By Mia MacGregor
Feb 11 - (The Insurer) - Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, has urged the Government Accountability Office (GAO) to examine the development and deployment of AI by the property-casualty and life insurance industries, as well as its impact on the availability and affordability of insurance coverage nationwide.
In a letter to Comptroller General Eugene Dodaro, Waters followed up on her 2023 request for a review of AI’s influence on access to fair and affordable housing.
“In light of the ongoing wildfires in Los Angeles County and major hurricanes at the end of last year, I request that the Government Accountability Office (GAO) also explore the effects of AI, including generative AI, on the insurance industry,” wrote Congresswoman Waters.
“The growing use of AI in insurance raises similar questions and concerns as in the housing space regarding consumer protections, fair treatment, and adequate access to insurance coverage,” Waters added.
Waters posed several questions, asking: “How does the use of AI in insurance underwriting affect the pricing and availability of insurance coverage and what are the federal-level implications? How is AI being leveraged to predict risk and process claims? In addition, do federal AI-related regulations affect the insurtech industry?”
She emphasised the importance of insurance as a financial safety net for consumers, particularly in disaster recovery.
“Because insurance is key to consumers’ ability to recover from disaster events and provide for their families in difficult circumstances”, Waters said, a review of AI's use in the insurance sector is essential.