Mapfre steps up game with brokers

Chris Smith was appointed to the newly created role of chief global brokers officer at Mapfre Group at the end of last year. A well-known figure in the London and international insurance market, he was previously head of European business and chief regions and market officer at Mapfre Global Risks. This is the corporate arm of the Spanish group that was merged late last year into Mapfre Re, as part of the group’s ongoing wider reorganisation.

Commercial Risk Europe’s Adrian Ladbury caught up with Mr Smith in London to find out what his new role involves and why Mapfre, traditionally a direct-focused insurer, has decided it needs to focus investment on brokers at this stage in its evolution. Mr Smith also explained how he sees the broker role evolving and how intermediaries can continue to add value against the backdrop of a fast-evolving market place, under intense cost pressures.

Adrian Ladbury [AL]: What exactly is your new role at Mapfre? What does a global brokers officer actually do?

Chris Smith [CS]: Over the years, during my career, I have worked for a number of major insurance firms and this new role is the most exciting to date. I have the opportunity to work globally across all lines of business and for Mapfre, with its reputation for looking after the needs of clients, large and small. My role is to build the strongest possible link between Mapfre and global brokers. We want to be clear to the brokers regarding our value proposition and appetite, across all product lines and geographies, to our mutual advantage. We also want to build valuable long-term, strategic, tripartite relationships, to the benefit of brokers, their clients and, naturally, Mapfre.

[AL]: Why is this newly created role needed?

[CS]: This is a new role reflecting the growing need for the group to manage this important channel. At Mapfre, we are focused on transforming to grow and improve profitability. We can do this more efficiently by creating a compelling proposition in partnership with brokers – that have a deep, genuine knowledge and insight – and end clients, worldwide.

[AL]: What kind of brokers will you be dealing with by size and type? Is this role focused on large corporate and specialty business, or does it include mid-sized business too?

[CS]: In terms of my role, it is across the breadth of Mapfre, including reinsurance, specialty, large global commercial, middle market, SME, personal lines, life and health. Initially we are looking at the top five global brokers, where we can offer the capacity, knowledge and expertise needed to cover large-scale and complex risks. We then plan to move on to the next group of brokers when we have demonstrated the added value of a coordinated approach across all lines and geographies.

[AL]: Why does a group like Mapfre need a specific function to look after brokers?

[CS]: One of Mapfre’s strengths is its ability to manage multichannel distribution, and this naturally includes global brokers. The group is focused on making all channels and all products profitable, with both operational and technical improvements. As with any other distribution channel, brokers need to be managed and coordinated to ensure that the relationships are aligned to Mapfre’s strategic direction. The global broker channel already forms a significant proportion of Mapfre’s total written premium, however the group is keen to find new avenues for growth. Brokers can provide these opportunities with their global reach, particularly in emerging economies with new insurance buyers. In return, we offer our strong client focus, significant resources and specialist underwriting, risk and claims expertise.

[AL]: On the assumption that your role aims to maximise the revenue you generate from larger brokers, what does Mapfre need to do to ensure it is winning the best business from brokers?

[CS]: Firstly, we offer the strength of our balance sheet, first-class security and specialist underwriters. But more than that, we offer the value of the Mapfre brand, with our corporate reputation as a sustainable and socially committed company. These values are becoming increasingly important to forward-thinking companies worldwide.

[AL]: What does sustainability and being a socially committed company actually mean? How does it improve the bottom line?

[CS]: To quote Antonio Huertas, our chairman and CEO, at Mapfre we believe that economic growth needs to align with a sustainable contribution to the wider community. We believe this to be a genuine differentiator. Naturally, like all businesses, we wish to maximise revenues from geographies and product lines where we have an appetite. But we see this as more of a partnership, which can benefit brokers and clients by giving them access to Mapfre’s focus on innovation. We are also happy to partner with global brokers to identify new business for them, and work together to develop these opportunities. This is a win-win for us and the brokers, but also new clients too, who will benefit from this approach.

[AL]: Will you also be involved on the claims side, making sure the brokers are doing the job for customers? Or are you mainly focused on retention and sales?

[CS]: The role reports to Mapfre SA board level and is looking at the full extent of the relationship between the group and the clients of these brokers. This is not a sales role. Claims are the lifeblood of our business and a strong differentiator for Mapfre, with our strong reputation and focus on looking after clients when the worst occurs, swiftly and fairly.

[AL]: What is your view of the future of the commercial and corporate insurance broker? What do brokers need to do to ensure they survive and prosper in the digital age?

[CS]: Over the years, I have worked with many broking houses, and one thing that has remained constant throughout is the need for brokers to focus on where they add value to clients. If brokers wish to focus on commoditised business, then they have to be better than any carrier, or other distribution channel, at embracing digital technology. If they want to focus on advisory and consultancy, then they have to be better than the big consultancy houses. The brokers I know are working particularly hard on the latter, often delivering genuine innovation to clients’ advantage. We look forward to working in partnership with these brokers.