PZU models AI governance for the insurance industry

Insurer works with SAS AI Governance Advisory to protect customers and drive AI ethics

CARY, N.C., April 8, 2025 /PRNewswire/ -- In a recent survey about the growing use of generative AI in insurance by data and AI leader SAS, 57% 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 their AI governance was "nonexistent."

Against this backdrop, Powszechny Zakład Ubezpieczeń S.A., better known as PZU, one of the largest financial institutions in central Europe, has worked with the SAS AI Governance Advisory to develop and implement a comprehensive AI governance framework. This framework protects customers, advances regulatory compliance and keeps the insurer on the leading edge of responsible innovation.

"While we are in an era of out-of-the-box AI solutions, data ethics is anything but one-size-fits-all," said Reggie Townsend, Vice President of Data Ethics at 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."

Inspiring insurance evolution
PZU, a 200-year-old institution, has leveraged the potential of data across hundreds of integrated systems for nearly three decades. Several hundred AI and machine learning (ML) models drive essential business functions each day.

A pioneer in comprehensive data management, quality assurance and ethical use, PZU invested years ago in developing data governance practices, including establishing a team to set policies and coordinate data governance and quality processes.

As a surge of fresh regulation followed the post-ChatGPT AI boom, PZU's leadership quickly realized that modernizing its AI supervision and governance mechanism was a commitment not only to meeting compliance mandates but also to preparing for the future challenges of technology development.

PZU selected the SAS AI Governance Advisory, a new service for SAS customers, as one of the collaborators who would pilot the project. SAS' continued investment in responsible innovation, centered around its industry-leading Data Ethics Practice, determined the choice.

PZU has long trusted SAS solutions to pilot core business functions like sales and customer relationship management, fraud detection, claims automation, customer service and risk management. Establishing a new AI governance framework together was a logical next step.

Tailored to insure tomorrow
The SAS AI Governance Advisory consulted with PZU in four stages to create custom best practices for the insurer:

1. Oversight: Advising on PZU's innovation goals and helping them set policies for AI governance strategy and enforcement.
2. Compliance: Exploring PZU's compliance needs and discussing readiness for regulatory standards.
3. Operations: Reccommending operational procedures for AI and data management taking into account PZU's goals, regulatory requirements and the culture they aim to create.
4. Culture: Collaborating to foster positive social norms within the insurer's culture that would empower employees to adhere to trustworthy AI practices.

In the process, PZU and SAS experts defined policies for the entire lifecycle of all the insurer's AI/ML models to ensure adequate data quality, optimal resource use and continuous monitoring.

"Insurance policies are essential across all industries, giving insurers a unique role and influence in shaping responsible AI innovation," said Marek Wilczewski, Managing Director of Information, Data and Analytics Management at 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," said 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."

The future of trustworthy innovation in insurance
As insurers embrace the power and possibility of AI technologies, they have an obligation to ensure that they innovate responsibly. Explore how insurers can ethically integrate AI by downloading Pioneering Ethical AI: The Crucial Role of Insurers, a joint report by the Insurance Information Institute (Triple-I) and SAS. 

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