Feb 2, 2026

No One Thanks You for Disasters That Never Happened: Pricing AI Risk While Making AI Safety Investable

Ana Belen Barbero Castejon, Stan Threepwood

This paper examines whether risk quantifi cation and pricing can function as a practical mechanism of AI governance. We present a prototype framework for pricing AI risk under deep uncertainty, using a scenario-based frequency–severity decomposition with dependency-aware propagation and aggregation with catastrophe-style tail modeling. Loss distributions are evaluated using standard actuarial metrics such as Expected Loss (EL), Value at Risk (VaR), and Tail Value at Risk (TVaR), enabling premium estimation in data-scarce environments.

These findings suggest a potential pathway for AI insurance and reinsurance to function as coordination infrastructure, aligning incentives across companies, developers, insurers, and regulators while enabling scalable investment in AI safety, security and operations.

Application available here: https://pricing-ai-risks.netlify.app

Code available here: https://github.com/stanthreepwood/ai-risk-pricing

Reviewer's Comments

Reviewer's Comments

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The problem is real but the proposed solution doesn't capture the whole complexity I think and hard to validate.

Cite this work

@misc {

title={

(HckPrj) No One Thanks You for Disasters That Never Happened: Pricing AI Risk While Making AI Safety Investable

},

author={

Ana Belen Barbero Castejon, Stan Threepwood

},

date={

2/2/26

},

organization={Apart Research},

note={Research submission to the research sprint hosted by Apart.},

howpublished={https://apartresearch.com}

}

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This work was done during one weekend by research workshop participants and does not represent the work of Apart Research.
This work was done during one weekend by research workshop participants and does not represent the work of Apart Research.