Collaborative Effort Uncovers Potential Dangers of Artificial Intelligence Technology
The UK is taking strides to address the challenges and opportunities posed by artificial intelligence (AI) in the insurance sector, with a focus on AI-related risks in critical domains like transport and healthcare. The Prosperity Partnership "AI2: Assurance and Insurance for Artificial Intelligence," led by the University of Edinburgh, is a collaborative initiative aimed at developing novel methods for insuring against risks associated with the commercial application of AI.
The partnership seeks to establish new frameworks and methodologies for assessing, assuring, and insuring AI technologies. AI introduces unique risks and complexities that traditional insurance models may not cover adequately. By creating tailored insurance solutions and assurance protocols, AI2 aims to enable safer deployment of AI systems while providing risk management clarity for insurers and users.
Key areas impacted by AI2 include risk modelling and data analytics, the development of new insurance products, regulatory and ethical assurance, and cross-sector collaboration. AI2 aims to enhance insurers' capabilities to understand and price risks more accurately, particularly with large, complex data generated by AI applications in transport and healthcare. The partnership also supports the design of innovative insurance products that can cover AI system failures, liability, and cyber risks related to AI deployment.
Regulatory and ethical assurance is another crucial aspect, as AI2 contributes frameworks to assure AI systems comply with regulatory standards and ethical principles, thus reducing uncertainty for insurers. Cross-sector collaboration is fostered by involving stakeholders from AI developers, insurers, healthcare providers, and transport operators, leading to comprehensive approaches to managing AI-specific risks.
The Prosperity Partnership is expected to advance the insurance industry's readiness to embrace AI technologies safely and sustainably. Benefits include enhanced trust in AI via better risk management and insurance coverage tailored to tech-driven sectors like transport and healthcare.
Although precise project details on AI2 specifically from UKRI or extensive public reports are limited, the overarching themes align with industry trends indicating growing recognition of AI's transformative impact on insurance and the critical need for assurance and insurance mechanisms designed for AI risks.
Meanwhile, other collaborations are underway. Audatex, part of Solera Holdings, Inc., is collaborating with Asirom VIG, one of the most important insurance companies in Romania, to use AI for faster and automated claims processing. The goal is to shorten key-to-key processes in claim settlement.
In addition, the LMA has published a survey on the use of AI and machine learning in the actuarial and risk sector, conducted in partnership with Barnett Waddingham. The survey explores current practices and the potential future impact of AI on the industry.
As the adoption of AI technologies in industry continues to grow, establishing a robust AI assurance and insurance framework may lead to wider and safer adoption. This framework could provide clear incentives for AI developers to create safer and more reliable products.
[1] For more details on the survey findings, please visit the LMA's official website.
- The Prosperity Partnership's focus on AI-related risks in transport and healthcare seeks to establish new methods for insuring against risks associated with the commercial application of AI, thus facilitating safer deployment of AI systems.
- By creating tailored insurance solutions and assurance protocols, AI2 aims to enable business and finance sectors, including those in transport and healthcare, to understand and price risks more accurately, reducing uncertainties and providing risk management clarity.
- Regulatory and ethical assurance is a crucial component of AI2, as it contributes frameworks to ensure AI systems comply with regulatory standards and ethical principles, enabling insurers to operate with greater confidence.
- In the wake of increased AI adoption across industries, the development of a robust AI assurance and insurance framework could lead to wider adoption of these technologies, with clear incentives for technology developers to create safer and more reliable products.
