Cyber insurance is the fastest-growing insurance segment. Tech companies carry cyber insurance to protect themself from liability and losses caused by security and privacy breaches. The director of Mexico’s largest insurer Jacobo Bazbaz Sacal reports that the emergence of self-driving cars creates unique liability challenges for companies like Google, Tesla, and Uber.
The Dangers of Self-Guided Vehicles
The added liabilities that self-driving cars create for their manufacturers maybe offset the technology’s advantages. Jacobo Bazbaz Sacal specifically referenced the dangers of relying on Artificial Intelligence (AI) and Machine Learning (ML) to navigate the roads safely.
— Jacobo Bazbaz Sacal (@JacoboBazbazMX) August 28, 2020
The Hacking Hazard
Programs to correct issues with ML programs have not developed as fast as Machine Learning itself. Jacobo Bazbaz points out that the above fact creates a unique set of problems for technology companies. Cyber insurance doesn’t currently cover losses incurred because an ML system was hacked or failed. Laws governing copywrites, hacking, and liability may not contain provisions addressing these new issues. All of this begs the question, “Who will be covering hacking losses and what firms will need such coverage?”
Jacobo Bazbaz Sacal
Jacobo Bazbaz Sacal is a Mexican national. He currently heads the insurance company Interprotecciones. Sacal is orchestrating his company’s move into the expanding cyber insurance segment. He describes the future of cyber insurance as an amalgam of software, transportation, and Machine Learning insurance.