IA: Jawed, you have been CEO of Zurich Global Life for the MEA region for more than a year now, how do you feel it has gone?
Jawed Barna: It has been a fantastic year for both the business and me personally. I was working in the corporate centre in Zurich prior to being offered this opportunity in the Middle East.
I immediately accepted the role as it operates in an incredibly dynamic and exciting market that is undergoing radical change in terms of customer needs, the competitive landscape and the evolving regulatory environment. Yet, even in a market-leading position, there is still so much more potential to realise. I want to be a part of that story.
We have built a very strong team and in the past 12 months we have updated our strategy and taken the business to a new level. Last year we delivered record results but, more importantly, we took key decisions and started new projects that will enable us to significantly improve our business in 2014 and beyond.
IA: Shortly after taking the position as CEO you split the banking distribution channels into two, one looking after local banks, the other international. Why did you do that and what difference has it made?
JB: Bancassurance is an integral part of our growth strategy so we are making strategic investments in terms of propositions, processes, systems and people to deliver innovative and fit-for-purpose bancassurance solutions. This will support our banking partners in increasing penetration and product density.
We also recognised that local and international banks – and their customers– have a different set of needsso we took the decision last October to restructure our bank distribution function into distinct local and international divisions. With this structure we will provide more dedicated and tailored support to our existing bank partners and better understand the needs of other banks in the region. The feedback we have received to date has been very positive and it has played a key role in securing new bancassurance relationships during 2014.
IA: Banking relationships are clearly important for Zurich and for insurers in the Middle East. Are there any relationships you are particularly pleased with?
JB: We have strong ties with 11 global and local banks operating in the Middle East, including some key relationships where we have either an exclusive distribution agreement or preferred partner status with leading banks. I would highlight the strong relationships in the IFA/broker channel where we also have a market leading position. IFAs/brokers have been at the heart of our growth story over the past three decades – and they will be fundamental to future growth. We are also focused on growing our corporate life and pensions business, which we expect to significantly grow as more employers in the region recognise the benefits of providing life, savings and retirement solutions to employees.
IA: What other changes have you made to the business during the past year?
JB: We have significantly increased our investment into customer insights. We have three different measures that provide continuous up-to-date insights into retention behaviour, life insurance and savings needs and feedback around our customer service experiences. We’re using this information to improve our propositions and service levels. For instance, in the past year we have introduced ‘one day turnaround time’ for investment and protection applications, rolled out our new Zurich Business Protect SME proposition and in January launched the first phase of AdviserSuite, a new, simplified online quotation system with a range of exclusive professional tools to help financial advisers better identify customer needs and provide more structured financial solutions.
We have also become more community-focused as a business. We increased our support to Manzil Center for Children With Special Needs in Sharjah, UAE, our chosen charity partner. Not just in terms of fundraising but also by encouraging our employees to truly engage with the work undertaken at the centre.
IA: The company recently launched a life insurance proposition, Zurich Business Protect, for the SME market. Talk us through the reasons why you launched the product and what it aims to achieve.
JB: Life products are one of the least used and understood solutions for business planning among SMEs. While the majority of SMEs have insurance to protect their premises, stock and equipment, one valuable business asset is often left uninsured – the key person.
The loss of a key person can be the single biggest risk to the profitability and even the very existence of a business, especially for SMEs where the relative impact is much greater. Zurich Business Protect provides tailored life insurance solutions that protect SMEs against the death or critical illness of a key person by providing key person, liability and partner protection.
We identified this market as a significant opportunity for Zurich Global Life and our distributors. Following intensive market research and discussions with our distribution partners, we decided to launch Zurich Business Protect – a first-to-market life insurance proposition designed specifically to protect SMEs.
IA: What products have been doing well for Zurich this year?
JB: We have witnessed strong growth across the whole of our product lineup in the past 12 months, but we have seen the biggest uplift among our protection propositions. During 2013, we refreshed our International Term Assurance with a more competitive proposition and made improvements to Futura; both enhancements have helped drive protection sales to record
levels.
IA: Where are the greatest areas of opportunity for Zurich in the coming year?
JB: I think we share the same opportunity – and challenge – as the rest of the industry in the region. Compared to more mature markets, the Middle East is still a market in its infancy and we have barely scratched the surface in terms of the opportunity that we all have.
We could double or even triple premium growth and we would still not come anywhere close to reaching the full potential of the market. Thanks to more intuitive products, better service levels and advice, and tighter regulation, we get a little closer every year to reaching that potential. In the meantime, the industry in the Middle East will remain one of the most dynamic, untapped markets in the world for some time to come.
Life insurance penetration remains incredibly low so there is clearly more work that needs to be done to educate individuals, businesses and corporates on the benefits of life insurance. But therein lies a fantastic opportunity for Zurich Global Life and the entire life insurance industry.
IA: In November, the UAE Insurance Authority is set to implement a number of rules targeted at insurance brokers. What impact will this have on Zurich and do you think the legislation is positive for the market?
JB: We work closely with the regulators in all of our markets and believe the right regulation can help markets to mature and grow. We welcome regulations that help to better protect customers and their financial future. If customers are better protected, then it generates greater trust, which will ultimately help the market to grow to the benefit of insurers and distributors.
IA: What are Zurich’s priorities for the coming year?
JB: We have a number of priorities for 2014, but I would highlight the successful launch of our SME proposition Zurich Business Protect and the roll-out of the second phase of AdviserSuite as two key priorities for the year.
The second phase of AdviserSuite, which will be launched in the summer, forms a key component of our commitment to raise adviser service levels, while also providing tools to enable our distribution partners to further improve the advice and service they give to their clients. Phase two will also include a new Zurich iPad app to allow advisers to submit applications online with an e-signature function to speed up the application process. It will help the financial adviser community take levels of professionalism to new heights.
IA: Finally, if there was one thing you could change about the protection and insurance market in the UAE, what would it be?
JB: I would like to see levels of awareness and understanding of the benefits of insurance rise to levels that match more mature markets.
Insurance can play an incredibly positive role in fostering economic growth and investment in the Middle East and the wider MENA region. But there is still little understanding of how insurance can help address many of the economic and social challenges facing the region.
I would also like to see regulation continue to evolve in our markets. It needs to be customer-centric regulation that protects customers and supports insurers and distributors that have made a long-term commitment to the market.
