Ashwin Kashyap
7 July 2023Analysis

CyberCube warns of AI impact on insurance

The insurance industry needs to watch the emergence of new artificial intelligence tools very carefully, according to CyberCube.

Ashwin Kashyap, co-founder of CyberCube and chief product officer, said that AI is truly transformational to the world at large, and impacts all industry verticals, including insurance.

“In our opinion, it is as big as the cloud, the mobile phone, and other transformational technologies that we've seen over the past several decades,” Kashyap said in a new video interview posted on the CyberCube website. “As a result, we need to pay close attention to what it particularly means to the cyber insurance market. From CyberCube's perspective, we firmly believe that ubiquity of AI is not an if question, but a when question. And when that becomes reality, you should expect a regime change in terms of what the cyber threat landscape would look like. And we are in the process of looking into modelling that as a part of how we are thinking about emerging risk within the company.”

Kashyap said that based on some of the research that CyberCube has done, there are a few things that would lead to an increase in frequency of cyber attacks. The first is data leakage driven by employee use of AI technologies. When employees within companies upload confidential information into these AI tools, these tools use those datasets to train the model and improve the model. However, this confidential data can be accidently leaked to other users of the same platform, making it an important vector to watch out for which could increase the number of privacy breaches that you would observe over a period of time.

Second, there could be an increase in the ability to spoof using voice, video, email, chat and a variety of other media. CyberCube has already seen empirical evidence of AI generated voice scams that have resulted in financial fraud, making this yet another example of a vector that makes it easier for threat actors to conduct phishing campaigns and other similar activities at scale, without having to rely on human capacity, leading to an increase in frequency.

Thirdly Kashyup said that CyberCube is concerned about misinformation and loss of integrity of information at large. “When you think about how software is developed, most programmers use packages and libraries in order to write code, and it is relatively easy to inject malware into one of these packages if you're trying to copy paste code from these AI technologies.

“All of these lead to an increase in expected frequency over a period of time. And the insurance industry needs to watch this very carefully,” he concluded.

To see the full CyberCube interview between Kashyup and Yvette Essen, head of content, communications and creative at CyberCube, click here.