Becoming a market leader requires developing the right strategic intent, QBE’s Matthew Kearns tells Business Advantage PNG. That means understanding your company’s goals and value proposition, and planning effectively.

QBE’s Matthew Kearns

Working to your strengths, and specialising in those strengths is the key to becoming a leader in your sector, Matthew Kearns, General Manager of QBE Insurance in Papua New Guinea tells Business Advantage PNG.

‘You need to understand the market you are in. You need to understand where you fit in the marketplace. You need to set your goals and your value proposition. You then need to stick to your plans.’

Vibrant market

While PNG is considered to be one of the least insured countries in the world, Kearns says its insurance market is ‘vibrant.’

‘We also want to be a top provider of insurance solutions for SMEs, using technology-based solutions that make it easy and efficient for them.’

The number of players in the market could be seen as one reason.

‘One of the main differences with other insurance markets is the higher number of licenced insurers per premium dollar,’ he says.

‘A large number of insurers might appear as a very positive development because it indicates a healthy, competitive sector. However, it does place strain on the capital demands and solvency of some insurers.

‘Fight for market share means that some players quote very low premiums, which can have a negative influence on their ability to respond to claims and this can weaken the industry as a whole.’

Strategy

Kearns says QBE’s strategy in PNG is aligned with the Australia-based QBE Insurance Group’s emerging markets strategy.

‘This includes being a leader in specialty lines such as marine, liability, and engineering as well as being a leading commercial lines insurer.

‘I am a strong believer in empowering people to give them the confidence to think on their feet, make quick decisions and help our customers manage their risks.’

‘We are working to strengthen our offerings in areas such as Workers’ Compensation and Directors and Officers Liability.

‘We also want to be a top provider of insurance solutions for SMEs, using technology-based solutions that make it easy and efficient for them.

‘And we are also working to become a niche personal lines insurer through affinity and strategic partnerships: with banks, for example.’

Managing staff

Kearns believes in sharing goals and commitments with his staff and making all employees collectively accountable for the results.

‘I am a strong believer in empowering people to give them the confidence to think on their feet, make quick decisions and help our customers manage their risks.

QBE PNG donated a new generator to Malabunga Secondary School Source: QBE PNG

‘I have high expectations and work hard with staff to ensure they understand these expectations. I also believe in rewarding good results.’

Kearns says the key financial indicator is achieving profitable growth, he says. That means looking at both the top line and bottom line.

QBE has been in PNG since 1899 and has maintained a leading position despite increasing competition.

‘Our healthy appetite for risk, our access to the global capabilities of the QBE Group and our strong local knowledge have all contributed to our success.

‘During an economic downturn, such as PNG is currently experiencing, Kearns will rethink and review processes and procedures.’

‘While we monitor the competition, our main focus is on delivering high quality service and products to our customers.’

Downturn

During an economic downturn, such as PNG is currently experiencing, Kearns will rethink and review processes and procedures.

‘We can all become more efficient and find better ways of doing things.

‘Clearly, commodity prices have a major effect on this economy. What is also clear is that the medium-to-long-term prospects for the PNG economy are very bright, as there is a number of major projects ready to mobilise and provide stimulus.

‘Kearns says that whatever the economic conditions are, the corporate sector must continue its community involvement.’

‘Like all economies, PNG must contend with an uncertain global economic environment which can have indirect and direct impacts.

‘A significant challenge, specific to PNG, is the shortage of foreign currency, which is impacting local companies ability to import goods.’

Community

Kearns believes that whatever the economic conditions are, the corporate sector must continue its community involvement.

‘In PNG, we do this through the QBE Foundation. We’ve done things like donating computers and a new electricity generator to the Malabunga secondary school in the East Britain provinces.

‘We support disadvantaged children through Save the Children. And we donate money and volunteer our time at the Blood Bank of Port Moresby’s General Hospital and for the Clinton Health Access Initiative.

‘Giving back to the community is an important part of what we do.’