Reflecting on 2016, Jared King says AIG is currently undergoing significant transformation, in the process creating a “leaner, more profitable and focused” organisation.
“Our focus and execution in Australia has predominantly been on underwriting improvement that is matching pricing with risk exposure,” he says.
“We also announced two further managing general agent agreements with Nautilus Marine and MECON … this is breaking ground for AIG in Australia, and we are really excited and encouraged by the level of professionalism and leadership of these underwriting agencies.”
In 2017, King says AIG will continue to focus on its intermediated distribution sources and partnerships as it expands its footprint into SME and middle-market commercial businesses.
“We have some exciting opportunities on the horizon and the key for us will be to execute these in a timely manner, whilst improving processes and efficiency, and above all provide a level of claims service that is valued by brokers and clients alike.”
Turning discussion to challenges, King says, “I think the industry will find it challenging to achieve financial targets with increasing shareholder expectations of acceptable profit margins accompanied by sustainable growth and reduction in management expenses.”
King believes organisations that make innovation a business priority, while recognising new entrants or disruptors, will possibly set themselves up for greater success down the track.
Still on challenges, King says, “I believe the pace at which the digital world is moving … is challenging us all to be flexible in our thinking, and what the world offers tomorrow will be very different to that today. Whilst most of what we see so far might have more relevance to consumer buyers, the evolution of sharing economies may [impact] how SME business is traded in the not too distant future.”
He adds, “Regrettably, cyber-risk threats and exposures to consumers and businesses alike will continue, so there is an increasing need for awareness, resilience and a strategic risk management plan.”