Creating ethics guidelines for artificial intelligence and big data analytics customers: The case of the consumer European insurance market.

The European Union (EU) has a strong reputation and track record for the development of guidelines for the ethical use of artificial intelligence (AI) generally. In this paper, we discuss the development of an AI and ethical framework by the European Insurance and Occupational Pensions Authority (EIOPA), for the European insurance market. EIOPA's earlier report on big data analytics (EIOPA, 2019) provided a foundation to analyze the complex range of issues associated with AI being deployed in insurance, such as behavioral insurance, parametric products, novel pricing and risk assessment algorithms, e-service, and claims management. The paper presents an overview of AI in insurance applications throughout the insurance value chain. A general discussion of ethics, AI, and insurance is provided, and a new hierarchical model is presented that describes insurance as a complex system that can be analyzed by taking a layered, multi-level approach that maps ethical issues directly to specific level(s).