P&C insurers to play key role around ethical use of AI: Triple-I

Artificial Intelligence (AI) is anticipated to transfigure how property & casualty (P&C) insurers conduct business, therefore making them positioned to advance the conversation around ethical AI, for businesses worldwide, according to a new study by the Insurance Information Institute (Triple-I), an affiliate of The Institutes, and data and AI firm SAS.

According to the study, the call for insurers to take a leading role in ethical AI is driven by a combination of factors.

One of the key factors highlighted, is how AI can help at every stage of the insurer’s value chain. The technology can even help insurers predict when accidents are likely to happen and prevent them.

As well as this, AI technology unquestionably will influence the insurance sector, whether through the nature of covered
risks or the mechanisms of coverage itself. However, by shaping together an ethical AI approach, insurers can better balance risk with innovation for their own businesses as well as for their customers’.

Peter L. Miller, CPCU, President and CEO of The Institutes, commented: “Insurers are uniquely positioned to help people and businesses maximize the opportunities of AI while safeguarding against the risks. A forward-looking approach is essential as we navigate this transformative landscape, ensuring that AI benefits society as a whole.”

Michael “Fitz” Fitzgerald, Insurance Industry Advisor at SAS, said: “The accelerating adoption of AI presents an opportunity for P&C insurers to, once again, lead in a time of technological disruption. As regulation will undoubtably evolve, insurers can leverage their unique risk insights, regulatory expertise and historical data proficiency to lead all industries to develop, deploy and use AI in ways that are ethical, trustworthy and transparent.”

In a recent survey of insurance figures conducted by SAS, 60% reported that their organisation had already begun using generative AI (GenAI); with 90% indicating that they plan to invest in GenAI in the next fiscal year.

Reggie Townsend, Vice President of Data Ethics at SAS, added: “Insurance plays a crucial role in protecting lives, livelihoods and businesses around the world. The global nature and influence of the sector positions insurers to model practices that emphasize responsible innovation. This is why trust is so essential, and the deployment of AI in a trustworthy manner is critical.”

Lastly, Triple-I and SAS’ study concludes by stating that given insurers’ long experience at managing risk through times of historic change, AI presents an opportunity for P&C insurers to lead in times of technological disruption.

“As regulation will undoubtedly evolve, insurers can leverage their unique insights into risk, regulatory expertise, and historical data proficiency to lead all industries to an ethical, trustworthy, and transparent development, deployment, and use of AI,” the study reads.

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