Meet insurance industry influencer Dr. Henna Karna
The current managing director and chief data officer for AXA XL believes data and digital tools will empower a 'new nucleus' for insurers.
Insurance has always been referred to as a data-driven industry, even if much of the industry has thus far failed to achieve a level of data mastery on an individual business basis that would keep insurers on par with financial services firms, for example. An inability to handle the volume, velocity and variety presented by big data, illustrated for many insurers the need for more talent and more technology focused around harnessing the value of the industry’s data assets.
Today’s InsurTech movement has put data in an even brighter spotlight, and insurers are now moving to hire data scientists and invest in solutions that will rapidly boost data quality, clarify and complete paused or failed data conversions, and improve levels of data mastery.
Many ways to solve a problem
Dr. Henna Karna became a chief data officer in the insurance industry after earning a doctorate and a master’s degree in mathematical sciences, not necessarily an intuitive move, but one that Karna argues could have been predicted all along.
“The most viable skill mathematics trains our brains on is that there are many, many ways to solve a problem and that in fact knowing all your variables and what you are aiming to equate, or balance, is of critical importance,” Karna said in a recent interview. “Insurance is actually quite a quantitatively-inclined industry. From its core, it is data-driven, analytically-perceptive, and frankly, the intuition-based decisions we are known for are nothing but mathematical algorithms. The industry of Insurance takes the intersection of my love for mathematics with my passion to solve complex problems and adds my drive to make the world a better place — all into one vision.”
While Karna’s career experience in the areas of cyber (security, cryptology, cryptoanalysis, etc.), actuarial science and analytics are all helpful in her current position as managing director and chief data officer for AXA XL, it is her background in digital strategy that she relies on most often today.
“To me, digital strategy is what we need to evolve legacy industries in a bold way so that they do not lose their meaning,” Karna said. “Decades ago, we read about IBM, GE, Ford, etc., and later, we read about Amazon, Google, and Facebook. Now, there are strategic shifts happening in business models across industries from Uber, AirBNB, etc. The change is already here, and our industry must leverage a digital footprint, understand digital products, and morph quickly, and cautiously — but with courage.”
For Karna, this doesn’t mean picking a few new shiny objects off the shelf.
Enabling business evolution
“When I say digital, I do not mean gadgets and mobile apps,” Karna said. “I mean a platform strategy, foundational change, where our customer touchpoints go from ‘events based’ to a ‘24/7, bi-directional’ model. That is where the art and science of a digital strategy will up end our industry for the better.”
When considering digital strategy, the way the insurance industry acquires, consumes and utilizes data can’t be overlooked. Traditionally, the insurance industry has handled mostly structured data from a limited number of inputs or sources. Even third-party data providers delivered data in a predictable way and at a significant, but predictable, cost.
Today, there are many InsurTech startups challenging the traditional model.
“There’s no question that the convergence of vastly expanded access to data and the rise in computing power to capture and analyze this data will lead to a period of much sharper decision-making throughout the insurance industry,” said Karna. “…a growing number of insurers will look to refine and tailor coverages closer to the customer/buyer needs, to develop more frictionless, and hence, efficient ways to reach and interact with buyers — moving away from only transactional relationships.”
For the executive teams of midsize insurance companies struggling to turn what could feel like data overload into a competitive advantage, Karna recommends strictly prioritizing in order to stay on par with new digital-first competitors.
“There is always a chance that a firm tries too many things or hits an ‘analysis paralysis’ state where there are so many distributed bets that focus lags and momentum dissipates,” Karna said. “The advice that I often take is to ensure focus. Insurers can decide what is the competitive advantage they want to bet on, what will they be leading in, and truly focus on that. With that in mind, I do believe that for an insurer to think strategically about the organization’s most important asset — its data — is going to be game-changing. The first firms who can resolve the difficult questions like ‘How do we invest in data analytics/?’, ‘What is data versus IT?’, and ‘Who owns it?’, and then quickly move into the actual problems to solve around the strategic value of the data they already have, will be leagues ahead. The first firms who can use their data as a power to move the business forward (know where their data is located throughout the enterprise, manage its accuracy, security and user accessibility) are the firms who will become the new nucleus of our industry.”
Jennifer Overhulse (jen@stnickmedia.com) is a member of IASA and the principal owner of St. Nick Media Services.
This piece published first in the Spring 2019 issue of “The Interpreter,” which is produced by IASA, and is reproduced here with permission from IASA, a nonprofit, education association that strives to enhance the knowledge of insurance professionals, and participants from similar organizations closely allied with the insurance industry by facilitating the exchange of ideas and information.
IASA 2019 happens June 2-5 at the Phoenix Convention Center.
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