Artificial intelligence, with its ability to analyze large amounts of data, may be the next great thing that is going to transform insurance and perhaps the world. But whatever good AI brings will be accompanied by side effects that may not be so great or that at least need to be managed.Executive SummaryLiberty Mutual’s Ian Mackenzie, speaking at the RIMS annual conference this year, shared a list of six side effects that come with using artificial intelligence in insurance, as well as six principles to help guide AI thinking and policies going forward.
There is an endless amount of data out in the world, more than humans could ever analyze in a timely manner, according to Ian Mackenzie, managing director at Liberty Mutual’s Corporate Strategy and Research team, which acts as an inside consultant. Insurance “at its heart” is analyzing data to price risk, and AI offers the opportunity to look at a lot more data a lot more quickly, and in real time rather than in single snapshots, Mackenzie told risk managers at the 2019 annual conference of the Risk Management Society in Boston.