Racial bias

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.