<body><div><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=2bQoWO_0vyhTJtx00" alt="https://img.particlenews.com/image.php?url=2bQoWO_0vyhTJtx00" width="1000" height="600" ></figure>Nigel Walsh, Managing Director and Head of Global Insurance at Google Cloud, stands at the forefront of a massive transformation within the insurance industry. This sector, historically plagued by legacy systems and conservative approaches to change, is now undergoing an accelerated shift due to the adoption of AI and cloud technology.<h2>‘We’re still riddled with legacy’</h2>And, as insurers grapple with the challenges of modernizing their infrastructure and embracing new technological capabilities, Walsh and Google Cloud are playing a critical role in guiding these organizations through their digital transformation. One of the most significant challenges insurance companies face in implementing AI-driven solutions is their dependence on legacy systems.“We’re still riddled with legacy,” he tells IB. “It’s absolutely everywhere. No matter how much we've tried to modernize the core over the last years, we need to have a better grasp on our insurance estate and get our data ready for this next wave of innovation.”For AI to be effective, insurers need to be able to access the data, which can be complicated when information is scattered across numerous, disparate systems.“We need to be able to get access to data wherever it may sit,” adds Walsh.In response to this, Google Cloud has focused on creating solutions that bring together distributed data , allowing insurers to harness the power of AI without the limitations imposed by legacy infrastructure.“The journey to cloud is no longer an ‘if’ question,” Walsh points out, adding that the question of cloud adoption has now shifted from whether to do it, to how best to leverage the cloud for maximum agility, security, and innovation.One of the biggest advantages that cloud technology offers is agility—the ability to launch new products and adapt quickly in a rapidly changing market. This is crucial for an industry that is constantly facing new regulatory challenges.‘Technology alone cannot solve all of the industry’s problems’Google Cloud’s solutions not only helps address these regulatory challenges but also help insurers maintain a robust security posture. Walsh cites the example of Google’s partnership with Munich Re and Allianz through the Risk Protection Program, a collaboration that brings innovative risk management solutions to the market.“It shows you how we’re looking to partner with the insurance industry to help bring net new solutions to market,” he explains.However, technology alone cannot solve all of the industry’s problems. There’s a growing skills gap in the insurance sector, particularly when it comes to adopting AI and other emerging technologies. According to Deloitte, 95% of insurers say data and analytics are essential to their success, yet many lack internal expertise in these areas. What’s more, the World Economic Forum’s Future of Jobs Report predicts a 54% rise in demand for digital skills in the insurance sector over the next five years.For Walsh, he points out that, over the years, the skill set requirements in the industry have evolved dramatically too.“I used to get asked what skill sets do you need for robotic process automation? Today, as you would expect - I’m asked what skill set do I need for generative AI?”Another key focus for insurers today is improving customer engagement while streamlining operations. Many organizations are grappling with high operational costs and are eager to find ways to reduce expenses while significantly improving efficiency.<h2>‘We don’t want underwriters doing swivel chair integration’</h2>“How do we take cost out of our organization in an efficient and effective way and allow people to do the job that they’re there to do?” Walsh adds, using underwriters as a prime example - explaining that too often they’re burdened with mundane tasks like manually integrating data from multiple sources. Google Cloud’s AI technology aims to change this by automating these processes, allowing employees to focus on high-value tasks.“We don’t want underwriters doing swivel chair integration,” Walsh tells IB.One notable success story Walsh shares is the case of Hiscox, a global specialist insurer. Hiscox partnered with Google Cloud to enhance their capabilities around sabotage and terrorism insurance, leading to significant efficiency gains. Walsh highlights this as a prime example of how AI can dramatically reduce the time it takes to process complex insurance cases. As a result, Hiscox can provide a broker with an insurance quote in a matter of minutes, according to a press release from August 2024.Claims processing is another area where AI is making a profound impact. Walsh reflects on the long-standing desire within the industry to better connect underwriting and claims.“We have talked for years about connecting underwriting and claims. ” But with the advent of more advanced AI tools, insurers can now integrate these traditionally separate functions more seamlessly.<h2>‘I want us to be proud of the industry’</h2>Walsh is particularly enthusiastic about the role of AI and cloud technology in transforming the customer experience.“I want us to be proud of the industry,” Walsh says, noting that the public’s perception of insurance has often been less than favorable. His goal is to change that by making insurance more engaging and even “lovable.” He envisions a future where AI-driven tools simplify the insurance process, making it more user-friendly and accessible to customers, from acquisition through servicing.“You can make our jobs way more lovable by giving you the right tools,” he adds, pointing to Google Cloud’s AI capabilities, such as making your data truly conversational through GenAI - which we are already seeing being used to streamline complex processes. Something Google Cloud has seen with the recent expanded partnership with Prudential PLC, rolling out AI support to over 15,000 employees.Ultimately, Walsh believes that cloud-based ecosystems will be the foundation of the insurance industry’s future. “Think big, start small, act quickly,” he advises, a mantra that aligns with Google Cloud’s philosophy of continuous improvement.</div></body>

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'We're still riddled with legacy': MD of Google Cloud push to modernize the sector

Nigel Walsh, Managing Director and Head of Global Insurance at Google Cloud, stands at the forefront of a massive transformation within the insurance industry. This sector, historically plagued by legacy systems and conservative approaches to change, is now undergoing an accelerated shift due to the adoption of AI and cloud technology.