Insurers Urged to Safeguard Data Amid Rising AI Adoption and Privacy Risks, Says Info-Tech Research Group
In its recently released blueprint, Info-Tech Research Group is providing insurers with a comprehensive framework to tackle the growing challenges of data privacy in the age of AI. In the resource, the global research and advisory firm recommends AI training, strong data governance, and proactive risk management to help insurers safeguard personally identifiable information (PII) while using AI for underwriting, claims processing, and customer engagement.
TORONTO, Dec. 13, 2024 /CNW/ - As AI adoption continues to accelerate, the insurance industry is under increasing pressure to safeguard personally identifiable information (PII) against sophisticated data privacy risks. Global research and advisory firm Info-Tech Research Group explains in a newly published industry resource that traditional system safeguards and outdated legacy systems are proving insufficient to address the complexities of modern AI-driven processes, leaving insurers exposed to regulatory and technological vulnerabilities. To help insurers tackle these pressing challenges, Info-Tech Research Group's blueprint, Safeguard Your Data When Deploying AI in Your Insurance Systems, offers a strategic framework for integrating privacy-preserving AI solutions. The firm's resource features research insights and tools that will equip IT leaders in the insurance sector to strengthen compliance, mitigate risks, and protect PII while maintaining system performance.
"Insurers handle vast amounts of data, from health records to financial histories, fed into AI systems that promise accuracy and efficiency but pose privacy concerns," says Arzoo Wadhvaniya, research analyst at Info-Tech Research Group. "A single breach could compromise thousands of customers' personal information, causing severe reputational and financial damage. It is not just about what AI can do; it is about ensuring it is done securely and ethically."
In the blueprint, Info-Tech explains that traditional data safeguarding methods in the insurance industry are increasingly ineffective, as legacy systems often lack the flexibility to meet modern demands. The firm's research findings suggest that unfamiliarity with integrated AI technologies can lead to confusion among employees when assessing risks and determining appropriate applications. Complex regulatory requirements, which may not align with AI-driven processes, further heighten compliance challenges. To address these issues, Info-Tech recommends AI training programs to help employees understand associated risks and foster a culture of security and compliance.
"Regulatory frameworks demand strict compliance, yet AI introduces complexities that make this harder. Insurers must ensure AI respects customer consent, limits data usage, and mitigates bias. Otherwise, the consequences could be costly in terms of both fines and lost trust," explains Wadhvaniya.
Info-Tech's new resource provides IT leaders in the insurance industry with actionable strategies to address critical risks associated with generative AI. The firm emphasizes the importance of identifying insurance-specific risks and adopting a continuous improvement approach supported by metrics and a risk-based strategy aligned with a privacy framework tailored to organizational needs.
The research highlights three key risks tied to generative AI:
- Data Breaches of PII: AI systems within insurance companies handle vast amounts of sensitive customer data, including health records, financial details, and personal identifiers. These systems, if not adequately secured, can become targets for cyberattacks, leading to unauthorized access to sensitive information.
- Noncompliance With Regulations: Privacy regulations like the General Data Protection Regulation (GDPR) and the Health Insurance Portability and Accountability Act (HIPAA) impose strict requirements on how customer data is collected, processed, and stored. AI systems in insurance, which often require large datasets to function effectively, may unintentionally violate these regulations if not properly designed and monitored.
- Insider Threats: Employees or third-party contractors with authorized access to AI systems and sensitive customer data may exploit their privileges, either intentionally or through negligence. This can lead to data theft, manipulation of critical AI models, or tampering with claims and pricing algorithms.
The firm advises the industry to take a proactive stance, implementing robust data governance practices, ensuring transparency, and fostering customer trust in the responsible use of AI. By leveraging insights from this blueprint, insurance companies can effectively address growing data privacy challenges while adopting advanced AI technologies for underwriting, claims processing, and customer engagement.
For exclusive and timely commentary from Arzoo Wadhvaniya, an expert in IT strategies, and access to the complete Safeguard Your Data When Deploying AI in Your Insurance Systems blueprint, please contact [email protected].
About Info-Tech Research Group
Info-Tech Research Group is one of the world's leading research and advisory firms, proudly serving over 30,000 IT and HR professionals. The company produces unbiased, highly relevant research and provides advisory services to help leaders make strategic, timely, and well-informed decisions. For nearly 30 years, Info-Tech has partnered closely with teams to provide them with everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.
To learn more about Info-Tech's divisions, visit McLean & Company for HR research and advisory services and SoftwareReviews for software buying insights.
Media professionals can register for unrestricted access to research across IT, HR, and software and hundreds of industry analysts through the firm's Media Insiders program. To gain access, contact [email protected].
For information about Info-Tech Research Group or to access the latest research, visit infotech.com and connect via LinkedIn and X.
SOURCE Info-Tech Research Group
Media Contact: Sufyan Al-Hassan, Senior PR Manager, Info-Tech Research Group, [email protected] | +1 (888) 670-8889 x2418
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