Our Commitment to Innovation: My Conversation with CIO Kathy Kay

Recently I participated in the annual Global Insurance Symposium which focused on the forces shaping financial services for the next decade. During the CEO panel, we had a robust discussion about the rapid changes underway in our industry as we look toward 2030. So much of what we discussed, and what I shared about Principal, involves harnessing the power of technology to innovate.

Our Chief Information Officer (CIO) Kathy Kay is leading these efforts for us globally, with a focus on innovation that will best serve our customers and communities for decades to come. Kathy joined Principal in May 2020, close to the start of the pandemic – a time that highlighted the critical role technology plays in both enabling collaboration within our teams and supporting the overall customer experience.

Kathy and I recently spoke about the evolution of our technology strategy during a global employee town hall meeting, and I followed up with her afterward for some additional insights on the topic that I wanted to share.

Dan: Since you started at Principal, what big bets have we prioritized in technology?

Kathy: Technology is a core part of our business strategy because it enables everything we do. Our technology must allow us to adapt quickly to meet customer demands, improve speed to market, and deliver more personalized experiences. Doing this requires the right skillsets and workplace culture.

The first “big bet” we made is on our team. We’ve made a major investment in cloud training and certification and we’re taking an innovative approach to employee upskilling. Our tech employees are now empowered to take their development into their own hands, reimagine the ways we solve problems, and anticipate the needs of our customers. ?

?We also set ambitious goals around:

• Building data and analytics at scale so that we can better respond to our customers’ needs and drive growth;
• A cloud-first approach focused on business outcomes and improved customer experiences; and
• Faster turnaround times when delivering customer value.

Dan: I’ve heard you talk a lot about the importance of modernization. How do you think about modernization at Principal?

Kathy: Modernization is a continuous conversation about how we work, lead, and operate differently. Our modernization strategy is informed by a customer-centered, journey-based approach. In activating this strategy, we have identified and divested legacy technology that is no longer relevant, doesn’t meet the needs of our strategy, and won’t meet the customer experience and outcomes we need to achieve.

We’re making investments in a more agile architecture to achieve new capabilities at a pace that we haven’t been able to in the past. This is modernization – and it helps us make faster and smarter decisions to meet the evolving needs of our customers and improve their experience.

Dan: We are hiring tech talent in so many markets around the world. What do you feel differentiates the working experience for technology employees at Principal?

Kathy: Our tech teams not only drive innovation and generate game-changing solutions but are also incredibly purpose-driven. We've made it a key component of our talent strategy to bring in diverse candidates of all backgrounds, and we are proud to currently have women making up 44% of our U.S. based IT leadership. Our global teams allow us to meet the evolving needs of our customers across our international footprint, and we are focused on continuing to invest in our talent by offering flexible work arrangements, ongoing upskilling and development opportunities, and clear paths for career growth.

I want to thank Kathy for sharing these thoughts. I’m excited for the progress Kathy and the Principal technology team have made so far. What they do enables us to deliver on our mission of making financial security accessible to more people and businesses. I’m especially proud of the innovative and inclusive culture we are creating as Kathy grows her team to meet the challenges and opportunities of the future.