FOR Aki Hussain, delivering positive results on the business front is part of a personality trait that always look forward with energy and innovation as its rocket fuel. His sound strategic thinking, professional discipline and patience have allowed Hiscox to be at the very forefront of the UK insurance in dustry. In August 2023, he revealed how a stra tegic decision to conserve capital in recent years yielded substantial profits at the outset of the year. His company Hiscox, a globally diversified insurance conglomerate, reported a pre-tax profit of £207.8m in the first half of 2023, marking a significant surge from the £19.6m record ed in the same period of 2022, the year Hussain took over as its CEO, leading a company he loved for its culture, ethos and scale of opportunity.
This surge was propelled by escalating premium rates and the adept allocation of capital, at a time when competitors grappled with challenges. In an interview, Hussain said that the strong profit was not accidental and every busi ness sector was witnessing growth. His profound financial acumen has been in strumental in Hiscox’s growth, enhancing revenue and profitability while effectively managing risks and upholding financial rigor. Hussain’s rise in Hiscox has been steady. Born in Yorkshire to Pakistani immigrant parents, Hussain took over the reins of the CEO from Bronek Masojada at a time when challenges were aplenty. The company grappled with a significant reputational crisis following the Covid-19 lock down, one of its most severe challenges that it faced in its 120-plus-year history. The pandemic prompted numerous small business clients of Hiscox to suspend operations. Despite their attempts to claim coverage, Hiscox denied pay outs, citing policy exclusions for government-imposed lock downs. While legal disputes ensued and companies suffered, Hussain stood firm on his position, albeit acknowledging the unfortunate situation. The CEO’s strong grounding in finance helped him weather the storm. Prior to his tenure at Hiscox, he amassed more than 15 years of experience in financial services spanning investment banking, asset management, and insurance.
Transitioning from his decade-long stint at Lloyds Banking Group and Prudential plc, Hussain became the group chief financial officer at Hiscox in 2016. His elevation came after five and half years and since then, he led the company, with more than 3,000 employees, from the front and gave it a significant global and financial presence. Hussain’s ascent owes itself to multiple influences. Inspired by his father, a World War II veteran and textile factory worker, who urged him to prioritise education for a better life, Hussain was driven to excel. His early curiosity for exploration further fuelled his journey. At Hiscox, his strategic vision emphasises in novation and customer-focus, spearheading digital transformation through investments in AI-powered technologies for enhanced under writing and claims handling. A chartered accountant who completed his training with KPMG, Hussain holds a bachelor’s degree in accounting and finance from the University of Leeds and an ACA qualification from the Institute of Chartered Accountants in Eng land and Wales (ICAEW). Addition ally, he is recognised as a Fellow of the ICAEW. A former finance director for the consumer division of Virgin Media, Hussain also serves as an independent non-executive director at Visa Europe.
One of Hussain’s key traits as a CEO is that he is always looking for innovation, coupled with a preparedness to challenge conventional norms. To give an example, Hiscox in December last year unveiled a pioneering collaboration with Google to develop an artificial intelligence model, marking a significant break through in London’s insurance landscape. The innovative technology aims to automate the core underwriting process for specialised risks, a first of its kind for the market. The UK insurer plans to implement this tool starting this year, following a successful trial focused on automating the underwriting of prop erty sabotage and terrorism policies, where Hiscox serves as the lead underwriter. This initiative represents the inaugural auto mated underwriting activity of its kind, according to Hiscox. Hussain doesn’t exaggerate when he says the aim of his company is not to be just another company but to lead the industry as pioneers. The Hiscox CEO prioritises a people-centric approach, investing in employee development and well-being while fostering a culture of diversity, inclusion, and empowerment in his company. While facing pandemic-related challenges, he acknowledged its impact on the brand but also saw growth in the small-business customer base.
Hussain sees the insurance industry’s potential for positive societal impact, emphasising the company’s commitment to philanthropy, volunteering, and local business support. Acknowledging emerging challenges such as environmental sustainability and digitisation, Hussain also leads efforts to promote sustainability and social responsibility, setting targets for carbon footprint reduction and spearheading philanthropic initiatives. He enjoys Elvis Presley music, practices his faith as a devout Muslim, and cherishes weekends with his family. In Hiscox’s interim statement released in August last year, Hussain said the company’s London market saw a nine per cent rate rise in the same period, marking a significant 72 per cent cumulative rate increase since 2018. Notably, property lines have witnessed the most substantial increases, with household rates rising by 27 percent and major property rates by 23 per cent.
Terrorism rates went up by 15 per cent, as anticipated, influenced by geo political uncertainties. “I am pleased with the progress we have made this year in maximising the strength of our portfolio of businesses. All of our three business segments (retail, London market, re insurance and Insurance-linked Strategy) have delivered strong growth and earnings and are well positioned to continue to do so, as we face into favourable market and societal trends. “Our diverse business portfolio enables His cox to operate in a number of different parts of the specialist insurance sector, allocating capi tal with agility to areas of expertise which offer the highest risk-adjusted returns,” he said.
