Lawfare Proposal: Frontier AI Labs Should Build a Mutual Insurer to Price Catastrophic Risk

Manderljung · x · 2026-09-24

A Lawfare article proposes bootstrapping frontier AI governance via mutual insurance: labs pool capital into a shared fund that pays out when any member causes harm, covering third-party liability for harms like cyberattacks on critical infrastructure and mass-casualty bioweapon attacks. Drawing on centuries of case law (e.g., the 1752 Philadelphia Contributionship), it could launch within 3 months without government action, creating market pricing signals on real risks, peer review of incidents, and teeth for security practices—an alternative to a capture-prone FINRA-style SRO.

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