CrowdStrike is expanding its Project QuiltWorks initiative to include leading cyber insurance firms, signalling a shift in how organisations address the financial consequences of frontier AI-driven cyber risk.
The expanded framework brings together insurers and brokers including Coalition, Liberty Mutual Insurance, Lockton, Resilience and Marsh. The move extends QuiltWorks beyond technical threat detection and remediation into financial risk modelling and insurance underwriting.
“Frontier AI risk doesn’t stop at technology, it lands on the balance sheet,” said Daniel Bernard, chief business officer at CrowdStrike. “Project QuiltWorks is the only framework that delivers the technology to identify and prioritise, the services to remediate, and the financial protection to secure against it.”
The initiative reflects a growing recognition among boards and CISOs that cyber risk—particularly in the age of advanced AI—has become a material financial exposure rather than a purely technical concern.
The economics of frontier AI risk
Frontier AI models are reshaping cyber risk dynamics by dramatically accelerating vulnerability discovery and compressing the time to exploitation. This creates a sharper link between technical exposure and financial loss, raising the stakes for both enterprises and insurers.
According to IBM’s Cost of a Data Breach Report 2025, the global average cost of a breach has reached US$4.45 million, with faster, more automated attacks contributing to increased financial impact.
At the same time, the cyber insurance market is tightening. Insurers are demanding greater visibility into security controls and demonstrable risk reduction before underwriting policies, particularly as AI-driven threats increase unpredictability.
A coordinated mitigation model
Project QuiltWorks aims to address this challenge through a unified approach that integrates AI-driven vulnerability discovery, adversary intelligence, remediation services, and financial protection.
Key components include financial risk modelling using actuarial data, exposure prioritisation based on both threat intelligence and underwriting insights, and continuous feedback loops that connect detection, remediation, and claims data.
“Frontier AI is collapsing the window between vulnerability and loss, which makes continuous visibility and proactive risk mitigation more important than ever,” said Tim MalcomVetter, general manager of security at Coalition.
Michelle Faylo, U.S. cyber & technology leader at Lockton, added that organisations are increasingly seeking “a clearer path to mitigation” alongside financial protection, as technical exposures rapidly translate into business risk.
Raising the bar for resilience
The inclusion of insurance partners marks a broader industry evolution towards integrated cyber risk management, where security, operations, and finance converge. By aligning technical remediation with underwriting confidence, QuiltWorks aims to give organisations a clearer pathway to securing coverage while reducing exposure.
As frontier AI continues to accelerate both attack speed and scale, frameworks that combine cyber defence with financial risk transfer are likely to become a critical component of enterprise resilience strategies.
