AI Risk Management in Indian Insurance Companies: Issue and Constraints

Abstract

The methodical process of recognizing, evaluating, and reducing risks or uncertainties that might have an impact on an organization is known as risk management. This entails assessing the impact and likelihood of different hazards, creating plans to reduce possible harm, and regularly assessing how well these plans are working. Strong risk management techniques are required due to the diverse range of hazards associated with the insurance industry's adoption of artificial intelligence (AI). As the use of AI technology in the insurance sector continues to expand, AI risk management is becoming increasingly important. With the knowledge the growing use of artificial intelligence (AI) in underwriting, claims processing, fraud detection, customer service, and other business areas, AI risk management is a crucial topic for Indian insurance firms.