Markets/Coverages: ATA Launches $750M Insurance Facility for AI Infrastructure Boom

Advanced Technology Assurance Ltd. (ATA), the London-based managing general underwriter, has launched a $750 million insurance facility to underwrite the projected $7 trillion global AI infrastructure boom.

The ATA Global Data Center & AI Infrastructure Insurance facility launches with backing from a consortium of more than 10 of the world’s leading re/insurers and Lloyd’s syndicates, including Arch Insurance International, Munich Re Specialty, and SCOR.

This aggregated capacity allows ATA to provide a single policy to de-risk the complex, large-scale projects essential for the AI revolution.

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

The ATA facility aims, over time, to integrate multiple lines of insurance – including property, computer hardware, cargo & transit, cyber and technology E&O, environmental liability, terror, and others – under one policy.

Previously, a hyperscale data center developer, tenant, or chip provider had to patch together multiple, standalone policies, which can create coverage gaps and potential clashes between insurers, especially during complex claims, ATA explained.

“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,” said Alistair Blundy, CEO and lead underwriter at ATA. “We wanted to be an insurance broker’s first call for all AI stakeholders, providing them with a clear, lead-line solution.”

“We are pleased to advise ATA on the development of its policy wording which integrates multiple lines of insurance” said Chris Cowland, legal director and London wordings lead at Clyde & Co., the London-based law firm.

Global Re/Insurers’ Backing

The facility’s launch is supported by world-leading re/insurers, which see a critical need for a specialized, aggregated solution.

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

“We bring Munich Re’s leading technical expertise and financial strength to this innovative offering, backing the cyber and technology E&O coverages” said Tom Allen, CUO, Cyber at Munich Re Specialty – Global Markets, Syndicate. “Together, in this new facility we are mobilizing 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.”

“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,” said Emma Bartolo, global EIL segment leader at SCOR Business Solutions.

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

For more information on the ATA Global Data Center & AI Infrastructure facility, brokers and industry stakeholders can visit www.ata-insurance.com.

Source: Advanced Technology Assurance

Topics InsurTech Data Driven Artificial Intelligence New Markets

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