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Who covers AI business blunders? Some insurers cautiously step up
Insurers cautiously offer or exclude AI agent error coverage as the global market could reach $4.8 billion by 2032, reflecting new liability exposures from autonomous AI mistakes.
- Insurers are selectively offering coverage for AI errors while others maintain explicit exclusions, according to Jonathan Mitchell, head of the financial sector practice at brokerage firm Founder Shield, signaling a shift from the industry's "wait-and-see approach."
- Agentic AI's growing use has businesses trusting autonomous agents to drive revenue while reducing human oversight, and AI systems still produce "hallucinations" that create new liability exposures insurers must price into policies.
- Armilla, a specialist insurer, tests client AI models for vulnerabilities and assesses risk-management frameworks before committing to coverage, while Munich Re's head of AI insurance Michael von Gablenz warns "This risk of a model making errors or hallucinating cannot be fully avoided in any technical way."
- The Deloitte Center for Financial Services projects the global AI insurance premium market could grow to as much as $4.8 billion by 2032, with Munich Re estimating the sector could eclipse cybersecurity insurance in size.
- Law professor Anat Lior and analyst Sonal Madhok say "We can expect policies to explicitly address AI in the near future, ending the silent coverage era," comparing current uncertainty to early cybercrime liability debates.
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Who covers AI business blunders? Some insurers cautiously step up
As more businesses trust artificial intelligence "agents" to independently grow their revenues, some insurance firms are stepping in to cover any mistakes -- while others are steering clear.
Insurers grapple with covering AI’s autonomous decision-making risks
As businesses increasingly delegate critical decisions to autonomous AI agents, the insurance industry faces a growing challenge: how to cover the potential mistakes of these advanced systems. The trend of “agentic AI,” where AI programs operate independently, is reshaping traditional insurance models, leaving some insurers hesitant to provide coverage. Phil Dawson, head of AI policy and… Source
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Total News Sources54
Leaning Left6Leaning Right12Center14Last UpdatedBias Distribution44% Center
Bias Distribution
- 44% of the sources are Center
44% Center
L 19%
C 44%
R 37%
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