Academic Article: Algorithmic Discipline Without Asset Inflation: AI-Assisted Risk Deliberation in Marine Insurance Governance
Abstract
Artificial intelligence implemented into the field of insurance analytics, but its functions within the arena of underwriting governance are not necessarily well-understood in most of the institutional contexts. This paper discusses the use of artificial intelligence as an organized support analyst in the field of marine insurance underwriting but does not change the basis of prudential governance. The study is based on the association between algorithmic decision support and the old models of marine insurance risk assessment that are provided by traditional committee-based underwriting structures. Researchers oppose the role of algorithmic systems on the visibility of the maritime risk indicators, the quality of the underwriting records, and the readability of the rationale used by the institutional decision. Maritime insurance clusters, i. e., case observations of cargo transportation, ship transportation, and offshore energy activity, can inform how AI applications react to complicated risk propositions in the sea. The cases that have been observed prove that the discipline of governance is well maintained when the results of algorithmic applications are viewed through the spectacles of professional judgment and are documented in comprehensible descriptions of the decisions made. Artificial intelligence thus makes the best use as a support system in governance and not as a system that substitutes deliberation in institutions. The advantage of marine insurance institutions consists in the fact that a better analytical clarity of AI with maintaining accountability and open decision-making frames in the underwriting practice, is beneficial. This paper is theoretically informed by the institutional governance theory and financial representation theory to argue how the concept of algorithmic decision support interacts with prudential underwriting structures in marine insurance institutions. The article hypothesizes a conceptualization of governance that is based on a concept of artificial intelligence acting as an analytical layer of structuring, arranging the information on risks without changing the institutional logic of financial representation. The study applies the existing governance standpoints on algorithmic decision-making in the regulated financial space to the extent that AI is practiced as a deliberative support infrastructure, as opposed to a system geared toward generating value. The theoretical perspective and the consequences of this to underwriting governance are also detailed in the paper below.
Keywords
Artificial Intelligence, Marine Insurance, Underwriting Governance, Algorithmic Decision Support, Risk Transparency, Insurance Regulation
LINK: Journal of Intelligent Decision-making and Information Science
