The rapid adoption of artificial intelligence by investment managers and financial services firms is prompting insurers to rethink how cyber risks are assessed, priced and covered, as autonomous systems and AI-generated errors create potential gaps in traditional insurance policies. According to a recent analysis by ACA Group, cyber insurers are responding in different ways, with some tightening policy language and introducing AI-related exclusions, while others offer incentives to organisations that use AI to strengthen cybersecurity defences. The key question for companies is no longer simply whether AI is covered, but which AI applications are covered, under which policy and subject to what conditions. Traditional cyber policies are generally designed around events such as unauthorised access, data compromise, system intrusion and business interruption, creating uncertainty when an AI system causes a loss without a conventional cyberattack. For instance, an autonomous AI system could modify a database, delete records or trigger an unauthorised transaction without an external attacker. Such incidents may not fit neatly within traditional policies because the loss does not necessarily result from hacking or data theft. This is particularly relevant to agentic AI, which can make decisions and execute tasks with limited or no human intervention. Insurers are increasingly assessing how organisations govern and control their AI systems when underwriting policies, with AI inventories, documented risk assessments, adversarial testing or red-teaming, and human oversight influencing an organisation’s position during underwriting and renewal.