expand on it into other categories.â Reflecting on 2016, Jared King says AIG is currently undergoing significant trans
insurancebusinessonline.com.au Issue 5.6
THE YEAR AHEAD
Industry leaders on what they expect in 2017
UNDERSTANDING YOUR LIABILITY An underwriter discusses dangerous exposures on the liability front
GETTING TECHIE The state of play in insurtech
A WINNING EQUATION XL Catlin’s Robin Johnson on the insurer’s post-merger growth NCIES E G A G N I T I NDERWR d most in 2016 U N O S R E resse BROK ncies that imp e age Recognising th
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FEATURES
THE YEAR AHEAD
THE YEAR AHEAD Tough times persisted in 2016 in general insurance both at home and across the globe, but there were also many achievements to be celebrated. Ten industry leaders reflect on this year and share their thoughts on what lies ahead
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ANDREW SPURR Head of casualty, Australia BERKSHIRE HATHAWAY SPECIALTY INSURANCE
While its name has been synonymous with insurance for some time, Berkshire Hathaway Specialty Insurance (BHSI) is still a new force in the Australian marketplace. It was April 2015 when it first opened its doors in Sydney, its Australian presence quickly expanding to Melbourne and Brisbane. Andrew Spurr has been on Chris Colahan’s leadership team since day one. Talking to Insurance Business about 2016, Spurr mentions BHSI’s gold medal win for turnaround times on new business quotes in our Brokers on Insurers survey. “One of the key drivers for the BHSI model is service and responsiveness,” Spurr says. “To attain [the gold medal] in the first year, or even within the first year, is … certainly an exceptional acknowledgement. Our entire team is committed to maintaining that for next year and [to] expand on it into other categories.”
JARED KING Head of client and broker engagement – Australasia AIG
Reflecting on 2016, Jared King says AIG is currently undergoing significant transformation, in the process creating a “leaner, more profitable and focused” organisation.
Speaking to Insurance Business last year, global president and CEO Peter Eastwood talked about the P&C insurer’s long-term strategy for building its business in Australia, emphasising that everything done within the organisation has a long-term perspective around it. “We’ve pretty much stuck to our guns with brokers and customers and supported that strategy,” Spurr says. Turning conversation to times ahead, like many of his industry colleagues, Spurr expects underwriting profitability to be the biggest challenge for the industry in Australia in 2017. “I’ve been in this for a while and, every year, I keep thinking that pricing can’t get lower. But every year, it seems to astound us because it does … certainly, with BHSI, knowing when to walk away is probably the most critical aspect for longevity and ultimate profitability.” Spurr will be keeping an eye on trends in claims handling and claims management, anticipating that those who excel on this front will reap the rewards. “I believe that those insurers that do provide exceptional underwriting and claims service should thrive and obviously make it compelling for clients to maintain their business.” “Our focus and execution in Australia has predominantly been on underwriting improvement that is matching pricing with risk exposure,” he says. “We also announced two further managing general agent agreements with Nautilus Marine and MECON … this is breaking ground for AIG in Australia, and we are really excited and encouraged by the level of professionalism and leadership of these underwriting agencies.” In 2017, King says AIG will continue to focus on its intermediated distribution sources and partnerships as it expands its footprint into SME and middle-market commercial businesses. “We have some exciting opportunities on the horizon and the key for us will be to execute these in a timely manner, whilst improving processes and efficiency, and above all provide a level of claims service that is valued by brokers and clients alike.” Turning discussion to challenges, King says, “I think the industry will find it challenging to
achieve financial targets with increasing shareholder expectations of acceptable profit margins accompanied by sustainable growth and reduction in management expenses.” King believes organisations that make innovation a business priority, while recognising new entrants or disruptors, will possibly set themselves up for greater success down the track. Still on challenges, King says, “I believe the pace at which the digital world is moving … is challenging us all to be flexible in our thinking, and what the world offers tomorrow will be very different to that today. Whilst most of what we see so far might have more relevance to consumer buyers, the evolution of sharing economies may [impact] how SME business is traded in the not too distant future.” He adds, “Regrettably, cyber-risk threats and exposures to consumers and businesses alike will continue, so there is an increasing need for awareness, resilience and a strategic risk management plan.”
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