Executive Insights: A conversation with CSAA's Thomas Troy
Insurers should be focusing on bringing new talent into the industry, climate change and new product development.
Thomas Troy has been the president and chief executive officer of Walnut Creek, Calif.-based CSAA Insurance Group, an AAA insurer, since April 2019. Our conversation covered a wide range of topics, including technology, changes within the industry, and the future of insurance. (Responses were edited for space.)
What are your priorities, and how do they complement your vision for the company?
Troy: We’re looking to diversify our book of business across several metrics. One is geography – we’re currently in 23 states, and we want a more diversified portfolio geographically, and this includes growing outside of California.
In terms of product diversification, we want to serve more homes outside of California, and we’re also looking at commercial auto. Another area of growth is mobility, and that is part of our long-term vision. The sharing economy, rideshare and new delivery opportunities have arisen as a result of the pandemic.
How has the coronavirus affected CSAA and what you had planned to accomplish in your first year?
Troy: It hasn’t changed our long-term goals, only the short-term. We had to pivot and let people work from home. Early in the process, we were experimenting with more people working from home and moved to 100% work from home…We think there will be an opportunity for more employees to work from home than before the pandemic.
We didn’t give up on any of our initiatives — growth, diversification, expanding products and providing the best customer service possible were still the focus. There was an opportunity to take advantage of some work we’d been doing over the last several years with virtual claims. Before the pandemic, it was more common for customers to not submit claims virtually on their own and they wanted a claims adjuster. With the pandemic, customers understood that they couldn’t do that and wanted to use the tools available, which can be very effective and work well. We don’t see a reason to go back to the old way of doing things. Our ability to settle claims faster indicates that this may be a permanent toolset we want to use in every case.
Where do you see the most opportunity for the insurance industry?
Troy: The pandemic has allowed us to accelerate the adoption of technology. For fraud, we need more modern fraud detection tools with the adoption of technology. On the employee side, you need talented people who know technology. We have to compete for people who have the skillsets to help us develop in that area. We need to tell the right story about how the insurance industry has some really interesting technology jobs.
A new breed of products might grow as a result of the sharing economy. As the pandemic tightened its grip on the economy, we saw rideshare go down while food delivery and product delivery increased. The insurance implications of that have highlighted some shortcomings in products related to that area. The industry needs to do a better job of thinking about how we can expand our products and services to cover this new type of work.
What do you see as the top three issues insurers should be focusing on now?
Troy: Bringing new talent and a more diverse set of individuals into the industry. We could do more to tell a positive story regarding the types of careers available in the industry. We need to tell the story of how to have a robust and fulling career in an honorable and noble profession.
Another one is just being innovative. The insurance industry is one of the last industries that hasn’t gone through a massive disruption, and we have been hanging onto the old ways for too long. InsurTechs are looking at disrupting the insurance business, and we need to lean into the innovation and support it, invest in it and participate in the process as opposed to having it done to us.
Sustainability and climate change need some focus from the insurance industry. No one has figured out how to predict weather and wildfires with tremendous accuracy. More could be done to support an environment that isn’t contributing to the severity of increased weather events in the future.
What do you think are some of the biggest misconceptions about the insurance industry?
Troy: People think the industry is boring. It is a very noble vocation. You make a promise, not ever knowing if you will have to fulfill it. If you do it right – you are there when the policyholder needs your help. When a house burns down, we can do an excellent job of serving a customer, and this is a very noble act.
What was the most valuable piece of advice anyone has ever given to you?
Troy: My dad told me to slow down, and he said it in the context of when I was in a hurry to get something done or get onto the next level of my life. In going too fast, we miss some of the context, and that can weaken our ability to be successful in the future.
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