When you think of a Chief Risk Officer (CRO), a CFO or a Group Chief Actuary, what comes to mind? If you’re picturing someone who’s overly cautious, always playing it safe, and saying “no” more often than “yes,” you’re not alone. It’s a stereotype that’s been around for years. But here’s the thing: in today’s fast-paced, unpredictable insurance landscape, that stereotype might be doing more harm than good.
The truth is, the insurance industry is facing challenges like never before. Climate change and natural disasters like the wildfire in California, cyber threats, regulatory shifts, and evolving customer expectations are just a few of the hurdles. To navigate this volatility, you don’t just need leaders who can manage risk—you need leaders who can take risks. Bold, calculated risks.
At Hewitt Stone Global Solutions, we believe it’s time to challenge the status quo. It’s time to redefine what it means to be an actuarial or risk management leader. Let’s dive into why the industry needs risk-taking leaders and how this shift can drive real, transformative results.
The Problem with Playing It Safe
Let’s be honest: playing it safe has its perks. It keeps things predictable, minimises surprises, and ensures stability; but in an industry that’s all about managing uncertainty, being too cautious can actually be… well, risky.
When risk and actuarial leaders focus solely on avoiding losses, they miss opportunities to innovate, grow, and stay ahead of the competition. Think about it: if you’re always saying “no” to new ideas, you’re essentially standing still while the world moves forward. And in today’s insurance market, standing still isn’t an option.
For too long, CROs and actuarial leaders have been seen as the guardians of caution. But the best risk leaders don’t just put up roadblocks—they help navigate the best path forward. Think about it: when was the last time a company truly transformed by avoiding every risk?
A new breed of CROs is proving that calculated risks lead to real rewards. They ask: How can we manage uncertainty in a way that fuels growth? They collaborate with the C-suite leaders to make bold but informed decisions that push the business forward.
The reality is, risk management isn’t just about avoiding pitfalls—it’s about identifying opportunities where others see obstacles. It’s about making bold decisions that can lead to significant rewards. And that’s where risk-taking leaders come in.
Case Studies: When Bold Decisions Paid Off
Still not convinced? Let’s look at a few real-world examples where CROs and insurance companies took calculated risks and reaped significant rewards. These stories highlight how bold leadership in risk management can drive innovation, growth, and resilience.
1. Embracing Insurtech: Disruption Through Innovation
Lemonade: Revolutionising Insurance with AI
In 2015, Lemonade entered the insurance market with a bold vision: to use artificial intelligence (AI) and behavioural economics to transform the customer experience. Traditional insurers were sceptical. The risks were clear—relying heavily on AI and a direct-to-consumer model was uncharted territory. There were concerns about scalability, regulatory hurdles, and whether customers would trust a tech-driven insurer.
But Lemonade’s gamble paid off. By 2020, the company had grown exponentially, boasting over 1 million customers and a seamless claims process that often took seconds. Their AI-driven approach not only reduced operational costs but also built trust through transparency. Lemonade’s success forced the entire industry to rethink how technology could be leveraged to meet evolving customer expectations.
2. Climate Risk Innovation: Turning Challenges into Opportunities
Swiss Re: Leading the Charge on Sustainability
Swiss Re has long been a pioneer in addressing climate risk. In 2019, the company committed to making its investment portfolio carbon-neutral by 2030. This was a bold move, considering the financial risks associated with transitioning away from fossil fuels. Swiss Re also invested heavily in predictive analytics to better understand and mitigate climate-related risks.
The result? By 2021, Swiss Re had not only reduced its carbon footprint but also positioned itself as a thought leader in sustainable insurance. Their innovative approach attracted environmentally conscious clients and investors, proving that tackling climate risk head-on can be both profitable and impactful.
3. Expanding into Emerging Markets: Unlocking New Growth Opportunities
Prudential: Betting on Asia’s Growth Potential
In the early 2000s, Prudential made a strategic decision to focus on Asia as a key growth market. At the time, this was a risky move. Emerging markets are often volatile, with regulatory challenges, economic instability, and cultural differences. But Prudential’s leadership saw the potential in Asia’s rapidly growing middle class and increasing demand for insurance products.
By 2020, Asia accounted for over 50% of Prudential’s profits. Their early investment in markets like China, India, and Indonesia paid off handsomely, driving growth and diversification. Prudential’s success in Asia is a testament to the power of bold, forward-thinking leadership.
The Lesson: Bold Leadership Drives Results
These case studies show that when risk, actuarial leaders and CROs are willing to take calculated risks, the rewards can be transformative. Whether it’s embracing insurtech, tackling climate risk, or expanding into emerging markets, bold leadership can drive innovation, growth, and resilience.
If you’re hiring a CRO, Chief Actuary and Head of Risk, it’s time to rethink the job description. Yes, you need someone who understands compliance and risk mitigation—but you also need a leader who sees the bigger picture.
Ask yourself:
- Do your C-suite leaders challenge the status quo and propose bold solutions?
- Is risk management in your company just about avoiding losses, or is it also about seizing opportunities?
- Are you creating a culture where risk leaders can contribute to growth, not just play defence?
At Hewitt Stone Global Solutions, we specialise in finding C-suite leaders who think differently. The right risk leader can be the difference between maintaining the status quo and unlocking new potential. The best insurance firms are those that embrace change and take calculated risks. As a C-suite leader, it’s on you to make sure your risk management strategy is not just about protection but about progress.
We believe that managing risk isn’t the challenge anymore; it’s about embracing them in a way that creates value. Are you ready to redefine what’s possible for your organisation? Book a call, let’s take the leap together.
