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<\/div>\nMind Foundry<\/a> Ltd., an artificial intelligence startup vying to help insurers decide which drivers should be covered, has raised $22 million in funding, the latest sign of growing demand to deploy AI in critical sectors where there\u2019s little room for error.<\/p>\n The startup\u2019s AI tools are being used to detect cognitive decline in older drivers in Japan to aid Asian insurance giant, Aioi Nissay Dowa Insurance<\/a> Co., in predicting and preventing accidents. Aioi invested in the funding round along with Parkwalk Advisors and the University of Oxford, said Brian Mullins, Mind Foundry\u2019s chief executive officer. The Series B round brings the startup\u2019s total funding to $44 million.<\/p>\n Traditionally, insurers have relied heavily on details such as the type of car and the driver\u2019s age to predict who is more likely to be involved in serious accidents \u2014 and to set insurance premiums. In recent years, some insurers have leaned on AI software both to expedite settling claims and to analyze driving data to come up with more precise risk assessments for customers. AI\u2019s increasing influence on insurance coverage decisions may worry some, but Mullins said there\u2019s an upside when it comes to seniors.<\/p>\n \u201cIf a person is over a certain age, their insurance policy is gone, their independence is gone,\u201d Mullins said. \u201cNot all individuals age the same way. Now data can tell us that the person is driving safely. That\u2019s aresponsible use of AI.\u201d<\/p>\n Mind Foundry was founded in 2016 by a duo of University of Oxford computer scientists with the goal of designing \u201cAI for high-stakes applications,\u201d including defense and public infrastructure issues. It began working on the AI product for cognitive decline earlier this year and now wants to take its insurance offeringto other geographies.<\/p>\n The Oxford-based startup\u2019s data scientists collaborated with insurance experts to build an AI system that finds direct links between cognitive decline and road accidents. It was developed with enormous datasets, including 9 billion miles of telematics trip data, sensor measurements and dashcam accident footage, to help understand and underwrite risk. The AI system studied behavior patterns like harsh braking, erratic swerving and sudden acceleration among drivers who had been in the most severe, large-loss accidents \u2014 incidents with catastrophic personal injury and high costs, among other factors.It then analyzed similar patterns among older drivers to flag cognitive decline before it became dangerous.<\/p>\n \u201cLarge loss cases are not just the biggest risk in an insurance portfolio but also the most difficult to model and predict,\u201d Mullins said.<\/p>\n Aioi is currently piloting Mind Foundry\u2019s system with 2 million older drivers in Japan who\u2019ve consented to let it analyze their telematics data, including dashcam footage. That could lead to more personalized insurance plans with lower premiums for those whose driving behavior doesn\u2019t exhibit risky patterns, Mullins said. The startup is looking at ways to inform drivers, through an app or other means, about their own AI-gleaned driving patterns to convey if it\u2019s safe or risky.<\/p>\n \u201cWe believe the output of this pilot can potentially lead to enhanced safety and extended driving longevity for seniors,\u201d said Jun Ikegami, who heads Aioi\u2019s R&D laboratory. \u201cWe must tackle the challenges presented by aging populations,\u201d to ensure equity, he said. In Japan, more than 10% of the population is age 80 or older.<\/p>\n There has been a frenzy around all things AI this year, but with it has come added public pressure to make AI services more transparent and accountable, particularly as these technologies are applied in health care, criminal justice and insurance \u2014 industries where biases baked into AI systems can carry far greater risks.<\/p>\n \u201cIt\u2019s one thing for AI to misdiagnose cancer, another thing to play a tune I don\u2019t like,\u201d said Vincent Muller<\/a>, professor of philosophy and ethics of AI at the University of Erlangen\u2013Nuremberg. With insurance, there\u2019s also the question of accountability and remedies if technology leads to an error. \u201cHumans make mistakes, sometimes they can be trusted less than the machines, but at least they can be held responsible,\u201d Muller said.<\/p>\n Humans are involved in the process, according to Mind Foundry, including by providing feedback on the data used to develop its AI systems. The company said AI does not make the decisions, but rather informs insurance experts about a potential customer\u2019s risks before determining the coverage and pricing for that individual.<\/p>\n \u201cWe go through a responsible AI process before we choose an AI technology to develop a product,\u201d said Alessandra Tosi, a senior scientist at the startup. The startup works in highly regulated industries where it\u2019s necessary to help regulators understand how its technology works to ensure it isn\u2019t unfair or discriminatory.<\/p>\n Mind Foundry has also built AI tools to assess other driving issues. In the first 30 days of being deployed,one of its AI models helped Aioi\u2019s European unitdetect over 40,000 off-policy delivery trips and found 100 policy holders using personal vehicles for commercial deliveries \u2014 helping underwriters review such claims case by case.<\/p>\n The company applies AI in other segments too, working to help evaluate risks in public infrastructure such as railways or bridges so governments or cities can prioritize maintenance budget allocations. It builds AI systems to study risks from climate change and has deployed AI to optimize placement of EV charging infrastructure in complex road networks in the UK\u2019s Oxfordshire County Council.<\/p>\n Its toughest task, however, may be trying to use AI to insure AI. Mind Foundry is working to assess the risks of AI for autonomous vehicles, shifting from the current system of looking at drivers\u2019 individual liability to looking at risk from the vehicle and its software across the fleet. \u201cUnderstanding the risks associated with AVs is the first step towards creating an insurance product to safeguard against that risk,\u201d Mullins said.<\/p>\n Topics<\/span> Carriers<\/a> InsurTech<\/a> Personal Auto<\/a> Data Driven<\/a> Artificial Intelligence<\/a> <\/p>\n<\/p><\/div>\n Was this article valuable?<\/p>\n<\/p><\/div>\n
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