Insurers Scale Back AI Coverage Amid Fears of Billion-Dollar Claims

The rapid integration of AI systems into everyday business operations has left many insurers wondering: Who pays when an AI makes a mistake?

The insurance industry is tapping the brakes on artificial intelligence amid growing concerns about the scale of potential liabilities.

Three major US insurers, AIG, Great American, and WR Berkley, are now seeking regulatory approval to restrict their exposure to claims arising from AI agents and chatbots, marking one of the strongest indicators yet that the sector is bracing for an unprecedented level of risk.

Growing unease in the risk market

The rapid integration of AI systems into everyday business operations has left many insurers wondering: Who pays when an AI makes a mistake? The list of potential AI missteps continues to expand as more businesses integrate it into their ...