AI Governance in Underwriting and Claims: Responding to 2024 Regulations on Generative AI, Bias Detection, and Explainability in Insurance Decisioning
DOI:
https://doi.org/10.63282/3050-9416.IJAIBDCMS-V5I1P116Keywords:
Artificial Intelligence (AI), Underwriting, Claims Processing, Generative AI, Bias Detection, Explainability, Insurance Regulations, 2024 AI Guidelines, Governance FrameworkAbstract
The introduction of Artificial Intelligence (AI) to the insurance sector has changed the nature of the business of underwriting and claims and made it more efficient and more correct. However, as the technologies of AI have been adopted relatively fast, the concerns of accountability, fairness, and transparency emerged. In response to this, the standards that regulatory bodies have put in place are highly strict in an attempt to render the deployment of AI to be ethical. In the present paper, the author speaks about the evolution of AI governance in insurance sector where the authors focus on the 2024 regulatory framework that encompasses such issues as generative AI, detection of bias, and explainability. We explain how such regulations affect the way of underwriting and claims practices, comment on compliance techniques, and present a model of responsible AI regulation
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