2024 Executive Outlook | Philomena Comerford, Baird MacGregor

Philomena Comerford, president, CEO, Baird MacGregor

Technology will continue to change the way we work, presenting both productivity opportunities and oversight challenges for our industry and our workforce.

Artificial intelligence (AI) has the potential to vastly improve our industry’s efficiency, allowing us to better integrate our business processes. But to guard against the threat of inherent bias and/or misinformation influencing selection, underwriting and risk-evaluation decisions, it will be necessary to govern AI’s use and monitor the quality of the underlying source data it draws.

Fact-based, ‘fenced data’ meticulously gathered directly from any risk group(s) will be far more reliable in deploying AI capabilities than scraping the far reaches of the internet for source data. The risk in relying on suspect data from the internet is that such information may be contaminated by collective inherent bias, setting the stage for foundational flaws in analysis and decision-making.

Ethically responsible deployment of AI, overseen by skilled industry professionals, could and should free up employees from laborious analytical tasks and help clear up backlogged work that can be performed more efficiently using AI tools. As these AI tools prove their value over time, underwriting efficiencies could improve service levels and reduce burnout of underwriters and their support staff.

To be prepared to capitalize on AI technology, quality control around data management will be crucial because recording errors will skew analysis. Brokers are ultimately responsible to the consumer for the advice they give and cannot blame the ‘machine’ for erroneous AI outcomes. Insurers will need to watch that AI-based underwriting decisions do not unwittingly result in unfair treatment of the consumer. We as an industry will be responsible for supervising AI’s use and customer outcomes.

As for where we work, a creative approach using technology to empower employees with technology that underpins more flexible work arrangements will continue to be an elixir for a workforce craving work-life balance.

For employers, it will continue to be an art navigating the balance between increased productivity by arming employees with more powerful technology and the importance of ‘in office’ mentoring, training, collaboration and supporting interpersonal relationships.

The work world has changed. Expecting the workforce to work exactly as they did before the pandemic is a bit like wanting to return to having our milk delivered by horse and cart.