nzsa general insurance seminar 2015 - actuaries · poacher turned gamekeeper . karl armstrong –...

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?


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


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCIbO-r_0wMgCFWUtpgod858KRQ&url=http://www.canterburyres.com/services/risk-compliance-management/&psig=AFQjCNEU8jU-V8B-r2Xuh5_T3L7zRWJyaw&ust=1444875931374862

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


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


OUR BRANDS


THE IAG NEW ZEALAND JOURNEY – SO FAR


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


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


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCMLT1cjUwMgCFYKppgodPWYEOA&url=http://www.theguardian.com/film/2011/jul/23/john-patterson-zookeper&bvm=bv.104819420,d.dGY&psig=AFQjCNHKZ7PdD_L_ckrOvhguyj_pzW1PgQ&ust=1444867298952901

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


https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=&url=https://www.asme.org/career-education/articles/team-building/teaching-teamwork-to-engineers&bvm=bv.104819420,d.dGo&psig=AFQjCNEYw7MLOeu6ZmvG3RYBXjr2S8cLow&ust=1444874875424547

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCKS6-NfwwMgCFcHmpgodwekLpw&url=https://www.asme.org/career-education/articles/team-building/teaching-teamwork-to-engineers&bvm=bv.104819420,d.dGo&psig=AFQjCNEYw7MLOeu6ZmvG3RYBXjr2S8cLow&ust=1444874875424547

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?


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCNnz8YXZwMgCFWYbpgodePYIWQ&url=http://bodyrocksupps.com/free-weight-loss-diet-plans&bvm=bv.104819420,d.dGY&psig=AFQjCNEbMlJV-_qAsnf1v7apRYYQWKXO6A&ust=1444868465587137

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


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCIeVtqeZtMgCFYETpgod69MBeg&url=http://www.kiwiblog.co.nz/2011/03/christchurch_as_the_quake_hits.html&psig=AFQjCNF-6Lj0IwvdCkOKYBf_7AWekC-oDQ&ust=1444439151776283


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCOne49DlwMgCFWXmpgodU5sHbA&url=http://www.chicagotribune.com/sports/ct-rugby-haka-all-blacks-spt-1101-20141031-column.html&bvm=bv.104819420,d.dGY&psig=AFQjCNEaWq43Eekv2Q3aPu6P6MdJVW6jzg&ust=1444871468536219

1st Line: Front line, Risk champions

2nd Line: Risk Advisors

3rd Line: Group Risk & Audit

3 LINES OF DEFENCE


Pricing

Reinsurance

Underwriting

Claims

Finance

Insurance Risk and License

ACTUARIES OUTSIDE THE ACTUARIAL TEAM


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCJe-nuznwMgCFQcbpgodoV0DNg&url=http://www.mikekerr.com/humour-at-work-blog/huddle-up-daily-team-huddles-improve-communication-culture/&bvm=bv.104819420,d.dGY&psig=AFQjCNH9ZaFXskzXs1YSyMaf_8sazBYKnQ&ust=1444872528783737

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


https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCP2pyq7twMgCFQMupgod8MwBIA&url=https://www.reddit.com/r/houston/comments/26tfs9/who_are_our_local_celebrities/&bvm=bv.104819420,d.dGo&psig=AFQjCNFOkU50YCWcZlgDfeW6VQL6iRHAkA&ust=1444873975443517

QUESTIONS


nzsa general insurance seminar 2015 - actuaries · poacher turned gamekeeper . karl armstrong –...

Documents