AI Regulation Considerations for (Re)Insurers

This document is a guide that outlines the regulatory landscape surrounding artificial intelligence (AI) in the (re)insurance market. It emphasizes the importance of understanding various national regulatory approaches as AI technology evolves. The guide details the two primary regulatory frameworks: the UK's outcome-based approach and the EU's comprehensive AI Act, which includes strict prohibitions against using AI for manipulative practices. It discusses key challenges such as bias, privacy concerns, data quality, and intellectual property rights that (re)insurers must navigate. Additionally, the document highlights the implications of existing laws, including the General Data Protection Regulation (GDPR) and the upcoming Digital Operational Resilience Act (DORA). It stresses that compliance with these regulations is critical for market participants to leverage AI effectively while mitigating associated risks. The guide serves as a resource for understanding the evolving legal and regulatory considerations necessary for the adoption of AI in the (re)insurance sector.