Interview with Jens Warkentin, CEO of HDI Deutschland AG

WARKENTIN We have over 80 life insurance companies and over 90 car insurance companies in Germany. There is an overcapacity in the retail business with increasing regulatory challenges at the same time. All this in an environment without any major economic stimulus in Germany. In the face of these challenges, we are focusing on the essentials. That is the decisive factor for success.   

WARKENTIN In view of the current developments in Germany and the insurance market, it is essential to manage strategic initiatives in a targeted manner. The challenges include the weak economy, inflation - especially for vehicle parts and workshop prices -, increasing regulatory requirements such as the Digital Operational Resilience Act (DORA) in the IT sector and the shortage of skilled workers in specialized areas.  

In this context, "focus" is a key value for me: not getting bogged down in too many details, but concentrating on the regulatory framework, which is a prerequisite for our core business, operational and digital resilience and then very targeted investments in our core business.   

Our main focus is on specializing in companies and liberal professions in property/casualty insurance as well as biometrics and annex business in personal insurance. We are strengthening our exclusivity organization in all relevant product areas. An overarching commitment to ensuring this focus is currently one of the most important priorities of my work. 

WARKENTIN In addition to the topics already mentioned, I see generative AI as a key topic for the future. Generative AI is not a temporary phenomenon, but a technology that is now widely available to every employee and customer. The openness and innovative strength of organizations paired with a resilient IT infrastructure will be the key to success in our industry. There will be no successful insurance manager without competence and effectiveness in this technological environment.   

WARKENTIN We have already been using new technologies for years, for example for automation. The topic has taken another huge leap forward thanks to AI and we have already implemented dedicated use cases here too. One example is our internal AI application "Everything at a glance". It quickly provides our clerks with valuable information for processing customer concerns. The topic has not yet established itself on the mass market, and I expect it to spread gradually.  

WARKENTIN As is so often the case with trend topics, the topic is overestimated in the short term and underestimated in the long term. Large Language Models, LLMs, will change the world to the same extent as the Google search mask has done. Both are characterized by ease of use and the rapid provision of the best results. The interaction of employees with LLMs will bring enormous change. An example: Let's take a previously valid justification for replacing legacy systems. IT executives argued that the capacity for programming to maintain systems in the COBOL programming language is declining sharply for demographic reasons. Therefore, systems programmed in COBOL had to be replaced. This logic is no longer tenable today. Even the freely available LLMs can translate logic into COBOL. The modernization of IT systems must therefore be rethought. Language, including programming language, is technologically solved thanks to LLMs.   

WARKENTIN Managers and specialists without an understanding of IT will be virtually non-existent in the future. Dedicated know-how in the IT environment, especially in the field of AI, is in high demand, and not just in the insurance industry. In some areas, we are competing as an employer with tech companies rather than insurance groups. Attracting experts to the insurance industry in this competitive environment remains challenging.  

WARKENTIN In our organization, we live a culture of trust that promotes personal responsibility and commitment among colleagues, creates transparency and strengthens cooperation. For me, the way in which we understand leadership and exemplify it in our day-to-day work is also an important part of our cooperation. We have developed leadership values for HDI Deutschland to which all managers have committed themselves:  

• Each individual is important (to us) and makes an important contribution to our success.  
• We inspire our employees and communicate the value of our work.  
• We take an active role, act courageously, and make decisions.  
• We are open to new things, contribute our own ideas and grow as a team.  
• We make decisions together and take responsibility.  

I am firmly convinced that these principles provide a positive boost to the culture of cooperation in our organization. They get to the heart of what I understand by modern leadership.