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[00:00:02] Paul Lucas: Hello everyone, welcome to Insurance Business TV as we close in on the RIMS Canada conference by taking a special look at the Canadian market. There have been, of course, a host of issues impacting the sector from regulatory pressures to AI advancements. And in this edition, we're going to get an overview of the market with a genuine expert in the field. That man is Rohan Dixon, leader of the Canadian office at Sompo. Rohan, welcome to Insurance Business TV.

[00:00:28] Rohan Dixon: Thanks very much.

[00:00:29] Paul Lucas: So Rohan, with the RIMS Canada conference around the corner, what key messages or strategic priorities is Sompo hoping to share with brokers and clients during the event?

[00:00:40] Rohan Dixon: It's an exciting time for us because we're relatively new into the market. And so we've been, although Sompo has been in Canada for over 50 years, it's been really in a small function supporting our Japanese clients. Over the last two years, we've built out a strong underwriting team. And I think the message that we want to give to our brokers and to our clients at this year's RIMS Canada Conference is that we're here for the long term. We've got a strong underwriting team. We're continuing to build on that. We love connecting with brokers and our clients, having conversations, talking about what's changing in the marketplace. You know, we've got an environment today where volatility, I would say, is kind of becoming the new normal, whether that be political changes, environmental changes, climate change. Everyone is going through a very difficult time. And we love talking to our clients about how we can help them with that risk transfer. Broker relationships are strong to that. Our client relationships are important. And I think the RIMS Canada Conference provides a great opportunity for us all to get together and have that dialogue.

[00:01:54] Paul Lucas: Yeah, clearly your growth has been amazing. But looking at the wider market, as you spoke about, and given the capacity constraints in certain lines and rising regulatory pressure too, of course, how are you positioning yourself to support Canadian brokers in delivering those consistent and reliable solutions to their clients?

[00:02:14] Rohan Dixon: Well, it's no surprise that this changes. Whether it be property, whether it be CAT, exposed risks, our approach at Sompo has been very consistent. Stay disciplined and we stay committed. We're not and will never be a top-line driven company. We are 100% focused on our underwriting. We're happy to work with clients on risk transfer. So I think that's the key kind of message that we're giving as those capacity constraints kind of hit to the market. The regulatory environment is complex, without a doubt. Canada has federal and provincial regulatory bodies that are all working independently. Having said that, we're working closely with them. We're enjoying building that relationship to help support our growth across all provinces in Canada, across all the different lines that we choose to write. 

[00:03:06] Paul Lucas: Yeah. And while we're talking about changes, of course, there have been rapid advances in AI, data analytics and digital distribution. So how is Sompo balancing the push for technological innovation with the need to maintain those strong, personalized broker relationships in Canada? 

[00:03:25] Rohan Dixon: Technology is incredibly powerful. You know, just recently, we've started to invest more in AI, both for our underwriters, using technology to help our submission processes. But it doesn't replace the human connection and I think that's incredibly important. It's incredibly important for us, for our underwriters. And as we bring on new talent, we're constantly saying, get out, meet brokers, go and meet clients. Go and understand what their challenges are that they're having at the moment. And in addition, we'll continue to invest in technology to make your lives easier, to make it more efficient for you to do business and to help that transfer of risk when any of the client chooses to do it. At Sompo, they coined a phrase, “ease of expertise”. We're definitely building the expertise. We're spending a hell of a lot of time building talent, recruiting great people to come and work for us for an underwriting driven company. And we'll continue to build that talent development from within. However, the ease comes with time. And that time is because we're continuing to invest in technology. We'll continue to look at generative AI, AI tools to support underwriters, tools to support our brokers, and tools to support our clients. That takes time. And we're in no rush to get there first. There's plenty of others that can lead that charge. What we want to do is make certain that our underwriters are empowered to make the right decisions at the right time. 

[00:04:52] Paul Lucas: And of course, if we can zoom in on the Canadian insurance market a little more, it seems to increasingly demand localized expertise and tailored solutions. So how does Sompo's boots-on-the-ground approach differentiate your value proposition from competitors? 

[00:05:09] Rohan Dixon: We're proud of the boots-on-the-ground proposition, the model in Canada. Now, we've only opened an office in Toronto. So, we've got, and we continue to build that out. In fact, we're recently moving out of our old office into a new one because we've expanded we've  run out of space. So that's exciting for us, to create a flagship operation. But we do want to make certain that we've got underwriters, claim specialists and leadership embedded in the markets and the markets we serve. So, as we continue to grow tailored solutions, new products we will put underwriters and support personnel effectively into operations where they make sense. So, expect over the next few years for us to open up more regional offices, continuing to invest in underwriting talent and claim specialists and risk control engineers, et cetera, across the country. And that's exciting for us. And I like the fact that we're still meeting with brokers and clients in their regions, in their operations, not for them having to come to us. And I think that does create a differentiation for us. 

[00:06:17] Paul Lucas: Yeah. So clearly, you're expanding, but looking at the wider market, do you think there are any areas of opportunity that brokers may be overlooking in the present environment? 

[00:06:27] Rohan Dixon: I think the broker marketplace at the moment is tough. There's a lot of competition. There's a lot of consolidation. There's a lot of competition for talent. And so, I think the focus they really need to have, yes, there's product changes within property, D&O, cyber. I think it's really getting closer and spending that time with clients. A lot of them are. A lot of them are spending a lot of time with their clients and understanding the challenges. But I still think that there is a shift post-COVID on our brokers and underwriters coming back into the office, spending time with their colleagues, with their clients, with their partners, and understanding what are those challenges they're going through. There is a lot of volatility in the marketplace right now. And so understanding how our clients are handling changes, whether it be tariffs, whether it be climate risk, whether it be where are they putting new operations, how are they looking to expand, what are they doing with global, what are the multinational companies that are working with underwriters to create global solutions. And I think that's really where I see the brokers adding a huge amount of value, which is collecting that data, understanding that needs and coming to the underwriters and saying, how do we create solutions? And so it's not just about, is there a new product out there? It's about how we tailor existing products and then how do we look to innovate for the future? 

[00:07:56] Paul Lucas: So clearly there's a lot of value for them to add, but do you have any general tips for insurance brokers operating in the Canadian market for the remainder of the year? 

[00:08:07] Rohan Dixon: I think the first is just continue to deepen the expertise. Don't get distracted with the noise in the market. I think that there is clients that are, again, as we stated, navigating complex risks, and they're looking for guidance. They're looking for people to give them advice or ask the relevant questions. And I think working with carriers who are thinking for the long term, there is, you know, there's domestic capacity, there's international capacity that's coming into the marketplace and is continuing shifting and changing. And we're starting to see that with a certain lines, maybe having, you know, softening or signs of softening. And I think that for me is around work for the long term. You know, there's many underwriting organizations, Sompo being one of those that are really there for not just today, but for the future. And we're looking for brokers that are true partners that can help clients build that resilience over time. 

[00:09:03] Paul Lucas: Yeah, great tip to Rohan and a huge thanks for your time. Many thanks to you, of course, for watching. And we'll see you next time right here on Insurance Business TV.