What happens when the software everyone seems to be attempting to introduce becomes too dangerous for anyone to insure? Accordingly Reporting from the Financial Timeswe'll discover soon.
Major insurers reminiscent of AIG, Great American and WR Berkley are asking U.S. regulators for permission to exclude AI-related liabilities from corporate policies. One underwriter describes the outcomes of the AI models to the FT as “too big a black box”.
The industry has good reason to be afraid, history reminds us. Google's AI overview falsely accused a solar company of getting legal problems, resulting in a lawsuit 110 million dollars Lawsuit back in March. Air Canada stalled on recognizing a reduction last 12 months Chatbot invented. And last 12 months, fraudsters used a digitally cloned version of a senior executive to steal 25 million dollars from London design engineering firm Arup during a video call that looked completely real.
What really scares insurers isn't an enormous payout; There is the systemic risk of 1000’s of simultaneous claims when a widely used AI model comes into play. As one Aon executive put it, insurers can absorb a $400 million loss for an organization. What they will't handle is an agent AI mishap that triggers 10,000 casualties directly.
