News Asia06 Oct 2025

Global:Nine in 10 businesses show interest in insurance cover for Gen AI risks

| 06 Oct 2025

Businesses worldwide are rapidly embedding Generative AI (Gen AI) into products, services and internal operations.

A new 48-page report Gen AI Risks for Businesses: Exploring the role for insurance published by Geneva Association (GA) based on a survey reveals that while this brings significant opportunities for innovation and efficiency, it also introduces new and complex risks – from defective outputs and copyright infringement to cyber security vulnerabilities.

The report findings reveal that 71% of surveyed businesses have implemented Gen AI in at least one function and over 90% of businesses show interest in insurance cover for Gen AI risks, while two thirds would pay at least 10% higher premiums for such coverage.

The survey was conducted by GA among 600 corporate insurance decision-makers across China, France, Germany, Japan, the UK, and the US to understand how business insurance customers perceive Gen AI risks and their demand for related insurance solutions.

The report presents the survey findings, assesses the insurability of emerging Gen AI risks, and explores available insurance solutions.

The report findings include:
• Top Gen AI risks: Cyber security concerns ranked highest, followed by third-party liabilities and operational disruption.
• Market challenges: Difficulties in verifying Gen AI risks and potential for large losses raise insurability concerns, echoing the challenges of cyber insurance.
• Industry implications: Insurers are experimenting with both policy extensions and  
standalone AI products, but modular approaches and cross-sector partnerships will be critical to closing protection gaps.

GA managing director Jad Ariss said, “Few technologies in history have spread as rapidly as Gen AI, yet its risks are complex and poorly understood. Insurers have a unique role to play in ensuring that Gen AI adoption is safe and sustainable. The findings also underline the urgency for insurers, regulators, and technology providers to work together in developing frameworks that can safeguard businesses while enabling innovation to flourish across economies.”

GA director digital technologies and lead author of the report Ruo (Alex) Jia said, “Generative AI amplifies some existing risks and creates entirely new categories of exposure that extend beyond traditional insurance boundaries. 

“Our survey shows strong demand for risk transfer solutions, especially from firms that have already experienced severe Gen AI failures, but it also highlights insurability challenges. The task for insurers now is to define clear risk boundaries and pilot modular coverage models that can adapt to this evolving technology.”

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