EXCLUSIVE INTERVIEW with Mr. Abdel Ruhomutally, Managing Director - GFA Insurance Ltd

Abdel Ruhomutally, Managing Director of GFA Insurance Ltd, has many reasons to celebrate. Not only does the company continue to bag international awards, but it also marked its 25th anniversary this year. Here he explains how far the company has come since its early days, the big changes that have occurred in the sector over that time, and what’s next for the firm.

This is a big year for GFA Insurance. You're celebrating your 25th anniversary. This must mean a lot to you as Managing Director. Let us go back to the early days of GFA to start off with.

25 years ago, Mauritius was slowly waking up to a new ecosystem of financial services in what was to become one of the main pillars of the economy. GFA Insurance was born in difficult conditions to provide insurance services for customers. GFA, then known as Groupement Francais d’Assurance, started with no more than half a-dozen employees.

Newcomers were not welcome in a market that was controlled by a handful of long-time players.

When I came back to Mauritius from the UK, I realised that, as is the case for any new business, you had to do it all. Whether it was marketing, underwriting, claims, accounting or HR. You name it, you had to do it all. And as you would expect, the journey so far has not been without storms and heart breaking obstacles either.

Yet, with the joint efforts of the shareholders, employees, clients, well-wishers and the community as a whole, we have learned to pull ourselves together, hurdle after hurdle. We remain permanently steered by our original mission: to provide the right insurance cover at the right price.

How does one sprout from ground zero to emerge as the most popular mid-size insurer on the island?

There is no such thing as an instruction manual that says, “Here’s how to set up a successful insurance company.”

As is the case for many enterprises, we too have had teething problems. The difference, if any, has been the continuous and genuine intention to learn. It has been a nonstop endeavour to “get and do it right” .

This growth is attributed to the dedication and rigour of our team members. It is attributed to the fairness of our pricing. Most importantly, it was due to the satisfaction of our clients: we welcomed clients as they were - without judging them on their appearance and status.

That said, we understand that we still have a long way to go and need to continue improving our products and services.

And how about the industry?

What are some of the big changes that have occurred in the company during that time?

We have been able to shed a lot of those responsibilities to our growing pool of talented people. The appropriate infrastructure, technology and processes were put in place to boost growth. As our clients’ needs evolved, so did our product spectrum and network. More people started turning to us for fairly-priced insurance covers.

Today, over 45,000 clients are catered for through 25 locations around the island. We directly employ almost 110 people and indirectly support another hundred jobs.

The industry in general was very different. It was - and still is - an extraordinarily complex market a few big and powerful players.

However, insurance – like any other sector – also has its share of weaknesses and black sheep. Unless certain things are fixed, mid-sized insurers and smaller ones will continue to face difficult and unfair barriers for progression. So far, GFA Insurance has been the only player pushing for a free and fair market even if that would help each and every one.

We have been fighting for the enforcement of Section 81 (Freedom of Choice) of the Insurance Act for almost two decades. This now has to become an industry battle. The handful of players that benefit from the current malpractices (like colluding with banks, car dealerships and leasing companies) should think about all this again. It is also a sad reality that certain brokers are still being allowed to act as agents of two or three insurance companies; and openly going against Broker Rules. With due to respect to everyone, let me put this bluntly: there is no pride in engaging in unfair practices to grow businesses.

Indeed, GFA Insurance has certainly made a lot of buzz in the sector, particularly with regards to Section 81 (Freedom of Choice) of the Insurance Act. Where do matters stand?

Poor principles affect market integrity, responsibility of regulators and equitable decision-making - undeniably the fundamental characteristics of a healthy International Financial Centre. The spirit of free choice arises from Section 81 of the Insurance Act – which gives a person complete freedom to choose his/her insurer (or insurance agent) when required to provide an insurance policy to guarantee a debt or other obligation.

The regulation also insists that the person must be able to confirm, in writing, that he/she has been informed of his/her right to this free choice and that he/she has exercised this right freely and willingly.

At a time when the Mauritius jurisdiction is under close international scrutiny, time has come to send a strong message to the world: Our country is able to guarantee level-playing field and enforce fair business practices at all levels.

In March 2022, at GFA’s 25th anniversary event, Hon. Mahen Kumar Seeruttun, Minister of Financial Services and Good Governance pledged, through the Financial Services Fund, his ministry would soon start a Public Awareness Campaign that would include the provisions of Section 81. Eight months later, I presume the campaign is still being worked on.

Two years after the start of the COVID 19 pandemic, there has been a lot of change in the industry during that period. Everyone had to move to remote work. How has this changed your perspective on using technology and GFA’s value proposition?

We have been spending a considerable amount of money on technology well before COVID-19. So, when the pandemic hit, our teams were already equipped to work from home, access our proprietary inbuilt system remotely, receive payments online (by credit card and debit card), Juice, etc...

We continue to beef up our systems and are currently working on a new platform that would improve our conversations with our tech-savvy clients.

What are some key global issues that you're watching now that could impact the insurance market in the future?

The COVID-19 pandemic, which was traumatic, or the most recent Russia-Ukraine war - already have global ramifications. We operate in a very global environment today and such events truly do impact all of us.

The number of new or even pre-owned vehicles coming to Mauritius has gone down and the cost of spare parts, if available, have increased exponentially - due to a number of reasons: depreciation of the rupee, high freight costs, amongst others.

Obviously, we would love to wake up every morning and the news be nothing but good news. That's just unrealistic. So, we just need to adapt and, ensure that the costs are passed down to clients as less as possible.

There is a known talent gap being experienced by many insurers and firms in the financial services industry. What is your approach on this?

There is a need to properly introduce this industry to people who are at the dawn of their professional life, or even at secondary school level.

Recently, I bumped into some photographs of GFA’s beginnings. One such picture was of our first receptionist – and she is still with us. She has stepped up the ladders and is now Head of Admin and HR, providing well for her family.

When I came into the industry, there were a lot of training programmes. People, insurance companies and others were hiring right out of secondary school, training them into underwriting or claims or whatever it was. And then, over a period of time, people kind of felt like they were getting the short end of the stick because they would come, they would learn, they would be invested in. And then a few years later, those people would leave and go to somebody else.

At GFA, we continuously try to manage our gap and our attrition. The percentage of people who stay with us after five years is over 70%. That’s a fantastic statistic, one that we're proud of. When the company is growing, there are more opportunities for people.

As from this year, we will be offering five bursaries in any financial services related field, in a Mauritian University, to the best-performing children of our employees. These bursaries will also include on-site training in our offices and guaranteed employment upon successive completion of their studies.

What should the market expect from GFA Insurance in the coming years?

COVID-19 has taught important lessons on the need to optimize investments. And we believe the right insurance covers can be made available without unnecessarily spending extra.

Even if no one knows what tomorrow holds, we’ve always focused on growing organically. We are looking at new market opportunities through mergers and acquisitions. We’re going to look for firms that would like to join us who have similar cultures and ethical conduct. For the coming years, I think it's also going to be a lot of developing the products and services that we provide in a much more seamless way - whether it’s about motorized vehicles, properties, offices, assets or professional indemnity.

Lloyd’s has had a long association with the British Royal Family

During the twentieth century the ties between the Royal Family and Lloyd’s grew stronger. Every monarch has visited each of Lloyd’s buildings. The Queen Mother maintained particularly close links with the Lloyd’s community and in 1974 she accepted honorary membership of the Society of Lloyd’s.

1925: King George V lays Lloyd’s foundation stone

On 23 May 1925 HM King George V, accompanied by Queen Mary and Prince Henry, laid the foundation stone of the new building, designed by Sir Edwin Cooper.

1952: Queen Elizabeth II lays Lime Street foundation stone

The first visit of our current monarch, Queen Elizabeth II, took place months after her accession in 1952 and before her coronation the following year in 1953. The visit took place at the unusual hour of 10pm, and the Room was packed with dignitaries, including the Prime Minister, Sir Winston Churchill. Queen Elizabeth was accompanied by her husband, The Duke of Edinburgh.

1958: The Queen Mother opens Lloyd’s building

Accompanied by HRH Princess Margaret, The Queen Mother made a warm address at the opening of the 1958 building.

1974: The Queen Mother becomes honorary member

In the words of the then Chairman, Paul Dixey, honorary membership was offered to The Queen Mother in recognition of Her Majesty’s outstanding services to our country.In December 1974 The Queen Mother visited Lloyd’s again, touring the underwriting Room, spending longer than expected talking to underwriters, brokers and administrative staff alike.

1979: The Queen Mother opens Lloyd’s offices in Chatham

The Queen Mother’s affection for Lloyd’s was clear, when in 1979 she returned to Lloyd’s again, this time to preside over the opening of Lloyd’s administrative offices in Chatham,

1981-1984: Building Lloyd’s current home on Lime Street

In 1981 The Queen Mother commemorated the start of construction of the current building, pulling a lever which sent half a ton of concrete cascading to form a section of the column which stands beside the main entrance.

1986: HM Queen Elizabeth II opens Lloyd’s Lime Street

The new Lloyd’s building at One Lime Street, designed by Richard Rogers, was officially opened by Her Majesty The Queen in 1986, five years after her mother had laid the first foundation stone – a reversal of their roles in relation to the 1958 building.

2005: Prince William

In 2005 Prince William completed a work placement hosted by HSBC. The placement included visits to the Bank of England, the London Stock Exchange, Lloyd’s of London and even Billingsgate Fish Market. During a day at Lloyd’s, Prince William was shown by Hiscox how the firm underwrites risk, with examples ranging from sporting events to fine art.

2006: The Prince of Wales and The Duchess of Cornwall

In 2006 Richard Ward, Lloyd’s former Chief Executive, described welcoming Prince Charles and The Duchess of Cornwall to Lloyd’s as one of his most memorable meetings during his Lloyd’s career.

2013: Prince George

On 23 July 2013 the Lloyd’s market gathered to witness the ringing of the Lutine Bell. The Bell was rung to celebrate the birth of Prince George, the first child of The Duke and Duchess of Cambridge.

2014: The Queen and The Duke of Edinburgh visit Lloyd’s

The Queen and The Duke of Edinburgh visit Lloyd’s Underwriting Room to unveil a plaque commemorating the market’s 325th anniversary.

2021: The Prince of Wales visits Lloyd’s

On 24 June 2021 HRH The Prince of Wales visited Lloyd’s to launch his Sustainable Markets Initiative Insurance Task Force, a new partnership with the global insurance industry to drive action to tackle climate change.

2022: Lloyd’s ceremony to remember Her Majesty Queen Elizabeth II and to mark the accession of His Majesty King Charles III

On 15 Sep 2022 Lloyd’s hosted a ceremony to remember Her Majesty Queen Elizabeth II and to mark the accession of His Majesty King Charles III.