Matthew Lehman's article is absolutely correct about the need for trust in insurance when using extensive personal data.
As AI becomes increasingly deployed in insurance (it is still a long way behind other industries) a big issues will emerge: Insurers deploying Transparent AI (where you can explain how actions were decided, with an audit trail) versus Opaque AI (where it is not explainable) will create a big issue with insurance regulators and customers alike.
Similarly GDPR, being enacted in May 2018 will provide an opportunity for insurers to prove themselves as trustworthy brands. It is a one-off opportunity for them to get clients to clean their own data and burnish their reputations. They should take it.
ncreasingly, insurers have more tools at their disposal to improve claims outcomes, from AI to bots, connected devices to drones. What’s at the heart of this shift? Personal data. Today, companies have more ways than ever to collect personal data. A global Accenture study of nearly 600 businesses found that 79 percent of organizations collect data directly from people’s online activities, while one in three capture personal data from connected devices. Meanwhile, customers are increasingly willing to share their personal data. However, they have high expectations of how their service providers should behave, and how their data will be used and protected. In the event of a breach of customer trust, 63 percent would start looking for alternative providers, and 53 percent would stop doing business with that company immediately.