Visibility with EDR/MDR is still important, ‘the basics’ are impossible, and the news – Rob Allen – ESW #460
Publish Date: 2026-05-25 05:00:00
Source Domain: www.scmagazine.com
Cyber Insurance and AI Risks
Is AI having its “ransomware moment” with cyber insurance? Currently, 9% of companies are already facing AI-related exclusions or riders, 27% expect this shift by the end of 2026, and 55% believe that insurers will integrate AI risks into standard cyber coverage. However, the author argues that it is only a matter of time before AI-related incidents lead to significant outages or data leaks, and thus, insurance coverage will be necessary to handle the associated fines. Drawing on insights from their tenure at a major insurance company, the author emphasizes the industry’s historic willingness to absorb new risks, including those posed by AI. Opinions in the related poll suggest that insurance companies will eventually have to deal with the burgeoning AI-related losses, as traditional cyber insurance is likely insufficient without appropriate adjustments.
Key Points:
- A growing number of insurance companies are beginning to implement exclusions and riders related to AI risks.
- There is an anticipated future necessity for cyber insurance to cover AI-induced incidents, given the potential for significant data breaches and regulatory fines.
- Historically, insurance companies are adept at evolving to incorporate new risks, suggesting a shift in how these entities address AI-related threats.
- Industry professionals anticipate a time when insurance companies will fully recognize and cover AI-induced losses.
- Financial investments and acquisitions in AI security firms underscore proactive steps being taken to mitigate these emerging risks.
