Life Insurance Australia

Australian Life Insurance Quotes and Resources

Life Insurance Australia :: News

Share this news item!

Potential AI Errors: A Looming Challenge for Insurers

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Industry experts are signaling a potential risk for underwriters due to claims arising from inaccuracies produced by artificial intelligence (AI), likening it to the "silent cyber" phenomenon of the past.

Clyde & Co partner, Darryl Smith, highlights the issue, emphasizing how AI inaccuracies could impact various insurance policies, sometimes without immediate detection.

The comparison to "silent cyber" recalls previous instances when insurers faced substantial losses because cyber incidents like ransomware were unintentionally covered by non-cyber policies. Mr. Smith advises that policy proposal and renewal forms should scrutinize the use of AI by asking specific questions about its application and purpose.

While AI is becoming integral to a wide array of professional services, its reliability varies, and errors can lead to significant insurance claims. These concerns mirror those previously seen with cyber risks, and although solutions such as exclusions might deter policyholders, they could also lead to new opportunities for tailored coverage solutions.

The potential vulnerabilities mainly threaten professional indemnity and errors and omissions policies, as errors often remain unnoticed for extended periods, potentially intensifying the impact of claims. Furthermore, directors’ and officers’ policies may also face risks of claims related to intellectual property breaches, defamation, or misuse of personal information.

In the future, the insurance sector might evolve to establish dedicated AI policies, minimizing unforeseen exposures similar to the asbestos precedent, which, despite not receiving any premiums, resulted in substantial costs to insurers. AI remains a pervasive factor within numerous organizations, and any associated errors could lead to significant claims.

In navigating this landscape, insurers are encouraged to proactively address these issues and explore new insurance policy structures to safeguard against unanticipated AI-related claims.

Published:Thursday, 24th Apr 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Australian Insurers Under Fire for Steep Premium Increases

30 Jan 2026: Paige Estritori

In recent times, Australian insurance companies have come under intense scrutiny due to substantial increases in premiums, even as they report record profits. This trend has raised concerns among consumers and policymakers alike, prompting calls for enhanced transparency and competition within the industry. - read more

Rising Insurance Costs in Northern Australia Despite Reinsurance Efforts

30 Jan 2026: Paige Estritori

Homeowners in Northern Australia are confronting significant increases in insurance premiums, even after the implementation of the federal government's cyclone reinsurance pool aimed at reducing costs in cyclone-prone regions. This development raises questions about the effectiveness of current measures and the ongoing challenges in making insurance affordable for residents in high-risk areas. - read more

Lack of Transparency in Insurance Premium Increases Concerns Consumers

30 Jan 2026: Paige Estritori

Australian consumers are increasingly facing substantial hikes in their insurance premiums, often with little to no explanation from their providers. This lack of transparency has led to growing frustration and calls for greater accountability within the insurance industry. - read more

AIA Australia's New Partnerships to Encourage Cycling Among Members

30 Jan 2026: Paige Estritori

AIA Australia, a prominent life, health, and wellbeing insurer, has announced strategic partnerships with global fitness company Peloton and premium cycling brand Specialized. These collaborations aim to motivate AIA Vitality members to adopt more active lifestyles by providing significant discounts on cycling equipment. - read more

Bupa's Strategic Expansion into Mental Health Services

29 Jan 2026: Paige Estritori

Bupa, a leading health insurer in Australia, has unveiled plans to significantly enhance mental health services by establishing a network of clinics named Mindplace. This initiative aims to open 60 clinics nationwide by 2027, aligning closely with the government's objective of operating 61 walk-in Medicare Mental Health Centres by mid-2026. - read more

Click for more Insurance News

Life Insurance Articles

Understanding Life Insurance: How to Determine Coverage Amounts

Life insurance is a cornerstone of financial planning, offering peace of mind to you and security for your loved ones. It's a contract between you and an insurance company: in exchange for regular premiums, the insurer agrees to pay a sum of money to designated beneficiaries upon your passing. This vital tool ensures that your family's financial needs can be met during an incredibly difficult time. - read more

Trauma Cover: Calculating Adequate Protection for Life's Unexpected Moments

The financial fabric of our lives consists of both planning and safeguarding against the unforeseen. Trauma cover, a lesser-known but crucial aspect of personal insurance, provides this protection by offering a lump sum payment upon diagnosis of specific serious illnesses or injuries. In the tapestry of financial planning, it acts as a vital safety net, ensuring that unexpected health crises do not lead to monetary distress. - read more

Top 5 Reasons to Consider Life Insurance While You're Young

When you’re young, life is all about new experiences and making plans for a promising future. While factors like travel, career, and relationships often take centre stage, one aspect often overlooked is life insurance. It might seem like something to consider later in life, but starting a policy while you're young can be a savvy financial move. - read more

The Impact of Parenthood on Your Life Insurance Choices

Life insurance, a contract between an insurer and a policyholder, is designed to provide financial protection to loved ones in the event of the policyholder's death. For parents, this protection takes on a new level of significance. The birth of a child heralds a profound shift in priorities, with a focus on safeguarding the future of one's family. Hence, understanding life insurance options becomes a crucial aspect of responsible parenting. - read more

How to Prepare for a Hassle-Free Life Insurance Claim

Being prepared when it comes to life insurance claims can make a world of difference. Proper preparation helps you prevent delays and denials, ensuring that your loved ones receive the financial support promised by your policy without unnecessary hold-ups. By paying attention to the details, you can streamline the claims process, giving you and your family peace of mind during what is already a stressful time. - read more

Start Here !

Apply now for your free Insurance assessment and price comparisons!

Knowledgebase

Insurance Claim:
Notification to an insurance company requesting payment of an amount due under the terms of the policy.

This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.

IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.