As the Head of Intermediated Distribution at Vero, Andrew Mair spans both sides of the insurance industry. He shares his thoughts on the state of the broker-underwriter relationship and why it is still so vital.
Michael Mills: How did you get your start in the industry?
Andrew Mair: I’ve been working in the industry since 1989, mostly for Zurich, but I’ve been at Suncorp for the last three years.Insurance certainly wasn’t on my original list of career paths. I was studying economics and the plan was to get into banking or finance. I had nearly finished university, but I failed one of my final exams and couldn’t re-take it for a year. I couldn’t justify being a full-time student for another year. I took a job with Zurich and completed the degree the following year.
So things didn’t turn out that way I’d planned but, as it turns out, it’s been a fantastic ride.
MM: What do you most enjoy about working in insurance?
AM: The variety. You get to work across a wide range of industries and with a broad number of people.I’ve had the opportunity to work in a few different places. I’m a Sydney person, but I’ve also worked in Melbourne, Adelaide and New York for a couple of years each. I’ve experienced things that I wouldn’t have had the chance to in many other jobs.
We are selling a promise. It’s a piece of paper that doesn’t come to life until someone needs it.
MM: How would you describe your current role?
AM: My team and I work very closely with brokers. Our job is to grow the business and, to do that, we have to have successful relationships with our brokers. We have to understand what our products and capabilities are and match them to what the brokers are trying to do with their businesses. This means when they grow, we grow with them.
MM: Describe the relationship between brokers and insurers.
AM: It’s very strong. Brokers have terrific relationships with their clients – the most obvious sign of that is their high client retention rate. Insurers don’t have the same bond with clients, but the relationship between insurers and brokers is an enduring one.
We are selling a promise. It’s a piece of paper that doesn’t come to life until someone needs it. It’s important brokers understand what we can and can’t do so they can explain that the clients. A lot of people move from broking tounderwriting and vice versa, so there is a broad appreciation of the roles each play.
MM: How do you get into the head of a broker to build that understanding?
AM: At the end of the day, they are running a business. We’ve invested in technology to ensure the brokers are able to get some aspects of their jobs out of the way quickly and efficiently. If you take the cost out of that part of their business, they can invest it elsewhere.We have to be wary we don’t let technology replace the relationship. You can’t afford to outsource that.
MM: Have you ever experienced problems with the relationship?
AM: There will always be strains over the insurance cycle when certain classes of insurance may be more expensive. Sometimes underwriters’ risk appetites change and they aren’t prepared to cover certain risks or exposures.You can’t conduct business without moments of friction. But, because we are dealing with professionals, we tend to have fairly meaningful relationships.
MM: What are some of your plans for the next 12-18 months?
AM: We will continue to invest in technology and people so they buildan understanding of where our brokers want to be in the next five to 10 years. We have to focus on the common areas where there are opportunities to grow. That’s part of the skill.We are always looking to improve our claims delivery, because it is one of the main points of difference that a large insurer like us has. The better you are at handling claims, the better you are at keeping and attracting business.
MM: What challenges do you envisage on the horizon?
AM: There are a lot of small-to-medium businesses out there that are still struggling. A lot of the headline figures suggest the economy is tracking along nicely, but there are still a lot of people out there feeling the squeeze.That does create an issue about whether these businesses are willing to spend money on insurance. However, it also presents a great opportunity for brokers to show these businesses how valuable insurance can be.
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