Insurance managers must have early involvement in the development of artificial intelligence strategy and product rollout, Aon says.

The broker’s Enabling AI Value in the Finance Sector report says 98% of chief risk officers and insurance managers are brought into digital product or transformation projects too late to ensure associated risks are properly identified and managed.

“The velocity of new AI risks is outpacing traditional approaches to risk management,” Aon says. “CROs need to be more pre-emptive about being involved in shaping the AI agenda for their organisations.”

When part of an AI committee, CROs can advise on the risks and insurance implications of projects at a more formative stage.

This reduces the risk of project abandonment or liability to the company and executives.

“CROs and insurance managers play a crucial role in providing analysis and advice to the various teams working on AI projects at the digital frontier of their companies.”

Aon says 79% of Asia-Pacific businesses it surveyed are deploying AI products or plan to do so in the next year.

“CROs and insurance managers are often not involved in these initiatives at an early stage: it is only when the product or service is close to being launched that issues around security, privacy, compliance or other business risks surface and risk leaders are involved,” the report says.

See the report here.