Artificial intelligence (AI) is rapidly transforming the property and casualty (P&C) insurance industry, creating both operational opportunities and emerging coverage challenges. As insurers increasingly incorporate AI into underwriting, claims handling, customer service, and other business functions, they must navigate evolving regulatory expectations, governance requirements, and compliance considerations. At the same time, AI is becoming more prevalent within the operations of policyholders and insureds, introducing new and often unclear sources of risk that may trigger coverage under existing insurance policies.
This white paper explores AI from both perspectives: AI as a tool used by insurers and AI as a potential source of insured loss. It examines the regulatory, underwriting, and coverage implications of AI-related exposures, highlights areas where emerging risks may outpace existing policy language, and discusses how insurers and advisory organizations can take a thoughtful, intentional approach to managing AI-related risk while maintaining clarity for policyholders and regulators.
