AI Insurance Takes a Step Toward Becoming a Market - Carrier Management

Back when Munich Re launched the industry's first insurance coverage for artificial intelligence (AI) at the end of 2018, the policy, aiSure, found few takers. In subsequent years, as more companies digitally transformed their business and AI models and machine learning tools went mainstream, business picked up, prompting Munich Re last year to form a dedicated AI insurance team to scale aiSure and develop additional AI insurance policies. Online bonus: Munich Re provides a real-life example of an actual AI risk insured with the aiSure offering. Chief among the reasons is that Munich Re's estimable reputation and clout is sure to inspire other insurers and reinsurers to develop innovative AI-based products, culminating in a new insurance market. Given the rapidly growing use of AI software by companies on a function-by-function basis, viable risk transfer solutions absorbing the risks of AI-generated errors are sorely needed.