QBE North America announced its launch of artificial intelligence focused cyber insurance coverages for AI regulatory compliance and LLMjacking.

“AI brings incredible opportunities for businesses as well as new risks that traditional cyber insurance policies may not cover,” said Meredith Brown, head of U.S. Cyber and Errors & Omissions at QBE North America, in a company press release. “QBE is committed to developing and offering insurance solutions that keep pace with rapid innovation like AI, so businesses have the comprehensive protection they need.”

The new cyber coverages address two emerging risks. AI regulatory compliance is a growing risk area, particularly as the EU AI Act takes effect and several U.S. states are also developing AI regulations that will increase compliance requirements and scrutiny around the use of AI for business. QBE said in the press release that its protection provides coverage for fines, penalties and defense costs for evolving regulations.

Another emerging risk area is LLMjacking. This is a type of cyber attack in which threat actors use stolen credentials to access cloud-hosted large language models, or LLMs. Once they have access, these threat actors exploit the computing resources required to run LLMs. QBE said its protection covers increased service fees when threat actors access AI resources, as well as the costs to retrain compromised models.

This comes QBE’s launch last year of QCyberProtect, a cyber policy designed to enhance cyber resilience for a range of organizations, from mid-sized companies relying on fully outsourced IT departments to global corporations with large-scale IT systems.

Source: QBE North America