Insurance industry faces AI accountability and consumer literacy challenges

The insurance industry faces dual challenges regarding technological integration and consumer comprehension. In Mexico, the rise of artificial intelligence in underwriting and claims adjustment raises concerns about accountability and oversight. While AI can process decisions at high speeds, the lack of human-scale auditing may hide systemic biases and break the traditional chain of responsibility that provides epistemic certainty to policyholders.

In Chile, a study by the Asociación de Corredores de Bancaseguros (CBS) and Cadem indicates a significant knowledge gap among consumers. Approximately 73% of respondents find insurance information confusing or difficult to understand, and 43% cannot distinguish between an insurance company and an insurance broker. This lack of clarity regarding terms such as deductibles, premiums, and exclusions can prevent individuals from making informed decisions and understanding their coverage limits.