“The Broker Becomes an Entrepreneurial Risk Manager for SMEs”

Risk management has long been considered a compulsory exercise, especially for SMEs. But with increasing complexity and growing uncertainties and risks, it is becoming a question of survival. Marco La Bella, Managing Partner of La Bella Consulting, has been advising insurance companies, health insurance funds, pension funds and brokers for years. His software solution riskAware promises “maximum security with minimum effort” and at eye level with digital requirements.

In an interview with thebrokernews, Marco La Bella explains why traditional insurance advice alone is no longer enough, how the broker’s profession is changing and why advice must be more than just product comparisons, customer service and claims support.

Mr. La Bella, on your website you talk about “maximum security with lean risk management”. What does this mean in concrete terms for SMEs in Switzerland?

For SMEs, this means that risk management should not be complicated and expensive, but simple, effective and affordable. riskAware is made for precisely this – technically correct, systematic and streamlined in its application. SMEs don’t want rigid tools or license models costing several thousand francs. They need an instrument that provides security without creating additional expense. This is exactly where we come in.

How does your software solution riskAware work and how does it differ from conventional risk management tools?

Our focus is not on the tool, but on the action. riskAware has been deliberately developed for SMEs: simple, intuitive and without complicated manuals. It is crucial that risk management is not seen as a one-off compulsory exercise, but as a continuous process. That is why we offer a simple subscription model in which software and consulting go hand in hand. Every year, we conduct a risk dialog with the customer and the broker – this keeps the topic alive and brings real benefits. This increases the SME’s risk awareness step by step.

What typical weaknesses do you see in SMEs when it comes to risk management?

The biggest weakness is simple: many SMEs implement this statically or only irregularly. There are different ways of practicing risk management – the decisive factor in the first step is not the method, but the continuous implementation. If you ignore risks, you are acting negligently and, in the worst case, jeopardizing the future of your company. Take cyber, for example: no SME is safe from a cyber attack. And if you don’t deal with risks, you are also wasting opportunities! Risk management is also opportunity management.

In your experience, how strong is risk awareness among Swiss SMEs and is it currently changing?

Many SMEs have a low level of risk awareness. It is often seen as an annoying side task rather than a strategic issue. At its core, it is about the company’s resistance to crises and its ability to survive. In addition, the Board of Directors is liable for intentional or negligent breaches of its duties in accordance with OR 716a. Risk management is a matter for the boss. The major events of recent years – corona, wars, economic upheavals – have shown that our world is no longer constant, or rather more unpredictable. Risk management means thinking in terms of risks, scenarios, opportunities and implementation measures.

What role do insurance brokers still play today at a time when digital tools and platforms can take over many traditional tasks?

The role of the broker is more important today than ever before. With riskAware, brokers can also position themselves as risk advisors. In a constantly changing environment, they are already the entrepreneur’s risk companion. Digital tools support brokers and SMEs in this task.

How is the job description of the insurance broker changing as a result of digitalization and automation? Will he become a risk coach or is he like a family doctor?

He is, so to speak, both a risk consultant and a “family doctor”: the first point of contact, the trusted advisor who can be trusted to deal with business risks. Digitalization and automation relieve them of routine tasks, leaving them more time for the essentials: supporting the entrepreneur, classifying risks, identifying options for action and safeguarding decisions. This is exactly where the great future of the profession lies.

Is the brokerage concept over?

No, the days of brokerage are not over. But it would be risky to rely exclusively on it. Brokers should also prepare other billing models at an early stage. A possible first step would be to charge for individual services on a fee basis and offset these against the brokerage fee. This creates more flexibility – and the customer feels that good advice has an independent value.

Do you believe that brokers will have to provide more strategic advice in future instead of just offering product comparisons, customer support and claims assistance?

I would speak less of strategic consulting and more of business consulting. It’s about supporting the customer from their point of view – in other words, recognizing and assessing risks and deriving the right measures together in discussions. Brokers have a great opportunity to support the entire risk process, not just the passing on of risks via insurance.

Is there a current project or development at La Bella Consulting that you are particularly excited about?

I am currently excited about how our riskAware product is helping various corporate brokers to clearly identify their customers’ risks and make well-founded decisions. This makes companies more resilient in crisis situations. Each broker decides for themselves whether they want to use riskAware as a neutral third-party product or as a whitelabel product. The teamwork between us and the broker works extremely well.

How do you generally approach a risk analysis at La Bella Consulting? Is there a specific procedural model behind it?

The focus is on risk dialog. We take a structured approach with the entrepreneur in four steps: Identify, analyze and evaluate risks and finally define suitable implementation measures. This remains deliberately simple, pragmatic and technically correct – so that risk management does not remain theoretical, but is put into practice. The time required is manageable and the annual subscription costs are suitable for SMEs.

What role does artificial intelligence play in your tool in modern risk management?

We use AI to create industry-specific risk catalogs and keep them up to date. These serve as the basis for the risk dialogue with the customer, where we jointly review, adapt and specify the content. In this way, we combine AI efficiency with the necessary individual advice.

You offer boutique consulting, how does this differ from the traditional consulting approach of large consulting firms?

We don’t work for the customer, we work with them. Our approach is based on partnership and equality. We develop solutions together – pragmatic, practicable and directly anchored in everyday life.

What would you like brokers and clients to do to make risk management more effective and responsible in the future?

We currently see a great opportunity for brokers in risk management for SMEs. They can thus provide SMEs with even greater support in dealing with risks proactively. Customers are increasingly recognizing that risk management is a key corporate responsibility. This is where riskAware supports brokers and SMEs.

Risk management is a key element of entrepreneurial resilience, especially for SMEs that cannot waste resources or time. Marco La Bella argues for a new understanding of their role: away from isolated product optimization and towards entrepreneurial risk management. The future of the broker is entrepreneurial consulting, digitally supported and decisive for the stability of companies in good times and bad.

The interview was conducted by Binci Heeb, Editor-in-Chief.

Marco La Bella completed an insurance apprenticeship at Basler Versicherung, later studied business administration at the University of Applied Sciences in Chur and trained as an insurance expert in the field of personal insurance from 1997 – 2002. From 2003 to 2004, he completed an Executive MBA with a focus on business engineering at the Institute for Information Systems at the University of St. Gallen. After holding various management positions in the insurance industry, he moved into management consulting in 2001, initially as Senior Manager Financial Services at KPMG/BearingPoint Schweiz AG (2001 – 2006) and later as Head Financial Services Switzerland at Capgemini (2006 – 2010). After a brief period as Chief Operating Officer at Wilhelm Group Zurich (2011), he set up his own business as a management consultant and has since built up La Bella Consulting AG, a consulting boutique focusing on projects in the insurance industry. In addition to his professional activities, Marco La Bella is an active member of the Board of Directors and serves as a part-time commercial judge for insurance at the Commercial Court of the Canton of Zurich.

Read also: From practitioner to pioneer: Alex Sidorenko on his way to becoming Europe’s leading risk management expert