Insurance Europe responded to EIOPA's draft Opinion on AI governance in insurance, supporting clarity on existing rules but raising concerns over potential new obligations. It cautioned that the draft's language might lead to supervisory expectations being misinterpreted as binding requirements, conflicting with the EU's simplification goals for smaller firms. Insurance Europe also highlighted risks of dual supervision in some regions and emphasized the need for clear distinctions between different AI types and user roles. It urged EIOPA to focus on aligning the Opinion with established frameworks like Solvency II and GDPR for effective oversight.
The UK regulator plans to simplify its insurance rulebook by removing outdated and duplicate requirements, aiming to reduce costs and increase market access while maintaining customer protection. Proposed changes include exempting large commercial clients from some conduct rules, reducing mandatory annual product reviews, allowing flexible lead insurer arrangements, broadening bespoke contract exclusions, and eliminating certain training requirements. These reforms aim to boost competitiveness while protecting smaller clients. The regulator seeks feedback on these proposals by July 2, 2025, as part of its ongoing effort to streamline regulations and support industry growth.
As extreme weather events intensify, insurers face limits in absorbing losses, necessitating a shift from post-event compensation to loss prevention. This requires interlinked public, public-private, and private solutions, with tough policy decisions on responsibilities and cost allocation. Insurers can leverage risk expertise, data, and technology to promote loss prevention through knowledge-sharing and financing household measures, fostering a cycle of enhanced insurability, reduced protection gaps, and business growth. While insurance law traditionally supports compensation, tailored loss prevention clauses could become standard, addressing protection gaps and creating transformative opportunities. Prevention surpasses post-event claims and uninsured losses.