AI is currently affecting how insurance companies operate, from chatbots that onboard customers, to more accurate risk assessments, and fraud detection. But there is still greater scope for AI in the industry, ideas include advisory services that suggest healthier and safer options for customers as well as flag early signs of property damage.
There are a multitude of related concerns, including:
- The digging for data required for these AI systems will impinge on customer privacy;
- Hyper personalised risk assessments will render some uninsurable;
- Nudging by companies to alter customer behaviour can be seen as intrusive.
Ultimately, there will need to be a conversation between industry and society to determine what is fair and acceptable in the use of AI and data. The CDEI recommends tackling obvious harms today, while working to be increasingly transparent with customers in order to build trust for the future.