AXA XL Launches Gen AI Cyber Cover Amid Regulatory Pressure

Insurance firm AXA XL, a division of French multinational insurer AXA that specialises in complex risk management, has expanded its cyber insurance coverage to address risks associated with generative artificial intelligence (Gen AI) development.

The new endorsement arrives as businesses navigate the European Union's AI Act—a framework that imposes requirements on AI system development and deployment. Available through the firm's CyberRiskConnect policy, the coverage protects against data poisoning—where malicious actors compromise AI models by introducing misleading information into training datasets.

Michael Colao, Global Chief Underwriting Officer for Cyber at AXA XL, outlines the rationale behind the product launch. "Companies are investing in developing their own Generative AI to unlock new possibilities.

"They must also be mindful of the risks that come with it, such as potential misuse, compliance issues, and the need for robust safeguards to ensure responsible and secure deployment," says Michael.

Technical Protection

The policy covers usage rights infringement, protecting businesses that use copyrighted materials or intellectual property in their machine learning models without proper permissions. This responds to concerns from organisations developing in-house AI systems who face technical, legal, and regulatory challenges.

The endorsement is available across AXA XL's markets in the United States, Canada, the United Kingdom, Europe and Asia. It supplements the insurer's cyber insurance portfolio of incident response coverage, liability protection, and risk management services.

"Our clients sought help navigating this unchartered territory and, with our brokers' input and feedback, we're pleased to develop an innovative insurance solution to provide clear coverage for these risks," Michael says.

AXA: Gen AI Adoption

In recent years, AXA has made significant strides in modernising its operations through artificial intelligence, with a particular focus on generative AI technologies. 

At the heart of this transformation is their in-house secure GPT platform, which operates within protected infrastructure to maintain data security whilst enabling staff to leverage AI capabilities in their daily work.

To maximise the value of these tools, AXA launched "GenAI for all," a comprehensive training programme designed to build AI literacy across the organisation. 

The company has also invested in leadership development through its "Data & AI for Leaders" programme, created in partnership with HEC business school, which combines theoretical learning with practical business applications.

Beyond internal operations, AXA's AI initiatives extend into healthcare research through the AXA Research Fund, which supports academic work on making AI systems more interpretable and transparent. 

This aligns with its broader commitment to responsible AI development – ensuring systems remain fair and accountable whilst maintaining human oversight.

The insurance giant has also implemented AI solutions to enhance core business functions. Their risk assessment platforms now incorporate AI to help clients identify and manage global risks more effectively. 

Meanwhile, in the sustainability space, AXA employs natural language processing to evaluate corporate contributions to UN Sustainable Development Goals, demonstrating how AI can support environmental, social and governance objectives.

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