The Asta Interview with Talbir Bains
When Talbir Bains set up Volante in 2017, he was on a mission to shake things up in the insurance world. Drawing on years of experience from all corners of the industry, his goal was clear: to shift the focus from chasing numbers to realigning underwriting with profitability. This wasn't just about doing business differently; it was about creating a culture where accountability leads the way.
In this latest Asta Interview, Talbir shares insights on Volante's journey, the story behind its name, and his personal path to becoming the CEO of a company that's all about steering the market in a new direction.
Q. Volante's mission is to "transform the market standard" – what does that mean and how is that going since you launched Volante?
TB. Commencing Volante's MGA business in 2017, my aim was to make a significant change to industry practices by addressing the prevalent lack of underwriting alignment. Drawing from my experiences spanning broker, reinsurer, and insurer, Volante’s strategic focus prioritises aligning underwriting performance with profitability, challenging the industry norm of chasing top-line growth.
To achieve this, we implemented a comprehensive framework embedding alignment with our capital providers in every aspect of our business, from employment contracts to shareholdings and capacity agreements. This created a culture where every team member felt the direct impact of underwriting performance daily, fostering a sense of accountability designed to focus entirely on delivering value to our capital providers.
Q. What was your experience as an underwriter dealing with coverholders or MGAs?
TB. During my 15 years at QBE, the emphasis on governance and third-party coverholder performance was crucial. A large part of this relied on us listening to our coverholders and to the language they were using. If discussions primarily focused on growth percentages and premium volumes, neglecting crucial factors like loss ratios, commission management, claims handling, and governance, it signalled a misalignment with the common goal of ensuring that insured clients can rely on their policies. In founding Volante, we prioritised aligning the business plan with our capital provider's bottom line, specifically the Net Combined Operating Ratio (NCOR). This approach, centred on delivering value to the capital provider, ensures a sustainable, profitable insurer capable of meeting claims, and it means an MGA's financials then look after themselves.
Q. Was that a driver for you as an MGA to be more selective about who you choose as your capital provider?
TB. Absolutely. I firmly believe the responsibility doesn't solely rest on MGAs but extends to capital providers—the insurers furnishing the pen. They share culpability when a coverholder fails to meet expected standards. If a coverholder agreement reveals a prevailing emphasis on fixed commissions, overshadowing the significance of profit commissions, then straight away the alignment of interests is all wrong.
This imbalance allows coverholders to rely on fixed commissions for their income, which is a failure on the insurer's part to cultivate the right incentives. Addressing this involves redefining financial outcomes for coverholders, making profit commissions the primary remuneration tied directly to underwriting performance. Now, with Volante also operating as a syndicate, choosing who to delegate the pen to is a rigorous exercise in discipline and principle. We prioritise profitability on the bottom line, challenging established norms by placing greater importance on profit commissions, and navigating the equation in the delegation of the pen from our Active Underwriter Roshni Lillies and her team.
Q. Volante. What’s the story behind the name?
TB. I drew inspiration from my passion for cars and the creative approach of car manufacturers to naming. Volante, a term used by Aston Martin for its convertibles, stood out. Beyond its association with open-top cars, the word has a Latin or Italian origin, signifying "steering."
The concept of steering the market in a different direction resonated with our mission, and the name Volante embodied elegance. It also reflects our values of integrity, honesty, and transparency, and our commitment to business interactions that are aligned with every stakeholder.
Interestingly, when it was time to choose a designation for our syndicate, the process involved selecting three letters with four numbers. The natural choice for the three letters was of course VOL. However, the French team promptly pointed out that VOL in French stands for "robber" and "burglar". Given the societal perception that insurance is already seen as taking advantage, it was clear that this association wouldn't be well received in the local market! The incident highlighted the nuances we navigate in our international operations and the importance of considering cultural interpretations in our choices.
Q. Is there any significance in 1699 being the four numbers for the Volante syndicate?
TB. 1699 holds profound significance rooted in the Sikh faith. In April 1699, the 10th Prophet of the Sikh religion implemented a formalised code of conduct in response to challenges faced by the Sikh community during a period of religious persecution. Sikhs, known for their bravery and commitment to defending their faith, played a crucial role in protecting others from persecution.
This historical event symbolises the commitment of the Sikh community to their principles, even in the face of adversity. When forming the Volante syndicate, I wanted to instil a similar commitment and 1699 represents a connection to our values and serves as a powerful reminder to our team to maintain the highest standards in our day-to-day underwriting.
Q. Could you tell us about your journey to become the CEO of Volante Global? What were some pivotal moments in your career that led you here?
TB. My career began as a pricing actuary at Willis, where I priced treaties for reinsurance brokers. Transitioning to Swiss Re UK, I continued in a similar role but on the other side of the fence. Joining QBE marked a pivotal moment as I set up a pricing team in close collaboration with underwriters – a novel concept in 2001.
During my tenure at QBE, the pricing team grew significantly, managing a substantial book of $4 billion GWP. Responsibilities expanded into underwriting and underwriting management, culminating in my role as the head of what was previously John Neal’s Ensign syndicate. Leaving QBE, I joined Dual International as the Group CUO and CEO. After two years, the vision for Volante took shape, and I committed to bringing a syndicate to the market in 2022. This journey, marked by diverse experiences in pricing, underwriting, and leadership roles, prepared me for leading Volante Global.
Q. Can you share how your personal beliefs or values – or life events – have influenced your leadership style and your role as CEO?
TB. The experience of being on the brink of “lights out” following my car accident in 2021, and then being granted a second chance at life has profoundly altered my perspective on life and work. I now approach life with a heightened awareness of what truly matters. While my commitment and energy towards Volante remain as strong as before, I hope that others see a discernible difference in my approach—with greater care, respect, and consideration. The realisation that the world won't crumble if certain things don't come to fruition is a starting point for me. Having faced a moment where the world did seem about to crumble, this perspective is invaluable, and the lessons learned have been instrumental in what I hope is an improvement in my leadership style.
Q. In today’s insurance industry, staying agile and adaptable is crucial. How do you see Volante Global evolving and staying competitive in the ever-changing market?
TB. At Volante we approach this through a combination of key elements. Firstly, our commitment to alignment with leading global capital sets us apart, relying on a profit-focused operating model. This alignment, rooted in our team's reputation and track record, attracts what I believe to be best capital in the world to support our business.
Secondly, technology is pivotal, with our real-time, cloud-based system providing access to one source of data via a simple, reliable, and consistent platform available to our teams, management, and capital providers. Being built in-house ensures swift onboarding of new teams and adaptation to changes, giving us a competitive edge.
Lastly, our international local presence is a significant advantage. With 24 offices in 5 continents, our expansion model emphasises identical products, wordings, systems, and pricing models across territories. Investing in teams on the ground, well-versed in local languages and regulations, not only reduces costs but also fosters a high level of understanding and trust in local markets. This approach pays off in the quality, profitability, longevity, and scalability of our business. And we're not sitting in Lloyd’s competing with everybody else for a share of the same slip. It's business that's typically not making it to London.
Q. Going back to alignment, does that give your capital the confidence to invest in new teams, new geographies, new technology, meaning you can scale more quickly?
TB. Absolutely. While others might replicate technology or establish a local presence through investing as we have, replicating alignment is a different challenge altogether. It's a philosophy deeply ingrained in our culture. The dynamic of not having the growth pressure is a significant advantage, allowing us to operate and grow profit by keeping the top line relatively stable. Even the transition from Nephila and Markel to Acrisure as our ownership and capital, happened on the understanding that Acrisure bought into our underwriting strategy and supported the need for this model to prevail, remaining sacrosanct in its protection and insulation through market cycles. We are truly blessed to have an ownership that not only grasps our underwriting strategy but also provides us with the freedom to execute our plan.
Q. In June last year, Volante Singapore was launched. How has the Lloyd’s Asia platform helped achieve your objectives in the region?
TB. Singapore holds a crucial position in our group's strategy, serving as a hub for writing emerging markets and Asia market treaty business, along with transactional liability. Our exceptional team, supported by Asta as our managing agent and its Asia Pacific team, has played a key role in establishing our local presence.
The support, guidance, and oversight provided by the local Lloyd’s office have been invaluable and we enjoy strong engagement with Lloyd’s in every territory where we operate, We are highly focused and driven to deliver optimal outcomes from our Singapore office, benefiting from the superior and formidable local talent. We’re delighted with the start we’ve made and remain committed to fulfilling our promise to Asta and Lloyd’s by providing a niche and differentiated proposition to the Asian market.
Q. In 2021, syndicate 1699 was established at Lloyd’s. What was the rationale for the syndicate, and what are the benefits of having an MGA and Lloyd’s platform working together?
TB. The establishment of syndicate 1699 at Lloyd’s was driven by a profound understanding of the dynamic synergy between the teams operating as Lloyd's underwriters in the syndicate and Volante as MGA underwriters representing third-party capacity. There exists a common energy and underwriting vibe within the group, all centred around capital and the commitment to delivering favourable outcomes to that capital.
The coexistence of the MGA and Lloyd’s platform holds numerous benefits. The conversations and insights exchanged between the two divisions, although distinct, are key in shaping our business plans. Discussions around market dynamics, underwriting discipline, and the deployment of capital inform our strategies, ensuring that we allocate resources judiciously in the right markets for the right products. The dynamic is centred on keeping capital satisfied with our deployment strategies, driving us to remain agile and responsive in a market undergoing significant transformation amid various macroeconomic events. Being at the intersection of an MGA and a Lloyd’s platform provides an unparalleled business environment—one where there is no time to rest on laurels, making it an exceptionally compelling time and place to be conducting business.
Q. Coming back to alignment, and your points about high levels of governance and compliance, was that a significant driver for choosing Asta as the managing agent?
TB. We certainly explored other options. But the decision to choose Asta as our partner was grounded in the quality of their team. As someone who hadn't previously set up a syndicate, I lacked extensive insights into the journey from the inception to maturity of a syndicate. Asta's team, however, possessed that knowledge and experience, and we have benefited immensely from the quality, expertise, care, respect, courtesy, and collaborative spirit they possess – they have genuinely made a refreshing and positive difference to our business.
While managing agents typically hold a commanding position, Asta's approach has been healthy, engaging, and productive. Lorraine, in particular, sets a wonderful standard for engagement, resulting in the right business outcomes. The dynamic between both parties has been exceptional, with a shared understanding, support, and eagerness to deliver.
Q. How important has it been for your managing agent to be a strategic partner and not just an outsourced service provider?
TB. Our newness to Asta, and the international nature of our syndicate with multiple service companies, meant we encountered unique challenges not previously navigated in the market. However, working as two distinct business units in a strategic partnership, we have consistently approached challenges with a perspective of improvement—reflecting on what could have been done better and how we can achieve different outcomes.
This ensures that when the next challenge arises, we are well-equipped to respond effectively. The term "strategic partnership" is not just a label; it encapsulates the essence of our collaboration – working through challenges akin to a marriage, where differences are thrashed out regularly to pave the way for a more harmonious life together!
Q. Where do you see Volante and Talbir Bains in 5 years’ time?
TB. In the next five years, our primary goal is to deliver on the syndicate plan promised to Asta and Lloyd’s. The focus is not on scale but on the strength of NCOR, maintaining alignment, even in challenging circumstances. Looking further ahead, with the support of Asta, Lloyd’s, and our capital providers, I envision Volante being recognised as an institution that transformed the market, setting a standard for others.
Personally, my life revolves around Volante, and I'm fortunate to work with an exceptional team. I learn from the talented individuals around me, fostering a dynamic environment where mutual respect and continuous improvement drives us all. In the years to come, I see myself continuing to enjoy this journey with the people I respect, learn from, and who contribute so much to the success of Volante.
Q. Your logo, with the lion and the butterfly, is very distinctive. Could you share the story behind it?
TB. Interestingly, we didn't have a logo until 2020. It was post-COVID, and I was either ill with COVID or just unwell, enough to keep me away from the office. During that time, I pondered the idea of having a logo that truly represents us. What defines us is courage—the courage to bring something remarkably different to the market. So, the lion in our logo symbolises this courageous attribute.
The butterfly, on the other hand, signifies the journey from a caterpillar to a butterfly, emphasising the elegance and commendable attributes of transformation. This parallels how people perceive what we do through the MGA and the syndicate, with Asta's and Lloyd's blessings. It's about creating something graceful and impactful. Essentially, the logo reflects our focus on stakeholders rather than ourselves.
