InsurTech4Good.com Weekly Newsletter – #25, 2025
It’s summer, but key regulatory developments continue.
EIOPA has published its Opinion on AI governance and risk management in insurance, providing clarity for supervisors and undertakings.
The Bermuda Monetary Authority has proposed an outcomes-based framework for AI oversight, while Bank Negara Malaysia is consulting on responsible AI adoption in the financial sector.
Additional updates include future interaction scenarios shaped by virtual assistants, the latest Global InsurTech report on AI in property insurance, and Brazil’s open finance framework.
Hope you enjoy the read!
Andres
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EIOPA Opinion on AI governance and risk management
Compulsory reading for all who are into Artificial Intelligence in insurance.
The EU insurance watchdog EIOPA has just published an Opinion addressed to national supervisors to clarify the key principles and requirements in insurance-sector legislation for the use and supervision of AI systems.
AI systems used in insurance are already subject to existing sectoral legislation.
This legislation establishes broad, technologically neutral principles and responsibilities for governance and risk management, laying the foundation for a sound approach to innovative new tools.
The Opinion provides further clarity to supervisors on how to interpret these provisions in insurance-sector legislation (such as the Insurance Distribution Directive, the Solvency II Directive, and DORA) in the context of AI.
AI systems categorised as high-risk or prohibited under the AI Act are excluded from the scope of the Opinion to avoid regulatory complexities.
The Opinion does not set new requirements and does not alter the scope of either the AI Act or existing sectoral legislation.
The Opinion clarifies existing governance and risk management principles while remaining flexible enough to allow tailoring for the specific characteristics of different AI systems.
The proposed framework aims to ensure the responsible use of AI systems in insurance and includes considerations on data governance, record-keeping, fairness, cyber security, explainability, and human oversight.
To sum it up, I would say it is high-level but provides a solid foundation (real life is always more complex), it is risk-based, and proportionate.
I like the annexes with practical examples, and I also appreciate the references here and there to existing tools that can be used to follow the Opinion (such as POG, enterprise risk management, etc.).
Another point worth highlighting is that the responsible use of AI systems is not achieved by a standalone measure, but by a combination of different risk management measures (think about explainability).
Read more here.
The Future of Interaction: The Role of Interaction in a World Configured by Virtual Assistants
You might recall I told you last week that I’d love to see more future-foresight-type thinking in the insurance industry. And here we go.
The study "The Future of Interaction: The Role of Interaction in a World Configured by Virtual Assistants" analyzes different scenarios that explore how interaction might evolve in the coming years.
From a world where AI is unable to keep its promises to a society where digital agents become central to everyday life, each scenario presents a distinct vision of the future.
Based on the contextual research conducted, four plausible scenarios for 2035 have been outlined:
1. Where the Wall Stopped Us
2. The Art of Maximizing
3. The Age of Digital Luxury
4. Toward Uxtopia
The combination of these scenarios helps shape a broader picture of how interaction might unfold in the future.
Importantly, the study also examines what these shifts could mean for the insurance sector, which is already undergoing a radical transformation due to digitalization.
It offers a structured and grounded look at how interaction might evolve and how that could affect daily life, business, and the broader economy.
There’s so much to take from this.
But one of my favourite quotes is:
"It will be necessary to understand when, where, and how to be present, as well as what to offer in each space, taking into account the consumption preferences of customers and the coexistence of different generations."
I find this particularly relevant. Based on my own experience, it’s not at all easy especially when you're considering the whole of Europe, which is so diverse.
At least for me this highlights the importance of product oversight and governance and consumer duty type of thinking.
Read more here.
Outcomes-based regulatory framework for AI governance and oversight in Bermuda
Bermuda Monetary Authority has released a discussion paper proposing an outcomes-based regulatory framework for artificial intelligence (AI) governance and oversight.
The aim is to position Bermuda as a leader and enabler of responsible AI adoption.
You are invited to share your views on this newly published paper, which also addresses AI developments in the insurance industry.
The Discussion Paper includes:
a) An overview of AI applications within Bermuda's financial services sector;
b) A general assessment of global regulatory approaches to AI;
c) An identification of sector-specific risks and opportunities associated with AI adoption; and
d) A proposed pathway for developing an appropriate regulatory framework.
The paper seeks to:
a) Foster responsible innovation in AI by providing regulatory clarity and encouraging supportive engagement to enable the safe development of new solutions;
b) Ensure Bermuda’s regulatory framework remains fit-for-purpose and aligned with international standards; and
c) Gather targeted feedback from industry stakeholders to inform future guidance on responsible AI use.
Read more here.
Artificial Intelligence in the Malaysian Financial Sector
What does responsible AI innovation look like for financial and insurance service providers in Malaysia?
The Central Bank of Malaysia has joined other financial supervisory authorities in consulting on AI.
This discussion paper outlines Bank Negara Malaysia’s (BNM) proposed approach and views on the development and adoption of artificial intelligence in the Malaysian financial sector.
BNM is committed to fostering responsible AI adoption across the financial sector in ways that enhance consumer outcomes and support broader policy objectives.
The paper seeks feedback that will inform BNM's regulatory and developmental approach to AI in the financial sector.
Read more here.
Global InsurTech report
The 2025 series of Gallagher Re Global InsurTech report examines the role of Artificial Intelligence in insurance industry, exploring its applications and use cases in the largest classes of business by premium.
This second report in the series focuses on property insurance, particularly its exposure to weather and climate-related perils.
Read more here.
Brazil’s open finance framework
Comprehensive reading on Brazil’s open finance framework, its state of play and future plans.
Read more here.
Member discussion