Active cyber insurance provider Coalition has added a new Affirmative Artificial Intelligence (AI) Endorsement to clarify what is covered by the company’s US Surplus and Canada Cyber Insurance policies.
According to the announcement, the endorsement expands the definition of a security failure or data breach to include an “AI security event,” where AI technology caused a failure of computer systems’ security.
It has also been confirmed that the new Affirmative AI Endorsement language expands the trigger for a funds transfer fraud (FTF) event to include fraudulent instruction transmitted through the use of deepfakes, as well as any other artificial intelligence technology.
It is important to remember that cybersecurity trends point towards attackers using generative AI (GenAI) tools to launch more sophisticated cyber-attacks, and potentially extort larger amounts of money from victims.
Shawn Ram, Coalition’s Head of Insurance, commented: “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. 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 Head of Research, said: “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.”
In April 2023, Coalition launched CoalitionAI™, an initiative to deploy GenAI and large language models (LLMs) to help brokers and businesses address cyber risk through collaborative chat copilots.
