This latest endorsement clarifies the coverage scope within Coalition’s cyber insurance policies. By broadening the definition of security failures or data breaches, the endorsement now incorporates AI security events, wherein malfunctions in computer system security are attributed to artificial intelligence technology.
Furthermore, the Affirmative AI Endorsement introduces an expanded criterion for identifying funds transfer fraud (FTF) events. It now encompasses instances of fraudulent instructions transmitted via deepfakes or any other form of artificial intelligence technology.
In 2023, Coalition unveiled CoalitionAI™, a pioneering initiative leveraging generative AI and large language models (LLMs) to assist brokers and enterprises in managing cyber risk through collaborative chat copilots. Subsequently, Coalition has integrated AI across its operations to elevate underwriting accuracy, refine risk segmentation, and elevate customer service standards.
“As threat actors adapt their attack strategies by incorporating AI, Coalition’s Affirmative AI Endorsement introduces important clarity around how incidents are covered when AI is involved,” said Shawn Ram, Coalition’s Head of Insurance.
He continued: “Coalition is at the forefront of evolving cyber insurance coverage to address this ever-changing risk ecosystem. While FTF and data breach coverages have always been cornerstones of our policies, this new endorsement gives brokers confidence that they’re offering their clients the most comprehensive cyber coverage – and provides policyholders with peace of mind.”
Recent developments in cybersecurity indicate a rising trend of attackers employing generative AI tools in real-world scenarios to execute increasingly intricate cyber assaults, potentially leading to heightened financial demands from targets. Drawing from these observations, Coalition utilizes such insights to refine its underwriting strategies and coverage framework, thereby enhancing its ability to safeguard policyholders against evolving digital threats.
“AI is revolutionising and supercharging technology worldwide, and while it’s emboldening attackers to create more personalized attacks en masse, we continue to believe AI has huge potential to empower defenders and strengthen cyber and insurance protections,” said Tiago Henriques, Coalition’s Head of Research.
He added: “At Coalition, we recognise AI technologies are an important part of the future of technology and digital risk, and this is a big step in pushing forward our insurance product to keep pace with the advancements happening in the digital-first world.”
