Creating change

Growing up in Edinburgh, Scotland, Fiona Macgregor didn't imagine she would end up moving across the world, leading one of Australia's largest insurers, but in some ways it was serendipitous.

"My family background is quite relevant to how I ended up in Australia and at TAL, because my dad was medically retired at 47," she says.

"I was probably 16 when dad was 47. So that was an important formative experience at the time. It was also the reason why, when I got a call from a company called TAL in Australia, 12 years ago, I had an interest in life insurance, having not worked directly in that sector before."

Prior to TAL, Macgregor primarily worked in banking, having started her career at the Royal Bank of Scotland (RBS). She stayed for around a decade; having been there when it was a community-focused bank right through to witnessing it launch a hostile £21 billion takeover bid for the English banking giant National Westminster Bank in late 1999.

"[There was] enormous growth that continued through that period where the bank became very global," she says.

"I was working in innovation and getting to travel to different countries and take on new customer-led innovation challenges. So, it was quite an exciting time to be part of a growth-oriented business."

Macgregor was witness to both the rise and fall of the RBS, having also seen it through what was one of the largest corporate failures as a result of the Global Financial Crisis.

Having accumulated a massive balance sheet of £2.2 trillion, it was briefly the largest bank in the world, before requiring a £45.5 billion taxpayer bailout in late 2008.

"That was another really shaping experience in terms of my career now. Being part of a business that had done so well and been such an important part of the fabric of the country, and then destroyed value for the community it existed to serve," Macgregor reflects.

Following the crash, she continued to work in innovation with one of her main priorities being how to rebuild trust in the community.

"It was probably the time in my whole working life where the need to innovate was most understood, because there was such a strong customer imperative. So [it was] very shaping and very formative in terms of now being a chief executive for the last couple of years and never ever wanting to put ourselves or our community in that position," she says.

Macgregor got the call from TAL about an opportunity in Australia in 2014, to join the team as general manager, innovation development.

She says there were two immediate drawcards for her; the first being the connection to the purpose of the organisation and sector, the other being how the industry would benefit from
innovation.

"I had a belief in the value of what the industry does, but alongside it, a perception I had that the industry would benefit from innovation, and particularly as it was very intermediated, the need to have that real closeness to customers and to think ahead on behalf of your customers, that was very motivating," she explains.

Macgregor understands that at times, some customers will approach the insurance industry from a low base of trust - but that is something she has been working hard to change.

"I call it restless energy, because my mum used to say I was a restless child. I think I've held onto that word because you need restless energy in this sector, and this business, to stay relevant," she says.

"We tend to be more trusted by those who actually deal with us directly, but perhaps community perceptions of insurance are still something that needs work. We need to work hard to keep earning trust.

"So, [we're] making sure that TAL, in particular, is a business that works hard to stay relevant for our customers today, but also for next generation consumers, who I think have some particular characteristics, and there are some particular challenges that we need to address when we think of younger consumers and next-generation consumers.

"I suppose my background is right for the times in terms of the work that we need to do, the work that we're doing now and the work that's ahead."

As for the 12 years she has spent at TAL, Macgregor says she has learnt a lot, not only about the sector but also about what is possible moving forward, and she feels optimistic.

"The business is considerably bigger than it was when I started, and our position in the market is stronger. We have occupied a position of market leadership, and with all of that has come all of the obligations that you would expect, and I suppose sense of responsibility to drive positive change in the industry as part of that leadership position," she says.

"What I notice about TAL, is that whilst it has grown and changed, it's held on to some of those cultural attributes that feel really important here. Because I think businesses like this are a combination of being financial products and having all the discipline and rigour that comes from having a financial licence and all the obligations that you hold, but also because claims is at the heart of what we do... there's a real human experience at the heart of it.

"I think that drives the culture here, and that has been maintained and endured over the years, and it's also been a really deliberate focus. And I hope that's something we always hold on to."

Looking ahead, Macgregor is excited about what the business can deliver, especially as the biggest cohort of Australians is about to enter retirement.

"Retirement is a national opportunity and I'm optimistic we have a chance to do that really well in Australia. With millions entering retirement in the next decade, our work with partners aims to help people navigate that transition with greater confidence," she  says.

But another important mission is to ensure there is a relevant safety net in Australia. Macgregor says TAL wants to "play a big part in that".

"We're in a time where we can't escape the discussion around productivity, and I think the part that we have to play in that is making sure the safety net is orientated around helping people recover, and to the extent that we can, supporting them back into social and economic participation. You know that's the part we can play," she says.

"That naturally means an emphasis on living benefits and away from large permanent lump sums. That transition was already happening, but I think we've got the real opportunity to lead in that."

Alongside that, like most other leaders across every industry, Macgregor is also focused on generative artificial intelligence (AI) and how to integrate it into the business and how it has already changed consumer behaviour.

She also plans to continue working with the community and the sector to address mental ill health.

"It's just a bigger feature of the life insurance industry now because it's a bigger area of community need. So, continuing to be thoughtful around how we approach mental ill health and how we support people to recover remains era defining from my perspective," she says. fs