Advanced Technology Assurance Limited (ATA), a specialist re/insurance company, has introduced a new insurance facility valued at up to $750 million to support the global expansion of AI infrastructure, a sector expected to attract nearly $7 trillion in investment by 2030.
The ATA Global Data Centre & AI Infrastructure Insurance facility is backed by a consortium of more than 10 leading re/insurers and Lloyd’s of London syndicates, including Arch Insurance International, Munich Re Specialty, and SCOR. The combined capacity allows ATA to provide a single policy designed to manage the risks associated with large-scale and complex AI projects.
“We’re creating an ecosystem approach,” commented Michael Coles, Chairman of ATA. “We’ve brought the capacity and expertise of the world’s top re/insurers to one table to create one specialised policy that aggregates limits across traditional and new coverages. We’ll aim to work closely with our re/insurer partners to build out the team, meaningful line sizes, new specialised coverages, and the risk engineering that keeps pace with the dynamism of these multi-billion-dollar projects.”
The facility has been designed to integrate multiple types of insurance under a single policy, including property, computer hardware, cargo and transit, cyber and technology E&O, environmental liability, and terrorism coverage. Previously, developers, tenants or chip providers involved in hyperscale data centres had to arrange several separate policies, which could result in coverage gaps or disputes between insurers during complex claims.
“Our new ATA policy is built for the entire AI sector, from the investors and lenders to the tenants, chip integrators, and data centre operators,” added Alistair Blundy, CEO and Lead Underwriter at ATA. “We wanted to be an insurance broker’s first call for all AI stakeholders, providing them with a clear, lead-line solution.”
Legal support for the facility was provided by Clyde & Co. “We are pleased to advise ATA on the development of its policy wording which integrates multiple lines of insurance,” said Chris Cowland, Legal Director and London Wordings Lead at Clyde & Co. “Through our Insurance Practice, Clyde & Co has a global presence and strong track record of advising on legal, claims, and regulatory issues across all lines of insurance business. We are delighted to bring our insurance experience to help support the data centre and AI infrastructure industry.”
Leading insurers are supporting the facility, recognising the need for a specialised, consolidated solution. “We’re pleased to be leading the hardware, cargo and terrorism coverage for the ATA facility,” noted James Croome, Head of Fine Art, Specie & Cargo at Arch Insurance International. “This facility provides a single point of access for world-class capacity, a lead-line solution and a new standard in the market.”
Tom Allen, CUO of Cyber at Munich Re Specialty – Global Markets, Syndicate, added: “We bring Munich Re’s leading technical expertise and financial strength to this innovative offering, backing the cyber and technology E&O coverages. Together, in this new facility we are mobilising insurance capabilities and capacity at scale to de-risk critical projects, providing relevant insurance solutions to our clients and powering the next generation of AI infrastructure.”
Emma Bartolo, Global EIL Segment Leader at SCOR Business Solutions, said: “We are delighted to be part of this groundbreaking facility, which takes a holistic approach to covering the AI infrastructure market, and to use our environmental expertise to drive and protect responsible innovation.”
Rachel Turk, Chief of Market Performance at Lloyd’s of London, added: “I’m delighted to see Lloyd’s at the forefront of supporting this groundbreaking facility. It’s a powerful example of how syndication at Lloyd’s brings world-class capacity together, making it easier to build meaningful line sizes and deliver innovative solutions that address complex needs.”
