AI evolution continues to pose questions
Artificial intelligence (AI) is in the headlines but its impact on insurance and specifically captives depends on a wide range of issues, a panel at the Cayman Captive Forum has heard.
The session was entitled “AI and your captive.” Moderated by Gareth van den Bergh, associate director, Artex (Cayman), the panel was made up of Henry Cabaniss, director, Southern Glazer's Wine and Spirits and Stan Smith, founder and chief executive of Gradient AI.
The panel agreed that AI is here to stay and that for those who are worried that AI will replace humans in jobs, the consensus at the moment is that it is more likely that a human with AI might.
AI is not a new idea- been discussed for years now, the panel pointed out with the question of is AI will one day overtake humanity being a matter of some debate.
At present machine learning being used today, such as web search results, self-driving cars, pattern recognition and so on. Virtual assistants are also being worked on now, with the introduction of chatbots, translations, facial recognition and personalised shopping.
However, the use of AI technology is already being fiercely debated due to law enforcement abuse fears. The technology is moving fast at the moment and the panel pointed out issues around governance are coming to the fore, with Governments debating regulatory limitations.
AI can be used for decision making, improved accuracy, to solve complex problems and perform high level computations and the panel pointed out that AI can be used for internal audits.
AI can provide a several solutions for captives, the panel pointed out, such as risk management issues, analysis of loss patterns. It can also be used to spot fraud by analysing losses and looking for patterns there.
The panel agreed that AI would struggle with paper-based processes and legacy systems. However, it can replace these with data collection and processing of information. It can also be used in underwriting by pricing where the risk will be, not where it is today.
Finally, the panel pointed out that AI models can also provide confidence by providing estimates and predictions that be used to back up decisions and can also be used to analyst claims management.
