20
Coping With Global Transformation Anthony Egerton MA MBA ACII Tang Long Consulting The Malaysian Insurance & Takaful Brokers Association CEO Conference Bali - October 2011

Mitba bali conference presentation 1011 (logo)

Embed Size (px)

DESCRIPTION

"Coping With Global Transformation" - presentation to Malaysian Insurance & Takaful Brokers Association CEO Conference, Bali in October 2011

Citation preview

Page 1: Mitba bali conference presentation 1011 (logo)

Coping With Global Transformation

Anthony Egerton MA MBA ACIITang Long Consulting

The Malaysian Insurance & Takaful Brokers Association CEO Conference

Bali - October 2011

Page 2: Mitba bali conference presentation 1011 (logo)

Agenda

• Global transformation – ‘the journey ahead’

• McKinsey & Company research– “Journey III”– “Building a Talent Magnet”

• Lessons to be learnt

Page 3: Mitba bali conference presentation 1011 (logo)

The ‘old chestnuts’

• How profitable is your existing business?

• Brokerage v Fee conundrum

• Is Profitable Growth an oxymoron?

• Why does insurance ‘enjoy’ such a poor reputation?

Page 4: Mitba bali conference presentation 1011 (logo)

McKinsey & Company Research

Page 5: Mitba bali conference presentation 1011 (logo)

“The Journey”

• Risk management is the primary driver of success

• Not investment performance, expense management or financial leverage

• Performance is remarkably consistent and self-reinforcing

• Winners capitalize on counterintuitive ‘ironies of risk’

Page 6: Mitba bali conference presentation 1011 (logo)

“The Journey Revisited”

• Industry returns remained poor, lagging behind the cost of equity by a wide margin

• Returns in P&C lagged far behind those of other financial service sectors, most of which generated returns in excess of 14%

• Differences in underwriting performance accounted for the lion’s share of differences in returns

• Differences in investment margins and financial leverage were less important

Page 7: Mitba bali conference presentation 1011 (logo)

“Journey III: The Next Frontier in Property and Casualty Insurance”

http://db.tt/XqNc6Hx

Page 8: Mitba bali conference presentation 1011 (logo)

A Paradigm Shift

• The exit of undisciplined capacity

• Strengthened risk management skills

• Stronger foundational pillars

Page 9: Mitba bali conference presentation 1011 (logo)

Next-Generation Risk Management

Page 10: Mitba bali conference presentation 1011 (logo)

The Implications

• The risk journey continues – with profitable growth as the new frontier

• Continuous improvement of risk management• Growing profitably in a competitive industry– Lessons and barriers– Levers to drive growth

• Upgrading the foundational pillars

Page 11: Mitba bali conference presentation 1011 (logo)

Overcoming Barriers To Growth

Page 12: Mitba bali conference presentation 1011 (logo)

“Building a Talent Magnet”

http://db.tt/p8ToAzP

Page 13: Mitba bali conference presentation 1011 (logo)

Conclusions

• Property and casualty insurance industry faces three challenges in attracting high-quality talent: – a poor reputation, – a limited understanding among high school and college

students of the industry’s career opportunities, and – a limited pool of trained talent.

• There is cause for optimism• Coordinated actions are required• The work involved will be neither easy nor quick

Page 14: Mitba bali conference presentation 1011 (logo)

Ten talent questions - Culture

1. What are the most pressing people and skills needs you require to fulfil your 5- and 10-year strategic objectives?

2. Can you estimate the numbers of leaders or technical experts you need in each of your businesses to have a strong bench for succession purposes?

3. Can you rate where your organization stands relative to competitors in talent attractiveness? On what dimensions you are leading and lagging?

4. Most important: Do you spend 30-50% of your time developing people and their capabilities?

Page 15: Mitba bali conference presentation 1011 (logo)

Ten talent questions - Performance

5. Do high performers in your organization receive the recognition and differentiated rewards they deserve?

6. Have you provided clear and consistent guidance to employees on the behaviors and values you expect them to demonstrate as a part of their overall effectiveness? Is that guidance the same across all geographies and units?

Page 16: Mitba bali conference presentation 1011 (logo)

Ten talent questions - Development

7. Do people in your organization know how to get ahead? Are they aware of career paths and roles open to them and how they should be preparing to succeed?

8. Are your employees engaged and motivated to perform? Do they find meaning and engagement at work?

Page 17: Mitba bali conference presentation 1011 (logo)

Ten talent questions - Recruiting

9. Do you know what talent pools and geographies yield the most promising recruiting candidates? Have you identified the campuses you should build recruiting relationships with?

10.Does your human resources organization have the credibility required to advise business leaders on people and performance matters?

Page 18: Mitba bali conference presentation 1011 (logo)

With Acknowledgement & Special Thanks to

Pete MillerAuthor, “Journey III” & Director, McKinsey & Company +1 (212) [email protected]

Dr Stephan BinderLeader, Insurance Practice - Asia & Director, McKinsey & Company+86 (21) 6122 [email protected]

Journey III: The Next Frontier in Property and Casualty Insurance http://db.tt/XqNc6Hx

Building a Talent Magnet http://db.tt/p8ToAzP

Page 19: Mitba bali conference presentation 1011 (logo)

And Thank You to You too!

Anthony Egerton MA MBA ACII +65 9128 1855

[email protected]

Page 20: Mitba bali conference presentation 1011 (logo)

“A journey of a thousand miles begins with a single step.”or "The journey of a thousand miles begins beneath one's feet."

Lao-tzu, The Way of Lao-tzuChinese philosopher (604 BC - 531 BC)

千里之行,始于足下 老子 , 道德经(604 BC - 531 BC)

Anthony Egerton MA MBA ACII +65 9128 1855

[email protected]