Technology solutions help close the gap on risk

SAN FRANCISCO — The laundry room in the home of Richard La Gala, vice president, risk control services innovation, for insurer Sompo International, flooded 12 times in 20 years — an issue that was mitigated by installing leak detection sensors, he said.

Two factors are driving innovation in risk management in business: losses and the widespread personal adoption of technology to improve lives, according to Mr. La Gala, who led a session Tuesday on innovation in risk management at Riskworld, the Risk & Insurance Management Society Inc.’s annual conference in San Francisco.

“The reason we are seeing a lot of applications in the commercial space is because of what we are seeing in the personal space,” Mr. La Gala said. He cited the example of smartphones, everyday devices with installed technology such as global positioning systems, face detection and Bluetooth to help simplify life and manage risk.

Emerging technologies can help companies mitigate both property and people risks. These include “smart buildings” that can detect water leaks, wearables that can correct ergonomics, sensors that can detect dangerous chemical leaks, and applications to track fleet driver behaviors.

“Look at your losses and see what’s there,” Mr. La Gala said.

Mr. La Gala said some issues, such as proving return on investment to company executives, can be managed by partnering with insurers, who can help vet programs and devices and create pilot and test programs to help gather data that shows how losses are mitigated with technologies.

Co-presenter Angelica Caldevilla, risk manager for Kawasaki Motors Corp., U.S.A., said a noticeable increase in frequency and severity of vehicle accidents among the traveling sales staff spurred the company to pilot an application that tracked a driver’s speed and road behaviors, which were then used to provide additional training or, in some cases, rewards.

“We were trying to think of a way to get ahead of these issues and be proactive,” she said of the company’s piloting the telematics app for drivers. “How can we fix this? Really, we wanted to reduce distracted driving. People are talking and texting while driving.”

Some of the challenges in bringing the app to drivers’ phones included privacy issues, she said.

Mr. La Gala said that’s where working with vetted technology companies can help — most have legal advice and guidelines for technology.