Informa Insurance News 24
EIOPA SETS OUT AI GOVERNANCE PRINCIPLES FOR INSURERS
The European Insurance and Occupational Pensions Authority (Eiopa) has published governance principles for the use of artificial intelligence (AI) by insurers. The principles, drafted by Eiopa’s consultative expert group on digital ethics, build on recent international and EU developments in AI. According to Eiopa, there is a “proliferation” of AI within the sector. It is used to carry out risk assessment and pricing, claims management and to combat fraud. However, ensuring fairness, non-discrimination and transparency can be challenging. “The issues raised are of critical importance in the face of the digital transformation currently underway in the sector. Developing a sound AI governance framework is therefore essential for a well-functioning, trusted and financially inclusive insurance sector,” the regulatory body said. Eiopa’s guidance is non-binding, although the regulator said it will use the findings of the expert group to identify possible supervisory initiatives.