Major Insurers Seek to Exclude AI Liability from Corporate Policies

A developing crisis in the corporate insurance market accelerated, as reports confirmed that major carriers, including AIG and WR Berkley, have filed requests with U.S. regulators to exclude artificial intelligence liability from standard commercial policies. The move signals a loss of confidence by the risk transfer industry in its ability to underwrite the unpredictable behaviors of generative AI.

The "Absolute" Exclusion

WR Berkley is seeking approval for an "Absolute AI Exclusion," which would deny coverage for any claim arising from the "actual or alleged use" of AI technologies. * Systemic Risk: Insurers are concerned about "systemic accumulation"—a scenario where …