QBE North America Launches AI-Specific Cyber Insurance Coverage
QBE North America has introduced new cyber insurance coverages focused on risks related to artificial intelligence. This move addresses two main areas: compliance with emerging AI regulations and protection against a rising cyber threat called LLMjacking. The product comes as businesses face heightened legal scrutiny and operational challenges linked to AI adoption.
Coverage for AI Regulatory Compliance
The new insurance product provides protection against costs arising from alleged violations of AI-related laws. This includes defense expenses, fines, and penalties under regulations such as the European Union’s AI Act and similar laws being developed across various US states. This coverage helps organizations manage the financial impact of navigating this evolving regulatory environment.
Protection Against LLMjacking Attacks
LLMjacking is a cyberattack where hackers use stolen credentials to access cloud-hosted large language models (LLMs). Once inside, they exploit the computing resources powering these models, leading to inflated service charges and potential data exposure. QBE’s policy covers increased fees and costs involved in retraining any compromised AI models, helping businesses mitigate financial and operational damage.
Adapting to New AI-Related Risks
Traditional cyber insurance policies often don’t cover AI-specific threats. QBE’s new offering builds on its existing product, QCyberProtect, launched in 2023. While that policy serves a broad range of companies—from mid-sized businesses with outsourced IT to large enterprises—this latest coverage zeroes in on the unique challenges introduced by AI technologies.
This approach reflects a broader trend in the insurance industry to address risks associated with generative AI and machine learning tools. As these technologies become more widespread, insurers are adjusting their offerings to cover exposures that conventional policies might miss.
QBE’s AI-related coverage is now available and forms part of the company’s ongoing efforts to respond to changes in the cyber risk landscape.
For insurance professionals looking to deepen their understanding of AI and related technologies, exploring dedicated AI training can be beneficial. Resources like Complete AI Training offer courses that cover AI risks and opportunities relevant to various industries.
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