Here's your monthly digest of must-read insurance and AI updates, real-world use cases, and emerging innovations, with new articles added each week.
News: White House weighing FDA-style vetting for AI models
The root of it: National Economic Council Director Kevin Hassett told Fox Business the White House is studying an executive order that would create a vetting system for new AI models, comparing the process to FDA drug approval. The push follows Anthropic's Mythos model, which can identify cyber vulnerabilities. For carriers writing cyber, E&O, and tech-related coverage, a federal pre-release safety regime could change how AI-related risk is rated and excluded. The story is early, with no executive order text yet released.
News: Capgemini names Roots AI a key example in its 19th annual P&C insurance report
The root of it: Capgemini's 19th annual World P&C Insurance Report — drawing on 344 senior executives, 809 employees, and 1,113 policyholders across the Americas, Europe, and Asia-Pacific — highlighted Roots and tapped Co-Founder & CEO Chaz Perera as an executive steering committee member alongside CIOs and CDOs from The Hartford, Intact, Markel, and Arch Insurance. The report identifies a small group of intelligence trailblazers achieving up to 21% higher revenue growth and 51% greater share price gains over three years by treating AI as a core operating capability.
News: AI seen as near-term underwriting risk for cyber insurers
The root of it: Fitch Ratings says US cyber insurers reversed two years of decline in 2025 to post 11% growth in direct written premiums, but flags AI as a near-term underwriting concern. Fitch points to Anthropic's Mythos model as a force that will likely create more vulnerabilities than patches in the short to medium term. Fitch wrote that AI is particularly disruptive to cyber risk because traditional vulnerability analysis was labor-intensive and offered limited financial upside for researchers, a gap AI now fills at scale. Volume drove most of the cyber market's growth, with policies-in-force up 35% offsetting soft pricing.
News: Carriers carve AI out of standard liability coverage
The root of it: Berkshire Hathaway, Chubb, and Travelers asked state regulators to exclude AI-related damages from general liability policies, and regulators approved more than 80% of those requests. Florida, Connecticut, and Maryland led approvals, with exclusions taking effect as early as January. Some carriers including Berkley introduced absolute AI exclusions across D&O, E&O, and cyber lines. Munich Re plus startups Corgi, Armilla, Mayflower Specialty, and Embroker are stepping in with standalone AI liability policies offering limits from $2 million to $50 million.
News: Insurer AI returns blocked by weak governance
The root of it: Grant Thornton's 2026 AI Impact Survey found 44% of insurance executives say governance or compliance challenges have contributed to AI projects failing or underperforming. Only 24% are very confident they could pass an independent AI governance review in 90 days. At the same time, 52% credit AI with revenue growth, 62% report better decision-making, and half say it has cut costs. About 61% of executives say their boards have established AI governance policies, but Grant Thornton notes the evidence and controls are often fragmented across teams and tools.
News: AI-manipulated photos showing up across claim types
The root of it: IA Magazine reports that AI-generated and manipulated content is showing up in claims across personal lines, commercial lines, and specialty coverages, from inflated home damage photos to staged car accidents and synthetic medical scans. Insureds are filing legitimate claims and using deepfake imagery to inflate damages, including AI-manipulated photos of luxury items. The article reinforces what Verisk has separately reported, that traditional review methods were not designed for synthetic media. IA Magazine writes that independent agents now have a more active role in fraud detection by verifying damage and contractor work directly with insureds.
Read our 2026 State of AI Adoption in Insurance Report for insights and perspectives on AI adoption from insurance executives.