Digitalisation and artificial intelligence in insurance: manifestations and legal framework

Abstract

This paper provides an overview of the changes that the insurance contract and its distribution are undergoing due to the introduction of AI, which affect all phases of the contract, ranging from advertising and risk selection to communication with policyholders, risk control during the contract, claims management and fraud prevention. Risk assessment and pricing in health and life insurance is logically considered as high risk by the artificial intelligence Regulation, as the risks of exclusion and discrimination between policyholders require special control. This phenomenon is also reflected in new types of contracts (telematic, on-demand, parametric) that are a clear departure from traditional insurance. For its part, the embedding of insurance in online contracts represents a clash with the traditional mode of distribution. Finally, it also examines the effect that the application of the EU Data Act may have on telematic insurance.