AI is too risky to insure, say people whose job is insuring risk
Several major insurers are seeking regulatory approval to exclude AI-related liabilities from corporate policies, citing the unpredictable nature of AI models as a significant concern.
MAIN POINTS
- Insurers like AIG, Great American, and WR Berkley want to exclude AI liabilities.
- U.S. regulators are being approached for permission regarding these exclusions.
- AI models' outputs are considered unpredictable and problematic by underwriters.
- The complexity of AI models is likened to a "black box" by industry professionals.
TAKEAWAYS
- Insurers are increasingly cautious about AI-related risks in corporate policies.
- Regulatory approval is necessary for excluding AI liabilities from insurance coverage.
- The unpredictability of AI models raises concerns among insurance underwriters.
- Understanding AI's complexity is crucial for assessing its impact on insurance policies.