TORONTO, September 28, 2023 - Armilla Assurance, a startup with the mission to help companies realize the benefits of trustworthy AI, today announces the introduction of Armilla Guaranteed™, a performance guarantee for AI products. Armilla Assurance will use its model evaluation platform and partner with three leading insurance providers - Swiss Re, Greenlight Re and Chaucer - to offer product warranties on AI solutions.
The rapid adoption of AI has not come without hurdles. The 2023 Stanford AI Index reported that the number of AI incidents and controversies has increased 26X since 2012, contributing to a growing lack of trust that makes it hard for even the most responsible companies to sell their products.
With this product launch, Armilla Assurance will help companies not only evaluate the AI products they are buying but also guarantee how they will perform. Both the model assessments and the warranty are driven by Armilla’s AI-based model evaluation platform.
“Companies are increasingly deploying AI-first products from vendors while absorbing the risk of these models. This is a contributing source in the rise of AI incidents we’ve all seen headlines about, particularly around generative AI,” said Karthik Ramakrishnan, co-founder and CEO of Armilla Assurance. “We know that no AI model is 100% perfect, and we at Armilla have been identifying and addressing the risks of AI models directly. Armilla Guaranteed will provide certainty on the quality of an AI-powered product, and we believe this will be the catalyst for a new era in responsible AI.”
Armilla Assurance’s assessment process includes both qualitative and quantitative analyses of the model. Using the Armilla evaluation platform, the assessment can be tailored to the model and use case and takes just a few hours. The result is a deep understanding of the risk within a product so that risk can be priced accordingly.
This evaluation technology is the basis for the two parts of the Armilla Guaranteed offering:
Armilla Assurance is teaming up with (re)insurance companies Swiss Re, one of the world’s leaders in reinsurance, Greenlight Re and Chaucer.
“Algorithms and machine learning are here to stay, and in the same way that businesses seek insurance to protect against the risk of theft or property damage, they deserve to have protection for the risk of faulty algorithms,” said Gianni Biason, Senior Underwriter, Special Risks at Swiss Re. “We are excited to support Armilla Assurance as a leading provider of accurate and thorough model verification, and we’re committed to helping move the insurance industry forward in enabling the development of more trustworthy AI-based products.”
“At Chaucer, we’re delighted to partner with Armilla Assurance to bring this new innovative product to the market. While AI creates a myriad of opportunities, it also carries material risk which is where the (re)insurance market steps in to provide cover where it’s needed, helping to close an ever-increasing AI protection gap,” added Hayley Maynard, Head of Innovation at Chaucer.
“AI has leaped into the mainstream in 2023 and both consumers and businesses are recognizing the potential for efficiency improvements across all areas of life. Armilla Assurance has developed an innovative and much-needed approach to analyze models for fairness and accuracy that will help increase the adoption of AI technology in a safer and more cost-effective way. Greenlight Re established its innovation unit to work with global experts to bring new innovative products to the insurance market to meet customer needs. The use of AI has grown rapidly in recent years and we are pleased to partner with Armilla, through S3456, to provide a unique warranty product to the market,” said Brian O'Reilly, Head of Innovation at Greenlight Re.
Armilla Assurance is already working with BUDDI AI, the industry’s first generative AI-driven reimbursement platform that helps healthcare providers automate medical coding and reduce insurance claim denials by 60%. BUDDI AI guarantees its hospital and medical group customers the automatic coding of over 70% of patient charts per month at 95% accuracy, and now with the backing of Armilla Assurance, both their team and their customers have the comfort of protection if something goes wrong.
“Working with Armilla Assurance has been a defining moment in our journey because AI-driven automation in the healthcare industry is riddled with risks stemming from bad clinical data, data bias, and misinterpretation of clinical context and reimbursement guideline variances,” said Ram Swaminathan, CEO and Co-Founder of BUDDI AI. “We’ve been missing a shield to protect us from this inherent risk and give our customers comfort for those ‘what if’ scenarios. This warranty offering is what the AI industry has been waiting for and has helped us greatly in cutting the sales cycles with hospitals.”
To learn more about Armilla Assurance, visit armilla.insure.
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About Armilla Assurance
Armilla is an AI assurance platform with the mission to help companies realize the benefits of trustworthy AI. Using industry-leading AI evaluation technology, the company measures and evaluates the risk level of AI models to provide AI verification as part of a warranty. Armilla Assurance was part of Lloyd’s Lab 2023 accelerator, a 10-week fast-track, fast-fail program where new concepts, ideas and products can be tested with the support of experts from the world’s largest insurance and reinsurance market.