How is AI impacting the insurance industry?

How is AI impacting the insurance industry? | Insurance Business Canada

Technology

How is AI impacting the insurance industry?

President shares his thoughts on navigating opportunities and risks

Technology

By
Mika Pangilinan

Artificial intelligence (AI) is reshaping industries across the board, and the insurance sector is no exception. Cameron Copeland, president of Specialty Program Group Canada, recently shared his insights on the impact of this change, emphasizing the dual nature of its effects.

In an interview with IBTV, Copeland discussed how AI brings opportunities to streamline workflow while introducing new risks that demand careful management.

According to Copeland, embracing new tools and technologies is vital to staying competitive and providing improved services to clients.

He said AI would undeniably help firms enhance their operational efficiency, given its ability to automate routine tasks, accelerate decision-making processes, and reduce administrative overhead.

But he also noted that businesses employing AI-driven automation introduce new risks.

“Most businesses have bigger exposures now to IP and privacy and cyber than they do to property and casualty,” said Copeland. “And so, we also have to transition and innovate on products [to ensure that] we’re responding to technological changes that affect our clients.”

Copeland highlighted the need for the industry to react swiftly to provide coverage for emerging risks as AI adoption continues to rise.

“There’s a lot of pressure always to keep moving forward and adopting the latest technology,” he said. “Nobody wants to hear that we don’t know enough about it to insure it.”

Another area of concern is the potential for biases in AI systems. He suggested taking a more cautious and balanced approach, where AI generates initial solutions coupled with human oversight and validation in the final stages.

For instance, when using AI to generate code for a product, Copeland emphasized the importance of double-checking that code.

“If you don’t fact check that code, then you could be letting a bug out in your product that you didn’t intend to and maybe wouldn’t have there had you coded it yourself,” he said.