The Insurability Frontier of AI Risk: Mapping Threats to Affirmative Coverage, Silent Exposures, and Exclusions
The paper discusses the challenges of insuring risks associated with artificial intelligence (AI). It identifies various categories of AI-related threats and their implications for commercial insurance coverage. The authors propose a framework to understand the evolving landscape of AI risk and insurance.
- ▪The rapid diffusion of agentic AI has created new coverage problems for commercial insurance.
- ▪The study maps 55 AI threat classes against 26 insurance products and exclusion regimes.
- ▪Three patterns of AI insurability are identified, including affirmative coverage differentiation and silent-AI exposures.
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Quantitative Finance > Risk Management arXiv:2605.18784 (q-fin) [Submitted on 6 May 2026] Title:The Insurability Frontier of AI Risk: Mapping Threats to Affirmative Coverage, Silent Exposures, and Exclusions Authors:Alex Leung, Rex Zhang, Ervin Ling, Kentaroh Toyoda, SiewMei Loh View a PDF of the paper titled The Insurability Frontier of AI Risk: Mapping Threats to Affirmative Coverage, Silent Exposures, and Exclusions, by Alex Leung and 4 other authors View PDF Abstract:The rapid diffusion of agentic AI has created a new coverage problem for commercial insurance: some AI-mediated losses are now affirmatively insured, some create silent-AI exposure under legacy cyber, technology errors-and-omissions (E&O), directors-and-officers (D&O), employment practices liability (EPLI), crime, and…
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