Month: October 2015

Sri Lanka is facing what’s commonly referred to as a ‘grey tsunami’, and the socioeconomic challenges that an ageing population so often threatens look set to rise far into the future. Blessed in years past with a larger working-age population than either children or the elderly, the issue of an ageing population has since presented itself and, if allowed to go on unchecked, could profoundly impact the island economy for present and future generations to come.

Figures cited by Ceylinco Life Insurance show that in 1971 the proportion of the population aged over 60 stood at a mere 6.3 percent, for it to later reach 12.2 percent by 2012. Worse is that this same figure is projected to reach 24.8 percent by 2041, and, assuming this to be the case, Sri Lanka has one of the highest ageing populations in Asia, which, when coupled with a shrinking labour force and increasing inflation (see Fig. 1), makes clear the importance of retirement planning and its place in raising the profile of insurance.

It is never too early or too late to plan for
your retirement

The challenge is made to appear all the more confusing seeing that the country is one of the region’s success stories in terms of human capital development. Going by the World Economic Forum’s Human Capital Index, Sri Lanka placed 60 of 124 countries, ahead of China and one place behind Vietnam. The World Bank, for another, highlighted the importance of Sri Lanka’s early stage investments in health and education in reducing infant mortality rates and – more pertinently in this instance – increasing average life expectancy. Human capital is important inasmuch as it plays a part in improving the country’s competitiveness; the issue brings with it certain challenges when it comes to financial planning and social spending. World Finance spoke to Rajkumar Renganathan, Managing Director and CEO of Ceylinco Life Insurance about Sri Lanka’s ongoing demographic changes, the changing labour market and the growing importance of retirement planning.

Retirement planning
Founded in 1988 with a view to creating Sri Lanka’s premier life insurance company, Ceylinco Life has since done just that and is today a leading voice on the subject of insurance and retirement planning.

The company featured heavily in May when Sri Lanka played host to Retirement Planning Month, an annual campaign in which the country raises awareness about the importance of planning for the future. “The campaign in 2015 focused on an area that has significant impact on retirees and retirement planning, which is inflation. This spurred the campaign, aptly themed ‘How Much is enough?’ enabling the public to think about the funds they have saved for retirement, and whether it would be sufficient for their retirement, due to inflation”, said Renganathan. “The campaign raised significant awareness among the masses, conducted through both mass media and below-the-line activities.”

Asked about whether people are working longer as a result of an economic slowdown the world over, Renganathan said: “There is no conclusive data to support this. However with the economic slowdown it is apparent most people have looked for alternative forms of investment such as real estate in order to sustain themselves for the future.”

On top of the inflationary considerations, there are further challenges facing retirees in Sri Lanka, and Ceylinco Life aims to not only raise awareness about these but also play a key part in overcoming a great many of the country’s larger obstacles. Inevitably, the cost of living is greater now than it has been in years past, and for as long as the country’s fortunes continue to improve the cost of living will increase in kind. On top of that, the majority of the population lacks social security coverage, which brings its fair share of problems, and there is poor access still to high-quality health systems, which are not yet ready for the influx of visitors.

Sri Lanka’s insurance market is highly under-penetrated still, and will continue to be so in the medium-term if industry forecasts prove accurate. Despite clocking up impressive economic growth, over seven percent for 2015 by most estimates, income levels are still relatively low and a lack of awareness about its benefits has inhibited its progress on a national scale. The sector has grown for the most part, albeit modestly, for over a decade, yet lack of education means that few are informed enough to buy insurance or plan for retirement without first consulting with an expert.

Different walks of life
Fortunately Ceylinco Life is well placed to assist individuals when it comes to making preparations for retirement. “Our 4,000-plus sales force understands the significance of retirement planning and they take this message to people across all walks of life”, said Renganathan. “They are equipped with product knowledge and technical expertise. Most of our agents are equipped with android tablets/laptop etc. to provide speedy information to policyholders and they’re able to arrive at the retirement fund a person would need at retirement, upon doing a thorough ‘need analysis’.”

Given that the current market interest rates for savings and fixed deposits are comparatively low, according to Renganathan, the Ceylinco Life Retirement plan provides people with a better retirement option than what’s available in the market. Asked about some of the common mistakes that the population makes when it comes to planning for the future, Renganathan believes that many fail to account for the intricacies of a retirement plan and how changes in the future can alter investments in the present. Not considering future plans at a young age and waiting until they reach the retirement age, for example, leaves the person in question with little to put aside for their future. Another common mistake, and one that featured heavily in this year’s Retirement Planning Month, is a failure to factor inflation into the equation. Sole dependence on a single investment and a tendency to rely on volatile investments also rank among some of the more common mistakes made, and the majority of these issues boil down to saving based on current needs and not considering future requirements.

In answer to the market’s prevailing challenges, “The Ceylinco Life Retirement Plan is a comprehensive retirement product, which allows customers to save and accumulate a large sum for their retirement. It also builds in life cover in the event of the death of the policyholder”, said Renganathan. The product makes good on two of the sector’s biggest problems: first, an under appreciation of the need to think about retirement earlier, and second, an unfamiliarity with the benefits that insurance can bring to customers.

Living in comfort
“A retirement policy ensures a happy and comfortable life for you and your loved ones when you retire. It is never too early or too late to plan for your retirement. Investing a small monthly premium policy will make it easier for you to retire when the time is right. If your hope is to retire rich, you have the flexibility of investing more on a policy”, according to Ceylinco Life, which prides itself on the ability to tailor its products to fit individual customer specifications.

Renganathan adds that the Ceylinco Life Retirement Plan can be customised depending on the individual. What’s more, it can be started with a minimum of LKR 1,000 (approximately $7.45) and customers can pay premiums on a monthly, quarterly, half-yearly or annual basis, which again introduces an element of flexibility into the mix. Customers can even make a single investment and watch the fund grow throughout his or her term. The plan can be obtained for a minimum of five years and continued until the customer is 70 years of age. For another, the accumulation rate offered by Ceylinco Life is by-and-large higher than bank and fixed deposit rates offered by local banks, which is due in large part to the performance of the investment portfolio of the company. Lastly, in the event that the premium is not paid, the policy will not lapse, rather, the fund will continue to accumulate. These points together make for an attractive package, and promise to improve retirement planning across Sri Lanka as the country enters into a challenging time.

Speaking on what the future holds for Ceylinco Life, Renganathan says that the goal for the company is to raise awareness about the importance of retirement planning, and, as a means to this end, increase the company’s manpower. Should the company continue its good work on this front, expect to see Sri Lanka’s understanding of retirement planning improve considerably.

The general insurance market is a major force in Thailand’s growing economy – helping to drive it forward, while also providing invaluable social and business assurance. The industry is an integral aspect of economic development for the country by providing a platform for financial stability, as well as facilitating opportunities for business expansion. Recent political and economic conditions in Thailand however, have restricted the country’s GDP growth, as well as the level of contribution achievable by major industries.

Following various setbacks in recent years, it seems that the country is returning to its former promising route of development and stability. Once again, playing a pivotal role in the country’s growing financial strength is the insurance industry. One company that stands out in particular for its contribution to the Thai economy and society is Viriyah Insurance, winner of the World Finance award for Best General Insurance Company, Thailand every year since 2011 to date. World Finance spoke with Pravit Suksantisuwan, Deputy Managing Director at Viriyah Insurance about Thailand’s insurance sector, and the various opportunities that are now arising in it.

Following various setbacks in recent years, it seems that [Thailand] is returning to its former promising route of development and stability

How has Thailand’s non-life insurance industry evolved?
The general insurance industry plays a very important role in Thailand’s economic development and enhancing the population’s social wellbeing. To put this into perspective, general insurance in Thailand has a consistent average growth that is double the rate of GDP growth. Direct premiums are a major factor in this continued growth as Thailand’s insurance penetration is still relatively low at only 5.9 percent of the GDP.

Despite its success, the general insurance industry in Thailand has slowed during the past two years to one percent growth, with the average direct premium valued at only 205bn Thai baht ($5.7bn) (see Fig. 1). This is due to various negative factors that have transpired in the aforementioned period. The economic situation, political climate and declining automobile sales have all directly affected auto insurance premiums, which are the main revenue stream in Thailand’s general insurance industry. That being said, direct premiums are expected to increase to 223bn Thai baht ($6.2bn) in 2015, with an estimated business expansion of five percent during the second half of the year. As a result of increasing stability, automobile producers are planning to manufacture new models as they predict an increasing number of orders in the coming months.

What are the biggest challenges and opportunities for the Thai non-life insurance industry?
The liberalisation of the ASEAN and the Asean Economic Community (AEC) is both a challenge and an opportunity for Thailand’s general insurance business. While it presents a far broader customer base, Thai insurers will now have to compete with strong foreign insurers, as well as domestic rivals. As such, it is crucial for industry players to make preparations in terms of their human resources and operation systems. It is also important that insurance companies encourage the development of innovative insurance products that correspond to the public’s risks, needs and preferences.

Are there any recent reforms that we should be aware of?
The Office of Insurance Commission (OIC) has been closely regulating Thailand’s insurance market for many years and now aims to bring it in line with international standards. In order to raise Thai awareness about the benefits of insurance, the OIC has introduced the Third Insurance Development Plan, which will come into effect from 2015 to 2019. This plan is expected to contribute significantly to Thailand’s economic growth and will allow the market to benefit from the continued economic integration of the Asian region, which includes the Greater Mekong Sub-region (GMS).

The plan involves enhancing industry standards, enforcing greater corporate governance and increasing transparency. Making the qualifications needed for an insurer to operate more stringently is another important step in the plan, which entails increasing the minimum capital levels and foreign ownership participation. The OIC also aims to make the industry more competitive by encouraging the introduction of innovative products, as well as the de-tariffication of premium and commission rates. Finally, the plan will help the industry to attract better talent by raising greater public awareness and establishing a new image.

How has the company led developments in the non-life insurance market?
In order to improve the quality of our claim services we are adopting new technologies for car accident inspection and repair, which will increase customer satisfaction and reduce unnecessary costs. This will also encourage innovation in Thailand’s competitive non-life insurance industry to the benefit of both providers and consumers.

Examples of innovative services that we have recently introduced include the Viriyah Smart Claim, which uses mobile devices and Google map technology to provide the precise location of an accident. This allows our claim inspection staff to reach the accident scene promptly. We have also developed a zoning strategy with assigned accident inspectors to ensure that all areas are covered when an accident occurs.

Given that the number of cars in Thailand has risen significantly in recent years, Viriyah Insurance has implemented ‘Fast Track Repair’ to assure our customers that minor damages will be fixed within 24 hours. We also control the quality of repairs in our approved garages through live video conference technology, which allows us to track repair progress and provide approval remotely.

How does the insurance industry contribute to the country’s overall economic development?
Receiving a small advanced premium in exchange for the promise to cover losses from unexpected events in the future offers peace of mind to both individuals and businesses. Insurance also enables families and businesses to remain financially stable when unexpected events do actually occur.

The insurance industry also promotes economic growth as it is a major investor – insurers invest some of the premium funds they receive to generate profit, which ensures that they have sufficient capital to cover operating costs and future losses. In addition, the industry is a major employer for marketing, underwriting, accounting, investing and claims. Therefore, insurance companies provide many job opportunities for unemployed people, which also help to promote economic growth.

Another way that the industry contributes to the overall economy is by acting as a source of credit as it helps people and businesses to receive loans more easily by providing protection to their goods or properties. This allows them to acquire more capital to either spend or invest back into the economy. Finally, the industry reduces the government’s burden by encouraging individuals to take care of themselves through purchasing insurance and enabling the government to use state funds more efficiently.

How does Thailand’s non-life insurance market compare to neighbouring nations?
In the ASEAN, the nature of insurance companies varies from state-owned or captive insurers of government corporations in Vietnam, to family-controlled companies in Thailand, conglomerates in Indonesia and banking groups in Singapore and Malaysia. There are differences in the maturity of insurance from country to country, which can be classified into three groups: matured, developing and beginning insurance systems.

Non-life premium growth is expected to remain strong in emerging Asia in 2015, driven by solid economic performance and favourable government policies. For instance, Indonesia’s new government is carrying out pro-growth structural reforms, including increased spending on infrastructure, which should boost the demand for non-life insurance.

While Thailand’s economy has been suffering from the political landscape, we can now expect premium growth as the situation becomes more stable. On the other hand, regulators in Malaysia are introducing a full de-tariffication of motor insurance in 2016, which could erode the margins for non-life insurers as competition increases.

In terms of solvency regulation, only half of the ASEAN countries, including Singapore, Malaysia, Thailand, Indonesia and the Philippines, have applied Risk Base Capital (RBC), while capital based regulation is still applied in the other countries.

How important is technology in boosting performance and customer satisfaction?
We strongly believe that technology plays an important role in doing business in the modern world. New technologies have been integrated into our core services, such as underwriting, car accident inspection services and back office claim functions. As a result, policies can now be purchased and renewed much more quickly through our newly established online channels.

New technology creates faster, friendlier and more reliable services for our customers and enhances their level of satisfaction. We have found that exceeding customer expectations reinforces customer loyalty, which is crucial for Viriyah Insurance to maintain its leading position in Thailand’s non-life insurance market.

What are your ambitions for the future of the company and the industry as a whole?
We will continue to adhere to the principles of good governance and transparency, while always giving careful consideration to the interests of all stakeholders in line with our businesses management philosophy: ‘fairness is our policy’. We have won the first prize as non-life insurer with best management for three years in a row, and we will continue to uphold our reputation, perform our duties with excellence and provide security and sustainable prosperity for Thai society.

Despite its maturity, the insurance industry in Hong Kong continues to flourish, showing impressive revenue growth year-on-year. For the first half of the year, total gross premiums amounted to HKD 184.9bn, rising by 13.6 percent from the same period in 2014 – according to figures published by the Office of the Commissioner of Insurance (OCI).

Rated as the number one general insurer in Hong Kong (see Fig. 1), AXA GI is among the most innovative in town. By engaging frequently with customers and understanding how individual needs vary, AXA GI is able to provide the best customer service on offer in Hong Kong, while the company’s continuous product development and efforts to tap into technological advances in the field enable it to stay on top of the game. World Finance spoke with Chris Read, Chief Property and Casualty Officer at AXA Hong Kong, about what makes the company the territory’s best and how it achieves continual growth.

In Hong Kong we see digitalisation playing an increasingly important role in the industry

Could you tell us a little bit about AXA GI?
AXA GI is a general insurer in Hong Kong with steady and strong business growth every year. Following the acquisition of the general insurance business from HSBC Insurance (Asia), we have been rated as the number one general insurer in Hong Kong since 2012 based on gross written premium. As of December 31, 2014, our gross written premium reached HKD 3.65bn, which grew by 4.28 percent from 2013. Furthermore, the financial strength of AXA GI is internationally recognised; Fitch Ratings has given us an AA- Insurer Financial Strength rating. Our market leadership in property and casualty business puts us in an excellent position to leverage our multi-channel distribution capabilities in order to fully capture the vast business opportunities that arise from the growing demand for financial protection in Hong Kong. We offer a full spectrum of products for both individual and commercial customers, including, but not limited to, motor, household, health, accident and travel insurance, as well as comprehensive trade specific plans designed for corporates and small and medium-sized enterprises (SMEs).

How are your insurance products able to stand out in the market?
At AXA GI, our strategy has always been driven by customer demand and we aim to satisfy our customers’ protection needs in every stage of their lives. Over the year, we have redefined industry standards by driving differentiation and innovation in the market.

For commercial products, every single solution is tailored for the individual needs of the customer via a thorough underwriting process. Furthermore, we always ensure that all regulatory requirements and cover limits are met. While for individual packaged products, we constantly review our product offerings and cover limits in response to market demand and changing customer needs. For example, we extended benefits of travel insurance in response to the Outbound Travel Alert System introduced by the Security Bureau.

In order to meet the individual needs of customers, we provide options with varying levels of cover, as well as the option to upgrade to a higher-level plan at any time. We believe in the importance of listening to the voices of our customers and distributors and collecting their feedback on a regular basis – this is a core process in our product and service development.

How do you ensure that your customers receive an efficient service?
From the beginning, we have built a solid customer-centric culture at AXA. At the heart of everything we do, there are three core values: availability, reliability and attentiveness. Our primary focus is making it as easy as possible for customers to access our expertise and advice.

We organise regular training for our customer-facing staff and constantly challenge ourselves to enhance existing services, at the same time continuously reviewing and fine-tuning established rules and practices as our experience deepens. Take our claim process on motor insurance as an example; we recently reviewed and simplified our motor claims process in order to create a more satisfying customer experience. We achieved this by focusing on three areas: simplifying claims filling – our motor claim form is now one of the simplest and shortest in the market; expediting repair approval – we are the only insurer in town that can make a 24-hour motor claims service guarantee; and we always keep the customer informed on the claim progress through SMS communication. Given the success we’ve had in revamping our motor claim services, we have also conducted similar exercises in other business lines, such as marine cargo, personal accident, property, third party liability and travel.

What additional services are you committed to providing the public or your customers?
We continue to invest significantly to improve customer experience, which includes developing digital platforms to facilitate interaction with customers. One good example of this is the AXA@Work smartphone app, which allows our customers to check the status of their claims anytime and anywhere. Our innovation in digitalisation is solid proof of our commitment to customer centricity and how we aim to improve the customer journey.

At AXA GI, we all share the ‘born to protect’ commitment. We pride ourselves as ‘people protectors’ and take it upon ourselves to protect people beyond insurance. For example we present the ‘three-day swift claim’ service promise to fully support SME owners in protecting their businesses and their employees. Our influence extends from the products and services we offer, through to the way we support our communities and care for the environment. For example, we conduct a regular road safety survey to examine driver perceptions, behaviours and knowledge in relation to road safety issues, in order to promote safe driving and raise public awareness.

For four consecutive years we have also supported the Orbis Blindfold Lunch, an event to help students understand the importance of eye-care and encourage them to support the visually impaired around the world. Our unwavering commitment to corporate social responsibility has been recognised by the Hong Kong Council of Social Service as a ‘caring company’ for 10 consecutive years.

What are the greatest challenges and opportunities you face?
Hong Kong is a mature and dynamic market. According to the OCI, as of December 31 2014, there were 95 pure general insurers and 19 composite insurers, offering both long-term and general insurance products. Last year, the gross premiums of general insurance business in Hong Kong recorded a growth of 4.2 percent to $43.9bn from 2013. Overall, underwriting profit was maintained at $3bn, which is on a par with that of 2013. This single-digit growth rate reflects how the market in Hong Kong has matured.

Having said that, Hong Kong is still a competitive market with great potential. We have a strong commitment to the market and we will continue developing innovative solutions and service enhancements to differentiate ourselves from competitors. Integrating business portfolios and systems with HSBC has been one of the key challenges for us in the past two years, but it also poses a great opportunity for us to leverage the strength of two global financial companies in order to create more value for our customers and maintain growth.

We strive to maintain and strengthen our leading position in the market by offering innovative solutions and service enhancements that meet customer needs. We also aim to offer differentiated services to valued customers, as well as digital solutions for simple selling and easy to use services. Another objective is to deepen our penetration in the SME segments and strengthen our brand positioning as the preferred insurer in Hong Kong.
How are you adapting to industry trends in 2015?

In Hong Kong we see digitalisation playing an increasingly important role in the industry. Customers are looking for easy-to-manage services, therefore insurers have to invest in developing its digital platforms so as to enhance customer satisfaction and stay competitive in the market. Hence, we have been enhancing our digital and online distribution platforms in order to capture the vast opportunities that are arising from advancing technologies. Some examples include our online solutions for motor and travel insurance, as well as another smartphone application that we are about to launch.

What does the future hold for AXA GI?
Over the years, AXA GI has seen tremendous growth. Our long-standing history and comprehensive range of products, as well as our strong distribution networks, put us in a great position to continue achieving strong and profitable growth in Hong Kong. As people protectors, we are committed to putting our customers first and we will continue to deliver superior protection solutions that address their needs. With solid experience and sound track record, we strive to become the most preferred and trusted partner for our customers.

In June 2015 a city located on the North Island of New Zealand saw its worst flooding on record. Overnight, Whanganui was cut off from much of the rest of New Zealand, and split in half as its major bridges were closed. Over 100 properties were affected and hundreds of people evacuated. The response to this freak weather event by TOWER Insurance was rapid and decisive. “We immediately took action and dispatched claims and assessing teams to the region”, said Vanessa Dudley, TOWER’s General Manager of Customer Interaction.

“TOWER Insurance was the only insurance company on the ground immediately after the floods, and set up an emergency centre to assist our customers”, added Dudley. Further, the staff dispatched to Whanganui went on to manage the claims from the region, providing much needed first hand knowledge of the situation, and offering customers a seamless service, after such a larger-than-usual incident. This represents the core of TOWER’s business philosophy, which is to put the customer at the heart of its business.

In the event of extreme weather, customers are sent text or social media alerts to give them warning and time to prepare

Knowing core clientele
The winner of the World Finance award for Best General Insurance Company 2015, New Zealand, the company structures its approach to business around its customers. “TOWER Insurance’s vision is to be the leading light in New Zealand and Pacific general insurance”, said Dudley. This involves listening to customers and addressing their needs via multiple channels. It is a customer-centric philosophy, and it is ingrained in the company’s culture.

“We live and breathe our vision through collaborating teams working together in functions dedicated to providing a connected customer experience.” One way in which this goal is achieved is through integrating different areas from the workforce into one floor, allowing for collaboration between people from different departments, with an eye on producing the best solution for the customer. As Dudley explained, “Our marketing and product people sit on the same floor as our sales and service people, so everyone can hear and understand customer issues.

“We are an agile business in a market principally dominated by big international brands. Our success is based on our ability to listen to customers, and adapt our products and delivery models to meet their needs.” The company has set up its SmartCentre, which is a comprehensive online tool to assist customers with practical information, tools and resources, which TOWER describes as a “one-stop information resource full of tips and tricks and useful guides so that you’re always in the know”. For instance, the SmartCentre gives useful tips on how to be a safe traveller, safety tips in the event of a cyclone, a checklist to ensure safety during a storm and a checklist of information one should gather from other involved parties in the event of a motor crash.

Embracing the digital age
TOWER has a long history, operating in New Zealand for more than 140 years as well as having a longstanding presence in the surrounding Pacific Islands. Its rich history stretches back to 1869 when the Government Life Insurance Office was created. In 1953 it become its own statutory body and in 1987 became known as TOWER Corporation. Ownership was then passed to a mutual association after the 1990 passing of the TOWER Corporation Act.

The company undertook a demutualisation process in 1999 with the approval of its policyholders and the High Court. The effect of this was to convert TOWER’s legal status to a shareholder owned company. Subsequent to the demutualisation, TOWER Limited undertook a listing on the Australian and New Zealand stock exchanges in September 1999. Over the last three years it has divested itself of various business lines, life, health and investments, retaining and focusing on the general insurance business.

Yet it is not outdated. It is a forward looking company, always seeking to find new ways to adapt and move with an ever changing world: “We’re constantly moving with the times and are embracing the digital world”, continued Dudley, “As well as leading the way with innovative technology and new ways of working – designed to put customers first.” It has successfully utilised modern communication technology, and indicative of its forward-looking approach, TOWER was one of the first insurance companies in New Zealand to integrate social media into its operations. “We have had an active social media presence across Twitter, Google+ and Facebook since 2011 – we were one of the first insurance companies in New Zealand to do so”, said Mark Savage, General Manager of Customer Proposition.

In the event of extreme weather, customers are sent text or social media alerts to give them warning and time to prepare. Customers can also use social media to communicate with TOWER. “Many customers use Facebook for product or service queries, and we’ve got a frontline team responding to these daily”, Savage told World Finance. The company is committed to investing heavily in the development of its digital infrastructure, shown by a number of initiatives. One of the insurer’s most innovative digital developments has been its award winning SmartDriver app. The first of its kind to be launched in Australasia, the app enables customers to get discounts on their motor vehicle premiums as a reward for safe driving.

It also creates an incentive out of friendly competition. “The app taps into many New Zealanders’ innate competitiveness, allowing customers to pit their driving performance against family and friends”, Savage explained. Alongside this app, TOWER has also launched the Claim4Car app, which helps customers collect the required information they need at the scene of a car accident. As Savage added, “Our Claim4Car app guides users through the information they need to collect at the scene of an accident. It automatically generates a claim report which goes straight to TOWER Insurance to start the claim.”

The company has continued to keep pace with the ever-changing world of how customers are connected with businesses. Increasingly, consumers are using smartphones to conduct their online banking, shopping and, of course, keeping up with their insurance plans. Often, websites designed for access on desktop computers or laptops look unattractive and are hard to navigate on a mobile phone. It is for this reason that Google has decided to determine how high a website appears in search results based on mobile-user friendliness. It is fitting, then, that one important aspect of TOWER’s digital growth strategy this year has been the launch of new mobile friendly websites, making them more compatible with online mobile phone use.

Keeping everything together
This year saw TOWER partner with Trade Me, New Zealand’s largest online trading website to launch Trade Me Insurance, which provides online insurance offers. The streamlined service allows customers to easily get a quote online, buy an insurance plan, make a claim and manage their policy. According to Savage, the initiative “Promises to provide Kiwis with peace of mind around their home, contents and car insurance, but without the painful process”, and “is a real milestone for us.”

TOWER has seen considerable financial success lately, and has consolidated itself in a strong financial position. Its general insurance business performed solidly in the half-year to March 31 2015. This period saw gross written premiums grow by an impressive 4.9 percent, reaching a value of $145.9m. “We have also been extremely proactive over the past 18 months in increasing our reinsurance cover to reduce volatility and protect our capital base”, said Dudley. “TOWER Insurance remains very well capitalised”, she continued, “and we are proud to have a financial strength rating of A- from AM Best Company”, as of July 24 2015.

None of this, however, has left the company content. With an eye to the future, it has instituted a number of changes and initiated expansion into new markets. The Pacific Islands region is plagued by a lack of insurance and underinsurance, and TOWER plans to make a growing contribution to the area’s overall performance. Most recently, “we opened a new branch in Vanuatu”, Dudley said.

TOWER has also had a major revamp in its branding. “We’ve renewed our brand position to build on our strengths and focus on what our customers tell us matters most: insurance confidence”, noted Savage. This includes refreshing the TOWER company logo, website and TV commercials, while, Savage points out “staying true to the history, stability and reliability our customers value.”

To see TOWER through these changes, the company has recently appointed a new CEO, Richard Harding. With nearly 30 years of experience in the Australian and Asian insurance sector and having previously served as CEO of Territory Insurance Office, the leading general insurer in the Northern Territory of Australia, Harding is well placed to take on such a role. “Coming into the role fresh and from outside of New Zealand, he will bring a wealth of experience, drive and energy to the business”, said Dudley. With a new CEO, a branding revamp, customer-focused philosophy and increasing investment in the digital frontier of insurance, TOWER’s strong position looks set to continue.