The transformation of a sector is usually marked by technological development, but it’s not the only way to make it happen – aspects related to leadership, communication or risk management can also drive change in traditional structures of the industry.
This was the main conclusion reached by the panel discussion Reflections on innovation in marine insurance, held at the 12th Latin American Maritime Insurance Congress 2024 in Chile. Terms that often coincide with this type of debate, like AI, blockchain, and robotics, were put to one side to facilitate a conversation on the practical, and important, issues that don’t usually lead the debate, such as communication and the integration of new talent.
The talk, moderated by Gabriel Mysler, CEO of Innovation@Reach, brought together several experts who explored different ways to transform a traditional sector such as insurance, beyond simply integrating new technologies. Participants on the panel included Susana Estévez from Alsum, David Colmenares, managing director of Allianz Commercial for Latin America and Adailton Dias, executive director of Products and Reinsurance at Sompo.
Tracing a new professional profile
One of the premises shared by all of the panel experts was the need for change in the insurance industry, in cultural as well as technological terms. Despite the undeniable progress made in recent years, diversity – gender and generational – remains an area needing much improvement in Latin America. “Progress on closing the gender pay gap and promoting female leadership is lacking”, Colmenares says. “Approximately 65% of employees at insurance companies in the region are women, but men earn between 15 and 30% more than they do. In addition, only 5% of CEOs in Fortune 500 companies are women,” he adds.
This reluctance to integrate new values is replicated when we talk about age. Colmenares is certain that many veterans in the sector are reluctant to open the way for young talent to make the most of their knowledge: “We tend to search for mini versions of ourselves, profiles to replace the existing figure. It’s like we’re trying to perpetuate the way insurance has been sold and managed for the last 250 years, but we have to try to change the way we do things. It’s curious because our industry is built on accepting risks, but we’re reluctant to take risks with our own people,” he says.
Adailton Dias from Sompo agrees that it’s time to open the doors to “young, brilliant minds” that can help elevate the sector to new technological and knowledge levels. Susana Estévez from Alsum also supports this idea: “Experience is fundamental in this industry, but we must open ourselves up to what the future holds too. We have to stay ahead of curve.”
Reinvention of processes and products
“There are two types of professionals: those that achieve good results and those that have good excuses. Normally, the latter are very handy at using PowerPoint, because they have to present lots of reports. I want to generate results, and to do that, I need to visit clients, understand their needs and understand their situation and that of brokers,” remarked Adailton Dias. In 2015, when he joined Sompo in Brazil, he faced enormous challenges, such as the frequent theft of goods.
At that time, instead of complicating coverages, the company chose to implement collaborative risk management tools and partner with other companies in the sector. “When risk management companies understood that we weren’t chasing their market share, and wanted to meet a greater need, that of the client, we were able to get things done. What frustrates me is seeing, for example, how a less sophisticated portfolio, such as auto, generates 40 billion dollars in premium volume in the country, while our products, which are arguably more important and combine logistics, foreign trade and other relevant aspects, aren’t as successful.
The power of communication
All the experts gathered on this panel agreed that, although they did not have a clear vocation for the insurance industry in their youth, which is almost always achieved by chance, they feel very proud to be part of it. “We as insurers represent the largest instrument of economic, social and financial resilience that currently exists in the world, but we continue to fall into the complacency trap”, Colmenares says. In this regard, Estévez recalls the example of how a small conceptual change had a major impact on business management. Twenty years ago, when the sector wanted to open its doors to the small vessels market, it proposed adapting the language to the individual owner that they approached. “Although the coverage was extensive, the new feature of the product was how it was described: without small print or gray areas, and using colloquial language,” she explains.
Instead of referring to “insured parties”, the contract speaks of “you” and “us”. The clauses are presented in a straightforward manner, free of industry jargon. Despite the success of the project, Estévez recognizes that it was a battle to get back to this simple dialectic. Mysler, as moderator of the discussion, praised the idea of “putting yourself in the client’s shoes, and understanding when to be technical and when to be clear and specific”. Colmenares also agreed on the importance of providing the insurance industry in general, and the maritime area in particular, with a new voice: “We need people to help us change. I think it’s essential to change our language, to speak simply, and show a powerful vision and teach the world how wonderful the sector we work in is. We need to conquer hearts, not just minds,” he concluded.
