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A report by the RAND Corporation has highlighted the growing concern among insurers about the potential risks associated with artificial intelligence (AI). The report notes that AI-related harms are already emerging, including incorrect or misleading outputs, deepfakes, privacy violations, intellectual property disputes, fraud, product defects, and discriminatory decisions. Insurers are becoming wary of taking on this risk, and some are introducing exclusions in their policies to exclude coverage for AI-related harms.
The RAND Corporation report highlights the growing concern among insurers about the potential risks associated with AI.
AI-related harms are already emerging, including incorrect or misleading outputs, deepfakes, privacy violations, intellectual property disputes, fraud, product defects, and discriminatory decisions.
Insurers are becoming wary of taking on this risk, and some are introducing exclusions in their policies to exclude coverage for AI-related harms.
The report notes that companies are already grappling with AI-related incidents and related litigation while insurers, regulators, brokers, and policyholders puzzle over risks, coverage, and rules.
The report suggests that policy researchers and brokers, carriers, and reinsurers need to develop a common taxonomy to track AI incidents and claims.
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The report highlights the need for better data to price AI-related harms and the potential consequences for the insurance industry. If AI ends up being uninsurable, the AI industry will have to moderate its ambitions and sales targets while corporate customers delay AI projects to fulfill their fiduciary obligations.
The report highlights the need for better data to price AI-related harms and the potential consequences for the insurance industry.
If AI ends up being uninsurable, the AI industry will have to moderate its ambitions and sales targets while corporate customers delay AI projects to fulfill their fiduciary obligations.
The report notes that some insurance carriers are excluding AI-related harms, and new and existing companies are filling the coverage gaps.
The report suggests that state regulators should push for an AI Coverage Notice to clarify what's covered and what isn't.
The report highlights the need for a common taxonomy to track AI incidents and claims.
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A route planner searches possible journeys using explicit rules. What does this illustrate about AI?
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The report suggests that policy researchers and brokers, carriers, and reinsurers need to develop a common taxonomy to track AI incidents and claims. State regulators should also push for an AI Coverage Notice to clarify what's covered and what isn't.
Policy researchers and brokers, carriers, and reinsurers need to develop a common taxonomy to track AI incidents and claims.
State regulators should push for an AI Coverage Notice to clarify what's covered and what isn't.
The AI industry may get the pause it has been asking for as insurers puzzle over how to price the end of humanity.
The report suggests that the risks just need to be understood and priced accordingly.
The report notes that the AI industry will have to moderate its ambitions and sales targets while corporate customers delay AI projects to fulfill their fiduciary obligations.