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Insurance Markets: Benefits and Challenges Presented by Innovative Uses of Technology

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Report Type Reports and Testimonies
Report Date June 7, 2019
Release Date June 7, 2019
Report No. GAO-19-423
Summary:

The innovative use of technology by insurance companies has the potential to improve customer experiences and lower costs. But it could also create risks for consumers and challenges for regulators.

For example, we found that some insurers have begun to use artificial intelligence to explore ways to reduce costs by automating information gathering and risk assessment. However, this could make it more challenging to ensure that factors like race are not being used in the models that determine premiums. We also found that how insurers collect and use consumer data raises questions about data accuracy, privacy, and ownership.

 

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