The use of AI within our industry is not a recent phenomenon. It has been leveraged across parts of the insurance value chain – from underwriting to claims and fraud detection to customer service – for several years. However, GenAI, one implementation of the sprawling field of study that is AI, demonstrated explosive growth beginning in early 2023 and consequently thrust AI into the spotlight. With the technology evolving as rapidly as it is, established and mature industries that were engaged in ongoing digital transformations mobilized swiftly to determine viability of GenAI within their firms. Regulation has not been able to keep up with the rapid growth of AI and firms have been seeking guidance on best practices and “what good looks like” in our industry.
Consisting of nearly 70 business and technology executives representing nearly 40 member companies, the LIMRA and LOMA AI Governance Group (AIGG) was formed in December of 2023 as a direct response to this need. This group began meeting on a monthly basis to mutualize the problem-solving across the industry, understand common opportunities and challenges, share best practices, and learn from each other. The work of the AIGG is focused on two areas — Business Value Enablement (Use Cases) and Governance —across two phases. Phase One presents a Current State Assessment of AI in our industry. Phase Two plans to develop a myriad of deliverables including Return on Investment (ROI) templates, AI Maturity Models, and AI Governance Frameworks, etc., as depicted in the figure below.
Vision:
To lead our industry towards responsible and innovative AI adoption, fostering trust, transparency, and equitable benefits for all stakeholders.
Mission:
Connect industry executives to learn about the current state of AI in our industry at any given point in time, learn and seek advice from one another, and collaboratively shape and implement AI best practices to equip all firms for sustained success with their AI programs. Strive for continuous improvement, knowledge sharing, the ethical use of AI technologies across the industry, and the advancement of industrywide best practices.
Charter:
This AI Governance Group, organized by LIMRA and LOMA, is committed to:
- Facilitating knowledge exchange and collaboration among senior executives to address emerging challenges and opportunities with AI.
- Establishing and maintaining comprehensive AI best practices that prioritize fairness, accountability, and transparency.
- Promoting ethical AI innovation that enhances customer experiences, operational efficiency, and industry competitiveness.
- Socializing educational resources to empower industry professionals with the skills and understanding needed to navigate AI effectively.
Through these efforts, the AI Governance Group aims to create a foundation for sustainable and inclusive AI practices that benefit the insurance industry (Life | Annuities | Workplace Benefits).