Olav Jones, deputy director general, Insurance Europe
Jones heads the federation's economics and finance department where he is responsible for prudential regulatory issues, accounting and investment, as well as international affairs and reinsurance. He has become the point man for the European industry's lobbying efforts, notably on Solvency II, but also the many other regulations emanating from Brussels.
Who do you most admire in the field of risk management?
I would say Warren Buffett, because insurance is core to his group, and risk management is done by the management, not by the risk managers. Complex models are often what comes to mind when people think of insurance risk management, and they are important, but a CRO is only able to do their job if they have a CEO who is able and willing to apply the basic rules of good risk management day in and day out – even when an exciting M&A deal comes across their path. No one has a better track record at that than Warren Buffett.
What have you learnt about communicating risk and risk management?
Communicating about risk and risk management is not easy. It can be very technical, it will include bad news which people would rather not hear, and during "good" times people can tend to forget the importance of it. Two key things I have learned are firstly to make clear that taking risk is actually good; it is what insurers do for our policyholders and how we can make money. Secondly, always aim to start with a clear explanation of why an issue matters – simple stress tests and their consequences work best in many cases.
What are the major challenges ahead?
The general challenges for the market include avoiding a situation where risk management requirements set by regulation or market expectations become too bureaucratic and onerous – this is especially true for internal model approvals. Adapting to be ready for a long-term low interest rate environment in case it happens, including ensuring the skills are there to invest in a potentially wider range of assets than before.
What are your other interests?
Spending time with my family, cinema and tennis.
