On May 8, the European Insurance and Occupational
Pensions Authority (EIOPA) published a
report setting out the findings of its EU-wide thematic review on
the use of Big Data Analytics
(BDA) in motor and health insurance. The aim of
the review was to gather empirical evidence on the benefits and
risks arising from BDA, including artificial intelligence, machine
learning and cloud computing services.
The report found that there was a strong tendency towards
increasingly data-driven business models throughout the insurance
value train and that a majority of firms were either using, or
contemplating using, BDA tools.
The report notes that there are still risks to be addressed,
including ethical issues around the fairness of the use of BDA, as
well as regarding the accuracy, transparency and auditability of
BDA tools. It highlighted the biases inherent in data that being
used could be reinforced through machine learning algorithms if
firms do not have adequate
