In this interview, Yolla El Khoury, CEO of ACE Gallagher Holding W.L.L., shares her insights on the evolving landscape of the insurance brokerage industry. From the rise of digitalization to the increasing complexity of global risks, Yolla offers a comprehensive view of the industry’s future, both regionally and globally. She also discusses ACE Gallagher’s response to emerging challenges such as natural disasters, cybersecurity threats, and geopolitical tensions, while exploring the company’s commitment to sustainability and community well-being. Yolla reflects on the company’s achievements in 2024 and outlines ambitious plans for the year ahead, showcasing how ACE Gallagher continues to lead the way in providing innovative, client-centric solutions in an increasingly competitive market.

The insurance brokerage sector is undergoing significant transformation due to global trends such as digitalization and the evolving risk landscape. How do you perceive the future of the industry, both globally and regionally?

The insurance brokerage sector is at a pivotal moment, where digital transformation and the increasing complexity of risks are reshaping the way we operate. Globally, brokers are adapting to a rapidly evolving environment, marked by technological advancements, changing customer expectations, and growing regulatory requirements. In the Middle East, this shift is equally apparent as customers demand faster, more efficient services, while also seeking more comprehensive coverage for increasingly complex risks.

Grand View Research reports that the size of the global insurance brokerage market was estimated at USD 287.4 billion in 2023, and it is projected to continue growing at a compound annual growth rate (CAGR) of 9.2% between 2024 and 2030. That said, the future of the insurance brokerage sector will be driven by data-driven insights, improved customer experiences, and the seamless integration of digital tools. We are already leveraging technology to automate processes, enhance decision-making, and ultimately deliver more tailored and efficient solutions for clients. As a result, the focus will be on delivering value-added services that not only address immediate needs but also anticipate future risks.

Since 2023, the insurance market has experienced a fundamental correction, leading to a return of profitability, with projections indicating modest growth of 2-3% in the next three years. How does this impact the industry, particularly in relation to pricing and terms?

The correction in the insurance market has been a welcomed development for both brokers and insurers, as it has returned profitability and brought greater stability to pricing. We are seeing a normalization in the market, which means more predictable premiums and better terms for clients, though insurers remain cautious when underwriting high-risk sectors or regions.

For brokers, this period of growth offers a unique opportunity to expand their offerings, especially in emerging markets where there is an increasing demand for specialized coverage. The 2-3% growth forecast suggests a steady recovery, and brokers will need to continue evolving to meet changing customer expectations while ensuring that pricing remains competitive and sustainable.

With the rise in natural disasters like floods, wildfires, and extreme heatwaves, in addition to emerging risks like cyber threats, how do you see the insurance industry responding to these challenges? How is your company adapting?

The increasing frequency of natural disasters and the rapid evolution of cyber risks are undoubtedly reshaping the insurance landscape. Cybersecurity Ventures projects that global the cost of cybercrime will increase by 15% yearly over the next five years, reaching $10.5 trillion USD by 2025. These risks present new challenges for the industry, requiring more dynamic and flexible solutions.

At ACE Gallagher, we focus on providing customized insurance solutions that help our clients mitigate these growing risks. For instance, we offer specialized coverage for cyber threats, climate-related risks, and business continuity to ensure our clients are well protected. We collaborate with insurers that specialize in these areas and work proactively with our clients to understand their unique exposure.

Moreover, we believe in educating our clients on emerging risks, which is why we host regular workshops and webinars. Such platforms allow us to share insights on evolving threats and best practices, empowering clients to take a more proactive approach to risk management.

Geopolitical tensions, especially in regions like Russia, Ukraine, and the Middle East, are creating new risks for businesses. What are the implications for the insurance sector, and how are you managing these challenges?

Geopolitical tensions are introducing unprecedented levels of uncertainty, particularly in regions such as the Middle East, where businesses are facing heightened volatility in areas like trade, payments, and regulatory changes. This creates a more complex environment for underwriting and risk management.

As an insurance broker, it’s essential to help our clients navigate these challenges by offering bespoke solutions that address both traditional risks and those arising from geopolitical instability. We focus on securing insurance policies that provide coverage for political risks, business interruption, and trade disruptions. We also support our clients with strategic advice on how to manage their operations in these high-risk regions, ensuring they are adequately protected while maintaining business continuity.

The insurance brokerage market is becoming more competitive, with more players entering the sector. How do you stay ahead in this competitive environment, and what differentiates your company?

The growing competition in the insurance brokerage market requires us to differentiate ourselves through service excellence, in-depth local expertise, and a customer-centric approach. At ACE Gallagher, we pride ourselves on our comprehensive understanding of regional risks and regulatory environments, which allows us to provide tailored solutions that directly address the unique needs of our clients.

Our value proposition goes beyond just placing insurance policies; we offer extensive risk management and advisory services. For example, we provide clients with insights into emerging risks through our specialized workshops and webinars. For our Employee Benefits clients, we offer unique perspectives on health and wellness, including the latest trends in alternative medicine and well-being strategies.

We also invest heavily in training our teams, ensuring that they possess both strong interpersonal skills and in-depth technical knowledge. Investing in our people enables us to build lasting relationships with clients while delivering exceptional, informed advice when they need it most. Our goal is not just to be a service provider, but to become a trusted advisor, ensuring our clients have the insights and resources to navigate their risks effectively.

What are some of the key achievements for your company in 2024, and what are your plans for 2025?

In 2024, we’ve seen consistent growth and a strong performance trajectory, with year-on-year growth projected at 20%, reflecting the successful execution of our strategies and our ability to adapt to the evolving market conditions.

Looking ahead, we have ambitious plans to expand our footprint in underserved markets within the region, particularly where specialized insurance solutions are in high demand. We will continue investing in technology and automation to enhance efficiency and customer experience. Deloitte’s 2024 FSI Predictions report reveals the immense potential of AI-related insurance, estimating annual global premiums of US$4.7 billion by 2032, yielding a robust CAGR of around 80%.

Similarly, we are committed to investing in the professional development of our teams, ensuring they remain at the forefront of industry knowledge and client service.

Furthermore, we plan to deepen our commitment to Environmental, Social, and Governance (ESG) initiatives, both within our operations and through the services we offer to our clients. We are also focused on continuously evolving our offerings to meet the changing needs of our clients, particularly in areas like risk management, employee benefits, and emerging market needs.

How does ACE Gallagher demonstrate its commitment to sustainability? Can you share some key initiatives from 2024?

At ACE Gallagher, sustainability is at the core of our values, and we actively integrate Environmental, Social, and Governance (ESG) principles into our initiatives. In 2024, we partnered with the Tree of Life Social Charity Society to support orphans in Bahrain, providing essential aid focused on food and education. Additionally, our collaboration with the Royal Humanitarian Foundation (RHF) helped bring joy to orphans in the region.

In the UAE, we co-sponsored an event with Al Noor Rehabilitation and Welfare Association for People of Determination, creating meaningful experiences for individuals with special needs. Our team also volunteered their time, engaging with attendees and reinforcing our commitment to social inclusion. Furthering our dedication to community well-being, we contributed through blood donation drives in the UAE.

These initiatives mark just the beginning of our sustainability journey. We are committed to expanding our efforts in 2025, driving even greater impact through meaningful action.

Interview with Yolla El Khoury, CEO of ACE Gallagher Holding W.L.L. – Executive Bulletin