IAIS publishes application paper on supervision of AI in insurance
The International Association of Insurance Supervisors (IAIS) has published the final version of its Application Paper on the supervision of artificial intelligence (AI), following a public consultation held earlier in 2025. The paper provides guidance on how supervisors and insurers can apply existing insurance core principles (ICPs) to the use of AI systems, reinforcing that expectations around governance, conduct, and risk management remain central as AI technologies are adopted in the insurance sector. It covers five key areas: risk-based supervision and proportionality, governance and accountability, robustness, safety and security, transparency and explainability, and fairness, ethics and redress. The IAIS notes that these principles are intended to support supervisors in assessing how insurers implement AI in a manner consistent with sound prudential and conduct practices. A public webinar will be held on 17 July 2025 to present the final paper and respond to stakeholder questions and will also introduce the IAIS’s new consultation on its draft Application Paper on operational resilience objectives and toolkit.