AI adoption is reshaping the cyber insurance market in two directions: insurers are penalizing companies that deploy AI without proper governance (adding exclusions and raising premiums), while rewarding those using AI-driven security tools with discounts. 42% of cyber insurance policies now include AI misuse exclusions, yet 86% of organizations report receiving premium discounts for using AI-based defenses. Insurers are moving from one-time questionnaires to continuous attack surface monitoring. Policy language is a growing concern—many contracts were written before generative AI went mainstream, creating patchwork coverage that may leave gaps during claims. Experts advise reviewing AI-specific scenarios with brokers before renewal, not during a claim.
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