From: Business Insurance

RANCHO MIRAGE, California – Captive insurers can harness new technologies and help organizations innovate, but these efforts must be aligned with the strategic goals of the parent company, experts say.

They were speaking Monday during a session at the Captive Insurance Companies Association 2023 International Conference.

Artificial intelligence and machine learning technologies may offer captives positive ways to mitigate risks, said Mark Field, director, risk and insurance operations team, office of the general counsel, at Sutter Health, a Sacramento, California-based health care system.

For example, ChatGPT, an artificial intelligence chatbot developed by OpenAi, has racked up 100 million users, based on news reports, Mr. Field said.

When he went online and asked the chatbot what innovations will artificial intelligence bring to the insurance industry and how can artificial intelligence help captive insurance companies, it provided an answer in about 15 seconds, he said.

Captives may be able to apply AI technologies in the areas of fraud detection, claims processing and underwriting, he said.