Insurance with Purpose
Interview with Michel Höftmann, Managing Director of IC Verzekeringen NV
IC Verzekeringen is considered the expert in insurance for nursing homes, schools, and government and non-profit institutions in Belgium. In this business segment, the daily peculiarities, the role of cyber risks, and how meaningful he finds his own activities, were revealed by Managing Director Michel Höftmann in an interview with Wirtschaftsforum.
Wirtschaftsforum: Mr. Höftmann, IC Verzekeringen specializes in insuring non-profit sector facilities in Belgium: from schools to nursing homes to religious, governmental, and charitable institutions. How extensive is your range of services?
Michel Höftmann: Essentially, we act as a classic independent insurance broker, as known in Germany. However, due to our special focus on the social-profit sector, our focus is less on selling insurance and more on purchasing insurance: thus, we offer our clients – based on our decades of accumulated know-how – tailored solutions for their specific and often quite specialized needs.
Wirtschaftsforum: Yet your commitment does not stop there.
Michel Höftmann: Beyond brokering appropriate policies, we also regulate damages up to a certain threshold ourselves as an authorized representative of the insurers, and in more comprehensive cases, we consistently ensure that the insurance provider's performance promise is adhered to. Thus, we fundamentally see ourselves as a strong advocate for our clients' interests and occasionally assist them in structuring public procurement processes – as these are mandatory in Belgium for amounts exceeding 30,000 EUR.
European Business: What ultimately distinguishes your insurance solutions?
Michel Höftmann: The special requirements of our clients are essentially founded in their risks and activities. Therefore, our company is not organized along lines of business – such as liability, residential building, or accident insurance – but rather with a focus on our specific target groups like schools, nursing homes, religious or governmental institutions. It is important to us that we speak the language of our clients, that we truly understand their activities and challenges in detail, in order to support them as best as possible. Because we want them to fully concentrate on their core business, on their important mission, without worrying about the risks surrounding it – that's what we take care of.
European Business: The marked increase in damage events is now a burning issue for the entire insurance industry, particularly with regard to climate change.
Michel Höftmann: There have also been major damages in Belgium recently, where schools insured through us were affected. However, the issue of cybersecurity is equally a major challenge – as the associated risks can quickly take on existential dimensions in the non-profit sector, where the chairs of charitable institutions can often be held liable in the end.
Wirtschaftsforum: IC Verzekeringen can also sing a song about these dangers.
Michel Höftmann: Right on Christmas Eve 2019, a moment of peace and reflection, we ourselves became victims of an attack that presented us with great challenges. On the first day, they demanded a ransom of 2 million EUR from us, three days later they were already demanding 4 million EUR, until they threatened not to hand over the encrypted data at all. We didn’t pay and fortunately as an insurance company, we were able to rely on a well-coordinated team that managed the situation well – but many schools, clinics, or charitable institutions understandably do not have internal resources for this. That’s why it’s not just about insuring the corresponding risks, but also about consistent support in the event of damage – because we can immediately provide our clients with experts who know these processes from their daily business.
Wirtschaftsforum: So you also want to increase awareness?
Michel Höftmann: Of course, and prevention is particularly worthwhile here, so that damage does not occur in the first place. That's why we explore in detail with our clients which risks should be insured based on their specific activities and where additional sensible technological and administrative precautions can be taken.
Wirtschaftsforum: How do you view the future of IC Verzekeringen?
Michel Höftmann: We are currently investing heavily in digitalization – even though ‘AI’ has probably become a buzzword by now. Still, about half of our daily business probably still consists of low-value tasks: that is, reporting obligations or administrative procedures that overall are not very value-adding. We would be pleased to invest this time in the future in dialogue with our clients, because despite AI and automation solutions, human contact is indispensable for us and comes first. The shortage of skilled workers, of course, does not stop at the Belgian insurance industry – currently about 1,000 positions are unfilled across the industry.
Wirtschaftsforum: How can your company convince in this context?
Michel Höftmann: Above all through our purpose! For our customers, insurance is not daily business. This intense consultancy is rewarded with high appreciation, which we are very proud of. At the same time, we can thus participate in the mission of schools, nursing homes, religious or charitable organizations – which stand unchangingly in service to society!