A detailed new report from the Geneva Association says there is demand among the world’s business leaders for risk coverage that extends to emerging generative artificial intelligence (Gen AI) risks: 90 per cent see a need for such products and over two thirds were willing to pay at least 10 per cent more in premiums to secure them.
Based on a global survey of 600 business representatives involved in corporate insurance decision making, the report also looks at the insurability of different Gen AI exposures.
The report, Gen AI Risks for Businesses: Exploring the role for insurance, further cites a 2025 global survey which found 71 per cent of businesses have adopted Gen AI tools in at least one business function. This is up from 65 per cent in early 2024 and 33 per cent in 2023.
Adapting cyber and liability policies
They say insurers around the world are responding to the demand for Gen AI risk coverage by adapting cyber and liability policies to include Gen AI related causes of loss, parametric triggers and due diligence protocols. “It remains too early to say whether existing insurance products or new standalone solutions will come to dominate the Gen AI risk market,” they write.
The report goes on to look in some detail at the risks related to traditional artificial intelligence and Gen AI, including first party operational risks, regulatory and compliance risks and third-party risks for businesses. They also note that Gen AI lowers the barrier to entry for cyber criminals.
Agentic artificial intelligence and related risks to business are examined, along with bias and ethical concerns. Of note, one of the report’s original contributions is a comprehensive assessment of the insurability of Gen AI-specific risks. “Guided by established insurability criteria, the report systematically evaluates which Gen AI exposures can realistically be covered under current market frameworks and where innovative products will be needed,” they write.
Proactively define risk boundaries
“To keep pace with Gen AI innovation, insurers should proactively define Gen AI’s risk boundaries and begin piloting modular coverage extensions before loss events force reactive responses,” they add before recommending that insurers partner with technology providers and regulators. “Gen AI promises transformative gains in productivity and creativity, yet its opacity and autonomy introduce risks with few historical parallels.”
