Brokers Face New AI Liability Landscape as Insurers Adjust Strategies

A recent report from Willis's Risk and Resilience review offers a telling insight for brokers: a significant majority of existing insurance policies were not structured with artificial intelligence liability considerations in mind. This gap in coverage is rapidly being addressed, whether brokers have proactively raised the issue with their clients or not.

AI Governance Gaining Ground

AI adoption is soaring, with data indicating that over 700 million individuals engage with prominent AI systems weekly. The technology now permeates underwriting, claims processing, and executive decision-making, outpacing the development of appropriate governance frameworks. This observation is pivotal for the insurance sector, sparking a notable shift in how policies are evaluated.

Responding to this evolution, AIQA Global, LLC has established its inaugural Advisory Board to back the AIQ Score, a comprehensive assessment measuring the governance quality of enterprise AI on a scale from 0 to 200, evaluated across 250 factors. James E. Malackowski, co-founder and chairman of AIQA, emphasized that "enterprise AI adoption has advanced much faster than enterprise AI governance. Self-attestation is not governance," highlighting the urgent need for reliable assessments.

Implications for Brokers

The AIQ Score is set to become crucial in procurement reviews, underwriting, funding diligence, and regulatory assessments as AI technologies are increasingly integrated across sectors. Brokers may soon be called upon to interpret this score for their clients, indicating a shift towards more exacting standards in policy placement.

Moreover, regulators are aligning their efforts to address AI integration. The National Association of Insurance Commissioners (NAIC) is piloting an AI Systems Evaluation Tool in twelve states, set to run from March through September 2026. This initiative directly correlates with market conduct and financial examinations, reflecting a proactive stance toward AI oversight.

The NAIC's Model Bulletin on AI systems, adopted in December 2023, has gained traction, with 25 states and the District of Columbia now adopting AI governance measures. For brokers operating in those jurisdictions, questions regarding a client's AI governance are quickly evolving from theoretical to practical rather than hypothetical.

Market Movements and Corporate Strategies

The commercial landscape is responding in real-time. Aon, a key player in the insurance sector, has launched an AI Risk Diagnostic tool. This initiative arose after businesses lacking documented AI oversight frameworks experienced coverage denials at renewal—a clear indication that governance gaps can have tangible consequences in the market. This diagnostic aligns with impending obligations from the EU AI Act, effective August 2026, signaling a comprehensive shift in risk assessment strategies.

In the corporate realm, Old Republic International Corporation has appointed John Paulk as the new chief operating officer for its Excess & Surplus division. According to Craig Smiddy, Old Republic's president and CEO, Paulk's extensive experience and understanding of the specialty E&S market will be vital in navigating the evolving risk environment.

The Excess & Surplus segment is surging, boasting a premium growth of 2.8% year-over-year, with total premiums hitting $47.6 billion in the first half of 2026, as reported by the Wholesale & Specialty Insurance Association. This uptick signals profitable opportunities but also presents challenges for brokers negotiating coverage across varying rates within property and liability lines.

International Focus and Claims Management

Crawford & Company, the leading independent claims management provider, has fortified its presence in Colombia by integrating Asegúrate’s professional team. This strategic move enhances Crawford's capabilities in P&C, marine, loss control, and risk management. With growing Latin American exposure, claims-handling proficiency is imperative for brokers advising clients in this region.

Andrew Bart, CEO of International Operations at Crawford, stated that this move reflects their long-term confidence in the Colombian insurance market, underscoring broader trends impacting claims operations globally.

In a notable internal move, Inszone Insurance Services has promoted Nathaniel Jackson to director of IT and development, continuing its trend of internal advancement. Inszone has distinguished itself as a significant player in the M&A landscape, having executed 137 deals and ranking among the top three US broker acquirers in 2025—highlighting its influence and operational scale in the current market.

These developments illustrate a significant evolution in the insurance industry, where brokers must remain vigilant and adaptable in the face of rapidly shifting dynamics around AI liability and governance.