New report examines cross-sector opportunities for insurers to influence responsible development and use of AI and help establish regulatory best practices
CARY, North Carolina, September 3, 2024 /PRNewswire/ — Artificial intelligence (AI) promises to revolutionize the way property and casualty (P&C) insurance is conducted. As a result, P&C 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-industry 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.
Triple-I and SAS will bring together industry leaders to explore how P&C insurers can transform the industry through ethical AI.
In addition to the report, Triple-I and SAS will present a Webinar on pioneering and ethical AI on Thursday, September 12, by streaming the webinar at three times convenient to you and making it available on-demand at a later date. Triple-I and SAS will be joined by industry experts including Jennifer KyungVice President of P&C Underwriting at USAA; Iris DevrieseUnderwriter and Head of IA Liability at Munich Re; and Matthew McHattenPresident and CEO of MMG Insurance.
“When it comes to artificial intelligence“Insurers must work alongside regulators to build trust,” McHatten said. “Insurers can add valuable context that guides the regulatory conversation while highlighting the value AI can bring to our policyholders.”
Webinar speakers will discuss key takeaways from the report, including:
- AI regulation has already begun and will only continue to develop. The actions 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 for which P&C insurers are uniquely qualified.
- Insurers leverage data, but also understand the importance of imagination to navigate a world that is difficult to predict. Insurers anticipate risks that have not yet materialized. Their forward-looking approach is crucial in the emerging AI landscape.
- Insurers understand the power of data. Over the centuries, leading insurers have become experts in collecting, storing and exploiting data. They also understand the limits of data and have strategies to manage it when those limits are reached.
- Insurers navigate a complex web of regulatory environments.This includes all 50 US states plus Washington, DCand six other regulatory jurisdictions, as well as 200 countries and territories around the world. Each has a nuanced understanding of how different regulatory frameworks affect technological advances. This knowledge is essential to shaping AI regulations that are effective, adaptable and enforceable.
“Insurers are uniquely positioned to help individuals and businesses maximize the opportunities of AI while protecting themselves against the risks,” said Peter L. MillerCPCU, President and CEO of the Institutes, who will moderate the webinar panel. “A forward-looking approach is essential as we navigate this transformative 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 AI,and 90% said they plan to invest in GenAI in the next fiscal year.
“Insurance plays a crucial role in protecting lives, livelihoods and businesses around the world,” said Reggie TownsendVice 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 manner is essential.”
The joint Triple-I and SAS report recommends that in the short term, insurers should strive to:
- Implement an ethical framework for AI.
- Cultivate AI mastery among their leaders.
- Train their employees on the appropriate use of AI, including privacy and system security.
- Get active in ethical AI initiatives.
- Implement risk management advice to policyholders around AI risk.
- 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.
About the Insurance Information Institute (Triple-I)
With more than 50 member insurance companies, including regional, superregional, national and global companies, the Insurance Information Institute (Triple-I) is the premier online source for insurance information in the United States. The organization’s website, blog and social channels offer a wealth of data-driven research studies, white papers, videos, articles, infographics and other resources dedicated exclusively to explaining insurance and increasing knowledge.
Unlike other sources, Triple-I focuses solely on creating and disseminating information to empower consumers. It does not lobby or sell insurance. Triple-I provides objective, factual insurance information based on economic and actuarial soundness. Triple-I is affiliated with The Institutes.
About the institutes
The Institutes® is a nonprofit association of diverse affiliates that educate, elevate, and connect people in the essential disciplines of risk management and insurance. Through the products and services offered by the Institute’s nearly 20 affiliated business units, individuals and organizations are empowered to help those in need by focusing on understanding, predicting, and preventing loss to create a more resilient world.
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About SAS
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