New York and London, 21st October 2024 – AXA XL has announced new insurance coverage that offers protection to organizations from emerging risks of all Generative AI (Gen AI) models.
Currently, this coverage can be obtained as an amendment to pre-existing policies while it also protects businesses from data poisoning, intellectual property theft, and adhering to regulatory parameters especially that of the AI Act, EU.
“Looking to improve efficiency, improve customer experience, and so much more, more companies are investing in developing their own Generative AI to unlock new possibilities.
AXA XL Global Chief Underwriting Officer, Cyber, Michael Colao explains,
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.”
This new amendment seeks to address threats such as data misuse and misconduct and any regulatory liabilities that come with developing such models, such that companies do not risk a lot financially when developing AI models.
“We’ve taken broker commentary and designed a risk management technique that eliminates ambiguity in our coverage,” Colao said.
It is now offered in the U.S., Canada, the UK, Europe and Asia.
This effort also illustrates the growing cognizance of the unique vulnerabilities that Gen AI technology is capable of causing all the while having the ability to alter industries for the better.
In the present times, owing to the revolutions in Generative AI, businesses can gain more confidence in their funding, and concerns about potential failures have been taken care.
Through its new offering, AXA XL intends to remove barriers to innovation while also ensuring the responsible use of technology within the legal frameworks. By focusing on these emerging risks, AXA XL is positioning itself as a leader in cyber insurance in this ever-changing landscape, helping its clients to protect their technological development.
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