Hello
March 2015 represented the end of the financial year for many and so it is for AIB. The Board (About us) met on 30 April 2015 to review the previous year and set some objectives for the coming year. In a nutshell, the main objective is to ultimately have more Anglican Church entities and aligned entities participating in AIB programmes – in order to realise the benefits of economies of scale. Group insurance programmes differ from retail insurance in one critical factor. For similar policy offerings, it is not usually the base cost (risk premium) of the insurance that differs greatly between group and retail but it is the administrative savings that are key to savings on price. This can be achieved by removing much of the administration from the insurer. Leaving the insurers to concentrate on the pricing of risk and managing as much as possible of the administration is where we can derive the greatest benefits for members.
A common system, broker and consultant where the costs are spread across a larger group can only be beneficial in cost control.
Managing our own claims via our Deductible Funding Pool has again proved worthwhile. By retaining part of the payments destined for the insurer and establishing this retention, AIB have created a significant tool for terms and conditions negotiations with insurers and an ability to manage our own claims. More information can be found here – Deductible Funding Pool
The main project we have embarked on is bringing together our members and the other members of AllChurches under a single administrative system. It is anticipated that centralising this information will represent a significant tool in negotiations with insurers, provide administrative consistency and savings and provide a real time ability for members to review their information.
Motor Vehicle and Liability Renewals – 1 April
I have previously written to members about the Liability renewal. While we were remarketing the Liability programme we were also renewing our Motor Vehicle programme. Marsh (our broker) have significant relationships with Lumley General and were able to advise that Lumley’s, who are a specialist motor vehicle insurance provider, remained best positioned to provide services to AIB’s members. One of the terms and conditions within this policy is a profit share, this results in members receiving a premium refund in the good years. In years where we have more than expected claims we do not receive a profit share and in some years a premium increase will be applied due to adverse claims experience. This is the case this year and a small premium increase has been applied. While the premiums do reflect our collective risk they are still representative of a significant discount over retail premiums on most of our vehicles.
Patron
AIB is a registered charity (CC40696) and like many charities we have a patron. One of the reasons for having a patron is to have someone who physically represents the purpose and objectives of the charity. As you can read here (Patron) Robin Nairn was a catalyst for the establishment of AIB and remains conversant, interested and involved in AIB activities. AIB is extremely fortunate to have a person of such high standards and noble purpose as it’s patron.
Loss Prevention
We have recently made available a loss prevention module on our website – Risk Management/ Loss Prevention. This contains information and checklists in regard to best practices surrounding the safety of members assets. Members can prevent some losses by adhering to good practices and this assists in keeping the overall cost of insurance down.
Safeguarding Property
AIB recommends SNAP.
SNAP (Serial Number Action Partnership) is an initiative of the New Zealand Police, aiming to prevent New Zealand burglary and property offending, and make it harder for criminals to sell stolen goods in New Zealand. The initiative helps to protect property in a number of ways. The SNAP website allows you to enter and maintain details of all of your important possessions or assets. You can then access this asset list from anywhere, anytime. If your items are stolen, you can instantly retrieve your asset list details, and forward these on to the Police and AIB.
Kind Regards, Dave
Dave Peters, Executive Director