Summer questions: Suncorp CEO Jimmy Higgins takes stock after weathering a massive year

Suncorp New Zealand chief executive Jimmy Higgins worries about government, communities and businesses moving on with their own agendas post-Cyclone Gabrielle. Photo / Supplied

Suncorp New Zealand chief executive Jimmy Higgins has had a massive year at the helm of one of the country’s largest insurers. He talks about rallying in response to extreme weather events, calling for people not to forget what happened. An Irishman, Higgins also shares what New Zealand could learn from his homeland, and discusses the art of knowing when to be diplomatic and when to take action.

What are your hopes for the new government?

A new government can signal a time of hope and optimism, particularly if we see policies that allow businesses to operate more efficiently and support the economy — ultimately, policies that support our customers.

I’m hoping the new government (and in fact successive governments) attracts foreign investment into New Zealand. It’s a great place for foreign companies to set up operations. I was part of a NZ Initiative trip to Ireland in June this year and, being Irish myself, there are a lot of similarities between New Zealand and Ireland — climate, agriculture, tourism, population size, and of course both have great rugby teams. Over the years I’ve seen how Ireland has prospered through stronger education and the importance of foreign direct investment, driving a strong culture of entrepreneurship. This is something New Zealand can and should encourage for the long-term future of the country.

New Zealand is an attractive country to live in and do business — it is resource rich, especially in terms of people, has a strong sense of community and respected culture, and is a fantastic country to raise families. We are not tapping into its full potential.

How would you describe 2023 for your business?

Well, it was a significant year for an insurance company, starting off with two of the most extreme weather events we’ve seen, at a time when a lot of people were still enjoying their break — we had to call team members back from holidays and, for a lot of them, it just hasn’t let up this year.

These weather events put pressure on the business, pressure on our people and pressure on our customers. But we got through it. We got through the worst of it with great support from our suppliers, our brokers and partners and the reinsurance companies. It is also important to mention the responsiveness of central government and local councils, particularly for the more severely impacted homeowners. Some tough decisions had to be made about rebuilding in situ or taking the step of assisted retreat from high-risk areas. We quickly realised that working together with the central and local governments was the most efficient way of accelerating the recovery and the whole insurance industry has come together, with a very common and aligned purpose.

I worry that, as we enter an El Nino weather pattern and our government, communities and private industries move on to their own agenda, we will forget what happened and not continue to evolve the country, building more-resilient homes and communities. We have to learn from this — we have to improve, adapt and evolve.

What will be your biggest business challenges in 2024?

Whatever our challenges are next year, we will only be successful if we have a great team. For me, it starts and ends with people. I want our people to have a good break and come back refreshed. I’m excited about next year’s opportunities, and it’s important for our people to be excited as well. It is important for us to grow the business but equally, it’s important to face into the challenges that are ahead of us and our customers. If you’ve got good people, and they’re highly engaged and capable, then they deliver the goods. They get stuck in, and they do it well. When that happens, that is what I’m most proud of and it’s very satisfying.

Ultimately, all roads lead to people. Finding them, growing them, and then getting out of their way so they can do great work. My job is to create an environment where people love to come to work because it’s interesting, they enjoy and learn from the people they work with, and they feel they are making a strong contribution to the company’s success and the communities in which they live. In a multicultural New Zealand, it’s important to me that everyone feels welcomed and included.

What opportunities do you see in 2024?

Quite clearly, the biggest disruptor to the insurance industry is going to be generative artificial intelligence (GenAI). And GenAI will also create the biggest opportunity for us. When you look at our business model, our products and how we engage with each other, our customers and suppliers, we employ a lot of structured and unstructured data. GenAI will help us to significantly improve productivity so that our people can spend quality time connecting with and supporting customers.

GenAI will remove the redundant, manual activity that doesn’t add a lot of value, but just has to get done. But it won’t replace human interactions — I want our people to have more time to engage with customers, and with each other.

What was the most interesting news story of 2023?

There were so many global stories that fed our news outlets in 2023, from the Middle East conflicts, coronations, the Titanic submarine, the failure of the Silicon Valley Bank and Signature Bank, the criminal indictment of the former US president. However, the one I was monitoring was the Hollywood writers strike because some great shows came to an abrupt end until the strike was resolved. Hopefully, 2024 will see some return to finish their stories such as Yellowstone.

What are your predictions for 2024?

Well, I’m hoping we’ll have less rain for one thing. But also, I think it’s going to be an interesting year for geopolitics. I think the US presidential race will be one to watch, and we may also see a UK election in 2024. Political changes in these big economies will undoubtedly have an impact on New Zealand. I am also hoping that 2024 is when we see geopolitical tensions improving, as well as current conflicts finding a solution for peace.

What’s the worst mistake you have made in business?

I wouldn’t say it’s a mistake, but beware of not trusting your gut and letting someone convince you to go against your instincts.

When I’ve done that — ignored my gut instincts — I’ve made mistakes, but I’ve also learned from them. When I first moved to New Zealand to lead the response to the Canterbury earthquakes, it was a lot to navigate, both in terms of the recovery efforts and operationally. Being new to New Zealand, I was cautiously navigating the personalities and agendas of stakeholders I was engaging with — both externally and internally.

My learnings were there’s a time for diplomacy and there’s a time for action — and you need to be alert to when it is appropriate for either approach. Pathways often become clearer when you put the customer at the centre of your decision. If it’s not good for the customer, then generally it’s not the right decision. Our business is very reliant on customer satisfaction and our philosophy is to do the right by the customer, then success will follow.

What would you rate as your greatest success?

Look, I’d probably have to say that my greatest career success is the privilege of running the Suncorp New Zealand business. I’ve spent many years in the professional service industry, including the last 15 years with Suncorp (both in Australia and New Zealand). I’ve been involved in many natural disasters over that time, and you get to see first hand the value of insurance and how it helps rebuild people’s lives.

As the CFO for Suncorp New Zealand, you get a deep appreciation for the input costs of insurance and factors that drive margins, but taking on the CEO role was a significant move for me, as you become accountable for everything. It’s also the most satisfying role, particularly when things go well, but also when we step up to help our customers in need. It also helps when you have a great team supporting me, as well as a very supportive board and group CEO.

Where and how are you holidaying this summer?

This year it’s a local one. Hopefully, you’ll find me somewhere out on the Hauraki Gulf, fishing with my two boys. And hopefully, my wife and daughter will come along. And we may head over to the Coral Coast for a week, up near Bundaberg. Basically, I’ll be chasing the sun.

What would you recommend as a good book to read, or podcast to listen to, over summer?

After all the reading I do during the year for a variety of executive and board meetings, in my spare time I read fictional spy novels. At the moment, I’m reading the Gabriel Allon series by Daniel Silva. Well actually, I’ve read them all now and I’m eagerly awaiting the next novel.