Specialist insurance company Mosaic Insurance has partnered with international reinsurer Munich Re to offer new insurance products tailored to the needs of artificial intelligence providers.
The program leverages Munich Re’s aiSure platform, a recognized tool for assessing AI risks, to cover risks that are typically not addressed by traditional cyber or technology errors and omissions (E&O) policies.
The collaboration between Mosaic and aiSure provides initial coverage of up to EUR/USD/CAD 15 million to protect global AI developers and suppliers from financial losses resulting from defined AI performance failures.
Mosaic is responsible for underwriting and marketing the product through cyber experts across its international network, while Munich Re provides technical expertise, analysis and insights based on its extensive experience in AI risks.
“We are delighted to be partnering with Munich Re on this groundbreaking initiative,” commented Dennis Bertram, head of AI underwriting at Mosaic. “aiSure provided the technical knowledge on which we built a practical and scalable solution through specialty underwriting. Our cyber underwriters are now bringing it to market so that brokers and clients around the world can solve one of the most important business questions in artificial intelligence: What happens when the technology fails to deliver?”
Research shows that while business leaders are enthusiastic about leveraging AI, many are cautious due to uncertainty about performance risks and potential rewards. Mosaic and aiSure solutions address this problem by providing protection when AI models fail to meet clearly defined performance standards, giving customers confidence and enabling vendors to support their technology.
Artificial intelligence offers significant opportunities for efficiency and growth, but its adoption also brings risks that are often unforeseen and difficult to quantify. The coverage of Mosaic and aiSure enables providers and users of AI to adopt technology with greater certainty by ensuring that errors or hallucinations do not occur in AI and generative AI models.
Michael von Gablenz, Head of Insurance AI at Munich Re, said: “In this joint offering with Mosaic, we are now bringing aiSure’s long-standing AI underwriting expertise to the reinsurance space. I am confident that our collaborative approach will enable us to support more companies on their journey to AI implementation.”
aiSure is designed to reflect the probabilistic nature of artificial intelligence, where even well-structured models can produce incorrect outputs. Its parameter-like structure allows claims to be resolved quickly based on measurable performance data without the need for lengthy investigations.
“It’s not about system uptime or network events, it’s about whether the AI’s output is accurate,” Bertram added. “Our underwriting focuses on the AI model itself, what it does, how its output is used, rather than the insured’s respective industry. This opens the product up to any company commercializing AI, from retailers licensing fraud detection models to manufacturers selling quality control solutions.”
This coverage complements existing network and technology E&O policies, which continue to address operational risks such as outages, data breaches and negligent deployments.
The partnership supports Mosaic’s broader strategy to promote responsible AI adoption and showcase innovation in underwriting emerging risks. Mosaic’s cross-functional AI working group, led by Bertram, is responsible for managing the use of AI in underwriting and claims, developing standards for responsible application, coordinating pilot programs and monitoring how AI is changing clients’ risk landscape.
Cyber (including technical E&O) is one of eight specialty lines underwritten by Mosaic, along with environmental liability, transactional liability, financial institutions, political risk, political violence, professional liability and professional casualty.
