As digital technologies reshape industries globally, insurance is undergoing its own transformation. From advanced data analytics to AI, these innovations are revolutionising risk assessment, underwriting, claims management, and the customer experience. But they also raise complex legal, economic, and ethical questions. The July 2025 special issue of The Geneva Papers on Risk and Insurance, edited by Christophe Courbage and Piotr Tereszkiewicz and featuring papers from the 2024 Joint Seminar of the Geneva Association and the European Association of Law and Economics, explores the challenges digital technologies pose in insurance through legal and economic lenses.
The article by Qihao He at al. examines the use of war exclusions in cyber insurance contracts and ways to expand the insurability of large-scale cyber risks. The paper recommends greater government support to make growing cyber risks more insurable. Insurers could also increase their governance role by incentivising preventive cybersecurity measures. The authors propose a multilayered insurance structure whereby private insurers cover standard cyber incidents, while governments act as reinsurers for more extreme cyber events. This hybrid model could extend coverage, ensure compensation, and enhance cyber resilience.
The article by Nele Stroobants explores the tension between the legal duty of individuals to disclose health information when applying for private health insurance and their right to privacy in the digital era. Insurers increasingly use wearables, big data, and AI to assess risk. Though these tools can improve accuracy in setting premiums, they may also lead to privacy breaches, discrimination, and reduced access for high-risk individuals. The article argues for an adapted duty to disclose and a legal framework that ensures both effective insurance practices and strong protection of personal health data.
In their article, Shu Li and Michael Faure analyse how recent EU legislation affects the insurability of AI-related risks. AI introduces complex and unpredictable risks, such as accidents caused by autonomous systems, which challenge traditional insurance models. The authors assess whether the EU’s AI Act and the Product Liability Directive support or hinder the development of insurance solutions for AI-related harm. They identify several concerns – difficulties with risk assessment, potential large-scale losses, and liability issues. Legal frameworks that provide clear and balanced rules are needed to support insurability.
The article by Piotr Tereszkiewicz and Szymon Skalski examines how EU law regulates automated advisory services in insurance distribution, particularly robo-advisors, which are increasingly used to provide personalised insurance recommendations without human involvement. The authors explore whether existing EU regulations adequately protect consumers using these services, finding that while they do to some extent, they are not fully equipped to handle the unique risks posed by automated systems. Clearer rules on explainability, human oversight, and liability are needed. The paper supports thoughtful reform to keep regulation aligned with technological change.
In the final article, Christian Armbrüster analyses the regulatory requirements and legal implications of digital insurance platforms like comparison sites and embedded-insurance portals. Similar to brokers, these platforms must follow the Insurance Distribution Directive (IDD), including duties to provide advice, disclose conflicts of interest, and inform customers when certain insurers are excluded from rankings. Legal risks arise from noncompliance. The article calls for careful alignment of digital platform operations with EU insurance laws to protect consumers and ensure legal certainty.
Access the issue at SpringerLink (subscription required): https://link.springer.com/journal/41288/volumes-and-issues/50-3
