AXA XL introduces new cyber insurance for emerging Gen AI risks

AXA XL, the property & casualty (P&C) and specialty risk division of global insurer AXA, has introduced a new cyber insurance policy that extends coverage to help businesses manage risks associated with developing their own Generative AI (Gen AI) models.

Michael Colao, Global Chief Underwriting Officer, Cyber at AXA XL, stated, “Looking to improve efficiency, improve customer experience, and so much more, more companies are investing in developing their own Generative AI to unlock new possibilities. They must also be mindful of the risks that come with it, such as potential misuse, compliance issues, and the need for robust safeguards to ensure responsible and secure deployment.”

This new coverage specifically addresses risks related to Gen AI, such as the manipulation or contamination of training data used to develop machine learning models. Attackers can compromise the performance and accuracy of AI systems through the introduction of misleading or false information into the training data, resulting in costly data cleanup and litigation risks.

The policy also covers risks associated with failing to secure the necessary permissions for using specific items or data, such as copyrighted materials, software licences, and intellectual property in machine learning.

Additionally, it addresses liability arising from the European Union’s AI Act, which regulates the development and deployment of AI systems.

Colao added, “Our clients sought help navigating this unchartered territory and, with our brokers’ input and feedback, we’re pleased to develop an innovative, market-leading insurance solution to provide clear coverage for these risks and help them leverage GenAI without the worry of potential risks and extra costs that could hinder their efforts.”

The new Gen AI coverage is available as an endorsement to AXA XL’s CyberRiskConnect policy and is accessible throughout the U.S and Canada, U.K. and Lloyd’s market, and Europe and Asia.

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