Coalition expands cyber policies with affirmative AI endorsement

Update to provide clarity around AI incidents

Coalition expands cyber policies with affirmative AI endorsement


By Terry Gangcuangco

Active cyber insurance pioneer Coalition has added an affirmative artificial intelligence (AI) endorsement to its US surplus and Canada cyber insurance policies.

The endorsement broadens the scope of what constitutes a security failure or data breach, now encompassing incidents triggered by artificial intelligence, effectively identifying AI as a potential cause for security failures in computer systems.

Additionally, it modifies the conditions under which funds transfer fraud (FTF) can be initiated, now including fraudulent requests made using deepfake technology or any AI-driven mechanism.

 “As threat actors adapt their attack strategies by incorporating AI, Coalition’s affirmative AI endorsement introduces important clarity around how incidents are covered when AI is involved,” said Shawn Ram, head of insurance at Coalition.

“Coalition is at the forefront of evolving cyber insurance coverage to address this ever-changing risk ecosystem. While FTF and data breach coverages have always been cornerstones of our policies, this new endorsement gives brokers confidence that they’re offering their clients the most comprehensive cyber coverage – and provides policyholders with peace of mind.”

Tiago Henriques, Coalition’s research head, shared his perspective on AI’s dual-edged impact on cybersecurity: “AI is revolutionizing and supercharging technology worldwide, and while it’s emboldening attackers to create more personalized attacks en masse, we continue to believe AI has huge potential to empower defenders and strengthen cyber and insurance protections.

“At Coalition, we recognize AI technologies are an important part of the future of technology and digital risk, and this is a big step in pushing forward our insurance product to keep pace with the advancements happening in the digital-first world.”

The artificial intelligence endorsement by Coalition is now available for integration into any US surplus and Canada cyber insurance policy.

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