Testudo, a start-up supported by Lloyd’s of London through its innovation accelerator Lloyd’s Lab, has launched a technology and data platform for underwriting insurance policies related to artificial intelligence risks.
The company, currently part of Cohort 14 of Lloyd’s Lab, developed its platform to address legal and financial exposures businesses face when deploying AI.
It provides real-time data on litigation, regulatory changes, and reported incidents involving AI, helping insurers and enterprises identify and assess risks often overlooked by traditional underwriting practices.
Testudo was established with backing from investors including LocalGlobe, A100x, Goldman Sachs partners, and Charlie Songhurst.
Artificial intelligence is transforming work and silently redefining liability exposures. Our data shows the compound annual growth rate of AI litigation is growing exponentially, increasing over 53% in 2023 alone after the launch of ChatGPT in November 2022.
Hundreds of millions in fines and settlements have been awarded in that time, yet most enterprises are flying blind.
“Copyright and IP infringement lawsuits are not the only risk despite making media headlines. Our data shows breach of contract, invasion of privacy, and fraud or misrepresentation are top causes of legal action”, insurtech said.
The company also received support through accelerators such as A&O Shearman’s Fuse, Jones Day’s FinAccelerate, and Plug and Play. Its pre-seed funding round closed in 2024.
The company’s CEO, George Lewin-Smith, previously worked on emerging technology initiatives at Goldman Sachs in London and San Francisco.
Other founding team members have experience implementing AI systems and developing trading products. Mark Titmarsh, Head of Insurance, brings over a decade of experience in underwriting and broking innovative risk products.
Testudo plans to launch insurance offerings for enterprise clients by the end of 2025. Its approach allows insurers and brokers to use the platform without direct integration into clients’ AI systems, which simplifies adoption and supports scalability.
The system includes tools for risk scoring and liability reporting, enabling risk managers to better understand potential exposures.
The company’s data shows that AI-related litigation has increased sharply, particularly in California, Illinois, New York, Texas, and Delaware.
In Q1 2025, generative AI lawsuits rose 23% year-over-year, and filings between January and April were up 81% compared to the same period in 2024. Settlements in these cases average $4mn.
Although copyright and intellectual property receive much attention, the most frequent legal claims involve breach of contract, privacy violations, and misrepresentation.
Common sources of disputes include customer service tools, marketing content generators, and recommendation engines. Insurers have increasingly challenged AI-related claims, as many existing policies do not account for such risks.
Deloitte forecasts suggest AI-related insurance premiums could reach $4.7bn per year by 2032.
Testudo’s goal is to provide underwriting solutions that match the pace of technological and legal changes in AI.
According to Lloyd’s Chief Commercial Officer and CEO Americas, Dawn Miller, the initiative represents a broader effort to create new premium opportunities and improve efficiency in the Lloyd’s market.
She added that the development of these products contributes to strengthening the industry’s long-term ability to respond to emerging risks.
