Testudo Debuts AI Insurance Underwriting Platform to Tackle Surging Legal Risks and Claims

Testudo Launches AI Insurance Underwriting Platform

Lloyd’s of London-backed start-up Testudo, part of the Lloyd’s Lab innovation accelerator, has introduced a new data and technology platform focused on underwriting insurance policies for risks linked to artificial intelligence (AI). Supported by investors including LocalGlobe and Goldman Sachs partners, Testudo offers businesses a way to better manage the legal and financial exposures tied to their AI systems.

The platform gathers and analyzes real-time data on AI-related litigation, regulatory updates, and incidents. This provides insurers and businesses with insights into the evolving legal environment surrounding enterprise AI use. By processing this information, Testudo helps identify and quantify risks that traditional underwriting may overlook.

Addressing Emerging AI Risks in Insurance

Testudo operates within Lloyd’s Lab’s Cohort 14 and plans to launch new insurance products targeting enterprise clients by late 2025. The rise of generative AI has coincided with a surge in related lawsuits. According to Testudo’s data, states with the highest volumes of AI litigation include California, Illinois, New York, Texas, and Delaware.

• Generative AI lawsuits increased 23% in Q1 2025 compared to Q1 2024.
• Filings from January to April 2025 rose 81% year-over-year.
• Settlements in AI-related cases average around $4 million.

While copyright and intellectual property disputes receive media attention, the most common claims involve breach of contract, invasion of privacy, and misrepresentation. AI applications such as customer service, marketing content creation, and recommendation algorithms are frequent sources of litigation.

Insurance Industry Response and Market Potential

Increasingly, insurers are contesting AI-related claims in court, often because existing policies were not designed to cover these new risks. Deloitte forecasts the global market for AI-related insurance premiums could reach $4.7 billion annually by 2032.

Testudo’s underwriting approach stands out by not requiring deep integration with a company’s AI systems or models. This simplifies adoption and allows for easier scaling. The platform provides risk scoring and reporting tools that assist risk managers, insurers, and brokers in identifying and assessing potential liabilities.

Background and Leadership

Testudo was developed with support from several accelerators, including law firms A&O Shearman’s Fuse, Jones Day’s FinAccelerate, and enterprise venture accelerator Plug and Play. It raised a pre-seed funding round in 2024 from investors such as LocalGlobe, A100x, Charlie Songhurst, and Goldman Sachs partners.

CEO George Lewin-Smith brings experience from Goldman Sachs, where he helped drive emerging technology adoption in London and San Francisco. The founding team also has expertise in implementing AI systems and creating innovative trading products at Goldman Sachs. Mark Titmarsh, Testudo’s Head of Insurance, has over ten years of experience in underwriting and broking new risk products.

Industry Perspectives

Dawn Miller, Chief Commercial Officer and CEO of Lloyd’s Americas, commented: “We are proud to support Lloyd’s Lab start-up Testudo with bringing new data and a unique underwriting approach to AI liability insurance to the Lloyd’s market. This connection helps address emerging risks, generate new premiums, and improve operational efficiency across the market.”

She added, “By nurturing innovation from concept to scale, we’re building the future resilience of our industry and cementing Lloyd’s position as the world’s leading insurance marketplace.”

Lewin-Smith said, “Our technology and data allow us to understand, price, and underwrite real-world artificial intelligence risks, accelerating enterprise adoption with insurance coverage.”

Titmarsh noted, “Testudo bridges the specialist underwriting expertise of London with advanced technology from the Bay Area to insure the AI economy.”

What This Means for Insurance Professionals

Insurance professionals should monitor platforms like Testudo that provide detailed insights into AI-related risks. With AI technologies becoming central to many businesses, understanding how to underwrite these emerging liabilities is critical.

Testudo’s model offers a simpler way to evaluate AI risks without requiring invasive access to company AI systems. This can help insurers offer more accurate coverage and support risk managers in making informed decisions.

For those interested in expanding their knowledge on AI and insurance, Complete AI Training offers courses tailored to insurance professionals navigating AI challenges.