Chubb experimenting with AI, preparing for rollout ‘at scale’
Chubb experimenting with AI, preparing for rollout ‘at scale’ | Insurance Business New Zealand
Insurance News
Chubb experimenting with AI, preparing for rollout ‘at scale’
CEO also adds colour on reinsurance and Q1 results
Insurance News
By
Gia Snape
Chubb is experimenting with various uses of artificial intelligence (AI) across its business and is preparing to roll out AI tools at scale, according to CEO Evan Greenberg.
“We’ve been experimenting in the use of various forms of AI, against different areas of our business, depending on the opportunity or problem or enhancement we’re trying to address,” Greenberg said during the global insurer’s first-quarter earnings call with investors.
The uses range from underwriting to claims, marketing, analytics, customer interface, and customer service.
“We have a variety of use cases that have proven themselves out and we continue to iterate with them. We have a lot of data and have an ability to enhance that data with external data,” Greenberg continued.
“It’s not going to replace our highest skilled knowledge workers. It won’t do that for quite a while, but it certainly enhances their capabilities. We’re in the dawn of a period where we use these tools at scale.”
New technology centre
Last December, Chubb announced it would launch a new technology services center in Thessaloniki, Greece in early 2023. It joins other Chubb development centres in the US, India, and Mexico.
The hub is expected to deliver innovative technologies to “enhance customer experience, increase efficiency, and accelerate the company’s digital transformation,” a news release said.
Tech experts will head initiatives in intelligent process automation, machine learning, cloud, and data analytics, as well as cybersecurity and systems modernisation at the Thessaloniki site. Chubb will also partner with local technology firms to bolster the hub’s capabilities.
Holding steady on reinsurance programs
Separately, Greenberg said that the Chubb would not be making significant changes to its reinsurance programs despite rising renewal costs.
“Our retentions have not changed in any material way. We don’t buy reinsurance for earnings protection,” Greenberg said.
“We buy it for more for balance sheet protection and, depending on the line of business, volatility, and that that’s been a steady policy of ours. We maintain it regardless of cycle.”
Cat losses offset gains from rate increases
Chubb reported its net income dipped in Q1 2023, at US$1.89 billion compared to US$1.95 billion the year before, as catastrophe losses dented its earnings from rate increases and premium growth.
The global insurer posted strong double-digit core operating earnings and double-digit premium revenue growth globally, to begin the year on “good momentum,” its CEO said.
Total P&C combined ratio in the first quarter worsened to 86.3% verses 84.3% in the previous year.
Asked whether rate increases would continue fueling growth, the CEO said he expected the pattern of growth to continue across most lines of business.
“Looking forward, we are confident in our ability to continue growing revenue and operating earnings,” the CEO said.
Add to that our business model, financial strength, stability and liquidity, and I believe you have in Chubb both the reassurance of safety and the attractive prospects of a long-term growth company.”
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