Zurich commits to new simplified and customer-centric approach

Although one Belgian risk manager asked during a meeting with Commercial Risk Europe this week: "Who were they focused on before?" Not a bad question. Despite such obvious questions, one cannot deny that in the global corporate market Zurich has a hard-earned reputation for technical excellence and highly skilled and dedicated staff. It is undoubtedly a market leader in key areas such as global programmes. The problem for Mr Greco, who used to work for Zurich before taking control of Generali, is that few who work for the Swiss insurance group would claim that it is the most dynamic, fast moving and outward looking organisation. Most would surely agree that Zurich, as with its rivals, needs to shake off the shackles of the past and grasp the opportunities offered by the fast-changing, technology-based global economy. Thankfully it seems that Mr Greco and his team have accepted this fact and have publicly promised to act.hideInvestors and policyholders must hope that Mr Greco has the strength of character and internal and external support he will need to push this big cultural transformation through. So what is going on in Zurich that is going to liberate all that talent within the group and make sure it is put to work for customers' benefit? Last week the insurer announced that it has begun a process to "reshape and simplify the group to create a framework for enhanced future success". The company announced that over the coming months it will move to a simpler and more customer-oriented structure. It hopes this will reduce complexity, create greater accountability and empower teams to deliver products and services in a "differentiated" way. Zurich promises decisive action to reshape the business to create a platform on which it will build a longer-term profitability strategy. "The new structure will enable countries to strengthen customer relationships with a comprehensive customer view. The global businesses will continue to expand and deepen their footprint by offering broad risk solutions - both life and non-life - to customers around the world," said Zurich. The embattled insurer, which has reported some poor results of late, largely on the back of poor underwriting decisions made in the US and within its Global Corporate operations, said that the new structure is an "acceleration" and "globalisation" of work already underway in key markets such as Switzerland, Germany and Italy. The new approach will combine life and non-life under one leadership team and apply a "unified go-to-market approach", said the company. "This new organisation will be more agile and more accountable, with a clearer line of sight between the top of the company and the people looking after our customers," said Mr Greco. "We will approach our target customers with a unified and distinctive face to the market. We will prioritise sound customer outcomes and in so doing ensure that the business delivers consistent levels of profitability," he continued. Mr Greco, who joined the group from Generali after the departure of former CEO Martin Senn, said he wants to see Zurich renew its "ambitious, entrepreneurial and innovative" culture. He wants to see talented team members put the customer at the centre of everything they do and be given all the tools needed to develop their business. To help turn all these fine words into reality, Mr Greco, not surprisingly, unveiled a new leadership structure. Under the new system Zurich's regional heads - North America, Europe Middle East and Africa (EMEA), Latin America and Asia Pacific- Global Corporate, Farmers and Investment Management will report to the Group CEO. "Their people will be focused on first-class global and local provision of the right mix of products and services to help customers understand and manage risk," said the company. Zurich has also created the new role of chief operating officer. This will combine responsibility for operations and technology with underwriting, claims, reinsurance, actuarial and pricing. Zurich hopes that this will deliver a more "unified sense of purpose and responsibility for technical excellence, efficiency and business transformation" across all parts of the business. The insurer said that the new role will also, hopefully, enhance its ability to manage costs. The Zurich executive committee, effective 1 July, will comprise the following members: Mario Greco - Group CEO Urban Angehrn - Chief Investment Officer Jeff Dailey - CEO Farmers Mike Foley - CEO North America George Quinn - Chief Financial Officer Cecilia Reyes - Chief Risk Officer Gary Shaughnessy - CEO EMEA Kristof Terryn - Chief Operating Officer. It is understood that Thomas Hürlimann retains leadership of the group's Global Corporate operation under the new structure. "This new organisation and strong accountability, empowerment and outcome orientation will be the foundation for our future strategy. We will see greater market focus and simplification, and deliver the transformation we need for future success in a disciplined way," continued Mr Greco. "The simplified structure will also allow us to become more efficient and support the implementation of our communicated cost reduction programmes," he said. Zurich said that the decisions are a response to the "changed dynamics" of the insurance industry and the "turning point" at which Zurich finds itself. Zurich is by no means alone in finding itself at a turning point. Risk and insurance managers across Europe and worldwide agree that insurers need to seriously up their game in order to meet customers' fast-changing and increasingly complex risk management and transfer needs. Zurich hopes that its new structure will promote "innovative thinking" and meet the "demanding" expectations of customers, employees, shareholders and the broader societies in which it operates. "The prospects for the insurance sector are strong in a world of proliferating risks, but the company must adapt to remain effective at helping customers manage those risks," stated the company. "Zurich is a sound business with an excellent brand, a strong capital position and adequate reserves. The company has excellent people around the globe and I count on them to shape our successful future. The business has been improving its profitability in recent months, as evidenced by 2016 first quarter results. The changes announced today reinforce this positive momentum," concluded Mr Greco.

Zurich commits to new simplified and customer-centric approach

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