In conversation with Kelvin Hui, Senior Claims Handler, Financial Lines & Casualty, we speak about his role, Arch’s claims offering, and the challenges in the current market.
Can you start by telling us about your role?
I’ve been at Arch for just over three months now and have extensive experience in claims handling and advocacy both on the insurer and broker side. In my role as a Senior Claims Handler within the Third Party Claims team, my primary responsibility is to continue to enhance Arch Australia’s claims service and offering across our Directors & Officers (D&O), Management Liability (ML) and Cyber lines of business.
How does Arch look to differentiate its offering in this market?
Our claims division is closely integrated with our underwriting teams, which allows us to provide high levels of end-to-end service, from the submission of a risk through to the handling of a claim. The regular communication we have with our underwriters enables us to support them on coverage matters and provide insights on latest claims trends, which ultimately helps us to provide the best solutions for our customers and resolve any issues promptly. Our claims service proposition is at the heart of what we do. We have a customer-focused approach and strive to find effective and informed solutions in a collaborative and responsive way.
How would you summarise the current market dynamics in your lines of business and what are some of the drivers?
We’re operating in a competitive environment, having seen several new capacity providers entering the Australian market, particularly from Lloyd’s. However, with the current economic environment creating more challenging conditions for organisations, we may start to see the market harden as historically economic downturns correlate with an increased frequency of claims, especially in the crime and Employment Practices Liability (EPL) sectors. Alongside this, we’re seeing an overall rise in legal costs, which is adding pressure to the industry as a whole. Navigating this landscape will require proactive strategies and clear communication among all stakeholders to ensure our clients receive the most appropriate solutions for their evolving risks.
What are some of the front-of-mind issues for your clients? What do you see as the biggest risks facing them in the next few years?
The combination of increased regulation and challenging economic conditions is likely to have an impact on claims activity across the board. In the Management Liability space, for example, there are risks stemming from the evolving regulatory landscape surrounding artificial intelligence (AI) and data privacy in Australia, which is putting more stringent rules on organisations. Additionally, there is an increasing amount of proposed regulation on cyber security which will require further reporting of cyber security incidents by entities to the authorities, including mandatory reporting of ransom payments for organisations with a revenue of over AUD3m. There will likely be a teething period for entities as they come to grips with the regulation, which may increase the risk of inadvertent breaches.
What would your dream job outside of insurance be?
Running a pub! I would love to pull beers and chat with patrons all day.
Tell me something about yourself that others might not know?
I love trivia and have been on two game shows (without much success, sadly).