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Is AI driving claims and how is cyber insurance responding?

Key claims data insight

How can your cyber insurance policy respond to AI-related threats?

Whether an AI‑related event triggers a cyber insurance policy depends on whether it creates a covered cyber incident. Current cyber policies don’t tend to distinguish between AI‑enabled and non‑AI‑enabled events and typically don’t feature AI exclusions.

Where can AI-related threats fall outside of cyber insurance?

Several AI-related costs and scenarios are less likely to be covered because they don’t fit common cyber insurance clauses, including:

The costs of retraining or restoring a machine learning model after sabotage or malfunction
Revenue loss caused by hallucination (where an AI system invents something) or data drift (where an AI system’s performance worsens because it’s not using up-to-date data) where there is no covered network outage
Regulatory actions for non‑compliance with AI legislation.

How can other insurance policies respond to AI-related losses?

Because AI losses can arise in the absence of a covered cyber incident, you should look beyond cyber to understand your overall protection, including:

Professional liability and technology errors and omissions
Directors’ and officers’ liability cover for governance or disclosure failures
Crime for fraud, insurance and impersonation events.

“Current cyber policies don’t tend to distinguish between AI‑enabled and non‑AI‑enabled events and typically don’t feature AI exclusions.”

Priority actions to better prepare, respond and recover from AI cyber risks

1

Identify and quantify the impact of malicious and non‑malicious AI loss scenarios and map them to your current policies.

2

Review your cyber and broader insurance policies for overlaps and gaps in the most damaging malicious and non‑malicious AI-related loss scenarios.

3

Stay informed on emerging AI‑specific coverage where you identify gaps that could lead to significant harm to your revenue and reputation.

Review your cyber and wider insurance policies for overlaps and gaps of the most damaging malicious and non‑malicious AI-related loss scenarios.