The European Insurance and Occupational Pensions Authority (EIOPA) published a market survey report on generative artificial intelligence (Gen AI) in the European insurance sector, covering adoption, use cases and governance. The survey indicates rapid uptake, with Gen AI largely being deployed to improve internal efficiency and costs, while firms keep most applications at early stages and maintain strong human oversight. The findings draw on responses from 347 insurance undertakings across 25 European Union and European Economic Area countries, with coverage estimated at around 80% of 2024 EU gross written premiums. Sixty-five percent of undertakings reported active Gen AI use and a further 23% planned adoption within three years, but 64% of reported use cases remained at proof-of-concept stage and only 32% were in production. Of 957 use cases reported, 64% were back-office focused and 36% customer-facing, with the most active current areas being customer service, claims management and sales and distribution, while fraud detection had the highest planned adoption over the next three years. Data privacy and security, regulatory compliance and skills shortages were the main implementation challenges, and “hallucinations” were the top-cited risk alongside cybersecurity, data protection and explainability issues. Reliance on third-party providers was described as high, with risk mitigants centred on contractual clauses and service levels, testing and audits, and many firms viewing the Artificial Intelligence Act’s Gen AI provisions as helpful for provider reliability. EIOPA said it will continue monitoring Gen AI risks and benefits, assess the impact of the Artificial Intelligence Act in insurance, and support cross-ESA work on the Digital Operational Resilience Act and oversight of critical ICT third-party providers. It also pointed to follow-on work including a Consultative Expert Group on Data Use report expected by Q2 2026 and continued SupTech initiatives exploring Gen AI for supervisory efficiency.
European Insurance and Occupational Pensions Authority 2026-02-02
European Insurance and Occupational Pensions Authority survey finds 65% of EU insurers already using generative AI and flags hallucination and third-party risks
The European Insurance and Occupational Pensions Authority (EIOPA) released a survey on generative artificial intelligence (Gen AI) in the European insurance sector, highlighting rapid adoption for internal efficiency, with most applications at early stages and strong human oversight. Key challenges include data privacy, regulatory compliance, and skills shortages, while EIOPA plans to monitor Gen AI risks, assess the Artificial Intelligence Act's impact, and support related regulatory initiatives.