P&C insurers key to shaping ethical AI practices – Triple-I
P&C insurers key to shaping ethical AI practices – Triple-I | Insurance Business America
Property
P&C insurers key to shaping ethical AI practices – Triple-I
Industry responsible for advancing proper data use and risk management
Property
By
Kenneth Araullo
Artificial intelligence (AI) is set to transform the property and casualty (P&C) insurance industry, positioning insurers to play a critical role in advancing ethical AI practices across industries, according to a new report from the Insurance Information Institute (Triple-I) and SAS, a data and AI technology firm.
The report, titled “Pioneering Ethical AI: The Crucial Role of Property and Casualty Insurers,” explores how P&C insurers can contribute to the development of cross-industry regulatory and technology best practices.
“When it comes to artificial intelligence, insurers must work alongside regulators to build trust,” said Matthew McHatten, president and CEO of MMG Insurance.
He emphasized that insurers can provide important insights to guide regulatory discussions while highlighting AI’s potential value to policyholders.
According to the report, the regulation of AI has already begun, with a fragmented approach based on geographic locations. This is expected to create a complex regulatory environment. P&C insurers, with their understanding of both risk and regulation, are well-suited to help shape AI regulations that are practical and adaptable.
P&C insurers have a long history of using data to assess risk, but they also recognize the importance of anticipating unpredictable future risks. Their forward-looking approach is seen as vital in navigating the evolving AI landscape.
For centuries, insurers have developed expertise in managing data, understanding both its potential and its limitations. This experience will be crucial as AI continues to advance.
The insurance industry operates within a complex global regulatory framework, which includes all 50 states, Washington, DC, and several other jurisdictions, as well as over 200 countries and territories. Insurers’ ability to navigate this web of regulations will be key to shaping effective AI regulations.
Peter L Miller (pictured above), president and CEO of The Institutes, who will moderate the webinar, noted that insurers are in a unique position to help individuals and businesses leverage AI while managing its risks. Miller said a forward-thinking approach is essential in ensuring that AI benefits society broadly.
A recent survey conducted by SAS found that 60% of insurance leaders reported that their organizations have already begun using generative AI, and 90% said they plan to invest in generative AI in the next fiscal year.
Reggie Townsend, vice president of data ethics at SAS, said the insurance sector’s global reach positions it to model responsible AI practices. He noted that trust is essential in deploying AI and that insurers can play a pivotal role in ensuring AI is used responsibly.
The report also recommends that, in the near term, insurers should adopt an ethical AI framework, improve AI literacy among executives, and educate employees on the responsible use of AI, with attention to privacy and system security. Insurers are also encouraged to participate in ethical AI initiatives and offer AI risk management consulting to policyholders.
Michael Fitzgerald, Insurance Industry Advisor at SAS and a webinar panelist, said the growing use of AI presents an opportunity for P&C insurers to lead during a period of technological change.
He added that as AI regulation evolves, insurers can leverage their risk expertise, regulatory knowledge, and data management skills to guide ethical AI development across industries.
As part of the report’s release, Triple-I and SAS will host a webinar on September 12, offering three sessions and on-demand access later. Industry experts, including Jennifer Kyung, vice president of P&C Underwriting at USAA, Iris Devriese, AI liability lead at Munich Re, and McHatten, will participate.
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