YIPs Members

A day in the life of a Barry Nilsson insurance lawyer

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Meet Beth Royan, an Associate in Barry Nilsson’s (BN) Insurance & Health team. Beth commenced her legal career at BN in Brisbane after completing the firm’s graduate program in July 2022. She has practiced exclusively in insurance law since then, acting for a range of clients in liability matters including personal injury, property damage and products liability. 

We asked Beth about her journey in the insurance law field, her decision to join BN, and the unexpected aspects of working in insurance law.

What did you choose to work at BN?

I first started working at BN through its vacation clerk and then graduate program. This allowed me to try some different areas of law and different areas of insurance before settling in my current liability team about two years ago. Since then, I have learned and continue to learn so much about insurance law and developed useful skills including advocacy, advice writing, negotiation and file management. The mentoring I have received has been invaluable and a huge part of why I chose to work at BN.

During my time at BN, I have had the opportunity to give back to the community through various pro bono work. This is very important to me because, in addition to helping those in need, I believe it provides a more well-rounded legal experience for me. I have undertaken a secondment with Lawright Queensland’s State Court office. This secondment was a great experience. I felt that I was able to use skills in taking instructions and triaging matters to assist clients in need to achieve good outcomes. I have also completed various clinics with QLD Refugee and Immigration Legal Service and NSW Refugee Advice and Casework Service.

What skills do you think are the most important for success in insurance law?

One of the most important skills in the insurance space is empathy. The expectation when people purchase insurance is that their financial and reputational interests are looked after at claim time. Insurance lawyers and professionals represent our clients as well as the wider insurance law industry. I try to approach matters in an empathetic manner with a problem-solving lens. In the personal injury space for example, there are often times when someone has been genuinely injured through no fault of their own. Throughout the pre-litigation and litigation stages, particularly during the alternative dispute resolution process where we are faced with the injured person, I think it’s important to treat the injured person and opposing solicitors in a fair, considerate and respectful manner. It’s very possible to do this and still successfully negotiate settlements with good commercial outcomes for my clients.

What’s something about a career in insurance law that might surprise people?

The range of matters we see and types of tasks we undertake day to day might surprise people. It certainly surprised me when I started insurance law. One day I may be meeting with clients or acting in a settlement conference. The next day I might be traveling to a site to inspect a location where an incident has occurred. In the midst of this, I may have to read a medico-legal report from an expert orthopaedic surgeon or an expert report from an engineer.  

How do you maintain work/life balance with the demands of a young insurance professional?

Maintaining a work/life balance can be difficult for young insurance professionals and any young person in any industry for that matter. What works best for me is taking time throughout the day to deliberately set aside time to stop thinking about work for a while. I enjoy going out for coffee or lunch with friends throughout the week. I also try to make sure I go for a walk in the morning before work or in the evening after work to reset and wind down. BN’s work from home policy also helps with achieving work/life balance as I can more easily plan catch ups and exercise on days I’m working from home as I don’t have to spend time commuting.

Weather and Parametric cover – do you know the facts?

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I’m sure we’ve all heard about parametric products by now, but we’re too afraid to talk about how to really use them. In this article I’ll discuss what parametric products are, and why, when, where, and how we are supposed use them.

The broad application of parametric products in Australia remain in its infancy but these niche products are finding their place amongst an increasingly restrictive traditional insurance market. Parametric products address gaps in traditional cover, exceptions to exclusions, and offer a bespoke cover solution that can be applied to almost any weather situation. A potential client just needs to demonstrate a correlation between a weather event, and the potential degree of financial loss they will incur. Structures can then be tailored to suit client needs.

In 2017, 73 companies on the S&P publicly disclosed a loss of financial earnings that were directly related to weather events.

Weather affects all industries differently. Open conversations need to be held to better understand how weather events can be managed with a parametric solution.

Typical weather perils businesses consider for parametric products include

  • Rainfall (Excess or Deficit)
  • Temperature (Excess or Deficit)
  • Windspeed and direction
  • Flood
  • Earthquake
  • Fire
  • … and any other weather peril that has a reliable data source.

Parametric products look at a known history of data to determine a price, rather than a loss history.

The products then trigger on an agreed set of circumstances that correlate to a payout. Although each product is tailored, the concept doesn’t usually require physical proof of an indemnity loss to establish a basis for a claim. The measured metric either responds to the policy, or it doesn’t.

When designing a parametric product there are two expressions that sum up how best to apply them:

  • “The inevitable is unaffordable.”
  • “Parametric products are designed to complement, not replace traditional insurance products.”

A tailored parametric solution should be designed to protect against the unexpected like any insurance product. However, unlike a traditional insurance product you would be looking to smooth cash flow with a quick settlement – sometimes a delayed traditional settlement is just too late.

The higher the probability an event will occur, the more expensive they become. Also, being ‘non-indemnity based’, data isn’t always perfect, so it’s not a wise risk strategy to put all your eggs in one basket. Remember – A parametric product can run concurrently with a traditional product because a parametric policy insures independent weather data. A traditional product needs to quantify an incurred loss. They remain independent.

Let’s take a look at the following scenario.

Imagine your business is an ice cream stand at the beach. Typically, hot summer weather would drive the sale of ice cream. If the average daily temperature was 25°C or more, then sales begin to respond…. Let’s say you average an income of $100/day.

If the temperature fell below 20°C, fewer people would go to the beach, and naturally, not likely feel the need to buy an ice cream. This may happen on occasion – especially with rainy or overcast conditions. Excessive cold days would really begin to harm your income.

A parametric product could be designed to take the average number of days the temperature fell below 20°C and set this as a trigger – let’s say this is 5 days of cool temperatures. The policy period could be tailored just to cover the summer months (November to the end of February).

After 5 days of sub 20°C temperature are recorded, an amount of $100/ day could be paid for each day under 20°C to offset the business interruption caused by unexpected cool weather (up to the policy limit).

If you follow this, the concept can then be applied to any business / industry, and any weather peril that you can imagine.

In summary, a few take away points when applying parametric products:

  • What: A direct correlation of weather data to a financial loss.
  • Why: Fast payment, self managed claims service.
  • When: Wherever a weather event can be attributed to the cause of a financial loss, and reliable data can be measured.
  • Where: To address shortfalls in traditional insurance coverage, or design a bespoke financial solution that has not been addressed.
  • How: Demonstrate the weather conditions that correlate with your financial loss, and a bespoke structure can be formed to suit your needs.

For more information you can view Liberty’s Weather Index Product Profile here.

Bill Hardie joined Liberty in January 2018 and is based in the Brisbane office. He is a specialist in Weather and Parametric insurance and the companies and industries that can benefit from it. View Bill’s profile here

Find out more and contact Bill here: bill.hardie@libertyglobalgroup.com

Cyber insurance in Australia – what do your clients need to be made aware of and some helpful tips

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October is Cyber Security Awareness Month, a time for the business community to reflect on the ever-evolving digital landscape and the importance of safeguarding their digital assets; for we insurance professionals, it’s an opportunity to raise awareness about this issue within our networks. 

In Australia, the adoption of cyber insurance by businesses has been comparably low to other developed economies such as the United States and Europe, with the Insurance Council of Australia estimating that only about 20% of SMEs and 35-70% of larger businesses have standalone cyber insurance. While there is no definitive reason why the take up is lower in our region, historical contributing factors may include:

  • Softer privacy regulations and enforcement comparative to other jurisdictions
  • Low risk of data breach litigation and class actions due to difficulties in demonstrating the incurring of loss
  • Elements of cyber cover being included in other insurance policies e.g silent cyber coverage and cyber extensions
  • Low cyber-attack activity 

These factors are quickly disappearing:

  • The Australian Federal government recent release of their responses to the Privacy Act Review Report has signalled that change is on the horizon. With new obligations for collecting personal information, the potential removal of exemption of businesses with a turnover less than $3 million and more power is provided to the regulators.
  • Several class actions are on foot, post large public data breaches.
  • Insurers are being questioned by regulators in respect of their cyber exposures across their non-cyber stand-alone portfolios: such focus from the UK’s Prudential Regulation Authority has resulted in the Lloyds of London mandating that “all policies provide clarity regarding cyber coverage by either excluding or providing affirmative coverage”.
  • Australia is now constantly in the top 10 countries for ransomware attacks upon businesses.

Insurance brokers play a pivotal role in not just helping their clients secure appropriate cyber insurance coverage but also by providing general cyber education and risk management advice. An insurance broker that provides guidance to their clients can achieve much better results than those that just ask for an application to be completed.

Here are some essential tips to ensure your clients’ cybersecurity measures are up to scratch before submitting applications to insurers.

  • Multifactor Authentication (MFA) should be enabled. MFA on email and on computer remote access is a major roadblock for cyber criminals and is a minimum requirement for cover for most insurers. We have written a whitepaper on MFA and you can read it here. 
  • Backup company information regularly to offline external storage devices or dedicated cloud backup solutions. The ability to restore from backups is an essential component of business continuity planning (BCP) and for meeting Recovery Time Objectives (RTO’s) and must be separated from the clients’ computer network to avoid the compromise of the network and the backups at the same time.
  • Cyber Awareness Training should be conducted for all staff. This is the best defence against email scams and malware: giving employees the capability to detect suspicious activity.

When presenting cyber insurance quotations to clients, it is important that insurance brokers explain the benefits to clients which are in addition to the insurance coverage that they receive from reputable insurers, including:

  • Access to experienced cyber claims staff who have handled numerous cyber incidents
  • Access to insurer vendor panels where the vendors are tried and tested with pre-agreed competitive rates
  • Insurers have a mutual interest to minimise the impact to their insureds’ business
  • Insurers have the capability to commence recovery actions from parties that have contributed to the cyber incident and if successful can lower the amounts claimed under the policy and potentially return any deductable payments incurred by the insured thereby resulting in a better claims history.

NT Insurance Conference set to top all records

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2023 was a year of renewal for the NT Insurance Conference.

With substantial revisions to the sponsor package, a laser focus on relevant content and a technology refresh that includes an automated Digital ID for all delegates, Travis Saxby, President of YIPs NT is confident that 2023 is shaping up to be the best conference to date.

A true one of a kind, the NT Insurance Conference is one of the only insurance education conferences in the world that is provided completely free-of-charge to anyone in the insurance industry or related fields.

Travis was quick to point out that it is the generous support of sponsors that make this a reality.

“Without the generous support of all of our sponsors, in particular our Diamond Sponsor, TIO and our Platinum Sponsors, eReports, Gallagher, Gallagher Bassett, GT Insurance and Johns Lyng Group, all of whom have been with us for many years, we could not provide this premier education event, free-of-charge to the Industry”. https://www.ntconf.com.au/sponsors-2023/

However it is not all work and no play. The Conference runs a jam packed networking and social program, including a welcome function, a new conference wrap-up bar and a Black Tie Gala Dinner and Awards Night, where the best and brightest are recognised for their contribution to the Industry.

The Northern Territory Insurance Conference runs from 18-20 October 2023

For more info, check out https://ntconf.com.au/

Networking on the Greens: How Golf Drives Success in the Australian Insurance Industry

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The Australian insurance industry is a dynamic field where building a solid professional network is crucial for career development and success. As someone who transitioned from the golf industry to insurance, I discovered the power of golf in forging connections and facilitating business. In this article, I will explore the synergy between golf and insurance and how a game of golf provides an ideal environment for building meaningful relationships and driving business growth.

During my seven years in golf, I was introduced to the insurance industry through corporate golf events and developed relationships with current insurance professionals. This eventually led to a position as an SME underwriter and shortly after I joined AIG.

I’m really proud to work for a company committed to promoting gender equality and is as passionate about golf as I am. AIG recently extended its partnership with the R&A as the title sponsor of the AIG Women’s Open until 2030 highlighting its dedication to global issues such as gender equity and gender pay equity. Further to this, AIG Australia has launched Women’s Golf Clinics for staff, recognising the benefit of acquiring or refining a new skill like golf can have in building confidence and broadening professional networks.

I have identified three ways in which playing golf can benefit your insurance career:

1. Where Business Meets Leisure

Playing golf is more than just a game; it provides an opportunity to engage in meaningful conversations beyond the sport itself. During a round of golf, people can discuss business matters, build relationships, and gain valuable insights into industry trends. The camaraderie fostered by golf’s shared passion creates a level playing field where genuine relationships can flourish, regardless of job titles or hierarchies.

Insurance is a fast-paced service-based sector that relies on building strong relationships with clients. Golf, on the other hand, offers a more relaxed yet professional environment to connect with clients, brokers, and colleagues while closing crucial deals outside the office. By sealing a deal on the fairway, navigating the complexities of insurance contracts becomes easier.

2. Enhancing Professional Growth Through Golf

Golf is a sport that requires physical and mental fitness. As an insurance professional, I found that we often face high-pressure situations that demand intense concentration. Playing golf can help sharpen these skills through its requirement for precise shot-making and strategic thinking. This can translate to better decision-making and problem-solving in the workplace. It can also reduce stress and promote well-being, making it essential for maintaining a healthy work-life balance.

3. Golf and Business Synergy

Work demands in insurance can be relentless. That’s why scheduled golf outings with clients, colleagues, or industry peers serve as a much-needed break to recharge and return to work with renewed vigour. It can also strengthen professional relationships, fostering trust and loyalty. When clients feel valued beyond transactions, they are more likely to remain loyal and refer others, ultimately driving business growth. Additionally, golf is a sport that thrives on goal setting, which can translate to the insurance profession. 

The intersection of golf and the insurance industry is where business finds its perfect swing. Golf courses offer more than just an opportunity to practice your putt; they are fertile grounds for building connections, establishing trust, and doing business that transcends the confines of the office. So, grab your clubs, embrace the greens, and tee up your success in the Australian insurance industry.

About AIG

American International Group, Inc. (AIG) is a leading global insurance organization. AIG member companies provide insurance solutions that help businesses and individuals in approximately 70 countries and jurisdictions protect their assets and manage risks. For additional information, visit www.aig.com. AIG common stock is listed on the New York Stock Exchange.

AIG is the marketing name for the worldwide operations of American International Group, Inc. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries and jurisdictions, and coverage is subject to underwriting requirements and actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.

Beat burnout with these five work-life balance tips!

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The line between work and home has become increasingly blurred, with many of us spending long hours in front of our computers and taking work home with us or working late into the night. Many people struggle to create clear boundaries in their personal and work lives resulting in increased stress levels, burnout, feelings of overwhelm and a decline in overall well-being. However, I believe it doesn’t have to be this way, with a little effort and some simple strategies you can reclaim your work-life balance and start enjoying the best of both worlds.

Here are 5 savvy tips to help you reclaim work-life balance.

Tip 1. Set Crystal Clear Boundaries

One of the biggest challenges of balancing work and life is the lack of clear boundaries. It can be difficult to know when to switch off from work and start focusing on personal time. To overcome this, it’s important to set crystal clear boundaries, stick to them as best you can and resist the temptation to open the laptop after dinner. When working from home it could be useful to change into your work clothes in the morning and then at the end of your workday change into your homey clothes, this gives you a clear distinction between working and not working. Turn off notifications from work-related apps and emails outside of work hours, and set aside specific times for personal activities such as exercise, hobbies, or spending time with family and friends.

Tip 2. Practice Self-Care

Self-care is essential for maintaining a healthy work-life balance. Taking care of your physical and mental well-being is crucial for avoiding burnout and staying productive. It is important to make time for activities that bring you joy and help you relax, such as exercise, reading, or meditating. It’s also important to get enough sleep and eat a nutritious diet to ensure that you have the energy to meet the demands of your job and personal life. This is something I constantly remind my clients of everyday, make your self-care a priority and make sure you do something for yourself that makes you feel good to ‘fill up your cup’.

Tip 3. Prioritise Your Tasks

Another challenge of balancing work and life is trying to do too much in too little time. To avoid feeling overwhelmed, it’s important to prioritise your tasks and set clear objectives for your day. Make a to-do list and prioritise the most important tasks and make sure you don’t get hijacked by other things. Be realistic about what you can achieve in a day and set yourself the 3 big things you want to get done and set yourself the time to do these. This will help you focus on what needs to be done and avoid wasting time on non-essential activities. When working on big tasks which require your mental focus and attention, turn off all distractions that will pull you away from that task like pop-up notifications, mobile phone and any other alerts.

Tip 4. Have regular renewal breaks (or downtime)

We are not machines, we cannot keep going 24/7 without any consequences (burnout). It is best to have periods of work punctuated by moments of rest, for example, after you have been concentrating and working hard for around two hours, take a few minutes rest to renew your mind and body. It could be a short meditation practice or a few minutes of downtime, make yourself a cup of tea, go for a quick walk, have a chat with a colleague or anything that gives you a little break from the cognitive overload. This short renewal break will refresh your mind and reset your focus, so you work clearly on the next task at hand.

Tip 5. Make Time for What Matters

Finally, it’s important to make time for what matters to you. Whether it’s spending time with family and friends, pursuing hobbies, or traveling, make sure that you prioritize activities that bring you joy and fulfillment. These activities will help you maintain a healthy work-life balance and keep you motivated and productive in both your personal and professional life. Think of the things that you value the most in life and dedicate more quality time for this.

In summary, balancing work and life can be a challenge, but it is possible. By setting clear boundaries, practicing self-care, prioritising tasks, having regular renewal breaks, and making time for what matters, you can reclaim your work-life balance and start enjoying life more fully. Remember that work-life balance is about finding a balance that works for you, so don’t be afraid to make changes and try new things. With the right strategies in place, you can achieve a healthy and meaningful life both inside and outside of the office.

Melo Calarco, author of Beating Burnout-Finding Balance, (Wiley $29.95) is a mindfulness and high-performance coach, keynote speaker and corporate programs facilitator. His work has helped many CEO’s, leaders, corporate executives, medical professionals, elite athletes and other high performers to build resilience and perform at their absolute best, without burning out. He has trekked and cycled around the world on his mountain bike and shares this experience in his work which has been described as truly transformational!

FIND OUT MORE ABOUT MELO
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5 Minutes with Vicky Zhang

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So, you’re the winner of the 2022 Next Gen Insurance Leader Award! What was your motivation to apply?

Curiosity is my motivation.  I enjoy seeking new information, exploring new experiences and discovering novel possibilities. I am always curious around how technology continues to shape the world we live in. I want to understand how AI can be beneficiate to insurance professionals and the genuine interest on this subject drew myself to apply. 

It was great to see the support from your NTI team at the announcement! What’s the best thing about your current role?

The continuous professional career development opportunities. There are many internal secondment opportunities and exciting project works, and also extensive training and learning courses/ resources available. I am surrounding with professionals from different business areas, we respect and learn from each other all the time.

What book are you currently reading – what made you choose to read it?

The Courage to be Disliked by Fumitake Koga and Ichirou Kishimi. The book provides an accessible overview of the psychology concepts of Alfred Adler- one of the giants of 19th century psychology.  Some of the concepts presented can be a bit provocative and may go against a lot of the dominant narratives of the current cultural milieu. However, it is still an interesting book in my opinion -it shows me how to unlock the inner power to become the best and truest self. It also explains the ability to determine our own future free of the shackles of past experiences, doubts and the expectations of others.

Ok, a different one… You’re a new addition to the crayon box. What colour would you be and why?

I hope to be colour white because it is very useful and work well with all other colours. I do some painting as a hobby and I always run out of white paint quite quickly compare to other colours. White gives me a sense of purity and freshness. One of my favourite artists- Robert Ryman, the master of white on white painting. I inspired by white and his works, and I hope it is inspiring to someone else.

What advice do you wish someone told you earlier on in your career?

Focus on long term value creation. Looking at career goals in the long run, try to develop skill sets that will prepare you for the future.  I believe the power of execution says more about a person’s determination and ambition than just words. Never stop learning or sharing knowledge. It is important to grow individual skill sets but more importantly to grow as a team.

5 Minutes with Benjamin Briscoe

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Could you tell us a little bit about your current role.

Since initially joining GT Insurance on secondment then going permanent about three months ago in the Technical team as the National Underwriting & Portfolio Manager, the focus has been on the commercial packages business which is something that we want to grow. This has included working on our new online quoting solutions for brokers with a greater focus on digital, and making it easier for customers to place insurance with GT.

Working in a smaller business versus working in a large corporate has its differences. It’s a lot more hands on deck, and there’s a lot more opportunities to do things you might not typically do in larger business where roles can be more specific or specialised. I think one of the things that’s really exciting about it is that you have the space to think a little bit more laterally and broader in terms of answering “how do I solve this,” rather than relying on superior resources to solve a problem.

What drew you to insurance and specifically motor insurance?

Two things to like about commercial motor: it’s a good blend between case underwriting and a data & portfolio approach, and you have more claims compared to other products. Both aspects require you to be efficient in your approach, and make sure your admin tasks are very much systemized. Other lines tend to be more intensively case underwritten, but with motor there’s a greater focus on getting the systems and processes right to support your people so that they can deliver for customers. Also, it may sound funny but having a higher frequency product like motor means you get to demonstrate why you are a good choice as an insurer and demonstrate the value that you bring sooner in the relationship compared to other insurance products.

What’s been more valuable in your career, your experience, or formal education? What has built the skill set that you utilise today?

Further studies have been a big part of my career: undergraduate studies in Banking & Finance, followed by postgraduate studies in Insurance and a Master of Commerce. It has provided a good foundation of learning, but what turbocharges it is taking advantage of the opportunities that are out there. Last year, for example, engaging in things like the Next Gen Award (read Ben’s winning submission), which is co-sponsored by YIPs and Barry.Nilsson. Also making sure you take advantage of the opportunities that come up at work, things like secondments.

A big one for me was an international placement in Germany.

There’s no one silver bullet in terms of development; it really needs to be a holistic approach of working across lots of different things and getting that blend of education, experience, and exposure.

And can you tell us more about your time in Germany?

In 2018 I was approached by Allianz Global P&C in Germany about a three-month secondment working on global strategy topics and Technical Excellence. Naturally, you tend to do everything so you can say yes. Thanks to a good sponsor who supported the secondment it became one of my career highlights so far. The opportunity was fantastic, it meant working on engaging topics with lots of different countries, both remotely and by travelling to places in Europe and South America. The best part was getting to experience true workplace diversity; working in the Allianz Global P&C team there were around 20 nationalities in the team with diversity of age, gender, nationality, and educational backgrounds. It went beyond the diversity we typically experience in an Australian workplace, and it shined through in some of the great work produced. It was a really valuable experience all round.

How has the insurance industry changed since you started? Is there anything you’ve noticed really move on in that time?

The focus on digitalization has really stepped up. It was quite surprising on the first day in an underwriting role to see there were still paper files. Becoming more digital is one of the areas that insurance has done a lot of work on because it’s recognised that this is something we can do to better support our customers.  Taking the burden out of lodging claims, getting a quote, and other processes so our customers can get what they need quickly and easily.

The other thing, particularly in the last three to four years, is a much greater focus on diversity, and looking to grow next generation talent. There’s recognition that there’s potential gaps in the workforce with highly experienced people who are towards the latter end of their career, new entrants, and some gaps in that middle bracket that needs some nurturing to grow. Reflecting on the experience in Germany, having diversity of experience and skills helps drive better decisions that lead to better products & services.

Were there any mistakes you made early on in your career that on reflection you’ve learnt a lot from? Is there anything that you would encourage other people to avoid if they have the chance?

Of course, there’s more than I can count. One of the early mistakes is about managing to temper the balance between being engaged and enthusiastic, but not overbearing and painful. It’s also about not allowing stereotypes to play out – you’re young, so you must be good with Excel – otherwise your time gets filled with spreadsheets.

One of the things that I found early on, is the value of just sitting back more and listening. Particularly as a graduate, you’re told that you’re a future leader so you can easily fall into the trap of talking too much.  A big part of leadership is active listening. If you do more of that listening early on, that’s how you identify key opportunities.
Also, each year I pick a word to help frame it; this year it is “deliberate.” Early on you do say yes a lot, and that’s okay, it’s good. The hard part is working out when to get off that wheel and say yes more selectively and be more deliberate in what you do.

What are some previous words of the year you’ve had?

Three years ago, the word was “tempered.” Having come back from Germany, I  had this three-month period, which was a really broad, expansive experience of learning so much and coming back with lots of ideas. Returning in January 2019 to take on a new, more senior role, I realised I had to be tempered. Whilst all the ideas were great in theory, it wouldn’t be helpful to implement them all together at once, because it could turn into a slushy, weird mix and confuse everyone. Instead, it was about being selective, pick the right time to change something and plan out how to implement properly so it didn’t cause issues.

Looking forward, where do you see the industry going in the future? What’s driving the change?

The industry will continue down the digital path out of necessity. To use a medieval example, the moat for most insurers is the capital requirements and their size. It requires a lot of money from a regulatory point of view to enter the game and that’s always been a big challenge for potential entrants. That’s why you see underwriting agencies needing financial backing. As we become more digital, those costs of entry become lower, particularly in classes like motor where the capital requirements are lower. To stay ahead insurers need to keep adapting and becoming more lightweight otherwise they could get run over.  It’s also not just for our own benefit: being smarter in how we operate translates into being able to offer better pricing for our customers so it’s a win/win.

The other aspect, maybe a little bit more controversial, is that insurance is built on understanding and pooling clients’ risks, and from there to make a profit whilst delivering good service to those who need it. As we get closer to precisely identifying risks, for example through predictive maintenance monitor when car tyres need replacement and thereby avoiding an accident, a lot of these things start to take the risk out of the picture. Done well, uncertainty reduces and there’s less need for insurance. To ensure insurers continue to stay relevant and provide meaningful services to customers they will need to go beyond simply replacing lost or broken things and start to step into those adjacent services, like risk prevention and mitigation.

What advice do you have for someone new to the industry?

Listen lots. Say yes often, but not all the time. And be selective as well. One of the activities I’d recommend, and this isn’t just for insurance, is make sure that you create time and space for “pirate time,” that is time you spend to work and experiment on ideas that, while not an immediate priority for the business, could add value or unlock new opportunities like new products. By spending some of your time, if you can, on the what’s next, what’s coming down the road or an idea you’d like to experiment with that may benefit your work who knows what you could come up with? It’s easy to get stuck in a ‘here and now’ mindset. For people who are coming into the industry fresh, you’ve got a unique opportunity to bring different perspectives. Of course, remember responsibilities come first.

It’s a little bit like playing chess. I’m a terrible chess player, just for the record, but it’s the idea of trying to be able to look two or three moves ahead. When you look at the chessboard mid game, there’s two people that have a good picture of how this is going to unfold because they’re engaged. The winner though is the one who can pay closer attention to all the moves on the board, not just the ones you make, and adapt effectively.