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Reform Support

Supporting reforms to develop well-regulated, stable and competitive financial markets

Funding Programme
Technical Support Instrument (TSI)

Data Ethics within Insurance

The European Commission supported the Central Bank of Ireland in strengthening its understanding of the emerging data and related technology risks in the insurance sector, with a view to evolving supervision for firms in an increasingly digital world. 


The growing digitalisation of the financial sector is prompting an increasing use of data through both new modelling techniques and changes within the insurance market. While these changes can result in benefits for customers and insurers through more efficient new business and claims processes, there is a risk that these changes could result in poorer customer outcomes. These could arise through reduced access to insurance protection on an affordable basis for higher risk customers, as well as the introduction of bias in product design, underwriting, pricing and claims payment. 

Support delivered 

Project activities were developed in a number of key phases, including mobilisation, research and analysis, assessment of options and development of tailored recommendations. The European Commission and the Central Bank of Ireland are committed to establishing appropriate communication channels with relevant stakeholders throughout the whole duration of the project, with a view to socialise the debate and raise awareness about the impact of data in the insurance sector and beyond. 

Expected results 

The objective of the project was to understand the implications, nature and extent of the potential risks to relevant (re)insurance industry stakeholders stemming from the increased use of a wide range of data as well as from the underlying related technologies. The development of specific guidance addressing such emerging challenges of digitalisation in insurance will help mitigate risks to adverse customer outcomes. Over the long term, the project will contribute towards increased financial stability and stronger consumer protection.