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Digital EditionMarc Schein Discusses the Evolving World of Cyber Risk and Claims Management
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A 2024 Cyber Power Broker winner, Marc Schein, National Co-chair, Cyber Risk Practice, the Marsh McLennan Agency, shares his thoughts below.
Risk & Insurance: In which commercial lines are your clients struggling to put together adequate coverage?
Marc Schein: Higher limits and inexpensive rates on property coverage have become increasingly difficult to obtain over the past several quarters, particularly in light of recent hurricanes and wildfires, which have driven up costs and limited available capacity.
Conversely, the cyber insurance market remains relatively soft. However, there has been a notable hardening of the market concerning privacy coverages, specifically related to wrongful collection of information.
Additionally, E-crime coverages, including computer fraud, wire transfer fraud, and deceptive fraud, are also experiencing increased scrutiny with many carriers providing sublimits for the E-crime coverages.
Nevertheless, experienced brokers are well equipped to navigate the complexities of the market to secure the necessary coverage for their clients.
R&I: On the claims side, what’s working well and what’s not?
MS: It is important to evaluate both the effective areas and the areas that require improvement. We are observing an increase in collaboration among vendors, brokers and carrier claims teams, which is a positive development.
However, the current market remains fragmented regarding the integration of generative AI into the claims handling process. Addressing this fragmentation could enhance efficiency and effectiveness in claims management.
R&I: Where do you see generative artificial intelligence making a difference in your team’s work?
MS: Generative AI can analyze large amounts of data to identify patterns and assess risks more accurately. By generating predictive models, insurers can better evaluate the likelihood of claims and set premiums accordingly.
AI can automate the claims process by generating initial assessments based on the input of the important data. This speeds up the claims handling time, reduces human error, and enhances customer satisfaction.
Gen AI can possibly create personalized insurance products and recommendations based on individual customer data and preferences. This level of customization helps insurers meet the specific needs of their clients, improving retention and engagement.
By reviewing historical claims data and generating models of typical claims behavior, AI can identify differences that may indicate fraudulent or illegal activity. This approach may help insurers mitigate losses and protect their bottom line.
Generative AI powers chatbots that can handle customer inquiries, provide policy information, and assist with claims filing. These virtual assistants are available 24/7, improving accessibility and customer service.
Generative AI maybe able to assist in ensuring compliance with regulations by automating reports and documentation required by regulators, reducing the risk of non-compliance.
Finally, AI can create education materials and simulations for insurance professionals, helping them stay updated on industry trends, products, and compliance requirements.
R&I: What advice would you give to a younger person that is seeking to break into this industry?
MS: Learn as much as you can early in your career. To evolve from a generalist to a subject matter expert, it is essential to first gain a clear understanding of your personal and professional interests.
Once you have identified these areas, focus on becoming an expert in your chosen field. Engage actively by attending industry conferences, hosting podcasts, and pursuing relevant professional designations.
By committing fully to your craft and consistently seeking opportunities for growth and learning, you will rapidly enhance your expertise and establish yourself as a recognized authority in your industry. &
