Also with regard to the timing the policy will be due

also with regard to the timing the policy will be due. Unlike the fear of terrorism and other grand-impact events, such as global health pandemics that will affect many policyholders with identical damages at once, the AI market is far more diversified and specified.
The
pre-existing
categories of
specialized insurance
policies
allow insurers to issue policies to AI users
, manufacturers, or whoever is
obligated or desires to purchase this type of hedging within their field of expertise. An important caveat to the distribution element is the possibility of catastrophic risk. Although AIs will conduct many of the same activities carried out by individuals, there is a greater
risk of aggregation harm because AIs run on common technologies and may be subject to common risks. This very issue has hampered the development of the cyber insurance market, given that widespread damages may, and do, occur when many companies use the
same online platforms to store their data. 216Though this issue cannot be completely eliminated, it seems less significant in the AI context because AI can operate on different platforms in light of their different functions and aims, which are not limited to data
storage as in the cyber context. Furthermore, this issue can be mitigated by manufacturers ensuring their products operate on different and protected platforms, thereby distributing risks, to prevent wide-spread damages. Such mitigation can be encouraged by
insurers who have the incentive to prevent these types of aggregate disasters.
Third, is
the element of
profitability
. While meeting the two first elements is sufficient to make a risk insurable, lacking the third element essentially
means that there will be no market for insuring these types of risks. 217
If profitability is not achievable, but there is
still a
demand for insurance
,
the government will
usually
step in with government-subsidized premiums
to bridge this gap. This government support allows insurers to offer policies
to the public and still make a profit. In the AI context, the
profitability of policies covering commercial AI damages should not be an

issue
. This is because
there already exists a vast profitable market for activities and instruments
that are
supposed to be replaced by AI entities
, such as truck drivers, security guards, lawyers, and doctors. 218In order to ensure the safe use and dissemination of these AI entities into the market,
there will most probably be a demand for insurance policies covering AI entities
, whether by the users or by the
manufacturers.
This
demand
will allow insurers to profit from this market
,
even if
the
premiums offered will be high
at first
until information is gathered about the behavior of these AI entities. Once insurers have determined an accurate premium,
the next question is allocating cost among
the relevant entities involved in an accident
.