Strengthening protections around AI must start with sharpening or otherwise adjusting existing regulatory frameworks, says the Insurance Council of Australia (ICA).
In a submission to the Senate Select Committee on Adopting Artificial Intelligence, the ICA gave an insurance perspective on the opportunities and impacts from Australia arising out of the uptake of AI technologies.
Mr Andrew Hall, ICA CEO and managing director, said in the submission, “Any consideration of new legislation must be based on a clear cost-benefit analysis and comprehensive regulatory impact statement that identifies a regulatory gap.”
He said that the insurers have well-established frameworks to identify and mitigate risk. These risk management frameworks mean the insurance industry is well positioned to deploy AI to improve consumer outcomes while successfully navigating the risks.
Nevertheless, there are new AI-driven risks that insurers are navigating. Two examples of risks to insurers posed by AI are:
• Fraud: The use of generative AI to augment photographs that are in turn, used fraudulently to inflate insurance claims.
• Operations: Commercial sensitive data such as proprietary…
