Marketplace Tech · Thursday, September 17, 2026
John Farley of Gallagher notes that the insurance industry is transitioning from ignoring AI to scrutinizing it, with many traditional policies not addressing AI risks. A major challenge is the lack of historical data for modeling AI's potential impact, unlike established risks like hurricanes for which ample data exists.
“The insurance market is beginning to move from silence on AI to scrutiny of AI.”
“He says most traditional policies simply don't mention AI. But the insurance industry has begun standardizing language and seeking regulatory approvals to potentially exclude AI from their plans. The challenge, he says, is figuring out how big of a risk AI poses for businesses.”
“Historically, the insurance markets have used modeling tools to measure the likelihood of say a hurricane in Florida, right? We've got lots of data there. Uh, here not so much.”