SIRC Panel underlines AI’s potential, but ethics are a concern

The reinsurance industry, long characterised by its slow pace of change, stands at the precipice of significant change as artificial intelligence (AI) makes inroads into its operations.

That was a key conclusion from a panel discussion at the Singapore International Reinsurance Conference on November 5. It included John Maroney, CEO, Global Asia Insurance Partnership; Wenwen Chen, analyst, S&P Global Ratings; Sofia Kyriakopoulou, chief data and analytics officer, SCOR; Anne Lohbeck, a managing director and member of the P&C Reinsurance Management Team, Swiss Re; and Ian Chapman-Banks, CEO, SQREEM Technologies. They examined and debated AI’s potential, the challenges it brings, and how the industry can best adapt.

Maroney started by discussing his organisation’s mission to tackle emerging risks in Asia. With climate change, shifting demographics, and rapid urbanisation, the region faces unique challenges that require innovative approaches. Maroney emphasised that AI could be a powerful tool in forecasting and mitigating these risks but stressed that collaboration between regulators, insurers, and reinsurers is essential for effective implementation.

Chen underscored this point by noting the significant investments that publicly listed insurers are making in AI technology. These investments are directed toward enhancing product offerings and refining claims monitoring processes.

“Insurers need to leverage their data assets smartly.”

Kyriakopoulou noted that AI could significantly streamline underwriting processes and integrate complex regulatory requirements. However, she stressed that human expertise is needed to interpret and implement these insights effectively.

Chapman-Banks brought up the potential for big tech firms such as Google, Microsoft, and Amazon to disrupt the insurance industry. With their vast resources and technological capabilities, these companies could pose a formidable challenge to traditional insurers.

The panel discussed the need for clear data governance policies to ensure the ethical use of AI. Chen highlighted the role of data quality and its impact on effective AI deployment. “Insurers need to leverage their data assets smartly to make well-informed decisions and price their products accurately,” she explained. Transparent and explainable AI models were emphasised as vital for building trust within the industry and among consumers.

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