Webinar: Decoding AI in the Global Insurance Industry

In our recent webinar, "Decoding AI in the Global Insurance Industry," we delved into the transformative impact of artificial intelligence on the insurance sector. Featuring insights from leading industry experts and regulatory authorities, this session explored the opportunities and challenges posed by AI, with a particular focus on regulatory landscapes across the EU, UK, and US.
May 18, 2024
5 min read

Watch the recording on YouTube

Key Discussions:

- The session opened with a brief introduction, highlighting the increasing significance of AI in insurance, its projected $1.1 trillion annual value, and its application areas, such as underwriting, fraud detection, and claims management.

- AI poses risks like reputational damage, legal liability, and challenges in a rapidly evolving regulatory environment.

- Armilla AI's role in the industry was introduced, emphasizing its tech-based AI assessments and risk transfer programs.

EU AI Act:

- Dennis Noordhoek, Director of Public Policy & Regulation at The Geneva Association detailed the EU AI Act's three-tier risk model (unacceptable, high, and low risk).

- Insurance falls under the high-risk category, especially in life and health sectors, requiring stringent regulatory compliance.

- The Act's timeline was discussed, with full implementation expected 24 months post-publication.

UK Regulatory Approach:

- Charlotte Clark, Director of Regulation at The Association of British Insurers described the UK's pro-innovation and sectoral approach.

- The UK's strategy focuses on integrating AI within existing regulatory frameworks rather than creating new cross-sectoral legislation.

- Emphasis on promoting innovation, consumer protection, and robust governance.

US Regulatory Landscape:

- Kathleen Birrane, Maryland Insurance Commissioner and NAIC Innovation, Cybersecurity and Technology Committee Chair and Lindsey Klarkowski, Director of Data Science & AI/ML Policy at The National Association of Mutual Insurance Companies explained the NAIC's model bulletin, promoting a principles-based approach to AI regulation.

- The US approach involves contextual education for regulators and establishing governance and risk management frameworks for AI use in insurance.

- Discussion on the challenges of dual regulation, the need for uniform standards, and ongoing efforts to address third-party data and model vendors.


- Common themes included the importance of governance, risk management, and testing for bias and fairness.

- Significant differences remain in how jurisdictions handle AI regulation, impacting multinational insurers and insurtech vendors.

- Recommendations for companies included engaging in policy discussions, understanding jurisdictional nuances, and ensuring transparency and effective communication in AI practices.


- The panel emphasized the need for ongoing collaboration and dialogue among regulators, insurers, and stakeholders to navigate the evolving AI regulatory landscape effectively.

- Building trust through transparency, robust governance, and continuous learning from various regulatory approaches were highlighted as critical for the industry's future.