Cyber risk experts warn that the insurance sector is facing a new phase of risk as businesses adopt artificial intelligence at scale and integrate Model Context Protocol (MCP) technology into their operations.
MCP adoption
MCP allows AI systems to access and interact directly with an organisation’s existing tools, data, and applications in real time. Its use is growing, particularly among companies deploying generative AI solutions to streamline business processes. However, KYND, a firm specialising in cyber risk, says this trend is exposing insurers to novel threats that are not always covered by existing risk management frameworks.
When in use, MCP connects AI models within digital ecosystems. This enables automated data exchange and decision-making, streamlining business operations. But the same connectivity creates new avenues for potential cyber attacks, increasing the vulnerability of both individual organisations and insurance portfolios as a whole.
Systemic risk
KYND highlights that MCP is introducing a new kind of systemic cyber risk that may not be readily visible to insurers. MCP can serve as a conduit where a single vulnerability could be exploited to…
