AI
The Internet of Things ( IoT ) is playing a pivotal role in this transformation . Connected devices in homes , vehicles and even on individuals are providing insurers with real-time data , enabling more accurate risk assessment and proactive risk management .
“ LexisNexis Vehicle Build allows insurance providers to price based on the Advanced Driver Assistance System ( ADAS ) features on the car . An ADAS classification system was created using machine learning to scan millions of lines of car manufacturer vehicle data to logically sequence and classify vehicle safety features and the component ’ s intended operation or purpose ,” says Alan .
Improving trust and efficiency As insurers continue to navigate the complex landscape of technological innovation , the focus on data security and privacy has intensified . The implementation of regulations such as the General Data Protection Regulation ( GDPR ) in Europe and the California Consumer Privacy Act ( CCPA ) in the United States has necessitated robust data governance frameworks .
“ Regulatory compliance is paramount in AI implementation for insurance , ensuring adherence to stringent data protection , fairness , and transparency laws . Compliance with regulations like GDPR and HIPAA is essential to safeguard customer data , maintain fairness in AI decisions and avoid legal consequences ,” Daniel highlights .
73 %
of insurers are using or exploring AI to reduce operational costs
39 %
of insurers are using or considering AI for underwriting
“ Steps to achieve compliance include educating teams on relevant regulations , designing AI systems with ethical considerations , implementing robust data governance practices , and conducting thorough risk assessments .” Ryan James , Managing Director of nFocus Testing , says : “ Too often , quality assurance principles and practices are left until the end of a project .
“ This can be damaging because if any errors or problems have occurred during the initial installation , those issues can escalate into significant conflicts elsewhere .”
He recommends implementing automated testing services into your project management plan to ensure
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