Modern Insurance Magazine Issue 60

FEATURES
Building Trust through
Responsible AI in Claims:
Championing a Voluntary
Code of Conduct
One of the core tenets of insurance is that of trust. Our customers
must believe that monies will be available to meet their costs and
settlement will be on a fair and equitable basis in the event of a
valid claim. Without that trust, the whole ecosystem of insurance
comes under threat. Customers will feel short-changed, deceived,
and even mutinous – perhaps to the point where fraudulent
behaviours are seen as somehow acceptable.
Just a
Thought
from Eddie Longworth
Therefore, it seems obvious that claims
settlement systems must reflect that core
principle in both design and application.
Be it a human-centred, technology
driven, or hybrid decision-making modus
operandi, there is a requirement upon us
to deliver a service that is transparent,
accountable, and beyond reproach.
What then of the role of AI as we navigate
the waters of future developments?
How are we to ensure that there is never
any danger of AI mismanagement,
misunderstanding, or unintended
consequences breaching the fundamental
principles of a trust-based relationship?
It seems to me that one way is for those
involved in the AI world – in whatever
guise that may take - to agree on a
voluntary Code of Conduct that will guide
their thoughts, deeds, and activities. An
AI ‘Ten Commandments’ perhaps, that
drives us to ever higher standards of
ethical behaviours, helping to ensure that
the amazing AI-driven developments
of the coming years are not ‘the tail
wagging the dog’. However, as much
as we can marvel at AI’s extraordinary
feats of analysis, insight, and automated
decision-making, we must always have a
set of guiding principles as our reference
points, that help to avoid poor practices
or simply the mistaken application of the
power of AI.
We all know the Little Britain catchphrase
of ‘computer says no’, and we’ve all
met this barrier to trust and mutual
comprehension in our daily interactions
with financial institutions and other
service suppliers. Imagine that frustration
and breakdown in relationships when writ
large on the AI platforms of the future.
Like any technology, we must have regard
not only for what we can do with it, but
also what we should do with it.
That old dictum of being comfortable
with headlines on the front page of the
Daily Mirror if anything were to go wrong
might well be the best advice that we
could give ourselves as we contemplate
a future world of claims, in which
technology will eclipse human beings as
the primary decision makers.
Of course, we must also grasp
opportunities offered by ethical AI
applications with both hands. No Code
of Conduct should ever act as a brake on
the rapid development of this amazing
technology. Instead, it should serve as
a great catalyst for all stakeholders to
mutually agree the ‘stake in the ground’
that we will need if we are to retain public
trust in our industry.
Because, and I repeat, without that trust
there is no solid foundation on which we
can build. Technology is not the driver
of our industry but the enabler. It is
not AI that ultimately determines who
is right and who is wrong, whether a
claim should be paid or not, if a claim is
fraudulent or valid.
Instead, it is the human beings behind
this technology on which our future
depends, and a voluntary Code of
Conduct can only serve to improve
the chances of us getting it right -
to the benefit of all the players and
policyholders for generations to come.
Join me in advocating for such an
approach, and feel free to contact me
directly with your thoughts and support:
eddie.longworth@jelconsulting.co.uk
Eddie Longworth,
Director, JEL Consulting
MODERN INSURANCE | 43