AI Insurance. Yeah, That's a Thing Now
Ah, the AI arena—a landscape of limitless possibilities and perilous pitfalls, a veritable Wild West of the digital age. Now, what's keeping our tech-savvy sheriffs and corporate cowboys awake at night? The looming dread of AI projects going belly-up, my friends. But fear not, for where there's risk, there's insurance. Yes, the same industry that swooped in like a knight in shining armor during the cybersecurity crises of yesteryears is now saddling up for a new frontier: AI insurance.
You see, the boardroom bigwigs and C-suite celebs are all aflutter with questions.
Who's at risk? How do we bankroll an AI debacle? Can someone else shoulder some of this burden? Ah, the eternal quest for a safety net in a world of zeros and ones.
Now, don't get me wrong; we're still in the opening act of this drama. But the audience is ravenous for a piece of the AI insurance pie. Major insurers are already cooking up policies that cover the financial fiascos caused by AI and its fledgling sibling, generative AI. Existing policies might soon get a facelift to include this new kid on the block.
The risks? Oh, they're as varied as a Vegas buffet—from cybersecurity snafus to copyright calamities, from biased blunders to data debacles. Enter Munich Re and Armilla Assurance, the insurance impresarios offering financial cushions for your AI adventures. And let's not forget the tech titans like Microsoft, IBM, and Adobe, offering their own brand of risk management.
But hold your horses; it's not all smooth sailing. The insurance industry is still fumbling in the dark, trying to assess risks without a historical roadmap. Generative AI is evolving faster than a chameleon on a rainbow, making risk assessment a moving target.
So, will AI insurance follow the turbulent trajectory of its cyber counterpart, with skyrocketing premiums and narrowing coverage? Will insurance companies write policies that are designed specifically to allow denials of coverage when a claim is presented? Of course they will! Remember, these are the same slithering scumbags who tried to deny DLA Piper’s cyber-coverage by claiming the ransomware they got hit with was “An act of war”. Seriously. They did that. When was the last time you saw war declared on a law firm? That’s who we’re dealing with. But one thing's for sure: the AI insurance game is afoot! (apologies to A. Conan Doyle) and it’s a gamble that both insurers and insureds are inevitably going to have to take. And just as in Vegas, the house always wins.