Call us now:
For the insurance industry, AI, alongside cyber, is a risk and opportunity. Unfortunately for the insured, both cyber and AI are creating risks more quickly than they can respond, and the insurance industry is starting to adjust accordingly. While the insurance industry took many years to adapt to cyber risk (it still hasn’t), it’s only taken a couple of years to adapt to the rising risks that AI is creating for corporates and their boards.
AI is a complex risk; even the hyperscalers are finding it tough to manage AI risk, while managing AI opportunities. ClaudBot has demonstrated the fragility of AI and security, and with such uncertainty, insurers are starting to address complex AI risk with full or limited exclusion clauses.
https://lnkd.in/eavpucth
But the AI genie is out of the bottle, and it’s not going back in; so it’s a case of riding the AI rollercoaster. As Matthew T. Studley points out, “But it also comes with a new risk that, frankly, very few people are well versed in, across the insurance community in total, let alone at any individual firm.â€
Like cyber risk, there are few solutions for managing AI risk. Regulation is a lever that is being adopted by nation-states. But for insurers, there is really only one option: for boards to demonstrate management of AI risk as part of their risk transfer program. Following the same capital adequacy methodology as that adopted by systemically important banks and insurers.
@Thaddeus Dziekanowski Judy Selby Adam Gladsden
@Parava Security Solutions
#artificalintelligence
https://lnkd.in/eu-XRPYz
View Original Post
https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A7431293906127847424