Consumer trust in the insurance sector will erode if professionals aren’t prepared to effectively interrogate automated decision making.
Matthew Hill, chief executive of the Chartered Insurance Institute (CII) (pictured), told delegates at the organisation’s Shaping the Future of Insurance conference in London yesterday that while artificial intelligence (AI) was already changing the world of insurance, it’s vital that providers understand its purpose and limitations.
Changing how insurers work
“AI is already changing how organisations analyse information, assess risk, serve customers and support decisions,” Hill said.
“Used well, it can extend capability, improve consistency, and release people from repetitive work.”
Challenging AI
But Hill maintained the sector also needs to understand AI’s purpose and limitations.
“It means being able to challenge examples, explain a decision, and remain accountable for the result,” Hill continued.
“The more capability we delegate to technology, the clearer we must be about the responsibility we do not delegate with it.
“Professional judgement must be grounded in evidence, open to challenge, and attached to responsibility.”
Eroding trust
Hill added that that ability grows when products are understandable, advice is competent, difficult decisions are explained and claims are handled fairly.
“We cannot reasonably ask customers to trust decisions that we, the professionals responsible for them, cannot understand, explain or challenge,” he said.
