The roadmap forward
The Canadian economy is set on a course to expand in new ways by unlocking new trade routes and the infrastructure required to support it. With recent shifts in the geopolitical landscape, Canada is broadening its trade partnerships in Europe and Asia.
As the Canadian Government works toward building an economic and trade environment that responds globally, and to put in place the infrastructure that supports more trade East and West, the insurance industry is uniquely positioned to respond with the expertise and products needed to support the ambition of Canadian businesses.
Digital infrastructure build
The large commercial insurance landscape in Canada is evolving, particularly in artificial intelligence (AI) and data centres. Focus is on end-to-end data centre construction and infrastructure creation, leveraging Canada’s energy sources to their best advantage. Canada is well positioned to capitalize on the AI revolution and the digital transformation.
Right now, that digital transformation in Canada touches every facet of the business. The change of pace is huge, but so is the opportunity. The resources needed to address the burgeoning infrastructure needed to drive the AI revolution is in abundance – Canada has access to clean, reliable energy, large available land mass, access to cooling and water supplies, key ingredients needed to establish and operate this digital infrastructure. At AXA XL, we are mobilizing resources to ensure that our products and services keep pace with the demand.
There are a multitude of operational risk profiles to consider. That creates a challenge from the insurance side. Capacity is not infinite, so smart planning is essential. As insurers we want to deploy our capacity smartly, making sure that we support clients and customers on the entire project lifecycle.
Our customers across all industries are focused on what this means for them. They need more than just information on how to adopt and use technology – they need end-to-end lifecycle support and expertise. We have set up our business in recent years to centre around client engagement and need. By employing digital tools, and through our own organizational transformation, we can better respond to clients in a profound way. Our team looks at client needs wholistically. Through smart use of technology, coupled with human experience and oversight, we can elevate both our own support capabilities as well as enhance our client’s knowledge.
Meeting data challenges
Still, digital transformation often goes hand in hand with risk. The interconnectivity that a cloud system generates brings its own risks. As mentioned in our previous article - Canada’s Commercial Market: A Strong Focus on Relationships- some of those risks are yet to be discovered. Some risks are apparent, though. The interconnectedness of systems means that vulnerabilities lie within any cyber security weaknesses of each entity along the data chain. Also, errors introduced by AI on a small scale can compound. Another consideration – as AI evolves faster than its supporting infrastructure, creates a business challenge as organizations rush to stay ahead of risks.
We advise organizations to face such challenges, present and future, by maintaining good governance, sound organizational structure, and tight controls around their risk mitigation and risk management processes.
Ironically, one of the ways we assist clients and customers in that regard is by employing AI to help us engage more deliberately and purposefully with our clients. AI allows us to glean and analyse the data that most impacts each client, and we share that information with clients. We also share experiences, delivering beyond the policy to a level that has not been seen in the industry’s long history. AI and digital transformation affords us the ability to drill down into the data that is relevant to each client so that they get the most accurate advice and protection they need.
That frees us up to create more personal interactions with clients and customers, and share information in a more open, transparent way. We launched our multinational client portal last year, giving clients real-time access to their policies, their risk information, and information on where their global placement and structure is in its lifecycle. This allows them to understand the process better, which makes for better engagement with us and better local service, and better decision making for them.
Right now, that digital transformation in Canada touches every facet of the business. The change of pace is huge, but so is the opportunity.
