Flutterby™! : AI & Insurance coverage

I ran across links to this article, Financial Times: Insurers retreat from AI cover as risk of multibillion-dollar claims mounts, about AIG, Great American, and WR Berkley backing away from AI coverage, but it's paywalled, so I went searching for the headline, and it's interesting how this current media push is being spun, with a week before that stories about startup insurers stepping in to cover risks that the major companies don't want to touch: Insurance companies are trying to avoid big payouts by making AI safer

“We’re in an era now where the losses are really here and happening; that’s one thing. The second thing is that insurers are now actually starting to exclude AI from their existing policies,” Dattani said. “So it feels pretty certain that we’re going to need some solution here, and we need people with skin in the game who can provide third- party oversight. That’s where we see the role of insurance.”

Ernst & Young: How can responsible AI bridge the gap between investment and impact?

Almost every company in our survey (99%) reported financial losses from AI- related risks, and 64% experienced losses exceeding US$1 million. On average, the financial loss to companies that have experienced risks is conservatively estimated at US$4.4 million.1 That’s an estimated total loss of US$4.3 billion across the 975 respondents in our sample.

And now traditional insurers stepping back: Major Insurers Want Out of AI Coverage as 'Black Box' Risk Grows:

The industry has good reason to be spooked. Google's AI Overview falsely accused a solar company of legal troubles earlier this year, triggering a $110 million lawsuit. Air Canada got stuck honoring a discount its chatbot completely invented after a customer took the airline to small claims court. Most dramatically, fraudsters used a digitally cloned executive to steal $25 million from London engineering firm Arup during what appeared to be a legitimate video conference.