00:00We certainly started the year with a bang.
00:02There is Venezuela concerns over Iran.
00:04Now we think to do with Greenland.
00:05Does it change the type of products that people want in insurance?
00:11I think what needs to change is the mindset of business leaders all over the world.
00:16It's a heightened period of risk, uncertainty.
00:19You mentioned some geopolitical events, but broadly speaking, it's geoeconomic confrontation.
00:24We're watching that unfold here.
00:26You mentioned the tension and anxiety here in Davos over the course of the last several days.
00:31And so it requires a different way of thinking.
00:34Financing those risks at the end of the day is at the end of that thought process.
00:38And so we're working, though, very, very closely across all of our capability set to help businesses
00:44and try to invest with a level of confidence in this environment.
00:47I mean, given there are more heightened, I guess, domestic tensions in the U.S.,
00:51are there more insurance products to go with it?
00:53Well, we have products and capabilities and advisory work that we can help around civil commotion,
01:01social unrest, those kinds of products.
01:04And, of course, they're under greater demand at the moment.
01:08But again, while it's an extraordinary moment in many, many ways,
01:14there are real opportunities for businesses, too.
01:16And so, you know, I expect that this week to be broadly a discussion about geopolitics and AI.
01:22And that's really, you know, what I've experienced, at least.
01:26I mean, on geopolitics and AI, you do have a, you know, a very large company with very almost different units.
01:32How does that change the caliber of what you want to invest in?
01:36Yeah.
01:36I mean, for us, some of this risk and uncertainty is a real opportunity for our business
01:40in trying to help businesses thrive through all of this extraordinary environment.
01:46And so it's an opportunity for bringing our capabilities together.
01:49We've got big assets and capabilities and risk, but also in strategy.
01:54And so it's risk and opportunity.
01:56And I think AI is a great example of big risk and opportunity.
02:00I know you were talking about cyber risk earlier today.
02:03Heightened cyber risk from AI, I don't think gets enough, gets quite enough attention.
02:07But of course, there's job dislocation, economic disruption, business model disruption that comes with AI.
02:13But at the same time, extraordinary opportunities to reinvent the way you do work.
02:17And I'm excited about that for our company, but also we're helping companies think through
02:21how to deploy these technologies in their workplaces.
02:24So how do you use AI?
02:25I mean, is it, you know, used differently in terms of modeling or communication with employees?
02:29And I imagine, again, it's different on for every unit.
02:32We've probably made more progress in our company with productivity tools,
02:37but we're also putting an AI lens on all the analytics.
02:40So all the different models that we've developed, many of them are at risk or in investments.
02:46But putting an AI lens on that, given our scale, gives us a great opportunity to serve our clients better.
02:52And more, a big part of my focus this year will be how can we drive more revenue growth from AI-generated models.
02:58How does it, like, what happened in Venezuela impact, you know, some of the insurance products that you offer in that space?
03:06Well, you know, I would say we have 100 people in Caracas.
03:09So, you know, when those events unfolded, you know, very early in the year, wanted to make sure our people were safe.
03:15But I think, you know, an example of the way business leaders need to think,
03:19you need to immediately look at your assets around the Caribbean, around Latin America,
03:26and see whether or not there's broader contagion or risks like that.
03:29And so, for us, we did scenario planning, and we did a lot of work for our clients in the same way.
03:35What about Greenland?
03:36Have more mining companies reached out to assess whether, you know,
03:40they can be protected more or looking at risk differently?
03:43You know, I think Greenland is, you know, as it relates to rare earths and minerals,
03:49you know, an example of maybe an extreme example,
03:53but, you know, some of the conversations that have been happening more over the course of the last couple of years all over the world.
04:00And so, I think many of those businesses, you know, have developed a framework to think about some of the opportunities
04:06and challenges in this geopolitical environment.
04:10But, again, it's working with our clients, trying to find ways to invest with a level of confidence.
04:15So, I'm sure you've met.
04:16How many clients have you met in Davos?
04:17Oh, dozens, dozens.
04:18And what are they asking you?
04:20Yeah, they're asking us for help.
04:21You know, how do we navigate this risk?
04:23What kind of risk framework can we put in place?
04:27How can we be more agile?
04:29And really, you know, I've heard from a lot of world leaders as well during the course of the week,
04:34and you're seeing some parallels where diversification is a, you know, is a major theme.
04:40But also, again, scenario planning, do more tabletop exercises.
04:45We have an excellent risk framework inside of our company,
04:47and we provide a lot of advice to other businesses that way.
04:50But making sure you're aware of supply chain risks, broader geopolitical risk,
04:54and how that may impact your business is really important.
04:56Are you expecting more shocks?
04:58I mean, risk has changed, right?
05:00If you'd asked me, like, January 1st, or we spoke to loads of economists and said,
05:03the risk of tariffs is behind us.
05:05And then it wasn't at all.
05:08Right, right.
05:09Look, I will say, you know, a lot has happened in the last year, for sure.
05:16And, you know, again, geoeconomic confrontation being this kind of, to me, top risk and heightened risk
05:22that business and world leaders are confronting at the same time.
05:26But I will say, you know, and I think the last couple of weeks are a good example.
05:30Markets are, I think, on a relative basis have been calm and really kind of trying to think through,
05:38okay, where does this all head?
05:39So I think we all recognize, certainly the U.S. administration is operating with a different playbook.
05:45That's going to create some disruption in the short term, maybe medium or long term.
05:49But being patient and being thoughtful about managing through that.
05:54And I'm seeing businesses begin to understand the environment better and making decisions and investing through it.
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