A history of digital transformation within insurance

History

When a company has been in business for almost 150 years, you would expect to encounter some change along the way. Founded in 1875, HSB Canada started life at a time when pressure boilers were the primary engine powering equipment and machinery in industry across Canada.

The technology was relatively new and explosions were quite common, until companies like HSB Canada started deploying engineers to routinely inspect this prone equipment. At the time, this was an extremely novel approach, but the insurance industry has come a long way since 1875 –and HSB Canada with it.

Today, the Toronto-headquartered business provides inspection, risk management and IoT technology services, as well as insuring a number of specialty lines, including equipment breakdown cover – a nod to the company’s heritage, which is still reflected in its logo – as well as cyber insurance cover, a huge area of need in an increasingly volatile world. Since 2009, HSB has been a part of the Munich Re Group, giving it access to a wider pool of expertise –and the company acknowledges that talent is one of the things that sets it apart.

“The people here are one of our biggest differentiators,” proclaims Mike Scarbeau, Vice President Information Technology at

HSB Canada. “We have a lot of fantastic subject matter experts who are, I would say, the de facto experts in Canada, particularly on the inspection and engineering side. There’s a lot of great talent that has been brought into the business, so it’s a really exciting time to be here.”

Becoming part of Munich Re 15 years ago – the latest chapter in a long and storied history for the business – has only helped to accentuate that. “You certainly feel you’re part of a bigger group that has some amazing talent across the globe,” Scarbeau adds.

How has insurance evolved in 148 years?

A lot of things have changed since HSB Canada was founded in 1875. There have been seven British monarchs (from Victoria to her great-great-great-grandson Charles III); 13 new American states; and 23 prime ministers of Canada (all but one term, in fact, as the company was started just eight years after the formation of the country).

A lot has changed from a technological viewpoint, as well as a social one, as HSB Canada’s Vice President Client Solutions and Innovation, Lasith Lansakara, explains: “I think there has been an evolution of technology with the introduction of connected technology, like internet of things (IoT) devices. There has been quick transfer of data, and there’s been increased proliferation of data available.

“From an insurer’s perspective, it’s allowed us to create new products and assess risks better. I think those changes in technology, and even an evolution in consumer habits, are shifting the nature of risk. So if you take cyber insurance for example, a couple of years ago a hacking incident would have meant business interruption for a couple of days. Today that has evolved, and now there is the risk of extortion due to stolen data.

“It’s that evolution of the nature of risk that has created the need for these new products and requires insurers to be a bit more agile,” he says.

The way that consumers transact has also changed – not just in terms of the

Lasith Lansakara

TITLE: VICE PRESIDENT, CLIENT SOLUTIONS AND INNOVATION

INDUSTRY: INSURANCE

LOCATION: CANADA propensity to pay with coins and notes, but also what level of service they expect from their insurer. “They’re looking for a seamless, frictionless experience,” Lansakara says.

This evolution has inevitably resulted in some side effects. There are upsides, sure; the connectedness of our world results in improved access and availability of data, with sensors allowing insurers to gather data in real time and mitigate risks sooner and faster.

But there are also downsides. “It’s created another layer of risk, and it’s an area that is constantly changing,” Lansakara continues. We have more IoT devices in our homes and our work premises than ever before

Executive Bio

Lansakara leads client-focused innovation and engagement for new solution development and adoption focusing on enhancing strategic engagement with clients. He acts as an innovation facilitator within HSB Canada to support achieving its ambitious growth and development objectives. Lansakara oversees the New Solutions practice and the Digital Distribution team.

Lansakara joined HSB Canada with over 10 years experience in the insurance industry and prior to joining HSB Canada, Lansakara was National Commercial Insurance Practice Leader, Senior Manager with a leading global consulting firm.

Lansakara holds a Bachelor of Science degree in Computer Science from Illinois Wesleyan University, as well as a Master of Business Administration from New York