The technology sector is evolving at a rapid pace, driven by constant innovation and heavy investment. While these advances open new opportunities, they also create complex risks and challenges for businesses - and for brokers tasked with managing these emerging exposures.
Adam Atkins (pictured), head of technology underwriting at Hiscox UK, pointed to artificial intelligence (AI) as the key technology reshaping the landscape. “In January, the government launched the AI action plan, where they made it really clear that AI is going to be the way forward for the UK… I think that's going to shape the technology sector, but much wider as well, because there's going to be far more businesses now wanting the investment so that they can build AI, they can use AI, they can advise on AI,” he said.
This growing reliance on AI means businesses will need insurance tailored specifically to cover its usage. Atkins explained: “Businesses are going to need to get insurance to cover AI as a tool, AI as something that's been built as a service, AI as a service...”
Emerging technologies don’t stop at AI. Green technology is also driving change. “The world needs to become more green,” he said. “You think about solar panels, there needs to be technology that knows when batteries are full and batteries need to be emptied and fed to the grid, where they need to be sold,” he said. According to GlobeNewswire, the green technology and sustainability market is projected to grow from “$25.47 billion in 2025 to $73.9 billion by 2030.”
Tech-related claims often stem from one core issue: breach of contract caused by communication breakdowns between clients and technology providers. Atkins noted: “Technology is complicated, and expectations around what technology can do can often outweigh its capabilities. This gap between expectation and reality can cause costly disputes.” Supporting this, Baker McKenzie's Global Disputes survey found that 25% of senior in-house lawyers at large organisations see commercial and contract disputes as among the biggest risks for 2025.
Brokers can help prevent such claims by:
Cybersecurity remains a top concern. Atkins explained: “The more that we, as a society, rely on data…the bigger threat it comes to criminals who want to hit us where it hurts.” Our growing digital footprint makes cyber threats ever-present, and AI only adds complexity. “Hackers will use AI as a tool. It's a tool to make their job easier so they can do it at a larger scale,” Atkins said.
AI also raises legal and ethical questions. “If a computer has made that, who owns it? The computer has had to use original source material,” he explained.
In sectors where AI powers critical decisions, risks escalate dramatically. “If AI is built into vehicles, and vehicles have to make a decision on when to brake... The impact of AI failing there could be really quite meaningful,” Atkins warned.
Software failures in vital areas such as environmental control also pose novel risks, while sectors like med tech, nuclear, automotive, and rail face unique challenges as automation and software replace human expertise. “Thus, it's something to be wary of,” Atkins added.
Brokers can play a vital role in guiding clients through these complex exposures by:
Given the novelty and complexity of these risks, Atkins stressed that brokers need to specialise. “The ideal broker doesn’t need to be a coder but must comprehend how that technology is going to be embedded and what the repercussions can be if it goes wrong,” he said.
“When you enter the market, if you enter it with the same mind space that you did with the generalist stuff, it will probably work, but only to a certain degree.”
To stay ahead, brokers should:
