Several prominent American insurance carriers have petitioned regulators for permission to exclude artificial intelligence liabilities from standard corporate policies, citing the technology's unpredictable behavior as an unquantifiable hazard. AIG, Great American, and WR Berkley are among firms seeking these exemptions after incidents such as a fabricated discount honored by Air Canada's chatbot and a $25 million fraud enabled by deepfake video technology at London-based Arup engineering.
Industry executives expressed particular concern about systemic failures affecting multiple clients simultaneously through widely deployed AI models from OpenAI, Google, or Microsoft. An Aon representative noted that while individual large claims remain manageable, cascading malfunctions across thousands of businesses present unprecedented exposure. Google faces a $110 million lawsuit after its AI Overview product generated false accusations against a solar company.
Lloyd's of London has developed specialized policies at elevated premiums, but major carriers remain reluctant to price risks they consider fundamentally different from traditional business hazards.
Industry executives expressed particular concern about systemic failures affecting multiple clients simultaneously through widely deployed AI models from OpenAI, Google, or Microsoft. An Aon representative noted that while individual large claims remain manageable, cascading malfunctions across thousands of businesses present unprecedented exposure. Google faces a $110 million lawsuit after its AI Overview product generated false accusations against a solar company.
Lloyd's of London has developed specialized policies at elevated premiums, but major carriers remain reluctant to price risks they consider fundamentally different from traditional business hazards.
