AI risks in insurance : an analysis of the legal and regulatory controls under the AI Act, GDPR and liability systems

Abstract

This dissertation examines the regulatory framework governing AI within the EU insurance sector, focusing on the interplay between the AIA, GDPR, and the rPLD. The central aim is to analyze the AIA's risk-based approach, particularly its classification of AI systems used in insurance risk assessment and pricing as high-risk, and the mandatory requirements for these systems. The role of the GDPR in regulating the processing of personal data by AI systems in the insurance industry is investigated, emphasizing transparency, fairness, and the rights of data subjects. Additionally, the rPLD's modernised civil liability framework is evaluated, addressing challenges posed by AI, such as the 'black box' issue and the expanded definition of ‘product’ to include AI systems. Through legal and doctrinal analysis, this thesis provides a comprehensive understanding of the current EU legal and regulatory landscape governing AI in the insurance sector, highlighting the interconnected roles of the AIA, GDPR, and rPLD in balancing innovation with the protection of fundamental rights and consumer trust. The findings underscore the complexity and necessity of robust regulatory measures to ensure responsible AI deployment in insurance.