(AI) Artificial Intelligence in Cyber
Over the past year, all eyes have been on the impact of generative artificial intelligence (AI) on cyber insurance. First, the rise of generative AI will likely increase the frequency of cyber attacks. For example, there is a major concern that phishing attacks will become far easier and more effective for determined hackers.
Generative AI has the capability to craft cunning messages without the grammatical flaws that characterize many current phishing attempts. Moreover, generative AI’s data mining capabilities will further amplify these attacks, as the gathering of company-related information will become even easier to mine. Thus, expect more phishing attempts in the future, as generative AI’s ability to produce convincing deepfakes could lead to a rise in social engineering attacks.
For instance, a realistic deepfake of a company’s CEO could be used to deceive an employee into initiating a fraudulent wire transfer. It’s important to note that many of the safeguards that have been effective in the past may no longer be sufficient to counter AI-driven cyber attacks. This underscores the need for updated and robust security measures.
Hackers didn’t want to be left out of all the AI-related hysteria. So, they created a generative AI called WormGPT.
It was a first attempt, and most reports tend to believe that it has been a failure. However, there have been advertisements in hacker forums for machine learning experts to develop better large language models for nefarious purposes, but there could be a constraint on hackers creating AI models, as high-power computing and specialized Nvidia chips are required. Even companies like Google and Facebook are struggling to obtain these chips. So, it may be a while before these malicious models take off.
Ultimately, the most significant impact of generative AI may be a surge in cyber attacks. In light of this uncertain future, it’s imperative for companies to reevaluate their current insurance limits, and this reassessment will help determine whether the existing coverage will be sufficient in the face of a potential increase in claims.
AI Coverages?
Does AI pose any unique coverage-related risks under a cyber policy beyond an increase in claims? At present, most insurers do not appear to believe that there are any specific coverage issues caused by AI. In The Betterley Report’s “Cyber/Privacy Market Survey 2024,” the top cyber insurers were asked the following questions.
- Any specific coverages related to AI?
- Any definitions that relate to AI?
- Any exclusions related to AI?
- Any risk management services provided to insureds that are related to AI exposures?
Except for one insurer, all either answered these questions “No” or provided no response. Thus, the majority of insurers are simply keeping an eye on AI rather than directly modifying coverage under their policies.
An insurer in the survey, Coalition, took a significant step: It added affirmative AI language to its cyber policy. Specifically, Coalition included an AI security event in its definition of “Security Failure.” It also incorporated fraudulent instructions using deepfakes into its definition of funds transfer fraud.
Not to be outdone, another insurer, Districts Mutual Insurance, filed an endorsement titled Amend Definition of Fraudulent Instruction (Artificial Intelligence). That endorsement states:
The definition of Fraudulent Instruction is deleted in the entirety and replaced with the following:
Fraudulent Instruction means the transfer, payment or delivery of Money or Securities by an Insured as a result of fraudulent written, electronic, telegraphic, cable, teletype or telephone instructions provided by a third party, including any fraudulent instructions resulting from the use of deep fake technology, synthetic media, or any other technology enabled by the use of artificial intelligence, that are intended to mislead an Insured through the misrepresentation of a material fact which is relied upon in good faith by such Insured.
Fraudulent Instruction will not include loss arising out of:
- any actual or alleged use of credit, debit, charge, access, convenience, customer identification or other cards;
- any transfer involving a third party who is not a natural person Insured, but had authorized access to the Insured’s authentication mechanism;
- the processing of, or the failure to process, credit, check, debit, personal identification number debit, electronic benefit transfers or mobile payments for merchant accounts;
- accounting or arithmetical errors or omissions, or the failure, malfunction, inadequacy or illegitimacy of any product or service;
- any liability to any third party, or any indirect or consequential loss of any kind;
- any legal costs or legal expenses; or
- proving or establishing the existence of Fraudulent Instruction.
Source: Districts Mutual Insurance, Amend Definition of Fraudulent Instruction (Artificial Intelligence) (DMI—BR E16416 5-24).
It will be interesting to see whether other insurers add similar language to their cyber forms.
Start Financial Planning With 3 Baby Steps
Does the idea of financial planning — putting together a system for keeping your money matters and goals on track — seem daunting?
Then divide the task into smaller pieces.
Here are some small steps you can take immediately, in the coming week, and for the month that can help set a direction for your finances. These baby steps can be your start.
Financial planning steps for today
Make a budget. The first step in any personal finance effort is getting a handle on the amount of money you have coming in and going out. Making a budget lets you do that. And, in the process of putting one together, a budget helps you think about the priorities you have for your finances.
Here’s some guidance to help you put a budget together. For most people, the process isn’t that time-consuming.
If you already have a budget, you may want to revisit it and make adjustments, especially if your income has changed or you have incurred a major expense recently.)
Establish an emergency fund. If you don’t have an emergency fund, you need to start one. And you need to make consistent contributions to it as part of the budgeting process.
Generally, financial professionals suggest that the fund be held in a liquid interest-bearing account, like a money market account, savings account, or even a short-term certificate of deposit. Such accounts are generally straightforward and relatively quick to open. The money in your emergency fund typically should cover three to six months’ worth of living expenses, although recent bouts of severe unemployment have led many money mavens to suggest putting aside even more.
Get a Social Security account and report. Whether your retirement is looming or still a long way off, it’s a good idea to keep track of what your financial resources are likely to be. Social Security will likely be one of those resources. To find out how your personal Social Security account is shaping up, you need to go to myAccount on the Social Security web site and create your account. Then you can access your so-called “blue bar” report, which is a useful tool for those who want to know more about their benefits.
Many people don’t keep track. But it’s important information since it can flag retirement income issues you may face while you still have the time and the means to address them. So, take a few minutes to go to www.socialsecurity.gov/myaccount and follow the prompts
Financial planning steps for this week
Check your retirement contributions. A lot of times, people take a set-it-and-forget-it approach to their retirement accounts, especially those that are part of their workplace benefits, like 401(k)s. But it is important to periodically review such accounts and make sure you are getting the maximum benefit.
First of all, make sure that you are signed up for the plan. Some companies have a waiting period, and employees, having fallen into a routine after a few months, forget to take action.
Once in the plan, keep vigilant.
For instance, if you got a promotion or raise, you may want to consider increasing your contributions accordingly. Or, if you are old enough, you may have an opportunity to take advantage of some of the catch-up provisions available for those looking to bolster savings as they approach retirement.
And, perhaps, your company has changed matching levels for its 401(k) or has added investment options since you last checked. You’ll need to reach out to your benefits department to get the latest information and updates on your company-sponsored retirement plan sent to you.
Prioritize your debt. As part of the budgeting process, you no doubt got an idea of your debt load. The next, deeper step is to sort out those obligations. Generally, you want to pay off higher interest debt — like a credit card — first, while keeping current on less impactful debt.
Find a financial professional. For many people, expert financial advice can end up saving them lots of time and money in the long run. But it’s a relationship that has to connect on a number of levels.
You may want to look at professionals or services near you and ask friends, colleagues, or family for recommendations. If there is a financial services firm you particularly like, you can reach out to that firm directly.
Financial planning steps for this month
Portfolio review. It’s important to go over your investments periodically, especially in the face of changing circumstances and environments. You should dedicate a little time to it.
First of all, you need to collect information and examine all your investments, be they retirement accounts, like 401(k)s or IRAs, or brokerage accounts holding stocks, mutual funds, bonds, or exchange-traded funds. Then, you should look at the performance and nature of those investments and assess whether or not they still fit your goals and risk profile.
Remember, your risk profile is likely to change over time. Younger investors can tend to take on more risk, since they have time to recover from downturns, while older investors likely want to have less risk in their holdings, since retirement is nearer.
With that in mind, you can look at the entirety of your portfolio and determine if you have the proper asset allocation in place. That is, whether you have the right mix of higher risk and lower risk investments.
Taxes. Most people only think about taxes at year-end or around the tax-filing deadline. But it can pay to assess where you stand more frequently.
Specifically, taxpayers should check their withholding and make sure they’re on track to pay what they owe and nothing more. If you withhold too much, you’ll get a refund, but you will have missed a chance invest that money for compounded growth or to pay off debt. On the other hand, if you withhold too little, you could be surprised by a tax bill (or worse, an underpayment penalty) when you file your income taxes.
Meet your financial professional. Assuming you took the step above, your meeting with your financial professional should come within the month. You need to prepare for it, especially if it is your first meeting.
You need to approach it with an idea of the goals you want to accomplish and the topics you wish to discuss. Some questions to consider include:
- Is your retirement plan on track?
- Do you need to adjust your asset allocation?
- Do you need help setting up an estate plan?
- Is the appropriate amount of insurance protection in place for your family should something happen to you?
Conclusion
Obviously, there are more personal finance planning steps you can take, throughout the year or even a lifetime, to help keep your financial situation grounded. But the steps here — for a day, a week, or a month — can give you a start.
Provided by Matthew Clayson, courtesy of Massachusetts Mutual Life Insurance Company (MassMutual). CA Insurance License # 0I01304
©2024 Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001 MM202708-310101
Emerging Wellness Trends in 2025
The days of compartmentalizing physical, mental, financial and emotional well-being are over. In 2025, organizations are adopting a holistic approach that considers the entire employee. Expanding all aspects of wellness support is meant to help meet workers’ needs and expectations. While organizations may have already increased their mental health support in the past few years, some are now pivoting and ramping up financial wellness efforts in 2025.
This article highlights four employee wellness trends to monitor in 2025.
Addressing Employee Burnout
Many of today’s workers are burnt out; a recent report by talent advisory firm DHR Global revealed that 82% of employees are experiencing burnout. While health experts used to correlate remote work with positive mental health benefits, in 2025, they’re predicting equal levels of stress and burnout regardless of working location. So, unfortunately, employers shouldn’t expect employee burnout to disappear anytime soon.
Top drivers of employee burnout include long hours (58%), overwhelming workloads (35%), and difficulty balancing work and personal life (34%), according to DHR Global’s report. Burnout can be caused by stress, so employers are also looking at how stress shows up in the workplace and impacts employees. A recent survey by corporate wellness platform Wellhub found that nearly half (47%) of workers identify work stress as the primary cause of their deteriorating mental health—and that was consistent across most generations. Baby boomers are more concerned about inflation, while Generation Z, millennials and Generation X agreed that work stresses them out the most.
In an effort to prevent and alleviate rising levels of stress and burnout, more organizations are prioritizing flexible work arrangements, mental health days, realistic workload expectations and designated downtime to help employees maintain a healthy work-life balance. Employee assistance programs (EAPs), counseling services, stress management workshops and digital platforms for mental health assistance are increasingly becoming key components of workplace wellness initiatives. More employers are also investing in resources to destigmatize mental health (e.g., anti-stigma campaigns, mental health literacy training and EAPs) and foster a culture where employees feel comfortable seeking mental health support.
Prioritizing Financial Wellness
Money is a significant stressor for employees, and concerns have been exacerbated by prolonged inflation pressures over the past couple of years, growing debts and skyrocketing medical costs. In fact, more than 6 out of 10 Americans currently live paycheck to paycheck. PYMNTS Intelligence data also revealed that people say the top reason is that they don’t earn enough. While many organizations’ budgets are prepared for salary increases in 2025, they may still be insufficient to keep up with inflation.
Moreover, health care costs will once again increase substantially this year. Add all these financial responsibilities up, and it’s no wonder that workers today are worried about how they will earn a living and pay their bills.
Employers can help reduce employees’ financial stress by exploring financial wellness resources and support options and offering attractive programs for current and prospective employees. In addition to raising wages and offering competitive benefits, employers are exploring financial wellness resources, such as emergency savings funds, retirement savings, financial literacy workshops and one-on-one financial counseling. Financial wellness is a critical component of well-being and can be a competitive offering, especially as workers closely examine their salaries, medical bills and everyday expenses. Today’s workers are not only asking for but now expecting these lifelines from employers.
Engaging Employees Through Social Connections
According to Gallup, employee engagement in the United States reached an 11-year low in 2024. Additionally, employee satisfaction returned to a record low, and workers are seeking new job opportunities at the highest level since 2015. Organizational changes (e.g., team restructuring, additional job responsibilities and budget cuts) often cause employees to feel frustrated or disconnected from their jobs. Remote and hybrid work models can also make employees feel physically distant from their colleagues and teams.
While employee quit rates haven’t increased yet, a troubling trend is at play. Workers are staying with their current employers but feel more disconnected than ever. Gallup has coined this new era as “the Great Detachment.” Before workers start switching employers by the masses in 2025, organizations have an opportunity to reengage their workforce and rebuild employee commitment. Some ways to accomplish this can be by confirming organizational priorities and, if needed, resetting work expectations. More than ever, workers want to feel like their work is meaningful and has a purpose, which can further motivate them. Managers and supervisors can help direct reports connect their contributions to a mission or purpose.
Personalizing Wellness Programs With AI and Data
Recent technological advancements in employee wellness incorporate digital health platforms, wearable technology, artificial intelligence (AI) solutions and data analytics. More employers will explore leveraging technology to personalize employee wellness benefits.
Technology can enable real-time health monitoring, personalized wellness plans and immediate, 24/7 access to health resources and services. Virtual health platforms can help overcome barriers to health care access. With AI, organizations can also gather data on employee health metrics, work habits, stress levels and preferences. This kind of data can be used to customize wellness recommendations and detect or manage health issues. Nutrition, exercise, mental health and stress management are different for everyone, so AI and data analytics can help tailor support to match each person’s unique needs. As AI becomes more commonplace in 2025, technology has the potential to help personalize and improve employees’ well- being experiences and encourage preventive care.
Summary
This renewed focus on holistic wellness is not just a trend; it’s a fundamental shift in how companies approach employee care. By prioritizing mental, emotional and financial well-being in health and wellness initiatives, organizations can create a supportive culture that encourages education, open conversations and utilization of available resources.
Organizations can start by evaluating current wellness initiatives and considering ways to improve them. To ensure offerings and investments resonate with the workforce, it can be helpful to survey employees first to see what they find most valuable and necessary for their overall well-being. Contact us for more wellness-related workplace guidance.
This Benefits Insights is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice. © 2025 Zywave, Inc. All rights reserved.