Nine leadership questions for Iain Williamson, Chief Executive Officer, Old Mutual Ltd

For how long have you been the GCEO of Old Mutual Limited?

I have been the CEO of Old Mutual Limited for over three years now.

You have been within Old Mutual Limited for well over 20 years and ascended to Group Chief Executive Officer in 2020. How have your previous positions prepared you for this current role .... Any challenges, highlights, or learnings?

Over the last 30 years I have had the privilege of the depth of exposure across the business, starting as a graduate actuary and gradually gaining invaluable exposure to various facets of the business world. I had the privilege of taking on leadership roles in diverse areas such as Personal Finance and Wealth (PF and Wealth), being Chief Financial Officer, and Chief Operations Officer. These experiences have endowed me with a profound understanding of the intricacies of different business functions and the ability to exercise sound judgment across different dimensions of our business.

Having served as the CFO, I developed a comprehensive understanding of the shareholder and investor community, which has proven instrumental in navigating the financial and investor landscape with greater efficacy. Moreover, my tenure as the Managing Director of PF and Wealth allowed me to immerse myself in the dynamic realm of sales and distribution. This first-hand experience not only provided me with a deep understanding of business and consumer financial needs but also equipped me with the expertise to identify and resolve operational challenges.

As a result of my diverse leadership roles, I have a heightened sense of empathy towards business leaders and a profound appreciation for the nuances of driving successful outcomes. This holistic perspective enables me to adopt a well-rounded approach to problem-solving and drive effective strategies across all capabilities within our organisation.

What would you say are the top qualities for effective leadership?

Clarity – what is expected to ensure alignment

One of the most crucial qualities for effective leadership is the ability to provide clarity and set clear expectations. By clearly communicating goals, objectives, and responsibilities, leaders ensure that everyone on their team understands what is expected of them. This clarity fosters alignment, ensuring that all individuals are working towards a common purpose or goal and are aware of their roles in achieving the vision of the organisation.

The ability to create an enabling environment for delivery on purpose

Effective leaders excel in creating an environment that empowers their team members to deliver on their purpose. This entails providing the necessary resources, support, and guidance to enable individuals to perform at their best. By removing barriers and creating a conducive environment for success which fosters effective collaboration, and promotes a culture of trust and accountability, leaders create an enabling environment where their teams can thrive and make meaningful contributions.

More EQ than IQ

While intelligence is valuable, effective leadership requires a high level of emotional intelligence (EQ). Leaders with strong EQ possess the ability to understand and manage their personal sentiments and be able to appropriately empathise with others. They are skilled at building relationships, resolving conflicts, and motivating their teams. By demonstrating empathy, self-awareness, and effective communication, leaders with higher EQ create an inclusive and supportive work environment that nurtures quality teamwork as well as both the personal and professional growth of their team members.

What would you say are Old Mutual Limited's top priority areas for the next year?

Old Mutual Limited's top priority areas for the next year involve continuing to enhancing the quality of service provided to our customers. This commitment entails refining existing processes and through innovation and streamlining our operations. Secondly, we will focus on process automation as a means to improve turnaround times and add value across our different capabilities. By leveraging technology, we aim to optimise efficiencies, reduce manual intervention, and enhance the speed and accuracy of our processes, to deliver a fast and efficient service to our customers.  Lastly, product development innovation remains a priority within our organisation. In ensuring that we stay ahead of our peers in meeting evolving customer needs, we will continue to invest in enhancing our value proposition.

As one of the leading insurers in Africa with some global footprint, how do you attract and retain talent?

We have established ourselves as a strong employer brand based on our extensive history as a training ground. We place great importance on training and development, providing employees with opportunities to enhance their skills, knowledge, and expertise. This commitment towards continuous learning and growth positions us as an attractive destination for individuals seeking personal and professional development.

We’ve embraced the digital era and that has positioned us as an appealing organisation for tech and digital skills within the financial services industry. This emphasis on technology-driven training and development initiatives not only enables us to stay competitive but also positions us as an exciting and forward-thinking workplace within the realm of the 4th industrial revolution.

How do you see technology playing a much more significant role in how insurance products are developed and distributed in the next few years?

Technology is poised to play a significantly amplified role in the development and distribution of insurance products in the coming years. It serves as a powerful tool that enables us to automate complex processes, ultimately enhancing the overall experience for advisors and customers alike.

For example, technology is already making a substantial impact in underwriting. With advanced underwriting tools, we can streamline and automate the evaluation of risks and determine appropriate coverage. Through the strategic use of technology, we can leverage data analytics to assess risks more accurately and efficiently. This not only speeds up the underwriting process but also improves the overall experience for advisors by reducing manual paperwork and enabling quicker decision-making. As a result, there is a higher volume of insurance cases being submitted, benefitting both the insurance company and the customers seeking coverage.

Furthermore, technology enables insurers to leverage data-driven insights to tailor our products to specific customer needs, provide real-time quotes, and simplify the purchasing process. The digital transformation within our industry not only expands the market reach but also offers customers greater convenience and flexibility in accessing insurance products.

What would you point out as key areas of concern for the insurance industry (either life or non-life) in the next three to five years?

The first one is the socioeconomic environment and the health of the consumer, which plays a crucial role in shaping the progress of the industry. Over the next few years, we expect that many individuals will continue to face constraints in meeting their financial obligations, potentially impacting their ability to afford financial solutions, and staying within their savings and investment plans. Affordability becomes a critical factor that must then be addressed while ensuring the accessibility and relevance of products and solutions to customers. This concern necessitates innovative approaches, such as designing flexible and cost-effective products that cater to the realities of our customers.

The other issue of the volatility of weather patterns, as climate change poses a significant challenge to the insurance industry, particularly, the short-term insurance space. The physical risks due to climate change have been increasing and we recognise that now is the time to reduce risks by investing in resilience strategies to protect our future. These events not only result in substantial claims payouts but also disrupt the insurance market's stability and capacity to manage risks effectively.

Fortunately, we have an advanced approach to through our short-term insurance capability at Old Mutual Insure. They integrate the effects of climate change on weather patterns into their catastrophe risk modelling processes,  aligning pricing, underwriting, and reinsurance processes, and they are also continuously looking at ways to avoid and mitigate the impact of natural hazards and prevent them from turning into disasters. To ensure resilience Old Mutual Insure have actively invested in the management of fire risks.

If you could go back and give your 18-year-old self one piece of advice, what would it be?

I would emphasise the importance of taking more risks. Reflecting on my career as an actuary, I realise that I followed a rather conservative path. In hindsight, I recognise the value of embracing more risks and stepping outside of one’s comfort zone when you are younger.

What is the one book you would recommend to your audience, and why?

Psychology of Money – Morgan Housel. This is an excellent book on financial literacy; it is quite intuitive to the financial advisor, breaking down complex concepts. It also very short.  I highly recommend it for advisors.

*Iain Williamson is Group Chief Executive Officer, Old Mutual Ltd.