Zurich boss Geoff Summerhayes highlights insurance’s crucial role in society
Zurich boss Geoff Summerhayes highlights insurance’s crucial role in society | Insurance Business Australia
Insurance News
Zurich boss Geoff Summerhayes highlights insurance’s crucial role in society
Tips offered to improve corporate governance
Insurance News
By
Roxanne Libatique
Geoff Summerhayes (pictured), chair of Zurich Australia & New Zealand, addressed attendees at the Zurich Accelerate Strategy & Leadership Conference, discussing the crucial role of insurance in society, the responsibilities of corporate boards, and the importance of ambition for future growth.
The role of insurance in society
In his speech, Summerhayes emphasised that insurance is fundamental to economic stability.
“Insurance underpins most aspects of a prosperous economy and society. In fact, no significant activity, investment, provision of credit, occurs without insurance,” he said.
Quoting former Bank of England Governor Mark Carney, Summerhayes described insurance systems as essential assets that help societies manage risk. He identified three primary methods of risk-sharing:
through global insurance systems;
government interventions; and
individuals or businesses bearing losses themselves.
Highlighting a concerning trend, he pointed out that risks are increasingly shifting from insurers to governments and individuals due to factors like climate change and chronic illnesses. This shift is particularly evident in the property and life insurance sectors, where financial burdens are moving back to businesses and individuals, with governments acting as a safety net.
Summerhayes called for enhanced resilience and collaboration among stakeholders, advocating for the use of data and technology to improve risk management.
Insurance board responsibilities
Discussing the role of the board, Summerhayes referenced Catherine Livingston’s governance framework, which emphasises direction, control, and capability.
“Control of a business is primarily done through the profit and loss; however, this is a lag indicator and runs the risk of missing forward looking indicators, which is why we also place importance on measures like customer NPS, brand, digital, organisational capability, culture, and other risk insights,” he said.
Effective governance, according to Summerhayes, extends beyond attending board meetings. Directors should engage deeply with the business, understanding its operations and interacting with customers and employees. They also need to stay informed about market, societal, and technological trends to avoid complacency.
“Good governance is so much more than quality board papers and attention to policies and process. At its core, governance is anchored in strategy; as Livingston said: Its centre of gravity is judgement, rather than process,” he said.
Importance of ambition in the insurance industry
Addressing the concept of ambition, Summerhayes encouraged setting and articulating goals in four areas:
the organisation;
professional development;
personal relationships; and
individual health and wellbeing.
“Achievement in two of these categories should be the base; for most of us, this is typically work and family, achievement in three categories is great, with all four you will be unstoppable and leading a big life,” he said. “My learning is that if you articulate a goal or aspiration, in each category, share it with others to engender accountability. Review regularly. The aspirations will accelerate towards you.”
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