Serving a larger purpose
One of the most bizarre slogans I’ve seen at a head office was: “This place is crawling with actuaries”. The copywriter obviously had a sense of humour — “Welcome to the house of horrors” was probably the alternative line. The slogan, on the old Alexander Forbes building, reflects the self-belief that the firm is brimming with intellectual capital.
I sometimes think there are more people at Forbes trying to achieve socalled thought leadership than actually conducting business. Perhaps Forbes could justify a brains trust when, in addition to its local retirement administration business, it had a large UK insurance wholesale broker, several retail brokers and a firm of actuarial consultants in the UK, as well as the largest corporate brokerage and largest cell captive insurer in SA.
I am glad to see that new CEO Andrew Darfoor realises that the “business of business” is business. Forbes staff used to have endless theological debates on the subject of “higher purpose”, which have now been banned. Prompt and efficient delivery to clients is what matters. To streamline the offering, Darfoor brought back John Anderson from Sygnia.
Anderson is considered to be a solid product actuary, and I think he will be happier in a big business like Forbes — which even after all its disposals has 3,500 staff — than a cottage-sized boutique such as Sygnia, with 200 staff. At least Anderson does not call himself a marketing actuary, as Forbes has wisely given the product marketing job to a qualified practitioner of the dark arts, Katherine Madley.
Forbes is now focused on lifetime wellbeing, which looks and quacks like a higher purpose to me. In the past, Forbes owned retirement in the way that Kellogg’s owned breakfast time. But it barely interacted with anybody under 55; even the top executives who were members of its pension funds were rarely consulted until retirement was looming. Now Forbes plans to consult to the employer and broader workforce on issues such as debt and absenteeism. It will join forces with specialists, such as Meerkat, on debt counselling.
A focus on financial wellness
Anderson says Forbes has talked about offering holistic financial support for many years, but has never implemented it. And when it has delivered a message of financial wellness it has focused on the need to buy more product.
However, Anderson argues that it boils down to showing courage: to take the first step towards paying off debt, for example. Forbes consultants even have ambitions to drive down levels of divorce and depression, not areas in which actuaries’ stochastic models will prove much help. Psychologists will be stepping in when appropriate.
One of the main tools for lifelong planning will be funds offered by Alexander Forbes Investments, once known as Investment Solutions. It is moving into the retail market from its institutional comfort zone with the ambitious slogan “In pursuit of certainty”.
In the investment world you may as well chase unicorns as there is no certainty, but it’s a nice feel-good message.
At least Forbes will start to leverage its largest shareholder, Mercer, which owns 34% of the group. As well as its core multimanagement business, Mercer covers the full spectrum of employee benefits and human resources consulting, including remuneration consulting.
Perhaps surprisingly, Forbes doesn’t plan to go the whole hog and become a management consultancy itself, even if this is a great time to become the next Mckinsey.