AXA’s latest ‘Future Risks Report’ painted a clear picture of the growing sense of vulnerability in today’s polycrisis risk environment where traditional risks compete with emerging threats for the attention of risk managers, insurers, brokers and policyholders alike.
At the RVS conference in Monte Carlo, Jamil Elbahou (pictured), CEO of the Connect Group, highlighted how climate change, inflation and geopolitical uncertainty are reshaping the risk landscape. The truly international nature of risk is under closer scrutiny than perhaps ever before and it’s with that in mind that the group launched its latest venture, GBN Risk Solutions (GBN RS) to add to its portfolio of businesses.
Operating as a newly established managing general agent (MGA) based in London, the new entity – of which Elbahou is chair – exists to support market players in placing risks in regions beyond their local jurisdictions. “The international space has always been one close to my heart for the 25 years I’ve been in the market,” he said. “The GBN Worldwide network I founded is now in 140 countries and celebrated its 10th anniversary in London this October.
“GBN Risk Solutions was created for international business because we recognized that, even among our broker partners, there is a need for local knowledge, for intricate knowledge of foreign markets, whether it's related to compliance, local regulatory frameworks or available capacity. There was a need in London for the London, European and US broking fraternity to be able to access this expertise when navigating the needs of their clients who have international exposures.”
A lot of GBN’s partners support large, domestic clients which may have a small international component to their business. With that in mind, he said, the team felt the time was right to launch a business focused on providing an interface between its partners across 140 countries and domestic brokers who require brokers. That ranges from small, independent brokers to multinational partners who simply may not have the experience or knowledge required to navigate coverage across an international marketplace.
Launched in February, the proposition has gone from strength to strength, Elbahou said, and while it is initially focusing on serving UK brokers with international clientele, there are plans to extend its services to European and American markets. The last seven months have shone a spotlight on the key challenges facing firms looking to place risks in regions beyond their local jurisdictions, he said, and often at the top of the risk register is regulatory pitfalls.
“Anyone can get online and research a list of overseas brokers or local insurance companies, etc.,” he said. “The problem is the compliance pitfalls of trying to do business haphazardly in an emerging marketplace. It’s a particular risk for brokers operating in regulated environments in Europe, the UK and the US, and it’s a risk that needs to be managed cost-effectively.
“Brokers need a service that will help them assess the needs of their overseas clients and then price, underwrite that risk, and ensure that everything is handled efficiently and above all, compliantly. These local policies need to be issued properly, backed by proper capacity, in order to give the broker security throughout the whole lifecycle of the policy.”
Without in-depth and up-to-date information, distribution partners run the risk of regulatory exposures and all too often they’re not aware of the full, and potentially criminal, implications of these exposures. GBN RS sees its role as being to mitigate that exposure, Elbahou said.
“The feedback to GBN RS has been very positive to date,” he said. “It’s a new concept. And I knew it would be because when you look at the insurance networks out there, there’s less than a handful, which means that there are hundreds of brokers in the UK alone who are not part of a network. So, there’s a lot of market to cover and support.
“The key for GBN RS has been to educate potential new business partners about the pitfalls of doing business in international markets. Then it’s about making them comfortable with having the right conversation with their clients – that it’s not about a £200 policy but rather the service that sits behind that policy and the support that it provides. It’s an education process but it’s one they’re engaging with very well. It’s just the beginning but I am excited to add this company as an investment for the group and to see where this goes next.”
