Chubb CEO says insurers must address AI liability risk in underwriting

Chubb CEO Evan Greenberg said the insurance sector should use its experience with past emerging risks to manage the growing issue of AI liability. Speaking on a third quarter earnings call, Greenberg described AI liability as a new and expanding exposure that has not yet been factored into casualty underwriting. He suggested the industry may need to develop a mix of coverage clarifications, exclusions and separate AI-related liability policies as the risk becomes clearer.

Greenberg noted that AI-related liability exposures will differ by business and sector, and that new underwriting and pricing methods will be needed to reflect this. He also raised the possibility of certification standards and best practices for AI use, which could help insurers assess and manage these risks. At Chubb, Greenberg said the company invests in governance and security for its own AI systems and data, using multiple layers of defence to protect against external threats.

For senior executives in regulated industries, the evolution of AI liability coverage will affect risk management, compliance and insurance costs. Insurers and clients should monitor developments in policy terms and industry standards as the market adapts to the risks posed by artificial intelligence.