‘Too much technology can be a problem’: Deputy CEO Davies

Claims processing has benefited greatly from the integration of artificial intelligence (AI), including generative AI (gen AI). These technologies are revolutionizing the way insurance claims are processed, evaluated, and managed, delivering unprecedented efficiency, accuracy, and ultimately customer satisfaction.

But how can the insurance industry balance the rapid penetration of AI with human judgment and connectivity?

“I’ve seen companies that haven’t approached finding balance in a methodical and deliberate way, and that’s sometimes gotten them into trouble,” said Dhara Patel (pictured), president and co-CEO of Davies Group’s North American business.

“Technology overload can be a problem because claims and insurance services still have a very human element.”

Balancing Technology, Integration and Growth

Speaking to Insurance Business, Patel said one of the biggest challenges in driving continued growth in North America is finding the balance between technology and growth, including mergers and acquisitions (M&A).

As president and deputy CEO, Patel will lead Davies’ North American operations and sales functions and ensure that acquired businesses are seamlessly integrated into the organization. The role was created to help Davies focus more on the U.S. and Canadian markets and follows a period of significant growth for the specialized professional services firm.

“We want to move quickly so we can realize savings and deliver great results for our customers. But we also want to be very careful not to make too many changes at once across Davies, especially with all the acquisitions we’re making,” Patel said.

“Our challenge will be — and it is directly related to my appointment — to ensure that our exceptional service does not suffer as a result of our growth and integration.”

Davies says U.S. dollar revenue now accounts for half of his global business. Since entering the market nearly five years ago, his North American operation has grown to about 2,200 employees. Last November, it acquired four claims and services businesses from Brown & Brown, where Patel held a number of senior management positions before joining Davies.

“Nothing is excluded” in the context of Gen AI

Despite her measured approach, Patel is enthusiastic about the potential of generative AI and similar technologies to streamline the claims process.

“This is a very important area for us and we have a dedicated team that is focused on identifying opportunities around next-generation AI across all of our services and business areas, without leaving anything out,” she said.

Among Davies’ key projects is an artificial intelligence and machine learning tool that reveals hidden subrogation opportunities in property claims.

“Since our implementation 18 months ago, we have seen a 45 per cent increase in the number of subrogation cases identified and recoveries made, which is delivering significant benefits to our insurer clients,” Patel said.

“We’re also focused on other areas, such as internal and external fraud detection, using AI to identify hidden fraud—a major problem in insurance. We’re analyzing every process in our business to find AI opportunities, and a dedicated committee is driving these initiatives.”

What are Davies’ next plans for North America?

Mergers and acquisitions will continue to play a key role in Davies’ expansion into this market, with Patel revealing that the UK-based firm is “exploring a variety of opportunities” for acquisitions, targeting regional providers in the TPA (third party administrator) space and expanding its workers’ compensation services nationally.

“While we’ve historically been more regional, our goal is to become a fully national provider,” Patel said. “In addition to workers’ compensation, our focus is on technology and innovation in claims services. Innovation isn’t just about technology—it’s about introducing new services and improving the customer experience.”

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