Insurance sector warned over hidden AI risks
KYND hosted a webinar after publishing a white paper on AI risk titled The Wild West of AI Risk. The event brought together senior cyber insurance leaders to debate whether AI should be insured as its own category or treated as a factor changing existing risks. Undeclared AI emerged as a significant blind spot for insurers.
KYND published a white paper on AI risk before holding a webinar on the subject. The paper was titled The Wild West of AI Risk. The webinar assembled senior figures from cyber insurance to examine how AI should be handled. One option discussed was treating AI as a distinct insurance category; another was viewing it as a factor that changes risks already covered.
The participants also focused on undeclared AI, which was described as a notable blind spot for insurers. That concern suggests gaps can arise when AI use is not disclosed or fully understood within existing policies.
The outcome of this debate could affect insurers, businesses that rely on AI, and consumers. If undeclared AI remains hard to detect, coverage decisions and claims handling may become more uncertain. Companies using AI might face unexpected exclusions or disputes, while consumers could experience indirect effects through products and services whose risks are less clearly priced. How the sector classifies AI may shape the availability and cost of protection for years.