Policy wording in the age of AI : Granularity and modularisation As the threat landscape evolves , so too must policy wordings . Insurers are grappling with how to define and cover emerging risks like AI-generated disinformation campaigns or autonomous vehicle hacks . The industry is seeing a trend towards more granular , modular policy structures , moving away from broad cyber catch-all policies towards tailored coverage options that allow for more precise risk transfer .
This modularisation is particularly evident in the realm of business interruption ( BI ) coverage .
With the average cost of downtime now exceeding US $ 5,600 per minute for enterprise-level organisations , according to Gartner , insurers are introducing more nuanced BI triggers and sublimits .
James emphasises the importance of comprehensive coverage , especially for small and medium-sized enterprises ( SMEs ): “ Often , businesses overlook and underestimate cyber risk in their coverage . Many underestimate their exposure to data breaches and ransomware attacks , assuming these are issues only for large corporations . Another common gap is in business interruption insurance . Many policies
132 November 2024