7262. Artificial Intelligence and Insurance Law

Insurance law has been important since before the underwriters at Lloyds provided insurance for oceangoing cargo at Edward Lloyd’s coffeehouse on London's Tower Street starting around 1688 (perhaps going back as far as the Phoenicians swapping cargos). Today insurance is a significant financial industry around the globe, but insurance law has developed around custom and practice in an industry built on long-employed traditional practices. With the advent of process automation, exponential growth in processing power/storage, and easy (and often secure) internet access, technology is changing the fabric of the industry. Now artificial intelligence, including generative artificial intelligence and large language models, highly sophisticated modeling of natural calamities and many other types of insurance risks, are attempting to transform insurance and risk science and, as a result, insurance law, increasingly based on AI. Today, artificial intelligence has begun a revolution in almost all aspects of the insurance ecosystem. You will be introduced to a combination of statutory law and regulation arising to govern the insurance applications of artificial intelligence. You will also hear from entrepreneurs who seek to disrupt traditional processes and analytics. You will also learn about the unique system of insurance regulation in the United States and how regulators are responding to the ever-changing industry and new types of risks. In addition to learning the relevant substantive law, you will examine the historical, current, and future status of decision-making algorithms, as well as how cultural values, economics, and public policy considerations affect the decision-making processes of insurance regulators.