Check out the latest news and insights to stay in the know about the trends and innovations driving the insurance industry forward.
Latest Articles as of July 2
News: Carriers win approval to exclude AI liability
The brief: State regulators across all 50 states have approved carrier requests to exclude AI from standard liability policies, with more than 80% of such requests cleared. Major writers including Berkshire Hathaway, Chubb, and Travelers have won approval to strip AI-caused damages from corporate coverage, and standardized ISO general liability forms now offer a clean generative AI exclusion. Insurers point to the lack of loss history as the reason they cannot yet price the exposure.
News: Cyber insurance loss ratio rises again
The brief: AM Best reports the US cyber insurance loss ratio rose for a second straight year to 53 in 2025, its first reading above 50 since the pandemic ransomware spike. Premium was essentially flat, and the first quarter of 2026 marked the eighth consecutive quarter of pricing cuts, which AM Best says will make the rising loss ratio hard to reverse. Third-party claims are trending up about 30% and carry a longer tail, adding uncertainty to future losses. Surplus lines carriers, now nearly two-thirds of cyber premium, are positioned to absorb much of that development.
News: AI hallucinations in court raise insurer exposure
The brief: A legal analysis says that generative AI hallucinations in court filings are creating fresh exposure for insurers writing lawyers professional liability, E&O, and cyber cover. It points to a recent case where solicitors referred themselves to their regulator after the court was misled by AI-generated citations, with the judge focused on supervision and verification failures. The firm argues courts and regulators are treating AI errors as process failures rather than technology surprises. For insurers, that pushes AI risk management beyond underwriting models into panel counsel oversight, audit rights, and policy wording.
News: Data center build-out raises workers' comp exposure
The brief: The race to build AI data centers is deepening the US skilled-labor shortage, pushing contractors to hire and train less experienced workers faster, which a Zurich executive links to higher workers' compensation exposure. First-year employees consistently show higher injury rates, so carriers are working with contractors and brokers on loss control for the projects that need the most skilled trades. Zurich reports the strain is showing up mainly in scheduling and project delays rather than poorer workmanship. The insurer is also deploying job-site video analysis from construction technology firm Aerosite to flag unsafe behavior during the highest-risk phases.
News: NAIC breach pauses insurer investment designations
The brief The NAIC said an attacker exploited a zero-day vulnerability in Oracle PeopleSoft to reach part of its environment on June 11, as part of a broad campaign hitting many organizations, and has since published the stolen data. Based on findings to date, the exposed data included already-public statutory financial filings and credit rating agency determinations on insurer investments, with no current evidence that personal or financial account information was taken. State insurance department systems and core regulatory filing platforms including SERFF, OPTins, and UCAA were not compromised. Because some credit rating agencies paused their data feeds, the NAIC temporarily suspended assigning designations to insurer investments and told insurers to watch AVS+ for updates.
News: AI pushes tech risk up boardroom agendas
The brief: A Clyde & Co survey of 700 senior decision-makers across 11 industries found 86% now rate technological risk as high impact, up from 46% a year ago, the largest jump of any category. A Clyde & Co partner said AI governance frameworks struggle to keep pace, since a framework that looks mature today can be out of date tomorrow. Nearly three-quarters cited technology implementation and systems integration among their greatest operational challenges, and more than half expect tech adoption including AI to pose significant risk over the next year. Geopolitical risk also climbed sharply, with 72% reporting direct commercial impact versus about half in 2025.
