Prof. Martin Mullins, Prof. Finbarr Murphy & Prof. Michaele Völler (Institute for Insurance Studies, TH Köln, Cologne, Germany)

Thesis Working Title

Adoption of Artificial Intelligence in the insurance sector: Creating a governance framework to ensure consumer protection

Artificial Intelligence (AI) is at the heart of many emerging technologies promising to shape and transform several areas across the insurance value chain. At the same time, the past few years have seen growing recognition of the risks associated with algorithm-driven decision-making. Given the centrality of the insurance industry to the life of EU citizenry, there is a need for a bespoke approach to digital ethics. This research thus posits an interdisciplinary examination and critical analysis of the use of AI and Big Data Analytics by the insurance industry. Part of this project will entail the interrogation of current work on norms and guidelines around the appropriate use of this emerging technology. Previous research has indicated that creating an effective data governance framework is critical to promoting the uptake of AI, chiefly in a sector with substantial economic and welfare functions for society. Recently developments have changed the nature of the relationship between insurance companies and their clients in terms of information asymmetry and power relations. Policymakers will need to respond to this new dispensation; thus, this project aims to provide inputs into this public policy intervention. Whereas risk governance frameworks exist around other emerging technologies, they are a nascent phenomenon in this area.