Beazley planning to determine risk appetite for AI
Reprints
Beazley PLC is reviewing its portfolio to determine its appetite for writing risks related to artificial intelligence and its potential exposure, Bob Quane, the specialty insurer’s chief underwriting officer, said Thursday.
The London-based specialty insurer is going through its products to understand what exposure it can have related to AI, Mr. Quane said in an interview with Business Insurance in New York.
“We’ll eventually move to a risk disaster scenario related to AI, then create risk appetite related to this. Maybe it’ll be called a peril,” he said.
Beazley may have to consider exclusions or not writing certain things if AI gets to the point where it’s beyond the insurer’s risk appetite, Mr. Quane said.
“That’s a journey. An AI definition is not even established at this moment,” he said.
Insurance policies generally do not exclude AI currently, he said. “We just have to review the claim and understand it,” Mr. Quane said.
In employment practices liability, there are concerns as some businesses rely on AI to make hiring decisions, he said.
“There are all kinds of things that we’re looking through to see what our potential exposure by product is, understand that, prioritize where we think it’s going to be the biggest issue in terms of frequency and severity of claims and keep watching the trend,” Mr. Quane said.
