Artificial intelligence - questions without answers yet?

Artificial Intelligence (AI) poses a wide range of questions that will need to be answered quickly as regulators start to address this topic, a panel at the Bermuda Captive Conference heard.

The “Powered by AI - exploring the future of Artificial Intelligence” session was moderated by Michael Branco, chairman, Celeste Ventures and included Duncan Card, partner, Appleby, Richard Prior, SVP, business transformation, RenRe and Justin Willmott, vice president, SiriusPoint.

The panel agreed that AI is still an uncertain area that is generating a lot of headlines over its possible uses. However, they stressed that it remains an area that all insurance companies, as well as captives need to watch closely, especially as some regulatory bodies are urging regulatory actions to be taken.

Card said that he expects a lot of class actions in the US over the issue of who exactly owns data, with some insurtechs possibly not understanding the true legal position over this.

The panel also agreed that there is AI is bringing in a new level of complexity to an area that is possibly not well understood yet - and that the velocity of change is increasing.

Willmott described the current state of the AI market as resembling the Wild West as regulations are not coping - adding that this will not last.

However, the panel also agreed that AI could be a massive advantage to captives who can use it to analyse the internal data that their parents have access to, which might even allow them to create new captive products as a result.