Companies could be in danger of making key risk information publicly available when arranging business insurance cover because insurers might use or pass the data on to train artificial intelligence (AI) and machine learning technologies to improve their underwriting.
Insurers are increasingly embracing AI-based technologies to cut costs, achieve quicker turnaround times, expedite claims processing, and provide more accurate risk analysis for their underwriting as the sector becomes more competitive.
But this might pose serious risks to companies buying insurance if the risk data used to price their insurance premiums is used to train insurers’ AI algorithms or shared on commonly used chatbots like ChatGPT, which can also retain rights to the intellectual property.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.