Lifelong learning: the answer to technology for insurers

Journalist: Editorial team ceo | Photographer: Zurich Insurance

Mr Beer, you’ve spent your entire professional life at Zurich. Take us back to the time when you started your apprenticeship. What was life at Zurich like back then?
When I started at Zurich in 1987, we still had the letter ‘ü’ in our name! At the time, the office world was dominated by paper and typewriters. Policies were written out by hand and physically filed. As you can imagine, the archive was huge. The general ledger in accounting really was an actual book. And we used fax machines to communicate with foreign countries. When I got my first desktop PC in 1992, it almost felt like a promotion.

Today you’re at the helm of Zurich Switzerland and have experienced the entire digital transformation. What do you think has had the greatest impact on the insurance industry?
Besides the Internet, it’s difficult to name one single innovation. But as an industry, we stand for sustainable development rather than radical change. Our business is built for the long term. Cloud technology has definitely had a massive impact. In combination with generative AI, it opens up new opportunities to increase customer benefits, efficiency, effectiveness and agility.

What does this mean for Zurich?
Our business will go through various transformation phases in the next few years. I’m not just talking about process optimisations, but about fundamental changes. Our customers have new needs and expectations. At the same time, we’re faced with structural changes in risk. This means that the availability and quality of data are more important than ever. We’re investing heavily in these capabilities and are relying as much as possible on a cross-functional ‘one data source’ strategy. For us, this also goes hand in hand with a robust governance framework and a clear commitment to the secure storage and handling of data.

What structural changes in risk are you referring to?
Aspects of globalisation are being rewritten due to geopolitical events and we’re seeing extensive restructuring of the international supply chain architecture. In recent years, climate change, urbanisation, economic and population growth and inflation have led to a dramatic increase in macroeconomic losses and thus insured losses from natural disasters. A liability environment has emerged for companies in the USA that’s almost impossible to control. The new buzzword is ‘social inflation’. Upcoming advances in autonomous driving will trigger a new dimension in liability law. Generative AI is also opening up a new chapter in cyber crime. Pension systems are faced with the issue of long-term financing. The limits of insurability are being tested and, in some cases, redefined. And people and companies need a new type of support in dealing with their life and risk situations. This is what we’re gearing ourselves towards – with data playing a central role in this.

What about AI? Do you allow the use of such technologies?
Zurich Switzerland is probably one of the frontrunners in the use of machine learning and artificial intelligence. Together with the various departments, we set up a team very early on that identifies areas where AI can be applied. For example, we use AI to analyse complex claims for personal injury, to check repair invoices and to combat fraud in claims. Other areas of application include machine support in customer service and contract comparisons in international business. At group level, Zurich has rolled out an internal ChatGPT solution. Zurich Switzerland is currently the most active user for translations, text templates and the creation of decision templates. I’m really proud to see how my team is making use of the capabilities available to help them work more efficiently. This takes away our fear and increases our risk awareness when dealing with this new technology.

What ethical considerations do you bear in mind when using AI?
This was the very first chapter in defining our Group AI Assurance Framework. For example, all AI decisions must be capable of being documented, explained and verified by human staff. The final decision always lies with a person. 

As the use of technology increases, so does the risk of becoming a victim of cyber crime. How do you feel about this?
Cybersecurity plays a key role everywhere these days. Protecting our systems is a top priority throughout the company. There are special teams dedicated to this topic who work together with the country units. We also place a strong emphasis on raising staff awareness by organising annual training courses, for example.

Both you and your customers must protect against cyber risks. What role does cyber insurance play at Zurich?
Cyber is a complex issue. Insurance can only come into play once the company has established clear standards. The main priority is protecting the infrastructure and training staff. How do we make sure that employees recognise criminal emails? How often do updates and backups take place? Are they stored on a server or in the cloud? How are they protected against physical events such as fire? If something does happen, you still need a clear plan. How do we activate backups? How do we respond to extortion? How do we inform employees, suppliers, shareholders and the press? Insurance is last on the list. This is also complex and involves direct damage, business interruption, possible contractual penalties and so on. Depending on the terms of the policy, the insurance company will cover certain parts. Other costs are borne by the company itself. That’s why it’s crucial to invest in security and planning.

How do you personally protect yourself against cyber attacks?
Thanks to the mandatory cyber training at Zurich, I’m definitely more aware and have been able to improve my own personal cyber resilience. I use a VPN and am careful when choosing passwords. I also perform regular backups, including to the cloud.

We’ve talked a lot about data and new technologies. A recently published study has shown that advances in these areas are significantly changing the demands placed on staff. How do you deal with this?
As employers, it’s important that we encourage lifelong learning and invest not only in technology but also in training our staff. In my opinion, it isn’t just the demands of companies on their employees that are increasing, but also the demands of employees on companies. Gen X and Gen Y have spent a lot more time searching for and gathering information than using it to make decisions. For Gen Z, it’s the exact opposite. They expect data and information to be available. 

That may be so, but the older generations are afraid of being replaced. Isn’t this fear justified?
Naturally, there’s a lot of talk about which jobs will disappear in the next few years. This is creating uncertainty and fear. But with technology, change always follows. This was the case with all major inventions: the steam engine, electricity, the Internet and now probably AI. At the same time, these inventions have also always created new jobs and increased prosperity. Why should it be any different this time? What’s more, the global employment market is under strain and by 2029 we’ll lose an entire generation – the baby boomers. We can use technology to replace some of these natural departures.