Insurer Bad Faith and AI Bias: Legal Strategies to Challenge or Defend Insurer AI Tools

The panel explored how insurers are increasingly deploying AI tools—such as machine learning for underwriting, natural language processing for claims, computer vision for damage assessment, and predictive analytics—to make critical decisions, and the legal, ethical, and practical issues this creates. The conversation also covered discovery strategies for uncovering insurer AI use, policyholder risks from their own AI tools, how insurers are responding to AI risks with exclusions, sublimits, and new products, and best practices for maximizing coverage of AI-related exposures under traditional insurance policies.