The Voice of Insurance

Today’s guest is Chris Killourhy, Managing director of QBE Re. The reinsurance market has been through some comprehensive changes in the last 12 months and so has QBE Re. In this podcast we delve right into the evolving appetites and re-vamped strategy at this well-respected medium-sized reinsurer. In the past QBE Re was viewed as a highly competent and nimble trader in the markets in which it operated. Today it is evolving into a player that is looking to become a long-term across-the-board partner for the right kind of cedant. Chris hopes that this strategy will deliver a growing, balanced portfolio and a more predictable and less volatile level of earnings than in the past. Chris is a qualified actuary and has had a really varied career to date, which has already included multiple roles within the wider QBE group. But, unlike the apocryphal actuary to be found as the butt of hundreds of insurance jokes, he lays out his stall with great eloquence and his ideas on how to build a more balanced portfolio make for fascinating listening. Listen on for many wise insights and a clear vision for how a mid-sized reinsurer should navigate this market and how it can best compliment and benefit from its ownership by a major global insurance parent group. NOTES: Chris refers to a Jamie. That’s Jamie Cook, QBE Re’s Chief Partnership Officer. LINKS: We thank our naming sponsor AdvantageGo: https://www.advantagego.com/

Asta is the largest third-party manager of Lloyd’s Syndicates by quite a long way. As such, today’s guest Lorraine Harfitt CEO of Asta, almost certainly has a better view of what types of new business entrepreneurs and major insurers alike are looking to set up. She also has the best view of Lloyd’s changing appetites around what type of businesses it is looking to allow into - and keep out of - the marketplace. So this podcast is a great temperature gauge on the Lloyd’s and wider international insurance and reinsurance markets. I’m happy to report that I found Lorraine full of optimism and enthusiasm, with a long and diverse pipeline of business in prospect on many fronts, be it new Syndicates in boxes, Captive Syndicates, traditional syndicates, other alternative vehicles or MGAs. As Lorraine puts it, there is always a fear that the appeal of the Lloyd’s and London Market may one day wane. On this showing there is no evidence of this happening any time soon. Lorraine is a an industry professional of vast experience who has worked her way from the Lloyd’s Policy Signing Office in Chatham all the way up into the heart of the market. She knows this business inside and out, she’s great company and this podcast is packed with lots of really nuanced observations. NOTES: Lorraine mentions a Julian. That is of course Julian Tighe, former CEO of Asta and now its Group Director and Chief Commercial Officer at Davies Insurance Services. ICAS, the UK forerunner of the Solvency II regime, stood for Individual Capital Adequacy Standards. LINKS: We thank our naming sponsor AdvantageGo: https://www.advantagego.com/

Today’s guest is someone who has had a career now into its fifth decade and is someone who I have been interviewing on an off for just under 20 years. He has held senior roles in broking businesses, underwriting firms and right in the heart of Lloyd’s. Today Julian James is CEO of Global Markets Commercial P&C Insurance at Sompo International. This is a global role that encompasses everything relating to commercial P&C in the Sompo organisation that is outside Japan or North America. Few executives could cope with a role that is this international, stretching from the far east all the way across to Brazil. But it is a job that suits someone like Julian down to the ground because he is someone who has been a globe-trotter for as long as I have known him and has a global outlook on the insurance business But just because I and many of you know already him, it doesn’t mean that Julian has lost the ability to surprise. In this interview I find someone energised and enthused about the challenge of creating and presenting a consistent and coherent Sompo offering to worldwide clients. With myriad jurisdictions, systems, brokers, languages and cultures to deal with, this is extremely hard to do. I also meet someone heading a business that has been discreetly increasing many of its risk appetites while most others have been moving in the opposite direction and which has grown quickly as a result. I also meet a global representative of a huge business that as recently as 5 years ago was not at all well known or understood outside its core Japanese market and has a large amount of communicating to do. Listening back this is a remarkably broad and fun conversation that covers a vast array of topics and lifts the lid on Julian and the wider Sompo organisation’s strategic thinking on the key issues facing the market. We even briefly touch on Eastern and Western philosophy. NOTES We spoke about some ancient history and I promised to put something in the notes about it. Julian worked at Sedgwick (a major UK-headquartered broker) early in his career. Sedgwick was acquired by MMC in 1998, at the height of what was then an unprecedented wave of consolidation that established MMC and Aon as the first genuinely global broking houses: https://www.wsj.com/articles/SB904040627273832000 LINKS We thank our naming sponsor AdvantageGo: https://www.advantagego.com/

Today’s guest is James Drinkwater, the President of Amwins. James is one of the most successful broking entrepreneurs of his generation. But he is also someone who doesn’t give a lot of interviews and so I have been working to get him on the show for quite some time. I am really glad I finally did because this is a really lively and fast-paced interview with someone right at the top of our industry and at a fascinating time in the marketplace. A massive wholesale broking business like Amwins gets to see where all the stress points are in the market far sooner than anyone else and here we identify these and point to the most likely solutions. But it’s in our broader conversation that I think we learn the most about this leading wholesaler and its global strategy. Transforming from being the largest US wholesaler to being a dominant global player will require a clear strategy and a lot of time. And that’s why it’s refreshing to hear James talk about this because unlike many in our business, he certainly gives the impression that he has the patience to play the long game and refuses to compromise the group’s wholesale identity and culture. Also as a Londoner it’s heartening to hear that the group’s London operations are set to play a key role in its global expansion. James is always frank and a straight-talker and our half-hour chat rattles by in no time. LINKS We thank our naming sponsor AdvantageGo: https://www.advantagego.com/

It's great to have Clive Washbourn back on the show. The Episode I recorded with him two years ago has been the most downloaded of any so far, so it’s obviously going to be good for business to do a follow-up. But it’s more than that. Clive is one of those people who is famous in the market. He is someone who people tell stories about, so you’ve heard about him even if you haven’t met him. So when he founded his Navium MGA it was a no-brainer to ask him on the show. I had no idea what to expect. What happened was Clive being an absolute force of nature and one of the most revealing and fun interviews I have ever been a party to. We did that one under a lockdown over a video call. This time we are face-to-face in Navium’s office on Lime Street in the heart of the London market. It makes a huge difference to be physically in the room with someone like Clive. He really comes alive. What follows is another tour de force which reveals what is driving this remarkable marine MGA and what has pushed it to produce an amazing $360mn in gross written premium. We talk about the market, Clive’s business philosophy and where Navium is heading and how it fits in with Pine Walk and the wider, and now restructured, Fidelis operation. But because this is Clive, we get into something that we rarely talk about elsewhere: Listening back, we grapple with the true art of underwriting and how to play yourself into a strong market position. We learn how you can be a really technical underwriter without being the least bit boring and how you need to be ultra-selective and teach yourself to maximise opportunities whenever they arise. We also get an idea of how you can turn down large amounts of under-priced business but at the same time make the brokers keep coming back to see you. After two interviews I’ve got my own theory. I think people come to see Clive because they really enjoy his company. I think he is someone you could talk to about anything and he would make it an interesting conversation and an honest an unflinching exchange of views. I get the feeling Clive makes all the people he talks to feel understood and special. Here Clive even reveals a historical interest in the battle of Waterloo and burnishes his prog rock credentials by bursting straight into song! We both had a lot of fun – and I learned a huge amount - and so will you. NOTES Abbreviations: TLO is a Hull insurance abbreviation for Total Loss Only. ULR is the Ultimate (Net) Loss ratio. Rinku Patel is mentioned as being in the room with us. He is CEO of Navium’s incubator Pine Walk and is also now COO of Fidelis MGU as well as being its UK CEO. The quote ‘No battle plan survives the first shots of war/first contact with the enemy’ has been attributed to many, including Napoleon, but probably dates back to an 1871 paper by Prussian Field Marshal, Helmuth von Moltke. And finally, here’s a link to the 1973 progressive rock classic Karn Evil 9 by Emerson, Lake & Palmer: https://www.youtube.com/watch?v=fLS0Med0s6E the original had to be split into 3 parts so that it could fit on a vinyl LP! Clive’s part comes in at 8’40”… LINKS We thank our naming sponsor AdvantageGo: https://www.advantagego.com/

Given its 50% share of global premiums, it’s probably fair enough that we spend an awful lot of our time talking about the US market, but sometimes it’s refreshing to broaden our horizons a little. So today we’re going to be looking at Australia. And luckily we’re going to be guided by a real expert and pioneer in this territory. This is someone with an enviable track record and also a very strong grounding in global wholesale insurance. Simon Lightbody has had a very successful 30-plus year career which started as a broker and then an underwriter in London, but really took off 18 years ago when he helped found Miramar, an Australian MGA backed by the growing Steadfast distribution group. Steadfast went public ten years ago and these days its MGAs write well over a billion in annual premiums. After a recent career break Simon is back with Rhodian - a brand-new MGA incubator, set up with support from Amwins. When someone of Simon’s experience and success starts something new it’s always exciting and a chance to find out what opportunity it is they have seen or what gap in the market they have spotted. So what follows is an excellent tour around Simon’s big idea and the opportunities available in the Australian and wider Asia-Pacific markets. Simon’s someone I knew back in my own broking days in the 1990s and I think some of that familiarity comes through in this really friendly and relaxed meeting. But most importantly this is an encounter with a highly successful entrepreneur who knows the MGA business from top to bottom. And because of that I think this Episode has an awful lot to offer any listener, whether they have a particular interest in the Australian market or not. NOTES APRA is the Australian prudential regulator, the Australian Prudential Regulation Authority. ASIC is the conduct regulator, the Australian Securities and Investments Commission LINKS We thank our naming sponsor AdvantageGo: https://www.advantagego.com/

Aegis London is one of the most consistently top performing syndicates in the Lloyd’s market. It’s also one of the least volatile. The business has a new CEO, Alex Powell and so it was only natural that I should invite him onto the show for a catch-up. Alex has been with Aegis since the year 2000 when it was a fledgling syndicate so he knows this firm inside and out – to use his own phrase, he’s been sheep-dipped in this business’s culture. It’s clear from this meeting that we shouldn’t expect radical departures from Alex – but that doesn’t mean that we shouldn’t expect Aegis London to be radical. Because this is a radical business at heart. It’s found a way of putting into practice what many preach but what is enormously difficult to do – grow when you can and preserve capital when you can’t – and all the while maintaining a healthy balance that brings genuine diversification benefits. It’s also pioneered the digitisation of specialist business classes with a large degree of success, which is something many would not have predicted. In this meeting we spend a lot of time examining the market and going over the secrets of Aegis’s success. I don’t want to spoil it for you, but a bit like his predecessor David Croom-Johnson, Alex seems to be a good living example of the culture he wants to engender in his staff. He is easy-going, curious, smart and charismatic and is open and honest about his strategy and what has and hasn’t worked over the years He’s not prone to hyperbole and gives a strong impression that he would be an excellent person to work for. And perhaps that is the real secret as this business looks to make the most out of what remains of this hard market. But don’t take my word for it. You should hear it for yourself. LINKS We thank our naming sponsor AdvantageGo: https://www.advantagego.com/

Today’s guest is one of the best qualified senior insurance and reinsurance executives I have ever had on the show. That’s because in a forty-plus year career David Cabral has been in both claims and underwriting, crossed the divide between Life and Health and P&C and worked at brokers, both in good times and in very bad times. He’s also been in charge of a company in run-off and he has overseen debt and equity capital raisings on the private and public markets. He’s built and run operations, done M&A and has worked at the biggest incumbents as well as the smallest start-ups. His resumé includes amongst many other names: Starr Excess, Marsh, Endurance, Frank B Hall, Lloyd’s and latterly sustainable finance-focused start-up Parhelion Capital. He’s also been a longstanding advocate of business and cultural change and the adoption and application of the best technology in our sector. I don’t know anyone with a more 360-degree understanding of our business than David. That long preamble is important because it means that what he has to say about the fundamental issue of ESG should carry an enormous amount of weight. This is someone with the right combination of intellectual heft and real-world experience to see exactly where we are going wrong as an industry on the biggest challenge our sector has ever faced. To his brains and experience I should also add a fearlessness in telling things exactly as he sees them. If ESG represents the greatest re-set of risk since the industrial revolution, here is someone who has thought things right though to their logical conclusions and wants to help build an insurance sector that is fit for purpose in a world of ever more dynamic risk and exponentially-growing real-time data. David is an outspoken communicator and a great advocate for our sector and the transformative power it wields across the global economy and wider society. I have rarely interviewed someone able to express themselves so freely and this is what I think makes this Episode something a little special NOTES Abbreviations. ESG stands for Environmental Social and Governance IoT is Internet of Things. A Julian is referred to. That is Julian Richardson, CEO of Parhelion Underwriting. LINKS We thank our Special Episode sponsor Stephens Rickard: https://www.stephensrickard.com/ David Cabral: https://www.linkedin.com/in/david-v-cabral/

One of the only real qualifications for my job is to be good at getting on with all sorts of people – I really couldn’t do it if I was too cranky or too shy. In contrast some of the people I talk to aren’t natural communicators but as their careers have progressed and they had to take on more public-facing duties within their organisations, they have been forced to learn that particular skill. Happily today’s guest is an insurance professional who is a natural born communicator. Because of this I think this Episode contains way more content per minute than the average. Simon Wilson is President of Markel International and is responsible for a business that operates in 13 countries and counting on three continents. It’s also incredibly diverse, spanning micro retail all the way to the biggest ticket London Market wholesale business placed at Lloyd’s. Simon’s comfortable talking on an extremely broad range of topics – from specialty  classes and the effects of the hard reinsurance market and the discipline of writing net lines in dislocated markets, to casualty reserving and comparative strategies for global business building and the development of highly specialised industry vertical niches. We even dissect ESG and the opportunities that vast swathes of green investment are throwing up for the industry. It’s a breathless encounter that rattles through an enormous amount at a very fast pace. Simon’s clearly enjoying his role and his intelligence, insights, passion and excellent humour shine through every minute of this episode. Listen on, I think you’ll be impressed and you’ll learn an awful lot. LINKS We thank our naming sponsor AdvantageGo: https://www.advantagego.com/

The more time we spend in this industry the more we learn that there is very little that is genuinely new. Take the insurtech community’s recent discovery of the idea of embedded insurance. To read some of the posts about this on social media, this is an idea forged in the white heat of technology and so recently-minted that it’s still hot to the touch. Well, today’s guest puts that idea into considerable perspective. Keith Meier is Chief Operating Officer of US-headquartered Fortune 500 insurer Assurant and has spent a career of over twenty-five years working in the business to business to consumer insurance space – or B2B2C as it is more often called. Operating in 21 countries, there is almost nothing that Keith and Assurant don’t know about embedding insurance right into the heart of the product offerings of the world’s largest consumer brands. So this is a very mature sector and what follows is a masterclass on how to succeed in this specialist niche of the industry. Keith’s absolute customer-centricity will be a revelation to many listeners from the wholesale world. What’s clear is this is a long-term business that needs the right cultural approach to work for all parties. You have to offer real value or you just won’t last. But when it works, it really works. The insurer grows profitable business and service revenues, consumers get great service and added-value products and the consumer giants get new revenue streams and more loyal and better-quality customers. What’s also clear is that technology is enabling this segment to be so much more responsive than it has been in the past, with new products configurable at scale in a matter of days and weeks at negligible cost. That’s clearly the part that’s exciting the insurtechs – and the growth prospects are indeed considerable. But here is one embedded incumbent who is way ahead and is going to be very, very hard to disrupt! LINKS We thank our naming sponsor AdvantageGo: https://www.advantagego.com/