Testudo launches AI insurance underwriting platform backed by Lloyd’s Lab

Lloyd’s of London-backed start-up Testudo, part of Lloyd’s Lab innovation accelerator, has launched a new data and technology platform aimed at underwriting insurance policies for risks associated with artificial intelligence.

Testudo, a company incubated through several legal and enterprise accelerators and supported by investors including LocalGlobe and Goldman Sachs partners, seeks to provide businesses with a way to better manage the legal and financial exposures tied to their AI deployments.

The platform compiles and analyses real-time data on AI-related litigation, regulatory developments, and incidents, offering a view into the evolving legal landscape around enterprise AI use.

By processing this information, Testudo aims to help insurers and businesses identify and quantify risks that might otherwise go unnoticed by traditional underwriting methods.

As part of Lloyd’s of London’s innovation Lab, where it is included in Cohort 14, Testudo plans to introduce new insurance products targeting enterprise clients by late 2025.

The increased adoption of generative AI technologies has corresponded with a rise in related lawsuits, according to Testudo’s data. The states with the highest volumes of AI litigation include California, Illinois, New York, Texas, and Delaware.

In the first quarter of 2025, generative AI lawsuits increased by 23 percent compared to the same period in 2024, while filings from January through April 2025 surged 81 percent year-over-year. Settlements in AI-related cases typically average around $4 million.

Despite much media focus on copyright and intellectual property disputes, the most common legal claims involve breach of contract, invasion of privacy, and misrepresentation. AI applications such as customer service, marketing content generation, and recommendation algorithms are key sources of litigation.

The data also shows an increasing number of insurers challenging AI-related claims in court, often due to policies not initially designed to cover these emerging risks.

Forecasts from Deloitte suggest that by 2032, the global market for AI-related insurance premiums could reach $4.7 billion annually.

Testudo’s underwriting method is notable for not requiring deep integration with a company’s AI systems or models, which makes it simpler for clients to adopt and allows for easier scaling.

Their platform supports risk scoring and reporting tools that assist risk managers, insurers, and brokers in detecting and evaluating potential liabilities.

Testudo has been developed with support from several accelerators, including law firms A&O Shearman’s Fuse, Jones Day’s FinAccelerate, and enterprise venture accelerator Plug and Play. It raised a pre-seed funding round in 2024 from investors such as LocalGlobe, A100x, Charlie Songhurst, and Goldman Sachs partners.

The company’s CEO, George Lewin-Smith, has a background in driving the adoption of emerging technologies within Goldman Sachs’ London and San Francisco offices. The founding team also has experience implementing AI systems and creating novel trading products at Goldman Sachs. Mark Titmarsh, Testudo’s Head of Insurance, brings more than ten years of expertise in underwriting and broking new and developing risk products.

While Testudo’s platform introduces a new approach to managing AI insurance risks, the challenge remains whether it can effectively navigate the rapidly shifting legal and technological environment surrounding artificial intelligence.

“We are proud to support Lloyd’s Lab start-up Testudo with bringing new data and a unique underwriting approach to AI liability insurance to the Lloyd’s market by connecting them with opportunities that address rapidly evolving risks, resulting in new premium generation and measurable operational efficiency gains across the market,” said Dawn Miller, Chief Commercial Officer and CEO Lloyd’s Americas.

“By nurturing innovation from concept to scale, we’re not just developing products – we’re building the future resilience of our industry and cementing Lloyd’s position as the world’s leading insurance marketplace.”

Lewin-Smith said: “Our technology and data allows us to understand, price and underwrite real-world artificial intelligence risks, accelerating enterprise adoption with insurance coverage.”

Titmarsh added: “Testudo bridges the specialist underwriting expertise of London with advanced technology from the Bay Area to insure the AI economy.”

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