Outgoing Insurance Council of New Zealand Te Kāhui Inihua o Aotearoa (ICNZ) chief executive Tim Grafton (pictured) is open to working in the sector after he hands over the ICNZ baton in April 2024. Speaking with Insurance Business, the CEO reflects on his time at the representative body and shares where he might find himself after next year’s annual general meeting.
At the helm since 2012, the former UMR Research executive director came on board ICNZ following the Canterbury earthquake sequence. At the time, according to Grafton, he was motivated by the opportunities to be able to make a difference.
“It didn’t take very long to realise I’d made the right choice and enjoyed it all the way through,” he said.
Looking back, it was those early days that Grafton found the most challenging, given the massive volume of claims and the complexity of the system under which the fire & general insurance industry operated back then.
“We didn’t have the streamlined model that we have today,” Grafton recalled. “We had a far more cumbersome and awkward model, and that led to delays, duplication, and a lot of frustration for customers in Canterbury. So, that was challenging because you had to [face] the media to explain what was going on.
“All people really wanted was to have their claims settled promptly and didn’t really understand – nor should they be expected to understand – the complex layers that lay behind delays to the settlement of their claims. So, that was very challenging, and a bit of a baptism by fire – or earthquake – to the role.”
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In terms of the media aspect of the job, Grafton’s advice to whoever’s next in line is to be upfront, accessible, and able to get the message across.
“Be open to the media because there is no point in being defensive; we have a good story to tell,” he said. “It is a sector where everybody is trying their very best to do the right thing… So, be very clear that our intentions are to do better. It’s important that we get that message across because that gets to the heart of trust and confidence.”
For Grafton, trust and confidence in the industry should be what guides the next CEO of ICNZ.
He told Insurance Business: “They will need to be able to, I think, have a good focus on what it means to have trust and confidence in the insurance sector. Public trust and confidence is fundamental to insurance, and my successor should really regard that as their pole star, their guide as to the actions that they take.
“Ultimately, we are there to deliver on a promise, and having the trust and confidence in insurers to be able to deliver that promise at the worst times in people’s lives is so important. So, I think that’s really fundamental.”
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In Grafton’s view, the changing risk environment should also be front of mind, with a goal towards resilience.
“[The challenge is] how insurers can work with other stakeholders to make New Zealand one of the most resilient countries in the world, which is absolutely essential since we are one of the riskiest countries in the world with respect to natural hazards,” he said.
When it comes to what has been accomplished during his tenure, Grafton cited two of the big ones.
“I’m really proud to see that private insurers are managing and settling claims on behalf of the public entity Toka Tū Ake EQC, which makes for better claims resolution after a disaster strikes for people because there is just one point of accountability and responsibility for the homeowner to deal with,” he told Insurance Business.
“We’ve seen that this model does deliver great benefit with a much more efficient and speedier claims process. I think that’s great, because it’s only at claims time when the proof of insurance comes to the fore, on the delivery of the promise. So, I think that will probably stand out.
“I’m also very proud of the contributions I’ve made internationally through the Global Federation of Insurance Associations and serving currently as vice president. I’m really proud that a small country like New Zealand does have a voice at that level internationally.”
So, where to next for Grafton after ICNZ?
The outgoing chief said: “I would want to continue if there were opportunities in the insurance sector, but also to look at other opportunities as well. So, the motivation is to get greater work-life balance – this job is pretty full-on.
“I don’t have any opportunities in front of me. I’ve got six months to work that through until my successor takes over. So, over the next six months we’ll just see what opportunities might emerge, but certainly the insurance sector is one area and there may be others as well.
“I am looking for work, and it would be great to be able to do that work within the insurance sector. I think I can bring a considerable contribution to that. Equally, dealing with the natural hazard risks, the work that we’ve done in climate-related disclosures and all of those areas, I think, are an important set of knowledge and skills that are transferable elsewhere as well.”
His successor, meanwhile, will be recruited by the ICNZ board.
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