Kathmandu. Insurance companies have been advised to build more trust in artificial intelligence (AI) by using customer information and determining data handles from technology. <\/p>\n
Olive Lam, senior vice-president of Lockton Companies LLC, told Insurance Asia: “Using publicly available data for AI-based analysis of customers can erode trust. \u2019<\/p>\n
According to Lam, customers may worry that insurance companies are drawing conclusions about them from third-party sources, misinterpreting sensitive information or conducting analyses that don’t reflect their actual actions. These concerns are important. That’s because insurance companies are expanding the use of AI in areas such as customer service, claims and risk analysis. <\/p>\n
According to a report by Smart Communications LLC, only 38 percent of customers find AI useful in insurance-related tasks. While 84 percent of companies want to disclose when AI was being used. <\/p>\n
Instead, insurers can rely more on information directly from customers, including past claims and incidents, internal risk assessments, loss-control records and site or facility features, according to Lam. “Insurance companies can then combine those records with information selected from their own databases,” he said. That includes loss experience, underwriting guidance and comparative risks. \u2019<\/p>\n
Lam said this approach could make AI analytics more useful and easier for customers to understand. “It can also improve its reliability,” he said, adding that using publicly available information can also raise privacy concerns. However, the data itself is not confidential. Customers may raise questions about why information about them was collected and how it was used to reach decisions. \u2019<\/p>\n
Oki Stefans, partner at EY-Parthenon Indonesia Strategy and Transactions, said insurance companies also need clear rules for the use of AI. “Insurers who want to incorporate AI into their operations need to establish strong governance frameworks, transparency and clear accountability to gain trust not only from customers but also from other stakeholders,” he told Insurance Asia. \u2019<\/p>\n
According to Stefans, when implementing AI, insurance companies should pay attention to data privacy, the use of third-party data, and regulatory requirements. “When AI systems are modified, they should regularly review security measures,” he said. It will also be important to provide clear information about how AI is used, how decisions are made, and how risks are managed. \u2019<\/p>\n
A report by Smart Communications found that 29 per cent of customers stopped doing business with an insurance company due to concerns about data privacy or transparency. Globally, about 63 per cent of customers said they would seek services from another insurance company if their communications did not meet expectations. In Singapore, the number was 67 per cent. <\/p>\n
According to Lam, insurance companies that use information about a customer’s actual risk can provide a clear basis for AI for analysis, rather than relying on large amounts of third-party data. “Responsible use of AI should ultimately improve outcomes for both the customer and the insurance company,” Stephens said. “However, accountability and clear communication must also be maintained during its use.” \u2019<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. Insurance companies have been advised to build more trust in artificial intelligence (AI) by using customer information and determining data handles from technology. Olive Lam, senior vice-president of Lockton Companies LLC, told Insurance Asia: “Using publicly available data for AI-based analysis of customers can erode trust. \u2019 According to Lam, customers may worry that […]<\/p>\n","protected":false},"author":16,"featured_media":317700,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45044,45159],"tags":[],"class_list":["post-317719","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/317719","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=317719"}],"version-history":[{"count":1,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/317719\/revisions"}],"predecessor-version":[{"id":317720,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/317719\/revisions\/317720"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/317700"}],"wp:attachment":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=317719"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=317719"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=317719"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}