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Insurance companies must start thinking about these questions now, she said, or they run the risk of being left behind as further advancements unfold. This is especially relevant given that some litigation has already started around the use and misuse of AI, particularly in the US. The first thing for insurers to think about is the implications of their clients misusing AI and whether it’s implicitly or explicitly covered in their insurance policy. Insurers need to be very aware of what they are and are not covering their clients for, or else risk repeating what happened during the pandemic with the business interruption lawsuits and payouts. “It’s important to already know whether your current policies cover potential misuse of AI,” she said. “And then if that’s the case, how do you want to address that? Should you ensure that your client has the right framework etc, to use AI? Or do you want to reduce the risk of this particular topic or potentially exclude the risk? I think that's something the insurers have to think about quite quickly. And I know some are already thinking about it quite carefully.”

Getting to grips with the misuse of AI in insurance

Getting to grips with the misuse of AI in insurance

insurancebusinessmag.com

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