Cedric Stephens | AI is core to digital transformation

The demand for workers with artificial intelligence-driven skills is accelerating in all industries, globally. This was one of the findings of a report summarised in last Wednesday’s Gleaner titled The Fearless Future: PwC’s 2025 Global AI Jobs Barometer.

PwC is a professional services firm that operates worldwide. Three leading industries where demand for workers with AI skills was the greatest were identified, namely, information and communications, professional services, and financial services. Nearly one billion job advertisements and AI-exposed companies from around the world were polled.

The study urged companies to reskill employees at speed and build trust, as AI depends on strong governance.

Meanwhile, some local individuals have begun to experiment with AI in surprising ways other than as a research tool to help write school papers. One doctor told me about a teenager who sought a consultation. When the session ended, the patient said that the information from the face-to-face interaction was identical to the digital content that was supplied by the popular AI-powered conversational agent developed by OpenAI. AI was the first source of information.

The PwC report caught my eye because of my growing interest in digital transformation, and, more specifically, how it is being applied in educational institutions. Digital transformation is the process by which organisations use digital technologies to fundamentally change how they operate, deliver value to customers, and adapt to changing environments. AI is a core part of digital transformation.

The stimulus for today’s comments was a June 18 Jamaica Observer piece written by BCMG Insurance Brokers’ chief technical director and compliance officer, Ian Miller. This company operates in the local financial services industry.

The context for the piece was the 2025 Atlantic hurricane season, and what was described as “businesses and individuals facing renewed pressure to ensure their insurance arrangements are not just compliant, but resilient”. The headline, ‘Uncertain Times Call for Expert Guidance – Here is Why You Need a Broker Today’, suggested a high standard of expertise.

The key points highlighted in the article were: the current state of the property insurance market, locally and overseas; reinsurance capacity, competition, and costs for Caribbean consumers and funding deductibles for natural catastrophes.

After reading the article a few times, I decided to pose the following questions to the AI app on my desktop. My aim was to compare the AI-generated response to the advice the broking firm offered.

The question posed: The 2025 Atlantic Hurricane Season began on June 1 and will last until November 30. Many weather experts have predicted ‘above average activity’, potentially marked by increased risks of rapid intensification. This compares with 2024’s ‘hyperactive season’. The following questions are posed against that background. and in the context of small island developing states in the Caribbean and the threats posed by climate change. 1) What were some of the key lessons that were learned during the 2024 season? 2) What are some of the essential pre-storm tips risk professionals recommend to protect households, ensure business continuity, keep employees safe, and file insurance claims to achieve maximum recovery? 3) Are the recommendations evidence-based, and, if so, describe them.

The response

A) Lessons learned from the 2024 hurricane season (in Caribbean SIDS context):

1. Rapid intensification of hurricanes is increasing Hurricane Beryl became the earliest Category 5 in early July, highlighted how warming seas are fuelling faster intensification.

2. Climate change aggravates events: Elevated Sea surface temperatures are doubling the odds of hyperactive or extreme seasons, intensifying storms in SIDS.

3. Compounded economic impact: Beryl slashed 16 per cent off Grenada’s gross domestic product and 30 per cent off Saint Vincent & the Grenadines,’ underlining vulnerability of small island economies.

4. Regional scenario planning works: The Organisation of Eastern Caribbean States and CDEMA had run preparedness scenarios well in advance. That groundwork enabled rapid mobilisation of potable water, relief, and safety messaging.

5. Most fatalities occur off-vehicle: Consistent with wider findings, injuries/deaths often happen during boarding/deboarding or when drivers misjudge storm speed – community awareness remains vital.

It was surprising that, even though the AI feature should have known that the questions were posed by someone residing in Jamaica, there was no information about the economic impact that Beryl had on Jamaica’s GDP. Also, none of the local policymakers who participated in the post-Beryl recovery efforts spoke about the lessons that were learned from that hurricane.

B) Pre-storm recommendations for households and businesses:

1. Households:

• Secure property assets: Reinforce roofs, shutters, doors; elevate equipment above flood levels.

• Backup documentation: Photograph and digitally back up ownership records, IDs, and insurance policies.

• Emergency kits: Assemble food, water, first-aid, medicines, flashlights, batteries.

• Evacuation and shelter plans: Know safe routes and shelters; rehearse evacuation.

2. Businesses and continuity:

• Comprehensive business continuity plan (BCP): Includes crisis communication, remote work, backup data centres.

• Insurance audits: Confirm adequacy of wind, flood, business interruption, ingress/egress coverage; review deductibles and waiting periods.

• Pre-season asset inventory: Document property via photos/videos; tag and register assets, noting serial numbers.

• Emergency team and drills: Form a disaster response team; conduct regular drills and update emergency contact protocols.

3. Employee safety:

• Crisis communication systems: Ensure all employees can be reached pre-, during, and post-storm.

• Remote work policies: Flexible work arrangements when disaster disrupts physical operations.

• Training: First aid, shelter-in-place procedures, evacuation protocols.

4. Insurance and claims:

• Detailed record-keeping: Track all storm-preparation activities (dates, invoices, repairs).

• Timely reporting: Submit claims promptly with supporting documents and photos.

The broker’s focus on insurance and reinsurance market conditions led me to pose more questions to better inform the comparisons.

Below is a summary of the AI-generated response regarding Caribbean property insurance market:

a) Current situation and challenges:

• High and rising premiums: Climate hazards like hurricanes, floods, and heat are increasing insurance costs and reducing coverage accessibility leading to emerging ‘insurance deserts’ in high-risk areas.

• Underinsurance remains prevalent: Only four per cent of disaster damage in the Caribbean are insured, compared to 30 per cent in North America.

• Regulatory complexity and talent shortage: Insurers must navigate multi-faceted regulations while dealing with a small pool local talent and legacy systems. These conditions impede efficiency.

b) Reinsurance capacity: The capacity for Caribbean risks is not on the decline as it was a few years ago. However, regional insurers must compete with their counterparts in The Cayman Islands and Florida. Price increases and more coverage restrictions are common. These conditions will place pressure on local consumers.

An in-house technology team supporting innovation through platforms that make policy management more accessible and efficient is not enough for today’s world, as the broker suggested. Starting the digital transformation journey must be the next goal. That course of action will fundamentally change how value is created for customers and help the company adapt in the new environment.

The Whole Hearted Company Services Limited – an auto repair shop, also called W.H. Car Service, and referred to on the streets as the ‘Chinese Mechanic Shop’, located at the borders of St Andrew and St Catherine – is an another example of a business enterprise that has recognised that local consumers have become more sophisticated and are demanding new ways of doing things.

Cedric E. Stephens provides independent information and advice about the management of risks and insurance. For free information or counsel, write to: aegis@flowja.com or business@gleanerjm.com