The Gains of Taking Risk

Intent at staying for the long haul with hopes of seeing fairer skies, global insurance firm Allied World Assurance Company decided to locate in Asia amid- and despite- the recent credit crunch.

“The company’s decision to expand into the Asia Pacific region was not taken on an opportunistic basis; we entered the market with a long term view,” says Bruce Ford, Allied World Vice President and Head of Treaty for the Asia Pacific, Middle East & Africa.

“Our plan is to be here for a long time and to provide consistent pricing and service to our clients regardless of market cycles or economic conditions. So the fact that there was significant financial turmoil globally when we set up our Asia Pacific operations was something we viewed as helping to show our clients that we are in this for the long haul,” he says.

Looking at the risky move as capital, the Bermuda-based insurance and reinsurance firm is optimistic that market penetration in Asia will soon grow. Ford noted that US and Europe insurance penetration is almost at 8 percent GDP, fairly ahead of the average 6 percent in the Asia Pacific.

“However, the GDP growth and increase in personal wealth and savings in Asia Pacific mean that the insurance sector is still set to see significant growth for some time to come. Our region also includes the Middle East and Africa, which we have not begun to completely explore yet, but we are already seeing significant opportunities in those markets as well,” Ford says.

At the heart of Allied World's service is customizing a product to fit a client’s individual needs rather than offering a one-size-fits-all product. “We believe in providing a high level of service, which means not only being timely but also flexible and creative in designing solutions,” says Ford.

The firm also counts on its highly motivated staff known to be experts in their field. Ford compliments his people, saying: “We believe our people are amongst the best in the industry within their particular field of expertise, but what separates them from their competitors is their positive attitude and passion for the business and their clients.”

Constantly innovating and enhancing its service, Allied World has been advocating transparency in the industry.

The firm has also localized reinsurance within Asia, shifting the process from London, the US or its Bermuda headquarters.

“These days there is a desire on the part of clients and brokers to do business with someone they know and trust and can contact during business hours. We have adjusted to this by setting up full strength operations in Singapore and Hong Kong," says Ford.