Reflecting on 30 years of Pro Global’s journey in the re/insurance sector, CEO Steve Lewis highlights the company’s evolution and how it parallels the broader shifts that have defined the industry’s growth, adaptation, and innovation. The article emphasizes the need for agility, technological integration, and a balanced focus on innovation and tradition.
Three decades ago, the re/insurance landscape was vastly different from what it is today. The industry enjoyed comfortable margins, technological advancement was slow, underwriting was more art than science, and regulation was less developed. Furthermore, the industry was predominantly made up of “grey men in suits,” representing a sleepy and homogeneous industry.
However, since the early 1990s, the re/insurance industry has faced significant challenges brought on by emerging competition. This has forced the industry to adapt and embrace innovation while preserving its traditions.
One of the most significant shifts in the industry occurred with the advent of the digital era in the mid-1990s. Technology began reshaping every facet of the re/insurance sector, from basic spreadsheet calculations to the emergence of the internet. Email revolutionized communication, digital documentation replaced paper files, and e-commerce extended to insurance purchasing.
Another key change in the industry has been the rise of “ecosystem” thinking, which has redefined industry collaboration. Recognizing that no single entity can master every aspect of the re/insurance landscape, partnerships and collaborations have become essential drivers of innovation. This approach accelerates the creation of comprehensive solutions and enhances client experiences.
The re/insurance sector’s trajectory over the next three decades will be shaped by monumental events that have already set the course for change. Events like 9/11, the financial crisis of 2008/2009, the global pandemic, and ongoing geopolitical conflicts will continue to cast a long shadow over the industry. These events have redefined risk and highlighted the need for nimble adaptation in an ever-fluid environment.
One of the most significant opportunities for transformation in the re/insurance sector lies in the adoption of artificial intelligence (AI). AI has the potential to redefine risk assessment, decision-making, and overall performance in the industry. As technology continues to advance, the sector must navigate these seismic shifts, capitalizing on innovation to mitigate risks, seize opportunities, and navigate a landscape where uncertainty itself is a risk to be managed.
However, embracing change comes with its own set of challenges, as the concept of unintended consequences reminds us of the complexity inherent in transformation. While technology yields positive outcomes, it also introduces uncertainties and risks that require careful consideration and responsible progress.
Looking ahead, the re/insurance industry will be shaped by geographic expansion, technology integration, and sustainable practices. AI and data will drive decisions, while systemic risks like climate change will reshape underwriting practices. The industry must continue to refine its focus on regulatory compliance, fairness, and corporate ethics.
Furthermore, the industry must also recognize the inseparable relationship between corporate culture and diversity and inclusion initiatives. A diverse and inclusive workforce drives innovation and decision-making, and the sector is taking positive steps to cultivate an environment that values individuals from all backgrounds.
Despite some progress, the insurance industry has been slow to innovate beyond product distribution, particularly in the core insurance product itself. However, the emergence of transformative technologies such as digitization, data availability, automation tools, and AI has the potential to reshape the industry’s landscape. These technologies offer an avenue for unlocking untapped value and redefining the sector’s fundamental processes and value proposition.
In this dynamic landscape, embracing innovation, fostering diversity, and staying resilient are paramount. The next 30 years promise to be a thrilling ride, where AI redefines our understanding of intelligence, data drives decisions, and human innovation shapes the future of re/insurance. As the industry moves forward, it must hold on to the spirit of innovation and embrace the remarkable voyage that lies ahead.