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HomeInsuranceIndustry & DealsAon launches AI Risk Diagnostic as insurers tighten co…

Aon launches AI Risk Diagnostic as insurers tighten coverage rules

The new enterprise assessment scores AI governance maturity and maps risk exposure, with Aon citing coverage denials at renewal for firms lacking documented AI oversight frameworks.

Aon has launched an enterprise AI Risk Diagnostic designed to help organizations meet rising expectations for AI governance as the professional liability insurance market moves away from unspoken assumptions about AI controls, Insurance Business reports. The tool evaluates AI governance maturity and risk exposure, using two analytical lenses, an AI Maturity Analysis and an AI Risk Taxonomy Analysis. Aon said the assessment checks governance and lifecycle management, along with processes and controls, then flags areas where AI may create new risks or intensify existing exposures across the organization.

Aon said the diagnostic is built to align with recognized frameworks, including ISO standards, the EU Artificial Intelligence Act, and the NIST AI Risk Management Framework. Aon also said boards and regulators now expect greater visibility into how AI is deployed, and that clients receive reporting with overall maturity assessment, identified governance gaps, and priority actions, plus visual dashboards, heat maps, and risk exposure mapping.

Insurance Business also noted that Willis research found firms without documented AI governance frameworks face coverage denials at renewal. It added that carriers have responded by requiring affirmative warranties or applying absolute exclusions, with the risk picture spanning multiple insurance lines including cyber and professional indemnity, as well as errors and omissions.

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