Evolving AI Regulation in Insurance: A Behavioural Transmission Framework for Governance, Innovation and Client Outcomes Event

Time:

11:00 - 12:00

Date:

2026-10-22 10:47:00

Venue:

Ketley Room B54/4001

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Event details

Artificial intelligence is increasingly embedded in insurance underwriting, pricing, claims, fraud detection, customer engagement, and risk assessment, while regulators are simultaneously raising expectations for fairness, transparency, explainability, accountability, and human oversight.

This study examines how evolving AI regulation relates to insurer governance, algorithmic-risk concerns, innovation, and client outcomes. It develops a Behavioural Transmission Framework in which regulatory pressure may operate through three organisational pathways: governance strength, algorithmic-risk concern and innovation-enabling perception, while AI autonomy is considered as a potential moderating condition.

The empirical analysis draws on public-source observations from regulatory authorities, insurers, reinsurers, industry organisations and research publications across international insurance markets. The findings show that greater regulatory pressure is strongly associated with stronger governance and heightened algorithmic-risk awareness. However, neither governance strength nor algorithmic-risk concern is significantly associated with more favourable client outcomes. By contrast, regulatory pressure is strongly negatively associated with the perceived environment for innovation, while a more innovation-enabling environment is positively associated with client outcomes.

The findings therefore suggest that AI regulation operates through multiple, potentially competing organisational pathways, rather than a simple progression from stronger regulation to stronger governance and better client outcomes. 

The study has implications for insurers, regulators and policymakers seeking to balance responsible AI governance, innovation and policyholder protection.

About the Speaker

Dr Madhu Acharyya, ACII, FIRM, is a senior academic, Chartered Insurer, and risk‑management specialist with over two decades of experience in teaching, research, executive education, and industry engagement across insurance, finance, banking, and enterprise risk management. He completed his PhD in Risk Management in Insurance at Southampton Business School in 2006 and has held academic roles at Glasgow Caledonian University, Bournemouth University, Bayes Business School, the University of Southampton and the University of Europe for Applied Sciences. His research covers ERM, AI and digital risk, catastrophe and cyber modelling, climate‑risk insurance and financial risk analytics. He has contributed to international projects with the World Bank, WFP and Oxfam and delivered executive programmes for regulators and professional bodies worldwide. He also serves as a Non‑Executive Director and Chair of the Board Risk Committee at Misty Insurance.