The Future of Digital Regulation and Innovation in the Insurance Sector

Europe is facing important challenges: how to foster innovation through digital transformation, particularly with the rise of artificial intelligence, while navigating an increasingly complex regulatory environment. Over the past decade, the EU has introduced a series of horizontal digital regulations, including the GDPR, Cyber Resilience Act, and AI Act, on top of existing sector-specific rules. While these frameworks aim to protect consumers and ensure ethical innovation, they also raise concerns about regulatory fragmentation and Europe’s ability to compete globally with tech giants based outside the EU. In recent years, many policymakers and industry representatives alike have called for a better balance between simplification and oversight in digital regulation, particularly in highly regulated sectors such as financial services. 

With these important priorities in mind, the GDV Brussels office organized the “Insurance in the Digital Age: Balancing Simplification and Oversight” event on 15 July. The panel included Dr. Philipp Raether (Chief Privacy & AI Trust Officer at Allianz SE), Diana Vlad- Câlcic (Team Leader in DG Connect, European Commission), and Anna Martin (Head of Financial Services at the European Consumer Organization), with the GDV’s own Florian Wimber as moderator. 

Recognition of the urgent need for regulatory clarity

The speakers discussed three major topics of the Digital Omnibus: data, cybersecurity, and artificial intelligence. The conversation highlighted a shared recognition of the urgent need for regulatory clarity and coherence. While consumer protection remains crucial, innovation must not be slowed down by overly complex or fragmented regulatory frameworks. 

The General Data Protection Regulation (GDPR) was praised for building trust among consumers and employees, especially in sensitive areas like health and financial data. However, participants noted that over time, the regulatory environment has become more complex, with overlapping rules and procedures, such as binding corporate rules for international data transfers. This complexity has led to calls for greater clarity and simplification, not deregulation, to ensure that innovation can thrive without compromising fundamental rights.

Opportunities and risks of AI

The discussion also focused on how Artificial Intelligence (AI) and big data reshape subjects like claims management. While AI can greatly accelerate procedures that before required extensive resources, such as settling claims, these procedures are not without risk. Concerns were also raised about the possibility of bias and discrimination in AI systems. While some argued that regulation can be seen as a barrier, others highlighted that it could push technology and AI to innovate in a more ethical and consumer-centred direction. 

Finally, the speakers agreed on the need for a balanced approach: one that reduces unnecessary legal complexity, harmonizes enforcement at the EU level, and ensures that digital transformation, when implemented responsibly, can lead to better outcomes for both businesses and consumers.

The GDV would like to thank the speakers for sharing their insights and expertise. Their thoughtful and honest contributions helped drive a discussion on the future of digital regulation and innovation in the insurance sector.