Assurances

InsurTech Innovation and Gen AI Disruption

• “Historically, nearly 2/3 of InsurTech investments appear to have focused on distribution, which may be an overkill. Going forward, there may be more opportunities in other areas, such as underwriting."
• “Too many InsurTechs have been focused on creating companies to be acquired as opposed to developing sustainable business solutions and models."
• "Several conditions will have to be in place for Gen AI to deliver real value: 1) properly curated data to avoid model bias and hallucinations, 2) computing power at scale to be deployed across organizations, and 3) a workforce trained and willing to adopt it."

Optimizing Talent, Culture, and Workplace

• "When recruiting young associates, many are rebranding jobs not as “insurance” but as “risk management,” emphasizing the human capabilities required and "focusing on the problems we are solving for."
• "Training programs are too often the first to get cut in a downturn. Businesses need to take the long view as these programs can develop future talent and drive employee loyalty."
• "Culture is the ultimate retention tool. “There will always be someone willing to pay more, and culture is what keeps people in their organizations."
• "Many argue that in-office presence is critical to building and sustaining a culture. There is a reason family reunions are in-person vs. virtual. There is something meaningful and magical that happens when people connect in person."

Geo-Political Risks and Economic Environment

• “We cannot predict the future; we just need to be ready for whatever it is."

Evolving Expectations of Boards, Governance, and Structure

• "In businesses where technology is becoming a clear competitive differentiator, Technology Committees are becoming more commonplace. These committees, ideally staffed by tech-savvy directors as well as the CEO, are for apprenticeship purposes."
• "It is critical for technology committees to clearly define their charter: “What problem are they charged to solve?" "Strategic use of AI and its impact on talent makes sense." "Cyber and operational risk should be discussed in other committees.”
• “AI expertise in any business is now critical, but it needs to be hired into the business first to contribute 40 hours per week, not just 5 times per year on the board."

AI, Cyber, Opportunities, and Threats

• “90% of the AI conversation tends to be focused on Cyber and operational risk because that is what we can best understand, but it is not what will be most impactful. Businesses should spend more time on customer usage."

Optimizing Talent, Culture, and Succession Planning 

• "A study of banks that managed to produce higher returns found several common points for top performers: 1) The senior management team had good tech acumen with 5-7 tech-savvy execs, 2) the tech budget was done on a 3-year+ horizon, 3) They used an advanced version of agile operating modules “product/platform.” “It all came down to the management team and their operating model."
• "Organizations need to have introspective, self-critical cultures to embrace the potential change AI can bring."
• "What organizations are looking for in their next generation of young leaders are individuals who can balance values and character. People who want to compete and innovate but also have humility and an intrinsic desire to care for others. These are skills that are not obvious on resumes and are more tied to soft skills and culture."