Consumer protection frenzy will spearhead a Liability Cover comeback

FA NEWS: Could you give a "short and sweet” account of your career to date?

Ana: I began my career in the insurance industry with PIA after completing my Bachelor of Commerce at Wits University. I started out underwriting PI business and was soon underwriting FI business too. In July 2000, I was appointed as a director to the board of PIA, and effectively took over the management of the company. In November 2006, after a number of management changes at SHA (and ultimately PIA), I took the "own business” plunge and launched Phoenix Underwriting Managers. Our main focus was the underwriting of financial lines, including directors and officers, medical malpractice, clinical trials and commercial crime covers. I was the managing director and a minor shareholder of a company with, thanks to Hannover Re’s commitment, R100m capacity on the day we opened our doors! In 2009 Phoenix entered merger talks with Camargue. These talks culminated in the 2010 merger of two companies with mainly complimentary lines to become a stronger entity with a broader portfolio.

FA NEWS: What was the major motivation for the Phoenix and Camargue merger – and what was the most exiting aspect of the transaction from your perspective?

Ana: Phoenix, as a small underwriting agency, was experiencing greater difficulty in growing its book, as a result of the tough market conditions, and the ability of its competitors to underwrite package deals incorporating products which Phoenix did not have the ability to underwrite at the time. The merger, while not without its challenges, has opened new doors for us while the credibility, security and backing of the Mutual & Federal and Lloyd’s brands have elevated our standing in the industry. The merged entity is well positioned for success. I’ve enjoyed building new relationships, exposure to international market trends and access to global information. These comprehensive stats are incredibly interesting and provide a great learning platform for our team.

FA NEWS: What is your current role at Camargue?

Ana: As a shareholder and director of the Financial and Professional Indemnity lines, responsible for the Commercial Crime division, an Executive Director on the board and a shareholder in the larger Camargue Group, I am accountable for leading the course of the business areas I am directly responsible for. I am also responsible for "big picture” thinking and strategising. People development and industry training remains my passion and will fall into my scope of authority too.

FA NEWS: Tell us about the challenges you expect to face in coming years, and how you mitigate some of these risks?

Ana: Our challenge, while a nice one to have, is that we have come through a phase of unmitigated growth and expansion. Following our merger – and with the Mutual & Federal relationship now firmly in place – it is time to bed down our skills, hone our strategies and ensure our systems and processes are faultless. We also need to focus on underwriting underwriting and growing our professional indemnity book. Retaining staff will remain a challenge, particularly because the Camargue approach is to empower and comprehensively train and equip staff with skills that make them sought after in an industry that is short of talent. We must also ensure that our technology keeps pace as the business grows and that our IT infrastructure and systems are aligned with where we are going as a business.

FA NEWS: Are you involved in the liability academy?

Ana: I am at this stage involved in our LAB to a limited extent, but would like to increase my exposure in this training environment. I am passionate about educating both existing and new talent in our industry. My team and I will be working closely with John Stebbing to develop practical training manuals that cover the lines of business that I am directly responsible for within Camargue, with PI and the incredibly interesting Cyber Liability cover, top of the priority list.

FA NEWS: Liability issues are obviously something close to your heart. How did you become so involved in the field?

Ana: Liability is an interesting class of insurance business. It is a highly specialised niche and few in the industry are comfortable operating in the liability arena. I can say unequivocally that my passion lies in liability insurance and that throughout the years it has been a challenging area to be involved in. Our industry will have to adapt as the South African environment becomes more litigious. Liability insurance may have an interesting history, but it is destined for more interesting and exciting times ahead.

FA NEWS: Do you believe that the Consumer Protection Act (CPA) creates a bigger need for liability cover?

Ana: Indeed – it already has and we will see the growing impact of the CPA in future. The promulgation and subsequent inauguration of the Act (in March 2011) has created increased awareness among South Africans of their rights.

FA NEWS: Have we seen an increase in liability products being bought, or has the CPA reality not really hit home?

Ana: Over the last two years we have experienced a slow but steady increase in the sale of new liability policies. The New Companies Act, the CPA, King III and issues relating to corporate governance have definitely led to an escalation of D&O cover being sold. And unlike the recent past, brokers outside of the big corporate space are increasingly equipped to sell D&O insurance.

FA NEWS: How clued up are brokers on your various liability offerings? And can you offer additional comment on this tricky field?

Ana: Although generalising, I can say that in the past it was largely the corporate brokers that were exposed to and trained to sell liability insurance. Small brokers – who possessed neither the skill nor the confidence to operate in this arena – were typically exempt and excluded from these classes of business. Changes in the industry, including a more regulated environment have over time made this market even more specialised. With the result that an even greater understanding of the products being sold is required. Brokers are constantly looking to find new income generating streams of business. With the liability sector being a largely untapped market with huge potential for growth, brokers have a new and attractive option to explore. Camargue Liability Academy for Brokers (LAB) could not have come at a more opportune time. The academy allows us to train and equip brokers with the necessary skills to enable them to be able to fly solo in our filed.

FA NEWS: What does Ana Mullins bring to the Camargue brand?

Ana: I am a self-confessed workaholic and always strive to be the expert in my area. I see my role in the group steadily increasing as I use my strengths and knowledge to assist us in achieving our group targets.I intend to plough my energies into taking the group forward and capatilising on the many inherent synergies and opportunities that lie ahead of us.

FA NEWS: Can you offer a word of encouragement for brokers?

Ana: The Regulatory Exams and the Key Individual exams are now prerequisites for operating in the industry and I encourage brokers to embrace the elevation of operating standards within the industry. It is critical that as an industry we keep learning to stay ahead of and on top of our game. Education and continuous learning is the only way to ensure we offer our clients the best service and expert consultation.

We need to support these and future training and education initiatives rather than tackling them grudgingly. RE and other professional requirements are a means of raising the reputation of the insurance industry. Clients will seek out industry professionals who are passionate about their discipline and can offer unsurpassed, certified advice – so let’s make sure we meet the looming June 2012 deadline.