What insurers ask about your AI

Slaughter and May reports underwriters moving from asking whether you use AI to asking for evidence of how you govern it.

• Do you have a written AI governance policy?Broker or adviser Raised by Aon, Browne Jacobson, Traverse Legal
• Is a named senior person or committee accountable for AI risk?Broker or adviser Raised by Aon, Traverse Legal
• Is your AI governance aligned with NIST AI RMF, ISO/IEC 42001 or similar, and can you show it working in practice?Insurer source Raised by Aon, Armilla AI
• Do you have an AI acceptable-use policy covering approved tools, data staff must not enter, and how output is reviewed?Insurer source Raised by Relm Insurance, Aon, Slaughter and May
• Are staff trained on when to use AI and on risks such as hallucination and bias?Broker or adviser Raised by Aon, Slaughter and May
• How does your board oversee AI risk?Broker or adviser Raised by Gallagher, Woodruff Sawyer, summarized by TheCorporateCounsel.net
• What do you tell investors and customers about your use of AI?Broker or adviser Raised by Gallagher, Woodruff Sawyer, summarized by TheCorporateCounsel.net

Westfield Pro has said the key underwriting question is how you use AI, not whether you use it.

• Where in the business do you use AI, and what kinds: language models, computer vision, predictive models or agents?Insurer source Raised by Browne Jacobson, Armilla AI, Relm Insurance, WHINS Insurance Agency, Marsh, interviewed by DLA Piper
• Do you keep an inventory of every AI system in production?Broker or adviser Raised by Aon, Traverse Legal
• Do you build AI in-house, or license it from third-party providers?Broker or adviser Raised by Browne Jacobson, Marsh, interviewed by DLA Piper
• How do you plan to use AI in the future, beyond what you do today?Broker or adviser Raised by Indemnity (UK broker)
• How autonomous is the AI: does it recommend, or does it act on its own?Insurer source Raised by Relm Insurance, WHINS Insurance Agency
• Does the AI support high-stakes decisions in areas such as finance, healthcare, legal or hiring, and which industries do your customers work in?Insurer source Raised by Relm Insurance, Latent Insurance, SeedPod Cyber, Traverse Legal
• Is AI output used only inside the business, or passed to customers?Broker or adviser Raised by Indemnity (UK broker)

Insurers that cover AI performance price from test results: Munich Re agrees performance metrics before assessing a model, and Armilla finds AI most insurable when its error rate is known and controlled.

• How do you validate a model before it goes live?Insurer source Raised by Relm Insurance, Munich Re, Latent Insurance, SeedPod Cyber
• Do you test AI that affects customers for bias and accuracy?Broker or adviser Raised by Traverse Legal, Browne Jacobson, SeedPod Cyber
• What error rates has the model shown in testing and in real use?Insurer source Raised by Munich Re, Armilla AI
• Which performance measures can you agree with an insurer and back with evidence?Insurer source Raised by Munich Re, Armilla AI
• What data feeds the model, and how do you manage its quality after launch?Insurer source Raised by Munich Re
• How do you monitor models in production, and do you keep logs for review?Insurer source Raised by Relm Insurance, Browne Jacobson, Munich Re
• When performance drops, how often do you retrain, and how do you check the retrained model?Insurer source Raised by Munich Re
• What is the model’s architecture and data pipeline, and why were they chosen?Insurer source Raised by Munich Re

Human review of AI output is the control raised most often across the insurer, broker and law-firm sources we read.

• Who reviews AI output or decisions before they reach a customer?Insurer source Raised by Aon, Relm Insurance, Latent Insurance, Traverse Legal, Slaughter and May, Indemnity (UK broker), Westfield Specialty, quoted in Risk & Insurance
• For AI agents, how much can the agent do on its own, and do people approve irreversible actions first?Insurer source Raised by Aon, Relm Insurance
• Is the data going into the AI checked by a person for accuracy?Broker or adviser Raised by Indemnity (UK broker)

Cyber insurers want to know what data goes into AI tools and who can see it.

• What data do you send to third-party AI providers?Broker or adviser Raised by WHINS Insurance Agency, Aon, Browne Jacobson
• Is customer or personal data used to train models?Broker or adviser Raised by Browne Jacobson
• Have you updated your privacy and security policies for AI use?Broker or adviser Raised by Browne Jacobson
• Who else can access the data you put into AI tools?Insurer source Raised by Cowbell, quoted in Insurance Business

Training data provenance and AI-made content drive intellectual property claims, and at least one application has asked about AI content directly.

• Where did your training data come from (licensed, scraped, proprietary or synthetic), and do you hold licences for it?Broker or adviser Raised by Latent Insurance
• Do you use generative AI to produce original content, including advertising or branding?Seen on an application Raised by A Philadelphia Indemnity application, as reported by Hunton Andrews Kurth
• Have you assessed the risk of IP claims over training data or AI output?Broker or adviser Raised by Browne Jacobson

What you promise customers, and what your AI suppliers promise you, decides how much liability stays with you.

• What due diligence did you do on your third-party AI vendors?Broker or adviser Raised by Browne Jacobson, Aon, Traverse Legal
• What do your contracts with AI suppliers say about liability and indemnities?Broker or adviser Raised by Browne Jacobson, Aon
• Which third-party models and open-source components does your product depend on?Broker or adviser Raised by WHINS Insurance Agency, SeedPod Cyber
• What do your customer contracts promise about AI: warranties, accuracy, liability caps, indemnities or insurance?Insurer source Raised by Relm Insurance, Armilla AI, WHINS Insurance Agency

Armilla’s broker page asks for details of any previous AI-related incidents.

• Do you have an AI incident response process?Insurer source Raised by Relm Insurance, Aon, Traverse Legal, Armilla AI
• Do you log AI incidents with their cause, fix and impact on clients?Broker or adviser Raised by Aon
• Have you had AI-related incidents? Give dates, whether an insurer was told, and what you fixed.Insurer source Raised by Armilla AI
• What is your loss history, and are any disputes open?Broker or adviser Raised by WHINS Insurance Agency

QBE says insurers need to understand how organizations use AI and which controls matter.

• Have your AI systems been evaluated and red-teamed?Insurer source Raised by Relm Insurance
• How do you protect data when using third-party AI services?Broker or adviser Raised by Browne Jacobson
• Do you use cloud AI services with API keys shared across teams, or without monitoring for unusual use?Insurer source Raised by QBE
• What happens if one of your AI systems is compromised?Insurer source Raised by QBE

New state AI laws add obligations, and with them regulatory exposure.

• Do you know which AI laws apply to you, such as the Colorado AI Act or California’s rules on automated decisions?Broker or adviser Raised by Traverse Legal
• How will you adapt your AI systems as rules change?Broker or adviser Raised by Browne Jacobson

How much of your business depends on AI shapes the cover and limits you need.

• What share of your revenue comes from AI software or services?Seen on an application Raised by A Philadelphia Indemnity application, as reported by Hunton Andrews Kurth
• What limits do you need, given contract sizes, worst-case customer losses and contract requirements, and what retroactive date?Insurer source Raised by Relm Insurance, WHINS Insurance Agency