Relm Insurance Launches AI Liability Solutions to Address Emerging Risks in the AI Ecosystem
HAMILTON, Bermuda, Jan. 14, 2025 /PRNewswire/ -- Relm Insurance ('Relm'), the leading provider of innovative insurance solutions, is excited to announce the launch of three cutting-edge AI insurance products: NOVAAI, PONTAAI, and RESCAAI.
With artificial intelligence increasingly interwoven in company supply chains, the risk profile is evolving rapidly.
"The rapid advancement and widespread adoption of AI have created a critical need for insurance solutions that specifically address the unique risk exposures arising from its integration into core technology, systems, and workflows" said Joseph Ziolkowski, CEO and Founder of Relm Insurance. "Our aim is to provide clarity and confidence in an area where traditional approaches fall short, enabling businesses to innovate with AI securely and responsibly."
Relm's new products are designed to provide comprehensive coverage for these emerging risks, both for businesses creating and integrated with AI, and those using AI in peripheral ways.
Claire Davey, Head of Product Innovation & Emerging Risk at Relm, said, "We're aware that AI risks are not homogenous -- how organizations use AI technology plays a significant role in shaping the risk vectors. This is why we released a suite of three products, each specifically designed to respond to the different use cases of AI technologies."
This product launch comes after Relm became the first specialty insurer for innovative industries with a 50-state MGA, and announced the hiring of industry veteran Keith Lavigne as Head of Underwriting - US.
An overview of the products, their applicable users, and coverage highlights are below.
Artificial Intelligence Product Suite
NOVAAI
PONTAAI
RESCAAI
Overview
Overview
Overview
Cyber and Tech E&O policy Excess Difference in Conditions (DIC) Wrap
policy First-party response policy
Applicable Users
Applicable Users Applicable Users
1. AI platform companies. Organizations with third-party liability 1. Organizations that use
exposure due to their AI use or development, third party AI for business
but whose existing liability programs may operations.
exclude AI.
2. AI-based product and service companies who have a liability and cyber security exposure as a result of the AI 2. Organizations that embed
software they are developing and selling. third-party AI solutions
within their own products.
Coverage Highlights
Coverage Highlights Coverage Highlights
1. Liability for AI tech products & services 'Artificial intelligence liability' arising
from: 1. Business Interruption
2. Media liability for AI generated content
2. Reputational Harm
3. AI regulatory liability cover
1. Professional negligence 3. Product Recall Expenses
4. Discrimination exclusion carveback
2. IP Infringement 4. Incident Response Costs
5. AI regulatory liability cover
3. Personal injury
6. 'Deep-fake' digital crime cover
4. Discrimination
5. Privacy breach
6. Bodily injury
7. Property damage
8. Violation of AI regulations
Note to editors: A Snapshot of Emerging Insurance Industry Issues
Relm's new product suite is designed to provide tailored coverage for the dynamic companies creating and adopting AI technology. A snapshot of emerging insurance industry issues is outlined below.
Regulatory Complexity
The rapidly evolving regulatory landscape for AI, including frameworks such as the EU's AI Act, US state-level legislation, and other jurisdiction-specific guidelines, creates significant challenges for companies and insurers alike. These regulations introduce uncertainty around compliance, liability, and governance, with varying interpretations and enforcement standards across regions. Insurers must navigate these complexities to design policies that align with both current and anticipated regulatory requirements while providing clarity and protection for AI adopters.
Cybersecurity Implications of AI Integration
AI systems, while improving efficiency, can also introduce vulnerabilities like susceptibility to adversarial attacks or data breaches. Insurers need to evaluate how these risks affect both first-party exposures (to the insured) and third-party liabilities (to customers or partners).
Algorithmic Accountability and Bias Liability
As companies integrate AI into decision-making processes, insurers face challenges in assessing liability for unintended consequences, such as algorithmic bias or discriminatory outcomes. Questions about who is accountable -- developers, users, or third-party vendors -- create complexities in underwriting and claims handling.
Silent AI Risk
The lack of clarity around AI-related exposures in traditional insurance policies has given rise to 'silent AI risk', where coverage intentions are neither explicitly affirmed nor excluded. This ambiguity leaves organizations uncertain about their protection against AI-related liabilities and can result in significant uncovered exposures. Insurers are now tasked with addressing these gaps by providing affirmative coverage tailored to AI risks, ensuring transparency and confidence for businesses integrating AI into their operations.
About Relm Insurance
Relm Insurance Ltd. (Relm) is a Bermuda-domiciled specialty insurance carrier supporting emerging industries that spur innovation and next-generation technologies. Launched in 2019 to address the scarcity of insurance capacity available to these high-growth markets, Relm plays an active role in bolstering the resilience of these innovative industries.
Relm's unrivaled industry expertise and solutions-driven track record makes it a highly sought-after risk partner for businesses and institutions operating at the forefront of various industries including Web3, digital assets, AI, biotech, and the space economy. Relm has earned a Financial Stability Rating of A, Exceptional, from Demotech.
Visit www.relminsurance.com for more information.
Media Contact:
Vaibhav Kumar, RF|Binder
vaibhav.kumar@rfbinder.com
+1 (678) 200-5642
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SOURCE Relm Insurance
