On 7 June 2022, the Italian insurance supervisory Authority (“IVASS”) published a press release - together with a Letter to the Market - whereby it informed the market about the launch of a survey aimed at obtaining information on the use of Machine Learning algorithms (i.e. complex algorithms capable of finding solutions by learning from input data and based on the experience, without the use of mathematical models and predetermined equations) by insurance undertakings in customer relations. Algorithms other than Machine Learning and those that, although using this technology, are dedicated to the management of companies' internal processes are expressly excluded from the survey.
The survey - which follows on from the work already conducted by EIOPA on the use of Big Data in the insurance industry related to motor and health insurance and on some aspects of Artificial Intelligence and Machine Learning for supervisory aspects - is intended in particular to understand the use of these artificial intelligence algorithms in key processes, such as customer profiling, policy pricing, claims management, the use of chatbots for customer service and cross-selling.
Questions contained in the survey includes aspects related to governance of Machine Learning algorithms (including internal policies, management of risks and internal training for staff), disclosure to customers and consent, algorithms security, fairness and outsourcing and information about the main algorithms used and their application.
The survey is addressed to the Italian insurance undertakings (90) and the Italian branches of third-country undertakings (4), which are required to fill in online, through the LimeSurvey platform, a specific questionnaire by 30 September 2022.
More in detail, the abovementioned entities must provide IVASS, within 10 days a reference contact and an ordinary email address to the dedicated mailbox, to which an email containing the link to the survey questionnaire will be subsequently sent, with the relevant filling-in instructions.
Click here to download the Letter to the Market and here to download the questionnaire (both available in Italian only).
Authored by Silvia Lolli and Davide Valloni.
