AI, Data, and the Future of Risk Management
With Rose Hall, SVP, Head of Innovation, Americas, AXA XL
Published: 23 January 2024
Rose Hall unveils AXA XL’s visionary approach to risk management as they undergo the dynamic shift from claim payer to partner in risk management. Fuelled by AI, data-driven insights, and cutting-edge “predict and prevent” strategies, Rose invites us on a risk mitigation journey in which predict and prevent isn’t just a product, it’s a mindset.
How is the “predict and prevent” approach reshaping the insurance sector?
We are shifting the insurance paradigm from being simply a payer-of-claims to being a partner-in-risk. Given the rising cost of risk, and the increase in emerging risks today, it’s imperative that we work together with our clients to help reduce, manage, and mitigate risk wherever possible.
What strategies can insurers employ to harness data’s full potential for predictive and preventive measures?
The insurance industry has a tremendous amount of data, and we’re just learning how to harness that data for the benefit of our businesses and our clients’. With the growing unpredictability of emerging risks, it will soon no longer be enough to rely on historical data to forecast future performance. In this digital era, the insurance industry will have to learn to build predictive models, relying on AI and other means, to supplement our underwriting and pricing – in this way we can make sure we are there for the clients when they need us most.
How is collaboration evolving to reshape the future of data-driven risk mitigation for AXA XL?
Our risk engineers and consultants have always relied on their experience, combined with the data from the vast universe of clients and industries we serve, in order to assess risk and provide feedback to our clients on how they can improve their risk profile, and therefore their businesses. In this new age of enhanced data analytics, we are able to achieve even greater insights, to be used to develop more tailored underwriting approaches, and provide more meaningful and actionable feedback to our clients.
“I see predict and prevent as a philosophy”
In what timeline do you foresee “predict and prevent” becoming a central insurance product?
I see predict and prevent as more of a philosophy and a culture than an insurance product, per se. It’s the core of the service we provide to our clients at AXA XL by being their partner in risk. We have a variety of solutions in our AXA XL Ecosystem that we’ve partnered with to provide our clients a discount on risk-reducing technologies and services. In this way we are promoting risk management best practices and encouraging technology adoption, both elements that can help our clients prevent loss, even (and especially) when the risk is not something we insure.