“Being CEO at MAPFRE Middlesea in Malta is the highest position I’ve held within a company,” says Felipe Navarro, who took the reins of the MAPFRE Middlesea team in Malta five years ago. “Being responsible for a country within a Group like this is very important, so it is definitely the most challenging and most rewarding position I’ve held so far.”

Registered in 1981 under the name Middlesea Insurance PLC, the first Maltese insurance company transacting general business has grown to become the leading provider on the island, joining forces with MAPFRE group in 2011.

Looking back, he reveals that 2014 was a crucial time for the company, which was set to grow by 50 per cent in a period of two years. “This created a number of problems because of different adjustments that needed to be made,” Felipe explains, which applied to everything from policies to internal systems.

After that, 2016 was a difficult year for the company financially, leading to further changes. All of this behind them, he affirms, “we are now one of the most profitable insurance companies in Malta. My team has endured, and it’s something which I’m very proud of.”

Speaking of his position, Felipe maintains that, while his core role as CEO is implementing the strategy of the company, there’s more to it than that, particularly pushing for everything to have the right set-up and approaching any issues that crop up.

“It is an everyday challenge, and it affects not only the strategy, but also involves delving into each of the areas that need to be addressed.”

Detailing a typical day, Felipe starts by going through emails – which he never lets exceed 10 or 15 before he begins to feel uneasy – and catching up on the news before starting what is usually a long list of meetings. “We’ve been undergoing a change in the core systems of the company, which is challenging, and takes up a lot of my time,” he admits, adding that he also meets with HR frequently to discuss resources.

“It is a constant priority, and I would say that we currently have the best collective agreement in Malta for our sector.”

This is sometimes followed by a visit to one of the company’s distributors, which Felipe confesses isn’t possible every day, though he likes “to be in contact with them as much as I can.”

Finally, depending on the period of the month, the CEO will revise the company’s financials. “Add to this all that is related to our relationship with Spain,” he continues. “We are an international Group that is present in several countries, each with their own scenario, so we need to be mindful of each one in order to manage expectations.”

From his position at the helm of the leading insurance provider on the island, Felipe believes that the company’s success is down to being there at the right time, with the right set-up and the right approach. “MAPFRE is providing the country with knowledge and security. In the insurance business, you are essentially receiving money for promises, so you need to be robust enough to afford this kind of relationship with your clients.”

Since MAPFRE acquired the majority shareholding in Middlesea plc at the end of 2011, the wheels were set in motion for a number of changes that would modernise the company, and the work is far from over, Felipe says. The main areas of focus are the company’s IT systems and providing clients with what he calls the “next level” of services.

“When you think of an insurance company, the basic concept is that the company should provide indemnity to the client in case of a claim – locally, if a claim occurs, we give you money.

“In Spain, we transcended this concept long ago,” Felipe says, explaining that whenever a client has a claim, they are not only offered money, but a solution.

“In the motor business, we take care of the repair of the car ourselves. The same goes for the home policy. If I have a leak in my house in Madrid, I never call the plumber, I call my insurance company, who send someone over to fix it. We provide customers with a full service. In Malta, we need to change mentality,” he states, affirming that the process has already begun.

Another priority for MAPFRE and the insurance industry at large is shifting from a paper-based system and direct dealings with clients to embracing a more digital relationship.

“We are investing a lot in IT,” says Felipe, adding that the company has already implemented new systems within some of the lines of business and will continue along this path.

“I think digital needs to explode in Malta. At the moment, our clients can open a claim and even buy a policy through our website, but they prefer to go to the agent or come to our offices. While we have distribution channels that work very well, one day, the client will discover that there is another way of having a relationship with the company, and we need to provide them with the right tools.”

On top of this, Felipe feels it is important to start putting more technology behind the way in which the company understands its clients.

“In other markets we are looking more into client behaviour, and I think it would benefit us to understand the Maltese market better – why a client is buying one policy over another policy, and how we can make this more suited to their needs.”

Meanwhile, the biggest challenge the company and the industry are facing moving forward is the implementation of new regulations, the CEO asserts, looking ahead at IFRS 17 – an International Financial Reporting Standard issued by the International Accounting Standards Board on accounting for insurance contracts, which has an effective date of 1 January 2021. “Working on that is one of the big challenges and investments of insurance companies for the time being.”

Looking at the main opportunities for MAPFRE Middlesea in 2020, the CEO maintains that consolidating the company’s market position remains at the forefront, emphasising doing things the right way and improving on efficiency. This comes hand-in-hand with improving on active lines of business, he continues.

In summation, Felipe’s main aim is for the company to be well-balanced and profitable in all lines of business, to avoid a situation where one line needs to be subsidised by the profits of the others.

“This happened in the past with the motor business, because that line was not profitable. Now it is profitable for the company, and we need to do this with more regularity to avoid certain clusters being subsidised by the rest,” he maintains – a strategy that puts the company in good stead to afford difficult situations.

“If a storm comes or if there is a big claim in one line of business, other businesses will be able to support them.” And therein, it appears, lies the basis of MAPFRE Middlesea – a solid foundation with which to weather any storm.

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