CFOs in Asia need to step up to the challenge of their expanding role

With the changing market landscape and growing complexity of risks for the insurance industry, CFOs need to play an expanded, strategic and more active role in running their organisations and work as effective partners to their CEOs, said the speakers at the 6th Asian Insurance CFO Summit this week in Singapore.

Saying that the role of the CFO has undergone significant transformation, David Fried, Regional CEO of Allianz Asia Pacific, urged CFOs to move away from routine administrative functions and focus more on the strategic issues of the business. “A CFO has to emerge as a change-driver, an effective partner and collaborator that his CEO and the rest of the organisation expect of him,” he said, comparing the role of a “future-year” CFO to that of a co-pilot. “With their role constantly evolving, CFOs need to wear many hats.” Dr.Huang Tien-Mu,Director General, Insurance Bureau of Taiwan’s Financial Supervisory Commi-ssion, said that an insurance supervisor expects CFOs to build a sound financial system for their company and plan and promote its sustainable and healthy growth, taking into account the risk characteristics of both asset and liability.

“I would like to see CFOs build more professional skills and focus not only on financial performance, but also on the creation of new value through contributing to the risk management process for example, and to communicate with relevant parties.” He said that there will be more expectations of the CFO function, noting the rapidly growing “universe” of the role. “From the perspective of a regulator, I certainly look forward to strengthening communication and cooperation with insurance CFOs in the future so as to promote a healthy growth of the market and towards protection of the policyholders.”

Chris Wei, Group CEO of Great Eastern Holdings, said that the role of the CFO today starts with the ability to communicate and to communicate well. “Other skills are important, of course. But as you get more senior in the role, the ability to communicate is critical.” He added that open mindedness and the abilities to adjust accordingly to changes, to cooperate with other people and teams and to be transparent are also important for the role of today’s CFO. “The reliability of a CFO’s work is key as well.”

Organised by Asia Insurance Review with Ernst & Young, the two-day conference has attracted more than 150 delegates from 22 countries and is sponsored by RGA, J. P. Morgan Asset Management and Singapore College of Insurance.