The Council of the EU has included insurance in a list of high-risk use cases in its general approach to the Artificial Intelligence (AI) Act, which was adopted today. William Vidonja, head of conduct and business at Insurance Europe, commented:
“Europe’s insurers wish to express their disappointment with the Council’s decision. With the exception of a restricted use case related to safety components in digital infrastructure, insurance is the only sector to be included by the Council in the high-risk list of Annex III without any proper analysis or impact assessment being conducted. This decision goes against the objectives of the EU’s better regulation agenda and does not promote evidence-based EU policymaking.
“Insurers are already using AI to improve customer service, increase efficiency, provide greater insight into customers’ needs and to improve fraud detection. They are also subject to a robust EU regulatory framework in terms of both prudential and conduct rules. This is then complemented by national frameworks and EU legal requirements in a wide range of different areas, such as fundamental rights and data protection. And, they are subject to strict supervision by supervisory authorities.
“An impact assessment should have been carried out to assess whether the existing regulatory and supervisory framework already appropriately addresses the potential risks resulting from the use of AI in insurance. This would have avoided inconsistencies and duplication of rules that would only hinder innovation without bringing any benefits to consumers.”