Property/Casualty Insurers Embrace AI Amid Bias Challenges, Survey Reveals

A recent survey conducted by the Ethical AI in Insurance Consortium has unveiled a substantial pivot within the property/casualty (P/C) insurance industry towards the integration of artificial intelligence (AI) in operational decisions. From a modest 14% of carriers utilizing AI, a leap to 66% is anticipated for embedding AI in inline business decisions in 2024. These decisions span various operational facets such as underwriting, claims processing, and risk management, aiming to enhance efficiency, profitability, customer satisfaction, and compliance.

Despite the optimistic adoption rate, the survey uncovers a recurring challenge: bias within AI algorithms. An alarming 97% of insurers already implementing AI have encountered bias issues, signaling a prevalent concern that underscores the importance of ethical AI practices. The survey, reflecting the insights of 250 P/C insurance professionals, further explores readiness for AI transformation, highlighting gaps in preparation, data quality, and talent as potential obstacles.

Panel discussions from the Consortium’s webinar elaborated on strategies for embarking on an AI journey. Insights ranged from the necessity of a supportive organizational culture and high-quality data management to the criticality of continuous monitoring and regulation compliance. Additionally, the conversation addressed the ethical considerations of AI use, emphasizing the necessity for bias minimization and transparent, responsible AI adoption.

The survey and discussions also pointed out the potential benefits of AI, such as significant productivity gains in claims management, while advocating for a balanced approach to AI integration that respects ethical boundaries and regulatory requirements.