Foundations of a Time-Consistent Counterfactual Actuarial Runtime for Autonomous AI Agents
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Abstract (arXiv)
We propose a foundational runtime actuarial layer for autonomous AI agents in which every side-effect-bearing action carries a time-consistent, counterfactual risk toll computed against a contractually fixed safe default, inside an explicit underwriting boundary. The framework treats per-action insurance as the primary unit of analysis and replaces post-hoc annual liability cover with a pre-action transaction layer. The paper establishes four structural results: (i) a well-defined counterfactual toll under a chosen safe-default mapping and continuation policy, with explicit non-uniqueness; (ii) a no-splitting property within an underwriting boundary that telescopes path-decomposed actions into a boundary potential, with a corollary tying gaming-resistance to boundary design; (iii) an irreversible-authority premium, split into a strictly positive action-level component and an if-and-only-if characterisation of the set-level robust capital increase; and (iv) a conservative runtime gating theorem that translates high-probability toll envelopes into an executed-action budget guarantee. The result is the mathematical base layer for a broader program: an empirical companion instantiates the runtime through an Actuarial Action Interface and authority-frontier experiments; a mechanism-design companion studies strategic operator incentives and cross-boundary aggregation; and a dynamic-underwriting companion studies experience rating and audit-replay calibration. The present paper states the primitive contract, the toll identity, the within-boundary no-arbitrage result, and the budget guarantee on which those later layers depend.
Key facts. Cited by 3 papers in the map (data through 14 Oct 2026). Builds on 8 of its 27 references that are in the map. First posted on arXiv 26 May 2026.
Builds on
8 of 27 references.
References · 8
- 2021A Gentle Introduction to Conformal Prediction and Distribution-Free Uncertainty Quantificationcited by 792
- 2021Adaptive Conformal Inference Under Distribution Shiftcited by 375
- 2014Optimizing the CVaR via Samplingcited by 99
- 2014Algorithms for CVaR Optimization in MDPscited by 99
- 2026Quantifying Trust: Financial Risk Management for Trustworthy AI Agentscited by 8
- 2021Algorithmic Insurancecited by 5
- 2026Insuring Every Action: An Authority Frontier Framework for Runtime Actuarial Control of Autonomous AI Agentscited by 4
- 2024Catastrophe Insurance: An Adaptive Robust Optimization Approachcited by 3
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Citing papers per year: 2026: 3.
3 papers.
- 2026When Agent Automation Becomes Profitable: Quantifying and Insuring Autonomous AI Risk through Trace-Economic Underwritingcited by 3
- 2026Gaming-Resistant Insurance Contracts for Autonomous AI Agents: Strategy-Proof Toll Mechanism Designcited by 0
- 2026agent-risk: Risk Assessment for Changes to AI Agentscited by 0
- 2026agent-risk: Risk Assessment for Changes to AI Agents12 Oct 2026
- 2026When Agent Automation Becomes Profitable: Quantifying and Insuring Autonomous AI Risk through Trace-Economic Underwriting15 Jun 2026
- 2026Gaming-Resistant Insurance Contracts for Autonomous AI Agents: Strategy-Proof Toll Mechanism Design15 Jun 2026