New report explores insurers’ cross-industry opportunity to influence the responsible development and use of AI and to help establish regulatory best practices
CARY, N.C., Sept. 3, 2024 /PRNewswire/ — 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, Pioneering Ethical AI: The Crucial Role of Property and Casualty Insurers, by the Insurance Information Institute (Triple-I), which is an affiliate of The Institutes, and data and AI leader SAS.
As a complement to the report, Triple-I and SAS will present a Pioneering Ethical AI webinar on Thursday, Sept.12, streaming the webinar 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, including:
- 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 – and it’s 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. Insurers 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 they have strategies for when these limits are reached.
- Insurers navigate a complex web of regulatory environments. This includes the 50 US states plus Washington, DC, and six other regulatory jurisdictions, as well as 200 countries and territories globally. Each has a nuanced understanding of how different regulatory frameworks affect technological advancement. This knowledge is vital in shaping AI regulations that are effective, adaptable and implementable.
“Insurers are uniquely positioned to help people and businesses maximize the opportunities of AI while safeguarding 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 as we navigate this transformative landscape, ensuring that AI benefits society as a whole.”
Setting a framework for ethical AI
In a recent survey of insurance leaders by SAS, 60% reported that their organizations had already begun 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 Townsend, Vice President of Data Ethics at SAS. “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.”
Triple-I’s and SAS’ joint report recommends that, in the near term, insurers should strive to:
- Implement an ethical AI framework.
- Cultivate AI literacy in their executives.
- Educate their employees on the proper use of AI, including privacy protection and systems security.
- Become active in ethical AI initiatives.
- Implement risk management consulting with policyholders around AI risk.
- Communicate their actions both internally and externally.
“The accelerating adoption of AI presents an opportunity for P&C insurers to once again lead in a time of technological disruption,” said webinar panelist Michael ”Fitz” Fitzgerald, Insurance Industry Advisor at SAS. “As regulation will undoubtedly 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.”
To download the report and register for the webinar, visit iii.org/ethicalai.
About Insurance Information Institute (Triple-I)
With more than 50 insurance company members – including regional, super-regional, national and global carriers – the Insurance Information Institute (Triple-I) is the #1 online source for insurance information in the US. The organization’s website, blog and social media channels offer a wealth of data-driven research studies, white papers, videos, articles, infographics, and other resources solely dedicated to explaining insurance and enhancing knowledge.
Unlike other sources, Triple-I’s sole focus is creating and disseminating information to empower consumers. It neither lobbies nor sells insurance. Triple-I offers objective, fact-based information about insurance – information that is rooted in economic and actuarial soundness. Triple-I is affiliated with The Institutes.
About The Institutes
The Institutes® are a not-for-profit comprised of diverse affiliates that educate, elevate, and connect people in the essential disciplines of risk management and insurance. Through products and services offered by The Institutes nearly 20 affiliated business units, people and organizations are empowered to help those in need with a focus on understanding, predicting, and preventing losses to create a more resilient world.
The Institutes is a registered trademark of The Institutes. All rights reserved.
About SAS
SAS is a global leader in data and AI. With SAS software and industry-specific solutions, organizations transform data into trusted decisions. SAS gives you THE POWER TO KNOW®.
SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Other brand and product names are trademarks of their respective companies. Copyright © 2024 SAS Institute Inc. All rights reserved.
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