Specialist insurer CFC said it is responding to customer demand with updates to embed affirmative AI coverage within its portfolio.
The rollout introduces clear, explicit AI-related language to eliminate ambiguity across seven key policies to ensure customers have certainty around how AI-related exposures are treated rather than relying on implied or silent coverage.
The program includes updates across a range of CFC’s core products, including technology errors & omissions (Tech E&O), professional liability (E&O), eHealth, intellectual property (IP), management liability, media, and cyber proactive response (CPR). CFC said it will be addressing novel AI exposures like model hallucination, AI generated content and model drift.
“AI is now embedded in day-to-day business operations across all industries and is rapidly becoming part of all commercial activities, which means it interacts with the same risks that insurers have always covered,” said Nick Line, chief underwriting officer at CFC, in a statement. “Our focus has been on giving clients and brokers clarity within our policies. We see value in being explicit about how AI is treated.”
“As AI continues to evolve, parts of the market are understandably focused on how to manage uncertainty, including through exclusions,” Line added. We’ve taken the time to understand how AI risk operates in practice and reflected that explicitly in our coverage.”
Topics
InsurTech
Data Driven
Artificial Intelligence
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