On February 1, 2024, CAFII hosted its first webinar of 2024 – Artificial Intelligence Technology and the Impact on Life and Health Insurance in Canada, at which CAFII Executive Director Keith Martin was joined by Amber Mac.
A. Mac is the president of AmberMac Media, Inc., an award-winning content development agency, an award-winning podcaster (This Is Mining, The AI Effect), and a bestselling author. She is also the co-host of the weekly emerging technology radio show and podcast #TheFeed on SiriusXM. In 2022, Amber joined the board of directors at GFI (TSXV: PEAS), a plant-based farm-to-fork food and ingredients company. In 2021, Amber was named one of the Bay Street Bull Women of the Year for her leadership in the technology sector. In 2018, she was named one of DMZ’s 30 inspirational women making a difference in tech.
Many representatives from CAFII’s 14 member companies and 9 Associates attended the webinar, as did representatives from allied industry Associations, such as the Canadian Life and Health Insurance Association, or CLHIA; the Travel and Health Insurance Association, or THIA; and the Canadian Bankers Association, or CBA. Several insurance and financial services regulators and policy-making authorities attended as well, including the following:
- The Authorité des marchés financiers, or AMF;
- The Insurance Councils of Saskatchewan, or ICS;
- The Government of Saskatchewan;
- The Alberta Insurance Council, or AIB; and,
- The Financial Services Regulatory Authority of Ontario, FSRA;
After some opening comments by CAFII Executive Director Keith Martin, Amber Mac began the webinar by recounting a few historic moments in recent history that highlight the ways in which technology and AI have changed how we interact and live. She was transparent about her optimism for AI and the future. While many fear the expanding technological advances, A. Mac remarked that these kinds of advances are nothing new; the invention of the elevator caused much discomfort, yet now they are commonplace. A. Mac argues that, because humans are relentlessly adaptable, we will never become obsolete. We will, instead, change the ways in which we work.
To navigate these changes, A. Mac suggested aligning both company and individual mindsets alike with these three pillars:
- Purpose, or leading with values and actions that align. This is necessary to navigate transformation in a deliberate and successful way.
- Adaptation. Companies and employees alike must continue to acquire new digital and interpersonal skills in a world that is rapidly changing.
- Trust. Human-to-human relationships, built upon a foundation of transparency and honesty, will be particularly important as technology and AI continue to grow. We must be able to trust each other and the information we share with each other to work together.
The final point she made was the interplay between health and AI.Connected devices have grown significantly as patients are increasingly utilizing AI to help take control of their health.
K. Martin asked A. Mac if she thought the day would come when human adaptability would be unable to cope with the speed at which technology is changing. Her response was that this is certainly a risk, but with the proper precautions and considerations, it does not have to be a reality. This can be done by ensuring companies have proper guiding principles and protocols in place to protect people and data. Governance is, therefore, key. The idea of an AI pause has been toyed with, but A. Mac is unconvinced of the feasibility of this.
K. Martin asked how the L&H industry could be impacted by new AI technologies, like wearables. A. Mac said that there are already several new technologies, including apps, that are already changing the ways in which people keep track of their health. Devices and applications like AI-integrated wearables for health tracking and data collection or chatbots for wellness management are just a few examples of industry advances. A. Mac concluded her thought by stating how she believes this technology will be used more and more for preventative rather than responsive health management.
An audience member asked how AI might impact IT and recruitment issues around qualifications. A. Mac responded that something to remember is that though there will be job losses due to new technologies, there will be net new jobs as new positions are created in response to these technological changes. While the skills shortage is real, proper training and education can combat this. Adaptive learning is, thus, critical to future success for both individuals and companies.
K. Martin asked A. Mac if she expects to see a clear distinction in the performance and success between the non-technology companies, like insurance companies, who have embraced AI and those who missed the boat. She replied that she thinks this is a real possibility, especially if companies are not currently asking: “What does our AI roadmap look like in order for us to bring our employees along?” In fact, A. Mac indicated that this differentiation between companies that embraced AI and those that didn’t may very well be seen in the next few years, as jobs will likely look radically different in the next 5 years.
Moving on, the next question was: What are the legal and ethical implications of AI algorithms? And are there risks that AI will become independent of human intervention? This is, arguably, people’s biggest concern, namely that the machines will develop a general intelligence and independence from their human creators. This is something that needs to be considered as it could become a risk, but with proper guidelines, it does not have to become a reality. Concerns around data security and proper government regulation are only growing. A. Mac expressed the need for more government regulation as far as AI and data security go. This can be seen in “deep-fakes” and the spread of misinformation. This, however, needs to be both a national and global approach since AI is borderless.
A poll was sent to all audience members, asking: “I believe that AI will have a transformative impact on the L&H industry over the next 3 years.” The consensus, at 88%, was yes; 12% said no. A. Mac expressed her agreement with the majority.
In a follow-up question, K. Martin asked A. Mac if she thought additional guardrails were or will be needed around generative AI in insurance, especially as it relates to classic insurance information. She replied that having frameworks in place is key; however, additional guardrails may also be needed, especially in terms of transparency requirements, depending on the use of generative AI.
Returning to governance, regulatory technology is growing across provinces and regulatory bodies. K. Martin asked about regulatory technology’s impact in terms of helping regulators identify areas of concern to better ensure consumer protection. A. Mac noted that, to truly help protect consumers, regulators and policymakers must engage in data analysis. It is not enough to merely collect the data; the data must be investigated and questioned to make it truly beneficial for consumers.
An audience member asked if there is the potential for a new insurance industry around protection products to protect against harm produced by AI. A. Mac responded that, firstly, a definition of technological harm needs to be established. Secondly, this industry already exists, and as concerns with issues such as fraud and cyber security increase, such insurance products will only increase.
Considering how data-focused the L&H industry is, will technology change how industry handles data? AI can help because mundane or time-consuming tasks can now be done in part by machines, thus freeing up employees to tackle higher-value jobs that cannot be completed by machines. When we think about data collection, we must ask how we can ensure safety, especially considering the inherently personal quality of L&H data.
In terms of emerging technologies, A. Mac predicted that AI will likely be the consistent thread throughout. She concluded her thought by emphasizing the aforementioned pillars and urged leaders to develop AI frameworks based on these values.
K. Martin asked A. Mac for her final words of wisdom. She concluded the webinar by saying that it is never too late to get up to speed with AI. Everyone is feeling overwhelmed, but we do not have to fall behind if we are diligent and adaptable.
