Businesses across the globe are rapidly integrating Generative AI (Gen AI) into their products, services, and operations. While the technology offers major benefits in efficiency and innovation, it also introduces complex risks — including defective outputs, copyright issues, and cybersecurity vulnerabilities.
A new report by the Geneva Association, Gen AI Risks for Businesses: Exploring the Role for Insurance, examines how corporate insurance customers view these risks and their demand for related coverage. The findings are based on a survey of 600 corporate insurance decision-makers from China, France, Germany, Japan, the UK, and the US.
Key Findings
• Widespread adoption: 71% of surveyed businesses have implemented Gen AI in at least one function.
• Strong demand for insurance: More than 90% of businesses expressed interest in insurance protection for Gen AI risks, with two-thirds willing to pay at least 10% higher premiums for such coverage.
• Top concerns: Cybersecurity risks ranked highest, followed by third-party liabilities and operational disruption.
• Market challenges: Difficulties in verifying Gen AI risks and the potential for large losses create insurability concerns similar to those seen in cyber insurance.
• Industry response: Insurers are testing both policy extensions and standalone AI products, with modular approaches and partnerships across sectors identified as key to closing protection gaps.
Industry Perspectives
Jad Ariss, Managing Director of the Geneva Association, emphasized the significance of understanding emerging AI risks. “Few technologies in history have spread as rapidly as Gen AI, yet its risks are complex and poorly understood,” he said. “This report provides insurers with a clearer picture of business demand for insurance protection, helping the industry anticipate needs. Insurers have a unique role to play in ensuring that Gen AI adoption is safe and sustainable.”
Ruo (Alex) Jia, Director of Digital Technologies at the Geneva Association and lead author of the report, noted that Gen AI “amplifies some existing risks and creates entirely new categories of exposure that extend beyond traditional insurance boundaries.” He added that insurers must define clear risk parameters and test modular coverage models to meet evolving needs.
About the Geneva Association
The Geneva Association is the only global association of insurance companies, bringing together CEOs from leading insurers and reinsurers. The organization conducts research in collaboration with its members, academic partners, and multilateral institutions to analyze key risks affecting the insurance sector and develop policy recommendations.
Its member companies are headquartered in 26 countries, collectively managing USD 21 trillion in assets, employing over 2.5 million people, and providing protection for 2.6 billion individuals worldwide.