InsurTech4Good.com Weekly Newsletter – #18, 2025

Hello dear readers,

This week’s edition explores new AI regulatory initiatives in the UK, the emergence of insurance-specific LLMs, a thoughtful paper on how the insurance industry can expand its impact on global development agendas, and EIOPA’s latest insurance risk dashboard highlighting rising digital threats.

Hope you enjoy the read!

Oh, and if you're navigating InsurTech regulation, policy, or innovation—and think I can help—don’t hesitate to get in touch.

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Insurance-specific LLM

EXL has released domain-specific large language models tailored for insurance use cases—from underwriting to claims and medical records. These LLMs aim to deliver greater accuracy, lower costs, and faster performance than general-purpose AI. EXL sees rising demand from insurers seeking models trained on private, sector-specific data.

Read more here. 

Insurance and Sustainable Development: Partnering on Risk, Resilience, and Transformation

This qualitative Position Paper investigates why the industry’s strengths receive limited attention in UN multilateral development agreements; it explores how to mainstream discussions around risk, resilience, and insurance; and presents ways in which the public and private sectors can scale the use of insurance solutions in development efforts.

The paper presents 11 design principles – practical guidelines for framing and guiding efforts to mobilise and scale the use of insurance in sustainable development efforts: 

1.  Elevate the role of insurance in development agendas and frameworks 
2. Articulate the societal value of insurance 
3. Education and capacity building are catalysts for transformation 
4. Prevention is better than cure 
5. Sustainable development is broader than climate change and reducing emissions
6. Sustainable development is a transformation and innovation agenda 
7. Innovate for local contexts and underserved communities
8. Data and digital technologies fuel scalable innovations 
9. Public-private dialogue is crucial to shape effective markets 
10. The multiplicative power of multi-stakeholder partnerships 
11. Public sector finance is required to fuel transformational market innovations

Read more here. 

The Bank of England is establishing an Artificial Intelligence Consortium

This initiative aims to provide a platform for public-private engagement and gather input on AI’s capabilities, development, deployment, and use in UK financial services. Specifically, it will:

• Identify how AI is or could be used in financial services, including new capabilities, use cases, and relevant technical developments;
• Discuss the benefits, risks, and challenges of AI, both for firms and the wider financial system;
• Inform the Bank’s approach to mitigating risks and promoting the safe adoption of AI.

Read more here. 

The Financial Conduct Authority (FCA) plans to launch AI Live Testing

Part of the existing AI Sandbox, this new initiative will support the safe and responsible deployment of AI by firms, aiming for positive outcomes for consumers and markets.

Key aspects include:

• Direct collaboration between FCA’s regulatory and technical teams and participating firms;
• Tailored support as firms develop and deploy live AI models;
• Exploring output-driven validation and other methods to assess AI’s impact;
• Providing firms with the confidence and regulatory comfort needed to test AI models safely in live environments.

Read more here. 

EIOPA's insurance dashboard and digitalization 

EIOPA's insurance dashboard shows overall stable risk landscape but geopolitical uncertainties worsen the outlook for macro, market and digitalization risks. More concretely, cyber and digital risks stayed at a medium level, albeit with a rising outlook. Threat perceptions have increased, with geopolitical tensions remaining a key factor.

Read more here.