InsurTech4Good Weekly Newsletter – #4, 2025

Dear Readers,

Here is a summary of the most important InsurTech regulatory and policy news that caught my attention last week.

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Andres

News and reports

3 newly established European Commission Commissioners' Project Groups important for finance and innovation

On January 7, 2025, the European Commission announced the creation of several new Commissioners' Project Groups.

These groups represent a collaborative approach within the Commission, designed to address complex, cross-cutting issues more effectively.

While their establishment is not unprecedented—the first such groups, then called "project teams," were introduced under Jean-Claude Juncker’s presidency—they continue to play a crucial role in advancing the Commission's strategic priorities.

Importantly, these groups operate without prejudice to the decision-making process of the College of Commissioners.

From a financial and insurance perspective, three project groups stand out for their relevance:

1. European Savings and Investments Union (ESIU) Project Group

2. Startups and Scaleups Project Group

3. Artificial Intelligence (AI) Project Group

Read more here.

Artificial Intelligence in Financial Services

This paper provides an overview of the state of AI in financial services, along with key open questions and emerging risks to be considered by business leaders, policymakers and customers.

The work explores how might AI not only influence the strategic direction of individual financial institutions but also transform the entire financial services landscape in the years to come.

It aims to serve as a valuable resource for stakeholders as they navigate the complexities of AI adoption and strive to harness its potential within the financial sector.

Some key highlights according to the authors:

• Financial services businesses with their data-rich and language-heavy operations are uniquely positioned to capitalize on the developments of AI and have been doing so for years.
• In 2023, financial services firms spent $35 billion on AI, with projected investments across banking, insurance, capital markets and payments businesses expected to reach $97 billion by 2027.
• With much of the existing AI adoption in financial services largely focused on driving efficiency, the attention of business leaders is now shifting towards revenue growth opportunities.
• The rapid maturing of AI, coupled with an expanding list of applicable uses, is pushing the industry towards reinvention at an unprecedented – and often uncomfortable – speed and scale.
• Looking ahead, financial services stakeholders must increase collaboration to address key risks such as data transparency, privacy, cybersecurity and the spread of misinformation, while also closing policy gaps that could hinder the use and innovation of AI.

Read more here.

AI and Financial Services – Current state and direction of travel in Latin America and the Caribbean

This just published IIF Staff Paper examines Artificial Intelligence (AI) in the financial sector, with a focus on Latin America and the Caribbean (LAC).

It explores the potential for AI to drive economic growth in LAC, highlighting use cases that are advancing development in the region, such as payments and fraud prevention, access to credit, and personalized offerings.

AI value chains have emerged as a critical component of the technology, influencing its development and deployment from investment, market, and policy perspectives.

In the context of insurance, AI enables to enhance data availability and quality, allowing institutions to develop products and services that better align with the financing and insurance needs of agricultural businesses.

For example, in Brazil, where agribusiness is a significant contributor to GDP, some insurers offer tailored products built on real-time data and risk assessments. These innovations provide farmers with personalized solutions, such as insurance based on livestock health data, environmental conditions, crop production forecasts, and parametric insurance.

Read more here.

Allianz Risk Barometer 2025

The most important corporate concerns for the year ahead, as ranked by 3,700+ risk management experts from more than 100 countries and territories.

1.       Cyber incidents

2.       Business interruption

3.       Natural catastrophes

4.       Changes in legislation and regulation

5.       Climate change

6.       Fire, explosion

7.       Macroeconomic developments

8.       Market developments

9.       Political risks and violence

10.   New technologies

Read more here.

Pathway 2035 for Financial Innovation

The Swiss Financial Innovation Desk (FIND) has published Pathway 2035 for Financial Innovation—a guide designed to inspire decision-makers in the financial and fintech sectors as they work toward building a resilient and prosperous future.

Drawing inspiration from the visionary 'Finternet' concept introduced by the Bank of International Settlements, this collaborative thesis-discussion paper outlines a roadmap to 2035, envisioning a future where individuals and businesses can manage their financial interactions securely, autonomously, and efficiently.

Read more here.

French Authorities Published Critical Views on FIDA

French authorities have expressed serious concerns about the proposed Financial Data Access (FIDA) regulation, currently under negotiation. While open finance has the potential to benefit users, they argue that FIDA could impose disproportionate costs on businesses, far exceeding the estimates in the European Commission's impact assessment. These costs, they say, lack justification due to the absence of clear use cases.

The authorities also raise critical questions about the regulation’s impact on data protection and the EU’s digital sovereignty, warning that the massive sharing of financial data could expose sensitive information and undermine privacy.

Furthermore, they caution that FIDA may harm the competitiveness of the European financial sector, while introducing unnecessary complexity at odds with the Commission’s stated goal of simplification.

They call for a reassessment of the regulation’s economic impact during upcoming trialogues, urging significant adjustments or even abandonment of the proposal.

Read more here.

InsurTech events and public consultations

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IAIS Public consultation on draft Application Paper on the supervision of artificial intelligence

The IAIS is consulting on its draft Application Paper on the supervision of artificial intelligence. Comments due by Monday, 17 February 2025 24:00 CET.

Read more here.

Thank you!

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