This exploratory webinar supports attendees to better understand the current AI insurance market and how it relates to AI assurance and risk allocation.  

As AI becomes more prevalent, organisations face two interconnected challenges: ensuring their AI systems operate safely and reliably (AI assurance) and managing the financial risks when they don't (AI insurance). AI insurance and AI assurance are intrinsically connected through the challenge of risk allocation in our automated world. While AI assurance focuses on preventing problems before they occur, AI insurance provides financial protection when prevention efforts fall short.  

The assurance–insurance feedback loop 

This relationship creates a feedback loop: 

  • Effective AI assurance practices reduce insurance premiums by demonstrating lower risk profiles 
  • Insurance requirements drive organisations to implement stronger AI assurance measures 

Insurance companies evaluate an organisation's AI assurance practices when determining coverage and pricing, making assurance not just a technical necessity or compliance box-ticking exercise, but an economic advantage by linking the safety and security of AI systems with the insurance premium. 

Understanding this connection helps explain why AI insurance is emerging as a specialised form of coverage designed to address the unique risks that artificial intelligence creates in our increasingly automated world. You can read more about this relationship here. 

Market incentives for safer AI 

An important development in AI insurance is how it creates market incentives for safer and more secure AI development and deployment. Insurance premiums effectively price different levels of AI risk, organisations with robust AI governance, testing protocols, and monitoring systems pay lower premiums than those with weaker safeguards.  

This pricing mechanism creates a natural economic incentive for organisations to invest in AI safety measures. Companies that implement comprehensive model risk management of AI models akin to SR-11-7 / SS1/23, maintain detailed audit trails, and establish clear governance protocols find themselves rewarded with lower insurance costs. 

Why now 

With academic articles titled ‘Insuring AI: Incentivising Safe and Secure Deployment of AI Workflows’ gaining traction and a new £2m academic-industry partnership between Axa and University of Edinburgh set to develop novel methods to understand, measure, and ultimately insure against risk associated with the commercial application of AI this space is set to grow. 

 Join the conversation and learn more with us this February. 

For further information on the digital ethics and AI assurance programming at techUK please email [email protected] 

Tess Buckley

Tess Buckley

Senior Programme Manager in Digital Ethics and AI Safety, techUK


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Meet the team 

Sue Daley OBE

Sue Daley OBE

Director, Technology and Innovation

Laura Foster

Laura Foster

Associate Director - Technology and Innovation, techUK

Kir Nuthi

Kir Nuthi

Head of AI and Data, techUK

Rory Daniels

Rory Daniels

Head of Emerging Technology and Innovation, techUK

Tess Buckley

Tess Buckley

Senior Programme Manager in Digital Ethics and AI Safety, techUK

Usman Ikhlaq

Usman Ikhlaq

Programme Manager - Artificial Intelligence, techUK

Chris Hazell

Chris Hazell

Programme Manager - Cloud, Tech and Innovation, techUK

Elis Thomas

Elis Thomas

Programme Manager, Tech and Innovation, techUK

Ella Shuter

Ella Shuter

Junior Programme Manager, Emerging Technologies, techUK

Harriet Allen

Harriet Allen

Programme Assistant, Technology and Innovation, techUK

Sara Duodu  ​​​​

Sara Duodu ​​​​

Programme Manager ‑ Quantum and Digital Twins, techUK