Context
EIOPA has issued a letter to EU Institutions on the AI Act and EU Insurance legislation proposals for clarifying the application of the AI Act.
Key points to note and next actions
Points in EIOPA’s letter include:
- Risk-Based Approach: The AI Act introduces a risk-based approach to AI regulation, categorising AI systems into four risk classes: prohibited, high-risk, limited-risk, and minimal-risk. This allows for different levels of obligations based on the potential impact of the AI system on human safety, rights, and freedoms.
- Compliance Requirements: The Act imposes new regulatory requirements on AI systems, including those in the high-risk category which may directly or indirectly capture insurance-related AI use cases
- Insurance Sector: The AI Act is particularly relevant to the insurance industry, an early adopter of AI systems. The Act aims to ensure that AI systems are safe, transparent, traceable, non-discriminatory, and environmentally friendly.
- Governance and Risk Management: The Act establishes a coordinated governance system where national authorities, the European AI Board, and the Commission, work together to ensure the effective implementation and enforcement of the AI rules.
- AI Literacy: As of February 2025, providers and deployers of AI systems, including insurance service providers, must ensure AI literacy among their staff.
These points highlight the importance of understanding the AI Act’s implications for the insurance sector and the need for compliance with the Act’s requirements.