Mosaic Insurance, a specialist insurer, has partnered with Munich Re, an international reinsurer, to offer a new insurance product tailored to the needs of AI providers.
The scheme draws on Munich Re’s aiSure platform, a recognised tool for evaluating AI risks, to cover exposures not typically addressed by conventional cyber or technology errors and omissions (E&O) policies.
The Mosaic and aiSure collaboration provides up to EUR/USD/CAD 15 million in initial coverage to protect AI developers and vendors worldwide against financial losses stemming from defined AI performance failures.
Mosaic is responsible for underwriting and marketing the product through its cyber specialists across its international network, while Munich Re contributes technical expertise, analytics, and insights from its extensive experience in AI risk.
“We’re delighted to partner with Munich Re on this pioneering initiative,” commented Dennis Bertram, Head of AI Underwriting at Mosaic. “aiSure provided the technical know-how, and we’ve built on that with specialist underwriting to create a solution that is practical and scalable. Our cyber underwriters are now taking this to market so brokers and clients worldwide can address one of the most important commercial questions in AI: what happens when the technology doesn’t deliver?”
Research shows that while business leaders are keen to harness AI, many are cautious due to uncertainties around performance risks and potential returns. The Mosaic and aiSure solution addresses this by offering protection when an AI model fails to meet clearly defined performance standards, giving clients confidence and enabling vendors to support their technology.
AI offers significant opportunities for efficiency and growth, yet adoption carries risks that are often unforeseen and difficult to quantify. The Mosaic and aiSure coverage allows providers and users of AI to adopt technology with greater assurance by insuring against errors or hallucinations in AI and generative AI models.
“In our joint offering with Mosaic, we are now bringing longstanding AI underwriting expertise of aiSure to the reinsurance side. I am convinced that our collaborative approach will enable us to support even more companies on their journey towards AI implementation,” said Michael von Gablenz, Head of Insure AI at Munich Re.
aiSure is designed to reflect the probabilistic nature of AI, where even well-constructed models can produce incorrect outputs. Its parametric-like structure allows claims to be settled quickly, based on measurable performance data, without lengthy investigations.
“This isn’t about system uptime or cyber incidents—it’s about whether the AI’s outputs are actually accurate,” added Bertram. “Our underwriting focuses on the AI model itself, what it does, how its outputs are used, rather than the insured’s respective industry. That opens the product to any company commercialising AI, from retailers licensing fraud-detection models to manufacturers selling quality-control solutions.”
The coverage complements existing cyber and technology E&O policies, which continue to address operational risks such as outages, data breaches, and negligent deployment.
The partnership supports Mosaic’s wider strategy to promote responsible AI adoption and demonstrate innovation in underwriting emerging risks. Mosaic’s cross-functional AI working group, led by Bertram, manages AI usage in underwriting and claims, establishes standards for responsible application, co-ordinates pilot programmes, and monitors how AI is transforming the risk landscape for clients.
Cyber, including technology E&O, is one of eight specialty lines underwritten by Mosaic, alongside environmental liability, transactional liability, financial institutions, political risk, political violence, professional liability, and specialty casualty.
