Introduction: Insurance Catches Up to AI # The insurance industry has a problem: AI risks are growing faster than the industry’s ability to underwrite them. Claims are emerging across every line of business, from professional liability to cyber to general liability. Exclusions are proliferating. Coverage disputes are multiplying. And the market is only beginning to develop AI-specific products.
An Emerging Crisis # Professional liability insurance makes modern professional practice possible. Doctors, lawyers, engineers, and accountants can take on complex work because insurance spreads the risk of error across the profession. The insurance industry has spent decades developing actuarial models to price this risk accurately.
When AI Systems Fail # Every organization deploying AI will eventually face an AI incident. It’s not a question of if, but when. The difference between a manageable incident and an existential crisis often comes down to preparation and response.
Why AI Governance Policies Matter # Every organization using AI needs a governance framework. Without one, AI deployment decisions happen ad hoc, different teams use different standards, risks go unassessed, and accountability is unclear.