As a greater number of tech companies develop their own in-house artificial intelligence (AI) solutions to gain a competitive edge, this has created an opportunity for insurers. Munich Re and other (re)insurers are now targeting businesses that use independently developed AI solutions with new insurance products that protect them from financial losses. This trend comes as a result of increased AI development in recent years.
The insurance industry has seen an increase in patent filings in recent years according to GlobalData’s Patent Analytics database, which indicates growing interest in innovation and technology within the sector. It is not just tech firms that are incorporating AI into their operations; insurers throughout the industry have also been employing AI to support their claims, customer service, and underwriting capabilities. One example is Zurich, which is testing how it can use ChatGPT in areas such as claims and modeling. Given that AI is becoming a major part of operations across multiple industries, the introduction of insurance products targeting the AI space comes at the right time. It is expected that insurers will continue to develop in this space to cater to the ever-growing number of potential clients.
Munich Re’s aiSelf – which is specifically designed for businesses that have created their own in-house AI solutions – is a prime example of this trend. Munich Re launched the product in April 2023, offering protection from financial loss due to errors and omissions resulting from the use of these AI solutions. As more businesses attempt to implement their own AI solutions and as the risks related to AI become more widely known, this type of cover will be increasingly essential.
The introduction of aiSelf shows that the insurance sector is aware of the need to provide support for businesses looking to use advanced AI and technology. Insurance companies are working to adopt and invent new products for these technologies while also attempting to patent investments in their own AI solutions. This is likely to continue as the risks become more understood and as all industries place greater emphasis on innovation using AI.