Supplementary Report on Opportunities and Risks Related to the AI Act

Overview

In recent years, artificial intelligence (AI) has assumed an increasingly central role in the modern economy and society and could become one of the biggest game changers for the insurance and financial industries in the medium term. AI offers significant potential for optimising risk assessments, increasing efficiency in claims assessments, fraud detection, and other use cases. At the same time, the development and application of AI also give rise to a wide range of risks. To ensure the safe and ethical use of AI, the European Union developed the AI Act, which was officially adopted on 21 May 2024. Most provisions of the regulation will apply from 2026 onwards (24 months after its entry into force).

Against this background, and due to the high degree of uncertainty regarding future developments and the lack of historical observation data, emerging risks related to the AI Act in particular represent a significant challenge for insurance undertakings.

Furthermore, traditional actuarial methods can only be applied to a limited extent for risk mitigation, while the potential impact of these risks may nevertheless be significant.

Building on the report The Artificial Intelligence Act in the Actuarial Context prepared by the Actuarial Data Science Committee, this report discusses the fundamental implications of the new AI Act provisions for the insurance industry, with a particular focus on emerging risks. These implications are presented in Chapter 3.

Approval

This report was approved by the Enterprise Risk Management Committee on 19 May 2025.