The European Insurance and Occupational Pensions Authority (EIOPA) published a letter welcoming publication of the Artificial Intelligence Act. In the letter, EIOPA supports the objectives and principles of the European Commission’s legislative proposal to promote an ethical and trustworthy use of artificial intelligence.
EIOPA published, in June 2021, a report on digital ethics in insurance, in which it set out the governance principles for an ethical and trustworthy artificial intelligence in the European insurance sector. Following this, EIOPA highlighted that the principles set out in the report are aligned with the principles proposed under the Artificial Intelligence Act. To address specific challenges arising from artificial intelligence, EIOPA suggested the following:
- The National and European sectorial authorities that are responsible for supervising the use of artificial intelligence in insurance business should remain responsible for the development and implementation of further regulation and supervision of the use of artificial intelligence in the sector.
- With regard to cooperation and exchange of experiences, it is important to ensure good cooperation within the different authorities dealing with artificial intelligence, to help avoid inefficiencies and uncertainty when it comes to supervision and monitoring of the use of artificial intelligence.
- Insurance-specific use cases should not be included in the list of high-risk artificial intelligence use cases of the Artificial Intelligence Act. The Act should identify the relevance of the use of artificial intelligence in the financial sector, but leave further specification of the artificial intelligence framework to sectorial legislation, building on the already existing sectorial governance, risk management, conduct of business, and product oversight and governance requirements.
- A comprehensive impact assessment would need to be developed to consider whether any insurance artificial intelligence use cases should be included in the list of high-risk artificial intelligence applications of the Artificial Intelligence Act, taking into account proportionality considerations, the existing regulatory framework, and the specificities of the insurance sector. Such approach would avoid unnecessary overlaps, inconsistencies, and complexity of the supervisory and regulatory architecture.
- The emergent needs of the insurance national competent authorities and supervisors with a new set of skills and knowledge should be identified.
Related Link: Letter (PDF)
Keywords: Europe, EU, Insurance, Artificial Intelligence, Insurtech, Regtech, Cyber Risk, Artificial Intelligence Act, Governance, Digital Ethics, Proportionality, EIOPA
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