AI adoption has outpaced governance at most businesses worldwide. 43 percent still lack a formal AI risk management framework. Shadow AI tools create risk by exposing sensitive data outside company controls. Unsupervised AI agents can act without human oversight. Multiple policies may be triggered by AI usage. Existing policies often do not address AI-driven losses. Coverage depends on specific policy wording and incident facts. Underwriters now scrutinize AI governance during renewals. Tier-based pricing and sub-limits may apply based on governance posture. Businesses should review all impacted policies before renewal.
What changed
AI adoption moved faster than governance frameworks at most businesses.
What it unlocks
Identifying AI tools in use and their data access for underwriting clarity.
- 43% lack a formal AI risk management framework
- 1,200+ companies surveyed
Sources