The 27-page Centre for Data Ethics and Innovation paper, titled AI and Personal Insurance, takes a closer look at the potential use of AI across the profession, how AI is used today and explores the arguments for and against such applications.
The report recommended professionals engage with the public to reach a consensus on what constitutes a responsible use of AI and data for example by deciding under what conditions it is acceptable to process data from social media platforms or to use algorithms to predict people’s willingness to pay higher insurance premiums.
The CII encouraged the profession to consider whether tighter controls need to be put in place on the use of personal characteristics in pricing.
Keith Richards, managing director at the CII, said: “The report rightly identifies common ground on what constitutes an ethical use of AI is required and we are pleased the authors state the Chartered Insurance Institute’s Digital Companion to their Code of Ethics is a step in the right direction.
“We agree the profession needs to involve the wider public in the debate about how insurers should be able to nudge policyholders using AI and when it might be unacceptable for insurers to use AI to infer characteristics about their customers.”