1. In your opinion, what are the ideal qualities of an insurance leader?

Transcription

1 SECTION B : 5 SHORT ESSAY QUESTIONS (TO BE COMPLETED BY THE CANDIDATE) 1. In your opinion, what are the ideal qualities of an insurance leader? The ideal qualities of an insurance leader revolves around these key elements; (i) Strategic Visioning (ii) Broad-mindedness (iii) Flexibility and Adaptability (iv) Capacity in making sound and timely decision (v) Capacity to motivate i. Strategic Visioning is a dynamic process which underlines a leader s capability to develop long-term goal, within a specific time frame and forecasting the expected results. A leader with such capability would be able to develop a long-term sustainable competitive strategy to deliver value creation to both shareholder and internal or external stakeholder (customers). A leader s capability to have a strategic visioning is often associated with his ability to adopt organic processes which is adaptive, holistic and open-ended. ii. Broad-mindedness is a quality that manifests itself in a leader as an ability to see the big picture. A good leader doesn t get mired in every last detail but can step back from situations to consider many alternatives. This quality will enable a leader to see beyond others, identify issues that others may not and anticipate potential changes or game changer. iii. In the insurance industry, a quality leader must be flexible and adaptable. These criteria will enable a leader to change direction quickly and adapt to market changes. In this ever growing industry, a leader with flexibility and adaptability will be able to explore opportunities in new market, undertake new roles and challenges, and expand his/her knowledge in new areas thus delivering growth. iv. If there s one key element all successful insurance leaders must have, it s the ability and capacity to make critical decisions in a timely manner. And if a leader is to be successful, those decisions must be made after appropriate consideration. Indecisiveness kills the ability to lead. v. Capacity to motivate. Many people associate the capacity to motivate with a fiery leader or an eloquent and effective speaker. And passion and strong communication certainly can aid in one s ability to lead, but it takes more to motivate others. The courage of convictions, a certain degree of confidence, and a shared purpose are also necessary to get others to follow you. In the insurance industry where growth is a necessity especially in this region a good leader must be able to motivate and encourage experience learning and competency building. Nevertheless the ideal qualities of an insurance leader can be nurtured through continuous leadership and NOT periodic leadership.

2 2. What have you contributed towards your company s success? The 3 key areas of contribution would be divided and elaborated as follows: i. Topline & Bottom-line contribution ii. Operational Efficiency iii. Growing with substance Competency Building Topline & Bottom-line contribution Currently attached to the Broker Management, Enterprise Corporate Division of the company, incharge of enterprise and specialized risk (non-life) via intermediaries and brokers, I have been tasked to manage a set of portfolios which includes renewal and new business development. These activities are being carried out by four account managers reporting directly to me. These portfolios are mainly large corporate accounts and government linked-companies (GLC) consisting of their property program, marine, aviation and transit (MAT), oil and gas and casualty classes of insurance. Since the incorporation of Etiqa back in 2007, these portfolios have registered a gross premium compound annual growth rate (CAGR) of 8.8%, in which 70% are primarily from brokers driven business. Today, Etiqa is one of the preferred insurer or Takaful provider in the broking segment with commanding 23% market share (non-life business). Our position is solidified by our strong positioning in the local market in these specific classes; Fire/Property with 6.38% market share (currently rank no.5 in the local market), Oil & Gas & Energy with 79.5% market share, Aviation with 55.99% market share and Marine Hull with 27.08% market share. Etiqa is currently rank no.1 in the local market for the Oil & Gas, Aviation and Marine Hull segment. (Source BNM insurance statistics as at 2013 and ISM Insurance Services Malaysia Bhd midyear 2014 issue) In 2013, Etiqa recorded its highest Profit before tax (PBT) thus far for the non-life business at RM200 million. This is being achieved via strategic segmentation of preferred and targeted segment namely property/fire classes and personal accident and also through a strategic management expenses monitoring from the group level. Operational Efficiency The period of 2010 to 2014 marks the birth of our company s Reinsurance/Retakaful framework and Large & Specialized Risk (LSR) end-to-end process. These documented framework and processes are being developed jointly by internal stakeholder ie Sales Channel, Operations & Risk Management. Being at the front-end of the business, I was involved in the work group in as far as providing market insights are concern. These market insights are crucial to ensure that the framework and policies that are being implemented in accordance to best practices as well as ensuring continued growth in our business. The main objective of the implementation is to ensure that Etiqa s credit and counterparty risk is being closely monitored and structured. The dynamic evolution of both the Reinsurance/Retakaful framework and Large & Specialized Risk (LSR) end-to-end process within the 4 years has tighten Etiqa s business processes as well as addressing the Central Bank s (Bank Negara Malaysia, BNM) concern on the robustness of our LSR portfolio which consist of the Marine, Aviation, Transit (MAT) and oil and gas businesses. The evident result from this is the strengthening of Etiqa s capital adequacy ratio (CAR) which is currently at 256%, well above the Risk Based Capital (RBC) minimum requirement of 130%. Such healthy CAR level would allow Etiqa to continue writing LSR business prudently and diligently whilst reviewing its risk appetite from time to time.

3 Growing with substance Account Managers (AM) Transformation to Risk Managers (RM) and Competency Building In 2011, the Enterprise Corporate Division has embarked in a structured initiative to transform its Account Managers to Risk Managers. Prior to this initiative, our Account Managers are primarily sales and topline driven. In an effort to equip our Account Managers with technical competency and risk consultation capabilities, a structured module was develop and encompasses the following scope: Development of the AM transformation to RM Road Map Structured Competency Assessment and Plot Scheduled Knowledge Sharing and Risk Engineering Simulation Sessions with AM Since the launch of this initiative, 6 of our current account managers has been earmark as the pilot batch to be categorized as Risk Managers. These current crops are undergoing several assessments by subject matter expert to ensure that they are well equipped with the technical know-how in terms of providing high-end risk consultations to our customers.

4 3. Your suggestions to improve the domestic insurance industry? On this context, domestic will be described on two front i.e Local (Malaysia) and Region (ASEAN). Local (Malaysian Insurance Industry/ Market) In Malaysia, the general and life segments have enjoyed strong growth life insurance premiums posted a five-year compounded annual growth rate (CAGR) of 6%, with 8% for general insurance premiums. (Source TheStar July 24, 2014). On the general (non-life) segment, competency building is a key area of focus. Improvement or enhancement on the industry s technical competencies will create awareness and develop niche skill sets amongst agents and intermediaries, brokers and underwriters. In line with BNM s effort to consolidate the local insurance industry, the entry of global players would not only result in larger and stronger insurers, but also greater sophistication for the domestic industry through product innovation, pricing and risk-management expertise as well as multi-channel, including alternative distribution (e-channel). Much has been talk about the current competency level of the industry s workforce in which technical dependency is being outsourced from foreign expertise. This is reflective of the current local retention and capacity whereby without the right technical expertise, most of our local risk are being placed to foreign players resulting in outflow of fund from the country. The enhancement of the workforce competency level will eventually lead towards developing a healthy retention amongst local insurers thus contributing towards the economic growth. A continued structured and joint effort by the industry s regulators, local insurers and other relevant parties is paramount to ensure there is vast improvement and growth in the local industry s competency and technical expertise level. ASEAN Region i. Takaful segment: Having both Malaysia and Indonesia within ASEAN should be an added advantage to develop the Takaful segment. Indonesia having the most highly populated Muslim in the world and Malaysia being one of the most fast-growing Muslim country in the world, an improve collaborated effort between these 2 nations could spearhead the region in becoming the hub of Islamic financing and Takaful within ASIA if not globally (apart from the Middle East). In Malaysia for example, the awareness in Islamic financing has resulted in a higher issuance of SUKUK or Islamic bond for Government Agencies or for mega infrastructure projects. This has therefore become a door opener in promoting the Takaful concept in-line with the Sharia and Islamic religious law compliance. ii. ASEAN Insurance Cooperation & Micro Insurance: Current efforts by the ASEAN Insurance Regulators Meeting (AIRM) include sharing of insurance statistics among countries with the end goal of achieving a unified form of statistics; exchange of views on regulatory issues and observance of core principles related to insurance markets. A collective effort in statistic sharing within the region would allow specific identification of un-tab markets. Local insurers within the region can therefore collaborate in providing specific products or solutions which will unify and/or revolutionize local players branding hence minimizing the impact of multinationals dominating the insurance sector. A specific area of interest is the impending 2015 integration of South East Asian nations. ASEAN being largely a third world with developing nations represent the opportunity for micro insurance to innovate and penetrate uncharted paths that needs to be discovered to help low-income populations. A recent study conducted revealed that countries with higher micro insurance

5 coverage ratios are the Philippines at 20.6% and Thailand at 13.9% (source Innovation in the insurance for the low-income will be a work in progress especially with an evolving ASEAN economic space. At the recent 37 th Asean Insurance Council (AIC) Meeting in Singapore one of the key agendas discussed was on Micro insurance which will eventually lead to the AEC 2015 s blue print and how the council members could be an asset in the implementation process. (Source

6 4. What is your vision for the insurance industry in ASEAN? Looking at the non-life segment scope, there is vast opportunity of growth in the ASEAN region. Foreign players are particularly interested in the ASEAN region due to low Natural Catastrophic exposure (apart from Earthquake, Philippines typhoon and monsoon/flood). The direction of the Singapore market in creating a financial (insurer s hub) similar to Lloyd s of London is aligned to the market liberation within the region. With certain parts of Europe still suffering from economic crisis and weakening of the currency, both ASIA and ASEAN can capitalize in the long run in developing a more centralized hub of financial and insurance market. The module adopted by Lloyd s of London is an ideal vision to start with by consolidating the region s local players in providing underwriting capacity to underwrite risk within the region and subsequently on the global front. Reliable source recorded that the total capacity generated by Lloyd s alone as of 2014 is at 26 Billion. This collective vision is however dependent on the financial strength and the capital adequacy ratio of each regional players to undertake specialized risk and retaining. With a dynamic and robust Risk Based Capital (RBC) Framework implementation within the region, this can be achieved. Such development as above can be similarly adopted for the Takaful segment thus positioning ASEAN as a preferred Takaful Hub. The points illustrated as above are again aligned to the vision of transforming ASEAN s local players into a multi-line product specialist in the non-life segment with high-end competency level and subsequently becoming a hub for both the conventional and Takaful sector.

7 5. Why do you think you deserve this award? Coming from a non-insurance academic background, I have developed a holistic view of the insurance industry (particularly in non-life segment) from my 10 years of service. In other words, having both an outsider s view and being part of industry workforce has enabled me to developed different perspective of the industry landscape. As one of the applicant for this award nominee, I have fulfilled several key criteria s and posses the right attitude in the following areas: i. Displaying leadership and high competency level by delivering results and growths in specific portfolio. ii. Having the right aspiration and ambition in self-development, building a capable team and strategic visioning which are currently aligned to the company s broad strategy. Apart from formulating strategies, I emphasize on effective execution which is evident in the sales target being met plus the overall growth of the division and company. iii. Emphasize on Intellectual Curiosity and the importance of continuous learning and sharing. Singles out competency development as an area of growth and encourages team members to consider this as a form of on-the-job reward apart from salary, benefits and bonus packages. iv. Developing global literacy s and being adaptable. At the age 33, there is room for me to improve and to explore new opportunities. Etiqa being part of the Maybank Group (one of the leading financial services institution in the ASEAN region) encourages middle management with potential to undertake new roles in other countries within the region. v. At a relative young age, I have an established business networking and partnership with several regional and global players primarily in the reinsurance sector. This partnership has translated into new business opportunities as well as creating alternative value preposition for our customers.

8 References : Ref No.1 Name : En. Fukhairudin Mohd Yusuf fukhairudin.my@etiqa.com.my Designation : Executive Vice President Head, Enterprise Corporate Division Contact No. : (Mobile) Relationship : Division Head Company : Etiqa Insurance & Takaful Ref No.2 Name : En. Mohd Zaki Abd Shukor zaki.as@etiqa.com.my Designation : Vice President Head, Broker Management, Enterprise Corporate Division Contact No. : (Mobile) Relationship : Reporting Manager Company : Etiqa Insurance & Takaful Ref No.3 Name : Kif Boh kif.boh@asiacapitalre.com Designation : Senior Account Underwriter Asean Capital RE (ACR), Singapore Contact No. : Relationship : Business Partner Company : Asean Capital RE (ACR), Singapore Ref No. 4 Name : En. Abdullah Md Zahid Abdullah@willis.com.my Designation : Executive Director Willis (M) Sdn Bhd Contact No. : (Mobile) Relationship : Business Partner Company : Willis (M) Sdn Bhd

9 Other accomplishment: 1. Selected by Etiqa to attend the 2011 Aviation Seminar in London, organized by Willis. 2. Nominated by Etiqa as one of the delegates for the ASEAN School for Young Insurance Manager held in Bangkok, Selected by the Etiqa to attend the 2014 Reinsurance Seminar in London, organized by AonBenfield. 4. Selected by Maybank Group as part of the elite program module of Transitioning Leaders to CEO which will be carried out within 3 years starting from The program is being coordinate jointly by Maybank Group Human Resource and Linkage. The first 3 module has been organized in Putrajaya, Singapore and Ho Chi Minh City. 5. Won Best Unit for the Division s Ambitious Sales Drive initiative 2013.