HOW USEFUL WAS THIS POST? RATE, LEAVE A COMMENT REQUESTING CHANGES, AND WE’LL AMEND ACCORDINGLY.
From AI regulation to biotech IP disputes, this edition of Risk Wrap highlights six developments shaping compliance, governance, and insurance exposure across high‑risk industries.
US Voters Prefer AI Ban to Weak Oversight
The AI Policy Institute recently published the findings of a survey examining US voters’ preferences about AI regulation. There was broad support for greater oversight across Republican and Democrat segments. 78% supported mandatory standards rather than no regulation, while 63% said they would choose a complete ban of AI over having no regulatory framework.
In addition, 86% want a guaranteed off switch to ensure the most powerful AI systems are kept under human control, and 58% are more concerned about the risks of AI versus being excited about its growth. The second point held true across party, gender, and age group.
Around 50% of voters think states should act until Congress passes federal rules, while 70% would have states set their own rules indefinitely.
To summarize, participants want AI to stay under human control, be subject to rigorous standards, and be stoppable. For now, the legal landscape remains fragmented across states and many aspects of governance are still under development.
Implications for brokers and their clients:
- Review product liability covers to ensure it reflects the risks posed by AI, especially if the system is used in healthcare, industrial automation, or other safety-critical applications.
- As regulatory obligations continue to change, review directors’ and officers’ insurance to protect executives against claims alleging failures in governance or compliance.
- Review cyber liability insurance to ensure it addresses AI-related cyber risks, including data breaches, unauthorized access, and regulatory investigations.
Source: AIPI (June 11, 2026). The AI Safety Majority.
Lines of business mentioned: Product Liability Insurance, Directors and Officers Liability Insurance, Cyber Liability Insurance.
Crypto Industry Moves to Tackle Private Key Risks Behind Billions in Losses
The digital asset industry is working toward solving the issue of private key vulnerabilities, which account for 40% of crypto losses.
The chart below shows a breakdown of attacks by technique. 22.15% of private keys are compromised through brute-force attacks. The remaining 17.85% result from unknown methods.
Blockchain security firm CertiK note that operational security incidents are increasing in frequency while smart contract exploits are declining, and that companies have been focusing more on protecting smart contracts while neglecting other critical areas.
According to Wish Wu, co-founder and CEO of Pharos: “There’s progress on many fronts: MPC [multi-party computation] wallets, account abstraction with social recovery, passkey-based login, hardware wallet enforcement, and proper key management SOPs.” He added that these measures are often seen as optional extras rather than core design principles.
Implications for brokers and their clients:
- Consider working with insurers that specialize in digital asset insurance and understand the unique risks associated with private key management, custody arrangements, and other evolving risks and regulations.
- Review your crime insurance to ensure losses involving private keys are addressed and consider obtaining specialist digital asset crime cover.
- Review cyber liability insurance to ensure it covers sector-specific risks.
Source: CoinDesk (June 30, 2026). .
Emerging insurance industries mentioned: Digital Asset and Web3 Insurance.
Lines of business mentioned: Digital Asset Crime Insurance, Cyber Liability Insurance.
AI Music Firm Sued Over Copyright Infringement
Jamendo SA, a subsidiary of Winamp Group SA, has filed a lawsuit against AI music company Suno in a US federal court, alleging that the company used Jamendo’s music catalog and related data to develop and operate its generative AI technology without authorization.
The lawsuit includes claims for copyright infringement, breach of contract, and unjust enrichment. If successful, statutory damages under the US Copyright Act could reach up to $30,000 per infringed work, or $150,000 per work where infringement is found to be willful.
Alexandre Saboundjian, CEO of Winamp Group, said the legal action reflects the company’s commitment to protecting artists’ rights as AI transforms the music industry. He added that “innovation and respect for intellectual property must go hand in hand to ensure a sustainable ecosystem for creators, rights holders and the companies developing tomorrow’s technologies.”
Implications for brokers and their clients:
- Review media liability policies to ensure they address IP-related claims resulting from AI-generated content.
- Review your errors and omissions insurance to determine whether it addresses claims arising from AI-related services, including allegations of negligence, errors, or contractual failures.
- Consider working with insurers that specialize in AI cover and are equipped to understand these exposures and navigate differing regulatory requirements.
Source: Business Wire (June 30, 2026). Winamp Group Announces the Filing of a U.S. Lawsuit Against Suno.
Emerging insurance industries mentioned: Artificial Intelligence Insurance.
Lines of business mentioned: Media Errors and Emissions Insurance, Errors and Omissions Insurance.
US Cannabis Rules Continue to Develop Across States and Congress
The DEA has started its hearing on whether adult-use cannabis should be rescheduled along with medical marijuana, which will continue until mid-July. Witness testimony is expected to center on scientific evidence, medical efficacy, and the practical implications of maintaining separate federal classifications for medical and recreational cannabis.
In other news, federal cannabis banking legislation has returned to Congress, reviving a long-running effort to expand financial access for state-legal cannabis companies that operate outside the traditional financial system.
In Virginia, legislation that would support the launch of regulated adult-use cannabis sales has been sent to the governor after a final version of the bill was recently approved. If signed into law, it would establish a legal retail market starting in 2027.
Meanwhile, lawmakers in South Carolina closed their legislative session without reaching a deal on tighter rules for intoxicating hemp products, effectively maintaining the state’s existing hemp regulations. Efforts to impose stricter limits on THC-derived products fell short, as competing proposals failed to gain consensus before the session ended.
Implications for brokers and their clients:
- Review general liability insurance policies to ensure they respond to cannabis-related operations. Standard policies may exclude activity involving controlled substances.
- Review product liability insurance to ensure it responds to labeling and advertising risks where THC content may be misrepresented or varies from stated levels.
- Consider working with insurers that offer specialized cannabis insurance and are experienced in regulated cannabis markets.
Source: Cannabis & Tech Today (June 29, 2026). DEA Rescheduling Hearing Opens a Defining Chapter for Federal Cannabis Policy: Last Week in Weed June 23-29.
Emerging insurance industries mentioned: Cannabis Insurance.
Lines of business mentioned: Product Liability Insurance, General Liability Insurance.
$20 Million Patent Verdict Hits Amgen Over Antibody Technology
Biotech firm Amgen is facing renewed legal pressure connected to its acquisition of antibody developer, Teneobio.
In 2016, Harbour BioMed obtained Harbour Antibodies and its transgenic mouse technology platform for antibody discovery. Allegedly, Teneobio’s UniRat platform was developed using technology “modelled after” its Harbour Mice system.
A US federal jury concluded that both Amgen and Teneobio willfully infringed the patent owned by Harbour Antibodies and awarded $20.2 million in damages to Harbour. Because the infringement was found to be wilful, it’s possible that the amount may be tripled.
Harbour also stated that it first raised concerns with Teneobio’s management in 2017 and attempted to initiate licensing discussions, but said those efforts were declined.
Implications for brokers and their clients:
- Consider IP insurance to address patent infringement exposure.
- Consider representations and warranties insurance for acquisitions to help manage exposure to losses arising from inaccurate or incomplete seller disclosures, particularly around IP ownership and licensing rights.
- Investigate specialized biotech insurance that covers key risks including IP disputes, clinical trial liabilities, and product liability claims.
Source: Fierce Biotech (June 15, 2026). Amgen loses in Harbour antibody patent case, ordered to pay $20M+.
Emerging insurance industries mentioned: Biotechnology Insurance.
Germany Tightens AI Oversight as Regulators Warn of Rising Cyber Threats
Germany’s financial regulator, BaFin, is increasing its oversight of the technology used by financial institutions amid concerns that advances in AI could heighten vulnerabilities. The regulator has announced a new “IT spotlight” inspection program that will allow supervisors to quickly assess specific technology risks without waiting for full-scale reviews.
BaFin president Mark Branson warned that cyber risks are rising significantly as AI systems become more capable of detecting and exploiting weaknesses in new and legacy systems.
Another key focus is third-party risk. BaFin emphasizes the importance of assessing concentration risk, portability, audit rights, and credible exit strategies. Generative AI also presents the risk of unannounced model changes.
Continuous assurance and testing across the entire lifecycle of an AI system is also emphasized.
Implications for brokers and their clients:
- Consider fintech insurance provided by an insurer with expertise in regulated financial services across jurisdictions.
- AI companies providing services to fintechs may consider reviewing tech E&O coverage to ensure it aligns with evolving regulatory expectations and responds to claims alleging failures in the design, performance, or delivery of services.
- Review cyber liability policies to ensure they address emerging AI-related risks.
Source: QA Financial (June 30, 2026). AI ‘inspections’ put QA under the regulatory spotlight in Germany.
Emerging insurance industries mentioned: Fintech Insurance.
Lines of business mentioned: Tech E&O Insurance, Cyber Liability Insurance
