BOXX Insurance, a global cyber insurtech and part of Zurich Insurance Group, has announced affirmative coverage for AI and deepfake related events tied to social engineering and security failures within its commercial policy offering, Cyberboxx Business.
The company said the new endorsement is designed to eliminate ambiguity around AI-driven incidents for customers and broker partners, addressing what it called the "grey zone" that has existed in cyber policy language around AI and deepfake losses.
BOXX's move places it on one side of a divide that has opened across the cyber insurance market since the start of 2026. A number of carriers began explicitly excluding AI-generated deepfake fraud from standard social engineering coverage from January 1, 2026, narrowing or removing protection for policies renewed after that date. Others moved the opposite way, updating their social engineering insuring agreements to affirmatively include losses from AI-generated impersonation, including voice cloning and video deepfakes. BOXX's endorsement follows that second path.
BOXX pointed to recent survey data showing how quickly AI-driven threats have moved from theoretical risk to common experience. Citing Cisco's 2025 Cybersecurity Readiness Index, the company said 86% of US business leaders with cybersecurity responsibilities have reported at least one AI-related incident in the past 12 months.
Erik Tifft, global head of underwriting at BOXX Insurance, said the sophistication of AI tools is changing how social engineering attacks unfold. "Threat actors are exploiting trusted relationships amongst employee and executive networks which can result in handing over credentials or misdirecting payments without an actual breach," Tifft said. "That's why we've updated our policy language to address the real risks that businesses, executives and their employees face in the age of AI."
BOXX said the new AI and deepfake coverage works alongside its existing First Party Each and Every Loss feature, which reinstates the policy's aggregate limit of liability after each cyber incident, keeping coverage available for the remainder of the policy term. "Our underwriting is keeping up with the higher frequency and the changing nature of emerging cyber and AI-driven threats," Tifft said. "As a result, we're continuously enhancing our cyber insurance products with broadened, affirmative coverages to capture emerging cyber threats and new forms of cybercrime, whether they occur via systems breaches or through advanced social engineering."
The announcement lands inside a US market where fraud losses have intensified sharply. The Federal Trade Commission said consumers reported losing $3.5 billion to imposter scams in 2025, nearly tripling from 2020. Overall reported fraud losses across all categories surged to about $16 billion in 2025, the highest on record and roughly 25% above the prior year. Total fraud losses reported to the FTC in 2025 reached about $15.9 billion, an increase of roughly 27% from $12.5 billion in 2024, and losses have increased nearly 430% since 2020. NAIC + 2
That climbing loss trend is drawing a formal regulatory response of its own. Several state insurance regulators have moved to adopt the National Association of Insurance Commissioners' model bulletin on the use of artificial intelligence by insurers, which sets expectations for AI governance frameworks at underwriting and claims. Separately, the Insurance Services Office issued general liability exclusions addressing AI exposure that took effect in January 2026, part of a wider industry effort to draw clearer lines around what AI-related losses are and are not covered under existing policy language - the same ambiguity BOXX's new endorsement is aimed at resolving on the cyber side.
The average cost of a data breach for US companies jumped 9% to an all-time high of $10.22 million in 2025, even as the global average cost fell 9% to $4.44 million, according to IBM's Cost of a Data Breach Report - a figure that has pushed organizations toward higher-limit first-party coverage for ransom payments, forensic costs and business interruption.
Unlike some other national cyber insurance markets, the US market has actually grown less concentrated in recent years. The top 10 US cyber writers had a 51% market share at the end of 2025, compared with 69% as recently as 2019, as more insurers have entered the space. That means product decisions like BOXX's affirmative AI endorsement are unfolding across a wider and more competitive field of carriers than in some other markets, giving businesses more choice over how their AI-related exposure gets covered, even as the underlying loss trend keeps climbing.
