The insurance industry is facing a growing cyber threat linked to Model Context Protocol (MCP) technology, which facilitates real-time AI interactions with internal systems. As companies increasingly adopt generative AI tools, exposure is spreading through digital supply chains, often unnoticed by underwriters. Andy Thomas, CEO of KYND, warns that security frameworks struggle to keep pace with rapid MCP adoption, which expands attack surfaces between systems. This evolution creates new systemic risks, including polymorphic malware and data breaches, affecting not only individual firms but also third-party vendors. Insurers must adapt by enhancing risk mitigation strategies and adopting continuous portfolio monitoring to identify vulnerabilities early. The challenge is compounded by interconnected dependencies, where a single misconfiguration can impact multiple policyholders. By partnering with cyber risk modeling experts like CyberCube, insurers can develop frameworks for quantifying systemic risks while leveraging AI’s potential to transform the insurance landscape.
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