Urgent Call for Legislative Overhaul
Frédéric de Courtois, the head of the insurance lobbying group, has voiced strong concerns about the European Union’s new regulations on artificial intelligence, urging the von der Leyen Commission to reconsider existing laws on climate change, investment, and data. He argues that for Europe to maintain its competitive edge, significant changes in these policies are necessary. As the new European Commission begins its term, financial sector lobbyists have presented a list of regulations they believe should be revised or eliminated.
A Push for Competitiveness
Ursula von der Leyen has committed to making competitiveness a central theme during her second term as president of the European Commission. With economic indicators revealing that Europe is lagging behind the US, businesses are increasingly pointing to EU regulations they perceive as obstacles to growth. De Courtois identifies the recently established rules regarding artificial intelligence as one such regulation that could hinder progress within the insurance industry.
Stricter AI Regulations Raise Concerns
The new legislation on artificial intelligence introduces stringent requirements for the riskiest AI systems, including potential fines of up to 7% of annual turnover for violations. While former EU Commissioner Thierry Breton praised the regulation as a model for trustworthy AI, the insurance sector feels uncertain about its practical implications. De Courtois admitted to Euronews that he has “no clue” how to implement the AI Act, despite the critical importance of AI technology in pricing, claims management, and underwriting.
Preference for Principles Over Prescriptive Rules
De Courtois emphasized that the insurance industry should address issues related to AI, such as bias and privacy invasions, through guiding principles rather than an extensive and prescriptive 144-page regulation. He criticized the EU’s tendency to seek definitive answers for every scenario, advocating instead for a balanced approach that prioritizes innovation before imposing regulations.
The Need for Pragmatism in Climate and Environmental Regulations
In a recent address, von der Leyen assured Members of Parliament that she would work to alleviate excessive regulatory burdens. Many lobbyists suggest starting with financial laws that mandate businesses to report the environmental impact of their supply chains, which have created conflicting requirements. De Courtois labeled climate change the “biggest threat” and highlighted that insurers often bear the costs of extreme weather events. He urged the necessity for policymakers to approach climate-related regulations with flexibility and pragmatism while still recognizing the urgency of taking action.
SOURCE: Ref Image from RTE
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