AnthonyA good review of reasons insurance companies are pulling back from insuring companies that lean on generative AI. Point 4, "The main problem is not just the error, but the incentive not to see it" is especially damning: use of AI not only obscures audit trails, it sets up perverse incentives against accountability, pushing costs and risk to other parts of an organization, its customers, or society. The net result is that whatever "local" advantages AI may provide turn into downstream risk that cannot be easily accounted for. Insurance companies are (rightly) allergic to this state of affairs.
Another example of how (whole)-systems thinking is very helpful for parsing the effects of technology changes like this.
https://freakonometrics.hypotheses.org/89367
#AI #GenAI #GenerativeAI #LLMs #AgenticAI #GPT #ChatGPT #Claude #Gemini #ActuarialScience #insurance
Another example of how (whole)-systems thinking is very helpful for parsing the effects of technology changes like this.
https://freakonometrics.hypotheses.org/89367
#AI #GenAI #GenerativeAI #LLMs #AgenticAI #GPT #ChatGPT #Claude #Gemini #ActuarialScience #insurance
If No One Pays for Proof, Everyone Will Pay for the Loss
This post was initially written in French, Si personne ne paie pour la preuve, tout le monde paiera pour le sinistre Let’s start with a truism. In ordinary life, just as in economic life, we have to make decisions without ever knowing everything. Every decision involves some uncertainty, and therefore some risk. Some risks are … Continue reading If No One Pays for Proof, Everyone Will Pay for the Loss →
Federica Gazzelloni
Adam Coffman
Anomalous Human
Victoria Stuart 🇨🇦 🏳️⚧️
ZPONZ
datum (n=1)
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Planetary Ecologist
SFU Science
