NIBA / Special Feature
resilience to downtime, human oversight, and governance frameworks are now critical underwriting factors.” For Dr Neary, the key to implementing and using AI in your business – ethically and responsibly – is taking time to think. “It sounds simple, but there have been court cases where evidence has been presented that simply did not exist. You need to think about whether something’s correct or not. Has AI made a mistake? Has the wrong data been inputted? Where’s the data being stored? “Thinking is essential to using AI successfully – human in the loop is important. A broker leveraging AI will be able to add even greater value, because
they bring all their skills, and thinking and knowledge to bear, rather than spending time making simple decisions or doing straightforward tasks.” Weaver believes using AI is now a must – and the biggest ethical challenge is achieving balance. “The genie’s out of the bottle – SMEs already rely on AI. Avoiding it can mean slower service, less personalisation, and worse customer outcomes. But using AI without safeguards risks bias and unintended consequences. Businesses have a responsibility to embrace AI’s benefits while managing exposures, ensuring it’s the right tool for the right problem.”
Few policies exclude AI outright, but ambiguity remains. SMEs need to be aware that different insurers will take different approaches – with a number of tech focussed carriers already offering affirmative coverage for AI exposure. The next evolution of cover will be broader protection, with the first party losses and efficacy of the AI solutions themselves a key area.” When assessing AI-related risks, Weaver says clarity is key. “Underwriters want clarity on AI use cases, hosting setup, and data control,” he says. “If sensitive data is shared with public generative AI tools, it raises red flags. As AI becomes central to SME operations, the
50 / INSURANCE ADVISER OCTOBER 2025
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