African insurers and reinsurers have been reminded to embrace ethical, collaborative and transformational leadership as additional tailwinds to the industry’s resilience and sustainability agenda.
The 50th anniversary of the African Insurance Exchange (AIE) left the 1000-plus delegates reassured of the resilience and sustainability of the African insurance and reinsurance industry.
Held in South Africa’s Sun City from 21-23 July 2024, the event highlighted many challenges facing the sector but also gave assurances that the dynamic risk management and insurance professionals in attendance were capable of meeting these challenges head-on.
The event kicked off with its traditional flag-bearing ceremony followed by opening remarks by Insurance Institute of South Africa (IISA) CEO, Thokozile Mahlangu. “The 50th AIE event is testament to the collaboration, dedication and innovation that has defined our organisation over the past five decades,” said Mahlangu.
Mahlangu said AIE 2024 was an opportunity to reflect on the incredible achievements and progress made by stakeholders across Africa’s insurance and reinsurance landscape. She noted that over the past five decades, the industry had seen significant change in consumer behaviour and demands; legislation and regulation; and the types of risks for which insurance coverage had to be provided.
“This conference is a platform for thought leaders to share their knowledge and insights in their fields, an opportunity for leaders to connect and engage, and a chance for young up-and-coming leaders to connect with captains of the industry,” Mahlangu said.
Collin Molepe, chief executive at Absa Insurance Company, emphasised the place of ethical leadership, applauding such individuals who have “consistently gone above and beyond, inspiring and motivating us to achieve greatness”.
In her keynote address, Phumzile Mlambo-Ngcuka, who has served in various leadership positions in South Africa including member of parliament, Deputy President and secretary-general and executive director of United Nations Women, asked insurance industry leaders to evolve with the times as they navigate the industry through changing nature and size of risks.
“We need to be adaptable and solution-driven as we face this changing world,” said Mlambo-Ngcuka, adding that change was among the few certainties in uncertain times.
She singled out transformational, ethical leadership as a key requirement for Africa and the world.
“Most of our failures and successes are not because a country is rich, for instance, in natural resources; but in most cases because of good or bad stewardship,” she said.
Your writer chooses to reflect on this comment for a moment because in his experience, active stewardship and ethical leadership are constructs that crop up in practically all addresses and debates about environmental, social and governance (ESG) factors and sustainability. Put another way, active stewardship and ethical, transformational leadership are non-negotiable in ensuring a sustainable insurance and reinsurance sector.
Collaborative leadership
Mlambo-Ngcuka offered a powerful framework for leadership: “The key aspect of transformational leadership is intent; you have got to mean to bring about change and this change must be substantive and measurable. Ethical leadership is also important because of its simplicity; it requires you to be fair, to have integrity, to have respect, to be accountable and to lead by example.” It goes without saying that leaders need expansive knowledge of the industry they choose to lead in.
According to the speaker, leaders “have to know what [they] are doing”. Additionally, they must be team players, capable of empowering their teams to be effective.
“Transformational and ethical leaders are team players, empowering their teams to be effective in their own rights; shared responsibility and decision-making become the norm and ensure that all members of the team become stakeholders and active role players,” she said.
And then, in an insightful comment that should resonate across business sectors and country borders, Mlambo-Ngcuka pointed out that leadership “is not about exercising power over people, but about exercising power with people”. This collaborative approach should not, however, detract from the leadership trait of decisiveness, with the keynote speaker pointing out that unpopular decisions have to be made. Her advice was to be bold and transparent about such decisions.
The leadership-focused discussion was opportune in a South Africa that is just getting to grips with the multi-party government of national unity that emerged following the country’s May 2024 national election. The leaders promoted to the country’s expanded cabinet will become role models who establish habits and institutionalise procedures in the portfolios they lead; their behaviour will give permission to others to follow suit.
“When we had a corrupt president, we gave permission to millions of our people to be corrupt; it is easier to corrupt people than it is to course-correct,” Mlambo-Ngcuka lamented. This turned out to be a tough part of the address, with an acknowledgment of the pain that unsuitable leadership can cause.
As she pointed out, once people embrace an unacceptable trajectory, it takes a path of its own, making it difficult to get back on track. In the South African context, the slide towards corruption and state capture was arrested by civil society, the judiciary and many others who were outspoken over failures in the public service, the private sector and communities.
Mlambo-Ngcuka reflected on her experiences in Ethiopia and Sudan, where differences within nations had (and continue to) cause havoc and pain for citizens. “God forbid we ever reach that point,” she said. “Already, the lives of many of our people almost feel like they are at war, because of the challenges they have to face.”
She concluded with an impassioned plea for all in attendance, and all in the country, to take a lead in making a difference: “You do not become a transformational leader for yourself; you do so for the broader community that helps you generate profits, that helps to support you. You have a shared responsibility to make your community a prosperous community.”
The keynote address set the stage for the remainder of the two-day conference that was filled with insightful discussions about cutting-edge advancements in the insurance and reinsurance sectors, and offered networking opportunities with industry leaders and professionals from across the continent.
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