Specialty re/insurer Advanced Technology Assurance Limited (ATA) has launched new insurance instruments worth up to $750 million to support the global expansion of artificial intelligence infrastructure, an industry expected to attract nearly $7 trillion in investment by 2030.
ATA’s global data center and AI infrastructure insurance facility is backed by a consortium of more than 10 leading reinsurers and Lloyd’s of London, including Arch Insurance International, Munich Re Specialty and SCOR. The combined capabilities enable ATA to offer a single policy designed to manage the risks associated with large-scale and complex AI projects.
“We are creating an ecosystem approach,” commented ATA President Michael Coles. “We are bringing the capabilities and expertise of the world’s top re/insurers to one table to create a dedicated policy that aggregates the limits of legacy and new coverage. Our goal is to work closely with our re/insurer partners to build the teams, meaningful product line scale, new specialty coverage, and risk engineering that keep pace with the dynamism of these multi-billion dollar programs.”
The facility is designed to consolidate multiple types of insurance under a single policy, including property, computer hardware, cargo and transportation, cyber and technology E&O, environmental liability and terrorism insurance. Previously, developers, tenants or chip providers involved in hyperscale data centers had to arrange several separate policies, which could lead to coverage gaps or disputes among insurers during complex claims processes.
Alistair Blundy, CEO and Chief Underwriter at ATA, added: “Our new ATA policy has been developed for the entire AI industry, from investors and lenders to tenants, chip integrators and data center operators. “We want to be the insurance broker for all AI stakeholders, providing them with clear leading solutions.”
Clyde & Co provided legal support for the facility. Chris Cowland, legal director and head of London wording at Clyde & Co., said: “We are delighted to have advised ATA on the development of policy wording that integrates multiple insurance lines. Through our insurance business, Clyde & Co has a global reach and a strong track record of advising on legal, claims and regulatory issues across all lines of insurance. We are delighted to use our insurance experience to help support the data center and AI infrastructure industries.”
Recognizing the need for professional, integrated solutions, leading insurance companies are supporting the facility. “We are excited to lead hardware, cargo and terrorism insurance for ATA facilities,” noted James Croome, director of fine art, coins and cargo at Arch Insurance International. “This facility provides a single point of access to world-class capabilities, leading solutions and new standards in the market.”
Tom Allen, chief operating officer of Syndicate Munich Re Specialty Global Markets Network, added: “We are bringing Munich Re’s leading technical expertise and financial strength into this innovative offering to power cyber and technology E&O insurance. In this new facility, together we will mobilize insurance capabilities and scale to de-risk critical projects, provide relevant insurance solutions to our customers and power the next generation of artificial intelligence infrastructure.”
Emma Bartolo, head of global EIL division at SCOR Business Solutions, said: “We are delighted to be part of this pioneering facility, which takes a holistic approach to covering the AI infrastructure market and uses our environmental expertise to drive and protect responsible innovation.”
Rachel Turk, head of market performance at Lloyd’s of London, added: “I’m delighted to see Lloyd’s at the forefront of supporting this ground-breaking facility. This is a powerful example of how Lloyd’s of London’s syndicated organizations bring together world-class capabilities to make it easier to build meaningful line scale and deliver innovative solutions to complex needs.”
