POL I CY The Israeli Insurance, Pension & Finance Newspaper 12 Special edition 2022 Riding in thick fog is always more difficult. You can’t see the car in front of you, and in the rear-view mirror all you can see is yourself - the driver. All the passengers are extremely tense and on high alert. Even the familiar daily drive back home becomes a huge challenge. And here we are, in the “Travel Insurance and IPMI” vehicle. I am the CEO and I am driving the car. On the passenger’s side - the Risk Manager. The Actuary is sitting in the back, in the middle, trying to navigate us the way out. In the back, on the left, is the CFO, and on the right is the Legal Advisor (because he is always right!). Outside, there is thick fog. So thick that for every meter that passes the uncertainty of what awaits us only grows. We’re all wearing seat belts, this is our Re-insurance. But we drive so slowly and carefully, such that the seat belts are there not to keep us safe from the actions we may take, but to protect us should anything strongly collide with us. The Risk Manager shouts every second. She is clearly very tense. We are in unchartered territory. -“Watch out, Corona. Alpha, beta, delta, more Greek letters... Turn right, there are flight cancellations… Quarantine… Caution! War in Europe… Do not turn left, interest rates are rising in the US ...” As we try to make our way through the thick fog, I look at the mirror and ask the Actuary if he has any ideas how to get us through this. “Carefully”, he answers... “it’s a new world of risks, and it is my first time on this road”. Trying to make an eye contact with the Legal Advisor. She looks back at me ... “I will make sure to note in the affidavit that you drove carefully. And I will also make sure that we have all the necessary papers, just in case ...” I ask the CFO “What do you think?”. He responds: “Keep it slow and steady… We will burn less fuel and keep our expenses down” Meter after meter we progress, driving through the thick fog. Sometimes there are slight breaks in the fog that allows us to speed things up a bit, but the fog keeps coming back, every time ... True, an insurance company is meant to take risks. Insurer and Reinsurer. But in a world where the Actuary knows the road, and more or less where the deep pits are, it is easier to take risks and navigate the vehicle through those risks. These are calculated risks. But how do you even start running an insurance company in conditions of uncertainty with new surprises and unprecedented events at every turn and corner? DavidShield Insurance Company began operations in April 2020. At the start of the Covid-19 pandemic, right when we all thought that we would meet our Creator within a few days or months. To manage under conditions of complete uncertainty is possible only in one way - forget everything you knew up to that point, and start again with baby steps to assess the new situation and respond. Respond step by step to the immediate and the urgent. Progress slowly, clearly, but surely, meter-after- meter, through the thick fog that unfortunately in recent days has been replaced by the “fog of war”. No long-term decisions, no unnecessary risks. Only direct responses to the given situation, in the full knowledge that this Insurance vehicle may again need to be diverted quickly, as new challenges arise and responses are required. New decisions are made every day, every week. Not from indecision. On the contrary – from a wonderful ability to make quick, agile and adaptable decisions, under pressure, to meet a world of constant change. The understanding is that the world has changed and now we must address the new and changing needs of our customers, at a frequency that no one has known before. This requires fast and efficient work with business partners and authorities, as well as with reinsurers. Harnessing these factors to facilitate the frequent changes required to adapt and evolve, requires us to maneuver in an agile manner, and provide an immediate response to all new customer needs. Managing dedicated teams that research expected developments. A team of actuaries across different countries who give a global realtime picture of every change that has taken place in each country, Continued on page 41 THE FOG By Ran Mizrachi, CEO DavidShield Insurance Company
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