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Market Conduct Exams in the Age of A.I.

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19 April 2018
Michael Fitzgerald

“The Machine Made Me Do It”

News flash: Intelligent systems are now able to train themselves, that is, reach decisions that have not been pre-programmed, pre-determined beforehand. Essentially, they program themselves. It is conceivable that, in underwriting decisions, machines have the capability to reach decisions that an insurer may not anticipate, or even be able to explain. Thus, there is work to be done before a learning machine capability fits appropriately within the world of insurance compliance. (For more on these capabilities, see the Celent report Machine Intelligence in Insurance: Designing the Aware Machine.)

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