You’ve seen plenty of reports on how hackers are leveraging AI to commit cyber crimes while insurers are using the technology to improve underwriting and customer service. Now experts report risks from AI are prompting stand-alone cyber insurance policies covering losses by users of the evolving technology, a market Deloitte predicts could grow at a CAGR of about 80%, reaching app. $4.7 billion in premiums by 2032.
Cyber insurance expert Anthony Dagostino told the November 2024 TAG Cyber Insurance Journal, that AI policies may ramp like stand-alone policies for risks in areas such as crypto and cannabis. “I know it is being explored by some,” said AXA’s former Global Chief Cyber Underwriting Officer, Commercial Lines. (S)o if it (losses from using AI) ends up being very difficult for the mainstream insurance companies or the traditional insurance companies to underwrite, but there’s a big enough demand for the coverage, and there’s enough people that think they know it and get their arms around it, you’ll see a product break out.”
Risks from using AI range from copyright infringement to wrongful death from malfunctioning AI models used by autonomous vehicles or medical diagnostice tools, Deloitte reports. Munich Re and Armilla already offer policies focused on losses from AI, the firm notes.
Other News: Cyber Security Insurance Industry Moves (Carefully) Toward AI (Opens in a new browser tab)