The Ethics of Automated Claims

Insurtech Story Podcast

Jun 18 2023 • 19 mins

As the insurance industry embraces automation and artificial intelligence in claims processing, the ethical implications come to the forefront. While automated systems offer efficiency and cost savings, there is a need to ensure fairness and transparency. Ethical considerations include potential biases, lack of human judgment, and the impact on vulnerable populations. Striking the right balance is crucial, where technology aids human decision-making rather than replacing it entirely. It is imperative for insurers to invest in robust algorithms, audit mechanisms, and ongoing evaluation to mitigate biases and ensure the ethical handling of claims, ultimately prioritising customer trust and satisfaction.

Points of discussion:

1. Can you explain some of the ethical considerations surrounding the use of automated technologies in claims management?

2. What are the potential biases and challenges that may arise when relying heavily on algorithms for claims assessment and settlement?

3. How do you strike the right balance between efficiency and fairness, ensuring that automated systems don't compromise the rights and experiences of policyholders?

Speaker Bio: Bryan Falchuk, is the President and CEO at Property and Liability Resource Bureau (PLRB). Bryan is committed to the insurance industry's commitment to protect people and put their lives back together at the worst moments they face. Bryan is an advisor to the insurance industry and former C-level P&C insurance & InsurTech executive with deep functional expertise in general management, sales and distribution, operations, M&A, claims, growth, corporate strategy and business intelligence. Besides, he is also a best-selling author, executive coach, TEDx presenter and public speaker with articles written for Inc. Magazine, The LA Times, Chicago Tribune and more.