Who Insures AI: Understanding the Roles of the Private Insurance Industry and How They Can Shape AI Governance

Tina M. Park, Miranda Bogen

Keywords: Insurance, Governance, Qualitative

Abstract: For insurance to serve as an alternative governance mechanism to not only manage risks, but encourage preventive, risk mitigation efforts and support broader adoption of novel technologies, coverage policies must be designed to address the known risks, without encouraging irresponsible behavior due to the presence of a safety net. Yet, many who have gestured at the importance of insurance in advancing AI governance do not necessarily have a clear or complete understanding of how insurers may make key determinations about insurability, risk factors, or estimations of financial compensations for AI-related harms. Understanding how insurance companies approach novel markets, like the AI industry, to determine who and what can be insured, to what extent something is or is not insured, and what risk mitigation efforts are required to secure and retain coverage will undeniably shape the field of AI. This paper lays out the different actors within the private insurance industry and briefly examines how they may influence AI development and use. The paper closes with a preview of upcoming research to further explore the relationship between the private insurance industry and AI development and adoption.

Submission Number: 20