Aflac, [NYSE: AFL]

Katie Webb

As the US Strategy and Innovation Leader at Aflac, what are some of your key roles and responsibilities that you have on a daily basis?

Katie: What I truly love about working at Aflac is that our technology and innovation teams are seen as a big part of the overall business plan, particularly as we continue to look for ways to enhance the services that we provide our customers; the policyholders, as well as our brokers and agents.

A big part of my role is to help translate our corporate vision into an innovation strategy with defined workstreams that help us inform, or arrive at, our desired future state. It’s about identifying the areas that we should be focusing on today, tomorrow and in the future, and building a portfolio of work around those areas to support the company in achieving its vision.Equal parts strategy and execution, the Hatch Innovation Lab is our tech incubator and digital accelerator where we testandlearn, bringingproven new capabilities to market. Being an innovation leader requires a deep understanding of the industry, customer and business to identify intersecting high-value themes that are transformative in nature and having the willingness and perseverance to see it brought to life. At the same time, we must remain customer-focused and always work toward improving the way we serve our stakeholders. I also help drive small cultural changesby contestingthe statusquo or current processes that inform broader strategies on how technology and customer expectations are changing the way we should think about our business.

Digital transformation is a term you’ve likely already encountered. It has transformed countless commercial industries – from manufacturing and retail to hospitality and healthcare. The insurance industry has traditionally been slow to modernize, but it is now clearer than ever that the time is now for insurers to embrace digital transformation. Your views on this.

Katie: We have not only embraced digital transformation, we are leading it in the supplemental insurance industry. There are a few key drivers to considerwhile addressing challenges present in the insurance industry.

Legacy systems: Insurance companies often have complex, legacy systems that have been in place for many years. These systems were built to handle specific tasks and processes, but they can be difficult to update or replace without disrupting the company's day-to-day operations. As a result, insurers have been hesitant to make major changes to their technology infrastructure. But this is a challenge we are taking on. We know it will take certain investments, but we also know that in today’s market, you need to constantly innovate.

Regulation: Insurance is a highly regulated industry with numerous state and federal laws that govern everything from pricing to underwriting. We bear this in mind as we continue to innovate and introduce new products or services, continuously improving the value we provide to customers.

Risk aversion: Insurance companies are in the business of managing risk andhave historically tended to be conservative in their approach to new technologies. They may be hesitant to adopt new technologies or approaches that are untested or that could potentially disrupt their business. I believe this is a legacy mentality that needs to change, which is what we are doing every day. As I mentioned earlier, insurance companies manage risk, we don’t avoid it. But we take a measured approach, again, always with a customer-centric approach.

To help the industry modernize, these challenges should be taken head-on. This may involve upgrading legacy systems, investing in new technologies and working with regulators to create more flexible regulatory frameworks. It may also require a shift in mindset with companies embracing a more innovative and customer-centric approach to doing business.

How Digital Transformation is changing the insurance industry? Please elaborate.

Katie: At the highest level, and possibly most importantly,the buzz around digital transformation alone is changing the conversation around technology and the role of IT, including the relationship between business and technology teams. It’s driving the right dialogand questioning at all levels, from managers to the C-suite,and that really means something. So often, we think about digital transformation being about the outputs — new digital products and capabilities. I personally think transformation is more about the how —how you organize, operate and govern the organization differently to enable a digital-first enterprise.

Another positive outcome of digital transformation is that it’s enabling insurers to better understand and serve their customers in realtime. Machine learning and AI capabilities help insurersanalyze vast amounts of data, draw connections and make accurate predictions/recommendations in seconds that would take humans months to years. These new technologies should be used to better serve customers and drive operational efficiencies across the value chain.

What would be your piece of advice for your fellow peers and leaders?

Seek to understand and embrace what it truly means to be digital. Don't just treat it as a checkbox on your to-do list. Fully commit to it and make it an integral part of your company's strategy. Take bold steps and embrace disruptive technologies, even if they seem daunting. Find a partner or leverage your network to learn how others have approached innovation and transformation given similar headwinds.

Encourage a culture of experimentation and learning within your organization. Create an environment where failure is seen as an opportunity to learn and improve, rather than a cause for blame or punishment. As Steve Jobs said, "I'm convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance."

Finally, remember that digital transformation is not just about technology. It's about people, processes and a customer-centric mindset. Focus on creating a seamless and delightful customer experience and use technology as an enabler to achieve that goal.

Aflac's family of insurers includes Aflac and/or Aflac New York, and/or Continental American Insurance Company and/or Continental American Life Insurance Company.