Ventiv Technology

As risk and insurance managers know, there's a big move toward preventing risk rather than insuring against it. Preventing losses promises big savings on risk transfer; getting there, however, is dependent on having the kind of analytics that gives real, actionable insights into how to prevent losses. And analytics of that kind is possible only with access to a much broader data set than most risk and claims teams are accustomed to utilizing. The ability to incorporate third-party data into an analytics engine (a strength of the Ventiv IRM risk management solution) is an important trend driving more and more risk and claims teams to adopt advanced analytics tools. When broadening their data sets, risk and claims teams are increasingly looking to data collected from connected devices—the so-called Internet of Things (IoT). Another source of expanded data comes from consultancies who provide anonymized benchmarking data. And then there's the role of analytics solutions powered by artificial intelligence (AI), which is a key strength of Ventiv IRM. Late in 2018, Ventiv's global product manager, Angus Rhodes, shared his thoughts on the topic of AI and growing data sets with Corporate Risk and Insurance magazine: "One thing the Internet of Things does for sure is generate more information. To me, for risk managers to catch up, it's actually how they use that information to make better decisions and to understand what's happening. This is where AI comes in, which will help risk managers to analyze the huge amounts of data collected. AI tools are nothing unless you connect them to a broad data set. All of these advanced technologies are useless if you have all of your business information sitting inside siloed systems with no connection—they won't be able to predict much. Although this creates risks, this is the only way you'll be able to take advantage of the latest AI toolset. It's all about getting connected." DIGITIZATION AND THE FUTURE OF RISK AND INSURANCE MANAGEMENT What's the bottom line for risk and insurance management, in the near and longer term? Angus Rhodes meshes with Ventiv's position when he asserts that risk and insurance professionals will, sooner rather than later, become more involved with innovation: "I can see the risk manager becoming more involved with strategic business planning, and that's where they should be innovating. Technology doesn't eliminate the basic disciplines risk managers have always had. It's all new, but it's also all the same. I don't see AI anywhere close to replacing the role of risk managers, at least in the short term. Risk managers must evolve to be comfortable with using these advanced analytics tools. They should know when to rely on these tools and when to rely on their own decision making." u VENTIV TECHNOLOGY 3SIXTY ° | 7

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