European Insurance Newsletter - Edition 7
In our 7th edition of the European Insurance Newsletter, we feature interviews with two CEOs at very interesting times for both of them. Just before he took up his new post, we spoke to the new Aviva UK CEO, Trevor Matthews, about the challenges that lie ahead. We also met Austin Kimm, CEO of Renaissance Insurance in Russia, at a time when the Russian insurance market is having a more positive outlook (as we found in our joint research with the All Russian Insurance Association).
As the year comes to a close, thoughts inevitably move to the outlook for next year. With this in mind, we conducted numerous discussions with leading senior executives across Europe about their priorities and drew the themes together in our New Year, New Resolutions article. We also consider two more hot content topics: our most recent intellectual capital on the changes in bancassurance post Basel III and our perspective on the importance of ALM.
Interview Trevor Matthews, Chief Executive Officer, Aviva UK
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The New World of Bancassurance
Pre-crisis insurers in Europe were making a growing portion of their sales through third party banks. Some of this sales growth owed to distribution efficiency, but most of it was facilitated by banks' ability to encourage deposit base migration into single premium investments. The financial crisis, new Basel III rules and increased focus on term deposits as a source of funding mean this model is no longer viable. In this Point of View we look at five changes to the now standard model that will help Bancassurance in Europe adapt in order to survive in the new environment.
New Year. New Resolutions.
Over the last few months, we have conducted numerous discussions with leading senior executives across Europe. This article draws together the themes that we have seen are, or should be, on their agendas for 2012, and describes how they are being addressed. Crisis readiness and regulatory change feature heavily, but a number of medium term strategic issues are also coming to the fore, including challenges to existing business models and the opportunities arising from digitalization.
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Managing Volatility: Why ALM Matters More Now Than Ever Before
Given the sensitivity of shareholder returns to investment returns and capital requirements, ALM is the single largest driver of shareholder value - and performance lever for management - for many insurers. However Solvency II is changing ALM and understanding and managing this new dynamic deserves significant senior management attention. This article looks at what insurers need to do to get ahead of the curve, the options available, and the four key areas of focus that will ensure they gain control over their own balance sheet.
