Comments by Insurance Europe on the EU Cloud and AI Development Act: Insurance sector discusses regulatory implications and data privacy concerns in the proposed legislation.
In a recent response to the European Commission's consultation on the upcoming EU Cloud and AI Development Act, Insurance Europe has voiced strong support for the EU's goal to strengthen digital infrastructure and boost AI adoption across Europe. However, the organisation has emphasised the importance of adopting a pragmatic, investment-led, and open approach to avoid potential pitfalls that could harm competitiveness and access to essential global technologies.
The proposed Act, which aims to strengthen digital infrastructure and boost AI adoption in the EU, is seen as crucial for meeting the needs of businesses and public services and enhancing competitiveness. Gerard van Loon, CEO of Alta Signa, in an article in "Insurance Regulation", discusses the evolving risks in Europe's financial institutions, including the risks facing banks, fintech firms, and other financial institutions, which are becoming increasingly complex.
Arthur Hilliard, Senior Policy Advisor at Insurance Europe, has commented on the EU's goal of strengthening its digital foundations. He emphasises that building capacity and fostering innovation in Europe should be the starting point, not limiting EU companies in their choice of global providers. Insurance Europe warns against restrictive digital sovereignty measures that exclude non-EU providers without viable alternatives, as this could limit access to critical technologies needed by the insurance sector and broader financial services.
The organisation backs the ambition to increase investment and capacity, aiming to triple current cloud and AI capacity within seven years, which aligns with the Act’s objectives. Hilliard sums up their stance by stating, "We fully support the EU’s goal of strengthening its digital foundations. But to be effective, this must start with building capacity and fostering innovation in Europe – not limiting EU companies in their choice of, or access to, existing, trusted global providers."
The European Union's Artificial Intelligence Act, the first law on AI by any regulator, warns companies to allocate more resources to managing risks from Artificial Intelligence ahead of its introduction. The proposed Act is a wake-up call for companies to prepare for increased regulation of AI. The success of AI adoption, according to Insurance Europe, depends on the EU taking a pragmatic, investment-led, and open approach.
Emerging threats such as climate change and cyber risks are also highlighted in the article. The risks facing banks, fintech firms, and other financial institutions in Europe are becoming increasingly complex, and Insurance Europe believes that the EU's approach to AI adoption should be pragmatic, investment-led, and open to avoid restricting access to global technologies.
In summary, Insurance Europe supports the investment and innovation goals of the Cloud and AI Development Act but urges the EU to avoid protectionist or restrictive measures that could harm competitiveness and access to essential global technologies. The organisation's stance underscores the importance of a balanced approach in the EU's digital strategy, ensuring that Europe remains at the forefront of innovation while maintaining access to the best global technologies.
- To bolster the success of AI adoption in accordance with the Cloud and AI Development Act, Insurance Europe advocates for a pragmatic, investment-led, and open EU approach to avoid limiting access to global technologies.
- The European Union's Artificial Intelligence Act, a regulatory milestone for AI, underlines the need for companies to dedicate more resources to AI risk management as they prepare for increased regulation.
- Insurance Europe, in its stance on the EU's digital strategy, emphasizes the importance of a balanced approach, highlighting the need to build capacity, foster innovation in Europe, and maintain access to global technologies, ensuring Europe remains at the forefront of technological advances.
