MGU brings global insurers and reinsurers together in AI insurance facility

Managing general underwriter (MGU) Advanced Technology Assurance (ATA) has launched a new insurance facility offering up to $750m (£556m) of capacity to underwrite the global artificial intelligence (AI) infrastructure build-out.

The London-based firm said the facility was designed to support large-scale data centre and AI infrastructure projects, a market forecast to attract almost $7trn (£5.2trn) of investment by 2030, according to an article from McKinsey and Company.

ATA confirmed the facility launched with backing from a consortium of more than 10 global insurers and reinsurers, as well as Lloyd’s syndicates, including Arch Insurance International, Munich Re Specialty and Scor.

The aggregated capacity allows ATA to offer a single policy that brings together multiple lines of cover for complex AI infrastructure risks.

According to ATA, the proposition aims to address coverage gaps and clashes that can arise when insureds rely on multiple standalone policies across different classes. The policy integrates property, computer hardware, cargo and transit, cyber, technology errors and omissions, environmental liability and terrorism, with scope to expand further over time.

Michael Coles, chairman at ATA, said the MGU was taking an “ecosystem approach” to a fast-evolving risk landscape.

He said: “We’ve brought the capacity and expertise of the world’s top (re)insurers to one table to create one specialised policy that aggregates limits across traditional and new coverages. We’ll work closely with our (re)insurer partners to build out the team, meaningful line sizes, new specialised coverages and the risk engineering that keeps pace with the dynamism of these multibillion-dollar projects.”

Co-ordinated approach

ATA said the facility was aimed at blue-chip investors, lenders, developers, tenants, chip integrators and data centre operators involved in the AI build-out.

Alistair Blundy, chief executive and lead underwriter at ATA, said the MGU wanted to position itself as a lead market for the sector.

Blundy said: “Our new ATA policy is built for the entire AI sector, from the investors and lenders to the tenants, chip integrators and data centre operators. We wanted to be an insurance broker’s first call for all AI stakeholders, providing them with a clear, lead-line solution.”

Insurers supporting the facility highlighted the need for a more co-ordinated underwriting approach as AI-related infrastructure investment accelerates.

James Croome, head of fine art, specie and cargo at Arch Insurance International, said the facility provided “a single point of access for world-class capacity and a new standard in the market”.

Munich Re Specialty chief underwriting officer for cyber Tom Allen added that the facility enabled insurers to deploy capacity “at scale” to de-risk critical AI projects.