’It’s a code built on general principles as much as detail,’ says director

A new code of conduct for the use of artificial intelligence (AI) within the insurance industry has been launched.

The initiative, which was revealed yesterday (31 January 2024), does not impose new regulations on firms but aims to establish a standard of responsibility when they are using AI for claims settlements.

It is a result of a collaboration between 127 specialists in the market, including Hugh Hessing, former UK chief operating officer of Aviva, Prathiba Krishna, head of AI and ethics at Sas UK and Ireland and Simon Murray, head of insurance at DWF.

Director of Jel Consulting Eddie Longworth, who led the collaboration, told journalists at a media briefing that the code was “built on general principles as much as detail”.

“We are trying to make this code applicable to any carrier, market and supplier that works in the claims and supply chain industry environment,” he added.


This came after data analytics and digital operations company EXL revealed earlier this week (30 January 2024) that 86% of firms had invested upwards of £7.9m in AI in the most recently completed fiscal year, with a further 35% investing £39m or more.

It also revealed that 89% of firms in the UK had launched AI point solutions and proofs of concept over the past year.

To ensure the ethical use of AI, Longworth urged insurance firms to “do the right thing” and sign up to the new code of conduct and implement its principals as well.

This includes fairness, accountability and transparency of AI applications.

“Those three key principles are there to make sure that the inputs of AI are seen by all the stakeholders to be trustworthy,” Longworth said.

The code also seeks to establish the rights of claimants in challenging AI-based decisions.

”Claimants must always have the right of redress,” Longworth said.

”We welcome people or organisations signing up to the code to have consideration given to the issues of potential bias.”


Reacting the the announcement of the code of conduct, Chris Sawford, managing director of data and analytics firm Verisk, felt it offered some “real guidelines” without having to wait for the regulator.

He said it was needed amid the growing use of AI in the industry, claiming the amount of data required to “properly train” generative AI was “vast”.

Meanwhile, Ian Hughes, chief executive of Consumer Intelligence, said that the code’s principals were similar to the FCA’s Consumer Duty regulation, which calls for all insurance firms to ensure products and services offer customers fair value.

“Teaching good ethics and being a good group parents of AI is essential,” he added.