Chinese Insurer Ping An Employed Facial Recognition to Determine Customers’ Untrustworthiness, Which Critics Alleged to Likely Make Errors and Discriminate

Ping An, China's largest insurance company, has implemented artificial intelligence using facial recognition software to analyze customers' micro-expressions to assess their truthfulness and determine insurance eligibility and terms. The AI system also evaluates customers' body-mass index and general well-being to set health insurance premiums, with higher costs for those deemed overweight. The system is designed to identify customers who are likely to make insurance claims, which the company seeks to avoid to maximize profits. The report suggests this technology could disproportionately impact marginalized groups, including ethnic minorities like Uyghurs and economically disadvantaged populations, who may be more likely to require insurance services due to systemic discrimination and precarious living conditions. The system represents a shift toward using AI to differentiate between profitable and unprofitable customers, potentially excluding those who most need insurance coverage. The incident is presented as a cautionary example of how AI could be misused in insurance markets, particularly in contexts where regulatory protections against discrimination are limited.