How technology supports more inclusive insurance businesses

“The Times They Are a-Changin,’” Bob Dylan famously wrote in the song further popularized by the folk group Peter, Paul and Mary during the 1960s.

The same can be said about the demographic composition of the insurance property & casualty and construction sectors. Industries that were once dominated by men are beginning to see more women entering the space.

And that is a very good thing.

While the Building and Construction Trades Council in Greater New York City indicates that 4% of women comprise the construction union’s workforce, more anecdotal evidence suggests this trend will continue to grow and intensify. From project management and architectural engineering, to analytics and finance, women are excelling in critical roles while becoming more conversant in digital technologies such as wearables and artificial intelligence.

Progress and growth

These two forces — the growing proportion of women in insurance and construction and the rise of digital technologies — reflect and reinforce a stone-cold reality: As automation and more advanced forms of artificial intelligence profoundly shape these industries, it’s critical to tap into all groups within the U.S. workforce. Notably, women. Progress and growth depend on these industries confronting long-held biases and open the floodgates to the many talented women who can help to transform the future of insurance.

New tech boosts diversity initiatives

It’s no secret that the rise and pervasiveness of new technologies necessitate a degree of re-skilling. Businesses also must source new types of talent to ensure they are driving operational efficiencies, safety, compliance, and overall health and wellness. As automation pervades every aspect of the insurance and construction industries, organizations are seeking a range of diverse talent inclusive of different genders and ethnicities.

As such, the emergence of these technologies represents an exciting opportunity to not only drive more awareness around the need for greater diversity and inclusion within our sectors, but tap into the full pool of talent to fill the jobs of the future.

Now, this is a great development, and something that will undoubtedly benefit our industries and the hundreds of thousands of people that continue to enter the field. However, one thing that can’t be overlooked, and necessitates the same level of patience, understanding, tolerance, and determination fundamental to diversity and inclusion (D&I) initiatives, is preparing and responding to the intended and unintended effects of AI.

Patience, optimism and understanding

Skeptics have made the argument that technology is here to replace us. But I’m confident it’s only here to help. It can’t be used as a replacement for human intelligence. We’ll always need a person behind the technology to help manage it. It will take time and patience for full technology adoption.

From an insurance standpoint, automation, advanced data analytics, and machine learning carry a host of advantages. These technologies can help to predict how climate change, geopolitical developments and societal instability can identify and impact new types of property & casualty risks, improve customer on-boarding, and deliver more personalized and seamless customer experiences. At its core, technology’s goal is to create better value for clients and safer environments for workers. There will always be a need for the human touch.

In each industry, companies need to see the true value that new technology holds before adopting and implementing it. For instance, companies sit on a voluminous amount of structured and unstructured data. If we can’t understand how to use data in smart ways, how can we expect change and improvement? Thankfully, in recent years, risk managers and other property & casualty professionals have slowly become open to it. There’s currently a mix of traditional practices and new ones where new tools have woven themselves into legacy practices. Technology needs to continue proving itself to create confidence in workers, which, by extension, will help to drive further adoption.

Additionally, new technology helps to reduce losses and workers’ compensation claims through a variety of safety benefits. This also reduces premium and policy pricing. The frequency and severity of claims drastically decline. It’s no secret that even minimal job-site injuries can impact bottom line premiums — this keeps them competitive in the marketplace. Technology aiding in loss prevention can serve as a proactive solution for a better insurance rate. Beyond the efficiency advantages, the potential for cost savings are immense.

Where do we go from here?

Facilitating an environment of open-mindedness and a willingness to welcome new things is essential in elevating the property & casualty and construction industries. As a workforce, we need to be more inclusive by bringing in new talent, skills, insights, and backgrounds to offer integrate new perspectives, build better products, and address the widening gap of job vacancies wrought by new technologies. It takes many people to champion the need for change — with the intent of enriching work and customer experiences with folks from a range of diverse backgrounds and skill sets. People need to cultivate leaders that set a good example and encourage inclusive behavior across many platforms to achieve true inclusion.

As a new generation steps into the workforce, I’m confident we will continue to see an influx of open-minded professionals who are ready to embrace digital transformation. Tools such as artificial intelligence will continue to help reduce costs and improve operations. The same open mindset that opens the gates of technology adoption is needed for greater inclusion and diversity. How we lead the property & casualty industry today will affect what the industry looks like a decade from today. We need to look forward instead of staying focused on how things have been done in the past.

We’re on our way to building great things together. There will continue to be barriers; yet in the quest for furthering technology adoption and inclusion, we need to prove over and over again that this is the best way to manage risk and create a safer, more diverse workforce.

Lisa-Ann Marchesi (lisaann.marchesi@nfp.com) brings more than 25 years of insurance experience to the construction and commercial insurance industries. She is a member of the Board of Directors for the Women Builders Council of New York City and a vice president of property & casualty at NFP. These opinions are the author’s own.

See also:

• Forbes: 13 best P&C employers for diversity in 2019
• Top insurance technology issues nagging at industry leaders
• 6 reasons digital transformation is the future of insurance

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