{"id":207863,"date":"2026-05-01T16:05:00","date_gmt":"2026-05-01T20:05:00","guid":{"rendered":"https:\/\/testing.news-you-need.com\/index.php\/2026\/05\/01\/big-insurance-backs-away-from-ai-risk-and-startups-rush-in\/"},"modified":"2026-05-01T16:10:13","modified_gmt":"2026-05-01T20:10:13","slug":"big-insurance-backs-away-from-ai-risk-and-startups-rush-in","status":"publish","type":"post","link":"https:\/\/testing.news-you-need.com\/index.php\/2026\/05\/01\/big-insurance-backs-away-from-ai-risk-and-startups-rush-in\/","title":{"rendered":"Big Insurance Backs Away From AI Risk and Startups Rush In"},"content":{"rendered":"<p><a href=\"https:\/\/www.pymnts.com\/artificial-intelligence-2\/2026\/big-insurance-backs-away-from-ai-risk-and-startups-rush-in\/\">Big Insurance Backs Away From AI Risk and Startups Rush In<\/a><\/p>\n<p><a href=\"https:\/\/www.pymnts.com\/artificial-intelligence-2\/2026\/big-insurance-backs-away-from-ai-risk-and-startups-rush-in\/\">https:\/\/www.pymnts.com\/artificial-intelligence-2\/2026\/big-insurance-backs-away-from-ai-risk-and-startups-rush-in\/<\/a><\/p>\n<p>Publish Date: <a href=\"publish_date]\">2026-05-01 16:05:00<\/a><\/p>\n<p>Source Domain: <a href=\"www.pymnts.com\">www.pymnts.com<\/a><\/p>\n<p>Here is an unordered list summarizing the key points of the article on AI and insurance coverage:<\/p>\n<ul>\n<li><strong>Insurers Exclude AI-related Risks:<\/strong> Major insurance companies like Berkshire Hathaway, Chubb, and Travelers have successfully lobbied state regulators to exclude AI-related damages from their general liability policies in many states.<\/li>\n<li><strong>Insurers Introduce Specialized Endorsements:<\/strong> Industry standards organizations have developed new endorsements to cover certain specific types of AI-related damages, but these are optional and need to be specifically attached to coverage.<\/li>\n<li><strong>Expanding Exclusions and Gray Areas:<\/strong> The coverage exclusions impact multiple areas including copyright claims, privacy and data use issues, antitrust claims, discrimination allegations, and securities class actions, creating new uncertainties for businesses.<\/li>\n<li><strong>Cybersecurity Policies Also Affected:<\/strong> Insurers are also capping AI-related losses within cybersecurity policies which affects their coverage even further.<\/li>\n<li><strong>New Market Emerging:<\/strong> To address this gap, specialized firms like Munich Re and startups including Corgi, Armilla, Mayflower Specialty, and Embroker have begun offering standalone AI liability policies with various coverage limits and premiums.<\/li>\n<li><strong>Paradox Within the Industry:<\/strong> Ironically, major insurers are using AI technology internally for claims processing and underwriting while simultaneously creating policies that do not cover AI-related risks.<\/li>\n<li><strong>Advice for Businesses:<\/strong> Businesses are advised to review their policies for existing endorsements, consider additional AI-specific coverage options, improve their internal AI governance, conduct bias testing, and disclose AI usage to minimize exposure.<\/li>\n<\/ul>\n<p>Insurers recognize the unknown financial impact of AI, implying businesses deploying AI technology bear the current risks until insurers develop a pricing model for this emerging risk.<\/p>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Big Insurance Backs Away From AI Risk and Startups Rush In https:\/\/www.pymnts.com\/artificial-intelligence-2\/2026\/big-insurance-backs-away-from-ai-risk-and-startups-rush-in\/ Publish Date: 2026-05-01&#8230;<\/p>\n","protected":false},"author":1,"featured_media":207864,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.pymnts.com\/wp-content\/uploads\/2026\/05\/AI-insurance-risks.jpeg","fifu_image_alt":"","footnotes":""},"categories":[14],"tags":[],"class_list":["post-207863","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artificial-intelligence"],"_links":{"self":[{"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/207863"}],"collection":[{"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/comments?post=207863"}],"version-history":[{"count":1,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/207863\/revisions"}],"predecessor-version":[{"id":207865,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/207863\/revisions\/207865"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/media\/207864"}],"wp:attachment":[{"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/media?parent=207863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/categories?post=207863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/tags?post=207863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}