Society is entering the age of artificial intelligence. Significant players in every industry are implementing narrow artificial intelligence (NAI) to improve their business processes. As a consequence, no element of the global insurance business model will be untouched. Most insurance product lines will need to be reengineered to reflect the new risks arising out of the adoption and deployment of NAI, according to Pete Thomas, President of GC Genesis, Guy Carpenter, and Samantha Busenhart, Vice President, Distribution and Thought Leadership, Guy Carpenter.
Insurers looking to take advantage of the opportunities that will result from the adoption of NAI or looking to mitigate the unintended risks associated with NAI will have to do research or partner with experts. While NAI’s algorithms are becoming increasingly ubiquitous and autonomous, they are not without fault. It is helpful to understand the actual capabilities of NAI as opposed to its marketed aspirations and to determine the real risks versus media hype. It is important that algorithms are evaluated on their utility, transparency, accountability, explainability and propensity for bias. There is nothing easy about this kind of evaluation.