Traditional Cyber Insurance Isn’t Built For AI-Driven Attacks
As generative AI becomes embedded in business operations, it’s also fueling a surge in sophisticated cyberattacks, leaving traditional cyber insurance policies dangerously outdated. From deepfakes and voice cloning to AI-generated phishing and chatbot manipulation, today’s threats don’t fit neatly into yesterday’s policy language.
In a recent article published by Cyber Security Intelligence, Randy Sadler of CIC Services highlights how many cyber policies fail to cover AI-specific exposures like synthetic media, third-party tool failures, or liabilities tied to AI-generated content. The result: businesses are increasingly left to shoulder significant financial, legal, and reputational damage. Insurers are responding by narrowing coverage and introducing AI-related exclusions, creating a widening gap between threat evolution and policy protection. In response, risk managers are rethinking their strategies—exploring custom policies, excess coverage, and alternative tools like captive insurance to gain control over emerging risks.
Read the full article here to explore how captive insurance can close critical coverage gaps and strengthen your risk strategy in the face of evolving AI-driven threats.