Relm Insurance Ltd, the pioneering specialty carrier domiciled in Bermuda, has launched three artificial intelligence insurance products.

With AI increasingly interwoven in company supply chains, Relm said, the risk profile is evolving rapidly.

The new products are a cyber and tech errors and omissions policy, an excess difference in conditions wrap policy, and a first-party response policy.

“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, chief executive and founder of Relm.

“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.”

Relm said its new products are designed to provide comprehensive coverage for these emerging risks, both for businesses creating and integrated with AI, and those using AI in peripheral ways.

Claire Davey, head of product innovation and emerging risk at Relm, said: “We’re aware that AI risks are not homogeneous ‒ how organisations use AI technology plays a significant role in shaping the risk vectors.

“This is why we released a suite of three products, each specifically designed to respond to the different use cases of AI technologies.”

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.

The company said these regulations introduce uncertainty around compliance, liability, and governance, with varying interpretations and enforcement standards across regions.

Insurers are required to navigate the complexities to design policies that align with both current and anticipated regulatory requirements, while providing clarity and protection for AI adopters.