Insurance companies are trying to avoid big payouts by making AI safer

A centuries-old industry that once made cars and buildings safer hopes it can do the same for artificial intelligence

A centuries-old industry that once made cars and buildings safer hopes it can do the same for artificial intelligence.

A handful of insurance companies, including startups and at least one major insurance company, are starting to offer specialized coverage for the failures of AI agents, the autonomous systems increasingly taking over tasks once handled by customer support representatives, job recruiters, travel agents and the like.

As insurers chase a lucrative new market, some are betting that they could bring a measure of regulation and standardization to a technology that is still in its early days but is seen by many in the business world as the natural next step.

“When we think about car insurance, for example, the broad adoption of the safety belt was really something which was driven by the demands of insurance,” said Michael von Gablenz, who heads the AI insurance division of Munich Re, a multinational insurance company. “When we’re looking at past technologies and their journey, insurance has played a major role in that, and I believe insurance can play the same role for AI.”

The failures of generative AI have made bizarre headlines, inspired courtroom battles and devastated families who say the technology harmed their loved ones. But as AI tools become more common across businesses and personal devices, users are caught between trusting companies to self-regulate and waiting for comprehensive government oversight.