As cyber criminals increasingly leverage AI for everything from phishing scams and blackmail to misinformation campaigns and election interference, businesses face new threats that require innovative defenses. In response to AI-driven cybercrime threats, AXA XL has unveiled a new endorsement to its cyber insurance coverage, specifically targeting the risks associated with Generative AI (Gen AI) model development. Available globally, this coverage aims to help businesses navigate the complex landscape of emerging AI threats while protecting themselves from costly liabilities.
Michael Colao, AXA XL’s Global Chief Underwriting Officer, Cyber, noted that while companies are using Gen AI to boost efficiency and improve customer experience, they must also account for potential risks. These risks include data poisoning, where attackers compromise AI models by introducing false data into the training process, and usage rights infringement, where businesses may face legal consequences for failing to secure the proper permissions for intellectual property used in AI development. Additionally, regulatory violations under the European Union’s AI Act may expose companies to liabilities for non-compliance.
“Clear Coverage”
“Our clients sought help navigating this uncharted territory,” Colao said. “With our brokers’ input and feedback, we’re pleased to develop an innovative, market-leading insurance solution to provide clear coverage for these risks and help them leverage Gen AI without the worry of potential risks and extra costs that could hinder their efforts.”
The new coverage is available as an endorsement to AXA XL’s CyberRiskConnect policy, extending to regions such as the U.S., Canada, the U.K., Europe, and Asia. AXA XL continues to offer a comprehensive suite of cyber insurance products, including coverage for cyber incident investigations, financial liabilities, and risk management services aimed at strengthening businesses’ cybersecurity defenses.
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