On the latest episode of Risk Management: Brick by Brick, Jason Reichl is joined by our first return guest, Allister Yu, the Senior Vice President of Operations at Rhoads Online Institute, a technology transformation company providing automated compliance systems and services for the insurance industry.
In this episode, Jason and Allister explore how businesses are implementing new technologies today for analysis and growth, how AI and technology can be leveraged to combat the challenges of the aging workforce, and how insurance companies can stay on top of ethical considerations when introducing new technology.
To find out how TrustLayer manages risk so that people can build the physical world around us, head to TrustLayer.io.
The Current State of Technology Use
Technology has come leaps and bounds over the past decade, and so it’s no surprise that we have been finding new ways to use it everyday in the insurance industry. As Allister says:
“The insurance industry is looking to capitalize on the tools that can be utilized, really, to enrich the entire producer experience.”
In fact, there are two critical ways insurance organizations are leveraging new tech: for analysis and growth.
Those businesses using technology for analysis are preparing for the next stage in their business. Whether this eventually is growth, or a rebrand, or even a restructuring, they are ensuring that they are fully set up for the next steps they are planning on taking by analyzing exactly where they already sit. By getting a full-picture view, they can predict where changes might take them.
Technology is also used for growth, which could actually be used in tandem with using it for analysis. Essentially, growing businesses are using technology to ensure their growth is both effective and sustainable. This is through measures such as automating repetitive tasks to free up the time of team members for more important processes, or just by ensuring their tech stack is set up as efficiently as possible.
And of course, the wider insurance industry is growing rapidly, and this would not be possible without technology:
“Technology is critical in the velocity in which the insurance industry is growing.”
Where Can We Go With AI and Automation?
AI and automation were the buzzwords of last year, and it seems like they could have that same standing this year.
With wider technology constantly evolving, so are AI and automation, and they are being leveraged in new ways every day.
Right now, the biggest benefit of automation is its ability to combat the challenges that come from the insurance industry’s aging workforce. We are not gaining as many young starters as we are losing our experts to retirement, which means we need to be really clever about how we position current staff. To Allister and Rhoads Online Institute, automation is key: “The workforce is aging out. And what workforce you have is knowledgeable, they are skilled, they are expert. … And what Rhoads is doing with our customer base is looking at highly manual, highly predictable tasks that we can automate.”
So, by automating the tedious tasks, we can make sure our expert employees are being put to good use.
But, we do need to be careful when we implement new tech, particularly when there is data involved, as there often is in insurance. Allister says:
“I think today, just in respect to where regulation is, in respect to data, security is paramount every day that you're hearing about, Oh, a data security issue or data risk issue or things like that. So I think organizations today are really looking at new risk models in respect to how can I move away from data breaches?”
To make sure we’re keeping all of our data safe as we leverage new technologies, we need to adjust our risk models and be aware of the ever-changing regulations around AI. It’s a good job we have plenty of risk managers then, isn’t it?
To find out more about managing the use of new technology in insurance, tune in to this episode of Risk Management: Brick by Brick.
Apple: https://apple.co/43noQ29
Spotify: https://spoti.fi/3VrUvxA
Podcast Host: Jason Reichl
Executive Producer: Don Halliwell
