Page 22 - 33rd Edition GAIF Pre-Conference May 2022 Issue 606

Henri Labat (SEO – IGI):

IGI’s philosophy has always been anticipation
instead of reaction

Henri Labat, Senior Executive Officer at International General Insurance (IGI) is an
insurance and reinsurance professional with more than 15 years’ experience in different

managerial and leading positions in different markets. He worked within AXA Group in

different countries (France, Spain, Middle East) occupying different Underwriting and

Management roles. Before joining IGI, Henri headed up the AXA Corporate Solutions office

in Dubai dedicated to the MENA Region. He holds a Master of Science in Engineering by

INSA Lyon and a Master’s in Management of International Business by Essec. In a Q & A with

Al Bayan Magazine, Labat talked about the challenges facing the sector and the oppor-

tunities in the Arab insurance market. He further shed light on topics related to inter-

net, climate change, epidemics and cyber risks as well as the recent realizations of IGI.

Below is an extract from the interview.

“ DEVELOPING NEW RELATIONSHIPS IN A VIRTUAL ENVIRONMENT IS MORE CHALLENGING THAN DOING IT FACE-TO-FACE ”

* The theme of the conference is “The new situation and its repercussions cyber risks – and currently the number of insurers offering cyber protection is lim-
on the insurance industry after the outbreak of the Corona virus”. What are ited, mainly due to lack of expertise.
the challenges faced by the sector? Are there opportunities for the Arab Climate change is already a challenge for the insurance industry, mainly for lines
insurance market? of business covering weather-related property damages. While the industry has
- The COVID-19 pandemic and the ensuing effects created unprecedented chal- a relatively good handle on major weather-related events such as hurricanes and
lenges for the global re/insurance sector. Business leaders had to navigate a earthquakes, there has been an increase in the frequency of so-called ‘sec-
broad range of interrelated issues that span from keeping their employees and ondary perils’, such as wildfires and floods, which are contributing heavily to
clients safe to re-orienting operations and navigating complicated government insured losses. Moving forward, modelling will play a key role in underwriting nat-
support programmes. Despite those challenges, many companies successfully ural catastrophe risk, and companies not investing in the latest modelling capa-
and quickly adapted, utilizing cloud-based technology, electronic trading and col- bilities will find themselves exposed to higher and unexpected losses.
laborative working tools to allow employees to safely work from home. Virtual Meanwhile, there is an increase in people demanding urgent action to tackle the
working and communication have now become commonplace and a major part impact of climate change, resulting in climate protests, which has a subsequent
of our professional interactions. Both IT and HR departments played a vital role impact on wider societies and the movement of population. This will inevitably put
in these transitions. The companies with well-rehearsed business continuity pressure on insurance lines of business such as SRCC, Political Violence, and
plans and investments in IT infrastructure fared better than those which were Political Risk, making such products even more volatile.
unprepared.
Despite successfully navigating all those changes, we must recognize that devel- GAIF HAS ALWAYS BEEN AN EXCELLENT FORUM
oping new relationships in a virtual environment was - and is - more challenging
than doing it face-to-face. The re/insurance sector has always relied on human * In your opinion, what are some of the advantages achieved from previous
interactions. However, the evolving hybrid model of combining remote working Forums? Do you think that the GAIF succeeded in stimulating the
with in-person meetings will help to create new relationships as well as main- exchange of insurance and reinsurance premiums between Arab markets?
taining existing ones. - GAIF has always been an excellent forum for the exchange of ideas, and it cre-
With regard to the impact of COVID-19 on the re/insurance sector, it is true that ates an environment to brainstorm and learn as an industry, for the benefit of all.
some insurance lines of business suffered from the pandemic. Insurers writing The quality and relevance of the topics developed over the years have helped
Event Cancellation suffered greatly for example. greatly the insurance industry in the Arab world to understand and be prepared
As the world adapts to the ongoing effects of COVID-19, and with the worldwide for existing and new challenges.
economies opening again, opportunities are presenting themselves, despite new
geopolitical challenges. For example, IGI entered into the contingency market in IGI HAS BUILT A PLATFORM FOR A TRULY GLOBAL COMPANY
May 2021, and as events are returning, clients are now keener to buy coverage.
IGI has seen a lot of success in this area, including in the Arab world. * What can you tell participants about the progress made by your compa-
The increase in oil and gas prices is also a great opportunity for many countries ny in the recent years?
in the Arab world. It will help them boost their investments in infrastructures and - This year marks IGI’s 20th year in operation. In the past 20 years, IGI has
diversify their economies away from reliance on oil and gas. Construction insur- achieved some significant milestones. We have played a significant role in the
ance has also picked up again and is seeing a lot of activity. On the other hand, industry, from being the only successful Arab insurance company to go truly
the increasing inflation can be a threat for some other countries in the region and international, to achieving our A-rating from AM Best in 2017, and listing on the
also for insurers on the claims side. It is something which will have to be moni- New York Stock Exchange in 2020. IGI is the first company in the Middle East to
tored closely and taken into account at the underwriting stage. sustain successful operations out of London and to be listed on the Nasdaq.
Last year, we expanded our geographical footprint with the launch of our new
CYBER, CLIMATE CHANGE & EPIDEMICS subsidiary in Malta with the purpose of growing IGI’s footprint across Europe. We
found new business opportunities and entered into the contingency market while
* Other topics discussed in the conference are related to Internet and cyber other players were announcing their exit from this business line. In addition, our
risks, climate change and epidemics. What are its effects on the sector and business lines and our financial ratings were once again reaffirmed at “A”
how can we plan for it? (Excellent)/Stable by AM Best, and “A-”/Stable by S&P Global Ratings.
- As companies all over the world become more dependent on remote working During COVID-19, IGI did not miss a beat – we swiftly and successfully moved
and using technology to digitise processes, cyber exposure has never been so our global workforce to work fully remote before any government imposition of
high. Working from home can be great for work-life balance, flexibility and the controls. We had already invested in our systems and people, so it just needed
lack of a commute, but it also brings up a whole host of cybersecurity problems. the tweaking of a few IT and business processes in order to manage the new and
With employees relying on fragile personal networks and sometimes their per- enhanced risks of remote working.
sonal devices, new online tools and services, and added distractions, it has IGI currently has an entire professional team dedicated to modelling and a very
become a nightmare for businesses to regulate security measures. This will strong IT team. The company is continuing investing in those areas. Overall,
undoubtedly remain one of the major challenges for the years to come. At the IGI’s philosophy has always been anticipation instead of reaction.
same time, cyber insurance will become a very important line of business with IGI has built a platform for a truly global company over the last 20 years, and we
high opportunities for the insurers who will be able to enter this area successful- will keep moving forward with a clear and strategic plan in place as we continue
ly. The demand is there as businesses look to mitigate and navigate these new laying down the tracks for future success.

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