Stefan Daines, Broking Director at Daines Kapp, was invited to contribute to Insurance Times’ latest In Focus feature. The feature asks whether cyber insurance can keep up with artificial intelligence (AI), or whether insurers are still pricing tomorrow’s risks using yesterday’s data. Stefan appears alongside Christopher Burgess of Markel International, Jonathan Fong of the Association of British Insurers and Gülsah Dagdelen of Tokio Marine HCC.
Stefan’s view
Stefan’s view is that AI is moving faster than the data insurers use to price it. The way a business uses AI can change noticeably from one renewal to the next, and pricing built on last year’s claims reflects a risk that has already moved on. He draws a parallel with cyber insurance itself a decade ago. Back then, cyber cover often sat silently inside other policies, and it took years of loss data before the market could price it properly.
He also points out that AI is already embedded across law firms, professional services and manufacturing, but few underwriters ask how a business actually uses it. “That gap is where brokers can provide meaningful value,” he said.
What this means for our clients
For businesses where AI sits at the heart of what they do, for example those developing AI products or relying on AI to deliver services or make decisions for their own clients, we ask detailed questions about how that AI is built, used and supervised. We then look for cover that is affirmative, meaning the policy expressly states how AI-related losses are treated, rather than silent, meaning it doesn’t mention AI and leaves the position open to interpretation. For every client, we review cover against how the business operates today, and where AI comes to play a larger part in that, we can look at the exposure in more depth.
As a BIBA Accredited Cyber Insurance Broker, we advise on cyber insurance for businesses across every sector we work in, alongside our specialist AI insurance advice.
Thank you
We are grateful to Insurance Times, and to reporter Iris Hakaj, for including us, and it was a privilege to appear alongside the other contributors. Read the full article on Insurance Times.
