M getting the right structure and people in place. It is tough to walk away but you have got to hold your nerve.” Munnoch promises that the months running up to the end of 2011 and 2012 are set to be interesting with an increase in capacity and product launches. Drawing on RISKSA’s reference to Zurich as a sleeping giant in an earlier article, Munnoch said: “We are a giant and we have been sleeping but we are now really moving on getting that capacity in and have had very strong and upbeat conversations with all the key global brokers. We, unlike others, can leverage our global capability. We are already driving growth in marine, engineering, high net worth and liability. We are launching new products and propositions in the second half of this year around agriculture and hospitality. So there is a lot on the go.” While Zurich’s strengths lie in books of business such as marine, engineering and high net worth, it’s still unclear what the company will do going forward in areas that it is not excelling in. When asked, Munnoch refused to speculate on what would happen but hinted that Zurich could have a rethink on certain books if improvements aren’t made. “We are not at the stage yet [of closing certain books
of business]. But I’ve always said our strap line is that we are the leading empowered insurer in a chosen market. So my personal sense is that if you are not likely to be in the top three over time (and we always think longer term), then why would you be in that particular market? We are there (or there about) but if we ever got to that stage, we haven’t been shy to make those kinds of tough decisions,” he said. Expanding into Africa could also be on the cards. The company has a 100 per cent shareholding in Zurich Botswana and Munnoch admits that it is currently looking at opportunities elsewhere. “We have identified 12 countries and are right at the point on deciding where to move into,” he said without revealing which African countries would appeal. Reinsurance treaties come up for renewal in October. While there has been much debate on whether rates will harden thanks to world catastrophes experienced in 2011, Munnoch is unfazed by that prospect. “If you can get them to move the rates up we will be delighted,” joked Munnoch, explaining that companies would benefit from an increase in reinsurance rates as this would invite insurers to do the same. He added: “But my sense is that despite the
[catastrophes within the] first 10 weeks of this year with Christchurch, Japan, etc, a lot of the reinsurers are not going to shift their rate too much.” So what can we expect from Zurich going forward? Munnoch brings us back to the aim of the transformation which is profit: “We will not chase volume for the sake of it,” he assured. Claims will be handled better, too.” Referring to problems Zurich has had in the past Munnoch said: “When you’ve had a challenge around your service, very often you emerge far stronger, so I am delighted with that situation and our service levels across the board. We have segmented our broker base and they will be benefiting from the proposition. It’s a proper partnership.” Following on from Santam and M&F’s rebrand, Zurich is also set to embark on a marketing campaign, the details of which Munnoch is not yet open to divulge. “With our present positioning and ambitions for the future, it has to be twinned with a marketing campaign. We will roll out a marketing campaign through the backend of this year and the next that will work alongside these company ambitions,” he concluded.