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Coalition Adds New Affirmative Artificial Intelligence Endorsement to Cyber Insurance Policies

SAN FRANCISCOMarch 26, 2024 — Coalition, the world's first Active Insurance provider designed to prevent digital risk before it strikes, today announced it has added a new Affirmative Artificial Intelligence (AI) Endorsement to clarify what is covered by its U.S. Surplus and Canada Cyber Insurance policies. 

The new endorsement expands the definition of a security failure or data breach to include an AI security event, where artificial intelligence technology caused a failure of computer systems’ security. The new Affirmative AI Endorsement language also expands the trigger for a funds transfer fraud (FTF) event to include fraudulent instruction transmitted through the use of deepfakes or any other artificial intelligence technology.

"As threat actors adapt their attack strategies by incorporating AI, Coalition’s Affirmative AI Endorsement introduces important clarity around how incidents are covered when AI is involved,” said Shawn Ram, Coalition’s Head of Insurance. “Coalition is at the forefront of evolving cyber insurance coverage to address this ever-changing risk ecosystem. While FTF and data breach coverages have always been cornerstones of our policies, this new endorsement gives brokers confidence that they’re offering their clients the most comprehensive cyber coverage – and provides policyholders with peace of mind.”

Cybersecurity trends point to attackers using generative AI tools in the wild to launch more sophisticated cyber-attacks and potentially extort larger amounts of money from victims. Coalition uses these insights to inform its underwriting and coverage approach to help better protect policyholders against digital risks. 

"AI is revolutionizing and supercharging technology worldwide, and while it’s emboldening attackers to create more personalized attacks en masse, we continue to believe AI has huge potential to empower defenders and strengthen cyber and insurance protections,” said Tiago Henriques, Coalition’s Head of Research. “At Coalition, we recognize AI technologies are an important part of the future of technology and digital risk, and this is a big step in pushing forward our insurance product to keep pace with the advancements happening in the digital-first world.”

In 2023, Coalition introduced CoalitionAI™, an initiative to deploy generative AI and large language models (LLMs) to help brokers and businesses address cyber risk through collaborative chat copilots. Since then, Coalition has also integrated AI to improve the fidelity of its underwriting, be more precise about risk segmentation, and enhance the quality of its customer service.

Coalition’s AI Endorsement can now be added to any U.S. Surplus and Canada Cyber Insurance policies. To learn more, visit:

About Coalition

Coalition is the world's first Active Insurance provider designed to help prevent digital risk before it strikes. By combining comprehensive insurance coverage and cybersecurity tools, Coalition helps businesses manage and mitigate digital risks. Coalition offers its Active Insurance products in the U.S., the U.K., Canada, and Australia through relationships with leading global insurers and cyber capacity through its own carrier, Coalition Insurance Company. Coalition's Active Risk Platform provides automated security alerts, threat intelligence, expert guidance, and cybersecurity tools to help businesses worldwide remain resilient against cyber attacks. Headquartered in San Francisco, Coalition is a distributed company with a global workforce that collaborates digitally and in office hubs.

Insurance products are offered by Coalition Insurance Solutions Inc. (“CIS”), a licensed insurance producer and surplus lines broker with its principal place of business in San Francisco, CA (Cal. license #0L76155), acting on behalf of a number of unaffiliated insurance companies and available on an admitted basis through Coalition Insurance Company (“CIC”) a licensed insurance underwriter (NAIC # 29530). Insurance products offered through CIS and CIC may not be available in all states. Complete license and carrier information is available here. CIS may receive compensation from an insurer or other intermediary in connection with the sale of insurance. All decisions regarding any insurance products referenced herein, including approval for coverage, premium, commission, and fees, will be made solely by the insurer underwriting the insurance under the insurer’s then-current criteria. All insurance products are governed by the terms, conditions, limitations, and exclusions set forth in the applicable insurance policy. Please see a copy of your policy for the full terms, conditions, and exclusions. Copyright © 2024. All rights reserved. Coalition and the Coalition logo are trademarks of Coalition, Inc. or its affiliates.