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Insurance verified Verified Outcome TRL 9

AI Performance Guarantee Insurance

domain Client: AI Fraud Detection Vendor handshake Provider: Munich Re schedule Deploy: 2019-Present
94 Impact
Enterprise Ready
Evidence Score: 5/10
Strength: High

Executive Summary

ANALYST: COI RESEARCH

Implementation of a novel 'performance warranty' insurance product (aiSure) that indemnifies the users of an AI algorithm if the AI fails to perform as promised (e.g., missed fraud).

rate_review Analyst Verdict

"A category-defining innovation. By insuring the 'black box' of AI, this solution bridges the trust gap for enterprise adoption of startups. It creates a new asset class: algorithmic reliability."

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Full Audit Report Available Includes Risk Register, Technical Specs & Compliance Data.

warning The Challenge

Enterprise buyers were hesitant to adopt AI solutions from startups due to lack of trust in the algorithm's reliability. If the fraud detection AI missed a fraudulent transaction, the bank (buyer) bore the loss. This 'performance risk' was a major barrier to sales for AI vendors, who lacked the balance sheet to offer meaningful guarantees themselves.

psychology The Solution

The reinsurer developed 'aiSure', an insurance wrapper that backs the vendor's performance verified by the reinsurer's own audit of the algorithm. If the AI underperforms (e.g., fraud rate exceeds X%), the insurance policy automatically compensates the vendor, who then passes the restitution to their client. This effectively outsources the technical risk of model drift.

settings_suggest Technical & Deployment Specs

Integrations
API to Model Performance
Deployment Model
Financial Product
Data Classification
Performance Metrics
Estimated TCO / ROI
Premium based on revenue
POC Summary ( to )

"N/A - Commercial Product"

shield Risk Register & Mitigation

Risk Factor Severity Mitigation Strategy
Adverse Selection High Deep technical audit of model before binding.
Correlation Risk Medium Caps on aggregate exposure.

trending_up Impact Trajectory

Audited value realization curve

Significant increase in enterprise conversion rates Verified Outcome
Primary KPICreation of verifiable 'AI quality' standard
Audit CycleProtection against model drift liabilities

policy Compliance & Gov

  • Standards: Solvency II
  • Maturity (TRL): 9
  • Evidence Score: 5/10
  • Data Class: Performance Metrics

folder_shared Verified Assets

description
Verified Case Study
PDF • Version 1
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Technical Audit
PDF • Audited
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The "Blind Verification" Protocol

How we verified these outcomes for AI Fraud Detection Vendor without exposing sensitive IP or identities.

Private
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1. Raw Evidence

Audit ID: #PRIV-551
Evidence: Direct SQL Logs
Public
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2. Verified Asset

Outcome: Verified
Ref ID: #COI-551

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