Tim Cunningham, chief information officer of Grange Insurance Company, responded to written questions about how the insurer governs its use of AI.
Has your company set a formal policy for using AI?
Our cross-functional AI Working Group established a policy to ensure all forms of AI are used ethically and responsibly. Innovation is a cornerstone of our business strategy at Grange, and we remain focused on harnessing AI's potential while effectively managing risks. By formalizing this policy, we can maximize AI's benefits while safeguarding our customers, agency partners and the security and privacy of our data.
How does that policy guide Grange's use of AI?
Grange's AI policy ensures the ethical and responsible use of AI across our business, reinforcing our commitment to protecting sensitive data and managing potential risks. Our policy establishes governance, accountability and risk management frameworks to maintain integrity while leveraging AI's benefits. Ongoing training empowers our associates, at all levels, to understand AI's impact and contribute to its responsible adoption.
Does the policy have specific points addressing business functions such as underwriting, claims or customer service?
Our AI policy serves as an enterprise-wide framework to ensure ethical and responsible usage. While core principles like data protection, managing risk and governance apply universally, we understand areas of our business have unique AI needs. Our AI Working Group collaborates closely with each area to ensure alignment with our overarching policy.
What are Grange's priorities in setting the policy? What factors were considered?
At Grange, we've been thoughtfully integrating AI into our business for years, and having a clear policy helps us do it the right way. Our top priorities are ethical use, risk, compliance, data protection and transparency. With strong governance in place, we're staying ahead of potential risks and making sure AI aligns with our business strategy.
What subjects were addressed in crafting the AI policy?
Developing a policy required us to address several critical areas including ethics, bias, governance and accountability, risk management, associate training, human oversight and more to ensure responsible adoption and decision-making.
Further cementing Grange's commitment to AI and innovation is our investment in data science. Our data science capabilities strengthen our AI policy by ensuring accurate and ethical decision-making while managing risks. Meaningful strides have been made in developing our data science team and implementing an enterprise data and analytics strategy that aligns with our AI policy and supports Grange's business strategy.
