Reinsurance’s important role in mitigating AI risks in the health sector: Swiss Re

In response to a recent report by the Swiss Re Institute revealing the healthcare sector’s increased vulnerability to AI-related risks, Pravina Ladva, group director for digital and technology at Swiss Re, highlights the key role of reinsurance in mitigating these risks and supporting the digital trust necessary to maximize benefits of new technologies.

Analysis indicates that the health and pharmaceutical sectors will see the most significant impact from artificial intelligence (AI) over the next decade.

As AI technology becomes increasingly integrated into various functions of the healthcare industry, including administration, patient monitoring, diagnosis and drug development, its risks also increase, with potentially serious or fatal consequences.

Christoph Nabholz, Director of Research and Sustainability at Swiss Re, emphasizes: “Although as a pioneer in this field, IT services are currently most exposed to AI-related risks, this will change as the technology becomes more widespread across all industries, such as like health and mobility.

He continues: “As a result, insurance companies are starting to introduce special protection in the event of artificial intelligence failure – one of the greatest threats to all industries.”

Ladva says: “The benefits of AI are significant for a wide range of industries, but there are also risks that can lead to potential security vulnerabilities.”

“Given its role as a shock absorber, the reinsurance industry has an important role to play in addressing AI risks and helping build the digital trust needed to realize the full potential of emerging technologies,” Ladva concludes.