{"id":6973,"date":"2025-11-25T20:17:33","date_gmt":"2025-11-25T20:17:33","guid":{"rendered":"https:\/\/musictechohio.online\/site\/insurance-cyber-risk-ai\/"},"modified":"2025-11-25T20:17:33","modified_gmt":"2025-11-25T20:17:33","slug":"insurance-cyber-risk-ai","status":"publish","type":"post","link":"https:\/\/musictechohio.online\/site\/insurance-cyber-risk-ai\/","title":{"rendered":"Insurance Companies Are Terrified to Cover AI, Which Should Probably Tell You Something"},"content":{"rendered":"
\n

As major corporations go, insurance companies are about the closest thing<\/a> we have to rational actors. With the job of underwriting a huge range of financial risks in a volatile market economy, the buck stops with them \u2014 meaning that by and large, they\u2019re not going to insure any new product that\u2019s particularly risky or untested.<\/p>\n

In other words, insurance companies have to be practical to stay operational, even when the stock market wants to be anything but<\/a>. The industry is a huge believer in climate change<\/a>, for example, for the simple reason that hurricanes, wildfires, and droughts can all have a major <\/strong>impact on their bottom line.<\/p>\n

That raises an interesting question: how does the insurance industry feel about AI, a highly experimental technology with almost no track record<\/a> of financial success? New reporting by the Financial Times<\/em><\/a> reveals some unease: top insurance firms like AIG, American Financial Group\u2019s Great American, and WR Berkley are begging US regulators to let them exclude AI liability from their policies.<\/p>\n

Basically, the companies are concerned about <\/strong>fielding multibillion-dollar claims, reflecting greater anxiety about AI\u2019s <\/strong>potential to cause costly and unpredictable damage to corporate revenue.<\/p>\n

WR Berkley, for example, is asking for permission not to cover claims stemming from \u201cany actual or alleged use\u201d of AI, including any product or service sold by a company \u201cincorporating\u201d the software. In AIG\u2019s case, the exclusion requests seem to be a precaution, with a spokesperson telling the FT <\/em>that the company has \u201cno plans to implement them at this time.\u201d<\/p>\n

There have been other signs that the insurance industry has been growing increasingly anxious<\/a> about AI risks in recent months.<\/p>\n

Cybersecurity policies, which act like a financial safety net in the event of costly cyberattacks such as ransomeware or data breaches, are a particular area of concern for the industry. That\u2019s thanks to AI itself, which is helping black hat criminals breed new kinds of malware<\/a>, while also introducing new vulnerabilities<\/a> to companies that deploy AI tools.<\/p>\n

\u201cIt\u2019s too much of a black box,\u201d Dennis Bertram, Europe head of cyber insurance for Mosaic told the FT<\/em>. Representing a major specialty insurer with a key focus on cyber risk<\/a>, Bertram\u2019s fears are noteworthy. Though Mosaic covers some risks related to specific software where AI is embedded, the firm chooses not to cover risks from large language models (LLMs) like ChatGPT and Claude, the FT<\/em> notes.<\/p>\n

With the US economy banking almost entirely on AI<\/a> for growth at this point, insurance companies going out of their way not to insure AI isn\u2019t exactly a comforting sign.<\/p>\n

More on AI: <\/strong>Top Economist Warns That AI Data Center Investments Are \u201cDigital Lettuce\u201d That\u2019s Already Starting to Wilt<\/a><\/em><\/p>\n

The post Insurance Companies Are Terrified to Cover AI, Which Should Probably Tell You Something<\/a> appeared first on Futurism<\/a>.<\/p>\n<\/div>\n

<\/div>","protected":false},"excerpt":{"rendered":"

As major corporations go, insurance companies are about the closest thing we have to rational actors. With the job of underwriting a huge range of financial risks in a volatile…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[177,3121,3842],"tags":[],"class_list":["post-6973","post","type-post","status-publish","format-standard","hentry","category-artificial-intelligence","category-finance","category-future-society"],"_links":{"self":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts\/6973","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/comments?post=6973"}],"version-history":[{"count":0,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts\/6973\/revisions"}],"wp:attachment":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/media?parent=6973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/categories?post=6973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/tags?post=6973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}