'Too much technology can be a problem': Davies deputy CEO

‘Too much technology can be a problem’: Davies deputy CEO | Insurance Business Canada

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‘Too much technology can be a problem’: Davies deputy CEO

Exec talks about global firm’s next big challenge

Claims processing has benefitted tremendously from the integration of artificial intelligence (AI), including generative AI (gen AI). These technologies are revolutionizing the way insurance claims are processed, assessed, and managed, delivering unprecedented efficiency, accuracy, and, ultimately, customer satisfaction.

But how can the insurance industry balance the rapid penetration of AI with human judgment and connection?

“I’ve already seen companies that aren’t more methodical and intentional about finding that balance and get themselves in trouble sometimes,” said Dhara Patel (pictured), president and deputy CEO of Davies Group’s North American business.

“Too much technology can be a problem because claims and insurance services still have a very human element to it.”

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Balancing technology, integration, and growth

Speaking to Insurance Business, Patel admitted one of the biggest challenges to driving further growth in North America was striking the balance between technology and growth, including mergers & acquisitions (M&A).

As president and deputy CEO, Patel will lead Davies’ North American operations and sales teams and ensure that acquired firms are smoothly integrated into the organization. The role was created to facilitate Davies’ greater focus on the US and Canadian markets and follows a period of significant growth for the specialist professional services firm.

“We want to move fast so we can realize savings and get great results for our clients. But we also want to be very intentional about not introducing too many changes at one time throughout Davies, especially with all the acquisitions that we’re making,” Patel said.

“Our challenge is going to be – and it’s directly related to my appointment – making sure our exceptional service does not get impacted by our growth and integration.”

According to Davies, US dollar revenues now make up half of its global business. Since entering the market nearly five years ago, its North American arm has grown to around 2,200 employees. In November last year, it acquired four claims and services businesses from Brown & Brown, where Patel had held multiple senior executive leadership positions before joining Davies.

‘Nothing off the table’ when it comes to Gen AI

Despite her measured approach, Patel is enthusiastic about the potential of generative AI and similar technologies to enhance the claims process.

“This is a large focus for us, and we have a dedicated team focused on identifying Gen AI opportunities across all our services and business areas, with nothing off the table,” she said.

Some of Davies’ key projects include an AI and machine learning tool that uncovers hidden subrogation opportunities in property claims.

“Since its implementation 18 months ago, we’ve seen a 45% increase in subrogation identification and recoveries, which significantly benefits our insurance carrier clients,” Patel shared.

“We’re also targeting other areas like internal and external fraud detection, using AI to identify hidden fraud – a major issue in insurance. We’re reviewing every process in our business to find AI opportunities, and a dedicated committee is driving these initiatives.”

What’s next for Davies in North America?

M&A will continue to play a key role in Davies’ expansion in this market. Patel revealed that the UK-based firm is “exploring a variety of opportunities” for acquisitions, targeting regional providers in the TPA (third-party administrator) space and expanding its workers’ comp services to a national level.

“While we’ve been more regional in the past, our goal is to become a fully national provider,” Patel said. “Beyond workers’ comp, our focus is on technology and innovation in claims services. Innovation isn’t just about technology – it’s about introducing new services and improving the customer experience.”

What are your thoughts on Davies’ strategy for North America and its focus on generative AI technology? Please share your comments below.