Inside Vero’s solution-focused strategy

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Vero has undergone a significant transformation in response to broker feedback, leading to its recognition as a top insurer

“WE JUST need you to answer your phones.” This feedback is what Vero’s chief executive for commercial insurance, Michael Miller, heard from brokers when he embarked on a listening tour across Australia three years ago. While the critique was directed at the entire large insurer sector, Vero took it as an opportunity to lead the way in addressing these concerns. The moment sparked a comprehensive transformation that has fundamentally altered how Vero approaches commercial insurance. The results speak loudly: Vero recently claimed Insurer of the Year honours and topped numerous category rankings in the annual Brokers on Insurers survey. Vero realised that brokers’ frustrations stemmed from a deeper disconnect between large insurers and the needs of today’s intermediaries. It wasn’t just a matter of being reachable; it was about being responsive, relevant and genuinely useful in a market growing more fragmented by the day.

Vero provides quality business insurance products to help protect Australian businesses. Because Vero believes that impartial specialist advice is paramount when it comes to selecting insurance, it offers its products through insurance brokers. With over 190 years of experience in providing insurance, Vero delivers an award-winning claims service so brokers can be confident in recommending Vero to clients. Vero provides brokers with access to one of the largest risk engineering teams in Australia, as well as local business development managers and underwriting and claims teams who bring expertise, intelligence and experience to their relationships.

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A leap in reputation

FY23

“We want to be known as problem solvers, rather than just as risk acceptors”

David Hoffmann, Vero

And so began the start of a top-to-bottom overhaul: removing referral bottlenecks, rethinking small business underwriting, launching specialty lines to help solve more complex risks, and empowering state-based decision-making to build local broker trust. While a less visionary company may have settled for answering the phone more often, Vero has ridden a wave of internal change that has turned around broker impressions and propelled it to the industry’s top accolade – and it isn’t stopping there.

The insurance market’s transition towards more specialist underwriting agencies indicates a wider industry trend where brokers are favouring specialised providers over generic solutions. As markets hardened and risk appetites contracted, brokers found themselves shopping around multiple providers to piece together coverage for their clients. “There’s no doubt at all that the large insurers have been losing some market share to the niche insurers and underwriting

agencies,” says David Hoffmann, executive general manager for commercial at Vero. This fragmentation created opportunities for smaller players who could offer personalised service and appetite for risks that larger insurers routinely declined. However, it also created headaches for brokers managing multiple relationships and clients concerned about the long-term stability of their coverage providers. Vero’s response has been to position itself as what Hoffmann calls “a niche insurer with a big advantage” – combining the specialised service approach of smaller players with the financial stability and comprehensive claims capability that only large insurers can provide.

Vero’s most ambitious initiative involves expanding its risk appetite through Vero Specialty Lines (VSL), a dedicated division focused on developing expertise in specific market segments. The strategy calls for launching three new products or segments annually, building towards 12–13 specialised offerings over the next three to four years. The first wave included a significantly expanded engineering product where Vero already held market leadership but broadened its coverage to compete on expertise rather than price. The second focused on high-hazard property risks – a segment where Vero had historically declined 70% of opportunities because low-hazard business was easier to write. “We’ve now set up the team specifically to do this,” Hoffmann says. “They’re looking for these segments and the brokers that have this business, and how we actually take a proactive approach to that.” The third product launch targeted liability coverage, which exceeded expectations within two months of launch. Vero has three additional products in development for the 2026 financial year, though the company hasn’t disclosed specific details.

“We’ve got the foundations set. It’s now just how we leverage that to take us up to the next level”

Laura Broughton, Vero

Supporting these product initiatives required structural changes to Vero’s organisation. The company shifted from a traditional product-first focus to a state-first approach, establishing substantial teams in each Australian state with appropriate authority levels to make decisions locally. “Australia is a very parochial country, state by state, and we want people to be on the ground locally, rather than having to deal centrally with insurers who they don’t necessarily know,” Hoffmann explains. This decentralisation addresses a common broker complaint about dealing with centralised decision-makers who lack local market knowledge or sufficient authority to approve complex arrangements. Vero overlays this state-based structure with product specialists who provide technical expertise while maintaining local relationship management.

Broker training is one area where many insurers saw their scores slide in the awards survey. The top-performing insurers stood out by investing in their teams and empowering staff to make better, faster and more accurate decisions, as Vero did with its state-first focus. “It means a massive amount,” Hoffmann says of the recognition. “Three years ago, we came from a very low base, and to actually start winning awards around our service … is a great recognition for every person in the team.” For Broughton, the award validates the multiyear effort to modernise Vero’s approach. “What I love about those areas that we scored top marks in is it really shows the breadth of what we’ve been putting ourselves into,” she says. “It’s not just one area.”

Illuminated Light Bulb Emerging Within a Labyrinth Symbolizing Bright Ideas

The great unbundling

Specialty lines strategy

Published 14 Jul 2025

FY24

FY25

Year-to-date avg score as at May 2025

Note: NPS (Net Promoter Score) is a customer-success metric measuring loyalty, satisfaction and sentiment towards an organisation

Source: Insurance Business

broker communication, training and development product range online platforms commission structure

Vero ranked 1st for:

Vero wins top honours in 2025 Brokers on Insurers survey

BDM support claims turnaround times

Vero ranked 2nd for:

Overall survey winner: Vero

Laura Broughton, head of platforms at Vero, discovered that the company’s small business division was processing 34,000 new business referrals annually – requiring underwriter review and broker consultation. “The data told us that we bound barely 4% of those 34,000,” Broughton says. This prompted a radical shift in approach. Vero implemented a simple yes-or-no system for small business risks, raising underwriting parameters and introducing more detailed questions to enable straight-through processing for approximately 70% of submissions. This change freed up underwriters from clearing referral volumes, allowing them to focus on genuinely complex cases where their expertise added value.

The referral revelation

Market recognition

Structural reorganisation

Vero’s technology investments have focused on enabling human expertise rather than replacing it. The company’s modern front-end platform, delivered two years ago, automates routine transactions for SME packages and commercial motor insurance while providing underwriters with better data for complex decisions. “You’ve got the art and the science, and underwriting is a combination of both,” Hoffmann says. “You can’t just have the science and use models, and you can’t just purely have underwriters making it up as they go.” The technology extends beyond underwriting to claims processing, where Vero has invested heavily in systems that enable claims staff to quickly assess situations and ensure consistent outcomes. This focus on claims capability reflects the company’s recognition that insurance is ultimately judged when customers need to make claims. “We sell an intangible product,” Broughton says. “No one worries about claims until you have a claim.”

Technology as enabler

The transformation’s success is evident in Vero’s recent Insurer of the Year award recognition, particularly given that the company was starting from a position of high broker frustration. Before implementing the changes, “we were, at best case, middle of the pack”, Hoffmann admits. The range of areas in which Vero scored top marks – from product range to broker training to online platforms – demonstrates the comprehensive nature of its overhaul.

Vero realises that maintaining its newfound position requires continuous evolution, particularly as competitors try to match its success. The company has committed to a three-year roadmap that extends well beyond its current achievements, signalling that this transformation represents a permanent strategic shift rather than a temporary market response. “We don’t just want to win this one year,” Broughton says. “We want to win awards year on year and show that continuity. Rather than having the pack catch up, how do we stay ahead of them?” This commitment to sustained investment distinguishes Vero’s approach from typical insurance market cycles, where insurers often retreat to conservative positions after periods of expansion. The company’s three-year product development pipeline for Vero Specialty Lines, combined with ongoing technology investments and artificial intelligence integration, demonstrates a long-term vision that extends beyond immediate market opportunities. Broughton’s focus for the next year involves optimising the foundation that Vero has built, using data analytics to fine-tune pricing and underwriting approaches while exploring AI applications to improve consistency and speed of decision-making. “We’ve got the foundations set,” Broughton says. “It’s now just how we leverage that to take us up to the next level.” The broader implications for Australia’s commercial insurance sector are significant. Vero’s success in combining large insurer stability with niche player agility challenges the conventional wisdom that brokers must choose between comprehensive coverage and specialised service. If other large insurers attempt to replicate Vero’s model, the entire sector could shift towards more broker-centric approaches. However, Vero’s transformation required substantial organisational changes – from restructuring state-based teams to completely reimagining underwriting processes – that competitors may find difficult to replicate without similar executive commitment and cultural change. Vero’s strategic discipline is evident in its decision to move away from inefficient practices such as processing thousands of low-conversion referrals. “We want to be known as problem solvers, rather than just as risk acceptors,” Hoffmann says. The transformation’s sustainability will ultimately depend on Vero’s ability to execute its ambitious expansion plans while maintaining the service standards that earned its recent recognition. But the company’s comprehensive approach to change, spanning technology, culture, structure and strategy, suggests this represents a permanent repositioning rather than a temporary market adjustment. “We’ve come a long way in a short period of time,” says Hoffmann. “We need to make sure we continually challenge ourselves to offer the service that the brokers are looking for and continue to broaden our appetite – whether that’s in segments or new products – and stay ahead of our competitors.”

The path forward

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Disclaimer: This article is sponsored by Vero Insurance. The information is intended to be of a general nature only. Subject to any rights you may have under any law, Vero Insurance and its related bodies corporate do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon it – please make your own enquiries. Insurance issued by AAI Limited ABN 48 005 297 807 trading as Vero Insurance (‘Vero’). Read the relevant Product Disclosure Statement and Policy Wording before buying this insurance. Go to vero.com.au for a copy. Target Market Determination also available. Limits, conditions and exclusions apply.

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