Coalition, a leader in cyber insurance, has added a positive endorsement for artificial intelligence (AI) to its cyber insurance plans for the US and Canada.
The endorsement expands the definition of a security failure or data breach to include events caused by artificial intelligence. In practical terms, this means that AI is now recognized as a possible cause of security failures in computer systems.
The endorsement also changes how funds transfer fraud (FTF) is assessed. Specifically, the endorsement acknowledges that an employee receiving a funds transfer request from a “deepfake” or any AI-powered system may now be considered funds transfer fraud (FTF).
This news story is so significant because it essentially puts AI-powered cyberattacks on par with those perpetrated by human criminals. Cyber insurance policies have traditionally focused on protecting against risks posed by human actors, such as hackers or insiders. However, with the increasing sophistication and prevalence of AI-driven attacks, it has become imperative for insurers to recognize AI as a potential threat vector.
This shift in perspective reflects the evolving nature of cybersecurity threats and the need for comprehensive insurance coverage that addresses emerging risks. It also highlights the importance of proactive risk management strategies and the adoption of advanced technologies, not only by threat actors but also by defenders and insurers, to safeguard against AI-driven cyber threats.
Coalition’s head of insurance, Shawn Ram, talked about how important the update was, saying, “As threat actors change their attack strategies by using AI, Coalition’s affirmative AI endorsement brings important clarity to how incidents are covered when AI is involved.”
Coalition’s research head, Tiago Henriques, discussed AI’s two-sided effect on cybersecurity. He said, “AI is revolutionizing and supercharging technology around the world. While it’s giving attackers the confidence to make more personalized attacks on a large scale, we believe AI has huge potential to empower defenders and strengthen cyber and insurance protections.”
“At Coalition, we know that AI technologies will play a big role in the future of technology and digital risk. This is a big step toward making our insurance product more up-to-date with the changes happening in the digital-first world.”
Coalition’s endorsement for artificial intelligence can now be added to any surplus cyber insurance coverage in the US or Canada.
