UK and US refuse to sign AI agreement, worrying insurers 

UK and US reject global AI agreement, sparking concerns over risks, fraud, and regulation in insurance.  

The UK and US governments have refused to sign a global artificial intelligence (AI) agreement, raising concerns about AI risks and how they affect the insurance industry. Their decision, which differs from 60 other nations – including France, China, and India – shows a growing divide in AI regulation. 

The agreement, discussed at a Paris summit, aimed to make AI development transparent, ethical, and secure. However, the UK government said it did not sign due to concerns about national security and issues around “global governance”. This signals a change in direction for the UK government which had championed AI safety under former prime minister Rishi Sunak. 

US vice president JD Vance also argued that too much regulation could slow down AI growth, saying the Trump administration wants “pro-growth AI policies.” 

This decision has raised worries in the insurance industry, which relies more and more on AI for underwriting, fraud detection, and risk assessment. Mark Kirby, professional services director at IT consultancy Intersys, warned that the lack of global safeguards puts insurers at risk: 

“The UK and US’s refusal to sign this AI agreement shows they are putting national and financial interests ahead of security,” Kirby said. “AI can process and create massive amounts of data, which increases risks. AI bias can cause unfair or incorrect decisions, making underwriting and claims assessments difficult. Also, AI-driven fraud – like deepfake scams and targeted phishing attacks – is a growing problem.” 

Another major issue is ‘data poisoning,’ where bad actors change AI data to manipulate results. Without global oversight, fraudulent claims could become harder to detect, identity verification could be weakened, and cyber threats could grow. Back in October 2024, figures suggested that as much as 42.5% of fraud attempts were AI-driven.

Unfortunately, the industry cannot wait for governments to agree on regulations. For insurers, a lack of universal AI rules means they must take action on their own. They need to include AI risk management in policies, fraud detection, and cyber coverage.  

As AI continues to change business practices, the lack of global standards leaves insurers facing more uncertainty. Now, the question is whether the UK and US will create their own AI rules – or risk falling behind in balancing innovation with security. 

“With AI continuing to shape the business world, insurers cannot afford to wait for governments to catch up,” added Kirby. 

Image credit: © Sanket Mishra from Pexels via Canva

Josie Geistfeld Josie is an editor for Claims Media. She welcomes feedback, comments, and opinion at josie.geistfeld@barkerbrooks.co.uk