From: Captive International
Captive International takes a look at how artificial intelligence might impact the world of insurance.
Artificial intelligence (AI) is constantly in the headlines at the moment, with one particular variant, ChatGPT, taking up a large amount of space in newspapers and magazines.
ChatGPT is a form of AI that can be used to absorb a large amount of information and write a script based on the topic at hand. Used correctly it can be a useful tool to help summarise a complicated topic for someone looking to explain something and as such it has caused a lot of uncertainty over how some professions, such as journalism, will be able to cope with it.
There is of course a downside. Used incorrectly it can be used to cheat at homework or, in one memorable case that hit the headlines, it can be used to write a formal legal submission—and in the process make up the legal citations referring to past cases that supported it, resulting in judicial fury.
How does this new tool impact insurance and captive insurance in particular? Charlotte Rowlandson and Karishma Brahmbhatt, senior associate and counsel, respectively, at legal firm Allen & Overy, told Captive International that at a high level, if you take the insurance industry’s approach to engagement with insurtech more generally as a proxy for adoption of AI technologies, you might expect to see this following a few years behind the banking industry.