18 February 2025
The Global Federation of Insurance Associations (GFIA) welcomes the opportunity to respond to the International Association of Insurance Supervisors' (IAIS) draft application paper on the supervision of artificial intelligence (AI). In its response, GFIA notes that it shares the commitment of supervisors and regulators to ensure AI is used responsibly, whilst also fostering innovation to the benefit of consumers and the industry.
Given the rapid development of AI, GFIA underscores the importance of maintaining an open dialogue between insurers and supervisors. Overly prescriptive or restrictive guidance risks becoming quickly obsolete and could hold back the industry from benefiting from AI.
GFIA also welcomes the IAIS recognition that AI adoption is accelerating across jurisdictions, with insurers taking a prudent approach to its implementation. While the draft paper appropriately highlights the risks of AI, GFIA also urges the IAIS to emphasise its benefits given AI’s potential to improve customer service, claims processing, risk assessment, and mitigation.
GFIA strongly supports the principles of proportionality and risk-based supervision outlined in the draft. The industry works within well-established regulatory frameworks, and AI should be supervised so that it builds upon existing structures rather than duplicating requirements.
In this regard, GFIA stresses the importance of aligning guidance with local regulation. A localised, dialogue-based approach between insurers and regulators would be more effective than overly rigid global guidance. Insurers also should be responsible for managing AI risks within the scope of their control, in compliance with local laws and rules.