Mark Flippen’s Post

Have you checked out our most recent newsletter? We hit on: - Berkshire’s Ajit Jain thoughts on cyber - the Florida reinsurance market and Private equity's low-risk lending push (and the underwriting ripples)… Comment newsletter if you’re interested! #claimspreparation LION Specialty

Great article with several unique perspectives on how AI affects insurance risks. “That mix … needs to be discussed in the context of what additional exposure should we be thinking about affirmatively covering. Should we be thinking about whether there’s additional exposure that we’re facing that we hadn’t faced before, and how artificial intelligence and generative AI really plays into all of that?” he said. Robert Wice Business Insurance Matthew Lerner Jaymin Kim Nadia Hoyte Elisabeth Case Michelle Chia Coalition, Inc. Matt Harrison Michelle Fesi #ai #riskmanagment #insurance #cyberrisk #generativeartificialintelligence

Underinvesting in the commercial P&C insurance underwriting experience is costing insurance companies big in terms of lost business and talent opportunities. Read about it here in our latest blog post that outlines the cost of underinvesting in technology. #ai #ml #data #datalake

⚔️ 𝗗𝗲𝗲𝗽𝗳𝗮𝗸𝗲𝘀 𝗶𝗻 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲: 𝗔 𝗗𝗼𝘂𝗯𝗹𝗲-𝗘𝗱𝗴𝗲𝗱 𝗦𝘄𝗼𝗿𝗱 ⚔️ The rise of artificial intelligence in #insurance is nothing short of revolutionary, with global insurtech financing surging by 40% to $1.27 billion in the second quarter alone! 💰 #AI is opening new doors for insurers—automating tasks, improving pricing accuracy, and speeding up underwriting processes. But, as with any powerful tool, there are challenges to navigate. The latest report from Gallagher Re highlights some crucial points: 1️⃣ 𝗗𝗲𝗲𝗽𝗳𝗮𝗸𝗲𝘀 & 𝗙𝗿𝗮𝘂𝗱 AI's ability to create hyper-realistic fake images and videos, known as deepfakes, is a growing concern in the insurance industry. These sophisticated forgeries can be used to manipulate claims and obscure the truth, making fraud detection more difficult than ever. As Andrew Johnston, global head of #insurtech at Gallagher Re, rightly points out, "Any ability to obscure the truth and make it look very, very real is a problem." 🔍 2️⃣ 𝗧𝗵𝗲 𝗔𝗜 𝗣𝗮𝗿𝗮𝗱𝗼𝘅 While AI offers powerful tools for automating tasks, analyzing vast amounts of data, and enhancing underwriting precision, it’s a double-edged sword. The same technology that can streamline operations can also be weaponized for fraudulent activities. This paradox requires us to be vigilant, ensuring that we harness AI’s potential while mitigating its risks. 💡 3️⃣ 𝗕𝗮𝗹𝗮𝗻𝗰𝗶𝗻𝗴 𝗔𝗰𝘁 The Gallagher Re report also highlights a critical insight: removing the human element entirely from processes like underwriting has proven to be a mistake. AI can assist and enhance decision-making, but it’s the human touch that brings wisdom and ethical judgment to the table. We need to strike a balance where AI and human expertise work hand-in-hand to improve outcomes without compromising integrity. 👥 4️⃣ 𝗜𝗻𝗱𝗶𝘃𝗶𝗱𝘂𝗮𝗹𝗶𝘇𝗲𝗱 𝗣𝗿𝗶𝗰𝗶𝗻𝗴 Another aspect of AI’s double-edged nature is its role in risk assessments, which could lead to individualized pricing. While some customers might benefit from tailored premiums, others could be left uninsurable, raising ethical concerns about fairness and accessibility. ⚖️ Deepfakes are just one of many challenges we’ll face as AI continues to advance, but with the right approach, we can leverage this technology to create a more efficient and secure industry. How can we best prepare for the risks of deepfakes in insurance? How do you think AI will reshape the future of our industry? 🤔 Francesco Jäger, Christiaan Erasmus, Oliver Hechler, Johannes Pump, Jeffers Manricks, Aaron Funccius, Alexandru Armasu, Henry Machleb, Tom Binder, Jeff KAGAN, Björn Koch, MBA, Marguerite Murer Tortorello, Mark Vena, Helen Yu, Engin Dikmen, Nikos Kagkasidis, Michael Weyrauch, Sabine VanderLinden, Scott Luton, Thomas Lipinski, Tyler Cohen Wood CISSP #Deepfake #ArtificialIntelligence #InsuranceFraud #DigitalTransformation

Kareem Saleh has nailed the delicate balancing act that all of us implementing effective AI Governance must execute. Especially in the context of regulatory affairs (and Board Governance), it remains imperative that we can adequately demonstrate our guardrails and early warning mechanisms to tamp down hysteria. #AIGovernance #RegulatoryAffairs #BoardGovernance #GenerativeAI

Digital technology equipped with AI, can prove to be a game changer. Let’s take a look at the benefits, considerations, and best practices you can implement at your insurance brokerage to make AI your co-pilot. Read our new blog! #AI #Insurance #InsureTech

While mortgage companies are increasingly turning to #artificialintelligence to manage tasks, at the same time they face challenges in squaring the use of new technologies with fair lending regulations. And regulators are taking notice. Chief #Compliance Officers are in a difficult situation when it comes to generative #AI, says FairPlay’s Kareem Saleh. He says there are “three inescapable truths” about Gen AI (like ChatGPT): “You can’t explain it; You can’t debias it; You can’t ensure its outputs are consistent." "So how can you ever trust it to make a high-stakes decision about a customer?” Saleh asks rhetorically. “The answer (right now, at least) is: You can’t." "..for tasks like underwriting, pricing, line assignment and collections decisions…well, right now the tech is just too risky.” "That's the bind Chief Compliance Officers face: How to embrace innovation while safeguarding against unexplainable, biased and inconsistent decisions." Saleh says. "Put another way: Ride the AI wave, but don't let it wipe you out!" https://lnkd.in/eY7BwnS2 https://lnkd.in/eyRhTipJ

Chief Compliance officers in finance and insurance are in a Generative AI bind: Gen AI is the new big thing. There’s a prevailing view that if you’re not using it, you’re behind the curve. The promises of Gen AI adoption include unprecedented efficiency and personalization. But at this moment, there are three inescapable truths about Gen AI: 👉 You can’t explain it; 👉 You can’t debias it; 👉 You can’t ensure its outputs are consistent. So how can you ever trust it to make a high-stakes decision about a customer? The answer (right now, at least) is: You can’t. Don’t get me wrong, there are plenty of good applications for Gen AI in banking and insurance. But they’re not yet in areas: Where you need to know what the machine is doing; or Where there’s a high risk of making a mistake that results in customer harm. So financial services and insurance firms are safe using Gen AI for staff training, as a code-writing co-pilot, and/or for generating personalized marketing content. But for tasks like underwriting, pricing, line assignment and collections decisions…well, right now the tech is just too risky. That's the bind Chief Compliance Officers face: How to embrace innovation while safeguarding against unexplainable, biased and inconsistent decisions. Put another way: Ride the AI wave, but don't let it wipe you out!

IntellectAI has recently announced the launch of a new technology which may have the potential to revolutionize the insurance industry. This innovative solution is the world’s first no touch loss run extraction technology, leveraging the capabilities of Gen AI within Intellect’s proprietary eMACH.ai framework. The technology stands out for its ability to process data from loss runs instantly, boasting an impressive accuracy rate of over 95% across a variety of document formats, including handwritten notes, Excel files, images, and PDFs. Sandeep Haridas, the Insurance Business Head at IntellectAI, highlighted the significance of this breakthrough. “We have solved a problem that the industry has struggled with since generating the first loss run output,” he stated. The technology not only accurately extracts and summarises loss run information from diverse document types, irrespective of content complexities such as borderless tables and headerless sheets but also identifies and understands intrinsic hierarchies without requiring human intervention during the extraction process. Haridas emphasized the immediate time and cost savings this technology offers to insurers, agents, brokers, wholesalers, and MGAs. The challenge with loss runs lies in their varying formats and …

We’re excited to announce the Oyster AI Policy Explorer, an LLM-powered feature designed to give modern businesses more control over your insurance coverage! ⚡ In the past, businesses often faced the daunting task of wading through lengthy insurance documents to find the information they needed. This new feature puts essential policy details at your fingertips, providing you with a concise, easy-to-read summary of your coverage, exclusions, and more – access your risk expert 24/7 with AI. What does the AI Policy Explorer offer? - Policy Summary: A clear, straightforward overview of your policy, including key details like coverage limits, deductibles, and expiration dates. 📝 - Coverage & Exclusions: A breakdown of what your policy covers and, just as importantly, what it doesn’t – including references to the specific sections in the policy that mention them. 🛡️ - AI Chat Feature: Have a specific question? The built-in AI chat feature allows you to interact directly with the policy, and our custom AI engine will extract relevant information to provide clear and accurate answers. 💬 This is just one step in a larger journey toward smarter, more intuitive risk management tools that put your needs first. Read more about the announcement: - Blog article: https://lnkd.in/gx9SFq-2 - Press announcement: https://lnkd.in/gCszjQGJ