Downturn a "perfect opportunity" to tool up
Published: Jan 30, 2009
Singapore - Despite the challenges in a tough economic situation, CEO of MSIG Holdings (Asia), Alan Wilson, says it is now a "perfect opportunity" to pick up talent for the future.
According to Wilson, 2008 profits for MSIG remain in the "comfortable" margins. However, the recession will throw up several new challenges for the organisation which include an increase in the number of cashflow problems and bad debts from clients, a spike in the number of dubious claims and a smaller return on investments during the next two years.
But there are opportunities to be tapped into during this downturn, Wilson adds, as MSIG is using this downturn to pick up talent that have been laid off from their struggling competitors and from regions such as North America and Europe.
Despite the industry's technicalities, insurance is still a people-based business where the capacity and capability to move ahead depend on the "quality and quantity of people that you have", Wilson says.
"Although times may be tough, it is a time for us to say, 'Are there areas of business which we are not in or strong at the moment where we can retool or tool up on?' And we can acquire talent which is available right now, and it is a perfect opportunity to do so."
For an insurance provider where labour and rent are the two biggest costs, will there be any cost-cutting action taken? While the company is "looking to be sensible about its costs", the focus is how employees can work smarter and more efficiently. Some of the initiatives now revolve around looking at conducting business in a more cost-efficient way, and introducing a standardization of best practices across the various 11 operations in the region.
"Although it is an expense, we are also looking at how we can invest in the future. It is not just running today's business, but also investing in tomorrow's business. We are investing in various areas such as new IT systems, new ways of doing business, and building the brand to make sure that we are well-positioned for the future."
According to Wilson, 2008 profits for MSIG remain in the "comfortable" margins. However, the recession will throw up several new challenges for the organisation which include an increase in the number of cashflow problems and bad debts from clients, a spike in the number of dubious claims and a smaller return on investments during the next two years.
But there are opportunities to be tapped into during this downturn, Wilson adds, as MSIG is using this downturn to pick up talent that have been laid off from their struggling competitors and from regions such as North America and Europe.
Despite the industry's technicalities, insurance is still a people-based business where the capacity and capability to move ahead depend on the "quality and quantity of people that you have", Wilson says.
"Although times may be tough, it is a time for us to say, 'Are there areas of business which we are not in or strong at the moment where we can retool or tool up on?' And we can acquire talent which is available right now, and it is a perfect opportunity to do so."
For an insurance provider where labour and rent are the two biggest costs, will there be any cost-cutting action taken? While the company is "looking to be sensible about its costs", the focus is how employees can work smarter and more efficiently. Some of the initiatives now revolve around looking at conducting business in a more cost-efficient way, and introducing a standardization of best practices across the various 11 operations in the region.
"Although it is an expense, we are also looking at how we can invest in the future. It is not just running today's business, but also investing in tomorrow's business. We are investing in various areas such as new IT systems, new ways of doing business, and building the brand to make sure that we are well-positioned for the future."