While AI adoption is building momentum across industries, as well as in everyday life, so does the potential for AI-associated risks. Autonomous vehicles, for example, can bring responsibility into question in the event of an auto accident. Cybersecurity threats, copyright infringements, algorithmic bias or inaccuracy and AI-generated content – which can be used to spread misinformation or commit fraud – are increasingly commonplace, leading to serious questions of liability and coverage.
Insurers and reinsurers are starting to address these concerns. Insurance premiums that cover AI risks are expected to rise significantly, according to analysis from the Deloitte Center for Financial Services, increasing at a compound annual rate of 80% per year. At this rate, global AI insurance premiums will reach about $4.8 billion by 2032.
Munich Re, for example, offers an insurance product that covers issues like AI model discrimination, IP infringement, hallucinations and regulatory fines, all of which can result in financial losses. AXA XL also deployed a new endorsement to its cyber policy that addresses the development and deployment of GenAI models, including data poisoning, usage rights infringements and GenAI regulatory violations. In May 2025, Google Cloud announced a partnership with cyber insurers Beazley, Chubb and Munich Re to offer its Risk Protection Program, which includes affirmative AI insurance coverage for Google-related AI workloads and quantum exploit coverage against quantum computing attacks.
According to findings from the World Economic Forum's Global Risks Report 2025, adverse outcomes of AI technologies ranked sixth out of ten listed global risks within a two-year outlook. The report shares that though the technological risks ranked low, "complacency around the risks of such technologies should be avoided given the fast-paced nature of change in the field of AI and its increasing ubiquity." This category of adverse outcomes from AI tech is also one of the most rapidly growing risks, climbing up the most in the report's 10-year outlook risk ranking list.
