2026-07-30 · Source: Insurance News Australia
Summary in 3 Points • Insurers implement AI exclusions • Verisk releases endorsement templates • AI exclusions appear in liability policies --- Commercial insurers are taking decisive steps to address **silent AI risks** by transitioning from mere discussions to the actual implementation of **artificial intelligence exclusions** in their contracts. This significant move follows the release of a set of **standardised endorsement templates** by the industry analytics group, Verisk. These templates are designed to provide a consistent framework for insurers to manage the potential liabilities associated with AI technologies, marking a pivotal shift in how the industry approaches emerging technological risks. For the London Insurance Market, particularly in the realm of commercial general liability, this development signifies a proactive approach to managing the uncertainties posed by AI. By adopting Verisk's **standardised endorsement templates**, insurers, including those operating within Lloyd's, can ensure that their policies are aligned with industry best practices, thereby reducing the potential for unforeseen liabilities. This move is expected to enhance the market's ability to underwrite AI-related risks more effectively, providing greater clarity and confidence to both insurers and policyholders. Underwriters, brokers, and risk managers must now consider the implications of these new **AI exclusions** on their existing and future contracts. The adoption of Verisk's templates will require careful analysis to ensure that coverage terms are clear and that clients are adequately informed about the scope of their policies. This shift also presents an opportunity for insurance professionals to engage with clients on the risks associated with AI, offering guidance and expertise to navigate these changes effectively.
For the London Insurance Market, particularly in the realm of commercial general liability, this development signifies a proactive approach to managing the uncertainties posed by AI. By adopting Verisk's standardised endorsement templates, insurers, including those operating within Lloyd's, can ensure that their policies are aligned with industry best practices, thereby reducing the potential for unforeseen liabilities. This move is expected to enhance the market's ability to underwrite AI-related risks more effectively, providing greater clarity and confidence to both insurers and policyholders.