Global: Businesses Turn to AI-Specific Insurance as GenAI Risks Rise — Geneva Association Report

As companies worldwide accelerate the deployment of generative artificial intelligence (GenAI), they are increasingly seeking insurance protection against emerging risks — from biased outputs and flawed recommendations to data breaches and intellectual property violations. This growing demand for specialised insurance products is reshaping the corporate risk landscape, according to a new report by the Geneva Association.

The report, titled “GenAI Risks for Businesses: Exploring the Role for Insurance” and published in October 2025, surveyed 600 corporate insurance decision-makers across China, France, Germany, Japan, the UK, and the US. It found widespread GenAI adoption across industries, with the highest levels observed in China and the United States.

According to the study, GenAI risks span seven domains — operational, cybersecurity and privacy, ethical, regulatory, reputational, workforce, and ESG — revealing that the technology both amplifies existing vulnerabilities and creates new ones. Cybersecurity threats topped corporate concerns, followed by third-party liabilities and operational disruptions.

While reputational risks ranked lower on the list, over 90 per cent of respondents expressed interest in AI-specific insurance, with two-thirds willing to pay at least 10 per cent higher premiums for GenAI-related coverage. Demand was found to be particularly strong among medium and large enterprises in the technology and financial sectors, as well as in markets with advanced AI adoption.

However, the report noted that insurers face significant challenges in assessing and pricing GenAI risks due to their complexity and verification difficulties — similar to the early stages of cyber insurance. “GenAI risks may lead to substantial potential losses and create information asymmetry, which limits coverage capacity,” it stated.

Despite these hurdles, insurers are innovating through the adaptation of existing policies, experimentation with parametric triggers, and the development of standalone AI insurance products — though the market remains in its infancy.

The Geneva Association urged the insurance industry to take a proactive approach: “Insurers should clearly define GenAI risk boundaries, pilot modular coverage extensions, and collaborate with technology providers and regulators to develop robust risk assessment frameworks. Such collaboration will help harmonise ethical standards, refine policy terms, and strengthen the industry’s role in enabling responsible AI adoption.”