Annual insurance reviews cannot keep up with shifting technology exposures, according to Knightcorp Insurance Brokers.

CEO Trent Brown says the pace of technology advances is creating opportunity, but that speed means a business can change faster than the systems around it.

“A new platform, AI capability or automated process can introduce dependencies and exposures that were never consciously accepted,” he said.

The brokerage’s placement team has compiled a matrix showing which exposures matter most and where cover may be harder to place, with AI and automation error rating as critical alongside the risk of emerging claims and uncertainty about coverage.

Mr Brown says market-leading businesses rarely wait for certainty, but they need to understand what they are taking on and ask if their risk and insurance arrangements reflect their operations.

Clients with professional indemnity insurance should not assume it covers an AI-related claim, and should ask their brokers to confirm this in writing, according to Knightcorp’s Forerunner Report, which has a broker checklist for AI exposure.

The report says environmental, social and governance (ESG) is becoming a directors and officers liability issue, with unsubstantiated ESG statements carrying legal and reputational risk.

Insureds should check whether D&O cover excludes ESG claims.

Manufacturers and suppliers of consumer smart devices must meet mandatory security standards and should discuss the insurance implications with their brokers.

The report also says cloud and vendor platforms that are not declared, or that do not fit policy wording, can lead to disputed cyber claims.

The report can be downloaded here.