“You’ve got this bifurcation of AI, the governed generative and the autonomous pieces,” he says. “It’s no longer, ‘Are you using AI?’ It’s asking, ‘Are you using governed AI? How are you governing it? How are you keeping it safe and secure?’”
Carriers have been trying to determine whether covering AI workloads can be profitable for them, Karecki adds. Governed AI tools operating in a bounded decision-making process will be more insurable, while experimental AI systems with no monitoring and no easy rollback will be difficult to cover, he notes.
“There’s a repositioning versus a pullback, and that’s very common to the industry, and they will at times open up coverage just to see if it’s this type of insurance that will sell,” he says. “They will assess the results and what needs to change so they can decide whether to re-enter this marketplace or abandon it completely.”
