Insurers Move to Exclude AI Liability Amid Fears of Systemic Risk

[bonk]

Top insurers including AIG and WR Berkley are asking U.S. regulators to let them exclude AI-related liabilities, calling modern AI systems too unpredictable to underwrite. Recent AI mishaps — from Google’s faulty summaries sparking a $110M lawsuit to fraudsters using deepfakes to steal $25M — have rattled the industry. Insurers say the real danger isn’t a single failure but a widespread AI error triggering thousands of claims at once.

[Nahid Hossen]

Insurance companies always react early to emerging risks. ️

[Abdul Khan]

If AI liability isn’t defined properly, this trend will spread quickly.