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A Groundbreaking Code of Conduct for Insurance Claims Handling Using AI

31 January 2024 - A collaboration between 127 experts has led to the creation of a comprehensive AI code of conduct for organisations and individuals within and serving the insurance industry. This initiative aims to establish and uphold the highest standards of behaviour and ethical responsibility when planning, designing, or utilising AI in the management and settlement of insurance claims.

Led by Eddie Longworth, Director of JEL Consulting, stakeholders from across the claims and supply chain sectors came together to create a set of standards that underscores the commitment of signatories to establishing a fair, equitable, and accountable environment for customers involved in insurance claims.

The code addresses crucial aspects such as safety, security, and robustness in using information, emphasising the need for verifiable, auditable, and adherence to rigorous cybersecurity practices. Furthermore, it requires transparent, equitable, and explainable decision making, allowing for scrutiny and trust across all demographics and geographies.

"The launch of the AI Code of Conduct initiative is a milestone in ensuring ethical standards and the responsible use of AI within the claims handling process,” said Eddie Longworth, Director of JEL Consulting who spearheaded the initiative. “This is the result of tremendous co-operation from 127 experts from a wide variety of perspectives which means the code benefits all the stakeholders involved in the claims process.”

A key component of the code involves governance mechanisms to define and manage compliance when designing and implementing claims management systems and processes. This ensures that decisions and subsequent actions involving AI in claims are not only recorded and audited but are also ethically justifiable.

The code also establishes the right of claimants challenging AI-led decisions to seek redress through communication with skilled human input to explain the decision-making process. This prioritises ethical practices and addresses any concerns raised by claimants, ensuring transparency and accountability throughout.

Signatories to the code can be organisations or individuals who will make a collective pledge to uphold the highest standards of behaviour and ethical responsibility. Chris Sawford, MD of Verisk Claims UK, who is one of the contributors to the code, said:

“As a leading UK claims analytics and technology provider, we recognise the transformative power of artificial intelligence and the value of a core set of responsible principles to promote fairness, transparency, privacy, and accountability in the claims industry. By adopting the code for current and future UK claims analytics solutions, we reinforce our existing dedication to delivering superior, ethical and responsible claims management tools to help our clients speed up their processes, validate data and detect potential fraud.”

Jeremy Trott, Claims Director at Ecclesiastical Insurance, helped draft the new Code of Conduct and commented: “It’s really important that the industry is open and transparent with how we implement AI, especially in keeping customers informed of how we use it. This Code will help insurers and suppliers to make sure our priorities are right when we make important decisions around AI’s usage.”

Eddie added:
“By signing up to the code and committing to its standards, we hope this initiative will strengthen the trust, accountability and reputation of the insurance industry with customers and regulators. This is a significant step forward in ensuring the considerable capability of AI is harnessed for the benefit of everyone involved in the claims settlement process.”

Notes for the Media:
1.    Organisations and individuals that wish to sign up for the code can find out more by visiting or email or telephone 07904 568049.

2.    Organisations and individuals that sign up for the code can choose to use the logo on any materials, email signatures, websites, or other promotional media all free of charge. 

3.    A full copy of the code of conduct for the use in AI claims is attached.

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