Artificial Intelligence (AI) promises to revolutionize how property and casualty (P&C) business gets done. As a result, P&C insurers are uniquely positioned to advance the conversation for ethical AI – not just for their own businesses, but for all businesses. How they might help establish cross-industry regulatory and technology best practices is the topic of a new report for insurers, "Pioneering Ethical AI: The Crucial Role of Property and Casualty Insurers," by the Insurance Information Institute (Triple-I), an affiliate of The Institutes, and data and AI leader SAS.
As a complement to the report, Triple-I and SAS will present the webinar "Pioneering Ethical AI" on Thursday, Sept. 12, 2024, streaming at three convenient times and making it available later on demand. Triple-I and SAS will be joined by industry experts including Jennifer Kyung, Vice President of P&C Underwriting at USAA; Iris Devriese, Underwriter and AI Liability Lead at Munich Re; and Matthew McHatten, President and CEO of MMG Insurance.
"When it comes to artificial intelligence, insurers must work alongside regulators to build trust," said McHatten. "Carriers can add valuable context that guides the regulatory conversation while emphasizing the value AI can bring to our policyholders."
Webinar panelists will discuss key takeaways from the report:
- Regulation of AI has already begun and will only continue to develop. Actions to date reflect a fractured, geographically based approach that will likely result in a fragmented regulatory picture. The need for leaders who understand risk and regulation is imperative – a role for which P&C insurers are uniquely qualified.
- Insurers leverage data but also understand the importance of imagination in navigating a hard-to-predict world. They anticipate risks that have yet to materialize; their forward-looking approach is crucial in the emerging AI landscape.
- Insurers understand the power of data. For centuries, leading insurers have grown proficient in collecting, maintaining, and deriving insights from data. They also understand data’s limitations and have strategies for when these limits are reached.
- Insurers navigate a complex web of regulatory environments including 50 U.S. states, Washington D.C., six other regulatory jurisdictions within North America as well as 200 countries globally. Each has nuanced understanding affecting technological advancement; this knowledge is vital in shaping effective adaptable implementable regulations.
“Insurers are uniquely positioned to help people and businesses maximize opportunities while safeguarding against risks,” said Peter L. Miller CPCU President CEO The Institutes who moderate webinar panel “A forward-looking approach essential navigating transformative landscape ensuring benefits society whole.”
In recent survey insurance leaders by SAS 60% reported organization begun using generative AI; 90% indicated plan invest GenAI next fiscal year.
“Insurance plays crucial role protecting lives livelihoods businesses around world,” said Reggie Townsend Vice President Data Ethics SAS “The global nature influence sector positions model practices emphasize responsible innovation trust essential deployment trustworthy manner critical.”
Triple-I SAS joint report recommends near term insurers strive:
- Implement ethical framework
- Cultivate literacy executives
- Educate employees proper use privacy protection systems security
- Active initiatives
- Risk management consulting policyholders risk
- Communicate actions internally externally
“The accelerating adoption presents opportunity lead time technological disruption,” said Michael “Fitz” Fitzgerald Insurance Industry Advisor SAS “As regulation undoubtably evolve leverage unique risk insights expertise historical proficiency develop deploy ways ethical trustworthy transparent.”
To download report register visit iii.org/ethicalai
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