Bridging Global Insurance Gaps: WBN's Olga Collins on the Future of Broker Networks

In Episode 6 of the Building Potential series, the CEO of WBN, Olga Collins, joins Archipelago's Founder & Chairman, Hemant Shah, to discuss:

• How WBN enhances global business connections and fosters innovative insurance solutions.
• What challenges and transformations are occurring in the property insurance market, highlighting the need for improved data and modeling.
• Why developing human capital within the insurance industry is crucial, emphasizing emotional and cultural intelligence.

Watch, listen, or read along to the full episode below:

Hemant Shah:

Good morning. Welcome to Building Potential, the series in which we explore new frontiers of capability across the risk management and insurance ecosystem. I'm Hemant Shah, the Founder and Executive Chair of Archipelago, and I'm thrilled to be joined today by Olga Collins, the CEO of the Worldwide Broker Network. The WBN is the largest independent broker network in the world with over 150 members across 100 countries worldwide. Olga, it's great to have you on the show. Thank you for joining me.

Olga Collins:

Thanks for having me, Hemant. Really good to see you though through the screen this time. Hopefully, next time, we'll be in person again.

Hemant:

I totally agree. We spend way too much time on screens, which is why I really appreciated the opportunity you gave me to present at your Making Waves conference in May in San Diego. The event was incredibly well attended. I believe there were almost 400 delegates from 87 countries at the conference, and it was incredibly content-rich with 47 presenters and 40 sessions. 

What were some of the key themes from the Making Waves Conference, which I believe was your 70th global WBN event?

Olga:

Well, first of all, thank you so much for being there, and thank you for the entire Archipelago team to be well-represented and bringing another solution to our community. But yes, twice a year we put together a global event for our brokers and clients to get together. The regular cadence of being in the room – thankfully, after COVID, we're able to do that again – is really important to our success because we do thrive on the relationships that we've built with each other and with our clients. So yes, putting clients in the center of it all is really the goal. That's when our customers get in front of their entire brokerage community from around the world. We did have 87 countries in the room, which for a person like myself who's really passionate about international business, it's really, really exciting. Some of the themes, and some are recurring from conference to conference, but some of the themes, of course, are related to what's going on in the world.

So geopolitical risks, some of the alternative solutions that are created around the world, even the in-depth captive conversation, which is new to some markets and new to some profiles of clients is a recurring theme. We like to talk about the independence and the entrepreneurial spirit that we have that drives our success. So a lot of conversation around that, especially during the consolidation period in our market, and then all the way to the talent recruitment and retention and climate change, ESGRM, you name it. Everything that keeps our clients awake at night is what we put on the stage and we try and get updates on and find creative solutions for.

Hemant:

Yes, it was a very rich set of content. Was there anything in particular this year that stood out and engaged your delegates during the event?

Olga:

Yeah, some of the feedback that was incredibly positive was regarding the emerging international cannabis market, for example. Remember we were in California, this is a foreign concept to some countries, but yet it's such a fast-growing part of the market. So that was probably the session where we had a lot of feedback from. We also had the leadership from Chief, it's a female leadership organization, where we learned quite a bit on how to support, how to attract female talent to the leadership roles, and that was another piece of the agenda that was very well attended and very well. We received some really good positive feedback on.

Hemant:

I know you're quite passionate about human capital and professional development across the industry, and I'm looking forward to really discussing that with you in a few minutes. Right after Making Waves was RIMS in San Diego as well, and your membership and you segued right from your conference into the RIMS event. There were some really interesting crosscurrents happening at that time in the property insurance market. What were some of the key themes that you encountered at the conference?

Olga:

Yeah, there's a lot of recurrent themes, but especially in the property space where the shifting models year-to-year. I mean, think about 10 years ago, we didn't name wildfire events, so there was a lot of conversation around wildfires and what we can do for preparedness and how the profile of the client that's nervous and impacted by property insurance is not just the large corporates, it's the mid-market, upper market as well. So, a lot of conversation regarding data, data quality, and modeling.

Hemant:

Well, that's very apropos given that our role as an associate member in your network is on that very important topic. Here in the US, I think it's fair to say that we do tend to conflate the global insurance industry with what's happening here in the US marketplace. You've got a pretty compelling balcony-level-view on the whole international market. 

What are you seeing in international markets that may be similar or different from what's being discussed here in the US market? Because it's not a homogeneous global market out there, is it?

Olga:

It is not, and every country has their own nuances, but we try and draw conclusions at the global level. When you think about some jurisdictions, there's such lack of capacity or lack of creativity as well because of the stringent nature of legal space. So, as I mentioned, captives are a big part of our discussions on a regular basis, but there are some jurisdictions that just don't recognize captives as a vehicle for insurance. Natural catastrophes, climate change. It is that very overarching and global topic for all of us. Reinsurance space and how you're getting into new jurisdictions, UAE, Singapore, Panama, having capacities that you can rely on not just for property but cyber and other tougher products as well. So yeah, from the global perspective, never a dull moment. Each geography is going through their changes. Think about all of the political changes that countries are about to embark on, and then also from the property and net cap perspective, some very large events happening, but yet there's the percentage of uninsured or underinsured properties continues to be on the rise.

Hemant:

Yes, the insurance gap is a systemic issue globally. While it's a concern in the US, it's particularly acute in many international markets around the world. How do you close the protection gap and insert more coverage into the stream of commerce?

Olga:

Think about what happened last weekend with, was it last weekend? But just a few days ago with the IT outage and how widespread across all these industries you have an event that you would've never thought a minor portion of an IT space could impact so many industries. So I think that insurance becomes more and more a wider topic and an industry that people recognize and realize it's maybe a place to be.

Hemant:

Yes, let's definitely talk about emerging needs, changing requirements, and how that affects human capital development across the industry. But before we do, I'd like to shift perspective and talk a bit about your own personal journey, Olga. 

Prior to leading the WBN, you led the multinational practice at Beecher Carlson, and before that you were the risk manager for global giant, UPS, one of the largest customers of the insurance industry worldwide. How important was it to your future success at Beecher and then at WBN to have been an actual risk manager, an actual customer of the insurance industry?

Olga:

I think that's what really set me up for understanding what the client needs really are. I'm really privileged to be able to work on various sides of the industry, but the client piece being my foundation is really important. So UPS obviously a really, really large brand, over 200 countries on a daily basis. It was really interesting time at UPS too because this is when their global expansion was taken on through M&A and organically as well. So lots of connectivity with the international space, but also ERM came to fruition and became a topic at the C-suite level. So the risk management department and resources became a little bit more, well-known throughout the organization, not just the cost center, but having a discussion at the higher level was really, really key. What I learned during my time as a client is that connectivity and collaboration between global and local marketplace, so global brokers, local brokers, global carrier, but also their local affiliates is really important to drive success in a program, not just at the onset of a program negotiation-wise, but especially when there's a claim that happens.

So that's my lessons learned from the client side is that collaboration and connectivity. So bringing that over to the broker side, that's what was in my mind when creating the multinational strategy and practice at Beecher. And just as a reminder to those that may not know, but Beecher was focused and continues to be focused on large corporates, so large brands, very complex programs, property and otherwise. But during my time there, it felt to many that there was almost a devaluation of a risk management role. That's when a lot of college corporates were going through cost-cutting initiatives and again, looking at risk management as that cost center versus an impactful department. But that's when there's an opportunity for brokers to become more consultative and being the extension to be an advocate for a specific brand into the marketplace. So lessons learned, again, lots of connectivity with clients and just understanding what their needs may be and how to connect their brand to the marketplace.

My background is property for many years, that was my baby. So focusing on the global piece of property was really important, but it doesn't matter which product you're talking about, that collaboration across borders was key. So moving to WBN, it just made perfect sense to continue to draw from those previous experiences. Most of my team has brokerage or client backgrounds, and you alluded to the fact that we have some initiatives that are client-centric and creating a client advisory council for us was key to stay connected with the client, understanding the client needs as they continue to shift.

Hemant:

So speaking of that client focus, you were risk manager with a large global property program during some pretty seminal events in the property insurance market, 9/11, Katrina, the totality of the 2004 and 2005 hurricane seasons, the Tohuku earthquake and tsunami in Japan in 2011, Superstorm Sandy in 2012. Each of these events were major catastrophes in their own domestic markets, and they also had global repercussions worldwide. For you, it must have been particularly challenging to manage through those events during that period of time, both in the individual markets you were doing business and with the interdependencies between your business operations in these various countries. So you've seen all of this from the customer's perspective, these challenges. You mentioned that you formed an advisory council with some of your largest global corporate accounts worldwide, which makes me think how client-centric is the insurance industry. Insurers, they tend to talk to themselves a lot. They tend to talk about the market a lot. How well do they understand the needs and changing expectations of their corporate customers?

Olga:

That's a great question Hemant, because I feel like we all say we're client-centric, but we don't actually put into practice really well. It doesn't matter how large your brand is. I think I was one of the first few clients who said that I wanted to talk to the broker and the carrier at the same time on a regular basis, not just at renewal time, but on a regular basis.

Hemant:

Yeah, not just on the roadshow when you're placing the coverage.

Olga:

Exactly. When you're doing 32 presentations in a row to different people. So I think it's important to note that that three-prong approach is key where the carrier and the broker and the client have a relationship because then when it's something like what you just mentioned from all of these events, something happens, everybody's on the same page, there's a plan in place and then there's a relationship already in place and you're not having to be in line. 

I think, CBI was a big topic at the time, especially with Sandy, where it was an unusual geography to be impacted. I think CBI has caused a few of these lines that I have. My kids as well. Don't worry, my kids as well have contributed, but I think we still as an industry need to do better putting the clients in the room. We're the only ones at WBN that actually have clients during our conferences hearing from them, first and foremost, but also putting their entire brokerage community in front of them. So if you're a client, imagine with 30 countries and you'll have 30 of your country brokers in front of you explaining what the local marketplace is, explaining what your operations is like, because remember, communication is not as free-flowing. Even when you're on the client side, you don't have risk managers in every country of your operations. It's pretty impactful. And as a client, I didn't see that happen as a broker. We made that happen. And with WBN, that's key of what we deliver for our brokers and clients.

Hemant:

It's a very complex ecosystem when you're dealing with these large multinational accounts with operations in multiple countries. You have the risk managers and they're operating in multiple countries. You have the brokers, the advisors, the insurers. Connecting all those dots seems like it's a priority for you at the WBN, and I think it needs to be more of a priority for the market in general because as you noted, the challenges are evolving pretty quickly. The roles and responsibilities of the risk managers are evolving as their needs are evolving, the role of the brokers needs to evolve and the roles of you and the carriers need to evolve. 

What are some of the shifts you're seeing and what are some of the implications and the roles and responsibilities of the three parties across the ecosystem? It does feel like something is happening and changing across this value chain right now.

Olga:

I think the change is opportunity. First of all, everybody talks about AI and digitalization and data, which can make us have a little bit more time for creativity, and that's the exciting part where we can rely on automated models and then actually be a consultant to the client. I think what should be happening anyway, but the carrier side as well is trying to think through creativity on how to be a better partner to clients versus just deliver a price and put it on the shelf and move on and hope for no claim to happen. 

So I think again, that team environment between client, carrier, and broker, by the way, let's throw the service providers and solutions providers into that mix as well, like Archipelago in this situation, it's really key to have all of those relationships at the fingertips to create the most robust program. Listen, as a consultant, as a broker, I've been in situations where you want to go in front of the client and say, your balance sheet can withstand not buying insurance. Let's talk about what really drives you to the decision of buying. And I think being an extension of the organization, the insured organization, is where we can be differentiating ourselves. It's not just about buying insurance anymore.

Hemant:

Yeah, I think you're flagging a really fundamental shift in the marketplace, from a market defined by transactional interactions, a place where the risk manager procures insurance, the broker places the risks, the underwriters price the coverage. To one where the risks are getting more complex, the balance sheets are getting bigger, the shift to a more consultative creative problem-solving ecosystem. And that has some pretty profound implications on human capital and talent and capability. And I know you're very passionate about this topic of human capital development. I know it's a real priority for the WBN. What are some of the challenges you see in the human capital developmental needs of this marketplace, and how are you tackling those challenges at the WBN?

Olga:

Yeah, the fact that we need to be more consultative and bringing cultural intelligence and emotional intelligence to the table is really how we focus on training and developing our talent. So WBN created a Catalyst Academy where it's more about soft skill, leadership skill training and focus than insurance –

Hemant:

That's for the under-35 cohort. Is that?

Olga:

Yeah, under 35 or within the first seven years of your insurance career. Because some of us fall into insurance later on in life. We want to make sure we give the same opportunities to those that are new to our space. So for us, it's that combination of it's not just AI that we need to talk about in the future, but how emotionally intelligent we are to understand the client needs and put ourselves in their shoes in this cross-cultural space that they live in every day. 

So that's the idea behind the Catalyst Academy, and it's been a great success because then upon graduation, and it is a true credit-based organized program upon the graduation from the program, we have a mentorship set up with our board members. So every graduate then gets attached to a board member somewhere in another continent. So that way we continue to have that crosscut cultural connectivity and expansion of their horizons.

Hemant:

When it comes to human capital, there's a challenge of getting people into the room, it's developing them once they're in the room, and it's keeping them from leaving the room once they're there. You've noted that the industry is being challenged from both sides. There's a demographic, well, I wouldn't call it a crisis, but I think you cited a statistic in one of your interviews where something like 25% of the human capital in this industry is retiring in the next 10 years. That really got my attention, 10 years. Huge shift.

Olga:

The next 10 years. And let's face it, we're still not known as the cool place to be. So I think that shift of perception needs to take place. I never thought of risk management as being the place to be. I have a finance background who loves people, didn't know that there was a great combination of analytics and relationships somewhere out there, and risk management is the place to be. 

So I think we need to change the perception, start younger and don't focus on only your engineers and mathematicians and accountants.

Hemant:

The quants, not just the quants, the actuarial track.

Olga:

Let's talk about the communications students, the legal students. The sky really is the limit. We have some biology people that thrive in the climate space, for example. So I think we need to expand our horizons to look for opportunities for the new talent to enter.

Hemant:

Yeah, I think that's really important because as the demographics shift and people retire, the industry does need to do a much better job at attracting talent. My own background's that of a CAT modeler, but I now consider myself to be part of the risk management and insurance industry. And when I talk to my friends, I often feel like an evangelist for the industry as one of the most profoundly important parts of our global economy.

 And these challenges are heroic that need to be addressed, and the industry should be attracting a wide cross section of top talent that otherwise would go into other industries. The problems are becoming much more consultative, creative. It's more problem-solving-oriented. There are issues, but as you're flagging, the industry isn't great at exposing its brand to people in high school and in college in their early twenties. So people tend to fall into this industry versus making a deliberate choice.

Olga:

During COVID, so many industries were shrinking and really trying to cut costs, and that impacted people in the workforce. We were expanding, we were hiring. So something to be said for the stability and the growth potential in insurance.

Hemant:

We were encouraged to join the WBN network as an Associate Member by our mutual friends at GRC who are also an associate member of your network. 

How do you, given the scale both globally and the number of members and the changing market, how do you prioritize what your members need in terms of services and products? It must be quite a complex calculus to decide from running this giant global network, how do you prioritize what to bring forward to your members? What to prioritize, what to develop, because so many competing priorities for capability across the globe. I imagine that's a challenge.

Olga:

It is. But when you keep the end client in mind, what the risk managers or HR managers remember, WBN is P&C and Employee Benefits as well. When you keep the client in mind and what they need on a day-to-day basis and what's important to them, that's how we prioritize our relationships.

Ultimately, we want to be that one-stop shop for anything a client needs, but we do prioritize those that make the biggest impact in the client success. So yes, GRC was actually a really big partner of mine when I was at UPS, I'm very proud to say that I've climbed a couple roofs to learn their process.

Hemant:

You've walked the roofs with the GRC chairs.

Olga:

I walked the roofs because we want to know what the marketplace wants to see and how they see you as a client.

Hemant:

That's customer-centricity. You walked your buildings.

Olga:

We walked through buildings. The only time I didn't was when I was pregnant. But otherwise, you need to know your operations really well. So anything to prepare and allow our clients to be proactive and how to create business continuity for them, that's what's important to us and that's what we prioritize in our community. 

So remember, WBN is brokers, clients, of course, carriers, but also service providers. So yourselves, Archipelago, GRC, and so many others, Crawford, just from the property perspective, are in our space on a regular basis.

Hemant:

As we wrap up, Olga, I think it's fair to say that in many ways the raison d'être, the WBN has been the incredible globalization of our world's economy over the past 35 years and the need for cross-country economic activity and therefore cross-country risk management and insurance. But there's some headwinds now. I was just listening to the earnings call of the CEO of Prologis, Hamid, who has an interesting vantage point because I think something like 3% of the world's GDP flows through Prologis warehouses in distribution centers. But he was expressing his concern about the knock-on effects of higher tariffs and a more protectionist sentiment and what this might have on global trade and therefore on the global economy. 

And I guess, therefore in the demand for international risk management and insurance, from your vantage point across all the countries that your network does business in, what are some of the interdependent economic activities that need to be insured and managed that might change in a more protectionist sentiment outlook across the world? Are you concerned about some of this retrenchment that seems to be taking place not only in the US but in other countries when it comes to globalization?

Olga:

Yeah, we are definitely watching the high percentage of countries which are going through elections this year. So that geopolitical landscape is a topic of ours. I mean, anything from currency fluctuations to climate focus, all of it impacts us. 

But all in all, we look at it as an opportunity. There are shifts in regions, shifts in countries which create opportunities in other places. So all in all, let's be quietly optimistic that the world doesn't completely turn upside down, and then it does create more opportunities for us in the insurance space.

Hemant:

Well, we could have an entire conversation about globalization in politics. It's a very fraught time. But on that note of optimism as we wrap up here, where do you see the most significant challenges for your members in the coming years, and where do you see the greatest opportunity for your members as you look forward?

Olga:

I think the challenge is on a local basis, the changes, whether politically or just – overall politically, I would say – just everybody waiting to see how it affects corporations and the freedom to continue their success. 

But I think also that becomes an opportunity because we are globally minded organizations and we see from the brokerage perspective that the competitors that we deal with are a little bit slower to move to creative solutions. So I think this is where our type of organizations can thrive.

Hemant:

You have an inherently, very agile organization.

Olga:

Yes, yes. And I think the client community notices that and the brands that are involved with us span from private clients all the way to top S&P 50 organizations. So more fun to be had and more connectivity and creative solutions to bring to the table. And I appreciate Archipelago being one of those new relationships for us where we can make a difference as well.

Hemant:

Olga, we're really proud to be an associate member in your network, and I'm thrilled to be your partner, and I've really enjoyed this conversation. You've got such a remarkable vantage point at the top of this balcony, at the top of the WBN on the entire global insurance industry, and I'm looking forward to continuing this conversation in person when we meet up next. But in the meantime, thank you so much for chatting with me on Building Potential. I really appreciated it.

Olga:

Thank you for having me. Thanks.

Hemant:

Thanks, Olga.