{"id":3933,"date":"2026-08-18T20:18:58","date_gmt":"2026-08-18T20:18:58","guid":{"rendered":"https:\/\/lifere.org\/?p=3933"},"modified":"2026-08-19T14:27:44","modified_gmt":"2026-08-19T14:27:44","slug":"the-value-of-curiosity","status":"publish","type":"post","link":"https:\/\/lifere.org\/the-value-of-curiosity\/","title":{"rendered":"The Value of Curiosity"},"content":{"rendered":"\t\t
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Inside the headquarters of Vienna Insurance Group (VIG), overlooking the Danube, Liane Hirner sits at the nexus of finance and risk for Austria and Central and Eastern Europe\u2019s largest insurance group. As Chief Financial and Risk Officer (CFRO) of the Austrian insurer, Hirner oversees a \u20ac54.3 billion balance sheet (not including the recent German N\u00fcrnberger acquisition), spanning 30 countries and 50 plus insurers and pension funds. It is a role that requires some self-assurance. But when asked about the personal philosophy that underpins her work, Hirner bypasses typical corporate platitudes in favour of something more spiritually satisfying:\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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\u201cAs the Dalai Lama once put it: \u2018When you talk, you are only repeating what you already know. But if you listen, you may learn something new.\u2019\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Indeed it is curiosity that has proven a guiding principle for an insurance leader navigating an era of unprecedented volatility.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Risk v Reward<\/span><\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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The eternal debate between risk and reward is one that insurers are faced with on a constant basis. Having joined VIG\u2019s Managing Board in 2018 as CFO before formally combining the finance and risk mandates in 2020, Hirner\u2019s dual remit places her on the front line of these two forces. Her responsibilities include, group finance and regulatory reporting, risk management, group actuarial, planning and controlling, tax reporting, European Affairs, investor relations and actuarial function.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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If it seems like an exhausting job, combining the finance and risk functions at VIG is something Hirner believes has helped her.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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\u201cEvery risk also has financial implications, and we [insurers] manage not only based on risks but, above all, based on financial results,\u201d she says. \u201cThese are interconnected factors that must always be considered together.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Hirner believes the life insurance environment has changed significantly from what it was in both the economics of existing portfolios and the attractiveness of new business caused by a volatile macro environment that has seen conditions swing from a decade of ultra-low interest rates to rapid rate hikes, spiking inflation, and a subsequent recalibration. For VIG, some of the changes include a greater demand for traditional savings and retirement products, which have become more attractive on the back of higher yields, while at the same time seeing customers show a strong interest in unit-linked and more flexible solutions.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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VIG’s span across the diverse continental market means managing both the dynamics of supply and demand and many-tiered markets needs a nuanced approach. \u201cThere is no single European life insurance market,\u201d Hirner says. \u201cCustomer preferences, pension systems, tax incentives, and levels of insurance penetration differ substantially. Our decentralised governance model allows local companies to respond in a targeted way, rather than imposing one single product strategy across the Group.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Regulatory Complications<\/span><\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Hirner\u2019s influence extends beyond Vienna to the regulatory corridors of Brussels and Frankfurt. Re-elected in 2024 to the European Insurance and Occupational Pensions Authority (EIOPA) Insurance and Reinsurance Stakeholder Group, she actively channels industry insights into European rulemaking.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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In a recent interview<\/span><\/strong><\/a>, Alexandra Jour-Schroeder, Deputy Director-General of DG FISMA, European Commission, told Life-Re about the current push to get European insurers involved in the European economy amid efforts to bridge the continent\u2019s \u20ac800bn economic investment gap. Hirner says things are moving in the right direction as regards insurers playing a more active role in the European economy.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Even so, as a company, VIG has mixed feelings about the Solvency II Review. On the positive side, the review aims to further develop the regulatory framework and adapt it to changing market conditions. But, says Hirner, there are areas for further simplification and a stronger need for practical application. She says that excessive reporting requirements and complex technical regulations \u2013 such as the \u2018volatility adjustment\u2019 \u2013is an area where the opportunity to simplify or improve has not been taken.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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\u201cRegarding the quantitative adjustments, VIG expects only limited impacts on solvency ratios in some areas, whilst the implementation effort is, in some cases, considerable,\u201d she says. \u201cIn certain risk modules \u2013 for example, in the treatment of interest rate risk \u2013 the changes may also have a noticeable impact on capital requirements.\u201d\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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While Europe has very high regulatory standards, \u201cwhich is fundamentally positive for policyholders,\u201d the challenge is the cumulative effect of its rules.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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\u201cEvery individual regulation may have a legitimate objective, but when you put all the requirements together, complexity becomes significant.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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While the EC aims to unlock institutional capital for European infrastructure and green transitions, Hirner remains sceptical that regulatory tweaks alone will dramatically alter portfolio allocations. For example, lower capital requirements under Pillar 1 may make long-term equity investments relatively more attractive, \u201cbut this does not imply an automatic or short-term reallocation,\u201d she says. \u201cStrategic asset allocation, ALM, liquidity, and local regulatory mandates remain our primary drivers.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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What about the much vaunted Solvency and Financial Condition Reports (SFCR) designed to give further information to stakeholders? Not that useful, it seems.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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\u201cOur download statistics indicate that public interest in documents like the Solvency and Financial Condition Report (SFCR) remains relatively limited,\u201d Hirner notes drily. \u201cThe outcome should not be overregulation. It should be smarter regulation: clear rules, proportionality, and enough room to innovate.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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M&A Discipline and the PE Question<\/span><\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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In May, VIG concluded the largest acquisition in the group\u2019s 200-year history when it took over Germany’s N\u00fcrnberger insurance group, bolstering its footprint in biometric life products such as occupational disability insurance.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Globally, the insurance market has seen a significant uptick in appetite for consolidation and acquisitions, particularly with the advent of private equity (PE) which has brought a growing appetite for insurance portfolios into this world. Could this be a challenge to traditional insurers?<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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\u201cI would not generalise. PE brings sophisticated investors and additional capital into the sector, which can be positive. But insurance is ultimately a promise to our policyholders that can last for decades. Therefore, irrespective of who owns an insurer, regulators and policyholders need confidence in the capital structure, investment strategy, governance and long-term commitment of the owner.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Hirner offers a pragmatic view on VIG\u2019s future M&A approach: \u201cWe do not pursue growth for growth’s sake.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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As has been pointed out the life insurance business is a market in flux, with continued changes occurring all the time. As VIG navigates shifting demographics, macroeconomic cycles, and evolving European regulations, Hirner’s approach remains anchored in operational clarity and continuous learning.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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\u201cMy job is to turn complex financial, actuarial, and regulatory information into actionable decisions\u2014and present those issues simply,\u201d she reflects. \u201cTo do that across an international group, you have to bring curiosity, a grasp of detail, and above all, a willingness to listen to the people on the ground.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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It is this mix of curiosity and openness to listen that should put Hirner in a strong position to continue steering one of Europe\u2019s most diversified insurers.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t

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VIG\u2019s position on AIR\u200b<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Among the structural trends sweeping global life insurance, few have generated as much debate as asset-intensive reinsurance (AIR). The tool\u2014which transfers not only biometric mortality\/morbidity risks but also financial and investment exposures off balance sheets\u2014has seen explosive growth in North America and Asia, often backed by private equity capital seeking long-duration assets.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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For VIG’s CFRO, AIR might be considered a useful tool\u2014but with conditions.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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\u201cAsset-intensive reinsurance is certainly an interesting development and we follow the market closely,\u201d Hirner acknowledges. \u201cIt can be a useful instrument because it can transfer financial and investment risks and potentially improve capital efficiency.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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At the same time, she says it is important to understand \u201cwhat is actually being achieved through such a transaction.\u201d\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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\u201cRisk does not disappear simply because it is transferred,\u201d she says. \u201cYou have to look very carefully at counterparty risk, collateral arrangements, the quality of the underlying assets, liquidity, concentration and the long-term alignment between the parties.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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To-date the growth of AIR in Europe has lagged that in other jurisdictions like the US or Japan. And Hirner warns against assuming the US AIR playbook can be blindly imported into Europe. She says there are structural differences in the markets and the different regulatory frameworks which may make it a longer-term process. Even so, given its usefulness, she says she could see AIR being used by VIG as a capital and risk-management instrument.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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\u201cWe have a strong capital position and a well-diversified business model, so there is no necessity to pursue such transactions simply because they are fashionable elsewhere. If a structure created genuine economic value for VIG and our policyholders and met our risk standards, we would of course assess it. But economics, transparency and risk transfer would have to be convincing.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Liane Hirner, CFRO of VIG, has a strong belief in the merits of listening. It is a trait that has helped her navigate the shifts seen in life insurance in recent years, including macro volatility and the advent of trends like PE and asset intensive reinsurance.<\/p>\n","protected":false},"author":2,"featured_media":3944,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[38],"class_list":["post-3933","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-feature","tag-main-aug-26-1"],"_links":{"self":[{"href":"https:\/\/lifere.org\/wp-json\/wp\/v2\/posts\/3933","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lifere.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lifere.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lifere.org\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/lifere.org\/wp-json\/wp\/v2\/comments?post=3933"}],"version-history":[{"count":178,"href":"https:\/\/lifere.org\/wp-json\/wp\/v2\/posts\/3933\/revisions"}],"predecessor-version":[{"id":4129,"href":"https:\/\/lifere.org\/wp-json\/wp\/v2\/posts\/3933\/revisions\/4129"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lifere.org\/wp-json\/wp\/v2\/media\/3944"}],"wp:attachment":[{"href":"https:\/\/lifere.org\/wp-json\/wp\/v2\/media?parent=3933"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lifere.org\/wp-json\/wp\/v2\/categories?post=3933"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lifere.org\/wp-json\/wp\/v2\/tags?post=3933"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}