Broad AI exclusions in insurance policies could create uncertainty, Marsh CEO says
MRSH•Marsh CEO John Doyle said broad AI exclusions in insurance policies could create confusion and uncertainty, and called for a more nuanced approach to assessing risks. Marsh Risk CEO Nick Studer said AI-related risks may evolve existing exposures or reveal gaps in current insurance products.
1. Call for nuanced coverage
Marsh CEO John Doyle said broad-based AI exclusions in insurance policies could create “real confusion and uncertainty” as AI becomes more embedded in business operations. On a post-earnings call, he said Marsh wanted a thoughtful discussion about changing exposures, limited claims activity to date and how risks might aggregate.
2. Two categories of risk
Marsh Risk CEO Nick Studer said AI risks currently fall into two categories: AI as an evolution of existing risks, and risks that expose gaps or flaws in existing insurance products and services. He said excluding AI from causal pathways to losses could lead to uncertainty, disputes and coverage gaps, while adding that Marsh was open to the possibility of risks unique to AI.
