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Insurtech Relm introduced 3 new AI-focused insurance products

Relm Insurance introduced 3 new AI-focused insurance products

Bermuda-based Relm Insurance has introduced three new AI-focused insurance products to manage risks associated with AI use in business operations.

Relm Insurance is the leading specialty insurance carrier serving emerging industries, including digital assets & Web3, AI, the space economy, fintech, and beyond. Insurtech provide more than just risk protection, we make innovation resilient.

The products—NOVAAI, PONTAAI, and RESCAAI—are tailored for companies leading in AI technology or integrating AI into their services.

The NOVAAI Cyber and Tech E&O policy targets AI platform providers and companies offering AI-based products or services.

It provides liability coverage for AI-related software risks, including liabilities from AI products and services, media liability for AI-generated content, and regulatory compliance issues.

The PONTAAI Excess DIC Wrap policy is designed for organizations exposed to third-party liability risks linked to AI development or use, especially where existing policies may exclude AI-related risks. It covers a wide range of exposures, including bodily injury, AI regulation breaches, discrimination, intellectual property issues, privacy violations, professional negligence, and property damage.

RESCAAI, the first-party response policy, addresses risks faced by companies embedding third-party AI solutions in their operations. It covers business interruption, reputational harm, product recall expenses, and incident response costs.

Relm identifies key “emerging risks” associated with AI, such as regulatory complexity, cybersecurity concerns, algorithmic accountability, bias liability, and silent AI risks where policy coverage is unclear.

Relm’s CEO, Joseph Ziolkowski, stated that AI’s rapid adoption has created a growing need for insurance solutions tailored to its unique risks.

He emphasized the importance of providing businesses with clarity and confidence to innovate with AI responsibly, filling gaps left by traditional insurance.

The rapid advancement and widespread adoption of AI have created a critical need for insurance solutions that specifically address the unique risk exposures arising from its integration into core technology, systems and workflows.

Joseph Ziolkowski, Relm founder and CEO

“Our aim is to provide clarity and confidence in an area where traditional approaches fall short, enabling businesses to innovate with AI securely and responsibly.”

In October 2024, Relm expanded its offerings to include coverage for Web3-related risks.

Relm’s new product suite is designed to provide tailored coverage for the dynamic companies creating and adopting AI technology. A snapshot of emerging insurance industry issues is outlined below.

  • Regulatory Complexity
    The rapidly evolving regulatory landscape for AI, including frameworks such as the EU’s AI Act, US state-level legislation, and other jurisdiction-specific guidelines, creates significant challenges for companies and insurers alike. These regulations introduce uncertainty around compliance, liability, and governance, with varying interpretations and enforcement standards across regions. Insurers must navigate these complexities to design policies that align with both current and anticipated regulatory requirements while providing clarity and protection for AI adopters.
  • Cybersecurity Implications of AI Integration
    AI systems, while improving efficiency, can also introduce vulnerabilities like susceptibility to adversarial attacks or data breaches. Insurers need to evaluate how these risks affect both first-party exposures (to the insured) and third-party liabilities (to customers or partners).
  • Algorithmic Accountability and Bias Liability
    As companies integrate AI into decision-making processes, insurers face challenges in assessing liability for unintended consequences, such as algorithmic bias or discriminatory outcomes. Questions about who is accountable — developers, users, or third-party vendors — create complexities in underwriting and claims handling.
  • Silent AI Risk
    The lack of clarity around AI-related exposures in traditional insurance policies has given rise to ‘silent AI risk’, where coverage intentions are neither explicitly affirmed nor excluded. This ambiguity leaves organizations uncertain about their protection against AI-related liabilities and can result in significant uncovered exposures. Insurers are now tasked with addressing these gaps by providing affirmative coverage tailored to AI risks, ensuring transparency and confidence for businesses integrating AI into their operations.

The rapid advancement and widespread adoption of AI have created a critical need for insurance solutions that specifically address the unique risk exposures arising from its integration into core technology, systems, and workflows” said Joseph Ziolkowski, CEO and Founder of Relm Insurance. “Our aim is to provide clarity and confidence in an area where traditional approaches fall short, enabling businesses to innovate with AI securely and responsibly.