CSIS researcher Gregory C. Allen argues that insurance has become the de facto regulator of AI deployment in the United States, noting state commissioners have approved over 80% of corporate requests to exclude AI-related damages from policies. He warns that without federal intervention, such as an incident database, federal-state coordination, or a catastrophic-loss backstop, insurers retreating from AI risk coverage will brake American AI adoption rather than govern it responsibly, contrasting this with China’s more deliberate policy of expanding AI insurance capacity.
