• AI is rapidly transforming the insurance industry
• Insurers focus on low-risk AI applications, like chatbots, to minimize financial and reputational risks.
• Ethical concerns, particularly around data privacy and transparency, are significant challenges.
• Aligning AI ethics with corporate values and ensuring transparency in AI decision-making are essential.
• The lack of standardized frameworks for AI deployment is a major industry gap.
• As companies gain experience, they will expand AI use from low-risk to more complex applications, requiring robust risk management.

 The organization employs a rigorous quality assurance process, conducting independent testing before regulatory review. This helps mitigate risks from faulty models, which could lead to poor decisions and regulatory issues.

For stress testing, the organization adapts models and creates specific scenarios to handle unexpected economic changes, such as those seen during the COVID-19 pandemic.