Insurance is the business of rational, quantifiable risk prediction. There is no margin for nonsense, or they go bust. Hence, when they get worried, you listen.
Notice how worried they are about climate-related damages, too.
And LMs are throttling medical advice.
Ha!
When your “cost-saving” affects another bigwig’s bottom-line.Is it affect or effect? God English sucks.
A thing causes effects. Something (or someone) is affected.
Easyish way to remember the first is just think of “cause and effect”.
To remember the second, picture someone screaming “AAAAAAAAAAAA!!!” which is like the ‘a’ in affect.
Not quite.
Things too can be affected, for example “OpenAI’s stock price was affected by news of yet another data breach”.
I think its easier to distinguish “effect” from “affect” by remember that “effect” is a noun - so a something - whilst “affect” is a verb - so an action on something.
Lol thanks. Now my brain is imagining screaming people and I’ll never forget it again 😂
I just remember affect is a verb, effect is a noun.
How can something that has never made money be insured?
Insurance is about covering the risks of the unexpected.
So a company losing money can be insured but the insurance will only cover the costs of unexpected events (say, the business premises burning) rather than the normal business (which in this example actually loses money).
My understanding is that Insurance doesn’t want to cover things done via AI because AI makes lots of mistakes and has a much higher probability of making massive mistakes (the kind of mistakes that can kill people or destroy companies) which even untrained humans will not do - AI will advise a suicidal person to kill themselves or somebody wanting to do pizza to put glue on top, whilst even the most untrained person will not: it’s a bad idea to have an untrained person give psychological advice but it’s an even worse idea to have an AI do it.
In other words AI in the loop increases the probability of exceptionally bad unusual situations happening, so the Insurer doesn’t want to insure companies which use it because that Insurer would have far more and far bigger claims from such a client.This is the same as an insurer refusing to insure companies that use untrained personnel to do really high risk things or which place themselves in high risk situations just to save a buck (for example, storing highly flammable materials in an area with lots of sparks or fire use).
It’s pretty standard for an insurer to refuse to provide insurance to operations which are taking huge unnecessary risks to save money and AI use definitely is a huge unnecessary risk in lots of situations (for example, lawyers using AI risk being disbarred if constantly in submissions to judges the AI references non-existing case law which it invented, same thing it would happen if they themselves constantly did something like that).
Because insurance companies operate by taking premiums in and not paying out claims. They’ll cover basically anything as long as statistically they think they won’t have to pay.
Buying insurance is betting something bad will happen. Selling insurance is betting that it won’t.
Except when the bad thing does happen you get $5 after paying in $300 monthly
It is about insurance companies take to protect themself against cybercrime. The insurance companies do not want to cover the use of AI, as it is too risky to them.
Well I’m insured
Statistically, you have enough income to pay your bills. If you haven’t got anything your government (or other organization) will pay your premium on your behalf.
