JUNE | Open Finance in Brazil & Canada | FIDA | SupTech | Open Data | Blockchain | Climate risk | Diverse consumers

Welcome to the June edition of my personal monthly newsletter on InsurTech regulation and policy!

My aim with this newsletter is to keep you up to date with the latest developments in InsurTech regulation and policy in the EU and beyond.

However please note that the views expressed in this newsletter are exclusively my own and should not be considered as representing the views/policies of the EIOPA with which I′m affiliated.

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#InsurTech #FinTech #insurance #innovation #AI #ArtificialIntelligence #OpenFinance #OpenInsurance #GenAI #OpenData #SupTech #FIDA #Blockchain

AFM and DNB publish report on the impact of AI on the financial sector and supervision

The rapid development of artificial intelligence (AI) poses challenges for the supervisory work across the globe.

Dutch supervisory authorities AFM and DNB have published a report with criteria and areas of attention for shaping the supervision of AI.

Read more here.

A Fourth Wave of Open Data? Exploring the Spectrum of Scenarios for Open Data and Generative AI

This recent paper aims to unpack the emergent relationship between open data and generative AI. It provides a range of scenarios in which open data and generative AI could intersect.

Furthermore, it outlines how open data providers and other interested parties can help make open data “ready” for those specific scenarios.

Read more here.

New EU rules make high-value datasets available to fuel artificial intelligence and data-driven innovation

New EU rules making high-value datasets available to fuel artificial intelligence and data-driven innovation are now applicable.

These datasets contain information on six thematic areas laid out in the Open Data Directive:

1. Earth observation and environment
2. Meteorological
3. Companies
4. Geospatial
5. Statistics
6. Mobility

The data will be available for free in machine-readable format, accessible via APIs.

Read more here.

Climate risk platform for financial authorities

The Bank for International Settlements (BIS) and the Monetary Authority of Singapore (MAS) have developed a blueprint for a platform that integrates regulatory and climate data to help financial authorities identify, monitor and manage climate risks in the financial system.

Read more here.

Intelligent financial system: how AI is transforming finance

This paper analyses how generative AI and emerging AI agents and artificial general intelligence will impact finance. It focuses on four functions of the financial system: financial intermediation, insurance, asset management and payments.

Authors also assess the implications of advances in AI for financial stability and prudential policy and potential spillover effects of AI on the real economy.

To address the transformative impact of advances in AI on the financial system, it proposes a framework for upgrading financial regulation based on well-established general principles for AI governance

Read more here.

Blockchain technology in Europe

The EU Blockchain Observatory & Forum (EUBOF) has released its conclusion report, marking the end of its third contractual round. It gives an overview of the activities, achievements, and impacts of EUBOF while providing insights into the future of blockchain technology in Europe.

The report serves as a valuable resource for policymakers, industry leaders, academics, and blockchain enthusiasts, providing a comprehensive understanding of the current state and future potential of blockchain technology in Europe.

Read more here.

SupTech in finance

This paper identifies factors that could contribute to making SupTech tools critical to supervision.

The aim is to help supervisory authorities maximise the potential of their deployed SupTech tools to enhance the efficiency and effectiveness of their supervisory processes.

Read more here.

European Commission seeks input from industry on the use of artificial intelligence in finance

European Commission has launched targeted consultation on AI in finance to gather input from all financial services stakeholders including companies and consumer associations.

Views are particularly welcome from financial firms that provide or deploy/use AI systems.

The views from stakeholders will support the assessment of market developments and risks related to AI and in the implementation of the AI Act in the financial sector.

Read more here.

AI in Finance

Artificial Intelligence will change the future of insurance, finance and money.

This longer report discusses what use cases are likely in the next couple of years and beyond.

Read more here.

IAIS Draft Application Paper on how to achieve fair treatment for diverse consumers

The fair treatment of diverse consumers is an essential component for fostering a resilient, innovative and trustworthy insurance sector so take some time and share your views on this just published IAIS consultation paper.

A public background session webinar will be held on 17 July 2024 14:00-15:00 CEST to present the application paper and answer any questions from stakeholders.

Feedback on the paper is invited by 25 September 2024 24:00 CEST.

Read more here.

Open Finance in Canada and Brazil

Building on the principles of Open Banking, open finance extends to a broader range of financial products and services, including mortgages, savings accounts, insurance, pensions, investments, and more.

This White Paper highlights the benefits of consumer-driven finance for small businesses in Canada. It includes a dedicated chapter on global look at Open Finance mapping developments in Brazil, the UK and Australia.

Read more here.

Another recent report gives an overview of Open Finance in Brazil.

Read more here.

Financial Data Access (FiDA) progress report

Do you know what a Council Progress Report is? The presidency of the Council of the European Union is responsible for the functioning of the Council of the European Union, which is the co-legislator of the EU legislature. It rotates among the member states of the EU every six months.

At the end of the six-month term, the presidency often publishes a progress report summarizing the state of play of certain legislative proposals (not to be confused with a general approach, which is a political agreement at the Council level).

If you want to see an example, you could have a look at the recent Financial Data Access (FiDA) progress report here.