“Digitalization is an obligation to ensure the future of operations”

Interview with Enrique Cuadra, corporate director of Risks at Solunion

Solunion is a joint venture owned 50% by Mapfre and Allianz Trade that helps companies in Spain and Latin America, of all sizes and sectors, to manage their commercial risk, with credit and surety insurance solutions and other services that They accompany you in the management of your commercial risk.

---

 

The company has a presence in Spain, Chile, Colombia, Mexico, Panama and Argentina; and offers its products and services with Mapfre in Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica, Dominican Republic, Ecuador, Peru, Uruguay and Paraguay. In 2022, Solunion recorded a global turnover of more than 294 million euros.

 

Furthermore, and in close collaboration with Allianz Trade subsidiaries, present in 50 countries, Solunion has expert and always up-to-date information so that its clients can make the best decisions and expand their business in any country in the world.

 

We spoke with Enrique Cuadra, corporate director of Risks at Solunion, about what companies must take into account to adapt their international businesses to the rapid changes favored by the development of new technologies. 

 

What does Solunion expect from 2023, regarding its activity linked to the foreign sector? Do you predict a year of change or stability?

 

Enrique Cuadra: “The economic research departments of our shareholders foresee a new slowdown in global trade by 2023. We will continue on the path of growth, between 1% and 1,5%, but with threats such as high levels of inflation, the tightening of monetary policies and the uncertainty of financial markets, this figure could be reduced. 

 

Despite this, the pace of growth will accelerate in the second half of the year and will be at 4% by 2024. From our own experience, we can say that companies continue to see abroad as a way to diversify risks and grow.” . 

 

What are the main challenges that international companies face when implementing innovation?

 

EC: “In a changing and volatile environment like the one we find ourselves in, the need for adaptation is constant, and companies need to implement innovative tools and cutting-edge services in order to provide solutions adapted to their clients to continue being competitive in the market. Digitalization and the ability to absorb new technologies They are very important challenges within the growth strategy of international companies. The more flexible they are, the more easily they will be able to adapt to all these changes. 

 

Likewise, it is worth highlighting other factors such as regulation, also in a process of constant change as markets, financial resources or the corporate culture itself evolve, which also represent important challenges and opportunities for companies. 

 

What do you think are the most disruptive trends in your sector of activity today? How prepared is Solunion to face them?

 

EC: "The use of digital technologies to improve process efficiency through the automation of routine tasks, the digitization of documents and the implementation of online customer service platforms, are some of these trends that we have already been adopting. Also AI or Machine Learning are being used to improve the accuracy of risk assessment, fraud detection and personalization of services. We are talking, not about the future, but about the present of the credit and surety insurance sector.

 

Additionally, we can highlight the importance of ESG and how sustainability is being placed at the center of the medium and long-term strategies of more and more insurers. At Solunion, we are already immersed in it and applying this vision to our risk underwriting and the creation of new products and services.” 

 

 What weight does innovation have in your activity? What importance do you give to sustainability? What is your degree of digitization?

∙    

EC:”For Solunion, exploring is being enthusiastic about innovating, improving what already exists and looking for new opportunities to grow. One of our maxims is to offer innovative solutions adapted to the business, so that our clients find a solid and safe path that allows them to achieve all the objectives they set. Not in vain, audacity, which implicitly implies the concept of being a pioneer, is one of our great brand values.  

We believe Technology is the best ally to boost our clients' business, and we rely on it to anticipate possible unwanted situations. This technology also allows us 24/7 interaction with the market, through our technological portals. 

To cite a few examples, at the end of last year, we made available to companies eGrade, a rating service based on solvency, 100% digital, and a few months ago we implemented a digital offer configurator to assist our website users in finding the perfect solution for their business. 

On the other hand, with regard to sustainability, we are firmly committed to the 2030 Agenda and with compliance with the United Nations Sustainable Development Goals. Since our creation, we have worked with commitment and transparency to implement a sustainable and environmentally friendly growth model. We believe in our power to generate the future by promoting a better world from within our possibilities and fostering this spirit among our employees, our Solunioners, and those interest groups on which we can influence.” 

 

Within your sector of international business services offering, credit insurance, at what point do you think the Spanish company is in acquiring capabilities in this new global business scenario?

 

EC: “Definitely. Spanish credit insurance companies are well positioned to face the challenges of the current complex context. We have shown great adaptability in the past, and there is no doubt that we will continue to do so in the future.

∙     

We have developed advanced risk models and analysis tools that allow us to accurately assess credit risk in a wide range of scenarios, which is especially valuable in this uncertain and constantly changing business environment. Additionally, we have invested in the digitalization and modernization of our operations, allowing us to be more agile and efficient.

 

We are companies with a global presence and a deep knowledge of international markets, which is crucial in this new global business scenario. “We understand the complexities of emerging markets and are well equipped to navigate the challenges that may arise.”

 

And more specifically, from your own area of ​​activity, what do you recommend to companies that it is mandatory to implement, if they have not already done so, in their business models?

 

EC: “As we have already mentioned, I think that the simplification and flexibility of processes It is essential when it comes to absorbing major changes in an agile way. Of course, digitalization, who also played a leading role throughout that interview, It is an obligation to ensure the future of operations; and, finally, establish cash flow stabilization models through proactive management of the client portfolio.” 

 

According to your experience, does the level of competitiveness of companies from other countries compared to Spanish companies generally pose a threat at this time? 

 

EC: “We do not understand that there is a real threat from companies from other countries. Let us remember that, last year, Spanish exports registered a historical record and contributed 2,6 percentage points to the growth of the country's GDP, which represents almost half of the growth of the economy. 

 

The Spanish company still has a way to go in terms of digitalization and internationalization. The pandemic has led to a loss of competitiveness as published by numerous international organizations. 

 

The Spanish businessman has always been characterized by his great capacity to adapt to the environment, although historically he has focused on local or at least nearby geographies, but markets are increasingly global, more dynamic and competitive. 

 

We have numerous examples of companies that have managed to become international leaders in their sector, so It is time for small and medium-sized businesses to move forward on that path. We have great companies that, with the help of colleagues like us, who help them navigate the challenges of the environment, will continue to make a difference and generate value and a future.”