Pilot ANZIIF Risk Management course impresses participants

As the cost-of-living crisis continues to hit both individual consumers and businesses, it's more important than ever for insurance brokers to understand the potential risks their clients could face and the appropriate insurance policies for them to be taking out.

"Insurance professionals can often focus purely on insurance products to manage risk,” says Lisa Caton, learning specialist at ANZIIF.

“Risk management is not only about what insurance products will be right for clients, it’s also about understanding that risk is natural and manageable. Not all risk is bad when an organisation has a risk mindset.”

Deniz Bekir, principal engineer and building consultant at Silver Wolf Projects adds that as a business, you don't buy insurance to make money. “You buy insurance to save you money at that time of loss," Bekir says.

The skills of risk management

Bekir and Caton were both involved in the development of a real world-based case study for ANZIIF’s pilot Insurance Risk Management Study Course.

The two-day facilitated course is a step up from ANZIIF’s Diploma of Broking and is designed to equip mid-senior level brokers and other professionals in the broking and insurance industry with practical skills in risk assessment and management.

"The proposed ANZIIF course would be a very beneficial tool for brokers who haven't had [risk management] experience in the real world," says Bekir.

Caton also points out that the course would be useful for a wide range of professionals.

"It's not just for brokers, it's for risk managers, underwriters, loss adjusters, service providers, lawyers, legal consultants and claim practitioners as well. We'll still cover a broad audience. It's just that we have run it as a pilot with brokers to start off with," she says.

A real-world approach

During the course, pilot attendees learned new techniques to identify risk through activities and discussions; plus they were trained to analyse information and assess risk to create strategies and solutions for clients as well as follow up with an evaluation of their effectiveness.

"It is important to accommodate adult learners and include activities, group discussions and a realistic case study,” says Caton.

“The case study is where participants can share and apply their existing knowledge, expertise and new learning from the course, while assessing a realistic client. This is what makes for an interactive course.”

ANZIIF worked with Bekir on the case study so attendees would be able to use it to understand potential risk scenarios in a real-life setting.

"If a broker understands a client’s business in terms of its risk profile, selling insurance policies becomes easier and more effective, because the broker can offer their [knowledge] to the insured and explain the benefits of having each specific kind of policy," says Bekir.

“But the course would also help other insurance professionals in their day-to-day businesses of understanding, managing and quantifying risk.”

Pilot course a success

Late last year, ANZIIF ran the pilot course in New Zealand and it was met with positive feedback from the group of brokers that attended.

"The Risk Management Program exceeded my expectations by providing a comprehensive understanding of risk management beyond insurance," said Josh Lis, commercial broker at Gallagher Insurance, on completion of the course.

"It broadened my perspective and equipped me with valuable knowledge to navigate future conversations around risk. Highly recommended for anyone seeking a holistic approach to risk management."

ANZIIF plans for the facilitated course to be an extra layer for brokers undertaking the Tier 1 Insurance Broking Compliance course, which satisfies the Australian Securities and Investments Commission’s (ASIC’S) Regulatory Guide 146 requirements, and the Diploma of Broking.

The proposed course provides attendees with expert knowledge of risk, which can then be used as a tool to help clients.

It offers an introduction to risk mindset, a session on international standard ISO 31000 to enhance understanding and application of international risk management standards, and the case study to allow students to experience a relevant hands-on scenario.

Learning outcomes

Participants are split into groups to review the case study and work together to identify, analyse, evaluate and treat risks, then record, report, monitor and communicate them to the client.

To successfully complete the course and gain benefits, participants must actively participate and contribute to the activities, group discussions and present case study findings.

These activities help attendees develop skills in comprehensively analysing risks — utilising various techniques to identify and categorise risks and learning effective methods for documenting and communicating identified risks.

The course also includes sessions on communication and consultation, which are vital for understanding risk and forming appropriate risk management strategies.

Gallagher Insurance commercial broker Nadia Scott also attended the pilot program last year.

"Throughout the two days I was impressed by the comprehensive content and engaging way it was presented and the opportunity to engage and present ourselves,” Scott says. “The facilitators... made complex concepts easy to grasp and their real-life examples brought the subject matter to life.”

Scott particularly liked the interactive nature of the workshop, which gave her the opportunity to participate in group discussions and a presentation.

"This hands-on approach allowed me to apply what I learned immediately, reinforcing my understanding," she says.

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