For the second consecutive year, AltamarCAM has organised a working session on the insurance sector (“AltamarCAM Insurance Summit 2023”), bringing together top-level experts to analyse the latest trends in this sector.
Claudio Aguirre, Chairman of AltamarCAM, inaugurated the event, which took place on 28 and 29 September in Barcelona, and brought together insurance companies and experts from different European countries and Latin America.
Ravi Balakrishnan, Chief European Economist at JPMorgan, analysed various aspects of the current macroeconomic situation and pointed out that macroeconomic indicators do not indicate a sharp economic slowdown in the very short term under a baseline scenario. However, the evolution of GDP will vary across geographical areas due to the different dynamics of each country.
Afterward, Jannik Leiendecker, Partner and Deputy Head of Risk and Regulatory Compliance at The Boston Consulting Group (BCG), Jegor Tokarevich, Founder and CEO of Substance over Form (SOF), and Sergio Simón, Partner in the Insurance and ESG practice at Deloitte, discussed regulations related to “greenwashing” and the potential risk this practice poses in various areas and activities of insurance companies. Notwithstanding this, they emphasised that there are effective tools and strategies to mitigate this risk, highlighting the role of local regulators in establishing specific guidelines and measurement methodologies.
The next presentation was given by Tomás Alfaro, CEO of Aegon Spain, who talked about the company’s recent evolution and identified relevant factors to consider in managing the business, including the impact of demographic changes, talent retention, and creating value through products that meet specific social needs while remaining profitable.
Patricio Parodi, CEO of Consorcio Financiero, then explained the importance of identifying customer needs and preferences and making the necessary changes to meet these demands. He referred to Consorcio’s history of transformation in this regard and how they have built a strong business.
The afternoon session began with a panel discussion on private asset management in the current interest rate environment, led by José Luis Jiménez, Chief Investment Officer at Mapfre, Axel-Rainer Hoffmann, Chief Investment Officer at Volkswohl Bund, and Tom Sumpster, an independent private market specialist. The panelists emphasised the role of private assets in investment portfolios, as they provide additional returns due to their illiquidity and complexity, regardless of the point in the economic cycle. They argued against disrupting the investment program as this would have negative consequences for the future and pointed to the need for recurring income for many pension funds and annual schemes.
The event also featured a panel on investing private assets with ESG in mind. Toby Belsom, Director of Investment Practices at PRI, Petri Kuusisto, Founder of the Impact Innovation Institute, and Miguel Zurita, Chairman of the ESG Committee of AltamarCAM, emphasised that incorporating ESG issues into the investment process undoubtedly improves risk management. They also stressed that investors should be demanding in terms of ESG criteria without sacrificing profitability. In addition, Toby Belsom highlighted that regulators, managers, and investors are entering a new phase in which the financial sector will be required to make progress on ESG issues across all asset classes, including private assets, and to encourage investment in projects that have a direct impact on communities and the environment.
Moreover, Massimo della Ragione, Vice President of Prima Group, Javier Bosch, cofounder of Cleverea, and Stefano Bison, Director of Business Development and Innovation at Generali, discussed the opportunities and challenges of so-called “insurtech” companies, highlighting their complementarity with the traditional insurance business. They address different needs and have completely different dynamics. The importance of private capital in project development was also highlighted.
The second day began with a workshop in which Jegor Tokarevich, CEO of SOF, spoke about the challenges of implementing ESG regulation, particularly in Europe, and highlighted the difficulties and lack of resources for data collection.
The summit concluded with a session in which Pilar Junco, Chief Client Officer of AltamarCAM, interviewed Qasim Abbas, Senior Managing Director and European Head of Tactical Opportunities at Blackstone, about best practices in M&A in the insurance industry and the different opportunities in this sector. Qasim Abbas highlighted those linked to balance sheet and capital optimisation, retirement-related businesses, broker consolidation and emerging online businesses. Blackstone also sees opportunities for asset managers to provide insurers with access to debt linked to infrastructure assets, renewable energy, or housing finance segments.
