John Lucas, insurance manager at the Insurance Council of New Zealand (ICNZ), started his career as a cadet with an insurance company, and within the first 12 months he had passed the first of many insurance exams and had undertaken a number of training courses. He says it was then that he realised he was on the right career path, and he set his sights on getting a broader range of insurance experience overseas.
Lucas spoke to Insurance Business about his career, his role at ICNZ and the challenges facing New Zealand’s insurance sector today.
“As a school leaver, I accepted a position with an insurance company without really knowing what insurance was all about,” Lucas explained.
“But insurance genuinely interested me as it was wide and varied, and I knew that one day I would work in the London insurance market.”
“Working in those insurance positions overseas allowed me to gain greater knowledge than what I may have gained just working in New Zealand,” he continued. “Firstly, I got to experience how much larger markets such as London work. You get exposure to North American liability business which is placed into the London market, as well as the specialist insurance lines such as energy and aviation.
“It simply gives you a bigger picture and that helps you think more broadly when dealing with international reinsurers, and solving problems for the local market.”
Lucas joined ICNZ in 1996 as insurance manager, and he now facilitates a number of standing committees and working groups involving commercial property, motor and marine insurance. He also coordinates claims responses following disaster events between ICNZ’s member insurers and local and central government.
When it comes to the future of the sector, Lucas says distribution, climate change and evolving technology will all play a great part in shaping insurance over the coming years.
“Staying relevant with the changing distribution channels is a top challenge for insurers and brokers,” Lucas said. “We see so many other traditional industries like insurance being subject to technological disruption.
“Another challenge will be meeting customer expectations for flood and storm coverage with future climate change. It’s going to be difficult for insurers to provide affordable coverages for property and businesses that are vulnerable to sea level rise and climate change without significant improvements in those vulnerable risks.”
“I think New Zealand insurers having learnt a lot from the Canterbury Earthquake disaster claims perform very well, possibly world leading,” he added. “The industry proved that in settling the Kaikoura earthquake claims.”
“We need to stay relevant in the eyes of our customers,” Lucas concluded. “My hopes are that the insurance industry can be innovative to meet the challenges of new risk such as climate change and remain viable as a business.”
