View
1
Download
0
Category
Preview:
Citation preview
POACHER TURNED GAMEKEEPER Karl Armstrong – Chief Risk Officer, IAG New Zealand 23 October 2015
NZSA GENERAL INSURANCE SEMINAR 2015
20 October 2015 PAGE 1
WHO AM I?
20 October 2015 PAGE 2
My background
Am I qualified to do the CRO role?
Why have I gone to the dark side?
Insurance companies and CRO’s
Risk Governance and Compliance Frameworks
Financial Risk including Reinsurance
Insurance Risk
Assurance to Executive and Board
Aligning NZ Risk functions with Group Risk functions and approaches
MY RESPONSIBILITIES
20 October 2015 PAGE 3
HOW DOES THIS ROLE FIT INTO OUR ORGANISATION
CEO Risk Committee
Group CRO
CRO
Head of Insurance Risk and
Reinsurance
Head of Risk, Assurance and
Compliance
20 October 2015 PAGE 4
Size of Group: AUD $12,679 million
NZD $2.3 billion in Gross Written Premiums (‘GWP’)
More than 4200 full time equivalents (‘FTEs’)
47% of New Zealand market share
NZ contribution to Group: 20%
Operating in NZ since 1859
A LITTLE ABOUT IAG
20 October 2015 PAGE 5
OUR BRANDS
20 October 2015 PAGE 6
THE IAG NEW ZEALAND JOURNEY – SO FAR
20 October 2015 PAGE 7
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
475
769
1,040 1,082 1,087 1,1071,187
1,247
1,552
1,968
NEW ZEALAND GWP (NZ$M)
168
FY14
2,040
FY15
1,137
Earthquakes
DI Transformation
Prudential Licensing
Integration
Transformation
IT Roadmap
Recapitalising
Purpose
Leadership Economics
Shared Value
1,207
WHY RISK IS IMPORTANT
20 October 2015 PAGE 8
We help make your world a safer place
To be New Zealand’s most respected insurance company
Operational Excellence
Do the basics
well
Transform IAG NZ
Prepare for the future
Customers as
advocates Customers tell good stories
about us
Canterbury Recovery
Resolve all
claims by mid 2016
Strengthen Reputation
People
respect, trust and admire us
Stronger People,
Better Place Great people
tell great stories about
us
Our Purpose Why we exist
Our Ambition What we want to achieve over the long term
Our Strategic Priorities
As poacher: They get in the way Fence sitting Cause un-necessary angst
As gamekeeper: Essential A growth industry Importance of independence They guide us Force us to think
MY VIEW ON ACTUARIES
20 October 2015 PAGE 9
Regulation
Modelling – catastrophes, beehive, 1:1000
Christchurch
Reserving
Trends: • leaky buildings • storms • claims costs, frequency, values
Education – clarity of understanding
Diversity of thinking
WORKING WITH ACTUARIES
20 October 2015 PAGE 10
Business acumen
Disruptive behaviours
What works and what doesn’t work
Sheer common sense
bring the dumb questions to the table
SO WHAT SHOULD THE CRO BRING TO THE TABLE?
20 October 2015 PAGE 11
Ongoing: Reserving setting
Influencing skills
Holding feet to the fire
Reporting to all levels Including RBNZ
Commercial reality
Will there be work after Christchurch?
WORK ON CHRISTCHURCH
20 October 2015 PAGE 12
1st Line: Front line, Risk champions
2nd Line: Risk Advisors
3rd Line: Group Risk & Audit
3 LINES OF DEFENCE
20 October 2015 PAGE 14
Pricing
Reinsurance
Underwriting
Claims
Finance
Insurance Risk and License
ACTUARIES OUTSIDE THE ACTUARIAL TEAM
20 October 2015 PAGE 15
Spend time in the business
Go and see the risks being insured
Visit the claims zones, see the damage
Talk to the troops
Tell your story, understand other’s stories
Ask the dumb questions
Be as commercial as is actuarially possible
CLOSING
20 October 2015 PAGE 16
QUESTIONS
20 October 2015 PAGE 17
Recommended