New code of conduct for insurance market using AI
Source: Middle East Insurance Review | Mar 2024
A new code of conduct for the insurance industry for using AI has been put in place. Created by a collaborative group of 127 experts, the new initiative aims to establish and uphold “the highest standards of behaviour and ethical responsibility” when planning, designing, or utilising AI in the management and settlement of insurance claims.
The group of experts, led by JEL Consulting director Eddie Longworth, also included the former Aviva UK COO Hugh Hessing. The steering committee members also include DWF head of insurance Simon Murray and SAS UK and Ireland head of AI and ethics Prathiba Krishna.
A part of the code involves governance mechanisms to define and manage compliance when designing and implementing claims management systems and processes. This code will ensure that decisions and actions involving AI in claims are not only recorded and audited but are also ethically justifiable.
The code also establishes the right of claimants challenging AI-led decisions to seek redress through communication with skilled human input to explain the decision-making process. This prioritises ethical practices and addresses any concerns raised by claimants, ensuring transparency and accountability throughout.
This new code is voluntary and has no legislative, authorised or regulatory basis. The working group stated it is not intended to duplicate or replace other initiatives that may, in the future come from regulatory bodies such as the Financial Conduct Authority.
Signatories to the code can be organisations or individuals who will make a pledge to “uphold the highest standards of behaviour and ethical responsibility.” M