IDEAS home Printed from https://ideas.repec.org/a/pal/gpprii/v50y2025i3d10.1057_s41288-025-00352-5.html
   My bibliography  Save this article

The insurability of AI-related risks: implications from the recent legislation in the European Union

Author

Listed:
  • Shu Li

    (Erasmus University Rotterdam)

  • Michael Faure

    (Erasmus University Rotterdam / Maastricht University)

Abstract

In recent years, the EU has been focussing on adapting its regulatory and liability regime to the challenges presented by various AI applications. The new legal framework will generate profound influence, not only on deterrence effects but also on demand for financial coverage. Insurance will continue to play an indispensable role in terms of shifting the different risks posed by AI. However, it remains unclear how the conditions of insurability will be improved or even worsened in the aftermath of new legislation. This article provides a comprehensive analysis to unveil how the new regulation and liability regime in the EU can help insurers to properly assess AI risks and, more importantly, explains the extent to which the new rules can still reduce the foreseeability of risks by presenting additional legal/casual uncertainties and adverse selection and moral hazard problems.

Suggested Citation

  • Shu Li & Michael Faure, 2025. "The insurability of AI-related risks: implications from the recent legislation in the European Union," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 50(3), pages 524-544, July.
    • Handle: RePEc:pal:gpprii:v:50:y:2025:i:3:d:10.1057_s41288-025-00352-5
    DOI: 10.1057/s41288-025-00352-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41288-025-00352-5
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41288-025-00352-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:gpprii:v:50:y:2025:i:3:d:10.1057_s41288-025-00352-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.