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Surplus lines insurers see rising demand from tech-driven risks
The Insurance Journal notes surplus lines capacity is increasingly positioned for exposures tied to generative AI, autonomous vehicles, and life science risks.
Surplus lines insurers are becoming a more important source of coverage as technology reshapes existing industries and helps create new ones, making complex risks harder to place with standard carriers, according to Insurance Journal.
The publication says advances in technology, growth in e-commerce, and the expanding global economy have increased demand for specialized insurance products, particularly for coverages that are not readily available through admitted insurers.
Insurance Journal highlights three areas where tech change is driving coverage needs: artificial intelligence, autonomous vehicles, and life science risks. It cites potential AI exposure categories including biased recommendations, defective outputs, intellectual property infringement, cybersecurity concerns, reputational damage, privacy and data breaches tied to information used in AI models, and falling short of stated regulatory requirements.
The outlet also points to a challenge for underwriting generative AI risk: many companies are still in early stages of use, and there is limited claims data to analyze, meaning the exposure may remain undefined long enough to affect how it gets priced and monitored. It adds that admitted insurers are focused on implementing AI exclusion approaches, reflecting how insurance coverage is adapting to these emerging threats.