Today, as Swiss Re’s CEO of Life & Health Re, U.S., he’s been happily settled in New York for the past 11 years with his family. It’s a long way from his plans as a young student from the South of England, who originally wanted to pursue a career in languages.
However, following a management role at Mercantile & General’s Spanish branch office, he discovered a love for the (re) insurance industry and relocated to Australia in 1997 to join Swiss Re where he ultimately became Head of Swiss Re’s Life & Health Australia and New Zealand (ANZ) business and a crucial member of Swiss Re ANZ’s management team. His portfolio included leading the New Business Origination team in Australia and New Zealand.
Always a passionate advocate for initiating positive change, he has played a key role in Swiss Re’s protection gap initiative, addressing the issue of underinsurance. He also recently concluded a two-year tenure as the Chair of LIMRA LOMA Global Board of Directors and continued as a Director until the end of 2023. He is also a member of the Board of Directors of the American Council of Life Insurers (ACLI).
Insurtech Insights caught up with him to find out how he sees the industry developing in 2024
Tell us how and why you chose insurance as a career path?
Back in 1984, I stumbled into this field, never intending to land here during my school days. My academic focus was languages—I studied French, German, and Spanish. My only goal was to find a profession where I could apply my linguistic skills.
The unexpected entry into the insurance world happened when I applied for a marketing assistant position at M&G, a British reinsurer owned at the time by Prudential UK. What caught my eye in the job advert was the requirement for proficiency in French, German, or Spanish. Intrigued, I thought, “Well, that looks interesting.” Despite my lack of prior knowledge about insurance, the experience proved to be a turning point. I’ve since held various roles, from managing M&G’s branch office in Madrid to leading Swiss Re’s Life & Health business in Australia and New Zealand.
Over the years, I’ve become more connected and committed to this industry. The unpredictability of insurance has its challenges, but it’s precisely what makes it super interesting. From London to Madrid and then to Australia, and now in New York, each experience has been pivotal. I spent the first twelve years of my career using my Spanish extensively which gave me the chance to put my academic background to good use.
In the mid-nineties, Swiss Re acquired M&G, and during that merger, I took on a client management role in Australia. There was no logical reason or premeditated plan; it just felt like the right move. What was supposed to be a four-year stint turned into 15 years, getting married, raising my kids and immersing myself in the market. In 2012, another unforeseen opportunity arose — to lead our largest life business globally. It meant relocating to the U.S., a decision I hadn’t planned, but the chance was too good to pass up. Since then, I’ve been heading the US Life & Health division, cherishing every moment of this unexpected journey in the insurance industry and being part of the world’s largest life market.
You’ve got a big job as the CEO of Life and Health US Americas for Swiss Re. What’s that like on a day-to-day basis?
In my role, I lead the US life business, which is the largest within our global life franchise.. The mature and substantial nature of the US market means that our business here represents nearly half of Swiss Re’s global life and health activities. It’s a privilege to helm such a crucial segment.
My responsibilities cover the entire spectrum of the profit and loss (P&L) performance, encompassing both existing and new business. This involves not only managing the current business but also devising strategies for growth in a market that is already mature and sizeable. Another vital aspect of my role is industry representation, where I actively engage with industry associations on behalf of Swiss Re. This requires a significant portion of my time but one I consider a critical component of the role.Leading a substantial team is an integral part of my role, with around 300 to 320 individuals contributing to various functions within our US life business.
The people leadership aspect is one I love and fundamental to our success. We are after all a people business and this means prioritising qualitative measures in my approach. However the importance of financial steering of the business cannot be overlooked, and creating shareholder value and delivering our financials are the key focus.
What are the biggest challenges you’ve personally encountered in this role?
Two significant challenges stand out for me—one obvious, the other less so. Managing multiple and often conflicting priorities is the first, a constant juggling act that I relish. The diversity of tasks keeps each day dynamic and presents a continuous learning opportunity. The insurance industry’s complexity, especially in reinsurance, adds an extra layer. You can’t possibly know every nuance given the sheer size of the business.
Encouraging my team to keep me informed about things I might not know is an ongoing challenge, but it injects interest into the role. Expecting the unexpected has become a mantra.The second challenge is discovering unknown aspects of the business. The insurance industry’s inherent complexity, compounded by reinsurance intricacies, makes it impossible to know every detail. I emphasise to my team the importance of sharing information, even if they think I might already be aware. This challenge brings both interest and unpredictability to the role.
One tangible example of a monumental challenge in my career was the COVID-19 pandemic. It reshaped our personal and professional lives, challenging the insurance industry’s preparedness. The unexpected nature of the pandemic taught valuable lessons and underscored the need for resilience. The experience was significant, emphasising the industry’s role in society and highlighting the importance of life insurance.
Navigating the pandemic required leadership skills centred around three principles I adhere to: inspiration, composure, and authenticity. These values helped maintain stability during challenging times, especially as teams transitioned to remote work. The pandemic tested everyone, and these leadership principles became crucial in addressing mental health issues, physical challenges, and uncertainties about roles within the business. The ability to inspire, remain composed, and communicate authentically played a pivotal role in guiding the team through unprecedented times.
You’ve worked across a number of key territories. What have you gained from those experiences professionally?
There are four key aspects that significantly shape the insurance landscape. Firstly, while markets and countries may differ, the fundamentals of insurance remain consistent. The products may vary, but at their core, they involve covering risks, whether it’s personal items in property and casualty or lives and health in life insurance.Secondly, the impact and importance of regulation play a crucial role.
The regulatory environment varies across countries, influencing how the insurance sector operates. For instance, the state-based system in the United States contrasts with the federal-based system in Australia, showcasing the diverse regulatory frameworks.
Thirdly, the pace of change in a market is a notable factor. Different regions adapt at varying speeds, whether in technology adoption, compliance with regulations, or responding to evolving consumer needs. This difference in the pace of change becomes evident in practices such as underwriting risk, where countries may adopt new approaches at different times.
Lastly, cultural nuances significantly influence the insurance landscape. Understanding the buying behaviour of individuals within the cultural context is essential. Each country’s unique mix of cultures shapes consumer behaviour, making cultural awareness a crucial aspect of navigating diverse insurance markets. In essence, the interplay of these factors defines the dynamic and distinctive nature of insurance practices across different countries.
Tell us about your role at LIMRA LOMA as the Chair of the Global Board of Directors and how it has impacted your views on the industry.
To clarify, I served as the Chair of LIMRA LOMA in 2021 and 2022, stepping down at the end of the last year after holding the position of Past Chair. My involvement with LIMRA LOMA stems from my earlier connections with them during my time in Spain and Australia. It’s a global organisation, headquartered in the United States, and it holds a dual focus on research/insights and training/education within the insurance industry.
LIMRA LOMA conducts extensive research on industry trends, benchmarking activities, and other vital aspects. For instance, during the COVID-19 period, they delved into understanding companies’ experiences regarding claims. Their unique position allows them to offer a comprehensive view across the entire industry, not confined to the U.S. alone.
Additionally, their expertise in training and education, particularly through LOMA, provides valuable resources for individuals looking to educate themselves across the different segments of the life and health insurance sector.My voluntary role on their board involved overseeing the association’s domestic and international strategy and setting of objectives and its financial strength. LIMRA LOMA is a not-for-profit organisation, and its board comprises executives from member companies, like Swiss Re. They organise one of the best life insurance conferences in the U.S. insurance market.
Personally, being on the board has provided extraordinary opportunities for me personally, such as conducting an on-stage interview with David Cameron in 2019 and delivering the introduction for Michelle Obama in 2022.Apart from LIMRA LOMA, I also represent Swiss Re on the Board of the American Council of Life Insurers (ACLI), focusing on advocacy and lobbying for the industry. Both associations, while distinct in their roles, contribute significantly to the overall development and representation of the insurance sector. Serving on these boards is not only an honour but also a commitment to giving back to the industry beyond my responsibilities at Swiss Re.
What can the US and the European/UK markets learn from each other?
Addressing the differences between European and U.S. insurance markets is a nuanced task, but I’ve distilled it into three key areas. First and foremost is the interaction between the state and the private sector. In many European countries, there exists a robust social security safety net, exemplified by the NHS in the UK or Spain’s strong social security system.
This historical reliance on the state is gradually shifting due to public funding constraints and changing consumer sentiments, impacting how the insurance industries have evolved.Secondly, the penetration of specific insurance products varies significantly, with a notable difference in the prevalence of protection products. While life insurance is prevalent globally, variations emerge in products that provide coverage while individuals are alive, such as disability income or critical illness insurance.
Notably, critical illness insurance isn’t as prominent in the US, potentially influenced by the extensive private health sector and a lack of understanding about the product.The third distinctive feature is the role of banks in distributing life insurance. While many European markets rely heavily on banks for insurance distribution, the U.S. market deviates from this trend. Although accessing insurance products through banks is possible in the US, it’s not as established or common as in larger European markets.
These differences contribute to the nuanced landscape of insurance markets, highlighting variations in consumer expectations, product offerings, and distribution channels. The foundational principles of insurance remain constant, but the emphasis on certain products and distribution methods can vary significantly across regions.
What is Swiss Re currently doing to boost digitisation in the life and health sectors – and what changes are we going to see as 2024 unfolds?
Yeah, the digital transformation in the insurance industry is truly fascinating, and it’s not just specific to Swiss Re but a trend across the sector. The insurance industry has been perceived as slow to adopt new technologies, especially when compared to other consumer-oriented products.
However, there’s a conscious effort to change this, and it’s becoming a pivotal aspect of strategic planning. Let me delve into a couple of specific instances where automation is revolutionising the insurance value chain. First up is the cloud-based automated underwriting platform, Magnum. This platform has been under development for years and has now reached mass adoption. It focuses on enhancing the underwriting process by incorporating external data sources, providing a more efficient and streamlined experience.On the other end of the spectrum, there’s a recent development in digitising the claims experience.
The cloud-based ACE (Automated Claims Experience) system allows consumers to input their claims details directly, simplifying the process. Another system, CARE (Claims Automated Rules Engine), assesses claims using a rules-based approach, similar to how underwriting is automated with Magnum.
The second aspect revolves around data integration, impacting the customer experience. By leveraging data, the aim is to better match insurance products to individual needs, anticipating those needs based on consumer profiles.
This involves pulling information from publicly available sources, with user consent, to create a tailored insurance offering. Our partnership with Palantir, a global data firm, plays a crucial role in harnessing the power of data to predict customer behaviour and policyholder decisions, a platform referred to as Impact+.
Lastly, there’s Underwriting Ease, a tool specifically tailored to the U.S. market. This innovation complements nicely with underwriting workbenches as a post-automation solution, meaning it picks up when an application is kicked out of automation and supports underwriters at all stages to accelerate manual reviews. We’ve already mapped over 500,000 clinical codes to over 120 impairments so underwriters can see digital health data in a way that makes sense during their review process. It’s quickly gaining momentum in the market.
The broader perspective here is that these technological advancements not only make operations more efficient for the insurance industry but, more importantly, significantly enhance the customer experience. The integration of data and technology is key to achieving this, creating a seamless and personalised journey for consumers.
What’s your take on AI for 2024?
AI is truly remarkable. The ongoing exploration of its potential in the insurance industry, including chat GPT, is opening up new possibilities. The goal is to leverage AI to make informed decisions that ultimately benefit the end consumer.
As we move forward, it’s clear that the synergy between data, technology, and consumer engagement will continue to shape the future landscape of the insurance industry. It’s a journey of constant evolution, driven by a commitment to making insurance more accessible, efficient, and consumer-friendly.
