Latest news with #Lloyd'sofLondon
Scoop
7 days ago
- Business
- Scoop
Infrastructure NZ Backs NPS To Strengthen Infrastructure Decision-Making
Councils have finally been given the message that they need to prioritise infrastructure in all their planning and decision-making, says Infrastructure New Zealand Chief Executive Nick Leggett. Infrastructure New Zealand is welcoming the release of consultation on the first National Policy Statement (NPS) for Infrastructure and the strengthening of guidance for local government as to how they can better integrate infrastructure into consenting and planning processes. 'A NPS for Infrastructure will support more coordinated decision-making across our different levels of government and help ensure that infrastructure development is more effectively considered in council planning,' Leggett says. 'It will provide essential direction for integrating infrastructure considerations into land use planning and environmental management, which is critical to making sure that development at a local level aligns with our objectives as a country.' 'This provides a level of nationwide consistency for those looking to invest and help develop our future nation-building infrastructure. It will then be up to central and local government to work together to implement these new national rules which support priorities that include delivering our growing infrastructure pipeline and the much-anticipated regional deals.' Infrastructure New Zealand particularly welcomes the changes, which will make consenting for new or expanding existing quarries easier and faster. 'Quarried aggregates are essential components in our roads and many other infrastructure constructions,' says Leggett. 'The current delays and limited local access to these materials are adding significant costs to our communities.' The new NPS for Natural Hazards is also a much-needed addition to New Zealand's consenting and planning system. 'Extreme weather events and other climate-related natural hazards are increasing in intensity and frequency, and along with Aotearoa's significant seismic risks, pose a major threat to the infrastructure we rely on,' Leggett says. 'New Zealand is ranked by Lloyd's of London as second only to Bangladesh in terms of natural disaster-related economic losses, and yet our response in terms of consenting and development planning has been left almost entirely to councils and is therefore piecemeal and inconsistent.' 'How different local government entities identify and manage risks associated with climate change, weather events and seismic activity can make a major difference to infrastructure planning and delivery. This NPS is therefore an important step towards standardising how those risks are identified and assessed, and providing a more predictable framework for future infrastructure development.'
Yahoo
19-05-2025
- Business
- Yahoo
Demand for AI error insurance grows
The growth of AI is awakening interest in insurance policies that cover liabilities arising from dysfunctional AI outputs, as per a GlobalData poll. As adoption of AI advances across industries, demand for cover for AI-related liabilities will naturally expand; driving product development. A GlobalData poll conducted on Life Insurance International in Q1/Q2 2024 explored the appetite among business executives for several insurance products. While personal cyber insurance was the most-desirable product, attracting 61.3% of responses, cover for cryptocurrencies (44%) and liability due to dysfunctional AI output (40%) garnered significant interest. Yet demand for coverage for erroneous AI output is expected to increase as enterprises race to implement AI and automation; embedding them into their core operations. Lured by the potential time efficiencies and cost savings, enterprises across all industries are increasingly adopting AI into their strategies. While recent advances in the technology have improved AI's overall performance, and subsequent interest in its adoption, the technology remains imperfect. Flaws include algorithmic bias, privacy breaches, 'hallucinations' (made up information by AI tools), and erroneous outputs, which can have unintended consequences for businesses, such as financial losses and reputational damage. Cover options for dysfunctional AI outputs remain limited, but the number of providers offering such a product is bound to rise as demand increases. Lloyd's of London is the latest provider debuting an insurance product intended for such a purpose. Lloyd's product is specifically designed to cover losses arising from AI chatbots and is offered through the startup Armilla. The policy is intended to cover the cost of court claims against a business should a customer or a third party suffer harm because of an AI tool's underperformance. As such, a mistake by the AI tool would not trigger a payout as it would need to be established that the tool had performed below the initial expectations. Examples of AI underperformance across several industries have appeared in the media and these could have potentially been covered by an AI insurance policy. At the start of 2025, Virgin Money had to offer a public apology after its chatbot reprimanded a customer for using the word 'Virgin' when asking details on how to merge two of the bank's accounts. In 2024, a tribunal ordered Air Canada to honour the discount that its chatbot had incorrectly offered to a traveller, as well as paying for the legal expenses he had incurred. That same year, courier business DPD was forced to disable part of its bot after it swore to a customer and branded the business as the worst delivery company in the world. The development of specialised AI insurance policies signals the insurance industry's recognition of the unique AI-related liabilities that the technology commands, with traditional policies falling short of covering for these. Moreover, AI language is dynamic in that it learns over time and therefore mistakes can be expected. The market for AI insurance is still in its nascency, but insurers should keep track of the rapid pace of AI developments. Assessing and pricing these novel risks will be challenging, given the lack of historical data and the speed at which AI develops. Insurers that are quick to act and get the pricing correct will be best placed to make a name for themselves as leaders in providing cover for this emerging risk. "Demand for AI error insurance grows" was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
&w=3840&q=100)
Business Standard
12-05-2025
- Business
- Business Standard
AI hallucination puts firms at risk? New insurance covers legal costs
Insurers at Lloyd's of London have introduced a new insurance product designed to protect businesses from financial losses arising from artificial intelligence system failures, according to a report by The Financial Times. The insurance, developed by Y Combinator-backed start-up Armilla, provides coverage for legal claims against companies when AI tools generate inaccurate outputs. The policy offers financial protection against potential legal consequences, including court-awarded damages and associated legal expenses. It responds to rising concerns over AI's tendency to produce unreliable or misleading information—commonly referred to as "hallucinations" in AI terminology. As companies increasingly integrate AI tools to enhance efficiency, they also face growing risks from errors caused by flaws in AI models that lead to hallucinations or fabricated information. Last year, a tribunal ruled that Air Canada must honour a discount its customer service chatbot had wrongly offered. What is an AI hallucination? An AI hallucination occurs when an algorithm generates information that appears credible but is actually false or misleading. Computer scientists use the term to describe such errors, which have been seen in various AI tools. These hallucinations can cause significant problems when AI is used in sensitive areas. While some errors are relatively harmless—such as a chatbot giving a wrong answer—others can have serious consequences. In high-stakes settings like legal cases or health insurance decisions, inaccuracies can severely impact people's lives. Unlike systems that follow strict, human-defined rules, AI models operate based on statistical patterns and probabilities, which makes occasional errors inevitable. Though minor mistakes may not pose a big problem for most users, hallucinations become critical when dealing with legal, medical, or confidential business matters. Karthik Ramakrishnan, Armilla's chief executive, said the new product could encourage more companies to adopt AI by addressing fears that tools like chatbots might break down or make errors. Hallucinations getting worse despite AI advances Despite improvements by companies like OpenAI and Google in reducing hallucination rates, the problem has worsened with the introduction of newer reasoning models. OpenAI's internal assessments found that its latest models hallucinate more often than earlier versions. Specifically, OpenAI reported that its most advanced model, o3, produced hallucinations 33 per cent of the time on the PersonQA benchmark, which tests the ability to answer questions about public figures—more than double the rate of its earlier model, o1.
Business Post
08-05-2025
- Business
- Business Post
Dubliner Patrick Tiernan appointed new chief executive of Lloyd's of London
Insurance Dubliner Patrick Tiernan appointed new chief executive of Lloyd's of London Oisín Gaffey 16:54 Irishman Patrick Tiernan appointed chief executive of Lloyd's
Time Out
04-05-2025
- General
- Time Out
The revolutionary high-tech London building named one of Britain's most at risk from demolition
Every year the Twentieth Century Society (C20) puts together a list of Britain's most at-risk 20th and 21st architectural marvels. Earlier this month it published the 2025 edition of its Risk List, with the included structures ranging from a Brighton synagogue with a stained glass Holocaust memorial to a Bauhaus-inspired department store in Bradford. C20's 2025 Risk List intended to highlight 'outstanding twentieth and twenty-first century buildings across the country that are at risk from demolition, dereliction or neglect'. Among the 10 selected structures is one from London – and there's every chance you haven't heard of it. The Patera Prototype in Newham is the only structure in the capital to feature in C20's 2025 At Risk list. So, what exactly is it? Well, for starters, here's what it looked like back in its 1980s heyday: The Patera was made as a prototype for a new type of industrial structure designed to be replicable and moveable. It's a significant example of 'high-tech architecture', a style that emerged in the 1970s with the aim of incorporating high tech industry and technology into building design. High-tech buildings are often identifiable for having visible beams, pipes and cables, as well as for being very flexible in use. Famous examples include stuff like Lloyd's of London in the City or Paris' Pompidou Centre. Anyway, back to the Patera. The structure that currently sits in Newham was made in 1982 by Michael Hopkins Associates and Anthony Hunt Associates and it's one of only two remaining prototypes (the other is part of the Hopkins office in Marylebone). C20 describes it as being 'a prefabricated off-the-peg industrial structure… envisaged as a form of 'High-Tech Nissen hut''. The Patera Prototype is undeniably a fascinating piece of design – but it could soon be lost as a document of architectural history. C20 says that the structure is currently threatened by the redevelopment of the Royal Docks. The Patera sits in a boatyard workshop on Albert Island, which is earmarked for a major £300 million development. The structure was rediscovered in 2020, and C20 had a listing application rejected in 2021. It has sat semi-dismantled since 2022. C20 isn't suggesting that the docks' redevelopment is halted by the Patera – just that it is relocated and restored. The charity reckons that 'this early relic of the High-Tech movement [could] become a cultural or creative venue'.
