InsurTech4Good Weekly Newsletter – #7, 2025

Good morning!

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

As always, I would appreciate it if you share this newsletter with any colleagues who might find it valuable.

Andres

EIOPA consults on its Opinion on Artificial Intelligence governance and risk management

EU insurance watchdog EIOPA is seeking feedback on its Opinion on Artificial Intelligence governance and risk management.

The opinion provides supervisors and insurance undertakings guidance on how to interpret and implement insurance sector provisions in light of the use of AI systems in insurance.

EIOPA’s opinion provides further clarity on the main principles and requirements foreseen in insurance sectoral legislation that should be considered in relation to the use of AI systems.

It applies to those AI systems that are not considered as prohibited AI practices or high-risk under the AI Act.

The Opinion is in line with the underlying principles and requirements of the AI Act and other international initiatives in this area such as those by the OECD, the G20, or the IAIS, thereby supporting a harmonized approach.

Read more here.

Gallager Re 2024 Global InsurTech report

Gallager Re 2024 Global InsurTech report series explores the impact of Artificial Intelligence on insurance industry, analyzing AI's functions and processes within the (re)insurance value chain.

This final report in the series examines "Claims", a process that begins with the first notice of loss and continues through validation, adjustments, approval, settlement, and the transfer of funds to the customer.

Key findings for Q4

• Global InsurTech funding ticked up 0.5% quarter on quarter, from USD1.098B in Q3’23 to USD1.103 billion in Q4’23.
• Global InsurTech funding decreased 43.7% year on year, from USD8.0 billion in 2022 to USD4.51 billion in 2023.
• 39.9% of all Q4’23 InsurTech funding went to mega-round deals — a six-quarter high.
• Global deal share among US-based InsurTechs rose 5.50% between 2022 and 2023 — the largest gain among all countries.
• Q4’23 saw 41 venture technology investments from (re)insurers.

Read more here.

The European Commission's 2025 work plan and insurance

The European Commission's 2025 work plan has published, and for the insurance and financial sectors, the key takeaway is that the Financial Data Access (FiDA) proposal has been moved back under pending proposals compared to the leaked version!

What does this mean? Regardless of whether you support or oppose FiDA, trilogues will most likely start now. If you still want to influence the negotiations, this is where you should focus your efforts.

For additional new proposals that are important for finance, insurance, and innovation—either directly or indirectly—read more here.

Embedded supervision of decentralized finance – insurance angle

The European Commission has just published a report presenting the outcome of a study undertaken by IBM Promontory for the Commission on embedding supervision in decentralized finance (DeFi).

The project comprised four distinct phases: identifying use cases and protocols to assess, defining elements of comparison (benchmarks) with supervision in traditional finance (TradFi), developing a software application to collect data from the ledger, and analyzing the collected data to assess the potential of embedded supervision.

The paper also examined insurance use cases, namely Nexus Mutual.

The topic is getting regulatory attention beyond Europe. The Bermuda Monetary Authority (BMA), the financial regulatory authority of Bermuda through its Innovation Hub activities, invites proposals for a collaborative pilot project aimed at testing Embedded Supervision practices within the context of DeFi.

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.