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Several major insurance carriers have begun to back away from providing cybersecurity and other insurance to companies using AI to run internal processes, insiders say.
While there’s no standard response to customer use of AI in the insurance market,
many carriers are now quietly declining to write policies for claims related to AI-generated outputs in cybersecurity and errors and omissions (E&O) coverage, these observers say.
Other insurance carriers are jacking up pric…

Insurance carriers quietly back away from covering AI outputs
Many insurers have begun to exempt AI workloads from cybersecurity and errors and omissions coverage, saying their outputs are too unpredictable to write policies around.

Neural responses to unexpected stimulus repetitions and omissions in auditory cortex provide mixed evidence for predictive coding https://www.biorxiv.org/content/10.64898/2026.03.30.715297v1.full