Major insurers are moving to ring-fence their exposure to artificial intelligence failures, after a run of costly and highly public incidents pushed concerns about systemic, correlated losses to the top of the industry’s risk models. According to the Financial Times, AIG, WR Berkley, and Great American have each sought regulatory clearance for new policy exclusions that would allow them to deny claims tied to the use or integration of AI systems, including chatbots and agents.
The requests arrive at a time when companies across virtually all sectors have accelerated adoption of generative tools. That shift has already produced expensive errors. Google is facing a $110 million defamation suit after its AI Overview feature incorrectly claimed a solar company was being sued by a state attorney-general. Meanwhile, Air Canada was ordered to honor a discount invented by its customer-service chatbot, and UK engineering firm Arup lost £20 million after staff were duped by a digitally cloned executive during a video-call scam.
