Building Recourse.ai: A Parametric Insurance Prototype for the Age of Agentic AI

The article discusses the limitations of traditional Errors & Omissions (E&O) insurance in the age of AI agents, which are being deployed at a rapid pace. A new parametric insurance prototype, Recourse.ai, uses live operational signals to provide instant payouts when a pre-agreed safety threshold is crossed. This approach is more suitable for autonomous systems that make thousands of decisions per hour. The prototype bridges AI operational telemetry with parametric insurance workflows, converting real-time agent behavior into verifiable payouts. This matters because it addresses the gap between procurement and legal review, providing a more efficient and effective way to manage risk in AI operations.