'Explainable AI' Builds Trust With Customers - Insurance Thought Leadership

Insurance is moving toward a world in which carriers will not be allowed to make decisions that affect customers based on black-box AI. Artificial intelligence (AI) holds a lot of promise for the insurance industry, particularly for reducing premium leakage, accelerating claims and making underwriting more accurate. AI can identify patterns and indicators of risk that would otherwise go unnoticed by human eyes. Unfortunately, AI has often been a black box: Data goes in, results come out and no one -- not even the creators of the AI -- has any idea how the AI came to its conclusions. That's because pure machine learning (ML) analyzes the data in an iterative fashion to develop a model, and that process is simply not available or understandable.