The Financial Times said AIG, Great American and WR Berkley are proposing that the regulatory agency allow the exclusion of AI-related debts from corporate insurance contracts. An insurance company describes the outputs of AI models as too unpredictable and like a black box.
These concerns stem from recent incidents. Google's AI Overview system once provided false information about a solar power company and led to a $110 million lawsuit. Air Canada's Chatbot previously created fake information and forced the airline to take un policy discounts.
The most worrying thing for the insurance industry is not a large compensation. They fear that the system will be affected when a popular AI model creates a series of errors and leads to thousands of compensation requests at the same time.
An every leader said that the insurance industry can handle a $400 million loss to a business but cannot withstand it when multiple losses arise simultaneously due to an AI incident.
