The Big Shift In Risk Management

Pete Miller, CEO of the Institutes, weighed in on how technology and a changing commercial insurance environment are shaping the risk management and underwriting process for the better.

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One of the key words in Miller’s assessment is “predict.” By using the emerging technological tools available, whether it be artificial intelligence, machine learning, and/or high-level analytics, Miller believes that the goal is no longer simply to make clients whole after the fact, but to use all the available data to anticipate and address events that are likely to have negative outcomes in advance so as to reduce risk further if not eliminate it entirely before the event occurs in the first place. 

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Some of the specific technology that Miller highlights includes a device that can monitor and react to variance spikes in electrical currents that occur on a microscopic scale but can quickly turn into major electrical and/or fire related problems on a much larger scale. The implications of such a device on homeowners insurance as well as commercial facilities coverage are considerable to say the least, as one example. 

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You can find this piece here.