4 November 2014

Sarah Caddy

If you’re following the right people on twitter, you’ll know that Towers Watson’s #ERMForum took place in the Netherlands in early October. As ever, guest speaker Dr. Pippa Malmgren got to the crux of current insurance debate with her Thought of the Day for TW’s audience of insurance Chief Risk Officers:

How much time are you spending on the big picture risks?

 Very little, it seems. Aon Consultants reportedly lamented last month that insurers are opening themselves (and the world) up to imminent liability by failing to mitigate against global, unprecedented disasters. Instead of acknowledging that new risks such as cybersecurity and hyper-connectivity are desperately in need of insurance innovation*, insurers predominantly continue to focus on smaller risks, such as health and vehicle insurance. This, Aon explains, is because there is a wealth of data and experience available to inform decisions relating to these risks.

But perhaps a more pertinent threat – and one related to product provision – is that posed by ‘local markets’ within the global insurance market. While global insurers like Lloyd’s rode to well publicised success from demand for insurance in faster-growing regions in the past, insurance coverage is increasingly being provided by local insurers and alternative insurance hubs.

As indicated by recent statements by Leapfrog’s founder Andrew Kuper, insurance industries in emerging markets are developing rapidly. How long is it before the competition will reduce the need for brokers to source coverage from London? Signs have already begun, with Catlin opening its Singapore branch to underwrite insurance and reinsurance in the Asia-Pacific region in January 2014.

Recognising this threat, Vision 2025 was launched by Lloyd’s to keep pace with the emerging markets. By proactively developing products in emerging risks, Lloyd’s could confront future competition by making London more relevant – a timely endeavour.

*The notable exception to this – Tom Ridge’s specialist cyber insurance company – was also announced as launching last month by the FT.

It’s true what they say – no two days are the same in PR, which is what makes it such a stimulating career path. However, prospective interns may be curious as to what a typical day looks like at Gong. As a small, boutique agency, you really can do some meaningful work in your two weeks. Don’t expect to get stuck photocopying or doing endless coffee runs, they’ll be plenty of projects for you to assist with.

9am: I arrive at the office after a 5 minute walk from Bond Street tube station, having picked up several newspapers from a local news agents on the way in. At the start of the day, I’m responsible for scanning the papers to see if there are any articles that may be relevant to Gong’s clients and their respective industries.

10am: The team assembles for the weekly meeting, where objectives for the upcoming week are outlined and delegated. The seating plan is rearranged on a weekly basis so that everyone can share ideas. There is also an opportunity to celebrate successes from the previous week and present individual ideas for group discussion.

11am: I take to the phones to inquire about dates, locations and nomination deadlines for an array of sustainability award ceremonies. Events of this nature offer a great opportunity for companies to raise their profiles and receive professional recognition.

12pm: One of our clients has landed an interview in a couple of weeks’ time. I put together a media briefing detailing the nature of the radio show, the background of the interviewer and any recent news on the subject under discussion. Hopefully now the client can relax and let their expertise do the talking.

1pm: Lunch! There’s a huge selection of supermarkets, coffee shops and restaurants nearby. Equally, if bringing lunch from home is more your thing, there’s plenty of fridge and cupboard space in the office kitchen. The Espresso machine is a lifesaver.

2pm: Time to stretch those social media muscles. I peruse what’s trending and find that it is World Water Week – perfect! It’s topical and relevant to our Twitter followers, so I get posting.

3:30pm: I make a quick trip to the bank and the post office, which are both within a 5 minute walk of the office. With a little bit of sunshine and fresh air under my belt, I head back to check my emails and see what tasks are in store for the rest of the afternoon.

4:00pm: I’ve been briefed on two research tasks. One involves acquiring figures for newspaper circulation, the other assessing a company’s annual sales figures in relation to its published targets. A combination of Google News, company websites and the online services Gong is (thankfully) subscribed to, allows me to locate everything I need.

5:00pm: I get the chance to write some digital copy for a client’s news page, detailing a recent acquisition that will double its company size. My draft is sent off to be read by another member of the team, before being uploaded to the website. I reward myself with a hot chocolate.

6:00pm: Time to head home after a busy day.

I would recommend applying for an internship at Gong Communications, whether you are fixed on a career in PR, considering work in a related field such as marketing or journalism, or just want to get some valuable work experience in a fast-paced, supportive environment. So what are you waiting for? Send your CV and a covering letter to Stephanie@gongcomms.wpengine.com

Jack Pusey interned with Gong after completing his MA in English Literature at The University of Warwick.

July 2014

Sarah Nicholas

As global agribusiness and Gong client Olam International enters its 25^th anniversary this month, one might expect much congratulatory back patting from Sunny Verghese, the group CEO and founder. Rather than resting on any laurels, however, Sunny has seized the opportunity to reflect on how much more there is still to be done and the place in the global ecosystem that Olam could – and should – now take.

Agitating for change from the top down is fast infiltrating the ranks across sectors and industries, and stirring up a new breed of corporate leader: the activist CEO. The successful business leaders of this brave new age, Sunny observes, are unafraid of ‘taking on issues that are bigger than themselves and their own sphere of influence.’

Gone are the times when a business leader had to set up a foundation in order to use their influence for positive impact around the world (Mo Ibrahim and Bill Gates spring to mind) – there is a growing conviction that the businesses themselves can do good. Unilever’s Paul Polman has long been leading the activist pack for systems change beyond the factory gate among governments, suppliers and consumers. At the same time, sustainability initiatives now sit at the heart of major companies such as Marks and Spencer’s ‘Plan A’ and SAB Miller’s ‘Prosper’.

Moves like these indicate that the sustainability-driven C-suite cohort, though small, is growing. And why should that be a surprise? As Sunny recognised in his blog piece, today’s successful business leader necessarily confronts inconvenient truths like climate change and dwindling natural resources: if he or she is to weather the challenges of today’s world, it is the only thing to do.

July 2014

Sarah Caddy

In the UK, the personal injury insurance industry continues to be beleaguered with the reputation for bogus claims driving up premium costs (reports state that 78 percent of all UK personal injury claims are for whiplash injury, compared to just three percent in France, for example), slow pay-out rates, and poor forecasting.

This reputation for poor value and lack of individual approach is also present in the corporate insurance world, with recent headlines stating that BT’s £40 billion pension scheme has established its own wholly-owned insurance company in order to access the insurance and reinsurance markets directly and “achieve the best value” for the pension scheme. The message left unsaid: the trustees couldn’t find an adequate offering already in the marketplace.

Turn your gaze to the insurance services of the fast-growing markets, which (despite having their own critics) continue to innovate when it comes to service and product provision. There is much we can learn; they highlight the importance of new technologies and an enabling regulatory structure. In Brazil, for example, insurers have created policies for older cars that provide smaller amounts of coverage along with a higher deductible. They also offer one month, third party liability automobile insurance plans that buyers can activate using their mobile phones. Closer to the Gong fold, East African client APA Apollo has launched an agricultural microinsurance scheme, Mifugo Maisha, which uses satellites to survey the availability of pasture for animal grazing, then predicts the number of animal fatalities and provides insurance to cover the potential losses.

This expectation for enabling, inclusive provision may come as a shock for foreign insurance firms looking to expand internationally and capitalize on the growing consumer base that is so attractive to the sector. Not to be left behind – the main players are on the march to the fast-growth economies already; Prudential has bought into Ghana and is looking at East Africa, other rumours abound. Let us not forget that it is local knowledge, expertise, and understanding how technology can be used to improve the everyday lives of the local consumers, which will give British and other global insurers an edge.

To read a case study on the work that Gong has undertaken for APA Apollo in East Africa, please click here.

Sarah Caddy

Are you bullish about the future of the asset management industry? Recent reports that global profitability levels have recovered post-crisis, and that worldwide assets under management (AuM) levels are on track to exceed $100 trillion by 2020 (from $63.9 trillion today) certainly paint a rosy picture.

We’re not to rest on our laurels though. By all accounts, the journey over the next six years to that elusive £100 trillion figure will not be an easy one. Costs are on the rise in response to ever-increasing regulation and data management, broadening distribution platforms, and the fact that any fees earned are under closer and closer scrutiny by investors. What’s more, according to Chris Flood and Deloitte in today’s FT, only a very small number of funds will control that growing asset base (in the UK at least).

So what’s the key to beat the competition, and to secure the very best talent? A brave new world, PwC’s latest report on the asset management industry, certainly doesn’t hide its authors’ views. It preaches transparency, to build consumer trust (after all, post-RDR, a focus on retail investors is getting too expensive, and consumers will be self-directing services in no time). But most of all, it directs asset managers to ‘Stay close to the decision makers, and to the media’ (page 22 of the report), claiming:

“The industry by 2020 will increasingly focus on articulating its purpose, but on broader messaging and PR campaigns to ensure the community at large ‘gets us’ and views the industry as part of the solution rather than part of the problem.”

Having a dedicated social media strategy is a core part of this engagement. The question is whether asset managers are prepared to seek the requisite professional advice to stay ahead of the competition.

The scenario played out in the opening of the PwC report is a compelling one. I’m sure it’s not long before my friends and I check our retirement funds and choose assets at the same time as logging on to facebook, or reviewing the latest selection of potential dates for the evening. Dear asset management industry – I’m game for change, if you are. Just don’t let rising operational costs put you off spending in those areas that might really make a difference to whether you see your share of the ever-expanding pot of gold.