Risk

With AI creating hidden risks that insurers must account for, some insurers leave these up to existing policies, others explicitly affirm they will cover AI risks, and a third set is excluding them.

Clear policies, training, supervision and reporting routes are essential as smart glasses become more common.

Real improvement in managing uncertainty from a risk perspective won't come from better technology alone.

American Growth Insurance expects its in-house AI brokerage platform to improve risk transfer protocols, open cross-selling opportunities and increase its client base.

For investors, "both perils translate into operational risk, earnings volatility and stranded-asset exposure," said Mohsen Rahnama, managing director and head of catastrophe modeling and insurance solutions at Moody's, in a report.

"Record heat underscores Europe's chronic heat risk," the authors of the Swiss Re Institute report said on Tuesday.

Insurers, reinsurers and brokers are already predicting increased premiums and bigger losses tied to natural catastrophes.

The carrier has achieved 90% time savings by deploying a single AI tool.

Organizations that prepare early will be better positioned to protect their people and minimize operational disruption when severe weather strikes.

AI is a limited resource, powered by even more limited resources. Carriers must not forget that, writes Jim Girard, vice president of engineering at Benekiva.

The insurers that build for execution, rather than waiting for the next tool or the next shock, will be the ones still keeping pace when the systems around them strain.

A dangerous assumption persists that existing commercial insurance portfolios will naturally absorb any liabilities arising from algorithmic failures.

Lincoln National Corp. is in advanced talks with Talcott Financial Group for a reinsurance deal that would shift billions of dollars of life insurance reserves off its balance sheet, according to people familiar with the deliberations.

AI is helping insurers navigate climate changes by taking nuances into consideration and making sense of updated weather data.

New Zealand's flood-prone homes are outperforming the rest of the country's housing market

Insurers will start relying on more advanced approaches to evaluating cyber risk, including continuous cyber risk monitoring.

The findings come as climate and weather risk is increasingly becoming part of the affordability equation for many homeowners, particularly as insurance and maintenance costs rise in vulnerable regions.

Life insurers have offloaded long-term policyholder liabilities into offshore reinsurance and captive subsidiaries, raising concerns over state oversight of opaque investment vehicles and whether insurers have adequately funded claims.