European Union: European Insurance and Occupational Pensions Authority adopted report on generative Artificial Intelligence use by European insurers

On 1 February 2026, the European Insurance and Occupational Pensions Authority (EIOPA) adopted a report detailing the adoption and implementation of generative Artificial Intelligence (Gen AI) within the insurance sector of the European Union. Based on responses from 347 undertakings across 25 countries to a consultation conducted in 2025, the inquiry noted that nearly two-thirds of insurers are actively utilising the technology, primarily in proof-of-concept stages. The stated aims for adopting Gen AI tools include improving operational efficiency, reducing costs, and enhancing both customer experience and decision-making processes. The report indicated that 64% of current use cases focused on back-end productivity, such as data extraction from medical reports and content generation for emails or contracts, while 36% involved customer-facing applications like chatbots. Respondents identified data privacy, regulatory compliance, and a lack of skilled personnel as primary obstacles to deployment. Hallucinations were cited as the most significant technical risk, followed by cybersecurity and data protection concerns. The report highlighted that insurers increasingly rely on third-party providers and pre-trained models, referencing the Artificial Intelligence Act (AI Act) and the Digital Operational Resilience Act (DORA) as relevant regulatory frameworks for managing these dependencies. To mitigate risks, the report showed that 49% of surveyed undertakings have established dedicated AI policies, an increase from approximately 25% in 2023. The EIOPA stated that it would continue to monitor the effects of the implementation of the EU AI Act and the Digital Operational Resilience Act on the insurance sector.