Cyber insurers consider limiting coverage as sector scrambles to price agentic AI risks

The cyber insurance market is grappling with the risks posed by agentic AI, as insurers consider limiting coverage until they can determine the extent and pricing of this emerging threat. City AM reports that underwriters and insurers are seeking clarity on AI coverage, particularly in liability policies, as some are limiting the type of coverage they are willing to offer.

Agentic AI, capable of completing cyberattacks in mere hours, poses a significant concern for the market, as it can operate at a much faster pace than previous threats. Tom Draper, managing director of cyber insurance firm Coalition, highlights that agentic AI enables threat actors to operate at a far greater scale, reducing the bottleneck that would typically hinder their actions.

Insurers are grappling with the challenge of pricing and defining coverage for this autonomous technology, as leading risk modelling firms like CyberCube are working to incorporate agentic AI risk into their models. Jon Choi, director of insurance risk consulting at CyberCube, stresses the importance of addressing the evolving threat landscape and the lack of understanding surrounding AI and its associated risks.

Meanwhile, law firm Kennedys partner John Pain asserts that cyber risk is entering a faster, more complex, and less forgiving phase, with AI accelerating the shift and lowering the barrier to entry for criminals.