Journal article
The Evolving Landscape of AI Insurance: Empirical Insights into Risks and Policy Gaps
The Brief (Chicago. 1980), v 55(1), pp 18-27
01 Oct 2025
Abstract
Karthik Ramakrishnan, Armilla's CEO and cofounder, asserted that "the risks are not new, but their source is," prompting the insurance industry to rethink its current policies.10 This aligns with Daniel Woods of Coalition, who observed "marginal developments in threat actor behaviour, but not fundamental changes in cyber risk,"11 and Lauren Finnis of WTW, who advocates applying traditional risk management lenses to novel risks.12 * Vouch.13 This U.S.-based business insurance company launched a designated AI insurance program in February 2024. [...]PONTAAI, an excess difference in conditions (DIC) wrap policy for organizations with third-party liability exposure due to AI use or development, especially where existing liability programs may exclude AI. [...]RESCAAI, a first-party response policy protecting policyholders who use third-party AI for business operations or embed third-party AI solutions in their own products. Testudo focuses on leveraging proprietary data and risk analytics technology to help companies identify and manage emerging AI liability exposures, providing a "seamless route to adopting AI technologies confidently and responsibly" through combined data, analytics, and insurance capacity.20 The underlying conversation about offering insurance for AI activities has increased significantly, including discussions about creating a specialized market.21 Deloitte forecasts a "blue ocean opportunity" in the AI insurance market, predicting approximately $4.7 billion in annual global AI insurance premiums by 2032, with an 80% compounded annual growth rate.22 This indicates a strong incentive for insurance to be proactive in this field, with companies already taking the lead in AI liability rather than waiting for legislators or courts.
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Details
- Title
- The Evolving Landscape of AI Insurance: Empirical Insights into Risks and Policy Gaps
- Creators
- Anat Lior
- Publication Details
- The Brief (Chicago. 1980), v 55(1), pp 18-27
- Publisher
- American Bar Association
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Thomas R. Kline School of Law
- Other Identifier
- 991022162822804721