Germans in Australia: The benefits of international in-person collaboration

In the context of international collaboration, Wiebke Cundill's recent four-week visit to HDI's Sydney office demonstrates the beneficial impact of in-person exchanges within a global network. Her collaborative journey with Philipp Glanz began at HRC's head office in Hanover, Germany, ten years ago. At the time, Wiebke Cundill had just joined the HDI Global team at HRC and Philipp Glanz was still working in Germany before taking on his role at HDI in Australia. An engineering geologist by training, Wiebke Cundill has grown her expertise within HDI as a natural hazard expert within the global network. While natural catastrophes (nat cat) are historically loss drivers, the insurer has been reviewing how its in-house tools and expertise are able to adapt to the increased frequency and intensity of weather patterns as a result of climate change. In addition, with changing regulatory requirements driving the need to disclose more climate risk exposure, clients are increasingly turning to HDI for input on their future scenario risk planning and capital investment decisions. In response, natural hazard expert Wiebke Cundill spearheaded the development of new services regarding physical climate risks and offers support and input for ARGOS (Accumulation Risk Geospatial Online System), HDI's sophisticated nat cat risk assessment system. This tool gathers data from research institutes, weather stations and seismographs and includes various types of natural hazard exposure maps. This kicked off HDI's current nat cat risk assessment philosophy, greatly enhancing its capabilities in the field.

The exchange between the German and Australian HDI locations greatly benefited all those involved, providing valuable insights and fostering cooperation across the global team. Due to Australia's significant, often simultaneous exposure to winds, fires, floods and earthquakes, it made sense to have Wiebke Cundill spend a longer period of time down under to discuss all of the relevant issues in person. "There are always regular exchanges taking place within our global network. We have engineers go to the head office for a few months, but they also spend time here in Australia. When I was still working in Germany, I sent my engineers around the world to enhance global collaboration," says Philipp Glanz. "For us, regular exchanges are challenging due to the time difference as well as the sheer distance between Australia and Germany. Within Europe, it's much easier to join a conference, for example you can catch a train even from Paris or London. But for some locations, like Australia, it's often impossible. So, it was great to have Wiebke here for four weeks to connect with the team and take up suggestions as to how they can be supported by the head office."

This sentiment was echoed by Wiebke Cundill, who emphasised the unique advantages of being physically present at the office. "In virtual meetings with the risk engineers I work with, I've come to realise how much I take knowing about new developments at the head office for granted. I learn about new things just by simply being there. I don't even have to be working on a specific topic, but I just pick things up around the office inadvertently – sometimes simply in hallway conversations," she admits. "These discussions and connections on a personal level are so valuable. In the meetings, I get introduced as our 'nat cat expert'. Of course, those words carry weight and I'm always working to fill those shoes. But I hope people realise that I'm a very approachable person and that I'm happy to sit there at 7:00 in the morning and speak to a client in Australia."

In order to focus on mutual knowledge transfer, the two risk engineering experts decided against conducting an intensive nat cat training workshop for the risk engineers at the Sydney office. Instead, they opted to simply sit down together with the team to offer a general update, answer questions and collect ideas. "We delved deep into what our head office is working on, how the ARGOS tool is improving in terms of useability, what the market response is to our tool and what would be useful to our clients in the future," says Philipp Glanz. In addition, a two-hour workshop was held for the entire Australian team of roughly 160 people, to provide an overview to staff that is less involved with risk engineering in their daily business. "Working together in person was so beneficial for the whole team – including risk engineers and underwriters. It was a success across the board and appreciated from all sides," added the Australia-based risk expert.

Face-to-face collaboration helps translate theoretical knowledge into practical applications to ensure that strategies are grounded in real-world understanding and feasibility. "On the one hand, my responsibility is to support the client; on the other, it's to develop tools. I find it incredibly valuable to exchange information with colleagues who are actually out in the field and visit anywhere between 30 to 50 sites per year. It helps me understand what they really need. They have so much in-depth knowledge on these topics so it's good to talk to the people that need to collect and work with that information every day," Wiebke Cundill explains. "I'm not sure if I taught them so much about basic nat cat topics. The team is already excellent. But I hope they know that I'm there to support them in specific nat cat topics and that we at the head office want to learn from them in order to improve our tools. We're interested in what they're confronted with every day."

In addition to strengthening the global team, the exchange had tangible benefits for brokers and clients alike. The success of a recent nat cat webinar at the beginning of February, during which both risk engineers presented the topics of nat cat, climate risk and ARGOS to an Asian Pacific audience, marked a highlight with close to 1,000 sign-ups. By showcasing HRC's global expertise and comprehensive risk assessment capabilities, the webinar attracted a record number of sign-ups, demonstrating the trust and interest in HRC's expertise and HDI's offerings. "We talked about nat cat mapping as well as climate risk. With the planned development of ARGOS, we can make predictions on how a location will develop over the next 5, 10, 25 or 50 years and whether it will be subject to flood, precipitation, drought, humidity and so on. That is an impetus for clients to start thinking about building their resilience against these events," explains Phillip Glanz. "For example, Australia is an export country for grain, but due to very long drought periods as well as heavy rainfall, the harvest was poor in certain years. As a result, some terminals had to be transformed from exporting to importing grain. Essentially, they had to reverse the operation, which can be quite a dangerous process if not managed properly. They can't just flip the switch and run everything backwards. This introduces a lot of different hazards and risks, such as explosion or fires in new places which can increase the risk of property damage or business interruption. As a result, these risks need to be assessed and mitigated to ensure safe operation – and we can provide support for that."

But according to the two nat cat experts, the webinar was more than a technically informative event as it solidified HDI's reputation as a global industrial insurer and trusted partner in risk management and resilience building. "It was incredibly beneficial to present ourselves not just as a branch of a German insurance company but helped establish us as a global insurer with access to knowledge around the world," said Wiebke Cundill. By leveraging insights from different regions around the globe, such as Europe, the Americas, and Asia Pacific, HDI is in a position to provide clients with comprehensive risk assessment and tailored solutions to navigate complex challenges, including natural hazards and climate-related risks. Additionally, clients stand to benefit from the enhanced predictive capabilities of ARGOS, which enables informed decision-making and proactive risk mitigation strategies. 

HDI's global collaboration within its solid international network exemplifies the insurer's commitment to supporting clients through current transitions and those that lie ahead. Beyond risk mitigation, HDI offers consulting services aimed at helping clients adapt their business models and operations to future challenges, such as climate change. By fostering business resilience through knowledge and preparedness, HDI empowers clients to navigate uncertainties and thrive in an ever-evolving industrial landscape. "Companies are learning how exposed they are and that they need to learn from each other. As a partner in transformation, we can provide a crucial service to them because we know the global market and share best practises from around the world," says Philipp Glanz.

But what does that look like in real terms? Wiebke Cundill elaborates: "We used to approach natural hazards using both a client's current situation as well as historic information. Now we can make climate-related predictions up to the year 2100 based on different climate scenarios. While we're looking at climate risks themselves, we're also looking at the effect they will have on various industries. Some companies will probably have to change how they operate. For example, we have industries that source their water from groundwater wells. That poses a problem when groundwater levels sink." The region around Barcelona is currently one such example. "They are experiencing severe drought, and the industry must cut its water usage by a significant percentage. As a result, these companies must take much into consideration – from the effects on employees to whether they can continue running their operation. Again, changing operating processes often brings new risks," reminds the German risk engineer.

As an insurer, HDI has always seen itself as a supporter of industrial companies to help them avoid large losses. "When clients have losses at some point, they realise what a burden it is despite their insurance coverage," observes Philipp Glanz. "They run the risk of potentially losing clients because they can't deliver. It's not just about having insurance to cover the financial loss, but it's about their reputation, reliability and resilience. Clients are beginning to understand that we can help them build their resilience and get through whatever the future may bring. That might mean rethinking a business model, developing a new strategy or perhaps relocation. There are many ways to address these scenarios."

In the end, being prepared remains key. That entails having sufficient knowledge to come up with solutions before a serious situation arises. "With climate change constantly progressing, our new service helps clients understand what might happen down the road," says Wiebke Cundill. Philipp Glanz agrees. "In fact, we had clients asking for this service before we even offered it so they could select locations that make sense in the future or have an overview of existing locations that are more resilient than others," he adds. "Even if a client's own locations are unlikely to experience any impact, there's always the supply chain risk to consider when relying on products from around the world. If the shipping channel doesn't have sufficient water, for example, then there will be delays. It's not just the individual risk, it's really the global supply chain that needs to be reviewed."

The role of the industrial insurer goes beyond merely providing coverage and offering risk mitigation measures. The expertise now includes broad consulting services regarding possible future business models and operation methods. "The industry is going through a transformation towards a more resilient way of working, and we are there for them as partners. This will not happen in one day but over the course of several years," concludes Philipp Glanz. "Our efforts lie in making our clients become more aware of their current and future risks. We want to educate them on all aspects. That way, they are empowered to make their own sound decisions." 

This story of cross-continental teamwork underscores the immense value of global collaboration in driving innovation, enhancing client services and fostering resilience. "It was certainly a pleasure to have Wiebke here in Australia for four weeks," says Philipp Glanz. "There is a huge benefit to giving employees the opportunity to work in offices abroad. That multiplier effect of exchanging experience and knowledge with colleagues around the world is so valuable. And both Claire McDonald, HDI Board Member, as well as Joerg Ohlsen, HRC Board Member, really support that kind of exchange."

In addition to the obvious benefits for the company, there are of course personal benefits as well. "You always grow on a personal level. I want to teach my son respect for different countries and cultures. With Australia being so multicultural, this was a great opportunity to do so," says Wiebke Cundill. "Of course, I'm aware that this was also an opportunity for me to have a nice personal trip. But first and foremost, it had to be worthwhile for the company. And the feedback from the Sydney office was incredible. We are all grateful for this opportunity."

As businesses navigate increasingly complex challenges, the exchange of knowledge, expertise and best practices across borders has become indispensable. By embracing such collaboration, HDI remains ahead of the curve but also contributes to a more resilient and sustainable future for their clients and communities worldwide.