Insurable Interest Canadian Insurance Blog

More organizations have reached the stage where AI is part of everyday work — rising to 22 percent, up from 13 percent in Q1, the biggest move of any stage on the AI maturity journey. One-third of leaders (33 percent) cite limited understanding of usage costs, as a key deployment challenge for AI agents. Organizations where CEOs are accountable for decisions based on AI outputs, report higher confidence in their AI strategy, (60 percent vs. 22 percent), are more likely to realize meaningful business value (57 percent vs. 21 percent) and report established ROI (14 percent vs. 4 percent). Leaders with strong cost visibility are five times more likely to achieve ROI (15 percent vs. 3 percent). London, UK (July 1, 2026) – Organizations are entering a pragmatic phase of AI, where success is no longer defined by experimentation, but by how effectively leaders turn investment into real business value, according to KPMG’s Q2 2026 Global AI Pulse Survey of more than 2,000+ business leaders across 20 countries at organizations with annual revenues exceeding US $50+ million. While AI remains a top priority, cited by 79 percent of leaders as a key investment area (up from 74 percent last quarter) and...

FM Report: “Understanding Power Generation: Loss Trends and Predictive Analytics” Johnston, RI (July 15, 2026) – Aging equipment, protracted replacement times and a variety of risk-management shortcomings threaten efforts to meet rising global power demand fueled by AI data centers and broad-based electrification, according to a new report by commercial property insurer FM. The report, Understanding Power Generation: Loss Trends and Predictive Analytics, details power-generation systems’ chief vulnerabilities, most prevalent causes of loss and recommended practices for improving resilience. “Power generation is a pillar of national and global security,” said Stuart Keller, chief engineer at FM. “Losses within this sector reverberate beyond individual facilities, affecting macroeconomic performance, energy availability, the resilience of critical infrastructure and local communities. As demand increases and system complexity grows, maintaining operational efficiency and proactively managing risk are essential.” Where the vulnerabilities lie Mechanical and electrical breakdowns are the primary drivers of loss, accounting for more than 70% of all loss events in power generation and over 80% of total financial impact annually, the report says. Gas turbines are the single largest source of property damage across the sector. Gas turbines and transformers are major drivers of business interruption losses in large part due to ongoing supply...

Nearly 80% of utilities expect more extreme and volatile demand patterns Around one in five data center power requests may never materialize, distorting forecasts At the same time, AI is expected by 60% of utilities to play a growing role in improving grid efficiency and unlocking operational gains, but only few have implemented advanced AI-driven approaches Paris, France (July 1, 2026) – The rapid expansion of AI-driven data centers is not only increasing electricity demand, but making it significantly harder to predict, challenging how power systems are planned and delivered. A large majority of electricity executives expect more extreme and less predictable demand spikes, while more than three quarters say they struggle to forecast future needs accurately, according to the Capgemini Research Institute’s latest report, AI Meets The Grid: Shaping The Data Center Power Play. The research, which surveyed over 600 senior electricity executives from organizations with annual revenue exceeding $500 million, highlights how power systems are entering a new phase as AI workloads become increasingly unpredictable. According to the report, forecasting has become significantly harder, but AI is also part of the solution with a majority of executives expecting AI to unlock significant efficiency and operational gains. A new era...

Neocloud providers emerging as a significant competitive force in the AI cloud market Stamford, CT (June 30, 2026) – By 2030, neocloud providers will capture 20% of the $267 billion AI cloud market, according to Gartner, Inc., a business and technology insights company. “Neocloud” refers to cloud providers built specifically for AI and high-performance workloads. The rapid growth of GenAI is creating unprecedented demand for GPU-intensive computing, accelerating investment in localized, high-performance infrastructure and exposing the limitations in traditional cloud models. Neoclouds are challenging the dominance of hyperscalers by focusing on AI-optimized infrastructure. “While U.S. hyperscalers are launching their own sovereign offerings, a new wave of specialized neocloud providers is gaining significant traction,” said Enrique Castera, Sr Director Analyst at Gartner. “These neoclouds are differentiated by their focus on AI-optimized infrastructure and high-performance workloads. Some also focus on sovereign cloud capabilities, ensuring data and operations remain within specific jurisdictions. Sovereign neoclouds provide contractual guarantees that some or all aspects of the cloud environment, such as data, operations, and governance, remain confined to national boundaries, protecting them from foreign legal claims and extraterritorial access.” Increasingly stringent data sovereignty requirements are compelling organizations to seek greater control over where AI data is...