Cyber risk intelligence company KYND has introduced a new capability aimed at helping insurers identify artificial intelligence (AI) technologies across an organisation’s externally visible digital environment during the risk selection process.
The new AI discovery functionality allows underwriters to identify AI technologies associated with an organisation’s external digital footprint using a single domain.
KYND says the process does not require information to be supplied by the organisation, giving insurers an independently observed source of technology intelligence to consider alongside proposal forms and discussions with prospective insureds.
The development comes as businesses continue to introduce AI technologies across different areas of their operations.
For insurers, understanding how AI is being deployed and what dependencies it creates can form part of assessing a cyber risk, although information about technology use is often based on what an organisation discloses during the underwriting process.
KYND says this can create a visibility gap where technologies are adopted or used without being fully captured through existing governance processes. Research from IBM found that one in five organisations reported a breach last year linked to ‘shadow AI’, referring to AI being used without formal approval or governance. IBM also reported that organisations with high levels of shadow AI recorded average breach costs that were $670,000 higher than organisations with low or no shadow AI.
Melanie Hayes, co-founder of KYND, commented: “Proposal forms and underwriting conversations remain essential, but AI use is changing rapidly and businesses themselves may not always have complete oversight of the technologies being used across their organisation.
“Giving underwriters independently observed information means the conversation can start with greater visibility of what is detectable on the risk, helping underwriters ask more informed questions and build a clearer picture of the exposure.”
According to KYND, the new technology detection capability can identify a range of AI applications and features that are externally visible. These include AI assistants and chatbots, generative AI applications, AI functionality incorporated into marketing and commerce technologies, and AI crawlers that an organisation’s infrastructure allows to access its digital assets.
The launch follows research previously published by KYND examining what the company describes as silent AI exposure across insurance portfolios. In its The Wild West of AI Risk white paper, KYND said organisations were adopting AI at a faster pace than they were disclosing its use, creating the potential for some technology exposures to remain unidentified during underwriting.
The company also highlighted the possibility that similar AI technologies or dependencies could appear across multiple insured organisations without being readily visible at portfolio level.
KYND’s latest capability is intended to provide insurers with an additional source of information rather than replace existing underwriting processes. By comparing independently observed technology data with information supplied during the underwriting process, insurers can investigate areas where further questions or clarification may be appropriate.
Hayes added: “As AI becomes more deeply embedded across businesses, insurers will increasingly need to understand where common technologies and dependencies are appearing across their books.
“The industry is still building its understanding of how AI-related losses will develop. Being able to identify those dependencies now gives insurers a stronger foundation to understand and manage exposure as it evolves.”
KYND adds that its AI detection functionality forms part of a broader technology intelligence offering that can identify technologies used across an organisation’s digital environment. The company’s wider capabilities cover areas including payment and cloud services, analytics, tracking pixels, session-recording technologies, identity and access management, and website platforms.
For insurers, KYND notes that this technology information can provide additional context around the systems and services supporting individual risks. At portfolio level, the data can also be used to examine where particular technologies or dependencies occur across multiple insured organisations, giving insurers and reinsurance teams another source of information when assessing concentrations of cyber exposure.
