Artificial Intelligence & Insurance Premiums — Sky is the Limit

We’re all adjusting to the positives and negatives of artificial intelligence. It’s proving to be a difficult process and is forcing industries to figure out how to use AI — and quickly. For insurance, AI can diagnose and easily determine risk. It is very cost efficient, makes decisions much quicker than a human being and the cost savings are potentially enormous.

As the questions about AI pile up, insurers are now scrambling to catch up.

Who is responsible if a self-driving vehicle crashes, or causes one? What if an AI system puts out incorrect information? Hiring research can be an issue, and the list of potential troubles goes on and on.

A report in 2023 by Stanford University found a 2,500% jump in AI-related controversies and incidents since 2012. That puts insurers right in the middle. The Deloitte Center for Financial Services predicts AI premiums rising to $4.8 billion by 2032.

Source link: Insurance Business America — https://bit.ly/4uhP0PT