AI is a technological breakthrough, opening avenues for various things – growing companies at scale, predicting future changes with insights and analytics, and replacing tedious manual work with faster data processing. It is sweeping across industries, changing how we work, live, travel, and learn. However, a tool as powerful as AI, especially in the insurance and financial domain, is more than helping improve lives. It is closely tied to the outcome of somebody’s life and property. When it comes to using AI to do tangible things, like analyzing data from a car accident photo or figuring out the impact of floods and associated costs during a cyclone, the tasks are objective, and the purpose is to make life easy for analysts. However, the question of ethics in AI insurance must be addressed when it comes to data associated with humans.
Human beings and anything associated with them are relevant data that can be analyzed and predicted. In insurance, every data point is personal and sensitive, whether it is a policyholder’s payment history or personal data like address, SSN, contact numbers/email, and health issues required for the underwriting process. It cannot be made available for everyone to access. As soon as people are touched by a data point anywhere in their insurance journey, the question of ethics arises because it entails a breach of their personal information.