Summary: In Canadian Underwriter, Daisy CEO Gary Saarenvirta says AI could be a way for auto insurers to convince regulators to change the rules around the limitations on underwriting.
Artificial intelligence may be able to help auto insurers convince regulators to relax certain prohibitions on rate restrictions.
In Ontario, insurers are prohibited from using several factors – such as certain at-fault accidents, credit history or how long the client has lived in their current home. The client’s gender and where they live are fair game.
“I understand the rationale for that, but the idea with AI is that we can pick the bad apple out of any group of individuals,” Gary Saarenvirta, CEO of Daisy Intelligence, said in an interview on the use of AI in claims and underwriting.
“If we can convince the regulators that the technology can do this in a non-biased way, then maybe they would be open to relaxing some of those regulatory limitations on underwriting.” Read more.