Rise in AI Corporate Risks Creates Insurance Opportunities

The growing use of AI is sparking worries that existing insurance policies might not be enough to cover businesses when the technology goes wrong.

A smattering of insurance products are emerging to allay that risk. Among them is Armilla AI, a Toronto-based company which on Wednesday is launching an AI liability insurance product backed by underwriters at the global insurance syndicate Lloyd’s. Other insurance policies with AI coverage are offered by companies such as Vouch and AXA XL.

Armilla AI’s offering taps into a growing marketplace with 78% of companies in 2024 saying that they are using artificial intelligence, a ...