The European Insurance and Occupational Pensions Authority (EIOPA), Europe’s insurance watchdog, has issued guidance to supervisors on how existing sector rules apply to rapidly evolving artificial intelligence (AI).
The opinion piece “follows a risk-based and proportionate approach to reach a balance between the benefits and risks of AI systems”, according to EIOPA. The move comes as the use of AI tools continues to grow across the insurance value chain, from pricing and underwriting to claims management and fraud detection.
Since the EU’s AI Act came into force in summer 2024, AI systems in all sectors, including insurance, have been subject to horizontal regulation. Under the Act, AI used for risk assessment and pricing in life and health insurance is classed as “high-risk” and must meet stringent requirements.
EIOPA stated that AI in insurance is already governed by sector-specific rules, such as the Insurance Distribution Directive and the Solvency II Directive. These provide broad, technologically neutral governance and risk-management principles, which EIOPA described as “a sound approach” for integrating AI-based tools.
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The opinion is intended to help supervisors interpret these provisions in the context of AI, without overlapping with the AI Act. For instance, AI systems categorised as high-risk or prohibited under the AI Act are excluded from its scope. The document does not introduce new legal requirements or expand the remit of existing legislation.
The guidance also aims to foster greater supervisory convergence among National Competent Authorities and give market participants clarity on supervisory expectations. Governance principles outlined include data governance, record-keeping, fairness, cybersecurity, explainability and human oversight.
According to the statement: “The EIOPA plans to develop more detailed analyses of specific AI systems or emerging issues related to their use in insurance, and to provide further guidance where appropriate.”
