ATA launches $750m AI infrastructure risk facility

Advanced Technology Assurance has launched a first-of-its-kind insurance facility offering up to $750m of capacity to support the global artificial intelligence (AI) infrastructure build-out, a market forecast to attract close to $7trn of investment by 2030.

The facility, known as the ATA Global Data Center and AI Infrastructure Insurance facility, brings together capacity from more than 10 re/insurers and Lloyd’s syndicates, including Arch Insurance International, Munich Re Specialty and SCOR.

ATA said the aggregated structure allows it to offer a single, integrated policy designed to de-risk large, complex AI and data-centre projects that would previously have required multiple standalone covers.

Michael Coles, chairman of ATA, said: “We’re creating an ecosystem approach. We’ve brought the capacity and expertise of the world’s top re/insurers to one table to create one specialised policy that aggregates limits across traditional and new coverages. We’ll aim to work closely with our re/insurer partners to build out the team, meaningful line sizes, new specialised coverages, and the risk engineering that keeps pace with the dynamism of these multi-billion dollar projects.”

The facility has been established with the aim of integrating multiple lines of insurance over time, including property, computer hardware, cargo and transit, cyber and technology E&O, environmental liability and terrorism, under a single policy structure.

ATA said that hyperscale data-centre developers, tenants and chip providers have historically had to assemble several standalone policies, an approach that can create coverage gaps and potential clashes between insurers, particularly during complex claims scenarios.

Alistair Blundy, CEO and lead underwriter at ATA, said: “Our new ATA policy is built for the entire AI sector, from the investors and lenders to the tenants, chip integrators, and data center operators. We wanted to be an insurance broker’s first call for all AI stakeholders, providing them with a clear, lead-line solution.”

The development of the policy wording was supported by legal advisers at Clyde & Co, ATA noted.

Chris Cowland, legal director and London wordings lead at legal firm Clyde & Co, said: “We are pleased to advise ATA on the development of its policy wording which integrates multiple lines of insurance. Through our Insurance Practice, Clyde & Co has a global presence and strong track record of advising on legal, claims, and regulatory issues across all lines of insurance business. We are delighted to bring our insurance experience to help support the data center and AI infrastructure industry.”

Backing insurers said the facility responds to a growing need for aggregated and specialist solutions as investment in AI infrastructure accelerates.

James Croome, head of fine art, specie and cargo, Arch Insurance International, said: “We’re pleased to be leading the hardware, cargo and terrorism coverage for the ATA facility. This facility provides a single point of access for world-class capacity, a lead-line solution and a new standard in the market.”

Tom Allen, chief underwriting officer, cyber, Munich Re Specialty – Global Markets, Syndicate, added: “We bring Munich Re’s leading technical expertise and financial strength to this innovative offering, backing the cyber and technology E&O coverages. Together, in this new facility we are mobilising insurance capabilities and capacity at scale to de-risk critical projects, providing relevant insurance solutions to our clients and powering the next generation of AI infrastructure.”

SCOR said its participation reflects the increasing importance of environmental considerations in large-scale technology projects.

Emma Bartolo, global EIL segment leader at SCOR Business Solutions, said: “We are delighted to be part of this groundbreaking facility, which takes a holistic approach to covering the AI infrastructure market, and to use our environmental expertise to drive and protect responsible innovation.”

The launch was also welcomed by the Lloyd’s market.

“I’m delighted to see Lloyd’s at the forefront of supporting this groundbreaking facility,” said Rachel Turk, chief of market performance at Lloyd’s of London.

“It’s a powerful example of how syndication at Lloyd’s brings world-class capacity together, making it easier to build meaningful line sizes and deliver innovative solutions that address complex needs,” Turk added.