In its latest ‘Global Insurance Outlook’ report, EY explores the global protection gap from a new perspective, emphasizing the insurance industry’s role in rebuilding trust and providing societal value. Isabelle Santenac, Global Insurance Leader at EY, underscores the pivotal role of trust and transparency in unlocking growth, particularly in the face of disruptive forces such as generative AI, shifting customer behaviors, and the blurred lines in emerging product ecosystems.
Santenac stresses the interconnectedness of trust, opportunities, and challenges amidst disruptive changes, highlighting the industry’s push for customer-centricity and increased customer loyalty. Addressing the exponential growth of artificial intelligence, especially generative AI, she acknowledges the industry’s awareness of the opportunities and risks associated with AI.
The report delves into the challenges of AI misuse, emphasizing the need for ethical use and compliance with regulations, particularly data privacy laws. Santenac discusses the industry’s ongoing efforts with proof-of-concept models for internal processes but notes hesitancy in transitioning these models to client-facing interactions due to associated risks.
Surveying the landscape of generative AI, Santenac reveals limited real-life use cases, both in the insurance sector and more broadly. While proof-of-concept models are being explored, widespread adoption remains cautious, necessitating further understanding and evaluation of potential risks.
Delving into the evolution of generative AI, Santenac underscores its pervasive nature and its impact on customer behaviors and brand equity. She acknowledges the dual role of AI in both posing challenges if not used correctly and providing valuable insights for customer segmentation, product targeting, and partnership decisions.
Santenac distinguishes generative AI from fleeting trends like Blockchain, IoT, and the Metaverse, citing its powerful and lasting impact on various aspects of the insurance proposition. She emphasizes the industry’s imperative to comprehend risks associated with generative AI, including bias, data privacy concerns, and ethical considerations.
As generative AI becomes integral to the industry, Santenac raises concerns about emerging risks, urging insurers to consider protections against misuse, data privacy breaches, and new risks associated with generative AI. She points out the need for insurers to proactively address these concerns to avoid potential pitfalls and legal ramifications.
Insurers are cautioned to assess their policies’ coverage of AI misuse, understand the implications for clients, and decide on risk reduction strategies or potential exclusions. Santenac concludes that insurers must act promptly, drawing parallels with the business interruption lawsuits during the pandemic, to stay ahead of evolving advancements and legal considerations in the AI landscape.
