AI-specific insurance is entering the reinsurance market as Mosaic Insurance and Munich Re unveil a new product tailored to AI developers and vendors. The initiative aims to address performance risks that traditional cyber and technology errors and omissions policies often overlook.
AI-specific insurance is designed to protect companies against financial losses arising from defined AI performance failures. The product draws on Munich Re’s aiSure platform, which evaluates AI risk exposure using advanced analytics and underwriting expertise.
The collaboration offers initial limits of up to EUR/USD/CAD 15 million and is available to AI providers worldwide.
How the AI-Specific Insurance Works
The new AI-specific insurance solution focuses on measurable AI performance outcomes rather than system outages or data breaches. Coverage is triggered when AI models fail to meet predefined performance standards.
Munich Re contributes technical expertise through its aiSure framework, while Mosaic handles underwriting and distribution through its global cyber specialist network. This structure ensures that underwriting decisions reflect the probabilistic nature of artificial intelligence systems.
Dennis Bertram, Head of AI Underwriting at Mosaic, noted that the solution addresses a fundamental commercial question for AI developers: what happens if the technology does not deliver as promised?
Unlike conventional cyber insurance, which concentrates on operational disruptions or security breaches, AI-specific insurance evaluates whether the model’s outputs are accurate and reliable.
Parametric-Like Structure for Faster Claims
The AI-specific insurance product adopts a parametric-like approach. Claims are assessed based on objective performance data rather than lengthy investigations. This enables quicker settlements and clearer expectations for policyholders.
Munich Re’s Michael von Gablenz, Head of Insure AI, highlighted that the collaboration extends longstanding AI underwriting expertise into the reinsurance space. The goal is to support companies implementing AI solutions with greater confidence.
By focusing on measurable metrics, the coverage provides clarity in an area where risk is often difficult to quantify.
Addressing Performance and Hallucination Risks
AI adoption offers significant efficiency and growth potential. However, performance uncertainty remains a barrier for many organisations. AI-specific insurance directly addresses concerns around errors and generative AI hallucinations.
The coverage applies across industries. It is not limited to a specific sector but instead focuses on the AI model itself and how its outputs are used. This opens eligibility to businesses commercialising AI, including those offering fraud detection, quality control, or analytics solutions.
For companies hesitant to deploy AI at scale, the availability of insurance protection may reduce perceived risk and accelerate implementation.
Supporting Responsible AI Adoption
The partnership aligns with Mosaic’s broader strategy of underwriting emerging risks responsibly. The insurer maintains a cross-functional AI working group to oversee AI use in underwriting and claims processes. The group also monitors how artificial intelligence reshapes the risk landscape.
Cyber and technology E&O remain key components of Mosaic’s specialty lines, alongside environmental liability, financial institutions, political risk and other segments. The AI-specific insurance offering complements these products by covering performance exposures not traditionally insured.
As artificial intelligence becomes more integrated into commercial operations, AI-specific insurance represents a significant development in the reinsurance sector. By combining data-driven risk evaluation with structured underwriting, Mosaic and Munich Re are positioning themselves at the forefront of insuring next-generation technology risks.
