London, 22 January 2025: The Lloyd’s Market Association (LMA) has published survey findings on AI-related loss scenarios in professional indemnity, cyber, product recall and accident and health, capturing underwriters’ views on potential viability, loss magnitude and overall impact. 

With AI rapidly embedding into business operations, the LMA’s Understanding AI Exposures: AI Loss Scenarios Survey Results provides a high-level picture of where underwriters believe some exposures may emerge and how these risks may evolve as adoption increases. 

Key findings from the survey include: 

• Underwriters rated professional indemnity as the highest potential impact scenario, reflecting widespread use of AI tools in professional services and the possibility of sizeable losses where erroneous advice or analysis causes a loss.  

• Computer system downtime caused by AI malfunction was viewed as plausible by cyber risk underwriters, with overall impact moderated by confidence in insureds’ risk management.  

• The product recall loss scenario was considered highly unlikely at present due to limited use of AI in design and manufacturing, though adoption is expected to grow.  

• The accident and health self-driving vehicle scenario was assessed as plausible, with mixed views on potential loss severity. 

David Powell, Head of Technical Underwriting at the LMA, said: “Use of AI software is accelerating across every sector and underwriters are already seeing early indicators of how these technologies could contribute to future claims. 

“This opinion survey demonstrates that, while current levels of concern remain moderate overall, there is a clear expectation that exposures will grow as AI becomes more deeply embedded in operational and decision-making processes.  

“The findings will help inform further market discussion on how best to assess, manage and underwrite these emerging risks.” 

The survey, conducted in mid-2025, received 144 responses from managing agents, 94% of which came from underwriters. Respondents were asked to assess the viability, potential magnitude and overall impact of specified AI loss scenarios and provide views on insureds’ current use of AI and associated risk management practices. 

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Notes to Editors 

The observations in this report do not relate to specific losses, wordings or exclusions. An authoritative view on coverage or exclusion of losses arising from a specific loss would require a review of the facts and circumstances and application of the policy wording(s) used. 

Media relations contacts 

LMA: 

Carole Porter, Head of Marketing and Communications | +44 20 3307 3947 | Email: carole.porter@lmalloyds.com  

Omnia Partners: 

Victoria Sisson, Director | +44 794 129 4872 | Email: victoria.sisson@weareomniapartners.com  

About the Lloyd’s Market Association (LMA) 

The Lloyd’s Market Association (LMA) exists at the very heart of Lloyd’s, a world-leading global marketplace for complex risk where solutions to challenges are delivered every day. The Lloyd’s Market Association represents the interests of 59 Lloyd’s managing agents and members’ agents. 

We represent our members’ interests to organisations including governments, regulators, and the market’s central supporting body, the Corporation of Lloyd’s. We provide professional and technical expertise in areas ranging from model policy wordings to the implementation of innovative technologies. We connect with our members to identify and resolve issues facing the market, and work in partnership with Lloyd’s and the other market associations to influence initiatives and outcomes. We operate the market’s most comprehensive technical education service, the LMA Academy. For more information visit: www.lmalloyds.com.