Faisal Khan, an important read for the insurance industry, as the IAIS – International Association of Insurance Supervisors publishes an application…

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Faisal Khan, an important read for the insurance industry, as the IAIS – International Association of Insurance Supervisors publishes an application paper on the supervision of AI for insurers. The IAIS is one of a number of insurance industry standard setting bodies, and while it’s membership is voluntary, the IAIS has representatives from 200 jurisdictions, that constitutes 97% of the worlds insurance premiums.

Insurance is the backstop adopted by most public and private sector organizations to transfer risk. Risks generated from the use of AI will be transferred to insurers and insurers must have a standard to align their strategy for AI risk management with clients.

The paper is a great read. It highlights the need for insurers to adopt a risk based approach for the allocation of resources, based upon risk of the adoption of AI. @Thaddeus Dziekanowski, it highlights the need to develop and adopt an AI management framework (system) that distinguishes between a customers levels of risk and risk management of AI. With the supervisor requiring insurer establish and operate within an effective and documented risk management system to manage AI risk.

Sophie Best, the paper outlines the development of an AI governance and accountability systems (management) for the oversight and assurance of AI risk. To “ensure that the roles and responsibilities allocated to the Board, Senior Management and Key Persons in Control Functions are clearly defined so as to promote an appropriate separation of the oversight function from the management responsibilities; and provide oversight of the Senior Management.”. With responsibilities for AI management systems defined throughout the life cycle of AI.

If this paper makes its way to a standard, our The Government of Dubai Legal Affairs Department accredited Board Governance over an AI Management System program. Is well placed to support insurance leadership teams and their clients adopt oversight of AI risk.

Brian D. McCarthy

Veritas GRC

#artificalintelligence #ai #airiskmanagement

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