Underwriters demand AI risk disclosure
Underwriting teams are requiring explicit AI governance disclosures and controls as part of professional indemnity and cyber renewals, and firms without clear AI policies may face higher premiums or coverage limits. The shift signals underwriters are treating AI use as an underwriting gauge, not just an operational choice. (el-balad.com)
Underwriters are inserting detailed AI-governance questions into renewal questionnaires, asking specifically about model validation, bias detection, API security and data-protection ownership. (cybernews.com)) Lloyd’s market guidance and the Lloyd’s Market Association have explicitly elevated “use of technology, AI and follow facilities” as an underwriting oversight focus in their 2025 market oversight materials. (assets.lloyds.com)) At least one carrier application now asks applicants to quantify AI exposure — including the percentage of revenue derived from AI and whether generative AI is used to produce original content. (hunton.com)) Carriers are already reacting commercially: broker and legal analyses report insurers raising premiums, increasing deductibles, capping AI-related limits and adding explicit AI exclusions where governance is weak. (lexology.com)) Market forecasts and analyst reports link AI-driven exposures to higher cyber pricing, with some forecasts projecting mid‑teens premium growth in cyber lines as AI threats and data demands rise. (claimsjournal.com)) Regulatory pressure is pushing insurers and insureds toward documented AI programs: a NAIC model bulletin on insurer use of AI has been adopted or mirrored by multiple states as the de facto standard. (bakertilly.com)) Reinsurance and major carriers are seeking regulatory approval to limit AI-related liabilities, while broker guidance urges insureds to document AI development, oversight and incident playbooks to remain insurable. (insurancebusinessmag.com))
