A year ago Pinpoint announced that we had sought and achieved SOC 2 Type 2 Certification. We maintain that the only viable option for Pinpoint was Type 2 certification, as opposed to Type 1, as it truly analyzes compliance with well-developed procedures/controls. At the time, Pinpoint CEO Scott Ham remarked “We have always had a strong information security posture. Attaining the SOC 2 Type 2 certification is a terrific achievement and provides further peace of mind for us and for our clients.” We are proud to announce that we just successfully completed our certification for the second year.
However, SOC 2 Type 2 certification is just part of the equation in providing our powerful products to our clients and the industry. For years we have stood behind the ethical framework of our processes, and recently we engaged a third-party legal and technical firm to put our models through rigorous testing for bias and to evaluate Pinpoint for compliance with both well-established and developing regulatory frameworks and best practices in Ethical AI.
We chose the firm BNH to conduct the audit because of their exceptional reputation, and because of their highly specialized legal and technical expertise in advising Fortune 500 and Government clients on use of AI compliant with regulations and best practices. We asked that they evaluate us for bias in outcomes (disparate impact) as well as proxy variables; the tests conducted were selected based on insurance industry standards and existing legal standards of antidiscrimination law. BNH findings stated:
“We found that the model is in compliance with legal requirements related to bias, in reference to bias perpetrated against protected groups in the United States, in the risk assessment and pricing of certain insurance products and that further, sufficient risk controls have been implemented in relation to the model to align with existing best practices in AI risk management”
The reality is that Artificial Intelligence capabilities are quickly becoming a “must have” core competency for carriers wishing to succeed in the insurance industry. Pinpoint will continue to lead from the front on privacy, data security and ethical AI, allowing our clients to fully realize the material benefits of the earliest, and most accurate loss predictions and risk scores available to P&C insurers.
Further reading: check out Pinpoint CEO article in The Money Outlook “5 Questions Every Insurance Organization Should Ask When Partnering with AI Powered Insurtechs”