There has been a changing of the guard in the insurance industry. Peter Jennett has been appointed CEO of Centriq.
What does this mean for Centriq? FAnews spoke with Jennett to find out more about his overall view of the industry and whether we can expect any big changes for the company in the near future.
Question: What are your views on the UMA model in the current operating environment?
Answer: It is safe to say that the insurance industry as a whole has experienced one of the hardest operating climates in recent history. We are definitely operating in tough economic times.
However, despite this, I am still positive about the outlook for the industry and the UMA model as a whole. One of the things we need to resolve as a matter of importance is operating efficiencies when it comes to cost. In general, underwriting margins within the industry and particularly UMAs are coming under pressure because of the cost of doing business. A streamlined approach is needed.
Question: Will anything change now that you have taken over at Centriq?
Answer: The short answer is no. The company has a good business model and is used to doing business in a specific way. I was part of the team that developed the strategy Centriq is currently using. This was a collective effort between the current management and the Board, which is why there is no need to change anything. I am also very fortunate that the company has a strong set of skills across the board and while we are looking to bolster these skills, I don’t envisage any material change to our set up.
Question: What is your message to brokers?
Answer: We would be amiss if we think that insurers were alone in operating within a tough economic climate. Brokers have also had a tough time coming to terms with the new dynamics driving the industry.
In terms of coping mechanisms, brokers need to continue doing what they do best, which is providing valuable advice to clients. In terms of the constant threat of regulatory change, it’s going to happen regardless. Brokers can therefore choose to put up their hands and fight this change, or use their energy to handle the changes better than their competitors. And this applies to the whole industry.
Those who choose to embrace change will eventually get a handle on what is driving business within the industry and they will find that it will become business as usual after a few refinements of their strategies.
Question: What are your views on the skills shortage within the industry? What do we need to do to build up the strength of the industry when it comes to skills?
Answer: I personally feel that we are not spending enough time and efforts on marketing the industry in the right way. We also need to encourage young professionals to stay with a company for a decent period of time. Job hopping is not doing the industry any favours because the professional does not have the benefits of learning any core skills. In my opinion, a person needs to stay with a company for a minimum period of three years before core skills are learned. My view is that people need to think about the core skills they need for the job they want in 10 years’ time. With the correct skills and experience that job in 10 years’ time will be significantly more rewarding than the salary increases they might get from job hopping in the short term.
I have come to terms with the fact that we can’t always retain the young staff that we are training. Ultimately, we might be training staff for the rest of the industry to benefit from.
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