To meet customer demand, specialist insurance provider CFC has launched a refreshed program to embed affirmative action artificial intelligence (AI) insurance into its portfolio.
By implementing clear AI-related language across seven key policies, the rollout provides clients with certainty in dealing with AI-related risks, moving away from reliance on implicit or silent coverage.
“Artificial intelligence is now integrated into day-to-day business operations across all industries and is rapidly becoming part of all commercial activity, meaning it interacts with the same risks that insurers have always underwritten,” said Nick Line, chief underwriting officer at CFC. “Our focus is on providing clarity to clients and brokers in our policies. We believe there is value in being clear about how AI will be treated, rather than relying on implicit or silent coverage.”
These updates are designed to eliminate ambiguity and promote more consistent claim outcomes. Additionally, they give brokers greater confidence in advising clients in the changing risk landscape.
The CFC highlighted that this also reflects the increasing demand from policyholders for transparency and certainty as the adoption of artificial intelligence accelerates.
The program includes updates to a range of CFC’s core products, including Technical Errors and Omissions (Tech E&O), Professional Responsibility (E&O), eHealth, Intellectual Property (IP), Stewardship Liability, Media and Cyber Proactive Response (CPR). CFC will address new AI problems such as model hallucinations, AI-generated content, and model drift.
The CFC aims to provide businesses with a more reliable and broader framework to manage the next stage of technological change by integrating clear AI protections into their existing product ranges.
“Essentially, AI acts as an accelerator for existing risks, reinforcing the need to embed AI considerations into our existing products,” Lane said. “While much of the market discussion around AI has focused on cyber insurance, we have taken a broader approach, integrating coverage across multiple products, reflecting the true breadth of its impact on business risk.
“As AI continues to evolve, it’s understandable that parts of the market are focusing on how to manage uncertainty, including through exclusions. We’re taking the time to understand how AI risk works in practice and clearly reflect this in our cover. Ultimately, it’s about aligning insurance with the real world. AI is reshaping the way businesses operate and our role is to ensure insurance products evolve in tandem.”
