Artex International CEO Nick Heys and Artex Singapore office chief executive Vic Pannuzzo discuss the launch of company’s new Singapore office and its strategy in the region
Artex International CEO Nick Heys and Artex Singapore office chief executive Vic Pannuzzo discuss the launch of company’s new Singapore office and its strategy in the region
In January, Artex opened an office in Singapore to oversee the growth and development of its captive and risk solutions services in Asia Pacific. The new office is the company’s first in the region, and Artex CEO and president David McManus predicts it could help the company realise the market’s untapped potential.
Five months after the office opened, I spoke to Artex’s Vic Pannuzzo, who has significant captive management experience in the region and was brought in as the office’s chief executive, and Artex International CEO Nick Heys, about the launch and Artex’s strategy in the region.
Why did Artex decide to launch a Singapore office?
Nick Heys: We see opportunity in this diverse and dynamic region, which is a mix of mature and emerging markets.
As one of the largest captive managers affiliated with one of the largest insurance and risk firms, we also need to establish a presence in the region to serve existing and prospective clients.
What are the main objectives for this branch in 2018?
Heys: We have been busy establishing systems and processes and responding to opportunities throughout the region.
Apart from letting the markets know that Artex has expanded its global presence to this region, our main drivers are to create brand recognition in the region, develop the office infrastructure including systems and processes, build on existing and new captive and advisory pipelines, and promote the full suite of Artex products and services.
Do you believe that Asia represents an untapped market for captive insurers?
Vic Pannuzzo: We need to look at Asia differently from the rest of the Asia Pacific region. Within Asia the landscapes can be very different, for example, Japan is a mature market with a fairly consistent approach to captive structures, China is developing but with different needs than what you might expect from a growing market, and let’s say the Philippines is a different proposition as well. We seek to develop bespoke service models and local strategies to respond to the different needs of each market within Asia.
The Asia market will grow as economies expand and organisations grow and become more discerning about what they expect from their service providers or suppliers. Our clients and broker networks are looking for innovation and sustainability. Captives have a key role to play.
Will you be targeting business in Australia and New Zealand?
Pannuzzo: These markets are key to our strategy in the region. We are looking at penetrating the traditional corporate segments, as well as the middle market, with products and services that have been successful for us in other parts of the world.
An important feature of these markets is that they are mature where insurance buyers are very sophisticated. Innovation will be the driver for captive and other alternative risk transfer solutions as finance, insurance and risk managers continue to challenge the insurance procurement cycle and process and look for new ways of managing and controlling their total cost of risk.
We understand it is a very competitive landscape but we see opportunity with existing and prospective captive owners as we bring a fresh independent approach to captive and risk advisory services.
Is there space for growth in those markets?
Heys: We have identified that there are opportunities in the corporate and middle market, as well as alternative risk transfer structures. The insurance-linked securities (ILS) market is another area that we believe will grow as the alternative capital market becomes increasingly more accessible and important to insurers and other organisations. The Singapore authorities are actively promoting the ILS market by announcing incentives to attract sponsors.
Vic, how have your first four months been at Artex?
Pannuzzo: I’m spending a lot of my time getting to know the people and the talent. What has surprised me the most is the level of support I have received from everyone I have met. I keep hearing that Artex, and Gallagher, its parent company, are a ‘corporate business with a family culture’ and having been here 4 months I can genuinely feel the camaraderie that this norm engenders.
It helps to be welcomed and makes the process of getting things done much easier and rewarding.
I have now been in the industry too long to mention and it’s great to meet prospects and clients together with colleagues I have known from my years in the industry. Settling in has been no challenge.
How well equipped do you believe Artex are to expand into the Asia Pacific market?
Pannuzzo: I knew of Artex and their reputation before joining them as they already manage some large Australian owned captives, so although they did not have an office in the region they were already managing captives originating from the region. This fact in itself helps answer the question.
My experience comes from working with the two largest captive managers and I’m now with the third largest captive manager and believe that together we can offer the resources, systems and processes to manage captives effectively and efficiently as well as provide innovation that comes from focusing on independent insurance led advice and services.
We firmly believe that a captive manager needs to add value throughout the various elements of the risk financing process.
