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Everyone in the insurance industry knows that the landscape will be changing in the near future as the adaptation of artificial intelligence grows. Some of the anticipated changes include the adaptation of chatbots to help respond to policyholder questions, and the use of neural networks that will be able to identify fraudulent claims. AI relies on machine learning to learn and improve on tasks that it had not specifically been programmed to perform. This becomes troubling because regulators cannot identify how AI arrives at the decisions that it makes. Normally, regulators approve data models prior to allowing insurtechs to underwrite insurance, but with AI models changing over time, approval prior to implementation will not be effective. Other issues arise, including the difficulty that consumers will likely have in disputing a decision, such as a rejection of a claim, and will likely lack necessary information to take such an action.

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