Setting the pace with global capability, local delivery

Amid challenges from climate change to technological disruption, insurers everywhere are seeing the need to change up a gear to stay relevant and effective. Jonathan Groves is well prepared for this acceleration as he takes the helm at QBE Insurance New Zealand and Pacific. Appointed CEO and managing director in August, he believes today’s challenges present unique opportunities for innovation and growth – and that New Zealand is well positioned to make an outsize contribution to the global conversation. “New Zealand is a microcosm of much larger economies and therefore a great test bed for insurance innovation. I think as an insurance industry, that’s something that we should really grasp,” he says. Groves sees climate change as an ongoing reality that requires insurers to shift from reacting to individual weather events to understanding broader

weather patterns. On the tech front, the transformative potential of AI and data analytics is reshaping risk assessment and customer engagement. At the same time, it’s important that insurance companies bring brokers along on the journey of transformation that lies ahead, something that will require a combination of savvy communication and strong working relationships. QBE in New Zealand, which offers business insurance including commercial motor, commercial property, liability and more, aims to leverage its significant global capabilities and deliver them locally to help lead the industry in developing smarter, more adaptive and more effective solutions.

Technology is rapidly transforming the insurance landscape, offering new tools for risk assessment, customer engagement and claims processing. Groves sees technology as a key enabler for the industry, touching every part of the value chain. AI is one area where Groves anticipates significant evolution. “I think AI will help us in our understanding, making us quicker, more complete and more effective in terms of what we’re able to deliver to a broker or a customer.” Data analytics is another field in which the insurance industry has made substantial progress. “If we go back 30 years and look at where modelling was then, and we use flood modelling as an example, it’s come on by leaps and bounds,” Groves says. “It’s not because we’ve had so many more flood events, but because of the way we’re using technology and data to help us actually understand what leads up to a flood event, how resilient a property or a location is to a flood event, and how you then go about effectively cleaning up afterwards and ensuring, as best you can, you don’t have a repeat.” In New Zealand, the adoption of advanced modelling techniques has been particularly rapid. “For New Zealand, we’ve been able to move to location-specific versus postcode-specific data across the entire country relatively quickly,” Groves says. This advancement has significant implications for risk assessment and pricing in the New Zealand insurance market. QBE now has the ability to set different risk levels even within a property, where one part might be more vulnerable than another, or there may be two buildings on the same property. This means that customers who aren’t high risk are not paying for those who are, even if their home is right next door. “It’s a lot fairer when customers pay for their risk only.”

Despite the insurance industry’s reputation for being slow to adopt new technologies, Groves sees significant potential for innovation in New Zealand. “New Zealand has a great opportunity to be far more of an innovation hub than I think it has been,” he says. He points to several factors that make New Zealand an ideal testing ground for new insurance products and approaches: an educated workforce, exposure to a range of natural perils, a well-developed industrial sector and substantial export industries. This unique position, he believes, gives New Zealand-based insurers and brokers the opportunity to lead the way in developing new

approaches to risk management and insurance products. In this regard, QBE is an insurer with the capability to quickly transfer local insights to a global audience – with operations in 26 countries around the world and all the resources expected of a multinational with decades of experience. In tackling complex yet common challenges, Groves strongly believes in the importance of the tripartite relationship between insurer, broker and customer. “That’s how we effectively solve problems,” he asserts. “It’s at the heart of a successful insurance business and a successful broking business because we can both bring our best to help the customer.” This collaborative approach is particularly valuable when dealing with emerging risks and new technologies. “It’s about how we as an insurer need to understand the risks faced by our customers and potential customers, and how we think about creating solutions which help them with the issues that they have,” Groves explains. “It’s not about creating a product which solves an imaginary problem.”

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Climate change has become a central concern for the insurance industry, reshaping risk landscapes and forcing a reassessment of traditional models. “Climate change is with us, whether we like it or not,” Groves says. “We see more frequent events, and needless to say, some of those are more severe.” Groves emphasises the importance of distinguishing between weather patterns and individual weather events. “I think a lot of people focus on weather events, and at times the lack of a weather event, and say, ‘Wasn’t that just a one-off?’ But we need to look at weather patterns, understanding the weather pattern over periods is changing, which means the weather events within those weather patterns will also shift,” he explains. This long-term perspective is crucial for the insurance industry, particularly in New Zealand where natural disasters can have significant impacts. “We have a role as insurers to continue to highlight that, because we’ve obviously got the data going back years in that context,” Groves says. The challenge of climate change also presents opportunities for innovation in insurance products and risk management strategies. Groves cites examples such as solar panels, wind turbine technology and wave technology as areas where the industry needs to evolve. “It’s important that we evolve to match these new technologies and risks,” he says.

QBE Insurance has proudly protected New Zealand businesses for more than 125 years. Working in partnership with brokers, QBE provides a comprehensive range of quality insurance products for businesses of all sizes – from small owner-operators to large corporations – across many of the industries that keep New Zealand running. QBE is globally supported with more than 11,000 employees across 25 countries. With the head office in Auckland and five branches around the country, we’re on hand to enable a more resilient future for our customers and the community.

Company Profile

324

No. of employees in New Zealand

134

Years operating in New Zealand

68%

Gender equality score (vs 44% global average)*

143.85%

Prescribed capital amount coverage in New Zealand

Countries in QBE’s global footprint

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Years of Experience

25+

Tenure IN current position

3 months

based in

Auckland

Jonathan Groves

CEO and managing director of QBE Insurance New Zealand and Pacific

QBE Insurance in New Zealand is leveraging global strength to tackle challenges, driving innovation locally while reshaping risk management, enhancing customer engagement and supporting brokers

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“New Zealand is a microcosm of much larger economies and therefore a great test bed for insurance innovation. I think as an insurance industry, that’s something that we should really grasp”

Jonathan Groves, QBE Insurance New Zealand and Pacific

“I’m a strong believer in people, customers and how we run our business – in that order. The financial results follow from that”

Jonathan Groves, QBE Insurance New Zealand and Pacific

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Karen Adams

President and CEO at Fundserv

Before becoming CEO of Fundserv, Karen Adams held a variety of leadership roles around the world – and she learned that listening and understanding are key to both providing service and developing talent

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President and CEO at Fundserv

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Keeping up with climate change

New Zealand as a test bed for insurance innovation

Published 06 Nov 2024

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Technology as a game changer

Environmental, social and governance (ESG) factors are becoming increasingly important in the insurance industry, and Groves sees this as a key area of focus for QBE. “ESG broadly, and climate change specifically, is high on the agenda,” he says. “It comes down to not only underwriting decisions but also how we continue to make investment decisions.” Groves highlights the importance of investing in green bonds and other environmentally friendly options. “We need to continue to highlight the work we do as insurers there as well, rather than always just focusing on the underwriting side,” he explains. “There are two aspects to what we do: one is paying claims, the other is how we invest the funds until we pay those claims.” This dual approach to ESG – considering both underwriting and investment decisions – reflects a growing recognition in the insurance industry of its broader role in society and its potential to drive positive change and enable resilience. Helping brokers and their customers in this area is priority. QBE has developed a free template to help customers assess ESG risks and identify opportunities across the areas of sustainability that are most important to them and their stakeholders. Groves notes that being responsive to brokers is crucial. “It’s about helping and sharing our learnings to continue to strengthen our partnerships, and making sure we’re taking the time, when giving a response, [to ensure] we’re really giving context to our response.” He sees this as a combination of pitching the issues well to brokers, taking them along on the journey of change – and building long-term relationships that rely on trust. This also means delivering on promises around claims processing during times of crisis. Following the weather events of 2023, QBE continued to deliver on its claims service obligations for both business-as-usual and catastrophe claims, to help get customers back on their feet as quickly as possible.

A growing profile for ESG

As the insurance market continues to evolve, Groves stresses the importance of maintaining rational behaviour and long-term stability. “Just because something hasn’t occurred since the start of the year doesn’t mean it won’t happen,” he cautions. This approach is particularly relevant in the New Zealand market, where natural disasters can have significant impacts on the insurance industry. He advocates for a measured approach to pricing and risk assessment. “That’s how a stable, resilient industry operates and succeeds,” he says. Groves brings to his role a leadership philosophy that emphasises people and customer service. “I’m a strong believer in people, customers and how we run our business – in that order. The financial results follow from that.” This focus on empowering employees is directly tied to customer service, which Groves sees as paramount in the insurance industry. “When customers actually need to use our product, they’re facing into a real problem,” he points out. “We have to make that product work to make them feel like it was a good experience, even though they’ve had this event occur to them or around them.”

Stability in a volatile world

Groves’ diverse background in the insurance industry, spanning underwriting, brokering and risk management across multiple countries, informs his approach to leading QBE’s New Zealand operations. “I’m bringing a mix of insurance, reinsurance, broking and underwriting experience to the role,” he says. This blend of international experience and local know-how is central to QBE’s strategy in New Zealand. “We can pull on that global strength, but then we’ve got people on the ground, people that have been in the industry, that know business inside out, who are there to help,” Groves explains. Groves’ vision for QBE prioritises adaptability, innovation and a deep commitment to serving the unique needs of the New Zealand market. By leveraging global resources and local expertise, QBE aims to help shape the overall industry response to a complex risk landscape.

A global perspective with local expertise

*Equileap Gender Equality Report & Ranking report

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2013

2018

2024

2016

2019

2021

Jonathan Groves joins QBE as chief risk officer of Equator Re

2013

Assumes role of chief risk officer for QBE Australia Pacific business

2018

Appointed CEO and managing director of QBE New Zealand and Pacific

2024

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2016

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2019

Appointed CEO and managing director of QBE New Zealand and Pacific

2024

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