Racial bias

A study by the D.C. The Department of Insurance, Securities and Banking reveals an average premium gap of $326 between Black and white drivers.

Researchers from Lehigh University concluded that telling commercially available language learning models, like ChatGPT, to "use no bias" significantly minimized it.

Digital Insurance spoke with Hareem Naveed, associate vice president of integrated analytics at Munich Re Life, about the ethical application of artificial intelligence in life insurance.

To mitigate risk and harness the promise of AI, a fundamental best practice is to evaluate and assess AI systems or tools before using them.

Ethical considerations when implementing AI include making sure data the models are built on is clean, standardized and tested.

Predictable tasks are made for today's generative AI. The technology could revolutionize the underwriting process as long as it can keep its bias in check.

Stand With Asian Americans is launching a new tool this week for people to make complaints about bias they've experienced at work.

Insurers considering using Gen AI for claims, underwriting and other operational functions will need to watch out for "hallucinations," the phenomenon of Gen AI language models producing inaccurate or nonsense results.

The senior data scientist shares about his work in identifying demographic bias in machine learning models.

The National Association of Insurance Commissioners has issued guidance to insurance companies about existing laws and governance requirements they need to follow as they develop and use AI models. Experts say it's a good first step.

Roots Automation, Cowbell Insurance and Capitola are among the younger companies that have started using GPT technologies.

Data scientist Cathy O'Neil warns that insurance companies need more risk pooling.

In May, the California Department of Insurance sent surveys to property & casualty insurers, to get information about how insurers are using tools like big data, artificial intelligence and machine learning in their decision making processes.

Digital capabilities like mobile insurance and parametric insurance can lend swift aid to vulnerable households during a Nat Cat event.

AI and ML can find patterns in data, but when they're trained on biased data, they can compound the issues and perpetuate a self-confirming data bias cycle.

There is a gaping hole in the financial system in North Minneapolis, where people are preyed upon by payday lenders and fringe bankers, according to Debra Hurston, executive director of the Association for Black Economic Power. Hurston is creating a credit union for this community to help break residents out of a cycle of exploitation and debt. But the issue is far bigger than one city, and the opportunity is one that any bank or credit union can seize.

Mike Kreidler has adopted a temporary rule banning insurers from using credit information to set auto, homeowner and renters insurance rates. Kreidler initially issued an emergency rule in March 2021 but it was struck down by a court last year. The new rule goes into effect March 4.

Challenge comes with increased awareness of structural racism in financial services.

Just like the industries that they cover, the lack of Black representation among news outlets acts as a barrier against understanding and eliminating systemic racism.

The flow of assets and capital in manager selection, municipal bonds and business and mortgage capital reveals forms of systemic racism that often get overlooked.