CRC Specialty CEO Neil Kessler says AI insurance may need real losses to drive demand. Businesses recognize AI exposure but lack cost estimates for potential losses. CRC already sells AI insurance but sees slow uptake. Kessler compares the situation to early cyber and EPLI insurance adoption. He expects actual business losses to push boards to allocate funds for AI coverage. CRC is developing its own AI coverage solutions. Standard markets are evolving weekly on AI exposure interactions with existing policies. ISO issued generative AI exclusion endorsements in January 2026. Carriers like Berkley, Chubb, and Travelers have adopted or filed these exclusions. Berkley introduced an absolute AI exclusion across D&O, E&O, and fiduciary products. CRC has set up a center of excellence to help retailers understand AI coverage gaps. The figures come from a Deloitte projection and a Trades Coverage review.
What changed
AI insurance products existed but saw little demand without tangible loss examples.
What it unlocks
Brokers can bridge gaps between carrier positions and retailer expectations on AI coverage.
- $4.7 billion annual global AI insurance premiums by 2032
- 80% compound annual growth rate
- 4,078 generative AI exclusion records across 49 states and DC
- 2,369 exclusions in force
Sources