2026-11-12 · Source: Insurance Journal
Summary in 3 Points • Marsh & McLennan urges US regulators to ease capital requirements for banks using credit risk insurance. • Demand for hedging AI-related finance has surged, prompting banks to seek innovative risk management tools. • Global spending on data centers is projected to reach $6.7 trillion by 2030, increasing the need for effective financing solutions. --- Marsh & McLennan Cos. is advocating for US regulators to allow banks to hold less capital against loans covered by credit risk insurance. This change would enable banks to better manage their exposure to AI-related finance, which has seen a significant increase in demand. Currently, US lenders have been hesitant to use insurance for capital relief, relying instead on other financial instruments. As global spending on data centers is expected to reach $6.7 trillion by 2030, the need for effective risk management tools is becoming critical for lenders. Marsh is actively involved in arranging credit risk insurance for project finance, particularly in the data center sector. Despite the challenges, US banks are increasingly recognising the value of credit risk insurance to mitigate exposure as AI-related lending continues to grow. The push for regulatory changes around credit risk insurance could influence how US banks manage capital, impacting their approach to AI-related lending.
The push for regulatory changes around credit risk insurance could influence how US banks manage capital, impacting their approach to AI-related lending.