The impact of AI on the insurance sector
Pérez-Llorca and IE Law School have organized a new conference of their Chair of Business Law, in which they have analyzed the impact on the insurance sector of the adoption of new technologies and models based on Artificial Intelligence, as well as the new legal challenges and regulatory developments whose knowledge is essential to understand the various practical implications of its use.
The event was attended by Joaquín Ruiz Echauri, insurance and reinsurance partner at Pérez-Llorca; David González Gallardo, head of the insurance unit at Microsoft; Rafael Fernández, insurance and reinsurance partner at Pérez-Llorca and adjunct professor at IE Law School; Araceli Moyá, privacy lawyer at sanitas; Raúl Rubio, intellectual property, industrial property and technology partner at Pérez-Llorca; Rodrigo Fuentes Gómez, Professor IE Law School and director of people, organization and general secretary at Axa Spain; and Felipe Vázquez, insurance and reinsurance partner at Pérez-Llorca.
Opening by Rafael Fernández
The event was opened by Rafael Fernández, who presented the theme of the session and highlighted the importance of analyzing from a legal and practical point of view the response of the legislator and entities of the insurance sector in the adaptation of this technology after its irruption in society in 2023, giving way to the first of the speakers, David González.
David González on Technological Adoption and AI in Insurance
The Microsoft expert highlighted the relevance of technological adoption in insurance companies, and explained how Artificial Intelligence is revolutionizing the policyholder experience by facilitating more natural interactions, as well as empowering employees and insurance agents. He also highlighted how AI optimizes risk management and transforms key processes in the cloud, enabling companies to bring new products to market in a more agile way. “Sixty-five percent of use cases in the insurance industry are focused on claims processing and customer service,” González Gallardo pointed out.
Regulatory Challenges Discussed by Raúl Rubio and Araceli Moyá
Next, Raúl Rubio and Araceli Moyá addressed the regulatory challenges facing the industry, stressing that the intangibles generated around Artificial Intelligence pose particularly complex challenges in their qualification. Both agreed that, although the regulatory framework may evolve, governance and compliance must remain fundamental pillars. In this regard, Moyá stressed the importance of understanding the regulations and fostering sustainable governance: “Although AI is not new, its integration with the new European regulation may slow down internal processes, but it should not stop the implementation of new AI-based solutions, and it should not be a brake on innovation.
The challenge will be to manage, especially at the beginning, the legal uncertainty that may arise”. For his part, Rubio put the focus on the ethical component and emphasized the need to establish ethics committees to promote transparency in the face of different scenarios and not be limited to cases of uses marked by regulations. “The biggest risk for organizations in the coming years will be reputational. It may happen that companies carry out practices that are not prohibited, but are reprehensible to the market,” said Rubio.
The Human Factor in Technology Adoption
In the next panel, Rodrigo Fuentes Gómez emphasized that, in the case of insurance companies, as in any other industry, the human factor is fundamental. He stressed that entities face the challenge of extending the benefits of digitalization to all teams in the organization, and not just a small specialized group. “The challenge is to lead the company to embrace technology as part of its culture, with a structured plan that does not remain only in the technical team,” he said.
Felipe Vázquez on Governance Across the Organization
Along these lines, Felipe Vázquez argued that governance should not be a responsibility that falls exclusively on the control departments: “The key is to build a robust control culture at all levels of the organization, which ensures robustness and compliance without sacrificing operational agility”. In this aspect, Fuentes Gómez valued the importance of having key figures such as the Chief Data Officer and the Data Protection Officer, capable of implementing functional processes that do not hinder the company’s operation.
Image: Araceli Moyá, privacy lawyer at Sanitas; and Raúl Rubio, intellectual property, Industrial and Technology Partner at Pérez-Llorca.
