"One of the major challenges for international companies lies in finding mechanisms that allow them to streamline their innovation process."

Interview with Karim Kaidi Ruiz, Director of Systems and Digital Business at Cesce

Cesce is the head of a group of companies that offers comprehensive solutions for commercial risk management and the issuance of surety insurance and guarantees in part of Europe and Latin America.

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In addition, it acts as an export credit agency on behalf of the State, managing export credit insurance and coverage of medium and long-term risks for electro-intensive consumers. 

 

With more than 50 years of experience in the sector, Cesce has a strong international presence through Latin American subsidiaries located in Brazil, Chile, Colombia, Mexico and Peru. Last year, the region's total production of purchased premiums, 75 million euros, was higher than estimated and represented 30% of the own account, which also includes Iberia's production. Between all of them, plus the sum of the companies that make up the Cesce Group, they have achieved a net profit of 75,1 million euros in 2022.  

 

Respond to this company interviewExterior Karim Kaidi Ruiz, director of Systems and Digital Business at Cesce.

 

What does Cesce expect from 2023?

 

Karim Kaidi: “2023 started with the appearance of a new term, polycrisis. This neologism tries to simplify with its etymology – we all have the idea of ​​what it can mean – something as complex as the number of international risks that at this moment occur in parallel and with strong interdependence between them.

 

This scenario of constant uncertainty is especially challenging for the insurance sector in general and, in particular, for those of us who cover credit and surety risks, since it usually entails a considerable increase in loss levels. Faced with this, at Cesce we correspond to the market players by providing them with a framework of security and trust that contributes to the development of their activity. 

 

Under this premise, we trust that The second half of 2023 will be a good year for us and for the insurance sector In its whole. In any case, the course of those global threats that he commented on will undoubtedly mark this last half of the year.”

 

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

 

KK: “There are several and I would say that it is difficult to establish this ranking, since these challenges change depending on the moment and the community where a certain company plans to operate. If we ignore these two factors for a moment, I believe that one of the great challenges for international companies lies in look for those mechanisms that allow them to speed up their innovation process, which requires time and investment and is often difficult to make compatible with your usual activity. On the other hand, I also believe that companies are prepared and know some tools to manage the possible threats that may arise during their internationalization, such as credit insurance and its ability to protect the assets of said companies." 

 

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

 

KK: “There are several trends that have been the subject of continuous debate and development for years in the insurance sector, an area where we are leaders in digital transformation thanks to the implementation of actions such as adaptation to new environments (Insurtech y Fintech), secure user identification, the development of simple and simple products that we connect to financing platforms or third parties that allow us to reach other markets or the development of cybersecurity, to cite just a few examples. 

 

At Cesce we have successfully faced these challenges thanks to positioning innovation as one of the main axes of our current Strategic Plan, which includes three fundamental pillars: lead cultural transformation; undertake process reengineering, through digitization; and finally, create novel ecosystems that allow Cesce to approach its market in a disruptive way. We have recently redoubled these efforts with the Impulsa Cesce 2025 Plan, which marks our roadmap to consolidate ourselves as leaders in terms of digital transformation within the insurance sector through innovative solutions and unique experiences.”

 

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

 

KK: “At Cesce we have focused from the first moment on carrying out a deep digitalization process, since we have an enormous amount of data that requires automated processing that allows us to streamline processes to provide the best service to our clients. Thanks to it we have been able to take advantage of and adapt to the great benefits offered by the solutions in the cloud to migrate part of our applications, which results in greater speed of action, scaling in an orderly manner and without restrictions. Without going any further, currently more than 90% of the risks we analyze are carried out automatically, without human intervention coming into play. All this, of course, always guaranteeing the highest level of security. 

 

In this sense, our own Management Committee has played a key role by getting involved from the beginning in promoting innovation as a strategic pillar for the business through specific and far-reaching actions, such as the designation of a specific budget item for this end or the creation of the Innovation, Business and Digital Transformation Unit, assigned to the Systems and Organization department. Together with it we also created a Innovation Committee where we approve the new projects to be undertaken with the participation and involvement of all our business areas, which shows the commitment acquired by all the areas that comprise Cesce.  

 

Thanks to this strategy we have developed a multitude of projects that have allowed us to differentiate ourselves from the competition and revolutionize the digitalization of credit insurance, as is the case of the Deudor Seguro Exprés and Invoice Segura Exprés products, respectively. The latter the first 100% digital credit insurance offered in the environment insurtech y fintech against non-payment of credit sales on individual invoices. One of the innovative characteristics of this product is that it allows it to be integrated into transactions outside of Cesce, providing a lot of value in the supply chain of our products. partners.

 

Regarding sustainability, we have an ambitious Corporate Social Responsibility Policy framed in our current Strategic Plan 2021-2024, “Transforming ourselves in the face of a new reality”, with which we set a percentage of 0,7 on Cesce's net profit to take away. carry out initiatives of various kinds, many of them promoted by the Cesce team itself thanks to a corporate volunteering model. Without going any further, in 2022 we have carried out some 33 initiatives with impact at both a national and international level and the dedication of almost 300 hours of volunteering.

 

However, in our firm social and environmental commitment, we want to go further with the presentation of our Sustainability Master Plan that will see the light this year. "It will lay the foundations to reinforce sustainability as the true transversal axis of the company with involvement in all its levels."

 

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

 

KK:  Globalization is going through its particular moment of crisis, caused by the trade war between the United States and China, the problems in global supply chains during the pandemic and the war in Ukraine, among other fronts. This series of events, in fact, feed the discourse that globalization is languishing and that we are facing a process of deglobalization... and this is only one of the 6 D's that will mark the coming years of the global economy: along with the phenomenon of deglobalization, it is also found to accelerate the digitalization inevitable, mitigate the inequalities fruit of consecutive crises, defend the democracia, strategically address the challenge demographic and commit to the transition towards decarbonization. 

 

In this new world scenario, Companies are aware of the importance of correct decision-making when marketing beyond our borders., that is why they value so much our more than 50 years of history and the consequent knowledge we have about the national and international market that we offer them. This value is materialized, so to speak, in a portfolio of highly diversified products adapted to the specific needs of each of them. A good example is Póliza Fácil, our credit insurance aimed at SMEs; the Póliza Emprende, aimed at companies that are starting a business project; or the Integral Gold Master, the most complete credit insurance policy on the market to cover non-payment risks.

 

It is worth adding, if you allow me, the service provided by our subsidiary, Informa D&B, which as a leader in the provision of commercial, financial, sector and marketing information for companies, provides all the necessary knowledge of clients and suppliers, thus minimizing commercial risk. We also have the Cesce State Account Country Risk Unit in which our experts carry out an assessment of countries based on the study of their political situation as well as their business environment. These assessments are reflected in reports, with opinions and data relevant to making strategic business decisions.”

 

From your own area of ​​activity, what do you recommend to companies that they must implement, if they have not already done so, in their business models?

 

KK: “Digitalization and the development of new technologies are factors that represent a differentiating element between companies, regardless of their size, and represent a true disruption, not only technological, but also economic at all levels and in any sector. In this sense, digitalization It is a broad concept that in no case should be understood as a simple phase for the company in its day-to-day life, but rather something transversal to it in its own business model as part of the corporate culture. Technology, in fact, is constantly evolving, and a good example of this is Artificial Intelligence and how the world will change in the coming decades and also the way it works. 

 

In the Spanish case, our SMEs have improved their level of digitalization in recent years, a phenomenon accelerated by the pandemic and which forced many companies to adapt to a digitalized environment. However, now The great challenge is how to adapt products and services to the pace of digital customer demand., reinforce online channels and align messages to remain competitive and relevant in the new environment.”

 

According to Cesce's experience, does the level of competitiveness of companies from other countries compared to Spanish ones currently pose a threat? In which sectors are you seeing this phenomenon of loss of competitiveness of Spanish companies most strongly?

 

KK: “First of all, it is necessary to understand where we currently are. The international reality, as I said, is marked by this polycrisis scenario that fully affects companies, regardless of the country they are from. From here on, a key indicator to measure our level of competitiveness compared to foreign companies is inflation, since The growing price difference with respect to other European economies tests the strength of our exports. 

 

Spain has always been an exporting power, but This price gap with other EU member countries threatens our position in the European environment, as our goods and services become more expensive. Added to this situation is the increase in costs due to the rise in energy, although our independence from Russian energy sources, added to the 'Iberian exception' has contributed to keeping price increases at bay.

 

Regarding the sectors that have suffered the most from the consequences of cost inflation, taking into account the foreign trade context, there is the Services. I would like to cite the study carried out by the DBK sector observatory of our subsidiary Informa D&B. In it they quote agricultural sector, given the high cost of fuel and the rise in the price of other inputs, while the food industry In general, it also suffers a negative effect on its margins since it buys raw materials at a higher price. The increase in the cost of raw materials is, precisely, the common denominator for other sectors such as the textile, chemical or electronic, among others. Regarding the sector of automotive and machinery manufacturing", with important weight in our economic fabric, has been affected by the conflict between Russia and Ukraine, since they are two countries with important steel and other metal production activities."