How to provide new cover for risks that were previously uninsurable
Insurability and artificial intelligence
By Bogdan Tautan
|BOGDAN TAUTAN is Reinsurance Analyst and Non-Life Actuary at Achmea Reinsurance, The Netherlands.|
INSURABILITY AND RISK
Actuaries and risk professionals aim at understanding the risk affecting the policyholders and estimating accurately the premiums charged. In order to deal with insurability, actuaries use advanced actuarial risk models, data collection, and statistical methods while relying on regulations and market conditions continuously. The aim of this paper is to frame the concept of insurability when challenged by artificial intelligence (AI) tools, as discussed by the recently published paper ‘AI and the opportunity and challenges it presents to insurability’.
This article was published in The European Actuary No. 33 – March 2023