What do we sell as an insurance company? We sell an insurance contract. And when you look at what a contract is, it’s simply several pieces of paper. It says there is a contract between a policyholder and an insurer; we cover this, the rules are these, and then there are a few other documents. If it’s an investment, we also describe the investment in it.
In this Episode:
François Jacquemin explains why an insurance contract is more than paper, and how service, structure, and partnerships deliver value to the client.
Anyone can do that today. You can ask an AI tool, and in two minutes anyone in the world can have an insurance contract. So the paper is not what makes it unique. An insurance contract is much more than that; it’s everything that goes around it.
I remember a story from when I was selling corporate insurance, before I moved to Luxembourg. We were in a finalist presentation with an American design company, super funky, a brand everybody knows. I was even wearing their brand that day. They told us it all sounded nice, but insurance sounds boring, and they wanted to know what we could offer beyond insurance.
I wasn't going to start talking about design or tell them I was wearing their clothes. I told them to keep the fun in their company, because that’s their role. We were a German company. We knew what processes were, how to make them work, and how to deliver. We delivered peace of mind, no funky business. We got chosen. I think it was because of that answer, but maybe that’s my ego speaking.
The same idea goes back to the beginning of my career, when we were developing investment-linked insurance contracts and discussing with potential partner banks, asset managers, and family offices. With a family office, we didn't talk about the contract, the piece of paper. We spoke about what you can do with it. We looked at the surrounding legislation: which country would sell which contract, what type of contract, and how we could structure it. We built use cases to make it concrete, then walked through how it would work for the client.
The family office wanted to offer a solution to its clients, but not blindly. The discussion was never really about how we would work together. It was about how the product was going to work for the client, very concretely. How do I talk to a client about the insurance contract? I know how I can use it as an alternative to a trust, or for an investment, or to structure a generation transfer, but let’s go through that in detail.
Then come the questions after the sale. Which service do you offer? Can you come with me to the client, or can one of your people come to support what I’m going to explain and give it credibility? Do you accept that the law firm reviews your documents so they can confirm to the client that they can invest in this contract under those conditions and for this purpose?
When you offer an insurance contract through a partner, you need to fully understand your client's entire environment. You have to put yourself in their shoes and solve part of their problems, not all of them. In certain circumstances, an insurance contract is an amazing tool to help clients structure their wealth and transfer it across generations.
That is why the structuring matters so much. When an insurance company develops a product, it addresses a need or set of needs and forces them into a certain framework. That framework must allow, in the long term, enough flexibility and enough rigidity so we remain compliant with tax legislation and our partners can use the product as broadly as possible for the client. That is how it creates value for our partners in the eyes of the client.
So the product is not just a product. It’s service, it’s structure, it’s governance, it’s investment, it’s partnerships. At the end of the day, that whole ecosystem needs to work together to deliver the best possible outcome for the client.
Timecode:
00:00 What Insurance Sells
00:45 Beyond Paper Contracts
00:49 Pitching Peace of Mind
02:06 Use Cases With Partners
03:31 Client-Centric Structuring
04:10 Service And Ecosystem
04:59 Product Plus Governance
05:52 Closing The Value Loop
François Links:
Apple Podcast
Transcript:
What do we sell as insurance company? We sell an insurance contract. So what is a contract? It's simply several pieces of paper that says, okay, we have a contract between a policyholder and insurer. We cover ABC, the set of rules are A, B, C, D, and then, and a few, few other documents. if it's an investment, then, we speak about the investment in it and et cetera. So, but anyone can do that. I mean, this is like y- you ask Claude AI, not Claude whoever is, and, and you know, in, in two minutes anyone in the world can have an insurance contract. So that's not unique. An insurance contract is much more than that. It's, it's everything that goes around. I remember very well a, a story. I don't speak about investment here, or I was not in Luxembourg at the time, but I, I was basically selling corporate insurance. and it was a, a pitch to a, an American company. It's a design company, super funky. everybody knows the brand. And I was wearing the brand when I was, I was actually in the, in a, in a, in a, in a finalist presentation. But they, they were like, "Okay, that's very nice. Insurance, it, it sounds boring. What can you give me, which is, goes beyond, beyond insurance?" And then I was like, "Okay, I'm not going to speak about design, or say, 'Well, I'm wearing your cloth, you know? That's, that's, that's something.'" That's not at all. What I said, "You know what? Keep the fun in your company, you know, that's your role. We're a German company. We know what process are. We know how to make them work. We know how to deliver. That is going to be what we deliver to you, peace of mind. No funky business, simply a peace of mind we will deliver." And then we got chosen. I don't know if it's because of that. I think it's because of that, but maybe it's my ego speaking. What I want to say about that is... and maybe I, go back to the beginning of my career when we talked about, when, developing, investment-linked insurance contract, where when we discuss with a, partner, potential partner banks or a asset manager or even a family office, let's take the family office in this case. We don't speak about the contract, the piece of paper that I mentioned earlier. We speak about, what can you do with that? You know, the, legislation around it. which country are going to sell which contract? What type of contract? How can we structure? So we actually build use cases so that it becomes very concrete and, then we just go through how is that going to work for the client. So the, the family office wanted to offer a solution to the client, but not blindly He wanted to make sure when we, we discussed on how we were going to work, it's not how we work together, it's how the product is going to work for the client. So running very concretely from, "Okay, how do I talk to a client about the insurance contract? Okay, I know which-- how I can use a contract as alternative to a trust or, you know, in, in or an investment or, or structuring a generation transfer. I, I, I know that, but let's go through that in, in details." So when, when, when selling an insurance contract to a... or offering, a, a corporate-- an insurance contract via partner, we need to have a, a full understanding of the full environment of our client. So we need to put ourselves in the shoes of the client and have solutions for part of their problems, not all of their problems. But in certain circumstances, an insurance contract is actually an amazing tool to help clients structuring their wealth and their wealth transfer across generation. So that's, one thing. But then once the product has been sold, how is that going to work for the client? Which service? Can you be there? Will you be able to come with me to the client or one of your guys can come with you to the client to, support, what I'm going to explain and making sure that there's a credibility. Do you, accept that the law firm reviews your documents so that they can confirm to the client that they can invest in, this contract within those conditions and for this purpose? So there are various element in the ecosystem that gravitate around the insurance company and that make sure that the promise or that the product delivers, but it goes beyond. And this is what's so important, is that the structuring when, insurance company develops a product, it's answer a need or a set of needs, and it is forcing in a certain framework to allow, in the long term, sufficient flexibility, sufficient rigidity so that we don't, you know, we remain compliance with tax legislation. And that our partners can use that product in the broadest possible way towards the client, and it creates value then, for our partners in the eye of the client. So product is not product only. It's service, it's structure, it's governance, it's investment, it's partnerships. And, at the end of the day, that all that ecosystem needs to work together to deliver the best possible outcome to the client