This week’s AI in Insurance news centers on regulatory shifts, emerging risks, and practical challenges of AI integration. At the policy level, the Trump administration’s new AI Action Plan signals a more permissive U.S. stance on AI-related enforcement, while the European Commission has issued guidance on compliance for systemic AI models under the AI Act. In the UK, a public-private partnership involving AXA and top universities aims to create insurance frameworks for AI-specific risks. Meanwhile, Morningstar DBRS highlights both the growth potential and credit implications of AI for insurers. Stories also touch on sustainability concerns, broker adoption gaps, and governance standards, reflecting a maturing but uneven AI landscape.

The Trump administration’s call for reduced FTC scrutiny on AI could shift the enforcement landscape, with potential consequences for insurers using Microsoft and OpenAI technologies.

This UKRI-funded initiative aims to create viable insurance models for AI system failure, bias, and risk transfer—laying the groundwork for market-wide adoption of AI liability cover.

The EU Commission’s guidelines will impact AI foundation models by mandating transparency and risk mitigation, influencing insurers’ compliance and exposure assessments.

The report outlines AI’s dual role as both an efficiency driver and a source of operational and reputational risk, especially in underwriting and claims automation.

Washington’s advisory board reflects growing regulatory attention on AI’s use in decision-making and consumer fairness in insurance practices.

The UN’s warning on AI’s energy demands adds pressure on insurers to assess sustainability risks associated with data centers and AI adoption.

Broker resistance to AI adoption due to legacy thinking and governance concerns highlights a widening tech gap in the insurance value chain.

Voice actors’ concerns over AI-generated content signal growing legal and reputational risks for insurers covering media and creative sectors.

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