Parametrix, a Lloyd’s coverholder, has broadened its capabilities to encompass the real-time monitoring of the availability of Artificial Intelligence (AI) services.
This advancement allows for the monitoring of platforms like OpenAI’s ChatGPT, Google Gemini, Claud, and others, thus expanding the company’s essential cloud monitoring, modelling, and insurance services to this significant new digital infrastructure.
With this development, Parametrix can now equip insurers and brokers with the essential tools to handle and reduce the risks linked to AI service interruptions.
The capability empowers insurers and brokers to develop parametric Non-Damage Business Interruption products, addressing the critical coverage gap arising from technological advancements in AI.
This initiative will enable Parametrix clients to create more precise and adaptable risk models, culminating in insurance products that are more resilient and responsive.
Parametrix CEO Jonathan Hatzor, stated, “We have developed this powerful tool in response to calls from the insurance industry to help them cope with clients’ emerging digital risk concerns. By stepping into the realm of AI service monitoring, we enable another critical business-risk coverage gap arising from the technology era to be closed.”
“Companies from multiple sectors are increasingly reliant on third-party AI platforms to power services like chatbots, or to automate processes, tasks, and workflows. Productivity may stop when AI delivery fails, and can be enormously costly when the outage is sustained. This new monitoring capability allows insurers or brokers to create, for example, a parametric Non-Damage Business Interruption product to cover AI outage risk,” he continued.
Copyright © 2024 InsurTech Analyst
