Life’s Not Fair. Is Life Insurance?

Among the broad categories of insurance offered in the United States,1 individual life insurance is unique in a few key respects that make it an attractive candidate for the adoption of artificial intelligence (AI). First, individual life insurance is a voluntary product, meaning that individuals are not required by law to purchase it in any scenario.2 As a result, in order to attract policyholders, life insurers must convince customers not only to choose their company over other companies, but also convince customers to choose their product over other products that might compete for a share of discretionary income (such as the newest gadget or a family vacation). Life insurers can, and do, argue that these competitive pressures provide natural constraints on the industry’s use of practices that the public might view as burdensome, unfair or unethical and that such constraints reduce the need for heavy-handed regulation.3