WEBVTT
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[SPEAKER_00]: Welcome to AMBEST audio.
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[SPEAKER_00]: As chief legal and compliance officer at the mutual group, Shannon Woods brings a strategic and forward-looking perspective to the evolving legal and regulatory environment and insurance.
00:17.613 --> 00:27.898
[SPEAKER_00]: Where the sharp focus on innovation, industry, sustainability, and empowering the next generation of leaders, Shannon plays a pivotal role in shaping the mutual group's direction.
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[SPEAKER_00]: She joins us now, Shannon Woods so glad you could speak with us today.
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[SPEAKER_02]: Wonderful to be here.
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[SPEAKER_02]: Thank you for such a kind introduction.
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[SPEAKER_02]: That's very, very generous.
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[SPEAKER_00]: So Shannon, how would you describe the current regulatory and compliance landscape in insurance?
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[SPEAKER_00]: And what trends are our top of mind for you right now?
00:46.654 --> 00:47.835
[SPEAKER_01]: Yeah, that's a great question.
00:47.955 --> 00:55.280
[SPEAKER_01]: The insurance industry is navigating a really dynamic and increasingly complex regulatory environment right now.
00:55.900 --> 00:59.963
[SPEAKER_01]: I think that's shaped by tech innovation, climate risk,
01:00.965 --> 01:09.748
[SPEAKER_01]: In evolving consumer expectations, we watch these really carefully at the mutual group to ensure that we understand them and can take steps necessary to benefit our members.
01:10.369 --> 01:22.573
[SPEAKER_01]: And the key themes that we are seeing halfway into the years seem to be AI and automation oversight, no surprise their regulators are really intensifying their level of scrutiny around artificial intelligence.
01:23.897 --> 01:34.682
[SPEAKER_01]: climate risk regulation just with the record breaking number of natural disasters that has prompted regulators to demand more risk disclosures and resilient strategies.
01:35.612 --> 01:40.215
[SPEAKER_01]: And any IC is ramping up data collection and may introduce some new actuary up guidelines.
01:40.255 --> 01:43.377
[SPEAKER_01]: So really watching that one strongly this year.
01:43.397 --> 01:51.982
[SPEAKER_01]: And the last one I would say is probably privacy and data governance, new privacy protection model laws expected from any IC this year.
01:52.422 --> 02:01.388
[SPEAKER_01]: And that focuses on data retention, disclosures, consumer rights, and you're seeing states like New York enforcing stricter cybersecurity protocols.
02:01.448 --> 02:04.990
[SPEAKER_01]: So all of those are really top of mind for us right now.
02:05.748 --> 02:09.174
[SPEAKER_00]: You've highlighted the need for increased collaboration channel.
02:09.614 --> 02:11.638
[SPEAKER_00]: Why is that so important in the mutual sector?
02:13.083 --> 02:21.390
[SPEAKER_01]: Mostly because mutual insurers are facing mounting pressures and opportunities that could really accelerate consolidation and delectivity.
02:22.431 --> 02:31.118
[SPEAKER_01]: And really what's feeling that trend is there are lots of ways for mutuals to work together from affiliations and mergers to groups like NAMIC.
02:31.798 --> 02:33.940
[SPEAKER_01]: And then there are new options like the mutual group.
02:34.180 --> 02:35.501
[SPEAKER_01]: And it's hard to do
02:36.322 --> 02:43.108
[SPEAKER_01]: successful growth on your own and the more we work together, the better off we believe the mutual industry will be.
02:44.670 --> 02:50.295
[SPEAKER_01]: Factors that I think will drive growth and consolidation are really operational and strategic pressures.
02:50.395 --> 02:52.697
[SPEAKER_01]: So scale and efficiency needs.
02:53.197 --> 02:59.979
[SPEAKER_01]: Mutuals are struggling with the rising cost that come with tech and regulatory compliance and even underwriting volatility.
03:00.679 --> 03:12.742
[SPEAKER_01]: And so offering shared services to increased opportunities and digital platforms is really just an opportunity to provide mutuals with more tools in their toolbox, if you will.
03:14.203 --> 03:17.366
[SPEAKER_01]: Market and regulatory dynamics are also playing a role.
03:17.586 --> 03:20.669
[SPEAKER_01]: There is a complexity to standards and climate risk.
03:21.329 --> 03:25.273
[SPEAKER_01]: And all of those are pushing mutuals to consolidate for better compliance infrastructure.
03:26.034 --> 03:33.181
[SPEAKER_01]: Last, there are opportunities to drive growth and consolidation in the innovation and modernization area.
03:34.097 --> 03:47.431
[SPEAKER_01]: things like integration of opportunities and modernization tools combined with digital distribution can help mutual scale digital channels and compete with larger direct to consumer models and larger companies.
03:48.633 --> 03:56.061
[SPEAKER_00]: As someone who embraces being an early adopter, how are you encouraging innovation within the mutual group legal and compliance functions?
03:57.668 --> 03:58.569
[SPEAKER_01]: I love this question.
03:58.589 --> 04:07.482
[SPEAKER_01]: At the mutual group, I like to say that we continually champion a bold shift from traditional risk management to strategic enablement.
04:08.362 --> 04:14.026
[SPEAKER_01]: Specifically, we enable that through just a culture of curiosity and experimentation.
04:14.367 --> 04:31.400
[SPEAKER_01]: So we are looking at innovation labs in how to we host cross functional workshops to make sure that we are rethinking tools or workflows themselves and really just focusing on a fail fast mindset, encouraging our teams to test new ideas,
04:32.127 --> 04:38.411
[SPEAKER_01]: and especially around AI, automation, data governance, those things that we just talked about being hot button issues.
04:38.511 --> 04:48.797
[SPEAKER_01]: How do we really embrace the innovation around those to provide services to our members in a way that keep them at the forefront of those technology advances?
04:50.037 --> 04:59.603
[SPEAKER_01]: Data driven decision-making, building compliance dashboards, and using behavioral analytics to help us leverage data to detect anomalies in
05:00.429 --> 05:03.372
[SPEAKER_01]: Let's say agent content or even consumer interactions.
05:03.972 --> 05:09.298
[SPEAKER_01]: Let's us get in front of those issues before they escalate and help us provide better to those who are members.
05:09.358 --> 05:22.010
[SPEAKER_01]: And so, you know, all of those things together help us strive to just be an organization that focuses largely every day on how do we encourage innovation and as a whole to help us succeed.
05:23.048 --> 05:32.733
[SPEAKER_00]: You mentioned artificial intelligence a couple times, Shannon, what role do you see technologies like AI playing and reshaping key functions like claims management and underwriting?
05:34.314 --> 05:35.715
[SPEAKER_01]: We can't go to an insurance.
05:36.235 --> 05:41.118
[SPEAKER_01]: presentation or conference without having it be frankly the keynote topic.
05:41.158 --> 05:43.620
[SPEAKER_00]: You're right about that.
05:43.760 --> 05:44.380
[SPEAKER_00]: It's everywhere.
05:44.540 --> 05:45.341
[SPEAKER_01]: It's everywhere.
05:46.601 --> 05:56.527
[SPEAKER_01]: And what I'm finding is a lot of those messages are around how important it is, but that it isn't yet to the point that we're comfortable with it making actual decisions.
05:56.607 --> 05:57.368
[SPEAKER_01]: And so it becomes
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[SPEAKER_01]: important for us to understand what level are we comfortable integrating it and what do we need to do to create safeguards around it.
06:05.166 --> 06:13.148
[SPEAKER_01]: For mutuals in particular, AI presents unique opportunities but also challenges compared to larger insurance companies.
06:13.728 --> 06:21.949
[SPEAKER_01]: And that's because mutuals are owned by policy holders and those policy holders often emphasize long-term value and community trust and conservative growth.
06:22.029 --> 06:25.630
[SPEAKER_01]: And so, you know, that AI adoption needs to align with those values.
06:25.990 --> 06:26.650
[SPEAKER_01]: We are
06:27.389 --> 06:33.690
[SPEAKER_01]: really looking at AI in the future as a whole and how it can impact our members overall.
06:34.311 --> 06:54.775
[SPEAKER_01]: But with a key in I in two thousand twenty five, around claims management and underwriting in the mutual context, we think that it can enhance the member experience and streamline things like claims processing, reducing turnaround time for policy holders and even improving transparency, which frankly is the key to maintaining trust.
06:55.836 --> 07:00.319
[SPEAKER_01]: it can positively impact cost efficiency without compromising service.
07:00.939 --> 07:16.789
[SPEAKER_01]: If we use it to automate low complexity claims, it helps us provide a stronger, more specific focus on those high touch complex cases, often have also a comparatively higher level of emotional impact.
07:18.049 --> 07:18.850
[SPEAKER_01]: And then last
07:19.263 --> 07:21.384
[SPEAKER_01]: Just a community centric fraud detection.
07:21.424 --> 07:24.424
[SPEAKER_01]: We can use AI to detect fraud patterns.
07:25.165 --> 07:28.866
[SPEAKER_01]: And that's important for maintaining goodwill in these tight knit communities.
07:30.106 --> 07:35.968
[SPEAKER_00]: For all to talk about AI, Sean, do you think there's some mystery still about it, especially at the mutual level?
07:37.268 --> 07:38.188
[SPEAKER_01]: Yeah, I do.
07:38.888 --> 07:44.710
[SPEAKER_01]: And I think what that stems from is just the lack of understanding on where is it going specifically.
07:45.247 --> 07:56.032
[SPEAKER_01]: We know right now that AI is really great for implementing into your organization, but that you need a human behind that to use that information to make the right decision.
07:56.912 --> 08:11.218
[SPEAKER_01]: Where I see the confusion or perhaps the question is, what does that look like when we reach the point that we are trusting AI to make a decision without a human there to be watching, to be a safeguard?
08:12.192 --> 08:25.233
[SPEAKER_00]: So mutuals face some unique challenges as you well know whether it's attracting talent, investing in tech, or assessing capital, accessing capital, I should say, what's your view on how to turn these challenges into opportunities?
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[SPEAKER_01]: Yeah, that's a great question.
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[SPEAKER_01]: You're absolutely right.
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[SPEAKER_01]: Mutual ensures face a very distinct set of challenges.
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[SPEAKER_01]: I do believe those constraints can be reframed as strategic advantages when we approached them creatively and that's, you know, really just the underlying rationale for the mutual group.
08:43.080 --> 08:47.524
[SPEAKER_01]: We provide mutuals with the ability to attract and retain talent.
08:47.944 --> 08:56.412
[SPEAKER_01]: The challenge is mutuals lack the brand recognition or the compensation package or even the fast-paced culture of larger carriers.
08:57.073 --> 09:00.496
[SPEAKER_01]: The opportunity is to create a purpose-driven culture
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[SPEAKER_01]: create broader roles or someone perhaps there's a few more hats which can be attractive to people seeking a lot of opportunity and variety in their daily job and also flexible work models.
09:13.320 --> 09:20.062
[SPEAKER_01]: Mutuals can offer hybrid, remote, and that still allows for community engagement and really great work life balance.
09:21.343 --> 09:25.484
[SPEAKER_01]: I would also say an advantage for mutuals is the technology space
09:26.275 --> 09:30.659
[SPEAKER_01]: The challenges limited budgets and risk appetite can slow that transformation.
09:30.679 --> 09:47.092
[SPEAKER_01]: The opportunity is partnering strategically with the right people who can provide shared services or partnerships that give you access to cutting edge tools without that really heavy upfront investment and not allows a focus on member value.
09:49.403 --> 09:57.513
[SPEAKER_01]: And it's just, it's really just an agile adoption of what you need to scale the organizations needs if that makes sense.
09:58.454 --> 10:02.599
[SPEAKER_00]: So the mutual group has made headlines for rendering into long-term agreements with members.
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[SPEAKER_00]: What's the strategy behind that approach, Shannon, and how does it benefit both parties?
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[SPEAKER_01]: Sure, so the mutual group has in fact to make made made the media for what we do.
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[SPEAKER_01]: We do have a long term agreement with our mutuals.
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[SPEAKER_01]: We do that for a couple of different reasons.
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[SPEAKER_01]: It benefits both parties to have that that really deep member loyalty.
10:24.233 --> 10:31.077
[SPEAKER_01]: It fosters a sense of commitment reinforcing the idea that members are not just customers, they're sort of co-owners, right?
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[SPEAKER_01]: We're in this together and we're going to bring together the capital, the talent, the tech, the resources to make our members successful and thereby the mutual group is successful, but it doesn't happen singularly.
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[SPEAKER_01]: It also stabilizes the risk pools with longer-term commitments
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[SPEAKER_01]: We can better predict and manage risks over time, and that's critical when you see some of these weather events occurring and having such a significant impact on the industry.
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[SPEAKER_01]: It also provides for more accurate pricing, smoother last ratios, and just better capital planning.
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[SPEAKER_01]: I would also say it enables long-term investment.
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[SPEAKER_01]: It's predictable.
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[SPEAKER_01]: It allows us to support longer-term investments in technology.
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[SPEAKER_01]: So for example, if we're bringing on
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[SPEAKER_01]: cutting edge technology, but it requires a ten-year commitment because the implementation is so large.
11:25.967 --> 11:35.973
[SPEAKER_01]: That's something we can do and turn that into a strategic advantage for a mutual, where it would have initially have been something that could have been viewed as a negative.
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[SPEAKER_00]: Shannon, you're an advocate for increasing the presence of women and insurance.
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[SPEAKER_00]: What progress are you seeing and what more can be done to build a more inclusive future for the industry?
11:47.228 --> 11:55.592
[SPEAKER_01]: That's a powerful and timely question and one that is close to the heart of many leaders working to shape just a more equitable insurance industry.
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[SPEAKER_01]: Frankly, at the mutual group, what you see is balanced leadership and I'm going to tell that because we're proud of it, our leaders are almost fifty percent female, forty-nine percent.
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[SPEAKER_01]: Where I think that we have the opportunity to build a more inclusive future is is number one mentorship and sponsorship.
12:15.885 --> 12:26.973
[SPEAKER_01]: create formal programs they are growing, but push on them, help women to build networks and gain visibility and get access to career advancing opportunities.
12:27.753 --> 12:32.657
[SPEAKER_01]: We see male allies increasingly stepping up as sponsors, not just mentors, but
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[SPEAKER_01]: We can push on this a little more.
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[SPEAKER_01]: We can bring this into companies that haven't yet crossed this threshold.
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[SPEAKER_01]: And also policy and culture shifts.
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[SPEAKER_01]: Companies are adopting more inclusive policies that celebrate females and what they bring to the work example.
12:48.713 --> 12:54.277
[SPEAKER_01]: But instead of celebrating those companies, let's start to use them as examples of the new minimum standard.
12:55.938 --> 12:59.781
[SPEAKER_01]: It should just be something that is standard for every single organization.
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[SPEAKER_01]: And invest in the next generation.
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[SPEAKER_01]: partner with schools and universities to expose young women to careers and insurance.
13:09.807 --> 13:18.211
[SPEAKER_01]: Support scholarships, internships, and just be a supportive of early career mentorship for underrepresented groups.
13:18.712 --> 13:24.195
[SPEAKER_01]: I think that's something that takes a very small dedication of time, but has a very big impact.
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[SPEAKER_00]: Shannon, this has been delightful.
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[SPEAKER_00]: Thank you so much for taking the time to speak with us today.
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[SPEAKER_01]: Yeah, thank you for having me.
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[SPEAKER_01]: It was a pleasure.
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[SPEAKER_00]: That was Shannon Woods, chief legal and compliance officer at the mutual group, and I'm John Weber for AM Best Audio.
13:50.800 --> 13:53.262
[SPEAKER_00]: looking to get the full attention of the insurance industry.
13:53.983 --> 13:56.465
[SPEAKER_00]: We have the platforms that will do just that.
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14:04.152 --> 14:13.540
[SPEAKER_00]: Find out more by calling AM best advertising sales at nine o'clock, four three nine two two hundred extension five three nine nine and have a great day.
00:02.045 --> 00:04.586
[SPEAKER_00]: Welcome to AMBEST audio.
00:07.468 --> 00:17.013
[SPEAKER_00]: As chief legal and compliance officer at the mutual group, Shannon Woods brings a strategic and forward-looking perspective to the evolving legal and regulatory environment and insurance.
00:17.613 --> 00:27.898
[SPEAKER_00]: Where the sharp focus on innovation, industry, sustainability, and empowering the next generation of leaders, Shannon plays a pivotal role in shaping the mutual group's direction.
00:28.258 --> 00:31.680
[SPEAKER_00]: She joins us now, Shannon Woods so glad you could speak with us today.
00:32.825 --> 00:33.706
[SPEAKER_02]: Wonderful to be here.
00:33.746 --> 00:35.447
[SPEAKER_02]: Thank you for such a kind introduction.
00:35.807 --> 00:37.108
[SPEAKER_02]: That's very, very generous.
00:37.368 --> 00:42.812
[SPEAKER_00]: So Shannon, how would you describe the current regulatory and compliance landscape in insurance?
00:42.872 --> 00:45.493
[SPEAKER_00]: And what trends are our top of mind for you right now?
00:46.654 --> 00:47.835
[SPEAKER_01]: Yeah, that's a great question.
00:47.955 --> 00:55.280
[SPEAKER_01]: The insurance industry is navigating a really dynamic and increasingly complex regulatory environment right now.
00:55.900 --> 00:59.963
[SPEAKER_01]: I think that's shaped by tech innovation, climate risk,
01:00.965 --> 01:09.748
[SPEAKER_01]: In evolving consumer expectations, we watch these really carefully at the mutual group to ensure that we understand them and can take steps necessary to benefit our members.
01:10.369 --> 01:22.573
[SPEAKER_01]: And the key themes that we are seeing halfway into the years seem to be AI and automation oversight, no surprise their regulators are really intensifying their level of scrutiny around artificial intelligence.
01:23.897 --> 01:34.682
[SPEAKER_01]: climate risk regulation just with the record breaking number of natural disasters that has prompted regulators to demand more risk disclosures and resilient strategies.
01:35.612 --> 01:40.215
[SPEAKER_01]: And any IC is ramping up data collection and may introduce some new actuary up guidelines.
01:40.255 --> 01:43.377
[SPEAKER_01]: So really watching that one strongly this year.
01:43.397 --> 01:51.982
[SPEAKER_01]: And the last one I would say is probably privacy and data governance, new privacy protection model laws expected from any IC this year.
01:52.422 --> 02:01.388
[SPEAKER_01]: And that focuses on data retention, disclosures, consumer rights, and you're seeing states like New York enforcing stricter cybersecurity protocols.
02:01.448 --> 02:04.990
[SPEAKER_01]: So all of those are really top of mind for us right now.
02:05.748 --> 02:09.174
[SPEAKER_00]: You've highlighted the need for increased collaboration channel.
02:09.614 --> 02:11.638
[SPEAKER_00]: Why is that so important in the mutual sector?
02:13.083 --> 02:21.390
[SPEAKER_01]: Mostly because mutual insurers are facing mounting pressures and opportunities that could really accelerate consolidation and delectivity.
02:22.431 --> 02:31.118
[SPEAKER_01]: And really what's feeling that trend is there are lots of ways for mutuals to work together from affiliations and mergers to groups like NAMIC.
02:31.798 --> 02:33.940
[SPEAKER_01]: And then there are new options like the mutual group.
02:34.180 --> 02:35.501
[SPEAKER_01]: And it's hard to do
02:36.322 --> 02:43.108
[SPEAKER_01]: successful growth on your own and the more we work together, the better off we believe the mutual industry will be.
02:44.670 --> 02:50.295
[SPEAKER_01]: Factors that I think will drive growth and consolidation are really operational and strategic pressures.
02:50.395 --> 02:52.697
[SPEAKER_01]: So scale and efficiency needs.
02:53.197 --> 02:59.979
[SPEAKER_01]: Mutuals are struggling with the rising cost that come with tech and regulatory compliance and even underwriting volatility.
03:00.679 --> 03:12.742
[SPEAKER_01]: And so offering shared services to increased opportunities and digital platforms is really just an opportunity to provide mutuals with more tools in their toolbox, if you will.
03:14.203 --> 03:17.366
[SPEAKER_01]: Market and regulatory dynamics are also playing a role.
03:17.586 --> 03:20.669
[SPEAKER_01]: There is a complexity to standards and climate risk.
03:21.329 --> 03:25.273
[SPEAKER_01]: And all of those are pushing mutuals to consolidate for better compliance infrastructure.
03:26.034 --> 03:33.181
[SPEAKER_01]: Last, there are opportunities to drive growth and consolidation in the innovation and modernization area.
03:34.097 --> 03:47.431
[SPEAKER_01]: things like integration of opportunities and modernization tools combined with digital distribution can help mutual scale digital channels and compete with larger direct to consumer models and larger companies.
03:48.633 --> 03:56.061
[SPEAKER_00]: As someone who embraces being an early adopter, how are you encouraging innovation within the mutual group legal and compliance functions?
03:57.668 --> 03:58.569
[SPEAKER_01]: I love this question.
03:58.589 --> 04:07.482
[SPEAKER_01]: At the mutual group, I like to say that we continually champion a bold shift from traditional risk management to strategic enablement.
04:08.362 --> 04:14.026
[SPEAKER_01]: Specifically, we enable that through just a culture of curiosity and experimentation.
04:14.367 --> 04:31.400
[SPEAKER_01]: So we are looking at innovation labs in how to we host cross functional workshops to make sure that we are rethinking tools or workflows themselves and really just focusing on a fail fast mindset, encouraging our teams to test new ideas,
04:32.127 --> 04:38.411
[SPEAKER_01]: and especially around AI, automation, data governance, those things that we just talked about being hot button issues.
04:38.511 --> 04:48.797
[SPEAKER_01]: How do we really embrace the innovation around those to provide services to our members in a way that keep them at the forefront of those technology advances?
04:50.037 --> 04:59.603
[SPEAKER_01]: Data driven decision-making, building compliance dashboards, and using behavioral analytics to help us leverage data to detect anomalies in
05:00.429 --> 05:03.372
[SPEAKER_01]: Let's say agent content or even consumer interactions.
05:03.972 --> 05:09.298
[SPEAKER_01]: Let's us get in front of those issues before they escalate and help us provide better to those who are members.
05:09.358 --> 05:22.010
[SPEAKER_01]: And so, you know, all of those things together help us strive to just be an organization that focuses largely every day on how do we encourage innovation and as a whole to help us succeed.
05:23.048 --> 05:32.733
[SPEAKER_00]: You mentioned artificial intelligence a couple times, Shannon, what role do you see technologies like AI playing and reshaping key functions like claims management and underwriting?
05:34.314 --> 05:35.715
[SPEAKER_01]: We can't go to an insurance.
05:36.235 --> 05:41.118
[SPEAKER_01]: presentation or conference without having it be frankly the keynote topic.
05:41.158 --> 05:43.620
[SPEAKER_00]: You're right about that.
05:43.760 --> 05:44.380
[SPEAKER_00]: It's everywhere.
05:44.540 --> 05:45.341
[SPEAKER_01]: It's everywhere.
05:46.601 --> 05:56.527
[SPEAKER_01]: And what I'm finding is a lot of those messages are around how important it is, but that it isn't yet to the point that we're comfortable with it making actual decisions.
05:56.607 --> 05:57.368
[SPEAKER_01]: And so it becomes
05:57.945 --> 06:04.406
[SPEAKER_01]: important for us to understand what level are we comfortable integrating it and what do we need to do to create safeguards around it.
06:05.166 --> 06:13.148
[SPEAKER_01]: For mutuals in particular, AI presents unique opportunities but also challenges compared to larger insurance companies.
06:13.728 --> 06:21.949
[SPEAKER_01]: And that's because mutuals are owned by policy holders and those policy holders often emphasize long-term value and community trust and conservative growth.
06:22.029 --> 06:25.630
[SPEAKER_01]: And so, you know, that AI adoption needs to align with those values.
06:25.990 --> 06:26.650
[SPEAKER_01]: We are
06:27.389 --> 06:33.690
[SPEAKER_01]: really looking at AI in the future as a whole and how it can impact our members overall.
06:34.311 --> 06:54.775
[SPEAKER_01]: But with a key in I in two thousand twenty five, around claims management and underwriting in the mutual context, we think that it can enhance the member experience and streamline things like claims processing, reducing turnaround time for policy holders and even improving transparency, which frankly is the key to maintaining trust.
06:55.836 --> 07:00.319
[SPEAKER_01]: it can positively impact cost efficiency without compromising service.
07:00.939 --> 07:16.789
[SPEAKER_01]: If we use it to automate low complexity claims, it helps us provide a stronger, more specific focus on those high touch complex cases, often have also a comparatively higher level of emotional impact.
07:18.049 --> 07:18.850
[SPEAKER_01]: And then last
07:19.263 --> 07:21.384
[SPEAKER_01]: Just a community centric fraud detection.
07:21.424 --> 07:24.424
[SPEAKER_01]: We can use AI to detect fraud patterns.
07:25.165 --> 07:28.866
[SPEAKER_01]: And that's important for maintaining goodwill in these tight knit communities.
07:30.106 --> 07:35.968
[SPEAKER_00]: For all to talk about AI, Sean, do you think there's some mystery still about it, especially at the mutual level?
07:37.268 --> 07:38.188
[SPEAKER_01]: Yeah, I do.
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[SPEAKER_01]: And I think what that stems from is just the lack of understanding on where is it going specifically.
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[SPEAKER_01]: We know right now that AI is really great for implementing into your organization, but that you need a human behind that to use that information to make the right decision.
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[SPEAKER_01]: Where I see the confusion or perhaps the question is, what does that look like when we reach the point that we are trusting AI to make a decision without a human there to be watching, to be a safeguard?
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[SPEAKER_00]: So mutuals face some unique challenges as you well know whether it's attracting talent, investing in tech, or assessing capital, accessing capital, I should say, what's your view on how to turn these challenges into opportunities?
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[SPEAKER_01]: Yeah, that's a great question.
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[SPEAKER_01]: You're absolutely right.
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[SPEAKER_01]: Mutual ensures face a very distinct set of challenges.
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[SPEAKER_01]: I do believe those constraints can be reframed as strategic advantages when we approached them creatively and that's, you know, really just the underlying rationale for the mutual group.
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[SPEAKER_01]: We provide mutuals with the ability to attract and retain talent.
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[SPEAKER_01]: The challenge is mutuals lack the brand recognition or the compensation package or even the fast-paced culture of larger carriers.
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[SPEAKER_01]: The opportunity is to create a purpose-driven culture
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[SPEAKER_01]: create broader roles or someone perhaps there's a few more hats which can be attractive to people seeking a lot of opportunity and variety in their daily job and also flexible work models.
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[SPEAKER_01]: Mutuals can offer hybrid, remote, and that still allows for community engagement and really great work life balance.
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[SPEAKER_01]: I would also say an advantage for mutuals is the technology space
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[SPEAKER_01]: The challenges limited budgets and risk appetite can slow that transformation.
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[SPEAKER_01]: The opportunity is partnering strategically with the right people who can provide shared services or partnerships that give you access to cutting edge tools without that really heavy upfront investment and not allows a focus on member value.
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[SPEAKER_01]: And it's just, it's really just an agile adoption of what you need to scale the organizations needs if that makes sense.
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[SPEAKER_00]: So the mutual group has made headlines for rendering into long-term agreements with members.
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[SPEAKER_00]: What's the strategy behind that approach, Shannon, and how does it benefit both parties?
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[SPEAKER_01]: Sure, so the mutual group has in fact to make made made the media for what we do.
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[SPEAKER_01]: We do have a long term agreement with our mutuals.
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[SPEAKER_01]: We do that for a couple of different reasons.
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[SPEAKER_01]: It benefits both parties to have that that really deep member loyalty.
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[SPEAKER_01]: It fosters a sense of commitment reinforcing the idea that members are not just customers, they're sort of co-owners, right?
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[SPEAKER_01]: We're in this together and we're going to bring together the capital, the talent, the tech, the resources to make our members successful and thereby the mutual group is successful, but it doesn't happen singularly.
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[SPEAKER_01]: It also stabilizes the risk pools with longer-term commitments
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[SPEAKER_01]: We can better predict and manage risks over time, and that's critical when you see some of these weather events occurring and having such a significant impact on the industry.
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[SPEAKER_01]: It also provides for more accurate pricing, smoother last ratios, and just better capital planning.
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[SPEAKER_01]: I would also say it enables long-term investment.
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[SPEAKER_01]: It's predictable.
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[SPEAKER_01]: It allows us to support longer-term investments in technology.
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[SPEAKER_01]: So for example, if we're bringing on
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[SPEAKER_01]: cutting edge technology, but it requires a ten-year commitment because the implementation is so large.
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[SPEAKER_01]: That's something we can do and turn that into a strategic advantage for a mutual, where it would have initially have been something that could have been viewed as a negative.
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[SPEAKER_00]: Shannon, you're an advocate for increasing the presence of women and insurance.
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[SPEAKER_00]: What progress are you seeing and what more can be done to build a more inclusive future for the industry?
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[SPEAKER_01]: That's a powerful and timely question and one that is close to the heart of many leaders working to shape just a more equitable insurance industry.
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[SPEAKER_01]: Frankly, at the mutual group, what you see is balanced leadership and I'm going to tell that because we're proud of it, our leaders are almost fifty percent female, forty-nine percent.
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[SPEAKER_01]: Where I think that we have the opportunity to build a more inclusive future is is number one mentorship and sponsorship.
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[SPEAKER_01]: create formal programs they are growing, but push on them, help women to build networks and gain visibility and get access to career advancing opportunities.
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[SPEAKER_01]: We see male allies increasingly stepping up as sponsors, not just mentors, but
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[SPEAKER_01]: We can push on this a little more.
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[SPEAKER_01]: We can bring this into companies that haven't yet crossed this threshold.
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[SPEAKER_01]: And also policy and culture shifts.
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[SPEAKER_01]: Companies are adopting more inclusive policies that celebrate females and what they bring to the work example.
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[SPEAKER_01]: But instead of celebrating those companies, let's start to use them as examples of the new minimum standard.
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[SPEAKER_01]: It should just be something that is standard for every single organization.
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[SPEAKER_01]: And invest in the next generation.
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[SPEAKER_01]: partner with schools and universities to expose young women to careers and insurance.
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[SPEAKER_01]: Support scholarships, internships, and just be a supportive of early career mentorship for underrepresented groups.
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[SPEAKER_01]: I think that's something that takes a very small dedication of time, but has a very big impact.
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[SPEAKER_00]: Shannon, this has been delightful.
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[SPEAKER_00]: Thank you so much for taking the time to speak with us today.
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[SPEAKER_01]: Yeah, thank you for having me.
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[SPEAKER_01]: It was a pleasure.
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[SPEAKER_00]: That was Shannon Woods, chief legal and compliance officer at the mutual group, and I'm John Weber for AM Best Audio.
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[SPEAKER_00]: looking to get the full attention of the insurance industry.
13:53.983 --> 13:56.465
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[SPEAKER_00]: Whether it be AM best TV, AM best audio, best review magazine, or best day.
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[SPEAKER_00]: Find out more by calling AM best advertising sales at nine o'clock, four three nine two two hundred extension five three nine nine and have a great day.
