Customers must come first says RSA CEO

Mr Hester has earned a reputation for turning around troubled financial services companies. He joined UK banking group RBS as Chief Executive at the height of the financial crisis before taking over the helm at UK insurer Royal Sun Alliance following the sudden departure of its then-Chief Executive Officer Simon Lee in December 2013. According to Mr Hester, RSA previously made common mistakes. "RSA was spread too thin, partly in the hunt for growth and new and exciting things, and in so doing it neglected its foundations," he told Airmic members at the association's annual lecture. He said that RSA has only sold "second tier" and emerging market units, representing just 10% of its business. The non-life insurer is still "international" and has a "global network", said its Chief Executive. "RSA in its revised form will not look enormously different, but it will be better," he added.hide"I joined RSA one year ago with a mission to turn the company around and realise the potential of a company that is rooted in 300 years of history and expertise," said Mr Hester. "The intensity of our focus now is on doing what we do better, and potentially being the best," he said. RSA customers can expect to see "more of the same and better", according to Mr Hester. "You can, and should, expect us to do our job. You can expect us to be hungry for good quality business, and hold us to account," he said. Mr Hester, a relative newcomer to the insurance industry, also said that insurers need to keep improving service and find ways to cater for the diverse needs of its customers. "I am here [at the Airmic annual lecture] to recognise you as the clients of the insurance industry and RSA. If I have learnt anything in my 30-year career, it is this single truism of business: business exists to serve its customers," he said. "It's impossible to exist in the long term without doing that well. But it is easy to become distracted from that central role," said Mr Hester. "It's not the job of business to figure out how to make the most money out of customers, but to provide them with what they need. From that foundation we can serve the needs of other stakeholders," he told Airmic members. Mr Hester said he learnt from his time in banking that businesses not perceived as safe and doing a "good job" will attract unwanted regulatory attention. This can be "politicised" and involve "bureaucratic overreach", he said. There are common threads between banking and insurance, said Mr Hester. These include disclosure and treating customers fairly, he explained, noting that the only way to avoid regulatory intervention is to recognise where change is needed. Mr Hester also discussed risks in an ever-changing world, drawing attention to economic and human issues that are a threat to business. He pointed to economic concerns in Europe and China, falling oil prices, terrorism and the growth of populist political parties in Europe. "The world is not going to run out of risks that need to be managed. Insurance is an essential industry and one the world needs," said Mr Hester. Both risk management and insurance will become more important in a world of uncertain and volatile outcomes, he concluded.

Customers must come first says RSA CEO

Want to read this article?

Read Next

Global data breaches double in 2023 driven by extortion and third-party software attacks

Social inflation set to continue driving US liability rates: AM Best

Zurich appoints Adriana Scherzinger group head of captives

Marsh McLennan achieves ‘Autism Confidence’ status

New management liability policy from digital MGA Aurora

Global data breaches double in 2023 driven by extortion and third-party software attacks

Social inflation set to continue driving US liability rates: AM Best

Zurich appoints Adriana Scherzinger group head of captives

Marsh McLennan achieves ‘Autism Confidence’ status

New management liability policy from digital MGA Aurora

Want to read this article?

Read Next

Global data breaches double in 2023 driven by extortion and third-party software attacks

Social inflation set to continue driving US liability rates: AM Best

Zurich appoints Adriana Scherzinger group head of captives

Marsh McLennan achieves ‘Autism Confidence’ status

New management liability policy from digital MGA Aurora

Related Articles