Listen to this articleWhile AI technologies have revolutionized the insurance industry, it is not without regulatory, litigation, and reputational risk to those insurers. A quickly changing landscape on both the federal and state levels only makes these risks more complex.
This month, the AI-X team at Faegre Drinker launched an algorithmic testing and AI governance and risk-management service for insurers.
Insurers use AI models to help them make business decisions. These models can help them to better gauge risk and give customers tailor-made premium pricing. It can also help with them underwriting, claims decisions, fraud detection, utilization management, better marketing, and customer engagement.
While AI has assisted insurers, as well as other businesses, in being more efficient and accurate, there are concerns about potential unfair discrimination that can arise from the use of AI models. These are concerns about accuracy, unintended discrimination against members of protected classes, and lack of transparency and explainability. This can open up insurers to significant risks.
Law firms have jumped in to help companies mitigate those risks. One of those is Faegre Drinker….
