(Warsaw skyline. Image credit: ClickerHappy/Pixabay.)
Powszechny Zakład Ubezpieczeń (PZU, Warsaw), a major player among financial institutions in Central and Eastern Europe, has worked with the SAS AI Governance Advisory to develop and implement a comprehensive AI governance framework, according to a statement from the Cary, N.C.-based vendor. The initiative aims to protect customers, strengthen regulatory compliance, and position the insurer for responsible innovation.
A recent survey conducted by SAS on the use of generative AI in insurance provides context for the vendor’s work PZU. The survey found that 57 percent of insurance sector respondents described their organizations’ AI governance and monitoring frameworks as “in development.” More than a quarter (27 %) said their frameworks were “ad hoc or informal,” and about 1 in 10 (11%) reported having no AI governance in place.
Reggie Townsend, VP, Data Ethics, SAS.
“While we are in an era of out-of-the-box AI solutions, data ethics is anything but one-size-fits-all,” says Reggie Townsend, VP, Data Ethics, SAS. “AI governance, customized to ensure safe deployment, is the future of industry AI. Regulatory compliance is just a starting point. Robust oversight guided by an organization’s data maturity, unique culture and growth goals maximizes AI’s value while limiting risk.”
PZU (Warsaw), a 200-year-old institution, has used data across hundreds of integrated systems for nearly three decades. Several hundred artificial intelligence and machine learning models support core business functions daily. Its early investments in data governance included the formation of a dedicated team to establish policies and coordinate quality processes.
In response to new regulations following the emergence of generative AI, PZU sought to modernize its AI supervision mechanisms. The insurer selected the SAS AI Governance Advisory as one of its project collaborators, based on SAS’ continued focus on responsible innovation and its industry-recognized Data Ethics Practice, according to the vendor’s statement.
SAS reports that PZU has used its solutions in key business areas including sales, customer relationship management, fraud detection, claims automation, and risk management. Developing an AI governance framework in partnership was a logical progression.
The SAS AI Governance Advisory worked with PZU across four stages to develop tailored best practices:
- Oversight – Advised on innovation goals and supported policy development for AI governance strategy and enforcement.
- Compliance – Assessed regulatory requirements and reviewed readiness for applicable standards.
- Operations – Recommended data and AI management procedures aligned with company goals, compliance needs, and cultural context.
- Culture – Collaborated to support norms and practices that promote responsible AI use among employees.
The resulting framework establishes policies covering the full lifecycle of PZU’s AI and ML models. These policies support data quality, efficient resource allocation, and continuous model monitoring, SAS says.
Marek Wilczewski, Managing Director, Information, Data and Analytics Management, PZU.
“Insurance policies are essential across all industries, giving insurers a unique role and influence in shaping responsible AI innovation,” comments Marek Wilczewski, Managing Director, Information, Data and Analytics Management, PZU. “PZU intends to meet this challenge by harnessing the potential of data and AI to address key industry issues, the effects of climate change among them. This project with SAS is helping PZU better and more responsibly use AI to serve customers. We want to set an example for others: generating profits ethically, with responsible use of data and artificial intelligence, is not only possible—it’s the only right way for insurers.”
“When thoughtfully implemented with appropriate guardrails, AI has the revolutionary potential to change the industry for the better; poorly applied, businesses risk amplifying mistakes and bias en masse,” adds SAS’ Townsend. “By going all in on AI governance, PZU is proving that industry heavyweights can lead us to a collective future where AI is used ethically, equitably and sustainably.”
As insurers adopt AI technologies, their leadership is conscious that they face a growing responsibility to ensure their use is transparent and accountable, SAS. A joint report by the vendor and the Insurance Information Institute, Pioneering Ethical AI: The Crucial Role of Insurers, explores how the industry can lead in responsible innovation.