What is the history of Investors Trust?
Investors Trust Assurance, a registered Cayman Islands insurer, commenced operations in 2002. Prior to founding the company, the principals distributed unit-linked policies, life insurance and health insurance throughout Latin America, as agents of several large insurance firms. At the start of the ’00s, they identified the need for a company where product development, premier customer service and technology-based solutions were a focal point. After more than a year researching the best jurisdiction and structure, Investors Trust was born.
What products does the company provide?
Investors Trust’s core product portfolio is comprised of unit-linked insurance policies, characterised by a single premium payment or regular contributions over many years. Furthermore, it offers a fixed annuity product with different maturities, and capital protected index notes linked to the S&P 500 Index.
The company specialises in emerging markets in Asia Pacific and Latin America, and has announced plans to target other markets in Asia and the Middle East.
Which countries are attractive in those regions?
The company recently obtained a licence to conduct business from Labuan, Malaysia, with the idea of targeting high net worth individuals in Malaysia and other countries in the region. Also, we are prospecting in India and Dubai. We believe emerging markets are the place to be and we happen to understand them very well, since those markets were the foundation of the company. There is a vast emerging middle class in these countries, which for the first time has the possibility to satisfy certain needs, such as providing for their children’s education or their own retirement. We are in a position to help them reach their goals.
Are there other regions in which you would like to expand distribution?
We are exploring some opportunities in Africa, a continent we think has not been serviced appropriately by our industry – we want to change that.
What are your objectives for Investors Trust over the next five years?
We are concentrating on three key areas: expanding distribution, developing new products and enhancing our technology-based solutions. We live in a dynamic world, where in order to be successful you need to keep your mind open and be proactive. We pride ourselves on being at the leading edge of the industry.
How do you intend to achieve your aims?
Regarding distribution, as I mentioned before, we are increasing distribution in new markets and, at the same time, expanding our network in our existing markets. Emerging markets will continue to be the driving force for us, especially in the next five years. Our offices in Hong Kong, Kuala Lumpur and Montevideo will be essential to accomplish this goal.
In regard to new products, in 2010 we introduced a successful fixed annuity to complement our unit-linked offering, and we are currently launching a much improved unit-linked product that is more cost-efficient and easier to understand for distributors and clients. For 2012, developing a portfolio bond is at the top of our list. Overall, it is extremely important to listen to the market, to our distributors, and proactively develop products that fit their needs.
On the same note, technology-based solutions are becoming a must. We were pioneers creating some of these solutions, like the electronic business submission and the e-app – a web-based paperless platform where our distributors can easily open new business for clients. The company has, at any point in time, between 60 and 80 internal projects of differing complexity, aimed at improving our platform. On average we implement between 15 and 20 projects per month.
What are the biggest challenges the company faces?
Based on the past three years, I would say market turbulence and the global regulatory environment. Volatility in the financial markets generates uncertainty in our clients, who see the value of their accounts diminished and sometimes postpone financial decisions waiting for a ‘better time’. Unfortunately nobody knows when better times are coming and this situation affects our sales, persistency and overall company growth. Our clientele has been very resilient during 2011, but we would like to see a less volatile market.
After the 2008 global economic crisis, an increased regulatory environment has been the common denominator around the world. We believe in dialogue between the regulators and our industry, and this is one of the main reasons why we joined AILO [the Association of International Life Offices] this year. AILO is the perfect conduit to reach out to regulators and we are looking forward to becoming meaningful contributors to the association.
What do you hope to achieve through your membership of AILO?
To belong to a forum where the company is able to discuss the challenges of the marketplace, and to build consensus with our competitors regarding important matters. We had a great experience during the latest members’ meeting in October. It was important for us to hear that other companies from our industry were having the same challenges we are experiencing. We look forward to participating in some of the association’s committees to further discuss these challenges, share our opinions, and ultimately find solutions for all of us.
How will the company differentiate itself from its competitors?
The same way we have done it so far: better customer service, cost-efficient products and a leading technology-based platform. Over the past ten years, we introduced several features that were later followed by our competitors, such as multi-language client web access, service points in all regions and the electronic application platform. We need to continue on this path.
In what ways do you expect the international life industry to change over the next five years?
Following the financial crisis, the global insurance industry is changing and this, together with the evolving emerging markets – in particular China and India – brings new challenges and opportunities. As debt and deficits spiral out of control, governments continue to look at how to increase their tax revenues and limit avoidance. Insurance will no doubt be scrutinised, as a significant amount of capital has been located offshore in recent years.
The financial crisis and increased taxation will lead to additional interest in the life insurance industry, as people find ways to protect their wealth from the higher tax burdens. Already the EU Savings Tax Directive has been amended so as to include insurance products. India and China continue to develop their insurance industries, and these are regions where one could expect to see growth in the coming five years.
What are your likes and dislikes about the cross-border life sector?
When it comes to life insurance and investments, individuals can have a multitude of concerns about products in their own country – the fear of currency devaluation, government instability, inflation or confidentiality and taxation. This is not an exhaustive list but gives a number of reasons why the cross-border life sector brings a value proposition to many clients.
Given that the sector is growing at this time, new companies are entering the market and the ability to enter the market through some less-regulated jurisdictions is a dislike. It is important that financial advisers and clients are mindful of the jurisdiction from where the insurer is based, as well as its market capitalisation. Markets such as the Cayman Islands, Bermuda, Ireland and Luxembourg are well developed, but other financial jurisdictions may not have the controls in place to provide the oversight clients should be receiving.
What is your business background?
I have spent almost 30 years in the financial services industry, with the past 18 of these being located in the Cayman Islands. My focus is providing structured solutions for clients, taking into account estate planning, asset management, protection and tax efficient structures.
Who are your business heroes?
They have tended to be some of the clients I have worked with throughout my career, so I cannot disclose their names. There was one in particular in London before I left for the Cayman Islands that I admired greatly, and that I learned a significant amount from in relation to customer services and relationship management.
What is the hardest business lesson you have learned?
The harder you work does not mean the more you succeed – you end up taking on more and more, and your overall results drop. The more efficiently and effectively you work, the more successful you will be.
What is the best piece of business advice you could offer someone?
It is more important to listen to what the client wants and find a solution to fit his needs, than to ‘sell’ the client something they may not want; even if you believe it is the best solution for them.
