Assured Reacts: FT Coverage on AI and Cyber Insurance

Assured Reacts:

We believe this article casts this development too negatively. In reality, this is a positive step forward in how cyber insurance evolves to respond to cyber losses.

Adding clarity

LLMjacking is not currently explicitly covered (affirmatively endorsed) in most cyber policies. By introducing a sublimit, insurers are:

• Clearly defining coverage where it was previously ambiguous
• Providing greater certainty that claims will be paid

AI and cyber risk evolve quickly, and policy wording doesn’t always keep pace. These changes are about updating legacy wording, reducing grey areas and giving clients more confidence as AI-driven risks mature.

Core coverage remains unchanged

Importantly, cyber coverage continues to respond to incidents, even where sublimits are introduced.

If an AI-related incident leads to a traditional cyber loss, it is still covered under the main policy. This, unfortunately, is not explicit in the FT article. There are currently no known cases of cyber claims being denied due to AI involvement, including LLMjacking.

QBE reached out to Assured to clarify their positioning on cyber coverage, explicitly stating that it is not pulling back from AI-related cyber risk. In fact, they are expanding coverage in areas where gaps previously existed. QBE was keen to reassure that its core cyber coverage will continue to respond to cyber losses, regardless of whether AI is involved in the incident.

Contrary to the FT article’s positioning, these changes are not about restricting cover but about making AI-related risks insurable in a clear and structured way. Insurers are refining how policies respond, not stepping away from the risk.