This Week in RiskTech News: April 3rd
April 3, 2023
RiskTech News is your go-to source for everything you need to know about the latest issues impacting risk managers. From cutting-edge research unveiling new insights on risk management strategies to real-world effects of major cyber security breaches, we’ll cover it all. We pride ourselves on delivering comprehensive coverage of the latest developments in the field, ensuring that readers stay abreast of critical updates anytime, anywhere. With high stakes and technology rapidly changing the game, reading RiskTech News has become increasingly essential for staying ahead on risk tech. So join us today as we navigate through this ever-evolving landscape of risk management!
Business Insurance: AI complements risk management
- Technological progress is often subtle but can have wide-reaching implications.
- Cellphones and pocket calculators are more obvious examples of recent technological advances.
- The internet opened up accessibility to wider audiences, leading to rapid development in numerous industries.
- Artificial intelligence (AI), though not new, has become more accessible with the launch of the large language model by OpenAI.
- AI has the potential to reshape tasks and jobs in the insurance industry, such as generating creative ideas and streamlining complex processes.
- Potential downsides include increased liability if AI is employed without appropriate controls.
- Honda is recalling 330,318 vehicles because heating pads behind both side-view mirrors may not be bonded properly, which could lead to the mirror glass falling out.
- Chrysler is recalling 57,885 Jeep vehicles due to an “unnecessary and unused frame stud” on the vehicles that could pierce the fuel tank and lead to a fire.
- Volkswagen is recalling 5,224 Audi electric vehicles due to air bags that could tear during a crash and leave occupants more vulnerable to injury.
Insurance Business: From loss coverage to prevention – the ‘Great Recalculation’
- Insurance has increasingly become a tool for prevention rather than simply providing protection against unexpected losses.
- Emerging risks such as pandemics, climate change, and more frequent weather events have caused businesses to recalculate their approach toward risk management.
- Zurich Resilience Solutions (ZRS) was created two years ago to provide a wider range of risk management solutions in addition to traditional insurance services.
- These services are not limited to just Zurich customers and can include cyber security, supply chain management, and climate change prevention.
- The Risk Advisor app provides users with an easy-to-use application that mimics the methods of Zurich risk engineers.
- AI and data analytics is being used to help identify uninsurable financial risks and business operational efficiencies.
Insurance Business: Four things insurers and brokers must know about ChatGPT
- Insurance professionals must stress best practices and ask clients how they plan to safely incorporate AI chatbot technologies.
- Cyber attackers have started utilizing the technology, creating a pool of inexperienced hackers, potentially leading to more cyber-attacks.
- Companies should assess data hygiene and bias risks and manage access to generative AI, while being aware of external regulators and adjusting policies accordingly.
- Cyber insurance products are changing, with some sub-limits/coinsurance imposed for certain losses while other carriers adjust policy language to exclude coverage for litigation/investigations/fines.