The transition of risk assessments to a system that calculates risks on an individual level with artificial intelligence (AI), rather than solidarity-based risk pools, can lead to unaffordability and exclusions for customers taking out life or health cover, according to a new report by the Geneva Association.
The Geneva Association, a global association of insurance companies, detailed that AI is used in underwriting, claims processing, customer service and fraud detection within the sector and has several benefits for insurers. This includes an expanded scope for risk pooling, improved claims handling and fraud detection, prevention and mitigation of risks, the ability to reach un(der)served segments of society and the ability to insure risks that were previously considered insurable. Despite this, the association detailed that AI poses challenges for the insurance industry to uphold core...
To continue reading this article...
Join COVER for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, key trend analysis and industry insights.
- Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
- Receive breaking news stories straight to your inbox in the daily newsletter.
- Members only access to monthly programme 'The COVER Review'
- Be the first to hear about our CPD accredited events and awards programmes.
