AI Act: Europe’s Bid for Trustworthy AI Development and Global Leadership

AI systems must be transparent, free from bias, and easily explainable, writes Robin Gilthorpe, CEO of Earnix. These criteria are not only essential for regulatory compliance but will also help build trust with consumers and regulators. For reinsurers, balancing innovation with responsibility is crucial to ensuring that AI’s benefits do not come at the expense of fairness or accountability.

The AI Act is particularly relevant in this context, mandating greater transparency in AI systems, especially for models used in risk assessments or underwriting decisions. This is a pivotal moment for reinsurers who are increasingly leveraging AI for critical tasks such as loss reserving and claims management. By analysing vast amounts of historical claims data and real-time market trends, AI-powered models improve reserve estimation, leading to better capital allocation and risk management.