EIOPA seeks better understanding of AI

The European Insurance and Occupational Pensions Authority (EIOPA) is launching a new Digitalisation Market Monitoring Survey to monitor the development of European insurers’ digital transformation strategies – including the use of AI.

The survey also seeks a better understanding of how undertakings use or plan to use innovative business models and technologies.

According to EIPOA, the rapid rate of digital innovation is changing the way businesses operate and the adoption of new business models and technologies can have a significant impact on the insurance value chain. To keep pace with these fast-moving developments and make sure that the regulatory and supervisory frameworks reflect the opportunities and risks that come with digitalisation, EIOPA said it is launching a market monitoring survey.

The survey will gather information on the use of financial innovation in the European insurance sector, including the spread of new business models such as digital distribution and communication channels as well as insurers’ partnerships with start-ups and big techs. 

The survey will also assess the level of deployment of new technologies such as blockchain and artificial intelligence and the governance measures that insurers are adopting around them.

EIOPA added that it will use the findings to strengthen its evidence- and risk-based supervisory approach to detect any emerging risks for insurers and consumers and to identify potential regulatory obstacles that keep stakeholders from harnessing the benefits of financial innovation.

The data-collection exercise will ultimately help EIOPA ensure that European consumers remain well-protected and continue receiving good outcomes as insurers embrace increasingly more digital solutions and products.

The EU survey is being distributed to insurance undertakings via the national competent authorities. However, EIPOA added that any undertaking is welcome to complete the survey.