scholarly journals AI-Enabled Underwriting Brings New Challenges for Life Insurance: Policy and Regulatory Considerations

2021 ◽  
Author(s):  
Azish Filabi ◽  
Sophia Duffy
Keyword(s):  
Life Insurance ◽  
Intelligent Systems ◽  
National Standards ◽  
Third Party ◽  
Data Sources ◽  
Automated System ◽  
Regulatory Enforcement ◽  
Ethical Implications ◽  
Use Of Technology ◽  
Industry Standards

Insurers are increasingly using novel data sources and automated systems for risk classification and underwriting. Automation has improved operational efficiencies in the accuracy and speed of underwriting, but it also raises new considerations relating to unfair discrimination. In this paper, we review the current regulatory structures relating to unfair discrimination and suggest they are insufficient to police the myriad new big data sources available. Moreover, AI-enabled systems increase the risk of unfair discrimination if a facially neutral factor is utilized by an automated system as a proxy for a prohibited characteristic. Furthermore, many insurers rely on unregulated third-party algorithm developers, and therefore do not own and may not have access to the logic embedded in the system, which raises unique ethical implications, particularly with respect to accountability among AI actors. To address these issues, we propose a framework that consists of three parts: (a) the establishment of national standards to serve as guardrails for acceptable design and behavior of AI-enabled systems; (b) a certification system that attests that an AI-enabled system was developed in accordance with those standards; and (c) periodic audits of the systems’ output to ensure it operated consistent with those standards. The framework rests on the existing state-based regulatory infrastructure and envisions a self-regulatory organization who can work with the NAIC to develop standards and oversee certification and audit processes. Regulatory enforcement remains with the states. Part I describes the use of technology in life insurance underwriting. Part II discusses the unfair discrimination that can occur due to factors that reflect societal biases, and the unfair discrimination that could occur in artificially intelligent systems if facially neutral factors are substituted by the system for prohibited factors. The current industry standards and regulatory scheme for unfair discrimination in underwriting is also discussed in Part II. Part III describes the ethical concerns regarding accountability when third-party data inputs and underwriting systems are utilized. In Part IV, we propose a governance approach and framework to address these concerns.

Screening and Priority-Setting to Determine Home- and Community-Based Aging Services for Older Floridians

2021 ◽  
pp. 073346482110125
Author(s):  
Lawrence Schonfeld ◽  
Jesse Bell ◽  
Mary Goldsworthy ◽  
Kevin Kip ◽  
Amber M. Gum ◽  
...  
Keyword(s):  
Service Delivery ◽  
National Standards ◽  
Third Party ◽  
Community Based ◽  
Older Americans ◽  
Caregiver Support ◽  
Aging Services ◽  
Optimal Health ◽  
Aging Network ◽  
Community Based Services

The National Aging Network serves millions of older Americans seeking home- and community-based services, but places others on waitlists due to limited resources. Little is known about how states determine service delivery and waitlists. We therefore conducted a process evaluation and analyzed data from one five-county Area Agency on Aging in Florida, where an algorithm calculates clients’ priority scores for service delivery. From 23,225 screenings over 5.5 years, clients with higher priority scores were older, married, living with caregivers, and had more health problems and needs for assistance. Approximately 51% received services (e.g., meals/nutrition, case management, caregiver support), 11% were eligible/being enrolled, and 38% remained on waitlists. Service status was complex due to multiple service enrollments and terminations, funding priorities, and transfers to third-party providers. More research is needed regarding how other states determine eligibility and deliver services, potentially informing national standards that promote optimal health in older Americans.

The Risk of Birth

2021 ◽  
pp. 1-31
Author(s):  
Hannah Barker
Keyword(s):  
Maternal Mortality ◽  
Pregnant Women ◽  
Fifteenth Century ◽  
Life Insurance ◽  
Third Party ◽  
Potential Contribution ◽  
Reproductive Labor ◽  
Enslaved Women

Abstract Why did fifteenth-century Genoese slaveholders insure the lives of enslaved pregnant women? I argue that their assessment of the risks associated with childbirth reflected their views on the connection between slavery, property, and lineage. Genoese slaveholders saw the reproductive labor of enslaved women as a potential contribution to their lineage as well as their property. Because their children by enslaved women might become their heirs, Genoese slaveholders were inclined to worry about and seek protection against the risk of maternal mortality. In the context of the commercial revolution and the rise of third-party insurance, they developed life insurance for enslaved pregnant women to complement the fines already required of those who illegally impregnated enslaved women and thereby endangered their lives.

scholarly journals Responsible Autonomy

2017 ◽  
Author(s):  
Virginia Dignum
Keyword(s):  
Design Process ◽  
Ethical Behavior ◽  
Cultural Context ◽  
Intelligent Systems ◽  
Autonomous Systems ◽  
Research Direction ◽  
Ethical Implications ◽  
Technological Developments

As intelligent systems are increasingly making decisions that directly affect society, perhaps the most important upcoming research direction in AI is to rethink the ethical implications of their actions. Means are needed to integrate moral, societal and legal values with technological developments in AI, both during the design process as well as part of the deliberation algorithms employed by these systems. In this paper, we describe leading ethics theories and propose alternative ways to ensure ethical behavior by artificial systems. Given that ethics are dependent on the socio-cultural context and are often only implicit in deliberation processes, methodologies are needed to elicit the values held by designers and stakeholders, and to make these explicit leading to better understanding and trust on artificial autonomous systems.

Human Genetics and Financial Services. A Discussion Meeting with Supporting Papers

1997 ◽  
Vol 3 (5) ◽  
pp. 969-1058
Author(s):  
A.D. Wilkie ◽  
D.J. Le Grys ◽  
A.S. Macdonald ◽  
T.M. Ross ◽  
C.D. Daykin
Keyword(s):  
Health Insurance ◽  
Life Insurance ◽  
Financial Services ◽  
Royal Society ◽  
Human Genetics ◽  
Panel Discussion ◽  
Third Party ◽  
Scientific Communities ◽  
Joint Seminar ◽  
Royal Society Of London

The Profession held a joint seminar on ‘Human Genetics: Uncertainties and the Financial Implications Ahead’ with the Royal Society of London in September 1996. Papers submitted to that seminar included four from the profession and several from the medical, legal, social and scientific communities.This Sessional Meeting is designed to provide a forum for discussion amongst a wider actuarial audience. The topic is important to the profession, not only in relation to life insurance, but perhaps even more in relation to health insurance. The four papers by the actuarial authors are reproduced, together with a short third party summary of the whole seminar and a more detailed summary by C.D. Daykin of the actuarial, legal and social points raised in the discussions.The meeting takes the form of a panel discussion. Each of the panellists is to be invited to make introductory comments on their papers to update them where appropriate in the light of developments since September 1996 (for example the ABI statement) and will also suggest specific topics for discussion at the meeting. There is then an opportunity for members and guests to raise and debate all relevant issues.

OSIGURANjE ŽIVOTA U KORIST TREĆIH LICA

2021 ◽  
pp. 535-551
Author(s):  
Zoran Miladinović ◽  
Keyword(s):  
Life Insurance ◽  
Legal Status ◽  
Insurance Contract ◽  
Third Party ◽  
Insurance Companies ◽  
Insurance Law ◽  
Legal Provisions ◽  
Insured Person ◽  
Insured Event

Insurance of life in favor of third parties is more important than the insurance of life in case of death. Moreover, in some rights this type of insurance can be contracted only in the event of the death of the insured person. There are no such restrictions in our insurance law, which means that the same can be agreed in case the isured person reaches a certain age. With this type of insurance, the insured event can be realized on the person of the insurance policyholders or on some other person. The insured person can therefore be the insurance contractor himself and it can also be another person. Considering that in this type of insurance, upon the occurrence of the insured event, the payment of the insured amount is always made to a certain third party beneficiary and that the insurance contract mentions several persons with different legal status, the insurance contract must clearly define the issues such as clear determination of the beneficiary insurance, what happens if the insurance beneficiary dies before the insured person, or the contractor assures, whether it is necessary for the insurance beneficiary to give his consent to be paid compensation, whether and until when the insurance policyholder can revoke the benefit he has contracted for a third party-beneficiary of the insured, etc. All these issues are mainly regulated by legal provisions, but of particular importance are General Conditions of life insurance of life insurance companies, as the above issues are clearly defined on the basis of experiences that have proven to be open in practice.

Note on Determination of Premium Rates for Motor Vehicles (Third Party Risks) Insurance in New Zealand

1972 ◽  
Vol 98 (2) ◽  
pp. 149-156
Author(s):  
J. E. Eriksen ◽  
E. J. Jones
Keyword(s):  
New Zealand ◽  
Life Insurance ◽  
Motor Vehicle ◽  
Third Party ◽  
Motor Vehicles ◽  
Motor Insurance ◽  
Premium Rates ◽  
Insurance Rates ◽  
Basic Ideas

The authors have advised on the level of motor vehicle (third party risks) insurance rates of premium in the circumstances under which that business is written in New Zealand and this paper records the approach taken. It has been prepared in the hope that, as no difficult mathematics are involved, the basic ideas may appeal both to actuaries and to persons other than actuaries who are interested in the transaction of non-life insurance. They are relevant not merely to third party motor insurance but also to non-life insurance generally in a situation where insurance is compulsory and the rates of premium are centrally controlled. In those circumstances more sophisticated techniques of deriving premium rates are less necessary.

Focal Points in Supervising Building Intelligent System

2013 ◽  
Vol 739 ◽  
pp. 532-536 ◽  
Author(s):  
Yang Zhang ◽  
Yun Sheng Zhang
Keyword(s):  
Intelligent Systems ◽  
Intelligent System ◽  
Focal Points ◽  
College Hospital ◽  
Medical College ◽  
Industry Standards ◽  
Control Procedures ◽  
Design Requirements ◽  
National Stadium ◽  
Building Engineering

ntelligent systems are becoming main parts in more and more building engineering with the development of economy in China. It is given in this paper that the focal points in supervising intelligent systems of building engineering. Quality control procedures are described in detail, which can ensure that the intelligent system can realize the design requirements and meet the industry standards in the construction, system commissioning and testing. The summary of supervision in this paper comes from a large number of famous building engineering in Beijing, such as the National Stadium, ZhongGuancun Science and Technology Square, Beijing Hospital, Peking Union Medical College Hospital, etc.

scholarly journals Judging One’s Own or Another Person’s Responsibility in Interactions With Automation

2020 ◽  
pp. 001872082094051
Author(s):  
Nir Douer ◽  
Joachim Meyer
Keyword(s):  
Intelligent Systems ◽  
Adverse Outcomes ◽  
Automated System ◽  
Decision Task ◽  
Human Capabilities ◽  
Subjective Perceptions ◽  
Causal Responsibility ◽  
Subjective Assessments ◽  
Theoretical Predictions ◽  
Human Responsibility

Objective We explore users’ and observers’ subjective assessments of human and automation capabilities and human causal responsibility for outcomes. Background In intelligent systems and advanced automation, human responsibility for outcomes becomes equivocal, as do subjective perceptions of responsibility. In particular, actors who actively work with a system may perceive responsibility differently from observers. Method In a laboratory experiment with pairs of participants, one participant (the “actor”) performed a decision task, aided by an automated system, and the other (the “observer”) passively observed the actor. We compared the perceptions of responsibility between the two roles when interacting with two systems with different capabilities. Results Actors’ behavior matched the theoretical predictions, and actors and observers assessed the system and human capabilities and the comparative human responsibility similarly. However, actors tended to relate adverse outcomes more to system characteristics than to their own limitations, whereas the observers insufficiently considered system capabilities when evaluating the actors’ comparative responsibility. Conclusion When intelligent systems greatly exceed human capabilities, users may correctly feel they contribute little to system performance. They may interfere more than necessary, impairing the overall performance. Outside observers, such as managers, may overweigh users’ contribution to outcomes, holding users responsible for adverse outcomes when they rightly trusted the system. Application Presenting users of intelligent systems and others with performance measures and the comparative human responsibility may help them calibrate subjective assessments of performance, reducing users’ and outside observers’ biases and attribution errors.

A Hydraulic Testing Procedure for Polypropylene Pipes Wall Rupture

2020 ◽  
Vol 9 (1) ◽  
pp. 60-63
Author(s):  
K. Osincev ◽  
N. Kuznecov
Keyword(s):  
Aluminum Foil ◽  
Testing Procedure ◽  
Hydraulic Testing ◽  
Test Methods ◽  
National Standards ◽  
Basic Part ◽  
Reliability Indicators ◽  
Reliability Characteristics ◽  
Industry Standards ◽  
Operation Cycle

Polypropylene pipes have a significant drawback – high values of the heat-stretch factor. Material properties are changing as the temperature rises, and material is exposed to increased pressure in the pipeline. In such a case, operation of polypropylene pipes is becoming unsafe. One of the known methods for heat-stretch reducing is reinforcement. Reinforcement is performed with aluminum foil or fiberglass. The properties of reinforced polypropylene pipes have not been fully investigating. Such pipes must go through a long operation cycle in order to enterprises could evaluate their properties, primarily such reliability characteristics as infallibility, maintainability, lifetime, and storability. There are no separate Russian National Standards for the properties and characteristics of polypropylene pipes, and for their types in Russia, as well as standard methods for hydraulic tests on destructive inspection at manufacturers. In industry, as well as in housing and utilities sector, are used pipeline valves of different purpose. Reliable and safe enterprise operation depends on the smooth running of equipment, pipelines and valves. In this regard, authors propose to consider valves and pipeline together at determining of reliability indicators. A method of destructive inspection is proposed, whereby the valves and the pipeline are tested together, that are corresponding to the most probable scenarios for the emergency development. The concept basic part includes the definition of a mandatory algorithm for destructive inspection actions during hydraulic testing of polypropylene pipes on a test load. Strength test methods for ball valves, pipelines and their joints have been described in the relevant Interstate, Federal or Industry Standards and Regulations. However, it is advisable to introduce additional standards for static strength testing of polypropylene pipes. The new standard will allow single out reinforced polypropylene pipes in a separate category, provide a definition for such pipes, and also take into account the influence of external factors on the condition of pipelines, their connections and valves.

scholarly journals Directions in the Development of Commercial Insurance in Poland and Lithuania

2014 ◽  
Vol 17 (1) ◽  
pp. 145-165
Author(s):  
Justyna Witkowska ◽  
Aušrinė Lakštutienė
Keyword(s):  
Life Insurance ◽  
Motor Vehicle ◽  
Third Party ◽  
Liability Insurance ◽  
Insurance Market ◽  
Commercial Insurance ◽  
Property Insurance ◽  
Group 3 ◽  
Motor Vehicle Insurance ◽  
Insurance Data

This article analyses trends in the development of the commercial insurance market in Poland and in Lithuania over the last decade. The insurance market changed in the 2002-2011 period. Those changes can be seen in various fields of commercial insurance. Data on the number of insurers, total premiums written, and the trends in claim payments and claim ratios were used to perform a market trend analysis. It should be emphasized that Poland experienced the results of the financial crisis in the insurance market later than Lithuania, which is visible in specific ratios under analysis. In Lithuania, in terms of insurance expenditures, non-life insurance products are definitely more popular, while in Poland life insurance plays the most important role. Poles buy most life insurance from group 1, and Lithuanians from group 3. In the case of non-life insurance, motor vehicle insurance (third-party liability insurance and casco (collision/personal liability insurance)) and property insurance are the leading forms of insurance purchased by both Poles and Lithuanians, as well as other Europeans.

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