBU carrying out the supply of gas cylinders to the public at the service station and the operator
of an attached fast-food outlet.
Source: Working Safer A blueprint for health and safety at work, page 16
Disclaimer: the content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for
that purpose.
15 NZI CONNECT
Our supply partners are an extension
of our business and our goal is to work
closely with them to deliver long-term
value, with the customer at the centre.
NZI CONNECT 16
Sustainability
An easy way to
green your supply chain
Changing
of the guard
The Sustainable Business Network has launched a new online directory to help businesses
green their supply chain.
It’s easy to feel overwhelmed by the
many messages about sustainability
in the marketplace. For the most part,
businesses want to make informed
choices about the products and services
they source, but how do you cut
through the clutter and know you’re
dealing with an organisation that’s as
committed as you?
Enter the new Sustainable Business
Directory. It’s a ‘one stop shop’ to
make it easier to find more sustainable
products and services across New
Zealand. The directory was launched by
the Sustainable Business Network (SBN)
in May with about 500 listings (all SBN
members) and can be searched by key
word, geographical region or category.
CEO of the Sustainable Business
Network, Rachel Brown, says users can
choose from hundreds of providers to
quickly green their supply chain.
“From waste consultants to wineries,
IT to insurance, you can discover
products and services, certifications and
programme providers nationwide. It’s the
‘go-to’ place to source smart solutions.”
Rachel says the directory is a key part of
SBN’s plan to shift procurement onto a
path where sustainability plays a more
significant role.
“We encourage users of the directory
to ask sustainability-related questions of
the organisations listed.
“While they are at different stages
of their sustainability journey, and no
business is perfect, they have all shown
17 NZI CONNECT
a commitment to sustainability by
joining our network and we are actively
working with them.”
A robust supply chain is becoming
more important, not only because it’s
central to being a responsible business,
but also because of the impact it can
have on an organisation’s reputation.
Everyone knows about the Nike
‘sweat shop’ example, and it’s in this
environment that other large global
players such as Walmart, Tesco and
Marks and Spencer have taken action
to improve the sustainability of their
supply chains.
want to buy more ethical and
sustainable products and services. The
choices companies make about who
they source from – and the questions
they ask of those suppliers – can make
a huge difference to their overall social
impact and environmental footprint.”
Dewar says partnering with suppliers
that are making good progress towards
sustainability can accelerate a company’s
own journey while at the same time
supporting those businesses who share
the values of its staff and customers. NZI
Kath Dewar, Managing Director of
GoodSense Marketing, says both
consumers and commercial buyers
are increasingly concerned about the
social and environmental impact of
what they buy.
“Colmar Brunton research repeatedly
shows 87 per cent of New Zealanders
A robust supply chain is becoming
more important, not only because it’s
central to being a responsible business,
but also because of the impact it can
have on an organisation’s reputation.
Whatever your reason to improve your supply chain, the SBN Sustainable Business
Directory is an easy way to get started. Check it out for yourself at
www.sustainable.org.nz/sustainable-business-directory
As I head off on my annual holiday I leave the role of EGM NZI and when I return it’s as the
Chief Risk Officer, IAG New Zealand. While I’m not exactly leaving, this is a defining moment
for me as I have worked in the NZI business since 1971. While without question the world
has moved on a lot in that time, the fundamentals of what we do remain the same and I’m
enormously proud to be part of this industry. It remains reliant on great relationships and great
people, and I have been fortunate to have experienced an abundance of both.
As I reflect on my time in the role I’m proud of what we’ve achieved at NZI. Undoubtedly
some of the most challenging times in the role have been created by the events in Canterbury.
However, I’ve also witnessed people grow and step up to the challenges and I’ve been really
proud of the people at NZI. And having this acknowledged through winning top honours in our
industry in four out of the last six years has been the icing on the cake.
The years in my role as EGM NZI have been incredibly fulfilling. The decision to leave the
company I’ve had the privilege of leading for the past six years was not an easy one, but it’s
time for me to take on a new learning opportunity. I know, as I pass on guardianship to Travis
Atkinson, that I leave NZI in very safe and capable hands.
I’d like to take this opportunity to thank you for your support in my time leading NZI, and
I look forward to catching up with you again, albeit in a slightly different capacity.
Once again, thank you – it’s been a privilege.
Regards