InsurTech4Good Weekly Newsletter – #5, 2025
Good morning!
Here is a summary of the most important InsurTech regulatory and policy news that caught my attention last week.
In addition, I have a personal update that may be of interest to you. Later this week, I will launch my interview series, Insurance 2050.
The goal of the Insurance 2050 Interview Series is to create a platform where InsurTech founders, CEOs, and top insurance regulators and policymakers share their journeys and insights. This series aims to:
- Inspire and support fellow founders and regulators/policymakers.
- Foster closer collaboration and understanding between these two groups.
- Provide thoughtful, in-depth discussions on the future of insurance and its biggest challenges.
To ensure you never miss an interview or an issue of this curated weekly overview, please subscribe here. I would also appreciate it if you shared it with your colleagues who might find it useful.
If there's anything I can help with or if you have any suggestions on how to improve this newsletter, please let me know.
Andres
News and reports
AI literature and insurance
As of 2 February, according to the EU AI Act providers and deployers of AI systems shall take measures to ensure, to their best extent, a sufficient level of AI literacy of their staff and other persons dealing with the operation and use of AI systems on their behalf.
It should take into account their technical knowledge, experience, education, and training and the context the AI systems are to be used in, and considering the persons or groups of persons on whom the AI systems are to be used.
AI literacy means skills, knowledge and understanding that allow providers, deployers and affected persons, taking into account their respective rights and obligations in the context of the AI Act, to make an informed deployment of AI systems, as well as to gain awareness about the opportunities and risks of AI and possible harm it can cause.
A few key considerations from my side:
1. Do not underestimate this requirement—it’s more than just a box-ticking exercise.
2. Different roles in your organization require different levels of AI literacy.
3. AI literacy isn’t just about compliance; it can also drive innovation within your organization.
Read more here.
Artificial Intelligence and economic and financial policymaking
At their final meeting under the Italian G7 Presidency, Finance Ministers and Central Bank Governors received a report from a High-Level Panel of Experts on AI’s impact on economic and financial policymaking.
Led by Dr. Luis Videgaray, the report explores AI’s macroeconomic effects, risks to financial stability, and potential uses by policymakers.
While recognizing AI’s transformative potential, it highlights ongoing uncertainties and offers non-binding policy recommendations tailored to different national contexts.
Read more here.
Insurers partnering with Academia to advance AI innovation
Leading insurers are increasingly collaborating with top academic institutions to explore the potential of artificial intelligence (AI) in the insurance sector. These partnerships aim to drive innovation, enhance risk assessment, and improve operational efficiency.
By combining industry expertise with cutting-edge research, insurers can develop more robust AI applications, ensuring smarter risk management, improved customer experiences, and greater operational efficiency.
Read more here.
The EU Competitiveness Compass: What It Means for Insurance and InsurTech
The European Commission has published the EU Competitiveness Compass, a major initiative providing a strategic and clear framework to steer the Commission's work.
The Competitiveness Compass sets out a path for Europe to become the global hub where future technologies, services, and clean products are invented, manufactured, and launched.
It aligns with the EU’s goal of becoming the first climate-neutral continent.
The framework is structured around three key pillars:
- Closing the innovation gap – Enhancing productivity through innovation by fostering a more dynamic industrial structure.
- A joint roadmap for decarbonisation and competitiveness – Integrating decarbonisation policies with industrial, competition, economic, and trade policies to drive sustainable growth.
- Reducing excessive dependencies and increasing security – Strengthening Europe’s economic policies by integrating security and strategic autonomy considerations.
In addition, the Compass identifies five horizontal enablers to reinforce competitiveness across all sectors:
- Simplification
- Removing barriers in the Single Market
- Financing
- Skills and quality jobs
- Better coordination
While insurance is not explicitly mentioned, this does not mean the Competitiveness Compass will have no effect on the sector.
I summarized main impacts to insurance sector here.
Generative AI in Action: Opportunities & Risk Management in Financial Services
This paper takes looks current and emerging use cases of generative AI in the financial sector, along with emerging risk mitigation techniques.
It lays out the broad state of play and the evolving regulatory environment.
The paper then takes a close look at three real generative AI tool case studies:
- Customer complaints processing agent
- Software development lifecycle
- KYC assistant tool
It also explores the emerging mitigation approaches for key generative AI risks:
- Reliability of outputs (hallucinations, accuracy, etc)
- Data privacy and security risks
- Third party considerations
What is interesting, by the way, is that the paper focuses on uses that are either already deployed today or in advanced stages of development (i.e., not so much blue-sky thinking, which is sometimes the approach).
Seven specific areas are highlighted:
1. Customer engagement and personalized marketing
2. Knowledge management and information retrieval
3. Software development and data management
4. Intelligent workflow and email processing
5. Fraud and financial crime detection
6. Legal, contractual, and compliance text analysis
7. Desktop and meeting productivity
Read more here.
Key insights on the use of consumer-facing AI in global financial services
Artificial Intelligence (AI) and Machine Learning (ML) technologies are no longer a surprise when it comes to their transformative potential for consumer-facing financial services.
These technologies promise to enhance consumers’ financial lives while making financial markets more efficient, accessible, and tailored to their needs.
This report outlines key insights into consumer-facing AI and its implications for global financial innovation.
It is based on the Global Financial Innovation Network (GFIN) AI Project, co-led by the UK Financial Conduct Authority (FCA) and the Dubai Financial Services Authority (DFSA).
Read more here.
Thank you!
Thanks for reading! If you need help with regulatory strategy, InsurTech research, thought leadership, or policy advisory, feel free to reach out on LinkedIn or via email.
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