Insurance carriers are reducing or withdrawing coverage for AI-related risks in cybersecurity and errors and omissions (E&O) policies.

Several major insurance carriers have begun to back away from providing cybersecurity and other insurance to companies using AI to run internal processes, insiders say. While there’s no standard response to customer use of AI in the insurance market, many carriers are now quietly declining to write policies for claims related to AI-generated outputs in cybersecurity and errors and omissions (E&O) coverage, these observers say. Other insurance carriers are jacking up prices to cover AI-related claims, they say. Dozens of insurance carriers appear to be rethinking coverage for mistakes related to AI, says Connor Deeks, CEO of Codestrap, an AI development and consulting firm that works with insurance firms. Many insurance companies aren’t comfortable with covering AI outputs because they can’t track the reasoning path the AI took to come up with a result, he says. https://www.csoonline.com/article/4159292/insurance-carriers-quietly-back-away-from-covering-ai-outputs.html

Insurance carriers quietly back away from covering AI outputs www.bespacific.com/insurance-carriers-quietly-back-away-from-covering-ai-outputs CSO: “Several major insurance carriers have begun to back away from providing cybersecurity and other insurance to companies using AI to run internal processes, insiders say. While there’s no standard response to customer use of AI in the insurance market,…