South Korean firm to develop liability insurance for AI robots

SEOUL, May 27 (UPI) -- South Korean telecom giant KT is developing an insurance program covering artificial intelligence-based robotics services for the first time.

KT, the country's leading telecom operator, and DB Insurance said they signed a memorandum of understanding on Wednesday in Seoul.

The two companies plan to come up with an insurance product next month to offer fixed liability coverage for when service robots may cause damages.

After operating under DB's liability coverage program for the next year, KT will strive to collaborate to introduce other products dedicated to AI robots.

"At a time when AI service robots are expanding, cooperation with DB Insurance will be the first step toward providing satisfaction to customers," KT Executive Vice President Song Jae-ho said in a statement.

"The two companies agreed upon the necessity to create future cash cows," he said.

Observers have pointed out that innovative products will continue to enter the arena around AI and robotics services.

"A rising number of novel products related to AI and robotics will come to light. The KT-DB partnership is just the very beginning"" Kim Dong-jin, a commentator specializing in AI, told UPI News Korea.

"The whole financial industry will have to be ready to embrace the fast changes in AI and robotics," said Kim, who also heads JM Robotics in South Korea.

On April 29, South Korea's Economy and Finance Minister Hong Nam-ki presided over a meeting to discuss measures looking ahead to the robotics era. One of the top issues involved insurance products that protect people from the risks posed by service robots.

According to industry tracker BCG Publication, the global service robot market grew 13 percent last year compared to 2019. Its market size is expected to surpass that of industrial robots in 2025.