September 16, 2021
New AI tool predicts early Alzheimer’s by scanning brain images
What: Researchers created an AI tool that analyzes brain images to predict the onset of Alzheimer’s disease with near 100% accuracy. The research team hopes this will improve early detection, improving treatment efficiency.
Why it matters: Providing yet one more example of how AI is better than people at pattern recognition, this will ultimately affect insurance decisions, including underwriting and claims adjudication.
OpenAI launches Codex, AI that writes code
What: Proficient in over a dozen programming languages, Codex can now interpret simple commands in natural language and execute those commands on behalf of a user—making it possible to build a natural language interface to existing software applications.
Why it matters: This is going to disrupt programming as a profession; people with experience using AI will graduate to a higher rung on the career ladder. And for those that are inexperienced, salaries will decrease. Overall, companies will be able to do more with fewer people.
Read: OpenAI Codex
US treasury inquires about climate risks
Quote: “Over the past 30 years, the incidence of natural disasters has dramatically increased and the actual and future potential cost to the economy has skyrocketed. We are now in a situation where climate change is an existential risk to our future economy and way of life,” Treasury Secretary Janet L. Yellen said. “Today’s filing in the Federal Register is an important step towards assessing climate-related financial risk in the insurance sector. Ensuring that consumers have adequate information, and that the insurance industry is appropriately assessing climate-related financial risk is essential as we work to address the climate crisis.”
Why it matters: Accurately rating risks has become much more difficult, but insurers that have quality data and precision underwriting will have a considerable advantage when it comes to pricing properly. The expected rise in costs is an opportunity for securitization to mature to help provide capacity, and for the bundling of products to carefully manage risk without getting excess coverage.
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