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Insurers turn to generative AI for catastrophe modeling, but hallucinations and sales logic could get in the way

Diffusion models generate tens of thousands of plausible weather events where historical data doesn't exist. Insurers are hoping for more precise risk assessments. Researchers warn about hallucinations. The article Insurers turn to generative AI for catastrophe modeling, but hallucinations and sales logic could get in the way appeared first on The Decoder.

Insurers turn to generative AI for catastrophe modeling, but hallucinations and sales logic could get in the way
Primary source the-decoder.com ↗

Published June 25, 2026 · Category: AI Briefing

Overview

Diffusion models generate tens of thousands of plausible weather events where historical data doesn't exist. Insurers are hoping for more precise risk assessments. Researchers warn about hallucinations.

Details

The article Insurers turn to generative AI for catastrophe modeling, but hallucinations and sales logic could get in the way appeared first on The Decoder.

Source

Originally published at the-decoder.com.

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