Cosmos Insurance Public : Leading Through Change – Our CEO’s Interview to FastForward

On May 2024, FastForward hosted our Company's CEO with an interesting interview. He talked about the evolution of the Company, leadership principles, challenges and adapting to market trends.

Below you may read some highlights.

To read the full interview you can click here.

As a CEO with extensive experience, what leadership principles do you believe are essential for successfully guiding an insurance company like yours?

Successfully guiding an insurance company requires a blend of traditional leadership principles and industry-specific knowledge. Probably the most important in my opinion, is having a clear Strategic Vision for the company's future. This includes areas such its position in the market, target customer segments, short term and long-term goals that are achievable and realistic. This vision should guide decision-making at all levels and inspire employees.

Communicating this vision and company goals to employees and key stakeholders is crucial as each member of the team plays an important role in the organization, each in its own way. Therefore, open, honest, and transparent communication is embedded in our corporate values as it builds trust and strong relationships.

Probably the most important in my opinion, is having a clear Strategic Vision for the company's future… This vision should guide decision-making at all levels and inspire employees

Good Risk Management is also essential. Understanding and effectively managing the diverse risks inherent in the insurance business is of utmost importance. Having a robust risk management framework safeguards the company's financial stability. In a fast-changing environment like the one we live in, adaptability is crucial. Being able to anticipate and respond effectively to market disruptions, economic fluctuations, and regulatory changes, safeguards smooth operation and of course makes the most of new opportunities.

Another key area of focus for our company has always been the focus on the customer. We are committed to understanding customer needs and delivering value-added products and services. For us, customer satisfaction, retention, and loyalty are important, and this extends to our cooperation with insurance intermediaries who we consider our primary «clients». This is why we place a high importance on honest feedback, since we believe it's the best way to improve and evolve. This is also the main driver behind all the technological enhancements that are constantly being implemented that aim at offering a slick customer experience to our agency network and clients.

Turning our focus to the broader industry, what current trends are you observing in the insurance market in Cyprus, and how is Cosmos Insurance responding to these developments?

There are several trends shaping the insurance industry, not only on a local but on a global level. Probably the main one that affects the local market in a more indirect way is climate change and how companies can and must adapt to this changing environment. Extreme events such as storms, hail, floods, earthquakes etc. occur more frequently and with higher intensity, destroying homes and businesses worldwide. This results in higher amounts being paid in compensation and as a result an increase in claims costs for insurers and reinsurers. Due to Cyprus's geographical position, we may not experience the direct impact of extreme weather conditions the same way some other countries are experiencing but definitely has an impact on the industry in various ways. For example, it increases costs due to the higher reinsurance rates and consequently the increased cost in buying sufficient reinsurance protection. This leads to making some risks unaffordable for the consumer or unattractive for the insurance company.

Digital transformation is also at the top of market trends as technology is advancing at a very fast pace and that impacts customer expectations. Today's clients are changing, seeking seamless digital experiences and personalized service more than ever.

Artificial intelligence, machine learning and data analytics are necessary investments for those who want to enhance operational efficiency, customer experience, and product innovation. This is not cheap to achieve as talent is hard to find, and when found is expensive to retain, and at the same time, the investment necessary to accommodate all this is quite costly.

The cost of repairing a damaged vehicle is approximately 15% higher than it was a couple of years ago and the cost of rebuilding a property around 30% higher

Inflation is also a top trend in insurance. Prices have risen significantly with insurers seeing an increase in claims costs. To give an example, the cost of repairing a damaged vehicle is approximately 15% higher than it was a couple of years ago and the cost of rebuilding a property around 30% higher. These increases put pressure on insurers to balance their pricing at a reasonable level without putting their profitability at risk.

Another area of interest is the evolution of risks. Cyber risk for example is a risk that businesses will have to consider when planning their future strategies and this creates new risk areas for insurers to focus on. Additionally, the development of electronic and automated vehicles. Cyprus is not following the development at the same pace as Europe or the USA either in infrastructure or sales and therefore local insurers face a lot of uncertainties when it comes to assessing these types of risks due to smaller volumes and lack of historical data.

Cosmos Insurance closed 2023 with significant production and strong capital adequacy indicators. To what do you attribute this success, and looking ahead, what are your strategic goals for the company in the near future?

The past year was indeed a good year for Cosmos. We closed the year with profitability from insurance operations, which was our primary goal. This is the result of team effort as all departments work with the same goal in mind, which is none other than the good performance of the organisation. Since the year 2020, the company has gone through various changes, both at strategic and commercial level. Some of these decisions weren't always easy to take but were taken with the aim of achieving a healthy and balanced portfolio that will allow the company to grow and become one of the key market players. The results leave a very satisfying feeling because it is proof that the decisions made were the correct ones.

For the future, the strategy remains the same. We aim for steady and healthy business growth with the primary goal being maximizing the value of the Company for all stakeholders.