EIOPA publishes Opinion on AI governance and risk management

Artificial Intelligence (AI) is set to play a pivotal role in the digital transformation of the insurance sector, where the use of AI solutions is already increasing across the value chain – in pricing, underwriting, claims management and fraud detection.

Since the AI Act entered into force in the European Union in the summer of 2024, it has governed the use of AI systems across all sectors of the economy including insurance. The act places special focus on so-called high-risk AI systems, which need to comply with a comprehensive set of requirements. In the insurance sector, AI systems used for risk assessment and pricing in life and health insurance are deemed as high-risk under the AI Act. 

Importantly, AI systems used in insurance are already subject to existing sectoral legislation. This sectoral legislation establishes broad, technologically neutral principles and responsibilities for governance and risk-management, laying the foundation for a sound approach to innovative new tools.

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