The Asta Interview with John Coe
Deputy Chief Risk Officer
In this latest Asta Interview, we sit down with John Coe, Deputy Chief Risk Officer, to discuss his extensive experience in risk management and actuarial science. John highlights key trends, such as the integration of actuarial insights into strategic risk decisions and how companies in the insurance sector can adapt to the evolving risk landscape. He shares his unique perspective on managing risk for Asta’s clients, emphasising innovative approaches and the importance of harnessing new technology. John also offers advice for young professionals, discusses his involvement in fostering an inclusive work environment through Asta's Employee Resource Groups, and gives us a glimpse into his personal passions, including his love for music, travel, and…. Doctor Who!
Q. Tell us about your career to date.
JC. I began my academic journey in 1998 at the University of Southampton, studying Chemistry and Mathematics. Initially drawn to Chemistry research, I soon realised it wasn't for me. A professor introduced me to actuarial science, and I joined EMB Actuarial Consultancy in 2006, training as an actuary in the General Insurance market. My research background provided the maturity essential for consulting effectively with clients.
After five years at EMB, I transitioned to the Lloyd’s market, working in two managing agencies over eight years. I moved from the Actuarial Function into Risk through the Internal Model Validation, eventually handling all aspects of risk management. Working in-house gave me a comprehensive view of business operations, unlike the project specific focus of consulting.
I then joined Riverstone International to work on a specific capital and risk project, before transitioning to Associate Risk Director. Being part of Riverstone’s business was very rewarding, providing new insights and broadening my expertise at this leading legacy acquirer.
After three years there, I seized the opportunity to join Asta as Deputy CRO and for the past two years, I’ve managed risks for both our clients and Asta. My solid Lloyd’s foundation paired with a varied background including an acquisitive firm and consultancy has been invaluable in navigating Asta’s unique Third-Party Managing Agency model.
Q. As a qualified actuary, how do you integrate actuarial insights into strategic risk management decisions?
JC. Risk management often involves navigating shades of grey, which Actuarial work such as Capital Modelling with its associated expert judgments also requires – contrary to its perceived clear-cut nature. My actuarial training equips me with a quantitative foundation to measure and consider risk, supporting and enhancing my risk decisions.
Stress testing is a prime example. Actuarial output from internal models often forms the basis of stress tests, however the Risk Function’s interpretation of these, whilst considering a syndicate’s strategy and risk profile, is crucial for identifying risks and determining necessary mitigation strategies.
Q. What motivated you to pursue technical specialisations in both risk management and actuarial science?
JC. As a qualified Actuary and a Technical Specialist Member of the Institute of Risk Management, I’ve found both fields mutually enriching. Actuarial science provides a quantitative foundation, while risk management allows me to get under the skin of a business. Being part of communities such as the Actuarial Professions CRO group and participating in IRM events has been invaluable with exposure to senior industry players and role models. At Asta we are fortunate to have the current President of the Institute and Faculty of Actuaries sitting on the Board as one of our iNEDs.
Whilst working at TMK, I realised that the Risk Function offers a privileged and rich perspective across all departments. Combining this with my quantitative skillset has enabled me to support companies in achieving their goals, supported by a risk framework tailored to strategy. Effective risk functions act as trusted partners and advisors, not enforcers, and my blend of actuarial and risk expertise serves me well in my role.
Q. How has your role evolved since you began, especially with the challenges and opportunities presented by managing Syndicates and SIABs?
JC. Joining Asta involved a steep learning curve, with our Third-Party Managing Agency model being different from previous experiences. I’ve gained exposure across our Syndicate and SIAB portfolio, understanding business models, strategies, and key risks. Our Risk Function team members are crucial, maintaining detailed knowledge of their clients, supporting a comprehensive view across Asta’s client portfolio by the Function.
Asta’s success lies in our operating model, which balances client-specific governance with a thematic overview at the Asta level. I chair several Asta-level groups and the knowledge, discussion and challenge which these forums provide are invaluable for me to deliver on my role. As part of the senior management team, I also contribute to developing Asta’s strategy as a commercial business and support broader cultural and operational matters.
Q. How do you approach the Risk needs of each client?
JC. It varies as some clients may have a CRO with extensive experience, while others may have a risk manager or more junior risk staff. Then there are clients with no dedicated risk professional, or someone who handles it alongside other responsibilities. In some cases, we are actively undertaking risk management for them; other times, it’s just oversight.
Surprisingly, even syndicates with a risk team often seek our advice, which is gratifying because we have a wealth of experience to offer.
Q. Asta currently manages eight Syndicates in a Box – how do they differ from a risk perspective?
JC. Our SIABs are incredibly innovative, particularly new ones like MCI writing medical trial insurance supported by AI and Oka with their carbon credit insurance portfolio. These businesses have significant growth potential, with some of our SIABs already expanding rapidly.
Governance for SIABs involves a dedicated stream that allows more junior members of the business to take on responsibilities while still maintaining appropriate Exec and NED oversight. This provides great development and learning opportunities.
Though the governance for SIABs is somewhat lighter given proportionality and materiality, it still requires substantial work. For instance, the ORSA reports for our syndicates and SIABs are similar in length, reflecting the specific requirements of these documents. Our SIAB risk registers have around 10 risks compared to 30 for syndicates. Whilst the nature of the risks is similar, they are categorised differently, but we still address the same issues and cover the same ground in discussions.
Q. From your perspective, what are the most pressing risks facing the Lloyd’s market today, and how should companies adapt?
JC. The Lloyd’s market faces a range of risks, often referred to as a ‘polycrisis.’ Geopolitical risks arising from regional conflicts, macroeconomic issues, and changes in government are significant threats. With over 50 countries holding elections in 2024, changes in the global landscape will profoundly affect our clients.
People risk is another pressing issue. Attracting and retaining talent is crucial, especially in the post-pandemic world and the now five generations of employees in the workplace having different expectations of their careers. A company’s internal culture must align with their external portrayal to appeal to, and retain, diverse talent. As an aside, I recently led a subgroup of the LMA Next Generation CRO Group, where we have looked at People Risk. The LMA will shortly be releasing the results of our study, intended as a guide to People Risk for Risk professionals, and we hope it will support the management of this key current risk.
Lastly, rapid technological advancements, such as AI, bring both opportunities and challenges to Asta, our clients and the wider Lloyd’s market – for example the recent Blueprint 2 project uses technology to bring benefits to our market. Managing these risks and leveraging new technologies is essential to stay competitive.
Q. How has technology impacted the field of risk management in insurance, and what innovations are you most excited about?
JC. Technology has significantly impacted risk management, offering tools to streamline processes. At Asta, we’re constantly exploring ways to leverage data and automation to enhance our work. We produced 17 ORSA reports for clients in the first few months of this year, which was no mean feat, and we are actively looking at ways to make this process easier. Embedding new systems and upgrading our GRC tool are exciting developments, aiming to simplify our operations, thereby freeing up more time for the Risk Function to provide deeper insights.
I recently attended a webinar on reserving transformation and was struck by a slide showing the processes used in reserving 40 years ago, as well as the technology we had back then – bricks for mobile phones, for example! Fast forward 40 years, and while in some organisations, reserving has often not progressed, we now have next-generation smartphones and household VR technology. The insurance industry needs to keep up!
Q. When advising and challenging new and existing clients on risk matters, what are the common themes, and how do you address them?
JC. Asta’s clients range from new entrants to experienced market players, all seeking the benefits of our Third-Party solution. Common themes include aligning risk-taking with strategy and developing risk appetites that support individual business models.
Effective risk management involves understanding the risk profile of a client’s business and their language. We support clients by identifying risks and providing solutions, enabling them to grow and succeed within a controlled environment. This strategic advisory approach builds trust and delivers the best outcomes for both.
Q. What advice would you give to young professionals aspiring to a career in risk management within the insurance sector?
JC. I’m bound to say it, but working in a Risk Function is one of the most interesting roles in insurance, offering insights into all aspects of a company. It’s very easy to come into a Risk Management role as a junior or from another department within a company. Be ready to show curiosity and flexibility of thought, as risk is never black and white. Always ask questions, as they enable participation and add value to discussions. Understanding what the Exec and NEDs want is critical to your success, as they are key customers of our Function. Finally, take opportunities to work on new projects and with new departments to diversify your expertise and contribute to the team’s success as well as your own career development.
Q. You are one of the sponsors of the Davies LGBTQ+ Employee Resource Group. Tell us more about its objectives and your personal involvement.
JC. The group aims to foster a safe, supportive environment for LGBTQ+ employees, allowing them to be themselves at work. It provides a network for assistance and celebrates the community through education, communication, and events. The last two years’ ‘LGBTea’ event for Pride month were great successes, and we are hoping to repeat it next year.
As a member of the community, I appreciate the support at Asta. Research has shown that senior members of the LGBTQ+ community often feel more comfortable being out at work, and I strive to ensure that all our colleagues feel the same. As a sponsor, I raise awareness and encourage open discussions across the organisation.
I also mentor through the Lloyd’s LGBTQ+ Mentoring scheme, which has been very rewarding. The scheme’s growth and increased diversity of participants are encouraging signs of its impact.
Q. Are there any other Employee Resource Groups?
JC. Our group is one of six ERGs at Asta and Davies. The others are Eco Davies, My Culture and Heritage, Supporting our Health and Wellbeing, the Women's Network, and Working Families & Care Givers. All these groups aim to foster a safe and supportive working environment where everyone can be themselves.
One of the big drivers behind these ERGs is to promote awareness, celebration, and change. Awareness and celebration are relatively easy to achieve through events and communication, but driving change is more challenging. Many of the groups are working on implementing new policies and fostering different ways of thinking.
For example, in a recent ERG discussion, we considered how our facilities might be perceived by a disabled interviewee. Our building requires a key card and manual door push to enter, which could be seen as a barrier for someone in a wheelchair. While we would certainly install an automatic door if we hired someone with these needs, the current setup might deter potential applicants. This kind of discussion helps us identify areas for improvement and create a more inclusive environment.
Q. How do you manage work-life balance, and what hobbies or activities do you enjoy outside of work?
JC. I have a passion for music and sing with the Royal Choral Society. Rehearsals provide a creative outlet and a way to decompress from work. I enjoy making music with a group of people – there is nothing better than being in the moment surrounded by 150 singers, an orchestra playing their hearts out and an audience spellbound!
My husband James and our two dogs, Amber and Olive, love travelling and spending weekends exploring new places in the UK and beyond.
I’m also an avid Doctor Who fan – from when Doctor Who wasn’t trendy in the 80s and it has been a pleasure seeing it evolve into something which kids now think is cool. I’ve quite a collection of memorabilia – next time you are on a Teams call with me at home, ask me to turn my camera to the right and you may spot a Dalek lurking behind me in my home office!
