KSS July eKourier 2023

FEATURE

CUSTOMER GOODS INSURANCE

brokerage firm called Gibson Knight. This acquisition provided Howden with a platform to enter the Australian market and offer its risk management services to Australian businesses. With the acquisition, Howden gained a team of experienced professionals and a network of clients in Australia. Today, Howden Risk Services is recognised as one of the leading Insurance Brokers in Australia, serving clients from various industries. The company's focus remains on providing innovative risk management solutions tailored to the specific needs of its clients while leveraging its global network and expertise. After a long partnership with AON, we are very excited to be associated with a new partner in Howden. As these changes were unfolding, we received the big announcement that QBE will no longer provide Customer Goods Insurance to the Self Storage Industry. This is significant for the industry as I believe that many smaller operators have made the decision to no longer offer insurance based on the changes to legislation only, making it too onerous to sell. Insurance is an important part of our offering; it provides our customers with peace of mind that their goods are covered in storage and provides an income for the business that goes to offsetting the cost of insurance. QBE’s exit has occurred sooner than expected. We have however been on a journey to move away from QBE for our Customer Goods Insurance. This move will result in a new look insurance program for KSS planned to take effect October 2023.

outcome of a royal commission into the financial sector, designed to protect consumers. These developments prompted us to go to market to discover what alterna- tives were available in the market for insurance. We commenced our discovery back in 2020, speaking with several insurance brokers reaching a final decision and change to Howden Risk Services on Friday 9th June 2023. Insurance is an important part of our offering; it provides our customers with peace of mind that their goods are covered in storage and provides an income for the business that goes to offsetting the cost of insurance Howden is an international insurance brokerage firm that offers a wide range of risk management and insurance solutions to businesses and individuals. Howden Risk Services is a division of Howden Group Holdings, founded back in 1994 by a group of insurance profes - sionals in the United Kingdom. Over the years, Howden expanded its operations and developed expertise in various industry sectors, including energy, construction, marine, and aviation. ‘ ‘

Made available almost solely by AON insurance brokers and QBE insurance. In recent times there have been other providers adopted into the industry. Regardless AON have been a prominent partner in the self storage industry, and a long-standing service member of the Self Storage Associa- tion. That partnership has provided what we know as our Customer Goods Insurance for our storage customers and extends to property, professional and public liability insurance and more. Over recent years the insurance landscape in Self Storage has been shifting, starting in New Zealand back in 2019 when QBE withdrew from customer Goods Insurance due to new laws that were introduced by the New Zealand Government in relation to financial services. This decision was a strong signal that something similar could happen in Australia. A little before that time the insurance market was tightening due to a number of large natural disasters around the globe, Covid and the rise in class actions against businesses. These circumstances influenced a significant rise in premiums for insurance. In addition to these influences the Australian Securities & Investments Commission (ASIC) introduced new laws in October 2021 for the selling of insurance as an add on service, the Customer Goods Insurance has been part of the self storage offering for well over two decades.

Darren Marshall Chief Operating Officer

In 2003, Howden established its presence in Australia through the acquisition of a local insurance

9 Kennards Kourier July 2023