No published actuarial study proves that AI governance lowers insurance costs. Seven carriers have filed exclusion endorsements that may have already changed your coverage. The insurance market appears to be sorting organizations by governance evidence without the loss data to validate the sorting. The market moved before the math arrived.

This episode explores The AI Risk Economy: Why Insurance Cannot Price What Governance Cannot Prove, a working paper by Basil C. Puglisi, MPA. The conversation covers the Economic Override (the author's framing of the structural tendency for economic incentives to override governance), the proposed five-tier insurance maturity model, the actuarial gap at the center of the emerging practice, and the six questions every organization should answer before their next renewal.

The five-tier model and six-v ...