Managing general agent Parametrix, has expanded its capabilities to include real-time monitoring of the availability of Artificial Intelligence (AI) services to enable holistic business interruption insurance for the digital supply chain.
Thanks to its expanded capabilities, Parametrix can now monitor AI platforms such as OpenAI’s ChatGPT, Google Gemini, Claud, and others, extending the company’s core cloud monitoring, modelling, and insurance services to this new digital infrastructure.
According to the announcement, the Lloyd’s coverholder is now compiling an event database which describes the reliability of the most important AI service platforms.
In 2023, for example, Parametrix detected and monitored more than 50 interruption events which affected ChatGPT. Their average duration of 2.5 hours highlights the critical need for comprehensive monitoring and risk-transfer solutions, since the failure of third-party AI services delivered through the digital supply chain often causes tangible business losses.
Insurers and brokers can now benefit from Parametrix’s AI monitoring capabilities, which provide the tools necessary to manage and mitigate the risks associated with AI service disruptions.
The initiative will enable Parametrix clients to develop more accurate and dynamic risk models, ultimately leading to more resilient and responsive insurance products, the company 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,” says Parametrix CEO Jonathan Hatzor. “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.”
Hatzor continued: “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.”
