Insurers retreat from AI cover as risk of multibillion-dollar claims mounts

Major insurers are seeking to exclude artificial intelligence risks from corporate policies, as companies face multibillion-dollar claims that could emerge from the fast-developing technology. AIG, Great American and WR Berkley are among the groups that have recently sought permission from US regulators to offer policies excluding liabilities tied to businesses deploying AI tools including chatbots and agents. The insurance industry’s reticence to provide comprehensive cover comes as companies have rushed to adopt the cutting-edge technology. This has already led to embarrassing and costly mistakes when models “hallucinate” or make things up. One exclusion WR Berkley proposed would bar claims involving “any actual or alleged use” of AI, including any product or service sold by a company “incorporating” the technology. In response to a request from the Illinois insurance regulator about the exclusions, AIG said in a filing generative AI was a “wide-ranging technology” and the possibilit

Major insurers are seeking to exclude artificial intelligence risks from corporate policies, as companies face multibillion-dollar claims that could emerge from the fast-developing technology. AIG, Great American and WR Berkley are among the groups that have recently sought permission from US regulators to offer policies excluding liabilities tied to businesses deploying AI tools including chatbots and agents. The insurance industry’s reticence to provide comprehensive cover comes as companies have rushed to adopt the cutting-edge technology. This has already led to embarrassing and costly mis