Gen AI Risks for Businesses: Exploring the Role for Insurance

Abstract

This Geneva Association research summary analyzes the emerging risks of Generative AI for businesses and explores insurance's role in managing these exposures. Drawing on a survey of 600 corporate insurance decision-makers across six major insurance markets, the report identifies seven categories of Gen AI-induced business risks and finds that over 90% of businesses believe they need insurance protection against AI-related risks. The report examines how insurers are beginning to respond through policy extensions, underwriting adjustments, and standalone AI products, while acknowledging challenges to traditional insurability. It recommends proactive insurer engagement, collaborative governance standards, and pairing insurance with robust risk mitigation practices.