Cloverleaf Analytics, the insurance intelligence solutions company, Exavalu, a global digital advisory and consulting company, and insurtech Socotra has launched of the Ethical AI in Insurance Consortium.
Cloverleaf, Exavalu, and Socotra are the Consortium’s initial founding members, with additional founding members to be announced.
The group will host quarterly webinars addressing key issues, as well as producing articles announcing new standards guidelines along with thought leadership papers throughout the year (see How Artificial Intelligence Can Help Insurers Reduce the Inflation Impact?).
The Consortium’s core objectives include the creation of ethical technology development and operations guidelines; advocacy for insurers and the insured; collaboration and knowledge-sharing; and standardization.
The adoption of fresh technology is a critical component of any insurer’s strategy for market leadership and differentiation, and it must be done responsibly, with as much knowledge and perspective as possible
Michael Benayoun, Director of Partnerships at Socotra
The Consortium aims to foster responsible and transparent adoption of artificial intelligence in the insurance sector, bringing together insurance carriers, technology and solutions companies, regulators, and other key influencers.
With the expanding integration of AI in underwriting, claims processing, pricing, and other insurance functions, it is crucial to ensure fairness, transparency, and accountability throughout the industry.
The Ethical AI in Insurance Consortium will address the challenges and opportunities associated with the use of AI in insurance, including algorithmic bias, customer acceptance, data integrity, and other areas used in product development, selling, servicing, and customer support for insurance products.
Exavalu provides advisory and technology services to insurers on how best to achieve digital transformation, core modernization, and enhanced customer experiences, and advancements in AI technology offer a high promise – but often challenge carriers with how to effectively and ethically utilize the AI for decision support
Abby Hosseini, Chief Digital Officer at Exavalu
The first two major initiatives for the Consortium are development of an Ethical AI in Insurance Code of Ethics and launching a research project based on a survey of insurance executives determining attitudes, readiness, and use of Generative AI, large language models, and machine vision.
This uncertainty, coupled with excitement about the advent of Generative AI, is resulting in some carriers struggling with algorithmic bias and the proper orchestration of the AI technology for inline augmented decision making.
Some insurers are succeeding with controlled experiments while others sit on the sidelines. The Consortium is about empowering carriers to achieve real value from AI while ensuring fair, high-quality, transparent, and innovative products and services for the insured.
Consumers are excited and carriers are optimistic as technology continues to show promise for improving products, services, and everyday life
Robert Clark, Founder and CEO of Cloverleaf Analytics
The Consortium will be a strategic asset for carriers to learn best practices as they leave legacy technologies behind while strategically deriving meaningful benefits from the cloud and AI.
The insurance industry has the opportunity to set a quality example of how to use AI responsibly, and this Consortium aims to be a beacon of light for insurers and technology companies that need help on this journey.
The Consortium will reveal the results of its Generative AI readiness, attitude, and adoption survey during a webinar with other members in early Q4. While Cloverleaf sparked the idea for the Consortium, it will not have any additional influence on the projects that the Consortium completes over any other member.
