New research published by leading embedded insurance provider EIP reveals that UK and European senior insurance professionals are concerned about bias or unfair outcomes in AI-driven processes, but remain bullish on the impact of AI overall.
The research, which involved a survey of 250 senior insurance professionals across the UK and Europe, found that 87% of professionals are concerned about bias. Yet, 90% of respondents expect their claims administration to be managed end-to-end by AI within the next 24 months.
Other key concerns include data security and privacy (23%), regulatory non-compliance (21%), system reliability and errors (21%) and job displacement or staff resistance (20%). For larger firms, regulatory concerns are front of mind at 33%.
Overall, the industry feels least comfortable automating claims submissions (40%), followed by underwriting recommendations (39%) and customer interactions (35%).
Looking ahead, the industry transparent algorithms and decision logs (39%) could help to quell concerns around the use of AI in insurance. This signals the need for industry specific AI capabilities that are built with an understanding of regulatory requirements including control, transparency and auditability.
Overall, 100% of respondents are confident that AI will have a sizeable impact on the insurance industry, with 58% expecting it to drive major efficiency gains and 33% anticipating that AI will transform the industry entirely.
The industry remains agnostic on which specific area is the most ripe for AI disruption with almost half (45%) of respondents already using or exploring AI for customer service and chatbots, 43% for risk modelling and data analytics, 41% for claims management, 40% for underwriting and pricing, 40% for fraud detection, and 38% f