Some details on an upcoming webinar that will examine the ethical issues surrounding the deployment of AI in the insurance industry;
Artificial intelligence (AI) promises to revolutionise the way property and casualty insurance business is conducted. As a result, property and casualty insurers are uniquely positioned to advance the conversation about ethical AI, not just for their own operations, but for all businesses. How they could help establish cross-sector regulatory and technology best practices is the subject of a new report, AI pioneering ethics: the crucial role of P&C insurersby the Insurance Information Institute (Triple-I), which is a subsidiary of The Institutes, and data and AI leader SAS.
In addition to the report, Triple-I and SAS will present a Webinar on pioneering and ethical AI On Thursday, September 12, the webinar will be streamed at a time convenient to you and will be available on-demand at a later date. Triple-I and SAS will be joined by industry experts including Jennifer Kyung, VP of P&C Underwriting at USAA; Iris Devriese, Underwriter and Head of IA Liability at Munich Re; and Matthew McHatten, President and CEO of MMG Insurance.
“When it comes to AI, insurers need to work with regulators to build trust,” McHatten said. “Insurers can add valuable context that guides the regulatory debate while highlighting the value AI can bring to our policyholders.”
Webinar speakers will discuss key takeaways from the report, including:
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AI regulation has already begun and will only continue to grow. The steps taken so far reflect a fragmented and geographical approach that will likely result in a fragmented regulatory picture. Having leaders who understand risk and regulation is imperative – and this is a role that P&C insurers are uniquely qualified to fill.
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Insurers understand the power of data. Over the centuries, leading insurers have become experts in collecting, storing and leveraging data. They also understand the limitations of data and have strategies to manage it when those limitations are reached.
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Insurers operate in a complex web of regulatory environments. This includes all 50 U.S. states, Washington, D.C., and six other regulatory jurisdictions, as well as 200 countries and territories around the world. Each has a nuanced understanding of how different regulatory frameworks impact technological advances. This knowledge is critical to shaping AI regulations that are effective, adaptable, and enforceable.
“Insurers are uniquely positioned to help individuals and businesses maximize the opportunities offered by AI while protecting themselves against the risks,” said Peter L. Miller, CPCU, president and CEO of the Institutes, who will moderate the webinar panel. “A forward-looking approach is essential to navigate this changing landscape, ensuring that AI benefits society as a whole.”
Defining a framework for ethical AI
In a recent SAS survey of insurance executives, 60% said their organizations had already started using Generative AIand 90% said they plan to invest in GenAI in the next fiscal year.
“Insurance plays a critical role in protecting lives, livelihoods and businesses around the world,” said Reggie Townsend, vice president of data ethics at SAS. “The global nature and influence of the industry allows insurers to lead by example with a focus on responsible innovation. That’s why trust is so critical, and deploying AI in a trusted way is essential.”
The joint Triple-I and SAS report recommends that in the short term, insurers should strive to:
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Implement an ethical framework for AI.
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Cultivate AI mastery among their leaders.
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Train their employees on the appropriate use of AI, including privacy and system security.
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Get active in ethical AI initiatives.
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Implement risk management advice to policyholders around AI risk.
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Communicate their actions internally and externally.
“The accelerated adoption of AI presents P&C insurers with an opportunity to re-establish leadership in a time of technological disruption,” said Michael “Fitz” Fitzgerald, Insurance Industry Advisor at SAS, speaking at the webinar. “With regulations set to evolve, insurers can leverage their unique risk insights, regulatory expertise and mastery of historical data to incentivize all industries to develop, deploy and use AI ethically, reliably and transparently.”
To download the report and register for the webinar, visit iii.org/ethicalai.
