Insurers grapple with data center risks as AI drives soaring demand — report

Traditionally, cyber and property policies have absorbed much of the exposure. But the interconnectedness of cloud services and the concentration of providers such as Amazon Web Services means a single point of failure could generate correlated claims on a scale comparable to a natural catastrophe. Many carriers have already tightened terms, applying sublimits, exclusions or aggregate caps to systemic cyber and cloud risk. Others have left coverage silent, effectively shifting more of the burden back to clients.

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