Here's your roundup on the latest AI and insurance news moving markets, regulators, and operations this month.
News: Trump signs voluntary frontier AI review order
The brief: President Trump signed an executive order on June 2 directing federal agencies to assess the cybersecurity capabilities of frontier AI models, with AI developers participating voluntarily and the government given up to 30 days of pre-release access. The order creates a clearinghouse where AI companies and agencies, including Treasury and the Pentagon, can exchange information about potential vulnerabilities, and assigns the National Security Agency authority over which models merit early review. Trump had postponed the order in late May over concerns the original 90-day window could undercut US competition with China, and the signed version shortens that window to 30 days. The directive followed Anthropic's same-day announcement that it would broaden access to its Mythos cybersecurity model from a handful of large technology and Wall Street firms to 150 additional organizations.
News: Quiet 2026 forecast still carries severity risk
The brief: Allianz Commercial's 2026 hurricane outlook compiled forecasts from six major meteorological institutions and projects a near to below-average Atlantic season, with NOAA assigning a 55 percent probability of below-normal activity. The outlook warns that storm counts are a poor proxy for losses. In 2025, only 5 Atlantic hurricanes formed, but 4 reached Category 4 or 5, and Hurricane Melissa caused about $11 billion in economic losses across the Caribbean against $2.5 billion in insured losses. Atlantic storms are also intensifying faster, with mean maximum intensification rates roughly 29 percent higher in 2001 to 2020 than in 1971 to 1990, compressing the response window for catastrophe planning.
News: EU appoints expert bodies for AI Act
The brief: The European Commission appointed a 60-member Scientific Panel and an Advisory Forum to provide independent expertise for enforcing the EU AI Act. The Scientific Panel brings together experts in frontier AI, engineering, technical auditing, industry, and societal impact, and will focus on general-purpose AI models and systems, systemic risks, model classification, evaluation methodologies, and cross-border market surveillance. The Advisory Forum will provide independent technical expertise on a broad range of AI Act issues including standardization and implementation challenges, drawing members from academia, civil society, industry, startups, and SMEs. Members of both bodies will serve two-year terms.
News: Insurers unprepared for AI-driven fraud
The brief: Data and AI firm SAS warned that generative AI tools now let virtually anyone with a computer create or alter images to file fraudulent insurance claims, from fake crash scenes and damaged furniture to altered receipts. About 1 in 10 property-casualty insurance losses already involves fraud, and SAS said growing access to image-generation tools will push that figure higher by lowering the technical skill needed to fabricate convincing evidence. A joint survey from the Association of Certified Fraud Examiners and SAS found only 7 percent of anti-fraud professionals say their organization is more than moderately prepared to detect AI-driven fraud, and no insurance respondent expressed more than moderate confidence. SAS noted AI also offers a path forward for insurers, since it can analyze huge volumes of claims data and detect image anomalies that humans cannot.
News: AI fueling new wave of malpractice claims
The brief: AI has moved from a theoretical concern to an active source of legal malpractice claims, according to EPIC Insurance Brokers and Consultants' 16th Annual Lawyers' Professional Liability Claims Survey, which polled senior claims executives at 13 lawyers' professional liability insurers that together cover more than 80 percent of firms in the Am Law 200. Seven of the 13 insurers reported an increase in AI-related claims during the past year. Eight of the 13 insurers reported higher claim frequency compared with the previous year, and respondents cited continued growth in large-loss claims, including matters reserved or paid in excess of $100 million. A majority of surveyed insurers indicated plans to raise rates in 2026, with 11 of 13 reporting materially higher defense spending year over year.