Insurable Interest Canadian Insurance Blog

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...

Companies aim to remove two of the biggest barriers blocking enterprise risk modernization: cost and complexity of migrating off legacy cybersecurity platforms New York, NY (July 1, 2026) – Accenture and ServiceNow, the AI control tower for business reinvention, are pleased to announce the launch of a joint offering with two core components: managed security services built on the ServiceNow AI Platform and an Accenture AI-powered solution that automates migration from legacy systems to ServiceNow. Together, Accenture and ServiceNow are removing two of the biggest barriers blocking enterprise risk modernization: cost and complexity of migrating off legacy cybersecurity platforms. Data breach costs continue to surge in the U.S., reaching an all-time high of $10.22 million in 2025 per incident, up 9% year over year. Additionally, AI is compressing the window between a vulnerability being discovered and exploited from months to mere hours. As cyberattacks grow in speed and sophistication, Accenture and ServiceNow are equipping organizations with essential risk management services powered by agentic AI to stay ahead of evolving threats, strengthen long-term cyber resilience, and combat the escalating scale, severity, and financial cost of cyberattacks. “Cyber resilience is a clear business imperative as organizations face a growing volume of threats...

NTT DATA leveraging Cursor to strengthen its own engineering and delivery model Enterprise-grade governance helps modernize and transform delivery with greater trust and control London, UK (July 1, 2026) – NTT DATA, a global leader in AI, digital business and technology services, is pleased to announce a strategic partnership with Cursor, the leading multi-model AI coding platform. Under this initiative, NTT DATA will use Cursor’s advanced AI agents to power the innovation of its global software engineering and delivery models. Cursor will enable NTT DATA to design, build and modernize enterprise systems with greater speed and control, while supporting the governance enterprises require. The collaboration marks a strategic advancement in NTT DATA’s transformation into an AI-native services company, enhancing how the company designs, builds and modernizes mission-critical systems. NTT DATA is operationalizing AI inside its engineering and delivery engine with enterprise-grade controls to enable faster modernization of clients’ legacy estates, accelerate cloud and AI transformation initiatives, and drive greater consistency across delivery environments. Including AI agents directly in the engineering layer helps ensure that application modernization and development efforts remain aligned with enterprise-wide AI strategies. These capabilities enhance NTT DATA’s broader full-stack portfolio. “Enterprise modernization is no longer just about...