AI’s Shift in INSURANCE: New Risks and Solutions

I like to share some key learnings from new AI-related reports which could be helpful.

A Swiss Re report highlights how AI is transforming the insurance industry’s risk landscape. The rapid adoption of AI introduces new risks while simultaneously offering innovative solutions to manage these risks effectively.

💡 Key Points:

➡ Evolving Risk Landscape: AI introduces algorithmic and performance risks, making traditional risk models outdated.

➡ Sectoral Impact: Health and pharmaceuticals, IT services, and energy and utilities are expected to see a significant rise in AI-related risks.

➡ Emerging Insurance Solutions: New products covering AI algorithm and performance risks are being developed, offering substantial potential.

➡ Data Bias and Privacy: Risks such as bias, discrimination, and data privacy are particularly prominent in sectors handling sensitive personal data.

➡ Silent AI Risks: Insurers must be vigilant about unseen accumulation risks within portfolios, which could exacerbate losses.

Selected exhibits: