Manifesto 2024: Biba urges government and regulators to consult over AI regulation in insurance

Biba has urged the government and regulators to work together to introduce an “appropriate framework” for artificial intelligence (AI) in insurance.

In its 2024 manifesto, entitled Managing risk for growth and economic security, the association said that suitable regulation needed to be in place to ensure the right outcomes were being achieved.

AI has become more popular in recent years, with large language models such as ChatGPT piquing the interest of many.

Within insurance, AI has been experimented with for claims, quotes and underwriting processes, while it has also been used for back office functions, compliance checks and to detect fraud.

Biba highlighted that while brokers were aware of the benefits of AI, there was a ”growing recognition” that regulation needed to be introduced.

”Brokers are increasingly aware of the potential benefits of AI, both for their business and for their customers,” the association’s manifesto said.

”Equally, and in the context of a dynamic AI regulatory environment, there is a growing recognition that suitable regulation needs to be in place to ensure the right outcomes.

“Biba calls for the government and regulators to consult and ultimately introduce an appropriate framework of regulation for AI in insurance.”

Pledges

As part of this, Biba has pledged to produce new guidance for members on harnessing the benefits of AI and associated technologies.

The association’s Insurance Technology and Innovation Committee will also work to bring forward AI solutions to help support the needs of the insurance broking sector.

“We are going to produce a guide to help members understand all the different things AI can be used for, whether it is assessing new risks for underwriting or looking at what happens after a claim,” Biba chief executive Graeme Trudgill said.

“Whatever it is, there are many different options for brokers, so it is just helping enable that.”