In this issue:
- Latest global risk reports from Allianz and the World Economic Forum
- Lloyd’s of London and Aon’s study of the impact of a hypothetical global ransomware attack
- WCRI on opioid dispensing rates
And much more…..
Category Archives: Insurance Industry
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FROM THE I.I.I. DAILY: OUR MOST POPULAR CONTENT, JANUARY 28 TO JANUARY 31
Here are the 5 most clicked on articles from this week’s I.I.I. Daily newsletter.
- Polar vortex: It’s back – let’s talk about frozen pipes, Triple-I blog
- Deer vs. Arizona bicyclist and — whoa, are they both lucky, Washington Post
- Family says hacked Nest camera warned them of North Korean missile attack, Washington Post
- Ranking: Georgia drivers ranked among worst in the nation for 2018, Atlanta Journal
- Go to bed! Brain researchers warn that lack of sleep is a public health crisis, Washington Post
To subscribe to the I.I.I. Daily email daily@iii.org
Much Ado About AI at I.I.I. Joint Industry Forum
By Lucian McMahon
You’re familiar with the buzzwords by now. Internet of things. Blockchain. Artificial intelligence.
At the 2019 I.I.I. Joint Industry Forum, a panel on artificial intelligence and insurance cut through the buzz. How can AI be used to help build resilient communities? And how can the insurance industry leverage AI to better help customers address risk?
Pictured left to right: Andrew Robinson, Sean Ringsted, Ahmad Wani, Kyle Schmitt, James Roche
New products, more resilience
Regarding resilience, Ahmad Wani, CEO and co-founder of One Concern, said that AI is being used to harness vast troves of data to identify, on a “hyperlocal level,” the impact of a whole range of hazards. His company is already doing just that, partnering with local governments and insurance companies to better plan for future losses. “We don’t need to wait for disasters to happen to prioritize the response, we need to make changes and to act now before the disaster,” Wani said.
Sean Ringsted, executive vice president, chief digital officer and chief risk officer at the Chubb Group, also pointed out that insurers are already expanding their product offerings thanks to AI and big data. Contingent business interruption, for example: the sheer volume of data can now allow insurers to effectively analyze supply chain risks and price them accordingly.
Transparency and fairness are top of mind
But as Ringsted said, “it’s not all good news and roses.” What sorts of concerns should insurers and the public have about using AI?
Kyle Schmitt, managing direct of the global insurance practice at J.D. Power cited consumer concerns with the data and algorithms used for AI-enabled products. Consumers are deeply concerned with the security and privacy of any data they share with insurers. Per Schmitt, consumers also worry about the fairness of AI products, when algorithms instead of people are making decisions in an opaque way.
This is the so-called “black box problem” of AI, in which complex algorithms will arrive at answers or decisions without anyone being able to explain how they did so. Ringsted stressed that, for AI to be a viable tool, its mechanisms will need to be explainable to regulators and the public.
James Roche, vice president, personal lines product development at ISO, echoed this sentiment: social responsibility requires both robust data stewardship and strict control over AI outputs to ensure that outcomes are fair and within ethical standards.
From a consumer perspective, ensuring ethical use of AI is critical. Schmitt said that at the end of the day consumers are open-minded, “but they just want some ground rules.”
FROM THE I.I.I. DAILY: OUR MOST POPULAR CONTENT, JANUARY 18 TO JANUARY 24
Here are the 5 most clicked on articles from this week’s I.I.I. Daily newsletter.
- As $30 billion in wildfire claims bankrupt PG&E, California wonders who will pay after the next conflagration, Forbes
- The elderly and driving: When is it time to hit the brakes? New York Times
- University of North Carolina defends race-conscious admissions in federal lawsuit, Washington Post
- Top 10 causes of death: Opioids now kill more people than cars do, Property/Casualty 360
- Walgreens to pay $269 million on claims it overcharged federal programs, Wall Street Journal
To subscribe to the I.I.I. Daily email daily@iii.org.
I.I.I. Joint Industry Forum: CEO Conversations
Pictured left to right: Sampson, McChrystal, Parrillo, Watkins
One of the most interesting parts of I.I.I.’s Joint Industry Forum conference was the CEO Conversations, a panel discussion moderated by David Sampson, President and CEO of American Property Casualty Insurance Association. The panelists were: Sandy Parrillo, President and CEO, Providence Mutual; Hank Watkins, President, Lloyd’s America and four-star General Stanley McChrystal who was also the event’s keynote speaker.
The panel discussed some of the top challenges and opportunities facing the insurance industry today. It’s well known that insurers are concentrating on recruiting new talent, but Sandy Parrillo also pointed out the value of keeping “vintage workers” engaged and helping them adapt to different styles of work. Parrillo also spoke about the need to involve and get buy-in from all levels of employees when rolling out a new product.
Hank Watkins spoke about the insurance gap which poses a significant threat to global prosperity, especially in developing nations such as earthquake-prone Ecuador, as one of the top challenges to our industry. And on the positive side, Watkins gave Jumpstart Recovery’s earthquake coverage as an example of an innovative new product. Jumpstart is a surplus lines insurance broker using Lloyd’s capacity. It offers earthquake insurance in California with payment that’s triggered by an earthquake of a pre-specified intensity without the traditional claims handling process.
General McChrystal brought the conversation back to leadership. He recalled the characteristics of one of the most important leaders in his career – a tough commander who did not have much positive feedback to give when his subordinates did a good job. However, when McCrystal failed at a task, the commander surprised him by saying “I thought you did great!” Being given the freedom to fail means you can try different things and ultimately succeed.
I.I.I. Joint Industry Forum: Talent and leadership keynote
Gen. McChrystal delivers JIF keynote speech
Each year the I.I.I. hosts a conference called the Property/Casualty Joint Industry Forum. This unique event assembles key figures from the business, policymaking and media spheres to explore topics of vital interest to our industry.
This year we were fortunate to have four-star General Stanley McChrystal as keynote speaker. General McChrystal was the commander of Joint Special Operations Command (JSOC) and International Security Assistance Force. He shared crucial lessons on leadership which he acquired while leading the effort against Al Qaeda in Iraq.
Al Qaeda used smartphones and the internet to coordinate attacks; they were “lightning fast and constantly changing.” The elite JSOC was daunted by the terror group; “we were losing” said McChrystal. In order to beat Al Qaeda some of the old rules had to be thrown out, and radical new leadership techniques had to take root. Here are some of the lessons corporate leaders can take away:
- Violate the chain of command. Giving everyone in your organization the information you normally only give the C-suite leads to “empowered execution”. In our fast-paced world there is not always time to let everything trickle down a long chain of command.
- Give employees the freedom to use their own judgement. “Execute the order, but if the order is wrong, execute the order we should have given you.” Don’t allow “just following procedure” to be an excuse for actions that are wildly inappropriate for the situation.
- Think of the role of leader as akin to that of a gardener. A gardener does not grow plants, only plants can do that. Instead, a gardener feeds, weeds and protects the plants thereby allowing them to do what they do best. By enabling the organization you will be sure to see a positive outcome, concluded McChrystal.
WCRI Annual Issues and Research Conference
The Workers Compensation Research Institute (WCRI) is holding its 35th Annual Issues and Research Conference on February 28th at the Renaissance Phoenix Downtown in Phoenix, AZ. Anyone working to improve workers’ compensation systems or seeking to manage a changing environment would benefit from attending.
Some of the highlights from the conference agenda include:
- A keynote address by world-renowned economist Alan Krueger on the future of work, the impact of technology on the economy, and how the opioid epidemic has affected the labor force participation rate
- The latest research on opioid prescribing to injured workers
- A panel discussion of Washington State’s community-based program that brings together medical providers, employers, and injured workers to help ensure timely, effective, and coordinated services
- The challenges and opportunities of telemedicine
- A discussion of some of the latest findings and trends seen across WCRI’s core benchmark studies, including WCRI’s 18-State CompScope™ Benchmarks reports, a multistate benchmarking program that measures the performance of a growing number of state workers’ compensation systems
Past attendees have said that the WCRI’s is the one conference that offers an “independent point of view that covers the entire spectrum of works compensation” and that it is “a great place to learn and a great place to network.”
Click here to learn more about the conference agenda or to register.
From the I.I.I. Daily: Our most popular content, January 4 to January 10
Here are the 5 most clicked on articles from this week’s I.I.I. Daily newsletter.
- How insurance covers skiing accidents, Triple-I blog
- How Much Umbrella Insurance Do You Need? Kiplinger’s
- Water damage is costing homeowners billions. could IoT help? Triple-I blog
- Toymaker sues Louis Vuitton for the right to keep making pooey purses, Washington Post
- Florida’s assignment of benefits crisis, Triple-I blog
To subscribe to the I.I.I. Daily email daily@iii.org.
The Insurance Information Institute’s 37th Annual Property/Casualty Joint Industry Forum
Next Thursday (1/17) the I.I.I. will be proud to host the 37th Annual Property/Casualty Joint Industry Forum, an annual gathering of insurers, reinsurers and other industry leaders.
The event allows top executives in the insurance industry to network, exchange vital knowledge, and discuss emerging trends that will impact the future of the industry.
With this year’s theme of ‘Leading the Way Forward,’ insurance leaders will provide helpful insight on how the industry is paving the way into the future.
JIF 2019’s formal agenda will feature panel discussions, keynote addresses and the first-ever JIF Town Hall addressing flood and catastrophe resilience.
We will be hosting retired Gen. Stanley McChrystal and former New Orleans Mayor Mitch Landrieu as speakers to discuss their personal experiences with adversity and resilience. Additionally, Randal Quarles, a member of the Board of Governors of the Federal Reserve System, will join Sean Kevelighan, CEO of the I.I.I., to discuss current issues of the day.
Panel discussions will cover a wide array of insurance topics, including:
- Economic Impact – How a charged political environment will affect regulatory environments, international alliances and trade partnerships, and the likely ramifications of heightened political risk for insurers and reinsurers.
- Artificial Intelligence’s Risks, Ethics, and Opportunities – The benefits, drawbacks and ethical concerns as insurance seeks to manage risk in what some are calling the “Fifth Industrial Revolution.”
- Talent and Leadership – McChrystal will share candid observations on innovative leadership and insights he gained while developing and implementing successful strategies including the creation of a comprehensive counterterrorism organization that has revolutionized the way military agencies interact and collaborate.
- Resilience Town Hall – In this inaugural JIF Town Hall session, experts share perspectives on national and regional efforts to build community resilience in disaster-prone areas.
EVENT DETAILS:
WHEN:
Thursday, Jan. 17, 2019 from 9:00 a.m. to 7:00 p.m. ET
- Registration: 9:00 a.m. – 10:30 a.m. ET
- Forum: 10:30 a.m. – 5:00 p.m. ET
- Reception: 5:30 pm – 7:00 p.m. ET
WHERE:
Marriott Marquis Hotel in Times Square, 9th Floor, New York City, NY
Media room will be in the “Jolson Room” on the 9th floor
For more information visit https://iii.swoogo.com/2019jif/registration. Registration is open to executives at P/C and life insurance companies, reinsurance companies, intermediaries and other related service organizations, including: CEOs; presidents; public and government affairs executives; insurance trade association leaders; regulators; and state and federal government representatives. Interviews with I.I.I. spokespeople and panelists are available upon request.
From the I.I.I. Daily: Our most popular content, December 28 to January 3
Here are the 5 most clicked on articles from this week’s I.I.I. Daily newsletter.
- These 30 vehicles are the safest 2019 models, car-safety group IIHS says, USA Today
- Chamber’s list of 2018’s ‘Top 10 Most Ridiculous Lawsuits’, Insurance Journal
- How insurance drives economic growth, Insurance Information Institute
- Auto insurance expenditures, by state, I.I.I. Insurance Fact Book
- Ten most significant insurance coverage decisions of 2018, Coverage Opinions
To subscribe to the I.I.I. Daily email daily@iii.org.