In the seventh episode of MGAA Conversations, Mike Keating spoke with Richard Garry, Chief Commercial Officer of Gamma Risk, about how technology is enhancing data-driven decision-making in the insurance industry, the impact of climate change on weather-related risk modelling, and the evolving regulatory landscape.
When discussing the influx of new technology in the insurance market, Richard noted that the constant “chatter” about new technologies, especially AI, can sometimes distract businesses. He pointed out that companies might feel pressured to adopt new tools without fully understanding their value.
Richard emphasized that technology is primarily an enabler, providing access to data that supports decision-making. In Gamma’s case, their APIs are crucial for delivering this data. He highlighted that the technology’s true value lies in the quality and reliability of the data it provides. Ensuring that technology and data are consistent and reliable is essential for user trust. Richard cautioned against relying on technology with a “black box” approach, stressing that transparency about what’s “under the hood” is critical.
Adapting to the Regulatory Landscape
Richard addressed the challenges posed by evolving regulations on tech-based businesses like Gamma. While there are concerns that excessive regulation could stifle innovation, he acknowledged the role of regulators in maintaining a consistent operating framework. Richard noted that Gamma, being a relatively small tech company, can adapt quickly to new developments and integrate new technologies. However, he warned that new technologies, such as AI, could present challenges for users, particularly regarding data and personal information. For some clients, new tech integrations might breach internal rules or lack the necessary infrastructure.
The Impact of Climate Change on Risk Modelling
Regarding flood risk assessment, Richard suggested that while existing models are effective and have served well, the increasing volatility in weather patterns across the UK and Republic of Ireland (ROI) may necessitate a review. He proposed that the insurance industry might consider following the example of large banks and mortgage lenders, who are updating their climate change models to better prepare for future conditions.
📻How to listen
You can listen to our podcast on Podbean, Apple and Spotify Podcasts.
💻How to watch
You can watch the whole podcast on our MGAA You Tube channel.
📱Keep updated with the latest episode
Tune in for our latest podcast episodes, scheduled for release every third Monday of the month. We highly value your feedback and eagerly await your suggestions for future topics. Feel free to share your thoughts with us here. And remember to subscribe to MGAA Conversations on your favourite platform to ensure you never miss an episode!
To find out about upcoming episodes and events, follow us on LinkedIn.
