AXA XL introduces insurance coverage for Gen AI risks
AXA XL introduces insurance coverage for Gen AI risks | Insurance Business Canada
Cyber
AXA XL introduces insurance coverage for Gen AI risks
It addresses issues like data poisoning, copyright issues, and regulatory violations
Cyber
By
Camille Joyce Lisay
AXA XL has launched cyber insurance coverage that protects businesses developing their own Generative AI (Gen AI) models. This new endorsement expands the company’s global cyber insurance portfolio to address emerging technological risks.
The endorsement addresses three major risks Gen AI poses for current business. First, data poisoning risks mainly involve attackers manipulating training data in a bid to compromise the performance of the AI system.
The second coverage addresses usage rights associated with infringement where businesses cannot secure proper permissions over copyrighted materials or intellectual property in machine learning.
The third coverage extends to violations associated with regulatory standards, particularly in compliance with the European Union’s AI Act.
Michael Colao, the global chief underwriting officer for cyber at AXA XL, is well aware of the new wave of companies investing in Generative AI to increase efficiency and customer experience.
“They must also be mindful of the risks that come with it, such as potential misuse, compliance issues, and the need for robust safeguards to ensure responsible and secure deployment,” he shared.
AXA XL now provides the specialized Gen AI coverage as an add-on for its CyberRiskConnect policy within the US, Canada, the UK and Lloyd’s market, Europe, and Asia. AXA offers a full range of cyber insurance products and services, including incident investigation, liability protection, and cybersecurity risk management.
How do you think this new insurance coverage might impact the businesses’ AI initiatives? Share your thoughts below.
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