InsurTech4Good Weekly Newsletter – #13, 2025
Dear All,
The next episode of my InsurTech policy and regulatory newsletter is out, featuring plenty of interesting reading once again.
It starts with open finance, exploring India’s Open Finance Research and Innovation Hub while also examining the EU FIDA proposal.
Next, a look at the FCA’s newly published 5-year strategy, which contains strong language on innovation and a focus on open finance. One quote that stands out: “Too often, the focus has been on the risks of a decision taken rather than the lost opportunity of taking none.”
EIOPA’s proposal for one-to-one capital requirements for EU insurers’ crypto asset holdings is also covered.
Another fascinating topic is the longevity economy—a crucial area where insurers and InsurTechs can and should play a key role. Bold action is needed here.
Finally, the issue wraps up with a practical overview of Gen AI use cases in insurance.
Happy reading!
Andres Lehtmets
Generative AI practical use cases in insurance
AllianzGPT, Allianz’s internal chat bot, combines the power of generative AI with secure, internal data integration. It enables Allianz employees to use AI in their daily work – safe and secure.
Officially launched on September 1, 2023, AllianzGPT now serves over 60,000 active users, with the goal of being available to all 158,000 Allianz employees worldwide.
Built on Generative Pre-trained Transformers (GPTs), the platform uses deep learning to process and generate human-like text by analyzing vast datasets to understand context, meaning and relationships within language.
Unlike public AI models like ChatGPT and DeepSeek, AllianzGPT integrates specific internal content, offering employees tailored responses, document analysis and actionable insights while meeting Allianz’s standards of Ethical AI.
Read more here.
EU invests €1.3 Billion to Artificial Intelligence, Cybersecurity, and Digital Skills
The Commission will allocate €1.3 billion to deploy critical technologies that are strategically important for Europe's future and the continent's technological sovereignty.
This funding is part of the Digital Europe Programme (DIGITAL) work programme for 2025–2027.
The work programme focuses on deploying AI and promoting its adoption by businesses and public administrations.
It also covers cloud and data infrastructure, cybersecurity resilience, and digital skills development.
Read more here.
Longevity Economy and Insurance
Insurers and InsurTechs can and should play a key role in the longevity economy.
The world is at a pivotal moment in its demographic transition, with more than one in four people now living in countries where the population has peaked.
This shift—combined with rising life expectancy and declining birth rates—presents both pressing challenges and significant opportunities.
This white paper synthesizes five key trends shaping the future of the longevity economy:
- Supporting financial pathways for economic growth
- Addressing the economics of caregiving and long-term care
- Enhancing the role of employers in financial well-being
- Transitioning from savings accumulation to decumulation
- Building resilient public retirement systems
By highlighting scalable innovations, the paper underscores the urgent need for governments, businesses, and civil society to take action now, ensuring systems are in place to help people of all generations thrive.
Bold action is required—and the insurance industry has a major opportunity to lead.
Read more here.
EIOPA proposes one-to-one capital requirements for EU insurers’ crypto asset holdings
According to the press release, to promote harmonized, prudent and proportionate treatment of crypto assets, EIOPA is proposing the introduction of a blanket 100% capital requirement across all crypto holdings, regardless of their balance sheet treatment or whether the exposure is direct or indirect.
A possible broader adoption of crypto assets may, however, require a more differentiated approach down the line.
The treatment of crypto holdings under Solvency II should therefore be reviewed in the future in light of market developments and regulatory approaches in other sectors.
Read more here.
Open finance research and innovation hub in India
Sahamati Foundation, the market-led industry alliance for the account aggregator (AA) ecosystem India just announced the launch of Sahamati Labs, a first-of-its-kind research and innovation hub, aimed at accelerating Open Finance adoption.
This collaborative space will bring together financial institutions, fintechs, researchers, and policymakers to develop cutting-edge solutions in AI, privacy-focused financial data sharing, and global interoperability.
The lab will focus on:
- Driving Interoperability: Crafting frameworks for secure, consent-based data-sharing, aligning with regulatory standards and exploring cross-border operability, when permissible.
- Accelerating Adoption Through Research & Engagement: Disseminating insights through reports such as GOFAR (Global Open Finance Adoption Report) and GOFAIR (Global Open Finance AI Adoption Report), and fostering collaboration through webinars, industry roundtables, and joint research initiatives.
- Enhancing Privacy and Security: Implementing Privacy-Enhancing Technologies (PETs) like Confidential Computing, Multi-Party Computation (MPC), and Zero-Knowledge Proofs (ZKPs) to establish robust, privacy-preserving financial data-sharing frameworks.
- Advancing AI-Driven Intelligence: Building cutting-edge AI models, exemplified by Aikya, to scale fraud detection, risk assessment, and financial decision-making.
Read more here.
FCA 5-year strategy and open finance
The UK financial watchdog has published its strategy highlights
The FCA will focus on 4 priorities:
- Be a smarter regulator; predictable, purposeful and proportionate. The FCA will improve its processes and embrace technology to become more efficient and effective.
- Support sustained economic growth, by enabling investment, innovation and ensuring the continued competitiveness of the UK’s world-leading financial services.
- Help consumers navigate their financial lives by working with industry to boost trust, product innovation and ensuring the right information and support is available for people to take financial decisions.
- Fight financial crime, focusing on those who seek to use the fact they are regulated to do harm. It will go further to disrupt criminals and support firms to be an effective line of defence.
The strategy also states that the FCA will build on the success of Open Banking and launch Open Finance. More seamless data sharing could unlock product innovation and deliver lower costs, more choice, and better information for consumers.
The strategy further states that people supply data to many different financial services providers. Opening up this data would make consumers’ and businesses’ lives easier, increasing choice and enabling easy-to-access, personalised support.
The right regulatory framework will encourage new entrants and innovation, with access to data fuelling firms’ growth. This could reduce information and transaction costs for small businesses seeking credit, 20% of whom struggle to borrow at reasonable rates.
For consumers, it could widen access to loans, providing greater resilience against personal financial shocks. Within a year, the FCA will publish a roadmap for the rollout of Open Finance.
Open Finance is coming—and it's coming quickly. If you are formulating your position on this, I suggest considering a key statement (at least for me) from the same strategy:
"Too often, the focus has been on the risks of a decision taken rather than the lost opportunity of taking none."
Read more here.
FIDA, innovation, and the future of financial data
In this interview, Nicola Breyer shares insights on FIDA, Open Finance challenges, and how collaboration could shape the future of financial data in the EU.
Read more here.
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