In an article by Insurance Times, our Head of Insurance sits down with Professor A. C. Grayling CBE to discuss the upcoming debate on machine learning at Insurance 2025.
Nick talks AI, regulation, and governance - and the opportunities and challenges that machine learning brings for the sector. Read the full piece below.
What will be interesting over the next 6-12 months will be AI’s compatibility with regulation. The main issue that insurers will have is how heavily regulated the industry is. Regulations will only increase (with the introduction of AI), we also have the Insurance Distribution Directive (IDD) coming in later this year. The senior manager’s regime will be coming into the insurance space by the end of this year and extending into early 2019. The FCA remarkably said that they had planned to introduce more regulations this year, but they put it on hold because of Brexit, which shows that there are no signs of them slowing down in terms of regulation.