Demand is the strongest in the technology and financial sectors.
According to a new report from the Geneva Association, more than two-thirds of companies are willing to pay at least 10% higher premiums for policies that explicitly include the risk of Generation AI (GEN AI).
Over 90% of respondents said they needed insurance coverage for AI or GEN AI threats.
The rapid adoption of GEN AI is pushing people to seek a new kind of insurance as they face increasing business, ethics and cybersecurity risks.
The report found that companies are increasingly integrating Gen AI into customer service, product development and internal operations.
However, this has led to new exposures such as flawed AI output, biased recommendations, intellectual property infringement, and cyber threats (especially when AI systems generate false or copyrighted content).
Despite Gen AI’s promises, many companies face implementation challenges such as talent shortages, poor data quality and internal resistance.
Cybersecurity is the biggest concern in all markets, with more than half of respondents citing it.
Other major risks include third-party liabilities and operational disruptions. Although reputational damage was ranked low, experts warned that it could have lasting effects.
In the technology and financial sector, demand is particularly strong among medium and large companies.
Companies with previous AI-related losses or higher levels of exposure show the greatest interest and suggest the risk of choice.
For insurance companies, AI underwriting risks pose new challenges.
The report states that it is difficult to examine how companies manage AI risks, leading to potential information asymmetry.
As a result, insurers may limit coverage or adopt careful pricing, similar to the early stages of cyber insurance.
In response, the insurance company is adjusting its cyber and liability policies to include GEN AI-related losses.
Some people are testing parametric triggers and due diligence protocols to improve their underwriting and billing processes.
The market remains early, but is also developing standalone AI insurance solutions that bundle multiple coverages under one policy.
The report encouraged insurers to act early by defining risk boundaries for GEN AI, piloting modular policy extensions, and collaborating with technology providers and regulators to collaborate with risk assessment frameworks.
The Geneva Association has surveyed 600 corporate insurance decision makers across China, France, Germany, Japan, the UK and the US to assess the business perception and demand for AI-related insurance.
Although adoption of Gen AI is widespread, enthusiasm varies from region to region. Chinese and US companies report the highest levels of confidence and usefulness, reflecting their high digital maturity.
