Stefano Bison is the Group Head of Business Development, Partnerships & Innovation for Generali. He joined the group 10 years ago, and prior to that, he worked in Investment Banking and Strategy Consulting, across London and Milan. FintechOS and Insurtech Insights find out more.
The Generali innovation team has a collective focus and acts as the control tower for the Group on the topics of innovation, new businesses and new technologies. Rather than creating innovation themselves, which still happens in some cases, the team’s main role is to monitor and facilitate the successful “landing” of innovation across the various parts of our organisation: we need to identify, control, facilitate and accompany the lending, minimising risks. They also oversee a US$250 million Insurtech venture capital investment initiative.
Where in the insurance value chain do you think the need for innovation is most urgent?
In my opinion, one of the most urgent areas that requires attention is underwriting. The emergence of new risks in the insurance and protection spaces, coupled with the existence of an enormous insurance protection gap (recent statistics estimating it at 2TN$ worldwide), highlight the need for a different approach. The insurance sector needs to do more to prepare for these risks, calling for fresh perspectives and, most likely, collaboration with external actors.
Factors such as the rise of new customer segments, like the elderly becoming a major customer group in countries such as Italy, further emphasise the need to view risks differently. We are looking for more data in order to confidently price these risks. To address this challenge, we must leverage new data sources and blend different expertise within our teams. By integrating data scientists, underwriters, and actuaries, and by leveraging IoT, we can adopt a forward-looking perspective and treat data in innovative ways. This may even involve the use of synthetic data to accurately price these new risks, now finally becoming a possibility
Another aspect that requires attention is the shift from the current manual and expertise-based underwriting, especially in Corporate and Commercial sectors. The underwriting landscape is rapidly changing, and the emergence of new Large Language Models (LLMs), and the -overtalked- Generative AI, present both opportunities and threats. These technologies have the potential to massively transform the underwriting experience and landscape.
In summary, the need for innovation in underwriting arises from various angles, including data utilisation, automation, and the reinvention of underwriters’ skill sets (and culture!). While other areas of the value chain also require attention, underwriting stands out, in my personal opinion, as the most urgent and impactful area for investment and innovation. Moreover, while claims and sales have seen a massive amount of innovations in the recent years (such as claims automation and image processing), underwriting has seen relatively little progress. The combination of new technologies and emerging risks places underwriting in the spotlight, demanding immediate attention from insurance leaders.
In terms of the most important business goals that innovation supports, what are the goals that insurers should be aiming towards?
From my perspective, as the individual responsible for leading innovation efforts and business development, the focus is on ensuring the long-term sustainability of the Group business itself. This sustainability goes beyond the traditional compliance-focused sustainability efforts that all large corporations are already embarking with, and targets a business model that can thrive for another 192 years (Generali was founded in 1831), benefiting all stakeholders, including customers and employees.
To achieve this, it is crucial to align with changing market and customer needs while remaining a leader in the industry. This serves as our “North Star” for driving innovation and making an impact – its implications can be multifaceted and may affect different parts of the insurance Value Chain.
For marketers, capturing new customer segments, such as millennials, becomes crucial as they will soon become the dominant customer group in terms of numbers. Innovations in Marketing and Sales need to ensure relevance and a multichannel approach to cater to these evolving demographics. Claims professionals may instead focus on cost-cutting measures and improving efficiency, aiming to achieve more with fewer resources.
Overall, the overarching goal is to enable our Group to navigate any upcoming challenges, whether they involve new customers, emerging risks, or disruptive technologies. The approach involves studying, implementing, and scaling up solutions that make sense within the context of the business, guaranteeing its perennial survival.
To what extent is technology an enabler or a barrier to progress being made?
As in all sectors and companies, technology plays a dual, conflicting role, as both an enabler and a potential barrier to progress.
On one hand, new technologies enable us to achieve everything we’ve discussed. Consider the impact of new risks and the possibility to face them leveraging Internet of Things (IoT), new data sources and the relatively new LLMs and Artificial Intelligence techniques.
This allows us to gain unique insights, sometimes even at the edge of operations. Without this technological capability, it would be incredibly challenging, in not at all impossible, to stay customer-centric and have a real impact, especially in such a rapidly changing market. If we attempt to approach new business models and cover emerging risks with traditional, waterfall and historical-data based approaches used in the past two centuries, we won’t succeed. Market changes are happening so quickly that by the time we react, implement, and adapt, the landscape has already shifted again.
However, technology can also act as a significant showstopper, particularly when it comes to legacy systems. Legacy systems present one of the main obstacles to innovation projects, including initiatives like embedded insurance. These systems are complex, outdated, costly to manage, and intrinsically resistant to change as “rooted” in the ground (that’s ultimately the significance of “legacy”). Changing them poses significant risks, making their responsibles and stakeholders hesitant to touch them, and rightly so. Unless there are bold and courageous leaders who are willing to tackle these challenges head-on, legacy systems will become stagnant and slow down or even block innovation, across the whole value chain.
This might eventually lead to the creation of additional layers and middleware applications that run on top of such -outdated- systems. These workarounds further stratify operations and are often ill-suited for the modern demands of embedded insurance, just to continue on the same line of example. A system built for a completely different era cannot effectively support the current and future needs of our industry.
So, in summary, technology represents both the greatest opportunity we have but is also a challenge. We must embrace technology, particularly digitalisation and AI, as they hold immense potential. However, we must also address the challenges posed by legacy systems to fully leverage the benefits of technological advancements.
In terms of overcoming those technology barriers, how can companies move forward when they’re stuck with legacy systems and need to transition to digital systems and the latest technologies?
Overcoming technology barriers, particularly when dealing with legacy systems, requires a thoughtful approach and some bold strategic actions. Here are some strategies and elements that companies can apply to facilitate the transition and move forward:
Bold leadership: Successful transformation starts with strong leadership that is willing to challenge the status quo and advocate for change. A leader who understands the importance of technology and innovation can inspire the organisation to embrace the necessary changes.
Sponsorship and support: Gaining sponsorship and support from top management and the board is crucial for driving changes in legacy systems. Transformations of this magnitude often take years to fully materialise, and consistent backing from leadership is necessary to sustain momentum and overcome obstacles.
Holistic assessment: Begin by conducting a comprehensive assessment of the current technology landscape, including legacy systems, data infrastructure, and integration capabilities. This assessment will help identify areas of improvement and potential bottlenecks.
Incremental approach: Rather than attempting a full-scale overhaul of the entire technology infrastructure, it is often more effective to start small and build something internally. This involves creating separate systems and solutions that can be tested for viability and scalability. Successful initiatives can then be integrated back into the existing framework.
Partner collaborations: Although not at all easy, collaborating with external partners, such as technology providers or insurtech startups, can bring fresh perspectives and expertise to overcome technology barriers. These partnerships can provide access to new technologies, innovative solutions, and best practices in digital transformation.
Data-driven decision-making: Leveraging data and analytics can help identify areas where technology improvements can have the most significant impact. By understanding the specific pain points and challenges within the organisation, informed decisions can be made regarding technology investments and transformation priorities.
Change management and training: Implementing change management processes and providing training to employees are vital for ensuring a smooth transition. This includes educating employees on new technologies, fostering a culture of innovation, and addressing any concerns or resistance to change.
Agility and adaptability: Recognise that technology is constantly evolving, and the organisation needs to be agile and adaptable. Regularly reassess the technology landscape, stay informed about emerging trends, and be open to adjusting strategies as needed.
By applying these strategies, companies can overcome technology barriers and effectively transition from legacy systems to digital systems and the latest technologies. This enables them to unlock the full potential of innovation and drive meaningful progress within the organisation.
In terms of overcoming data silos within an organisation, what is your take on the matter and how can companies enable data to produce more useful insights?
Overcoming data silos is crucial for organisations to unlock the full potential of data and generate more useful insights, especially if we consider the new Generative AI trend, where LLMs massively benefit for data at scale, intrinsically. There are a few considerations and strategies to address this challenge.
Establishing a centralised data lake serves as the foundation for effective data management; it is essential. A data lake is a virtual repository where all the company’s data flows and can be managed. It allows for a unified view of data, regardless of the partner, customer segment, or system being used. Having a central intelligence warehouse enables seamless access to data for analysis and insights. Of course, a solid data governance around it is also fundamental.
User-friendly Business Intelligence tools are also important. Accessibility of data is essential for both data scientists and all managers. Implementing user-friendly BI tools empowers managers to interact with data easily and gain insights, fostering a fast and data-driven decision making. For example, tools like Power BI, just to name a famous one, allow for natural language queries, enabling non-technical users to ask questions and receive meaningful answers.
Democratisation of data is the third aspect. Data should not be locked away in silos or restricted to a few technical individuals. Democratising access to data ensures that everyone in the organisation has the opportunity to innovate and make data-driven decisions (i.e., more high quality ones). This involves providing the necessary access rights and tools for employees to access and analyse relevant data for their respective roles.
Also, enriching data by integrating external data sources can unlock valuable insights. By integrating diverse data sets, such as claims data with public databases or external sources, organisations can gain a deeper understanding of risks, customer behaviour, and market trends. This integration may require establishing the right data ingestion processes, connecting with relevant data sources through APIs, and being willing to invest in accessing valuable data.
Implementing effective data governance practices ensures data quality, consistency, and compliance. This includes defining data standards, establishing data ownership, and implementing data management policies and procedures. By standardising data formats, taxonomies, and models, organisations can ensure the accuracy and reliability of insights derived from the data.
Overcoming data silos requires a cultural shift within the organisation. Encouraging collaboration across departments and breaking down governance silos, at first, while fostering a data-driven culture at all levels. Promoting cross-functional collaboration and sharing insights and best practices creates a more holistic view of data and its potential value.
By implementing these strategies, organisations can overcome data silos and enable data to produce more useful insights. Democratising access to data, establishing a centralised data lake, and fostering a collaborative and data-driven culture are key steps towards unlocking the full potential of data within the organisation.
About Stefano Bison: Stefano Bison joined Generali Group 10 years ago, from the banking and financial industry. He is a senior international Financial Services Manager / Director, former Strategy Consultant (BCG) and Investment Banker (Lehman Brothers), with a successful 20-year track record mainly in Financial Services (Insurance, Banking, Investments), Organisation and HR.
