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Prudential Reliability of Large Language Models in Reinsurance: Governance, Assurance, and Capital Efficiency

arXiv.org Artificial Intelligence

This paper develops a prudential framework for assessing the reliability of large language models (LLMs) in reinsurance. A five-pillar architecture--governance, data lineage, assurance, resilience, and regulatory alignment--translates supervisory expectations from Solvency II, SR 11-7, and guidance from EIOPA (2025), NAIC (2023), and IAIS (2024) into measurable lifecycle controls. The framework is implemented through the Reinsurance AI Reliability and Assurance Benchmark (RAIRAB), which evaluates whether governance-embedded LLMs meet prudential standards for grounding, transparency, and accountability. Across six task families, retrieval-grounded configurations achieved higher grounding accuracy (0.90), reduced hallucination and interpretive drift by roughly 40%, and nearly doubled transparency. These mechanisms lower informational frictions in risk transfer and capital allocation, showing that existing prudential doctrines already accommodate reliable AI when governance is explicit, data are traceable, and assurance is verifiable.


PrAda-GAN: A Private Adaptive Generative Adversarial Network with Bayes Network Structure

arXiv.org Machine Learning

We revisit the problem of generating synthetic data under differential privacy. To address the core limitations of marginal-based methods, we propose the Private Adaptive Generative Adversarial Network with Bayes Network Structure (PrAda-GAN), which integrates the strengths of both GAN-based and marginal-based approaches. Our method adopts a sequential generator architecture to capture complex dependencies among variables, while adaptively regularizing the learned structure to promote sparsity in the underlying Bayes network. Theoretically, we establish diminishing bounds on the parameter distance, variable selection error, and Wasserstein distance. Our analysis shows that leveraging dependency sparsity leads to significant improvements in convergence rates. Empirically, experiments on both synthetic and real-world datasets demonstrate that PrAda-GAN outperforms existing tabular data synthesis methods in terms of the privacy-utility trade-off.


LLM Output Drift: Cross-Provider Validation & Mitigation for Financial Workflows

arXiv.org Machine Learning

Financial institutions deploy Large Language Models (LLMs) for reconciliations, regulatory reporting, and client communications, but nondeterministic outputs (output drift) undermine auditability and trust. We quantify drift across five model architectures (7B-120B parameters) on regulated financial tasks, revealing a stark inverse relationship: smaller models (Granite-3-8B, Qwen2.5-7B) achieve 100% output consistency at T=0.0, while GPT-OSS-120B exhibits only 12.5% consistency (95% CI: 3.5-36.0%) regardless of configuration (p<0.0001, Fisher's exact test). This finding challenges conventional assumptions that larger models are universally superior for production deployment. Our contributions include: (i) a finance-calibrated deterministic test harness combining greedy decoding (T=0.0), fixed seeds, and SEC 10-K structure-aware retrieval ordering; (ii) task-specific invariant checking for RAG, JSON, and SQL outputs using finance-calibrated materiality thresholds (plus or minus 5%) and SEC citation validation; (iii) a three-tier model classification system enabling risk-appropriate deployment decisions; and (iv) an audit-ready attestation system with dual-provider validation. We evaluated five models (Qwen2.5-7B via Ollama, Granite-3-8B via IBM watsonx.ai, Llama-3.3-70B, Mistral-Medium-2505, and GPT-OSS-120B) across three regulated financial tasks. Across 480 runs (n=16 per condition), structured tasks (SQL) remain stable even at T=0.2, while RAG tasks show drift (25-75%), revealing task-dependent sensitivity. Cross-provider validation confirms deterministic behavior transfers between local and cloud deployments. We map our framework to Financial Stability Board (FSB), Bank for International Settlements (BIS), and Commodity Futures Trading Commission (CFTC) requirements, demonstrating practical pathways for compliance-ready AI deployments.


Encoder Fine-tuning with Stochastic Sampling Outperforms Open-weight GPT in Astronomy Knowledge Extraction

arXiv.org Artificial Intelligence

Scientific literature in astronomy is rapidly expanding, making it increasingly important to automate the extraction of key entities and contextual information from research papers. In this paper, we present an encoder-based system for extracting knowledge from astronomy articles. Our objective is to develop models capable of classifying telescope references, detecting auxiliary semantic attributes, and recognizing instrument mentions from textual content. To this end, we implement a multi-task transformer-based system built upon the SciBERT model and fine-tuned for astronomy corpora classification. To carry out the fine-tuning, we stochastically sample segments from the training data and use majority voting over the test segments at inference time. Our system, despite its simplicity and low-cost implementation, significantly outperforms the open-weight GPT baseline.


Proof Minimization in Neural Network Verification

arXiv.org Artificial Intelligence

The widespread adoption of deep neural networks (DNNs) requires efficient techniques for verifying their safety. DNN verifiers are complex tools, which might contain bugs that could compromise their soundness and undermine the reliability of the verification process. This concern can be mitigated using proofs: artifacts that are checkable by an external and reliable proof checker, and which attest to the correctness of the verification process. However, such proofs tend to be extremely large, limiting their use in many scenarios. In this work, we address this problem by minimizing proofs of unsatisfiability produced by DNN verifiers. We present algorithms that remove facts which were learned during the verification process, but which are unnecessary for the proof itself. Conceptually, our method analyzes the dependencies among facts used to deduce UNSAT, and removes facts that did not contribute. We then further minimize the proof by eliminating remaining unnecessary dependencies, using two alternative procedures. We implemented our algorithms on top of a proof producing DNN verifier, and evaluated them across several benchmarks. Our results show that our best-performing algorithm reduces proof size by 37%-82% and proof checking time by 30%-88%, while introducing a runtime overhead of 7%-20% to the verification process itself.


Generalizable Holographic Reconstruction via Amplitude-Only Diffusion Priors

arXiv.org Artificial Intelligence

Phase retrieval in inline holography is a fundamental yet ill-posed inverse problem due to the nonlinear coupling between amplitude and phase in coherent imaging. We present a novel off-the-shelf solution that leverages a diffusion model trained solely on object amplitude to recover both amplitude and phase from diffraction intensities. Using a predictor-corrector sampling framework with separate likelihood gradients for amplitude and phase, our method enables complex field reconstruction without requiring ground-truth phase data for training. We validate the proposed approach through extensive simulations and experiments, demonstrating robust generalization across diverse object shapes, imaging system configurations, and modalities, including lensless setups. Notably, a diffusion prior trained on simple amplitude data (e.g., polystyrene beads) successfully reconstructs complex biological tissue structures, highlighting the method's adaptability. This framework provides a cost-effective, generalizable solution for nonlinear inverse problems in computational imaging, and establishes a foundation for broader coherent imaging applications beyond holography.


Privacy-Preserving Personalization in Education: A Federated Recommender System for Student Performance Prediction

arXiv.org Artificial Intelligence

The increasing digitalization of education presents unprecedented opportunities for data-driven personalization, but it also introduces significant challenges to student data privacy. Conventional recommender systems rely on centralized data, a paradigm often incompatible with modern data protection regulations. A novel privacy-preserving recommender system is proposed and evaluated to address this critical issue using Federated Learning (FL). The approach utilizes a Deep Neural Network (DNN) with rich, engineered features from the large-scale ASSISTments educational dataset. A rigorous comparative analysis of federated aggregation strategies was conducted, identifying FedProx as a significantly more stable and effective method for handling heterogeneous student data than the standard FedAvg baseline. The optimized federated model achieves a high-performance F1-Score of 76.28%, corresponding to 92% of the performance of a powerful, centralized XGBoost model. These findings validate that a federated approach can provide highly effective content recommendations without centralizing sensitive student data. Consequently, our work presents a viable and robust solution to the personalization-privacy dilemma in modern educational platforms.


Decoding Latent Attack Surfaces in LLMs: Prompt Injection via HTML in Web Summarization

arXiv.org Artificial Intelligence

Large Language Models (LLMs) are increasingly integrated into web-based systems for content summarization, yet their susceptibility to prompt injection attacks remains a pressing concern. In this study, we explore how non-visible HTML elements such as , aria-label, and alt attributes can be exploited to embed adversarial instructions without altering the visible content of a webpage. We introduce a novel dataset comprising 280 static web pages, evenly divided between clean and adversarial injected versions, crafted using diverse HTML-based strategies. These pages are processed through a browser automation pipeline to extract both raw HTML and rendered text, closely mimicking real-world LLM deployment scenarios. We evaluate two state-of-the-art open-source models, Llama 4 Scout (Meta) and Gemma 9B IT (Google), on their ability to summarize this content. Using both lexical (ROUGE-L) and semantic (SBERT cosine similarity) metrics, along with manual annotations, we assess the impact of these covert injections. Our findings reveal that over 29% of injected samples led to noticeable changes in the Llama 4 Scout summaries, while Gemma 9B IT showed a lower, yet non-trivial, success rate of 15%. These results highlight a critical and largely overlooked vulnerability in LLM driven web pipelines, where hidden adversarial content can subtly manipulate model outputs. Our work offers a reproducible framework and benchmark for evaluating HTML-based prompt injection and underscores the urgent need for robust mitigation strategies in LLM applications involving web content.


HyPINO: Multi-Physics Neural Operators via HyperPINNs and the Method of Manufactured Solutions

arXiv.org Artificial Intelligence

We present HyPINO, a multi-physics neural operator designed for zero-shot generalization across a broad class of PDEs without requiring task-specific fine-tuning. Our approach combines a Swin Transformer-based hypernetwork with mixed supervision: (i) labeled data from analytical solutions generated via the Method of Manufactured Solutions (MMS), and (ii) unlabeled samples optimized using physics-informed objectives. The model maps PDE parameterizations to target Physics-Informed Neural Networks (PINNs) and can handle linear elliptic, hyperbolic, and parabolic equations in two dimensions with varying source terms, geometries, and mixed Dirichlet/Neumann boundary conditions, including interior boundaries. HyPINO achieves strong zero-shot accuracy on seven benchmark problems from PINN literature, outperforming U-Nets, Poseidon, and Physics-Informed Neural Operators (PINO). Further, we introduce an iterative refinement procedure that treats the residual of the generated PINN as "delta PDE" and performs another forward pass to generate a corrective PINN. Summing their contributions and repeating this process forms an ensemble whose combined solution progressively reduces the error on six benchmarks and achieves a >100x lower $L_2$ loss in the best case, while retaining forward-only inference. Additionally, we evaluate the fine-tuning behavior of PINNs initialized by HyPINO and show that they converge faster and to lower final error than both randomly initialized and Reptile-meta-learned PINNs on five benchmarks, performing on par on the remaining two. Our results highlight the potential of this scalable approach as a foundation for extending neural operators toward solving increasingly complex, nonlinear, and high-dimensional PDE problems. The code and model weights are publicly available at https://github.com/rbischof/hypino.


Few-Shot Connectivity-Aware Text Line Segmentation in Historical Documents

arXiv.org Artificial Intelligence

A foundational task for the digital analysis of documents is text line segmentation. However, automating this process with deep learning models is challenging because it requires large, annotated datasets that are often unavailable for historical documents. Additionally, the annotation process is a labor- and cost-intensive task that requires expert knowledge, which makes few-shot learning a promising direction for reducing data requirements. In this work, we demonstrate that small and simple architectures, coupled with a topology-aware loss function, are more accurate and data-efficient than more complex alternatives. We pair a lightweight UNet++ with a connectivity-aware loss, initially developed for neuron morphology, which explicitly penalizes structural errors like line fragmentation and unintended line merges. To increase our limited data, we train on small patches extracted from a mere three annotated pages per manuscript. Our methodology significantly improves upon the current state-of-the-art on the U-DIADS-TL dataset, with a 200% increase in Recognition Accuracy and a 75% increase in Line Intersection over Union. Our method also achieves an F-Measure score on par with or even exceeding that of the competition winner of the DIVA-HisDB baseline detection task, all while requiring only three annotated pages, exemplifying the efficacy of our approach. Our implementation is publicly available at: https://github.com/RafaelSterzinger/acpr_few_shot_hist.