The Matrix

A recent study by Gallagher Re, published in association with MIT and Testudo Global Inc., reveals a troubling reality for enterprises deploying artificial intelligence: traditional insurance policies are failing to cover AI-native liabilities, and the vendors supplying AI tools are structured to avoid bearing these risks. The Gallagher report, Smart Systems, Blind Spots: Rethinking Insurance for the AI Era , finds that the pace of AI adoption has outstripped the insurance industry's capacity to develop responsive products, leaving organizations exposed to a growing class of uninsured liabilities.

Data breaches in the healthcare industry are a costly and legally evolving issue. The sophistication of threat actors and their ability to navigate IT systems using constantly changing tactics has made it difficult to predict and, in some cases, respond to a breach. The recent aggressive enforcement by the Federal Trade Commission (the “FTC”) of its Health Breach Notification Rule (the “HBNR”), as well as its proposed changes to the HBNR, have expanded the factors companies must consider when analyzing and responding to potential breaches of health data.