Artificial intelligence (AI) can allow insurers to provide more personalised services as well as coverage for risks that were previously difficult to insure. Enhanced risk assessment and claims management, as well as lower costs due to increased efficiency, may also increase the affordability and attractiveness of insurance.
Alongside, however, comes a complex set of challenges, including concerns around data privacy, bias, discrimination and exclusion. Several legislative and regulatory initiatives have emerged in response to these risks.
This report analyses regulatory developments for AI applications as well as their impact on the insurance sector, and evaluates how regulators and policymakers can work to manage AI-related risks in a way that balances customer protection and innovation.