2026-10-22 · Source: InsuranceAsia News
Summary in 3 Points • Insurers oppose broad exclusions in (re)insurance contracts related to AI deployment, according to broker Marsh. • Battery energy storage system pricing has dropped significantly, but thermal runaway remains a concern for insurers. • Reinsurers are under pressure to enhance terms and innovate structures amid intense competition at 1.1 renewals. --- Insurers are resisting the introduction of broad exclusions in (re)insurance contracts linked to the rapid deployment of artificial intelligence, as highlighted by broker Marsh. This pushback reflects a growing concern among insurers about the implications of such exclusions on coverage and risk management. Meanwhile, the pricing of battery energy storage systems has seen a sharp decline, although the risk of thermal runaway continues to pose challenges for insurers in this sector. In the reinsurance market, there is increasing pressure for reinsurers to improve terms and offer innovative structures, particularly as they approach the 1.1 renewals. This competitive environment is prompting a reevaluation of traditional approaches, as firms seek to adapt to evolving market demands. Additionally, the aviation sector is grappling with escalating war risks, particularly following recent attacks that have raised concerns about operational safety and insurance coverage. Insurers are resisting broad exclusions related to AI deployment, which could impact coverage in delegated authority arrangements and claims processes.
Insurers are resisting broad exclusions related to AI deployment, which could impact coverage in delegated authority arrangements and claims processes.