It’s not an exaggeration to say that much of the insurance industry is racing to bolt AI onto every process that makes sense.
As chief operating officer of one of the country's leading specialty mutuals, Lindsey DiGangi (pictured) feels the pull of the shiny new tool as keenly as anyone. DiGangi acknowledged that insurers can feel pressure to chase new tools, particularly as AI dominates industry conversations. But she warned that adoption must be strategic.
She told Insurance Business that Pennsylvania Lumbermens Mutual Insurance Company (PLM) is centering its policyholders in its digital transformation journey.
"We're not going to throw it at everything, but we can find the low-hanging fruit and start modernizing in the areas that we feel are most critical," DiGangi said. "There's always a little bit of FOMO, and it's more or less just that opportunity is knocking, and how do we decide where to start?"
PLM, a specialist carrier serving the wood and building materials industries, is navigating the same pressures facing much of the commercial insurance market: how to modernize systems, attract new talent and remain relevant to insureds whose businesses are changing quickly.
DiGangi said many insurers are sitting on “long histories” of information, but turning that into practical insight remains a challenge. At PLM, one early priority has been connecting data that previously lived in different places.
“We've always personally been kind of a buy-versus-build model from a technology standpoint. I think some of that comes from our size and just recognizing that there are resources around us, let's use them,” DiGangi said.
“But then you end up with data in many different places. So, early wins have been about connecting all that data into one place and starting to redefine the infrastructure of data at PLM to make it more accessible.”
But access alone is not enough. DiGangi said PLM is also focused on education across the organization, helping employees understand how to use the information available to them and what questions they should be asking.
“You kind of have this ‘don’t know what you don’t know,’” she said. “It’s all there available to us, but how do we figure out what we should be seeing and what we could be learning from what’s here?”
Governance is also essential, particularly in a regulated market. DiGangi said insurers need room to experiment and test new approaches, but they must do so with appropriate controls in place.
The push for modernization comes as PLM’s insureds are also evolving. The wood and building materials sector remains closely tied to housing and the broader economy, but DiGangi said many businesses in the space have become more complex. Companies that once operated in narrower segments are now expanding and diversifying into new areas.
“For us, when we’re looking at a risk, we’re recognizing that these companies are much more complex than they once were,” DiGangi said. “Businesses have learned that what consumers want is changing, so they have to find new ways to bring value to their customers. They are kind of reinventing themselves up and down the supply chain.”
Insurance products must keep pace, she added, but risk management is just as important. DiGangi said the industry has moved from a more reactive approach to a proactive, enterprise-wide view of risk. Insureds must be active participants in that process.
Talent is another long-term concern. DiGangi said insurance companies need to rethink the roles and skills they require as the industry changes. The traditional insurance workforce model will need to evolve alongside the risks carriers are being asked to cover.
Still, she sees mutual insurers as well positioned. Their long-term focus, specialized expertise and stakeholder-driven model can help them respond to market changes without losing sight of underwriting discipline.
“We’re a very stable company,” DiGangi said. “We stay very committed to underwriting discipline and to risk management with our insureds. But we’re not afraid of change and evolution as well.”
