AI systems are increasingly playing a pivotal role in the operation of cyber insurance products, from risk assessment to underwriting and claims handling. However, in the field of cyber insurance regulatory compliance is done mainly through disconnected, passive and manual controls which are mainly slow in adapting to changing cyber threats and new regulatory requirements. The message of this paper is the growing disconnect between the AI-driven cyber insurance workflows and the traditional compliance framework. It offers an AI Compliance framework that seamlessly connects with regulatory intelligence, cybersecurity risk scoring, underwriting, and claims management & governance in a very straightforward way.The framework builds on the ongoing discussions on AI governance, RegTech and cyber insurance and provides a blueprint for regulators to be resilient in an extremely volatile and volatile cyber risk landscape.