State of AI Insurance

October 19, 2023


We have assembled information regarding the current status of insurance companies and AI companies in the field of AI insurance.

State of Insurance Companies

Approach Description
New products Some insurance carriers have been selling AI insurance products for the last 3-4 years while some are about to launch such products in 1-2 months. These products cover risk of stability of performance (AI performance guarantee), copyright violation, etc.
Exclusions / Inclusions Some carriers are excluding AI risks from their existing products and adding them as endorsements.
Exposure estimation in existing portfolio Some carriers are sending detailed questionnaires about AI risks estimation to their existing policyholders, following which they plan to make a decision to launch new products or modify the existing ones.
Training underwriters and claims management teams Some carriers are investing in training their team on AI risks to understand how to adapt their underwriting process.
Wait and watch Other carriers are tracking losses, claims, lawsuits and regulations to decide the appropriate course of action.

State of AI Companies

  • AI companies are buying AI insurance products for risk of stability of performance (AI performance guarantee), risk of copyright violation, etc.
  • The AI performance guarantee product is being used to aid their sales.
  • Most claims are for covering losses due to AI underperformance.