Work

AI, insurance, discrimination and unfair differentiation: an overview and research agenda

Year: 2025

Type: article

Abstract: Insurers underwrite risks: they calculate risks and decide on the insurance price. Insurers seem captivated by two trends enabled by Artificial Intelligence (AI). First, insurers could use AI for analysing more and new types of data to assess risks more precisely: data-intensive underwriting. Second, insurers could use AI to monitor the behaviour of individual consumers in real-time: behaviour-based insurance. For example, some car insurers offer a discount if the consumer agrees to being tracked by the insurer and drives safely. While the two trends bring many advantages, they may also have discriminatory effects on society. This paper focuses on the following question. Which effects related to discrimination and unfair differentiation may occur if insurers use data-intensive underwriting and behaviour-based insurance?

Source: Law Innovation and Technology

DOI: 10.1080/17579961.2025.2469348

Authors: Marvin van Bekkum, Frederik Zuiderveen Borgesius, Tom Heskes

Institution: Radboud University Nijmegen

Language: English

Topic: Ethics and Social Impacts of AI

Subfield: Artificial Intelligence

Field: Computer Science

Domain: Physical Sciences

SDG: Reduced inequalities

Open Access status: hybrid

Funders: Universiteit van Amsterdam, Radboud Universiteit, Universität Wien, Universiteit van Tilburg