Heading in the right direction

Heading in the right direction

Sue Houghton likes what she sees at QBE, with the new Australia Pacific unit chief putting listening top of her agenda

By Bernice Han

New QBE Australia Pacific Chief Executive Sue Houghton has been busy familiarising herself with the business since August, when she formally took up the role.

Ms Houghton started in QBE’s head office a month before Andrew Horton took over as Group Chief Executive from Richard Pryce, who has been overseeing the insurer on an interim basis since the departure of Pat Regan.

In her first media interview since taking up the new job, Ms Houghton tells Insurance News what she has seen and learned about the company in the short time she has been there leaves her in no doubt the business is heading into a bright future.

“It’s an exciting time to join QBE,” she says. “The business is at an exciting ‘tipping point’ with Andrew Horton joining.”

She says a lot of momentum has already been achieved, “and I feel like the business is ready to pursue its next phase of growth”.

“I’m looking forward to being part of this journey. It’s a huge privilege to be taking on this role.”

The performance of the Australia Pacific division is vital to the far-flung group’s collective health. QBE is the fourth-largest player in the Australian insurance market, with Australia Pacific one of three regional business units.

The division achieved a strong June half, significantly increasing its pre-tax insurance profit to $US230 million from $US25 million in the previous corresponding period. Gross written premium improved 18% as the average renewal premium rate rose 7.7% from 5.5%.

Leading by example: Sue Houghton

Ms Houghton says she will be prioritising a few key areas as she looks to build on the division’s results and strengths.

Much of it will involve “listening to our customers, brokers, partners and people to gain a thorough understanding of the business inside and out”.

“Taking the time to listen will provide me with a really strong sense as to what is working well, and where opportunities may exist.

“I also want to get very clear on what the key areas of focus are for our strategy, and to understand what’s needed for QBE to take it to the next level and really deliver for our customers.”

Ms Houghton says as the division’s leader she is in a “privileged” position where she is able to motivate people and give them pride and purpose in what they do.

“I highly value empathy and engagement as leadership traits and aim to lead by example,” she says.

“Importantly, we need to be really confident we’re all heading in the same direction. Having a clear strategy and communicating well is key to uniting people around a common goal.”

Ms Houghton, who is also President of the Insurance Council of Australia, was most recently Insurance Head at Westpac insurance. She led the lenders’ mortgage insurance, general insurance and life units at the bank, which has since sold the businesses.

She has also held senior leadership and management roles at Wesfarmers Insurance, IAG and Gallagher in Australia.

She has joined QBE at a time when the challenges and opportunities facing the insurance industry locally and internationally are considerable, with climate change and geo-political shifts impacting the global order.

Ms Houghton says many significant longterm macro-changes need to be factored into insurers’ business plans, along with the “emerging impacts” of the pandemic.

“These are major issues that will impact all insurers, which we need to face up to,” Ms Houghton says. “They also provide opportunities to look at things differently and see how we can make a difference in these areas.”

She says COVID-19 has “changed the world”, presenting it with “a lot of unknowns”.

“One of the lasting impacts of the pandemic will be how it has changed the way we all work, with the permanence of hybrid working,” Ms Houghton says.

“Companies will need to continue to look at flexibility and how we come together to collaborate, including when we need different spaces and environments to conduct our work and maximise productivity.”

Employee wellbeing is a related area of importance in the wake of the pandemic, and Ms Houghton says “it’s critical in this new world to ensure the wellbeing of our people is front and centre”.

“We’re living in dynamic times with a lot going on. Therefore it’s important to ensure we don’t underestimate how this can impact on people’s mental health.” 0